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Legislation #: 100756 Introduction Date: 9/2/2010
Type: Ordinance Effective Date: 9/19/2010
Sponsor: COUNCILMEMBER SKAGGS
Title: Amending Ordinance No. 050855 by inserting a new section in Article V thereof and authorizing the closing of certain funds and the establishment of certain funds as set forth herein.

Legislation History
DateMinutesDescription
9/2/2010 Filed by the Clerk's office
9/2/2010 Referred to Transportation and Infrastructure Committee
9/9/2010 Advance and Do Pass, Debate
9/9/2010 Passed

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100756.pdf Authenticated 111K AUTHENTICATED
fact sheet.xlsx Advertise Notice 28K fact sheet

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ORDINANCE NO. 100756

 

Amending Ordinance No. 050855 by inserting a new section in Article V thereof and authorizing the closing of certain funds and the establishment of certain funds as set forth herein.

 

WHEREAS, the City passed Ordinance No. 050855 on July 28, 2005, to authorize the issuance of the City’s Special Facility Revenue Bonds (MCI Overhaul Base Project) Series 2005 in the aggregate principal amount not to exceed $32,000,000.00 for the purpose of funding a portion of the City’s obligation to fund $40,000,000.00 of repairs, improvements and other rehabilitation undertakings at the MCI Overhaul Base pursuant to the MCI Overhaul Base Lease, dated as of January 1, 2005 (the “Lease”) between the City and American Airlines, Inc. (the “Tenant”); and

 

WHEREAS, on August 25, 2005, the City issued its $31,040,000.00 aggregate principal amount of Special Facility Revenue Bonds (MCI Overhaul Base Project) Series 2005 (the “Bonds”) for the aforementioned purpose; and

 

WHEREAS, the City and the Tenant have agreed to terminate the City’s obligations to fund repairs, improvements and other rehabilitation undertakings to the MCI Overhaul Base and the City has determined to defease the outstanding Bonds; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Ordinance No. 050855, passed July 28, 2005, is hereby amended by inserting the following as a new section in Article V thereof:

 

“Section 5.9 Application of Funds Following Termination of City’s Overhaul Base Project Obligations. Notwithstanding any other provision of this Ordinance to the contrary, following the termination of the City’s obligations to pay the costs of the Overhaul Base Project in accordance with the terms of the Lease, the Director of Aviation and the Director of Finance are each hereby authorized to execute such documents, certificates or agreements, including, but not limited to any escrow or defeasance agreement, as are necessary to:

 

(a) utilize such funds as are on deposit in the funds and accounts established pursuant to this Ordinance (excluding the MTC Cash and Surplus Account and the MDFB Tax Credit and Surplus Revenue Account) and such other available funds in the City’s Airport Fund to defease the outstanding Bonds in accordance with Article XI hereof; and

 

(b) cause a final rebate calculation to be performed with respect to the Bonds and to pay any final rebate liability to the Internal Revenue Service.”

 

Section 2. Following the defeasance of the Outstanding Bonds in accordance with Article XI of Ordinance No. 050855, the Director of Finance is authorized to close any remaining accounts in the Special Facilities Bond Fund, Fund 8650, and to transfer the funds and monies on deposit in the remaining accounts to the KCI Overhaul Base Fund, Fund 8590, as follows:

 

(a) cause to be transferred any funds remaining in the accounts established pursuant to the Ordinance No. 050855 (excluding the MTC Cash and Surplus Account and the MDFB Tax Credit and Surplus Revenue Account) or in the escrow account established for the defeasance of the Bonds following final payment of the Bonds to the “Bond Proceeds Account” to be established in the KCI Overhaul Base Fund, Fund 8590, with such monies being invested at a yield not to exceed the yield on the Bonds and used for expenditures on capital improvements at the City’s overhaul base facilities. The investment earnings on such “Bond Proceeds Account” will be recorded in an account named “Bond Proceeds Account Interest”; and

 

(b) cause to be transferred any remaining balances in the MTC Cash and Surplus Account and the MDFB Tax Credit and Surplus Revenue Account to the “MTC Cash and Surplus Account” and the “MDFB Tax Credit and Surplus Revenue Account,” respectively, to be established in the KCI Overhaul Base Fund, Fund 8590.

 

_____________________________________________

 

Approved as to form and legality:

 

 

___________________________________

Heather A. Brown

Senior Associate City Attorney