91-9426 IRB IssueKUM1n-Cox Printing — Salina Kansas
(Published in the Salina Journal, arc�5/f%9Yi
ORDINANCE NO. 91-9426
AN ORDINANCE AUTHORIZING THE CITY OF SALINA,
KANSAS TO ISSUE ITS INDUSTRIAL REVENUE BONDS,
SERIES 1991 (KASA INDUSTRIAL CONTROLS, INC.) IN
THE AGGREGATE PRINCIPAL AMOUNT OF $400,000 FOR
THE PURPOSES OF ACQUIRING, CONSTRUCTING AND
EQUIPPING AN INDUSTRIAL PROJECT; AUTHORIZING
EXECUTION OF A TRUST INDENTURE BY AND BETWEEN THE
CITY AND FIRST NATIONAL BANK AND TRUST, IN THE
CITY OF SALINA, KANSAS, AS TRUSTEE (THE
"TRUSTEE"); AUTHORIZING EXECUTION OF A LEASE
BETWEEN THE CITY AND KASA INDUSTRIAL CONTROLS,
INC. (THE "TENANT"); APPROVING THE FORM OF A
GUARANTY AGREEMENT BY AND AMONG THE TENANT, KARL
R. STUTTERHEIM, CONNIE L. STUTTERHEIM, SAMMY C.
SHEPPARD AND PATRICIA A. SHEPPARD AS GUARANTORS
AND THE TRUSTEE; AND AUTHORIZING THE EXECUTION OF
A BOND PURCHASE AGREEMENT BY AND AMONG THE CITY,
THE TENANT AND J.O. DAVIDSON & ASSOCIATES, INC.,
AS PURCHASER OF THE BONDS.
WHEREAS, the City of Salina, Kansas is authorized by K.S.A.
12-1740 to 12-1749a, inclusive, as amended (the "Act"), to
acquire, construct and improve and equip certain facilities (as
defined in the Act) for commercial, industrial and
manufacturing purposes, and to enter into leases and
lease -purchase agreements with any person, firm or corporation
for said facilities, and to issue revenue bonds for the purpose
of paying the cost of any such facilities; and
WHEREAS, the City of Salina, Kansas has heretofore and does
hereby find and determine that it is desirable in order to
promote, stimulate and develop the general economic welfare and
prosperity of the City and the State of Kansas that the City
issue its Industrial Revenue .Bonds, Series 1991 (KASA
Industrial Controls, Inc.) dated March 1, 1991 in the aggregate
principal amount of $400,000 (the "Series 1991 Bonds"), for the
purpose of paying the costs of acquiring, constructing and
equipping a certain industrial facility (the "Project"), as
more fully described in the Indenture and in the Lease
hereinafter authorized, which Project shall be leased by the
City to KASA Industrial Controls, Inc. (the "Tenant"); and
WHEREAS, the City further finds and determines that it is
necessary and desirable in connection with the issuance of said
Series 1991 Bonds to execute and deliver a Trust Indenture
dated as of March 1, 1991, (the "Indenture"), with First
National Bank and Trust, as Trustee (the "Trustee"), for the
purpose of issuing and securing the Series 1991 Bonds as
provided therein and to enter into a Lease dated as of March 1,
1991 (the "Lease"), with the Tenant pursuant to which the City
shall cause the Project to be constructed and equipped and
leased to the Tenant in consideration of payments of Basic
Rent, Additional Rent and other charges provided for therein.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE
CITY OF SALINA, KANSAS AS FOLLOWS:
Section 1. Definition of Terms. All terms and phrases not
otherwise defined herein shall have the respective meanings set
forth in the Indenture and Lease herein authorized.
Section 2. Authority to Cause the Project to be Purchased
and Constructed. The City is hereby authorized to cause the
Project to be purchased, acquired, constructed and installed
all in the manner and as more particularly described in the
Indenture and the Lease hereinafter authorized.
Section 3. Authorization of and Security for the Bonds.
There is hereby authorized and directed to be issued a series
of industrial revenue bonds to be designated "City of Salina,
Kansas Industrial Revenue Bonds, Series 1991 (KASA Industrial
Controls, Inc.)" in the aggregate principal amount of $400,000
(the "Series 1991 Bonds") and for the purpose of providing
funds to pay the cost of acquiring, purchasing, constructing
and installing the Project. The Series 1991 Bonds shall be in
such principal amount, shall be dated and bear interest, shall
mature and be payable at such times, shall be in such forms,
shall be subject to redemption and payment prior to the
maturity thereof, and shall be issued in the manner prescribed
and subject to the provisions, covenants and agreements set
forth in the Indenture. The Series 1991 Bonds shall be special
limited obligations of the City payable solely from the
revenues derived by the City pursuant to the Lease, or
otherwise in connection with the Project. The Series 1991
Bonds shall not be general obligations of or constitute a
pledge of the faith and credit of the City within the meaning
of a constitutional or statutory provision and shall not be
payable in any manner from tax revenues.
Section 4. Authorization of Indenture. The City is hereby
authorized to enter into the Indenture with the Trustee, under
which the City shall pledge and assign to the Trustee, for the
benefit of the holders of the Bonds, the Trust Estate created
thereby, all upon the terms and conditions set forth in said
Indenture.
Section 5. Lease of the Project. The City shall cause the
Project to be constructed and equipped and the Project to be
leased by the City to the Tenant pursuant to and in accordance
with the provisions of the Lease dated as of March 1, 1991, by
and between the City and the Tenant.
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Section 6. Approval of the Guaranty Agreement. The form
Guaranty Agreement, dated as of March 1, 1991, pursuant to
which the Tenant, Karl R. Stutterheim, Connie L. Stutterheim,
Sammy C. Sheppard and Patricia A. Sheppard (the "Guarantors")
guarantee to the Trustee, for the benefit of the owners of the
Series 1991 Bonds, the -full and prompt payment of the principal
of, redemption premium, if any, and interest on the Series 1991
Bonds, is hereby approved.
Section 7. Authorization of Bond Purchase Agreement. The
Series 1991 Bonds shall be sold and delivered to J.O. Davidson
& Associates, Inc., upon the terms and subject to the
provisions of the Bond Purchase Agreement herein authorized to
be dated as of March 4, 1991, by and among the City, Tenant and
J.O. Davidson & Associates, Inc., as Purchaser.
Section 8. -Execution of Bonds and Agreements. The Mayor
or Vice Mayor of the City of Salina, Kansas are hereby
authorized and directed to execute the Series 1991 Bonds and
deliver same to the Trustee for authentication for and on
behalf of and as the act and deed of the City in the manner
provided in the Indenture. The Mayor or Vice Mayor are hereby
further authorized and directed to execute and deliver the
Indenture, the Lease, and the Bond Purchase Agreement for and
on behalf of and as the act and deed of the City in
substantially the form presented today with such minor
corrections or amendments thereto as the Mayor or Acting Mayor
shall approve, which approval shall be evidenced by his or her
execution thereof, and such other documents, certificates and
instruments as may be necessary or desirable- to carry out and
comply with the purposes and intent of this Ordinance. The
City Clerk or the Deputy City Clerk of the City are hereby
authorized and directed to attest the execution of the Series
1991 Bonds, the Indenture and the Lease, and the Bond Purchase
Agreement and such other documents, certificates and
instruments as may be necessary or desirable to carry out and
comply with the intent of this Ordinance.
Section 9. Pledge of the Project. The City hereby pledges
the Project to the payment of the Series 1991 Bonds in
accordance with K.S.A. 12-1744. The lien created by such
pledge shall be discharged when all of the Series 1991 Bonds
shall be deemed to have been paid within the meaning of the
Indenture.
Section 10. Further Authority. The City shall, and the
officers, agents and employees of the City are hereby
authorized and directed to, take such action, expend such funds
and execute such other documents, certificates and instruments
as may be necessary or desirable to carry out and comply with
the provisions of this Ordinance and to carry out., comply with
and perform the duties of the City with respect to the Series
1991 Bonds, the Indenture and the Lease all as necessary to
carry out and give effect to the transaction contemplated
hereby and thereby.
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Kinn -G . Printing — Salina, Kansas
Section 11. Effective Date. This Ordinance shall take
effect and be in full force from and after its adoption by the
City Commission and publication once in the official newspaper
of the City.
PASSED by the Governing Body of the City of Salina, Kansas
this 4th day of March, 1991.
CITY OF N KANSAS
By
Robert E. Franld, Mayor
Attest:
lliacqu Cline B. Shiever, City Clerk
(Seal)
APPROVED AS TO FORM ONLY:
City Attorney
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