ORDINANCE NO. 951443
Authorizing the City of Kansas City, Missouri, to enter
into a contract for the acquisition, demolition and site preparation for the
Ilus W. Davis Park; to lease the park from the Missouri Development Finance
Board pursuant to a Lease Purchase Agreement; authorizing and approving certain
documents in connection with said contract and lease; and authorizing certain
other actions in connection with the execution and delivery of said contract
and lease.
WHEREAS, the City of Kansas City, Missouri (the
"City"), is authorized pursuant to its Charter (the
"Charter") to contract and cooperate with any private person, firm,
association, corporation or foundation for the planning, development, construction,
acquisition, or operation of any public improvement or facility; and
WHEREAS, the Missouri Development Finance Board (the
"Board"), is a body corporate and politic duly organized and existing
under Sections 100.250 to 100.297 of the Revised Statutes of Missouri, 1986, as
amended (the "Act"), to finance the costs of "projects" (as
defined in the Act); and
WHEREAS, the City Council finds and determines that
it is necessary and desirable for the City to: (i) enter into a contract to provide
for the acquisition, demolition and site preparation of the Ilus W. Davis Park
(the "Improvements") and to provide for the transfer to the Board of
certain real estate located within the geographic limits of the City a portion
of which is currently owned and the remainder of which is expected to be
purchased by the City (the "Project Site", said Improvements and
Project Site being collectively referred to as the "Project"), and
(ii) to lease the Project from the Board pursuant to the hereinafter described
Lease Purchase Agreement; and
WHEREAS, in order to more efficiently provide for
the acquisition, demolition and site preparation necessary for the completion
of the Project, the City deems it desirable to participate in the formation of
the Ilus W. Davis Park Development Company, a Missouri not-for-profit
corporation (the "Corporation"); and
WHEREAS, the City Council further finds and
determines that it is necessary and desirable that the City: (i) enter into a
Park Acquisition, Demolition and Site Preparation Agreement (the "Park
Agreement") among the Board, the City, the Corporation and Mark Twain
Bank, as trustee (the "Trustee") in order to provide for the site
acquisition of that portion of the Project Site which is not owned by the City
and in order to provide for the site preparation of, and demolition of
structures existing on, the Project Site, and (ii) enter into a Lease Purchase
Agreement (the "Lease") with the City under which the Board will
lease the Project to the City and make the proceeds of its limited obligation
revenue bonds (the "Bonds") available to the City in consideration of
rental payments by the City which are to be sufficient, during the Lease Term
(as defined in the Lease), to pay the principal of, redemption premium, if any,
and interest on the Bonds as the same become due; and
WHEREAS, the City Council further finds and
determines that it is necessary and desirable in connection with the lease and
development of the Project that the City enter into certain documents, and that
the City take certain other actions and approve the execution of certain other
documents as herein provided; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That capitalized terms not defined
elsewhere in this ordinance shall have the meanings set forth in the Lease and
the Trust Indenture described in the Lease.
Section 2. That the City is hereby authorized to
enter into the following documents, in substantially the forms presented to the
City Council at this meeting (copies of which documents are on file in the
records of the City), 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 thereof:
(a) Park Acquisition, Demolition and Site
Preparation Agreement (the "Park Agreement") among the
Board, the City, the Corporation and the Trustee, pursuant
to which the City will contract for the
acquisition of the portion of the Project Site
not currently owned by it and for the site
preparation of, and the demolition of the
existing structures on the Project Site upon
the terms and conditions as set forth in
said Park Agreement.
(b) Lease Purchase Agreement (the
"Lease") between the Board and the City, under which the
Board shall lease the Project to the City upon the terms and conditions as
set forth in said Lease.
Section 3. That the City is hereby authorized to
enter into and the Mayor, the City Manager, the City Development Director
and/or the Director of Finance of the City are hereby authorized and directed
to execute and deliver, for and on behalf of and as the act and deed of the
City, the Park Agreement, the Lease and such other documents, certificates and
instruments as may be necessary or desirable to carry out and comply with the
intent of this ordinance. The City Clerk is hereby authorized to attest to such
documents and such other documents, certificates and instruments as may be
necessary or desirable to carry out and comply with the intent of this
ordinance.
Section 4. That the obligations of the City under
the Lease to make Rental Payments shall be limited, special obligations of the
City payable solely from and secured as to the payment by the following sources
in the following order of priority: (a) subject to annual appropriation by the
City Council, four separate annual appropriations of $1,000,000.00, the first
such annual appropriation being in the City's fiscal year beginning on May 1,
1996; (b) a pledge of the Payments in Lieu of Taxes deposited in the PILOTS
Account of the Special Allocation Fund related to the Project; (c) subject to
annual appropriation by the City Council, the Economic Activity Tax Revenues
deposited in the Economic Activity Tax Account of the Special Allocation Fund
related to the Project; (d) subject to annual appropriation by the City
Council, Other Project Revenues; (e) moneys in the Third Reserve Fund, if any;
and (f) subject to annual appropriation by the City Council, Other City Moneys
derived from a transfer by the City to the Special Allocation Fund. The taxing
power of the City is not pledged to the payment of Rental Payments. The City's
obligations under the Lease shall not constitute a general obligation of the
City, nor shall they constitute an indebtedness of the City within the meaning
of any constitutional, statutory or charter provision, limitation or
restriction. The City's obligations under the Lease do not constitute a pledge
or encumbrance of any funds or moneys of the City, other than amounts on
deposit in the Special Allocation Fund and in the funds and accounts held by
the Trustee.
Section 5. That the City hereby approves the Trust
Indenture between the Board and the Trustee, pursuant to which the Bonds shall
be issued and the Board shall pledge and assign the rents, revenues and
receipts received pursuant to the Lease for the benefit of and security of the
registered owners of the Bonds upon the terms and conditions as set forth in
said Indenture, in substantially the form presented to the City Council at this
meeting (copies of which documents are on file with the records of the City).
Section 6. That the officers, agents and employees
of the City, including the City Development Director and/or the Director of
Parks and Recreation, shall be, and they hereby are, authorized and directed to
execute all documents and take such actions as they may deem necessary or
advisable in order to organize the Corporation, carry out and perform the
purposes of the Park Agreement and carry out and perform the purposes of this
ordinance.
Section 7. That the officers, agents and employees
of the City, including the Mayor, the City Manager, the City Development
Director and/or the Director of Finance and the City Clerk, shall be, and they
hereby are, authorized and directed to execute all documents and take such
actions as they may deem necessary or advisable in order to carry out and
perform the purposes of this ordinance, and to carry out, comply with and
perform the duties of the City with respect to the Park Agreement and the
Lease, to make alterations, changes or additions in the foregoing agreements,
statements, instruments and other documents herein approved, authorized and
confirmed which they may approve, and the execution or taking of such action
shall be conclusive evidence of such necessary or advisability. The City hereby
approves the issuance and sale by the Board of its Limited Obligation Leasehold
Revenue Bonds (Kansas City, Missouri, Ilus W. Davis Park Project) Series 1995,
in the aggregate principal amount of not to exceed $8,900,000.00 (the
"Bonds"), for the purpose of providing a portion of the funds
necessary to finance the costs to acquire, improve and construct the Project.
The Bonds shall be in such forms, shall be subject to redemption prior to
maturity, shall have such other terms and provisions, and shall be issued,
executed and delivered in such manner subject to such other provisions,
covenants and agreements, as set forth in the Indenture.
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Approved as to form and
legality:
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City Attorney