HomeMy WebLinkAbout1319 Taxable Industrial Revenue Bonds Argo Innovation Park Lot 6 BILL NO. 2014-051 ORDINANCE NO. L
AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
AND AUTHORIZING THE CITY TO ISSUE ITS TAXABLE INDUSTRIAL REVENUE BONDS
(ARGO INNOVATION PARK LOT 6, L.L.C. PROJECT), SERIES 2014 IN THE MAXIMUM
PRINCIPAL AMOUNT OF $18,730,000, FOR THE PURPOSE OF PROVIDING FUNDS TO
PAY THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING A FACILITY FOR AN
INDUSTRIAL DEVELOPMENT PROJECT IN THE CITY; AND AUTHORIZING THE CITY TO
ENTER INTO CERTAIN AGREEMENTS AND TAKE CERTAIN OTHER ACTIONS IN
CONNECTION WITH THE ISSUANCE OF THE BONDS.
WHEREAS, the City of Riverside, Missouri, a fourth-class city and political subdivision of
the State of Missouri (the "City'), is authorized and empowered pursuant to the provisions of
Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 through
100.200, inclusive, of the Revised Statutes of Missouri, as amended (RSMo) (collectively, the
"Act'), to purchase, construct, extend and improve certain projects (as defined in Section 100.010
RSMo) and to issue industrial development revenue bonds for the purpose of providing funds to
pay the costs of such projects and to lease or otherwise dispose of such projects to private
persons or corporations for manufacturing, commercial, warehousing and industrial development
purposes upon such terms and conditions as the City shall deem advisable; and
WHEREAS, Section 100.050 RSMo requires the City to prepare a plan in connection
with any industrial development project undertaken pursuant to the Act; and
WHEREAS, a Plan for an Industrial Development Project dated May 13, 2014 (the
"Plan") was prepared and distributed to the taxing jurisdictions along with notice of a public
hearing to be held by the City on June 3, 2014; and
WHEREAS, on June 3, 2014 the public hearing on the Plan was held by the City; and
WHEREAS, the Board of Aldermen hereby finds and determines that it is desirable for
the improvement of the economic welfare and development of the City and within the public
purposes of the Act that the City approve the Plan pursuant to the Act and issue its Taxable
Industrial Revenue Bonds (Argo Innovation Park Lot 6, L.L.C. Project), Series 2014, in an
aggregate principal amount not to exceed $18,730,000 (the "Bonds"), for the purpose of (a)
acquiring land to be located at 5233 NW 41' Street in Riverside, Missouri (the "Project Site"), (b)
leasing the Project Site and Project Improvements (as hereinafter defined) to Argo Innovation
Park Lot 6, L.L.C., a Missouri limited liability company (the "Tenant') for the construction of an
approximately 275,500 square foot industrial facility thereon, including the purchase and
installation of equipment and fixtures relating thereto (collectively, the "Project Improvements"),
and (c) paying a portion of the costs of issuing the Bonds; and
WHEREAS, simultaneously with the issuance of the Bonds, the City will lease the
Leased Property (as defined in the hereinafter approved Lease) to the Tenant; and
WHEREAS, the Board of Aldermen further finds and determines that it is necessary and
desirable in connection with the issuance of the Bonds 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 BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
SECTION 1 — APPROVAL OF THE PLAN. The Board of Aldermen hereby finds that:
(a) proper notice as required by the Act was properly given to all taxing jurisdictions regarding
the proposed Plan and (b) it has fairly and duly considered all comments submitted to the Board
of Aldermen regarding the proposed Plan. The Board of Aldermen hereby approve the Plan in
the form of Exhibit A attached hereto.
SECTION 2 - AUTHORIZATION OF THE BONDS. The City is hereby authorized to
issue and sell the Bonds as described in the recitals hereto for the purpose of providing funds to
pay the costs of the Project and to pay a portion of the costs of issuing the Bonds. The Bonds
shall be issued and secured pursuant to the Indenture and shall have such terms, provisions,
covenants and agreements as are set forth therein.
SECTION 3 - LIMITATION ON LIABILITY. The Bonds and the interest thereon shall be
limited and special revenue obligations of the City payable solely out of the rents, revenues and
receipts derived by the City from the Leased Property and the Lease Agreement and not from any
other fund or source of the City. Such payments, revenues and receipts shall be pledged and
assigned to the bond trustee named therein (the "Trustee') as security for the payment of the
Bonds as provided in the Indenture. The Bonds and the interest thereon shall not constitute
general obligations of the City or the State of Missouri (the "State"), and neither the City nor the
State shall be liable thereon. The Bonds shall not constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction, and are not payable in any manner
by taxation.
SECTION 4 - AUTHORIZATION OF DOCUMENTS. The City is hereby authorized to
enter into the following documents (the "City Documents"), in substantially the forms presented
to and approved by the Board of Aldermen and attached to this Ordinance, with such changes
therein as are approved by the officials of the City executing the documents, such officials'
signatures thereon being conclusive evidence of their approval thereof:
(a) Trust Indenture dated as of the date set forth therein (the "Indenture"),
between the City and the Trustee, pursuant to which (1) the Bonds will be issued and (2)
the City will pledge the Leased Property and assign certain of the payments, revenues
and receipts received pursuant to the Lease Agreement to the Trustee for the benefit
and security of the owners of the Bonds upon the terms and conditions as set forth in the
Indenture.
(b) Lease Agreement dated as of the date set forth therein (the "Lease
Agreement"), between the City and the Tenant, under which the City will lease the
Leased Property to the Tenant, pursuant to the terms and conditions in the Lease
Agreement, in consideration of rental payments by Tenant that will be sufficient to pay
the principal of, premium, if any, and interest on the Bonds, including a Memorandum of
Lease Agreement providing notice of the Lease Agreement.
(c) Bond Purchase Agreement dated as of the date set forth therein, among
the City, the Tenant and the purchaser of the Bonds.
SECTION 5. CREATION OF BOND FUND. The City is hereby authorized to establish
with the Trustee pursuant to the Indenture, a special trust fund in the name of the City to be
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designated the "City of Riverside, Missouri, Bond Fund — Argo Innovation Park Lot 6, L.L.C.
Project' and the City shall cause all sums required by the Indenture to be deposited therein and
shall create all accounts therein required by the Indenture.
SECTION 6- EXECUTION OF DOCUMENTS. The Mayor is hereby authorized to
execute the Bonds and to deliver the 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 Indenture. The Mayor is
hereby authorized to execute 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 is hereby
authorized to attest to and affix the seal of the City to the 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 7 - FURTHER AUTHORITY. The City shall, and the officials, agents and
employees of the City are hereby authorized 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 Bonds and the City Documents. The Mayor is hereby
authorized, throughout the term of the Lease Agreement, to execute all documents on behalf of
the City (including documents pertaining to the transfer of property) as may be required to carry
out and comply with the intent of this Ordinance, the Indenture and the Lease Agreement.
SECTION 8 - CONFLICTS. All ordinances or parts of ordinances in conflict herewith are
hereby repealed.
SECTION 9 - EFFECTIVE DATE. This Ordinance shall be in full force and effect from
and after its passage and approval.
BE IT REMEMBERED that the above was read two times by heading only, passed and
approved by a majority of the Board of Aldermen and APPROVED by the Mayor of the City of
Riverside, Missouri, this 3rd day of June, 2014.
D
Kat een L. Rose, Mayor
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ATT�E$T:
Robin Littrell, Cit "Clerk
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