Title
Amendment of State Office Building Wrap Around Lease between the City of Wichita and Sedgwick County and the Wichita Public Building Commission.
Body
In 1991, The Wichita Public Building Commission ("Wichita PBC") entered into a Lease Agreement with the State of Kansas (the "State Lease") to lease approximately 190,000 square feet of office space in the former Dillards department store building located on William Street between Broadway and Market in downtown Wichita (the "State Office Building"). In 1993, the Wichita PBC issued $18,620,000 in lease revenue bonds to finance the costs to acquire and renovate the Dillards building and construct 475 spaces in the 650 space parking garage located on William between Emporia and Topeka.
At the time of the issuance of the Wichita PBC bonds in 1993, the Wichita PBC entered into a separate lease agreement with the City of Wichita and Sedgwick County which provided financial backstopping for the bonds during the first 10 years of the lease and delegated the Wichita PBC's landlord duties under the State Lease to the City. This lease agreement, which is referred to as the "Wrap Around Lease," contains a purchase option whereby the City and County may jointly obtain title to the State Office Building for $1.00, by mutual agreement, once the Wichita PBC bonds have been retired.
The various state agencies whose offices were consolidated into the new downtown location completed their move into the State Office Building on October 1, 1994 to begin the 20-year term prescribed by the State Lease. The State Lease provides the State with the option to renew the lease for a five-year term following the expiration of the initial 20-year term, or the option to purchase the building and associated parking facilities once the Wichita PBC bonds are repaid, for a price of approximately $8,000,000. The bonds, which were refinanced in 2003, will mature on October 1, 2014 - the same day the 20-year term of the Sate Lease will ...
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