Title
Resolution authorizing the redemption and payment of taxable industrial revenue bonds issued for the benefit of Beechcraft Corporation and the sale and conveyance of certain property to Textron Aviation.
Body
Recommended Action: Adopt the resolution and authorize the Chairman to sign.
Since 1989, Sedgwick County has issued nearly $1.5 billion of industrial revenue bonds for the benefit of Beechcraft and it's corporate predecessors. Currently, $68,803,736.59 of those bonds remain outstanding. Much of the property acquired with the bond proceeds is owned by Sedgwick County and leased to the company. As bond issues are paid off, ownership of the property that was acquired with those bonds is transferred to the company.
Beechcraft has been acquired by Textron Aviation. Textron intends to refinance the County's Beechcraft bonds with new industrial revenue bonds that will be issued by Wichita. The company has sent notice of its intent to exercise its option to purchase the property acquired with the bonds and to redeem those bonds. To enable Textron to do so, the Board of County Commissioners (BOCC) must take certain actions:
1) Authorize the redemption of the outstanding bonds - i.e. the Series 2006 through Series 2013 bonds;
2) Approve Beechcraft’s exercise of its option to purchase the assets financed with the proceeds of the outstanding bonds;
3) Approve Beechcraft’s exercise of its option to purchase assets financed with bonds that have already matured - i.e. the Series 2003 - Series 2005 bonds; and
4) Approve the release of the existing site lease, IRB lease and Trust Indenture which authorized and secured the bonds.
Additionally, the Chairman, County Clerk, and perhaps other County officials must sign various documents in conjunction with these actions, as listed below:
• Bill of Sale - transferring 2003-2006 assets to Textron Aviation Inc. (p...
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