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Legislation #: 050544 Introduction Date: 5/5/2005
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the issuance of Improvement and Refunding Revenue Bonds (Municipal Auditorium Garage Improvements and Muehlebach Hotel Refunding Projects) Series 2005E, by the Land Clearance for Redevelopment Authority of Kansas City, Missouri (the “Authority”), in an aggregate principal amount not to exceed $36,000,000.00, as fixed interest rate bonds, to provide funds to currently refund the Authority’s Series 1995A Bonds and to finance certain improvements to the Municipal Auditorium Plaza Garage; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

Legislation History
DateMinutesDescription
5/4/2005 Filed by the Clerk's office
5/5/2005 Referred to Finance Committee
5/18/2005 Hold On Agenda (5/25/2005)
5/25/2005 Hold On Agenda (6/1/2005)
6/8/2005 Hold On Agenda (6/22/2005)
6/22/2005 Hold On Agenda (7/6/2005)
7/6/2005 Do Pass as a Committee Substitute
7/7/2005 Assigned Third Read Calendar as Substituted
7/14/2005 Passed

View Attachments
FileTypeSizeDescription
050544.pdf Authenticated 230K Authenticated
050544 Fact Sheet(3).xls Fact Sheet 45K Fact Sheet
050544 fiscal notes.xls Fiscal Note 39K Fiscal Note

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 050544

 

Approving the issuance of Improvement and Refunding Revenue Bonds (Municipal Auditorium Garage Improvements and Muehlebach Hotel Refunding Projects) Series 2005E, by the Land Clearance for Redevelopment Authority of Kansas City, Missouri (the Authority), in an aggregate principal amount not to exceed $36,000,000.00, as fixed interest rate bonds, to provide funds to currently refund the Authoritys Series 1995A Bonds and to finance certain improvements to the Municipal Auditorium Plaza Garage; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

 

WHEREAS, the City has requested the Authority to issue its Improvement and Refunding Revenue Bonds (Municipal Auditorium Garage Improvements and Muehlebach Hotel Refunding Projects), Series 2005E (the Bonds) as fixed interest rate bonds, for the purpose of providing funds to (a) pay the costs of certain improvements to the Municipal Auditorium Plaza Garage (the Project), as defined and more fully described in the Indenture, (b) currently refund the Authoritys Lease Revenue Bonds (Municipal Auditorium and Muehlebach Hotel Redevelopment Projects) Series 1995A in the original principal amount of $34,130,000 (the Series 1995A Bonds) the proceeds of which were used to finance the Muehlebach Hotel and Municipal Auditorium projects, of which $30,385,000 principal amount remain outstanding (c) fund a debt service reserve fund for the Bonds, and (d) pay the bond insurance premium and certain other costs of issuance of the Bonds;

 

WHEREAS, concurrently with the issuance and delivery of the Bonds, XL Capital Assurance (the Bond Insurer) will issue and deliver to UMB Bank, N.A., as the Bond Trustee (the Trustee) its municipal bond insurance policy (the Bond Insurance Policy) insuring the payment when due of the principal of and interest on the Bonds; and

 

WHEREAS, the City finds and determines that in order to finance the Project and to currently refund the Authoritys Series 1995A Bonds it is necessary and desirable to approve the issuance by the Authority of the Bonds; and

 

WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the Bonds that the City execute and deliver certain documents and that the City take certain other actions as herein provided; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Approval. The City hereby approves the issuance of the Bonds by the Authority in order to finance the Project and currently refund the Authoritys Series 1995A Bonds. The City hereby finds and determines that the Bonds are being issued by the Authority for a valid purpose under and in accordance with the provisions of the Land Clearance for Redevelopment Authority Law, Section 99.300 to 99.715, inclusive of the Revised Statutes of Missouri, as amended.


Section 2. Authorization and Approval of Documents. The following documents are hereby approved in substantially the form presented to the City at this meeting (copies of which documents shall be filed in the records of the City), and the City is hereby authorized to execute and deliver each of such documents (the City Documents) with such changes therein as shall be approved by the officers of the City executing such documents, such officers signatures thereon being conclusive evidence of their approval and the Citys approval thereof:

 

(a) Second Supplemental Bond Trust Indenture dated as of the date set forth therein (the Second Supplemental Indenture among the Authority, the Trustee, the City, Financial Security Assurance Inc. (FSA) and The Bank of New York Trust Company, N.A. (BNY);

 

(b) Second Supplemental Financing Lease Agreement dated as of the date set forth therein (the Second Supplemental Financing Lease) among the Authority, the City, and FSA, under which the City will make rental payments as lessee of the Municipal Auditorium, subject to annual appropriation by the City Council, to the Authority, upon the terms and conditions as set forth therein, which rental payments will be assigned by the Authority to the Trustee under the Second Supplemental Indenture to secure payment of the Bonds;

 

(c) Tax Compliance Agreement dated as of the date set forth therein (the Tax Agreement), by and among the Authority, the City and the Trustee pursuant to which each party thereto shall covenant to comply with federal tax law as it relates to the Bonds to preserve the tax exempt status of the Bonds;

 

(d) Financial Guaranty Agreement dated as of the date set forth therein (the Financial Guaranty) between the City and the Bond Insurer, under which the City agrees to reimburse the Bond Insurer for all payments made by the Bond Insurer on the debt service reserve policy, subject to annual appropriation by the City Council; and

 

(e) Intercreditor Agreement dated as of the date set forth therein, among FSA, the Bond Insurer, BNY, the Trustee, the Authority and the City, stating the relative priorities of the liens granted in favor of BNY and the Trustee for the benefit of the holders of the Authoritys $15,110,000 Taxable Lease Revenue Bonds (Municipal Auditorium and 13th and Wyandotte Hotel Redevelopment Projects) Series 1996 and the Bonds, FSA and the Bond Insurer, respectively, as to Municipal Auditorium, as more fully described therein.

 

Section 3. Annual Appropriation. The Citys Director of Finance or other officer of the City at any time charged with the responsibility of formulating budget proposal shall include in the budget proposals submitted to the City Council, in each Fiscal Year in which the Bonds shall be in effect, an appropriation for all payments required under the Bonds for the ensuing Fiscal Year; it being the intention of the City that the decisions to appropriate or not to appropriate to pay the Bonds shall be made solely by the City Council and not by any other official of the City. The City intends to appropriate funds to make rental payments and any additional payments in accordance with the Second Supplemental Financing Lease from all legally available revenue sources. The City reasonably believes that legally available funds in an amount sufficient to make all rental payments and additional payments during each Fiscal Year can be obtained. The City further intends to do all things lawfully within its power to obtain and maintain funds from all legally available revenue sources from which the rental payments and additional payments may be made, including making provision for such payments to the extent necessary in each proposed annual budget submitted for approval in accordance with applicable procedures of the City. The Citys Director of Finance is directed to do all things lawfully within his/her power to obtain and maintain funds from all legally available revenue sources from which the rental payments and additional payments may be paid, including making provision for such payments to the extent necessary in each proposed annual budget submitted for approval or by supplemental appropriation in accordance with applicable procedures of the City. Notwithstanding the foregoing, the decision to budget and appropriate funds is to be made in accordance with the Citys normal procedures for such decisions.

 

Section 4. Execution of City Documents. The Mayor, the City Manager, Director of City Development or Director of Finance is hereby authorized and directed to execute and deliver the City Documents for and on behalf of and as the act and deed of the City. The City Clerk or Deputy City Clerk is hereby authorized and directed to attest to the City Documents and to such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. The Mayor, the City Manager, the Director of City Development or Director of Finance is hereby authorized to deem final the information concerning the City contained in any Preliminary Official Statement to be prepared with respect to the Bonds for purposes of SEC Rule 15c2-12, as amended.

 

Section 5. Further Authority. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments, including, without limitation, any required agreements or documentation in connection with the Bond Insurance Policy, or closing certificates, as may be necessary or desirable to carry out and comply with the intent of this Ordinance, and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents.

 

Section 6. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri.

 

Section 7. Effective Date. This Ordinance shall take effect and be in full force and effect ten days after its passage.

 

_______________________________________________

 

Approved as to form and legality:

 

____________________________

Heather A. Brown

Assistant City Attorney