Memorandum

City of Lawrence

City Attorney’s Office

TO:	David L. Corliss, City Manager
FROM:	Toni Wheeler, City Attorney Gina Riekhof, Gilmore & Bell
DATE:	February 16, 2012
RE:	February 21, 2012 City Commission Agenda Item Conveyance of Property related to Industrial Revenue Bonds issued in 2001 for DST Realty of Lawrence, Inc.

Background

The City previously issued its Taxable Industrial Revenue Bonds (DST Realty of Lawrence, Inc. Project), Series 2001 (the “Bonds”) to acquire, construct and equip certain property.  Pursuant to the Lease Agreements entered into in connection with issuance of the Bonds, the Lessee has the right to purchase the property financed with the Bonds upon payment in full of the bonds. 

The Trustee for the Bonds has certified that the Bonds have been paid in full, and DST Realty of Lawrence, Inc. has given notice that it wishes to exercise the purchase option provided in the Lease Agreement. 

The attached Resolution authorizes the Mayor and Clerk to execute a Deed, Bill of Sale and Termination of Lease Agreement, transferring all interest in the property financed with the Bonds to DST Realty of Lawrence, Inc.

Staff Recommendation

Staff recommends approval of the attached resolution.

Action Requested

Adopt Resolution No. 6963 authorizing the Mayor and Clerk to execute a Deed, Bill of Sale and Termination of Lease Agreement, and to take all other actions necessary to transfer to the project to the DST Realty of Lawrence, Inc., terminate all interest of the City in the project and carry out the intent of the resolution.