Title
CONSIDERATION OF A RESOULUTION AUTHORIZING THE AMENDMENT OF THE SEDGWICK COUNTY, KANSAS TAXABLE INDUSTRIAL REVENUE BONDS, SERIES A, 2000 (UNITED WAREHOUSE COMPANY); TAXABLE INDUSTRIAL REVENUE BONDS, SERIES A, 2002 (UNITED WAREHOUSE COMPANY); AND TAXABLE INDUSTRIAL REVENUE BONDS, SERIES 2006 (UNITED WAREHOUSE COMPANY).
Presented by: Irene Hart, Director, Community Development.
RECOMMENDED ACTION: Adopt the Resolution and Authorize the Chairman to sign.
Body
The County has previously issued its (i) Taxable Industrial Revenue Bonds, Series A, 2000 (United Warehouse Company) in the original aggregate principal amount of $4,500,000 (the “Series A, 2000 Bonds”) and its Subordinated Taxable Industrial Revenue Bonds, Series B, 2000 (United Warehouse Company) in the original aggregate principal amount of $500,000, (ii) Taxable Industrial Revenue Bonds, Series A, 2002 (United Warehouse Company), in the aggregate principal amount of $3,500,000 (the “2002 Bonds”), (iii) Subordinated Taxable Industrial Refunding and Improvement Revenue Bonds, Series 2005 (United Warehouse Company), in the aggregate principal amount of $975,000 (the “2005 Bonds”), and (iv) Taxable Industrial Revenue Bonds, Series 2006 (United Warehouse Company), in the aggregate principal amount of #3,450,000 (the “2006 Bonds”) all for the benefit of United Warehouse Company (the “Company”) and all in connection with the purchasing, acquiring, constructing, equipping and making of various additions to a distribution center/warehouse.
The Series A, 2000 Bonds, 2002 Bonds and 2006 Bonds (the “Parity Bonds”) are all issued on a parity with each other, while the 2005 Bonds are subordinated to the Parity Bonds.
The Company has had some financial difficulties resulting from the recent relocation of certain large manufacturing customers. The Company has been unable to keep its payments current and the Bonds are currently in default. The owner of the Parity Bonds, Midwest Independent Bank, has agreed to m...
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