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Legislation #: 160852 Introduction Date: 11/3/2016
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBER TAYLOR AND COUNCILMEMBER MCMANUS
Title: Authorizing the amendment of bond documents relating to the taxable industrial bonds previously issued by the City to finance an office industry consisting of a national headquarters project located at the corner of Ward Parkway and Wornall Road as described in the Industrial Development Plan for Burns _ McDonnell Engineering Company, Inc. in order to separate such bonds into two subseries, one for each phase of the project; and authorizing and approving certain other documents.

Legislation History
DateMinutesDescription
11/3/2016 Filed by the Clerk's office
11/3/2016 Referred to Planning, Zoning & Economic Development Committee
11/9/2016 Advance and Do Pass, Debate
11/10/2016 Passed

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160852.pdf Authenticated 203K Authenticated Ordinance

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ORDINANCE NO. 160852

 

Authorizing the amendment of bond documents relating to the taxable industrial bonds previously issued by the City to finance an office industry consisting of a national headquarters project located at the corner of Ward Parkway and Wornall Road as described in the Industrial Development Plan for Burns & McDonnell Engineering Company, Inc. in order to separate such bonds into two subseries, one for each phase of the project; and authorizing and approving certain other documents.

 

WHEREAS, the City of Kansas City, Missouri, a constitutional charter city and municipal corporation of the State of Missouri (the “City”) is authorized pursuant to the provisions of Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended, and the City of Kansas City Charter (collectively, the “Act”), to issue its revenue bonds for carrying out a project or projects under the Act, such revenue bonds to be paid solely from revenue received from such project, and to enter into a lease of certain real property associated with the Project to be financed with the proceeds of such revenue bonds with any person, firm or corporation; and

 

WHEREAS, pursuant to Ordinance No. 140368 (the “Bond Ordinance”), the City previously authorized and approved, among other things, an Industrial Development Plan (the “Plan”) for the purpose of carrying out a development project (the “Project”) consisting of real property improvements in two phases to carry out the phased expansion of the national headquarters of Burns & McDonnell Engineering Company, Inc. (the “Company”), the issuance of the City’s Taxable Industrial Revenue Bonds (Burns & McDonnell Project) Series 2014B (the “Bonds”) in a maximum aggregate principal amount not to exceed $121,500,000.00 for the purpose of furthering the Project to be located at the corner of Ward Parkway and Wornall Road, Kansas City, Missouri (the “Project Site”), the lease of the Project to 9400 Wornall, LLC, a Missouri limited liability company (the “Lessee”) with an option to purchase and the sublease of the Project by the Lessee to the Company, and the waiver of certain components of the City’s Chapter 100 bond issuance policy in order to carry out the Project and incent the Company to keep its national headquarters in Kansas City, Missouri; and

 

WHEREAS, as authorized by the Bond Ordinance, the City executed and delivered a Trust Indenture dated as of December 1, 2014 (the “Original Indenture”) with UMB Bank, N.A. (the “Trustee”) pursuant to which the City issued the Bonds in the maximum aggregate principal amount not to exceed $121,500,000.00, and executed and delivered a Lease Agreement dated as of December 1, 2014 (the “Original Lease”) with the Lessee pursuant to which the City leased the Project to the Lessee with an option to purchase; and

 

WHEREAS, the Lessee has advised the City that Phase One of the Project has been completed, financed with $65,589,163.00 principal amount of the Bonds (the “Phase One Principal Amount”), on that portion of the Project Site representing Phase One of the Project (the “Phase One Project Site”), and that the remaining not to exceed $55,910,837.00 principal amount of the Bonds (the “Phase Two Principal Amount”) may be applied in the future to finance Phase Two of the Project on that portion of the Project Site representing Phase Two of the Project (the “Phase Two Project Site”); and

 

WHEREAS, the Lessee has requested the City to approve the amendment and bifurcation of the Bonds, the Original Indenture and the Original Lease between Phase One and Phase Two, the Phase One Project Site and Phase Two Project Site and the Phase One Principal Amount and Phase Two Principal Amount, as applicable, and amendments to the Original Indenture and Original Lease to effect such amendment and bifurcation; and

 

WHEREAS, the City further finds and determines that it is necessary and desirable in connection with such amendment and bifurcation 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. Authorization of Bifurcation of Bonds. The City hereby approves the bifurcation of the Bonds into two subseries, the Taxable Industrial Revenue Bonds (Burns & McDonnell Project – Phase One) Series 2014B-1 (the “Phase One Bonds”) in the principal amount of not to exceed $65,589,163.00 and the Taxable Industrial Revenue Bonds (Burns & McDonnell Project – Phase Two) Series 2014B-2 (the “Phase Two Bonds”) in the principal amount of not to exceed $55,910,837.00 (or such other bifurcated series designations and principal amounts not to exceed $121,500,000.00 in the aggregate as may be approved by the Director of Finance).

 

Section 2. Authorization of Amendment and Bifurcation of Original Indenture and Original Lease Agreement. The City hereby approves the amendment and bifurcation of each of the Original Indenture and the Original Lease Agreement into two of such instrument, which for the Phase One Bonds will be termed the First Supplemental Bifurcated, Amended and Restated Trust Indenture (Phase One) (the “Phase One Indenture”) and the Bifurcated, Amended and Restated Lease Agreement (Phase One) (the “Phase One Lease”), and which for the Phase Two Bonds will be termed the First Supplemental Bifurcated, Amended and Restated Trust Indenture (Phase Two) (the “Phase Two Indenture”) and the Bifurcated, Amended and Restated Lease Agreement (Phase Two) (the “Phase Two Lease”), each to be dated as of the first day of the month of execution thereof (or such other document names and dates at the Director of Finance may approve), to recognize the amendment and bifurcation of the Bonds and Bond documents between the two phases of the Project.

 

Section 3. Execution of Documents. The Mayor is hereby authorized and directed to execute and deliver each of the Phase One Bonds and the Phase Two Bonds to the Trustee for authentication for and on behalf of and as the act and deed of the City in the manner provided in the applicable Indenture. The Director of Finance is hereby authorized and directed to execute the Phase One Indenture, the Phase Two Indenture, the Phase One Lease, the Phase Two Lease, any related documents and certificates associated with the amendment and bifurcation of the Bonds and the Bond documents (collectively, the “City 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, for and on behalf of and as the act and deed of the City. The City Clerk or a deputy City Clerk, of the City is hereby authorized and directed to attest to and affix the seal of the City to the Phase One Bonds and the Phase Two Bonds and the City 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. Further Authority. The Mayor, Director of Finance and other officials, agents and employees of the City as required, are hereby authorized and directed to take such further action, and execute such other documents, certificates and instruments 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 City Documents.

 

____________________________________________

 

Approved as to form and legality:

 

 

______________________________

Brian T. Rabineau

Assistant City Attorney