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Legislation #: 080126 Introduction Date: 1/31/2008
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the issuance by the City of Kansas City Missouri of its special obligation improvement and refunding bonds in more than one series, in the aggregate principal amount not to exceed $49,500,000.00; and approving and authorizing certain documents and actions relating to the issuance of the Bonds.

Legislation History
DateMinutesDescription
1/30/2008 Filed by the Clerk's office
1/31/2008 Referred to Finance and Audit Committee
2/6/2008 Advance and Do Pass, Debate
2/7/2008 Passed

View Attachments
FileTypeSizeDescription
080126.pdf Authenticated 329K Authenticated
Wachovia Securities Kansas City Missouri Projects and Century Towers Project Bond Issuance - Bond Purchase Agreement_v3.DOC Agreement 122K Bond Purchase Agreement
Tax Compliance Agreement - KCMO Special Obligation Bonds 2008A.doc Agreement 237K Tax Compliance Agreement
cda.doc Agreement 86K Continuing Disclosure Agreement
Cooperative Agreement - KCMO Special Obligation Bonds, Series 2008A v011808.doc Agreement 95K Cooperative Agreement
Indenture - KCMO Taxable Special Obligation Bonds (Century Towers), 2008B v 011808.doc Agreement 404K Indenture for Series 2008B Bonds
Indenture - KCMO Special Obligation Bonds, 2008A v 011808.doc Advertise Notice 383K Indenture for Series 2008A Bonds
Sp. Oblig Series 2008A and 2008B bond ordinance fact sheet v2.xls Fact Sheet 49K Fact Sheet
fiscal notes-Sp. Ob bond ordinance v1.xls Fiscal Note 59K Fiscal Note

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ORDINANCE NO. 080126

 

Approving the issuance by the City of Kansas City Missouri of its special obligation improvement and refunding bonds in more than one series, in the aggregate principal amount not to exceed $49,500,000.00; and approving and authorizing certain documents and actions relating to the issuance of the Bonds.

 

WHEREAS, the City is authorized under its charter to issue its notes, bonds or other obligations in evidence thereof; and

WHEREAS, the City wishes to issue its special obligation improvement bonds to provide funds to pay the costs of certain public improvements described in the River Market Tax Increment Financing Plan (the Second Street Project); and

WHEREAS, the City wishes to issue its special obligation improvement bonds to provide funds to pay certain costs relating to the Columbus Park Project, including certain costs associated with land acquisition and the relocation of the Missouri Department of Transportation maintenance facility (the Columbus Park Project); and

WHEREAS, the City wishes to issue its special obligation improvement bonds to provide funds to pay certain renovation and improvement costs relating to the Swope Ridge Geriatric Center (the Swope Ridge Geriatric Center Project); and

WHEREAS, the City wishes to issue its special obligation improvement bonds to provide funds to pay certain site development and construction costs relating to the new City tow lot (the Tow Lot Project); and

WHEREAS, the City wishes to issue its special obligation refunding bonds to provide funds to pay the costs of refunding on a current basis the Leasehold Improvement Revenue Bonds (City of Kansas City, Missouri, Lessee) Series 1998A (the Series 1998 Hodge Park Bonds) issued by the Kansas City Municipal Assistance Corporation to finance a municipal golf course (the Hodge Park Refunding Project); and

WHEREAS, the City proposes to issue, pursuant to an indenture of trust by and between the City and First Bank of Missouri, as trustee (the "Series 2008A Bonds Trustee"), its Series 2008A Bonds in the aggregate principal amount not to exceed $30,500,000.00, to provide funds to finance and refinance the Second Street Project, the Columbus Park Project, the Swope Ridge Geriatric Center Project, the Tow Lot Project and any general City projects which the City may hereafter designate and to refund the Series 1998 Hodge Park Bonds, to fund a debt service reserve fund or purchase a debt service surety bond for the Series 2008A Bonds, to pay the bond insurance premium and surety bond premium for the Series 2008A Bonds, and to fund certain costs of issuance of the Series 2008A Bonds; and

WHEREAS, the City wishes to issue its taxable special obligation refunding bonds to provide funds to pay the costs of refunding on a current basis the Taxable Leasehold Revenue Bonds (Century Towers Redevelopment Project), Series 2001 (the Series 2001 Century Towers Bonds) issued by The Industrial Development Authority of the City of Kansas City, Missouri to finance the costs of improvement to the property known as Century Towers located at 6th and Garfield, Kansas City, Missouri (the Century Towers Refunding Project); and

WHEREAS, the City proposes to issue, pursuant to an indenture of trust by and between the City and Commerce Bank, N.A., as trustee (the "Series 2008B Bonds Trustee"), its Series 2008B Bonds in the aggregate principal amount not to exceed $19,000,000.00, to provide funds to refund the Series 2001 Century Towers Bonds, to fund a debt service reserve fund or purchase a debt service surety bond for the Series 2008B Bonds, to pay the bond insurance premium and surety bond premium for the Series 2008B Bonds, and to fund certain costs of issuance of the Series 2008B Bonds; and

WHEREAS, in connection with the issuance of the Series 2008A Bonds to finance the Second Street Project, the City and the Tax Increment Financing Commission of Kansas City, Missouri (the Commission) will enter into a Cooperative Agreement dated as of the date set forth therein (the Cooperative Agreement) pursuant to which the City and the Commission will provide for the use of certain TIF Revenues (as defined therein) for the payment of the costs of the Second Street Project and the allocable portion of debt service on the Series 2008A Bonds; and

WHEREAS, the Public Improvement Advisory Committee (PIAC) has recommended $2,450,000.00 in fiscal year 2010 in support of the Second Street Project; and

WHEREAS, in order to enhance the security for the Series 2008A Bonds and the Series 2008B Bonds (the Bonds) and achieve a lower cost of borrowing, it may be desirable for the City to arrange for a municipal bond insurance policy, letter of credit or other credit enhancement facility, insuring or guaranteeing the payment of the principal of and interest on the Bonds and/or a surety bond or debt service reserve fund policy for any debt service reserve fund, to be issued by a bond insurance company, commercial bank or other financial institution acceptable to the City; and

WHEREAS, the City desires to indicate its expectation and intent to reimburse all or a portion of the expenditures with the proceeds of the Bonds; and

WHEREAS, the City has found and determined that financing and refinancing of the Projects described above will benefit the citizens of the City; and

WHEREAS, in order to accomplish the foregoing, it is necessary and desirable that the City approve the transaction described in this ordinance and the execution and delivery of the financing documents and certain other matters in connection with the transaction, as herein provided; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. Authorization of Bonds. The City hereby authorizes the issuance of its Bonds, in more than one series, in the aggregate principal amount not to exceed $49,500,000.00, for the purpose of providing funds to finance and refinance Second Street Project, the Columbus Park Project, the Swope Ridge Geriatric Center Project, the Tow Lot Project and any general City improvements and to carry out the Hodge Park Refunding Project and the Century Tower Refunding Project, to fund a debt service reserve fund or purchase a debt service surety bond for each series of Bonds, to pay the bond insurance premium and surety premium for each series of Bonds, and to fund certain costs of issuance of the Bonds. Each series of Bonds shall be dated the date set forth therein, the Series 2008A Bonds shall bear interest at rates initially not to exceed a net interest cost of 5.25%, the Series 2008B Bonds shall bear interest at rates initially not to exceed a net interest cost of 6.50%, and the applicable series of Bonds shall have such other terms and provisions as shall be provided in the applicable indenture of trust and bond purchase agreements approved by the Acting Director of Finance.

Section 2. Limited Obligations. Each series of the Bonds and the interest thereon shall be special, limited obligations of the City payable (except to the extent paid out of Bond proceeds or the income from the temporary investment thereof and under certain circumstances from insurance proceeds and condemnation awards) solely out of Appropriated Moneys (as defined in the applicable indenture) and moneys in the Funds and Accounts held by the Trustee under the applicable indenture, and shall be secured by a transfer, pledge and assignment of and a grant of a security interest in the applicable Trust Estate to the Trustee and in favor of the owners of the applicable Bonds. Each series of Bonds and interest thereon shall not be deemed to constitute a debt or liability of the City within the meaning of any constitutional, statutory or charter limitation or provision, and shall not constitute a pledge of the full faith and credit of the City, but shall be payable solely from the funds provided for in the applicable indenture. The issuance of the Bonds shall not, directly, indirectly or contingently, obligate the City to levy any form of taxation therefor or to make any appropriation for their payment.

Section 3. Authorization and Approval of Financing Documents. The proposed documents relating to the financing (the Financing Documents) are hereby approved in substantially the forms submitted to the City Council, and the Acting Director of Finance is authorized to execute and deliver the Financing Documents with such changes therein and additions thereto as the Acting Director of Finance deems necessary or appropriate.

(a) Trust Indenture between the City and the Series 2008A Trustee relating to the Series 2008A Bonds.

(b) Trust Indenture between the City and the Series 2008B Trustee relating to the Series 2008B Bonds.

(c) Cooperative Agreement between the City and the Commission relating to the Second Street Project.

(d) Tax Compliance Agreement between the City and the Trustee, which sets forth certain representations, facts, expectations, terms and conditions relating to the use and investment of the proceeds of the Series 2008A Bonds, to establish and maintain the exclusion of interest on the Series 2008A Bonds from gross income for federal income tax purposes, and to provide guidance for complying with the arbitrage rebate provisions of 148(f) of the Internal Revenue Code.

(e) Continuing Disclosure Agreements, under which the City agrees to provide continuing disclosure of certain financial information, operating data and material events, for the benefit of the owners of the Bonds and to assist the Underwriters in complying with Rule 15c2-12 of the Securities and Exchange Commission.

(f) Bond Purchase Agreement between the City and the Underwriters of the Bonds, under which the City agrees to sell and the Underwriters agree to purchase the Bonds, upon such terms and conditions thereof as set in the Bond Purchase Agreement.

Section 4. Credit Enhancement. The City hereby authorizes the Acting Director of Finance to obtain a bond insurance policy, letter of credit or other credit enhancement (Credit Enhancement) for some or all of the Bonds and the purchase or a surety bond or debt service reserve fund policy for any debt service reserve fund, if necessary or desired, from a Credit Provider with such credit rating that, in the opinion of the Underwriters, the Financial Advisors and the Acting Director of Finance, there will be achieved an economic benefit for the City if the Bonds are secured by such Credit Enhancement. The purchase of such Credit Enhancement and the entering into of such agreements with respect thereto as may be necessary or appropriate are hereby approved. Such credit enhancement may be such type, in such amount and provided by such entity or entities as the Acting Director of Finance shall determine to be in the best interest of the City. The officials of the City are authorized and directed to execute all documents, agreements, instruments and certificates in connection with such credit enhancement.

Section 5. Refunding and Redemption of Series 1998 Hodge Park Bonds and Series 2001 Century Tower Bonds. The Corporations refunding and redemption of the Series 1998 Hodge Park Bonds and the Series 2001 Century Tower Bonds is hereby approved and the Acting Director of Finance is hereby authorized and directed to execute, enter into and deliver on behalf of the City any bond purchase agreement, escrow deposit agreement and such other documents, certificates and instruments with respect thereto as the Acting Director of Finance determines to be in the best interest of the City.

Section 6. Intent to Reimburse Expenditures. The City reasonably expects to reimburse all or a portion of the expenditures relating to the Projects (other than the Refunding Projects) with proceeds of the Series 2008A Bonds.

Section 7. Official Statements. The City hereby delegates authority to the Acting Director of Finance to prepare, approve and deem final any Preliminary Official Statements and any final Official Statements, with the signature of the Acting Director of Finance thereon being conclusive evidence of the Director's approval and the City's approval thereof and to approve the final terms of the Bonds, including any credit enhancement of the Bonds. The City hereby consents to the use and public distribution of any Preliminary Official Statement and any final Official Statement in connection with the offering for sale of the Bonds.

Section 8. Approval of Section of Professionals. The City approves the selection of First Southwest Company and Valdes & Moreno to act as Co-Financial Advisors in connection with the issuance of the Bonds. The City approves the selection of Kutak Rock LLP and the Hardwick Law Firm LLC to act as Co-Bond Counsel in connection with the issuance of the Bonds. The City approves the selection of Wachovia Securities, Oppenheimer & Company, Inc. and Harvestons Securities, Inc. to act as Underwriters in connection with the issuance of the Bonds.

Section 9. Second Street Project Financial Approvals. The City approves the use of $2,450,000.00 of PIAC funds by January 1, 2010 to pay debt service on that portion of the Series 2008A Bonds attributable to the Second Street Project. The City further approves the use of TIF Revenues (as defined in the Cooperative Agreement) from Redevelopment Project Areas 1, 2, 3, 4 and 8 associated with the River Market Tax Increment Financing Plan to pay debt service on that portion of the Series 2008A Bonds attributable to the Second Street Project.

Section 10. Further Authority. The officials of the City are further authorized and directed to execute such documents, instruments and certificates and to take such further actions on behalf of the City as shall be necessary or desirable to effect the terms and provisions of this Ordinance.

___________________________________________

 

Approved as to form and legality:

 

 

 

____________________________________

Heather A. Brown

Assistant City Attorney