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Legislation #: 120535 Introduction Date: 6/7/2012
Type: Ordinance Effective Date: 6/24/2012
Sponsor: COUNCILMEMBER GLOVER AND COUNCILMEMBER MARCASON
Title: Approving the conveyance of certain real property to Truman Medical Center, Inc. and the release and termination of certain lease agreements with respect to such property which were executed in connection with the Kansas City Municipal Assistance Corporation Leasehold Improvement Revenue Bonds, Series 1991A.

Legislation History
DateMinutesDescription
6/8/2012 Filed by the Clerk's office
6/7/2012 Referred to Finance, Governance & Ethics Committee
6/13/2012 Advance and Do Pass, Consent
6/14/2012 Passed

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FileTypeSizeDescription
120535.pdf Authenticated 1974K Authenticated
fact sheet.xls Fact Sheet 145K fact sheet
exhibit A.docx Exhibit 12K Exhibit A
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=120535 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=120535

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ORDINANCE NO. 120535

 

Approving the conveyance of certain real property to Truman Medical Center, Inc. and the release and termination of certain lease agreements with respect to such property which were executed in connection with the Kansas City Municipal Assistance Corporation Leasehold Improvement Revenue Bonds, Series 1991A.

 

WHEREAS, in connection with the issuance of the Kansas City Municipal Assistance Corporation Leasehold Improvement Revenue Bonds, Series 1991A (Truman Medical Center Charitable Foundation Project) in the original principal amount of $9,250,000.00 (the “Series 1991A Bonds”), Truman Medical Center, Inc. (“TMC”) conveyed certain property to the City (the “Hospital Property”) upon which the TMC Hospital Hill Center Building is located; and

WHEREAS, the bonds were issued to provide funds to finance the cost of constructing and equipping an office building and parking facility to be located on the Hospital Property; and

WHEREAS, the City Council in Resolution No. 900823 determined it was beneficial to use the Kansas City Municipal Assistance Corporation (“KCMAC”) for the funding of the project through the issuance of tax-exempt revenue bonds on behalf of the Truman Medical Center Charitable Foundation; and

WHEREAS, the City Council in Resolution No. 900823 expressed its desire and intent to approve and support the construction of the facility for the benefit of the public health, safety and welfare; and

WHEREAS, to facilitate the issuance of the Bonds, the City entered into (1) a Base Lease dated as of May 1, 1991 (the “Base Lease”), pursuant to which the City leased the Hospital Property to the Kansas City Municipal Assistance Corporation (“KCMAC”); (2) a Lease Purchase Agreement dated as of May 1, 1991 (the “Lease”), pursuant to which KCMAC leased the Hospital Property back to the City; and (3) a Sublease Agreement dated as of May 1, 1991 (the “Sublease”), pursuant to which the City subleased the Hospital Property to the Truman Medical Center Charitable Foundation with rental payments payable in amounts sufficient to pay the debt service of the Bonds; and

WHEREAS, KCMAC issued its Leasehold Improvement Revenue Refunding Bonds, Series 1998B, (the “Series 1998B Bonds”) in the amount of $9,000,000.00, to provide funds to refund the outstanding principal amount of the Series 1991A Bonds; and

WHEREAS, the Series 1998B Bonds have been fully paid and retired by the payments from Truman Medical Center Charitable Foundation or TMC and no further amounts are due under the Base Lease, the Lease or the Sublease; and

WHEREAS, the City desires to terminate and release the Base Lease, the Lease and the Sublease and to convey the Hospital Property to TMC; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of Finance is hereby authorized to execute releases terminating the Base Lease, the Lease and the Sublease, and to execute a Special Warranty Deed conveying title of the Hospital Property to TMC.

______________________________________________

 

Approved as to form and legality:

 

 

___________________________

Sarah Baxter

Assistant City Attorney