Title
A Resolution of the Lexington-Fayette Urban County Government approving (I) the execution and delivery by the County of Clark, Ky. of its County of Clark, Ky. Healthcare Revenue Bonds, Series 2017 (Ky. Medical Services Foundation, Inc. Project) in an amount not to exceed $10,000,000 and (II) the execution and delivery by the County of Scott, Ky. of its County of Scott, Ky. Healthcare Revenue Bonds, series 2017 (Ky. Medical Services Foundation, Inc. Project) in an amount not to exceed $10,000,000 (collectively, the "bonds"), and the use of the proceeds thereof to assist Ky. Medical Services Foundation, Inc. (the "Corporation") (a) to finance the costs of paying off that certain loan with Central Bank & Trust Co. the proceeds of which were used to finance the costs of the corporation’s buildings located at 2347 Sterlington Rd. and 2301, 2317, 2325, and 2333 Alumni Park Plaza, Lexington, Ky., (b) to pay for certain capital improvements to the property, and (c) to pay the costs of issuance. PUBLIC HEARING on February 23, 2017 at 6:00 p.m. [Mayor's Office, Atkins]
Summary
Authorization to send a resolution to Clark County and Scott County requesting they provide for the issuance of revenue bonds for the support of Kentucky Medical Services Foundation. The LFUCG is required to issue a resolution in support of an industrial revenue bond project in Lexington-Fayette county if the project is being financed by another agency in Kentucky. There is no budgetary impact. (L0126-17) (Atkins)
Budgetary Implications [select]: NO
Advance Document Review:
Law: { Yes/No, Completed by Barberie}
Risk Management: {Select Yes/No, Completed by [Official, Date]}
Fully Budgeted [select]: N/A
Account Number:
This Fiscal Year Impact: $
Annual Impact: $
Project:
Activity:
Budget Reference:
Current Balance:
Body
WHEREAS, the County of Clark, Kentucky (the "County of Clark"), pursuant to the provisions of Section 103.200 to 103.285, inclusive, of the Kentucky Revised Statutes, as amended (the "Act"), proposes to execute and deliver, together with Kentucky Medical Services Foundation, Inc. (the "Corporation"), a nonprofit corporation organized and existing under the laws of the Commonwealth of Kentucky and exempt from federal income taxes as an organization described and designated by the Internal Revenue Service under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), its County of Clark, Kentucky Healthcare Revenue Bonds (KMSF Project), Series 2017 in an amount not to exceed $10,000,000 (the "County of Clark Bonds"); and
WHEREAS, the County of Clark, pursuant to the Act, proposes to loan the proceeds of the County of Clark Bonds to the Corporation, to be used to finance the costs of paying off that certain loan with Central Bank & Trust Co. (the “Central Bank loan”), the proceeds of which were used to finance the costs of the Corporation’s buildings located at 2347 Sterlington Road and 2301, 2317, 2325, and 2333 Alumni Park Plaza, Lexington, Kentucky and certain costs of issuance (collectively, the "Project"); and
WHEREAS, the County of Scott, Kentucky (the "County of Scott"), pursuant to the Act, proposes to execute and deliver, together with the Corporation, its County of Scott, Kentucky Healthcare Revenue Bonds (KMSF Project), Series 2017 in an amount not to exceed $10,000,000 (the "County of Scott Bonds," together with the County of Clark Bonds, the "Bonds"); and
WHEREAS, the County of Scott, pursuant to the Act, proposes to loan the proceeds of the County of Scott Bonds to the Corporation, to be used to finance the costs of paying off the Central Bank loan, the proceeds of which were used to finance the costs of the Project; and
WHEREAS, Section 147 of the Code requires public approval by the governmental unit having jurisdiction over the area in which the Project is located;
WHEREAS, a public hearing of the Lexington-Fayette County Urban Government (the "Urban County Government") concerning the proposed execution and delivery by the Counties of Clark and Scott of the Bonds for the use and benefit of the Corporation was convened, following duly published notice thereof, on February 23, 2017 at the Government Center, Council Chambers, 2Nd Floor, 200 East Main Street, Lexington, Kentucky, at 6:00 p.m. local time; and
WHEREAS, the Mayor presided at the hearing and called for public comment, and there being none, the hearing was closed.
NOW, THEREFORE, BE IT RESOLVED BY THE URBAN COUNTY COUNCIL OF THE LEXINGTON-FAYETTE URBAN COUNTY GOVERNMENT:
Section 1. It is hereby found, determined and declared that (i) the recitals set forth in the preamble in this Resolution, which are incorporated in this Section by reference, are true and correct, and that, upon the basis of the foregoing public hearing, the documentation submitted to the Urban County Government and other evidence, the Urban County Government by and through the Council of the Urban County Government (the "Council"), as its elected legislative body, being sufficiently advised, hereby approves the Project and the execution and delivery of the Bonds, all within the meaning of Section 147 of the Code.
Section 2. The Mayor, the Clerk of the Council and other appropriate Urban County Government officials are hereby authorized, empowered and directed for and on behalf of the Urban County Government to execute all papers, documents, certificates or other instruments that May be required for the carrying out and effectuation of the authority conferred by and the purposes of this Resolution, or to evidence said authority and purposes.
Section 3. To the extent any prior Resolution or Ordinance is in conflict with this Resolution, the provisions of this Resolution shall prevail and be given effect.
Section 4. This Resolution shall be effective on the date of its passage.
Section 5. Urban County Government Not Liable. THE BONDS SHALL NOT BE A GENERAL OBLIGATION OF THE Urban County Government BUT A LIMITED OBLIGATION PAYABLE SOLELY FROM THE AMOUNTS PAYABLE UNDER THE BOND AGREEMENT AND THE LOAN AGREEMENT AND OTHER REVENUES OF THE PROJECT. NEITHER THE Urban County Government, COUNTY OF CLARK, COUNTY OF SCOTT, THE COMMONWEALTH OF KENTUCKY NOR ANY OTHER POLITICAL SUBDIVISION OF THE COMMONWEALTH SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF OR INTEREST ON SUCH BONDS OR OTHER COSTS INCIDENT THERETO EXCEPT FROM THE REVENUES OF THE PROJECT PLEDGED THEREFOR. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE Urban County Government, COUNTY OF CLARK, COUNTY OF SCOTT, THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION OF THE COMMONWEALTH IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, OR PREMIUM, IF ANY, OR INTEREST ON THE BONDS OR OTHER COSTS THERETO.
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PASSED URBAN COUNTY COUNCIL: February 23, 2017.
____________________________________
Jim Gray, Mayor
ATTEST:
____________________________________
Martha Allen, Council Clerk
Lexington-Fayette Urban County Government
PUBLISHED: February ____, 2017
CERTIFICATION
The undersigned certifies that she is the duly appointed and acting Clerk of the Lexington-Fayette Urban County Council and that the foregoing is a true, correct, and complete copy of a Resolution duly adopted by the Urban County Council at a regular meeting held on February 23, 2017, signed by the Mayor, and now in full force and effect, and that all action taken in connection with such Resolution was in compliance with KRS 61.810, 61.815, and 61.820, all as appears from the official records of such Council in my possession and under my control.
Martha Allen,
Clerk of the Urban County Council
(SEAL)
Dated: _____________, 2017
CERTIFICATE
I hereby certify that the title to the foregoing Resolution contains an accurate synopsis of the contents thereof and May be used to satisfy the reading and publication requirements of law.
_______________________________________
Jana E. Syrcle
FROST BROWN TODD LLC
Lexington Financial Center
250 West Main Street, 28th Floor
Lexington, KY 40507