ORDINANCE NO. 120575

 

Estimating revenue in Fund 5230, the Equipment Lease Debt Service Fund; reducing appropriations, appropriating from the Unappropriated Fund Balance; estimating a transfer from the Equipment Lease Debt Service Fund to the General Fund; and designating requisitioning authorities.

 

WHEREAS, pursuant to a Trust Indenture dated as of March 1, 2001 (the “Indenture”), between The Industrial Development Authority of the City of Kansas City, Missouri (the “Authority”) and Commerce Bank, formerly Commerce Bank, N.A., as bond trustee (the “Trustee”), the Authority has issued its Taxable Leasehold Revenue Bonds (Century Towers Redevelopment Project), Series 2001 (the “Bonds”) for the purpose of financing the acquisition, construction, improvement furnishing and equipping of certain improvements, as described in the Indenture (the “Project”), for the benefit of Renaissance Northeast, LLC, a Missouri limited liability company (the “Developer”); and

 

WHEREAS, in connection with the Bonds and the Century Towers Redevelopment Project, the Developer and the City of Kansas City, Missouri (“City”) entered into a Development Agreement (“Agreement”) dated March 1, 2001; and

 

WHEREAS, pursuant to an optional redemption of the Bonds by the Authority, at the direction of the City and as permitted by Section 302(a) of the Indenture, the City has deposited the necessary funds with the Trustee and all of the Bonds have been paid in accordance with the terms of the Indenture and the Bonds are no longer outstanding under the Indenture; and

 

WHEREAS, the necessary funds to redeem the Bonds were funded from loan proceeds obtained by the Developer through private financing (“Replacement Financing”) and remaining funds from various Trustee accounts; and

 

WHEREAS, as a result of the Replacement Refinancing and in accordance with certain provisions of the Agreement, the City received funds in repayment for debt service shortfalls (“City Shortfall”) covered by the City during the life of the bonds; and

 

WHEREAS, the City finds it necessary to record the defeasance of the Bonds on the City’s books and recognize non-recurring revenue in an amount equal to the City Shortfall pursuant to the City’s Non-recurring Revenue Policy as set forth in Code of Ordinances Section 2-1950; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the revenue in the following account of Fund 5230, the Equipment Lease Debt Service Fund is hereby estimated in the following amount:

 

13-5230-120000-481000 Miscellaneous Contributions $14,085,522.00

 

Section 2. That the revenue in the following account of Fund 5230, the Equipment Lease Debt Service Fund is hereby reduced in the following amount:

 

13-5230-120000-486390 Reimb Century Towers Lease $1,113,936.00

 

Section 3. That the sum of $13,734,257.00 is hereby appropriated from the Unappropriated Fund Balance of Fund No. 5230, the Equipment Lease Debt Service Fund to the following accounts:

 

13-5230-129718-G Century Towers Debt $13,233,938.00

13-5230-129140-B Refund of PY Revenues 6,946.00

13-5230-129998-X Transfer to General Fund 493,373.00

TOTAL $13,734,257.00

 

Section 4. That the revenue in the following account of Fund 1000, the General Fund is hereby estimated in the following amount:

 

13-1000-120000-505230 Transfer from Eq Lease Debt Service

Fund $ 493,373.00

Section 5. That the Director of Finance is hereby designated as requisitioning authority for Account Nos. 13-5230-129718, 13-5230-129140 and 13-5230-129998-901000.

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

Sarah Baxter

Assistant City Attorney