93-4544 IRB IntentRESOLUTION NUMBER 93-4544
A RESOLUTION EXPRESSING THE INTENTION OF THE CITY OF
SALINA, KANSAS, TO ISSUE INDUSTRIAL REVENUE BONDS IN AN AMOUNT
NOT TO EXCEED $60,000,000 FOR THE PURPOSE OF PROVIDING FUNDS FOR
THE CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF A NEW FACILITY
AND FOR THE PURCHASE OF MACHINERY AND EQUIPMENT TO BE LOCATED
THEREON FOR BEECH AIRCRAFT CORPORATION.
WHEREAS, the City of Salina, Kansas, hereinafter sometimes referred
to as the "City", desires to promote, stimulate and develop the general
economic welfare and prosperity of the City and its environs, and thereby to
further promote, stimulate and develop the general economic welfare and
prosperity of the State of Kansas; and
WHEREAS, pursuant to the provisions of K.S.A. 12-1740 to 12-1740a,
inclusive, and all acts amendatory thereof or supplemental thereto, said City
is authorized to issue industrial revenue bonds of the City, and it is hereby
found and determined to be advisable and in the interest and for the welfare of
the City and its inhabitants that industrial revenue bonds of the City in the
principal amount of not to exceed Sixty Million Dollars ($60,000,000) be
authorized and issued for the purpose of providing funds to pay the cost of
acquisition, construction, improvement and equipping of certain facilities and
purchase machinery and equipment to be located thereon (the "Project") located
in the environs of the City of Salina, Kansas to be leased to Beech Aircraft
Corporation; and
WHEREAS, due to the unusual nature and magnitude of the Project
and the extraordinary benefits of the Project to the community, the Board of
City Commissioners believes it is in the best interest of the City to deviate
from its ad valorem tax exemption policy set forth in Resolution Number 91-4265
("the Tax Exemption Policy"), as specifically authorized by Section 2 of the
Tax Exemption Policy, by allowing the facilities purchased and constructed with
proceeds of the bonds authorized herein to be exempt from ad valorem
taxation for a period of ten (10) calendar years in accordance with the laws of
the State of Kansas; SO NOW, THEREFORE
Kansas:
BE IT RESOLVED by the Governing Body of the City of Salina,
Section 1. That the City of Salina, Kansas and/or Sedgwick
County, Kansas acting as the City's agent pursuant to the limited authority of
a certain Interlocal Cooperation. Agreement by and between the City of Salina,
Kansas, the City of Wichita, Kansas, the City of Andover, Kansas, and
Sedgwick County, Kansas, dated December 20, 1989 (the "Interlocal Cooperation
Agreement") are hereby authorized to construct the Project located within the
environs of the City of Salina, Kansas, in an amount which will not exceed the
cost of $60,000,000 to said City subject in all respects to negotiations of
satisfactory lease arrangements for said facility with Beech Aircraft
Corporation.
Section 2. That for the purpose of providing funds to pay the
cost of such Project there shall be issued industrial revenue bonds of said
City, or Sedgwick County in the case of bonds issued pursuant to the
Interlocal Cooperation Agreement, in an aggregate principal amount of not to
exceed $60,000,000 in accordance with a Bond Ordinance or Resolution, Trust
Indenture and Lease Agreement, the terms of which shall be mutually
satisfactory to the City and to Beech Aircraft Corporation; and also subject to
compliance with the provisions of K.S.A. 12-1744a, as amended, or evidence of
exemption therefrom. It is contemplated that in order to permit and in order
to expedite the Project and realization of the benefits to be derived thereby,
Beech Aircraft Corporation may, in reliance upon this Resolution, incur
temporary indebtedness and expend its own funds in connection with the
Project prior to the ultimate issuance of said industrial revenue bonds. Said
bonds herein authorized and all interest thereon shall, in any event, be paid
solely from the money and revenue received from said facility and not from any
other fund or source, and nothing contained herein shall obligate the City in
any way except as herein set out.
Section 3. The Board of City Commissioners finds that due to the
unusual nature and magnitude of the Project and the extraordinary benefits of
the Project to the community, the facilities purchased and constructed with
proceeds of the bonds authorized herein shall be exempt from ad valorem
taxation for a period of ten (10) calendar years in accordance with the laws of
the State of Kansas.
Section 4. This Resolution, effective upon approval by the Board
of
City
Commissioners and execution
by the
Mayor,
shall be
valid for
a period
of
ten
(10) years commencing on the
date an
award
is made
to Beech
Aircraft
Corporation of the Joint Primary Aircraft Training Systems contract. Upon said
contract being awarded to Beech Aircraft Corporation, this Resolution shall
supersede Resolution Number 88-3970 of the City of Salina, Kansas; provided
that, nothing herein shall be deemed to limit the operation of Resolution
Number 88-3970 prior to such date. It is specifically contemplated that Beech
Aircraft Corporation shall continue to incur temporary indebtedness and expend
its own funds pursuant to, and in reliance on, the authority of Resolution
Number 88-3970 prior to an award of the Joint Primary Aircraft Training
Systems contract to Beech Aircraft Corporation.
Section 5. The Mayor and City Clerk are hereby authorized and
directed to take all such other actions not inconsistent herewith as may be
appropriate or desirable
to accomplish
the
purpose of this
Resolution,
including the execution on
behalf of the
City
of an appropriate
notice of the
proposed issuance of such industrial revenue bonds with the Kansas State
Board of Tax Appeals pursuant to K.S.A. 12-1744a and providing notice of a
public hearing on the issuance of the bonds in accordance with the Internal
Revenue Code of 1986, as amended.
Adopted by the Board of Commissioners and signed by the Mayor this
11th day of January, 1993.
Carol E. Beggs, Mayor
(SEAL)
ATTEST:
Jacqudline Shiever, CMC
City Clerk
App r ve as to form
- g A eng 'on
Ci y At ney