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Legislation #: 050343 Introduction Date: 3/24/2005
Type: Ordinance Effective Date: none
Sponsor: None
Title: Approving the issuance of Tax-Exempt Revenue Bonds (Kansas City Downtown Arena Project) Series 2005A and Taxable Revenue Bonds (Kansas City Downtown Arena Project) Series 2005B, by the Industrial Development Authority of the City of Kansas City, Missouri, in an aggregate principal amount not to exceed $230,000,000.00, as variable interest rate demand bonds and/or fixed interest rate bonds in one or more series, to provide funds to finance the acquisition of land and constructing and equipping of a downtown arena; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

Legislation History
DateMinutesDescription
3/23/2005 Filed by the Clerk's office
3/24/2005 Referred to Finance Committee
3/30/2005 Advance and Do Pass, Debate
3/31/2005 Passed

View Attachments
FileTypeSizeDescription
050343.pdf Authenticated 242K Authenticated
Sprint Arena Term Sheet.xls Other 19K Term Sheet
Sprint Arena Fact Sheet v6.xls Fact Sheet 54K fact sheet
fiscal notes-Sprint Arena v2(3).xls Fiscal Note 36K Arena Fiscal Note

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ORDINANCE NO. 050343

 

Approving the issuance of Tax-Exempt Revenue Bonds (Kansas City Downtown Arena Project) Series 2005A and Taxable Revenue Bonds (Kansas City Downtown Arena Project) Series 2005B, by the Industrial Development Authority of the City of Kansas City, Missouri, in an aggregate principal amount not to exceed $230,000,000.00, as variable interest rate demand bonds and/or fixed interest rate bonds in one or more series, to provide funds to finance the acquisition of land and constructing and equipping of a downtown arena; and authorizing and approving certain documents and actions in connection with the issuance of such bonds.

 

WHEREAS, the City has requested the IDA to issue its Tax-Exempt Revenue Bonds (Kansas City Downtown Arena Project), Series 2005A (the Series 2005A Bonds) and its Taxable Revenue Bonds (Kansas City Downtown Arena Project) Series 2005B (the Series 2005B Bonds, together with the Series 2005A Bonds, the Bonds as variable interest rate demand bonds and/or fixed interest rate bonds in one or more series, for the purpose of providing funds to pay the costs of (a) acquiring land and constructing and equipping a downtown arena (the Project), as defined and more fully described in the Indenture and (b) paying costs related to the issuance of the Bonds, including fees associated with the provision of the Bond Insurance Policy and the Liquidity Facility;

 

WHEREAS, in order to set forth the terms of their respective rights, duties and obligations, the City intends to enter into (i) a Financing Agreement among the City, the IDA and the Trustee, with respect to the Series 2005A Bonds, and (ii) a Financing Agreement among the City, the IDA and the Trustee, with respect to the Series 2005B Bonds (collectively the Financing Agreements) which set forth their roles and responsibilities in connection with the payment of debt service on the Bonds;

 

WHEREAS, concurrently with the execution and delivery of the Bonds, (a) Ambac Assurance Corporation (the Bond Insurer) will issue and deliver to the Trustee its financial guaranty insurance policy (the Bond Insurance Policy) insuring the payment when due of the principal of and interest on the Bonds, and (b) the Liquidity Facility Provider, as identified in the Indenture, will provide and deliver to the Trustee its liquidity facility (the Liquidity Facility), providing for payment of the purchase price of the Bonds tendered for purchase, under a Standby Bond Purchase Agreement dated as of the date of the Bonds (the Standby Bond Purchase Agreement), among the IDA, the City and the Liquidity Facility Provider;

 

WHEREAS, the City finds and determines that in order to finance the Project it is necessary and desirable to approve the issuance by the IDA 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 IDA in order to finance the Project. The City hereby finds and determines that the Bonds are being issued by the IDA for a valid purpose under and in accordance with provisions of Chapter 349 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) Financing Agreement dated as of the date set forth therein (the Financing Agreement) among the IDA, the City, and the Trustee, with respect to the Series 2005A Bonds;

 

(b) Financing Agreement dated as of the date set forth therein (the Financing Agreement) among the IDA, the City, and the Trustee, with respect to the Series 2005B Bonds;

 

(c) Bond Purchase Agreement dated as of the date of pricing of the Bonds, among the IDA, the City and Oppenheimer & Co., Inc., on behalf of itself and the additional purchasers named therein;

 

(d) A Tax Compliance Agreement dated as of the date set forth therein (the Tax Agreement), by and among the IDA, the City and the Trustee pursuant to which each party thereto shall covenant to comply with federal tax law as it relates to the Series 2005A Bonds to preserve the tax exempt status of the Series 2005A Bonds;

 

(e) A Standby Bond Purchase Agreement dated as of the date set forth therein, among the IDA, the City and the Liquidity Facility Provider, as defined in the Indenture pursuant to which the certain tendered bonds shall be purchased by the Liquidity Facility Provider subject to the terms set forth therein;

 

(f) A Remarketing Agreement dated the date set forth therein (the Remarketing Agreement) among the IDA, the City and Oppenheimer & Co. Inc. (the Remarketing Agent), pursuant to which the Bonds shall be remarketed by the Remarketing Agent subject to the terms set forth therein and in this Resolution;

 

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 debt service payments on the Bonds in accordance with the Indenture from all legally available revenue sources, including, but not limited to, the User Fee Revenues, but solely for the benefit of the holders of the Series 2005B Bonds. The City reasonably believes that legally available funds in an amount sufficient to make all debt service 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 debt service payments may be made, including making provision for such debt service 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 debt service payments may be paid, including making provision for such debt service 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 Bonds by manual or facsimile signature, 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. Bond Insurance and Liquidity Facility. The Mayor, the City Manager, the Director of City Development or Director of Finance is hereby authorized to negotiate and approve the terms of any agreement for bond insurance with the Bond Insurer and any agreement with the Liquidity Provider (including, but not limited to the Standby Bond Purchase Agreement) to provide liquidity with respect to the Bonds while the Bonds are Floating Rate Bonds (as defined in the Indenture), and with the advice of the Assistant City Attorney as to the form thereof, is hereby authorized and directed to execute such agreements.

 

Section 6. 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 credit enhancement or security documents, 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 7. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri.

 

Section 8. 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