Memorandum

City of Lawrence

City Manager’s Office

TO:	David L. Corliss, City Manager
FROM:	Diane Stoddard, Assistant City Manager
DATE:	July 22, 2014
CC:	Casey Toomay, Assistant City Manager
RE:	Estoppel Certificate for Bliss Sports portion of Rock Chalk Park Project

Please place the following item on the August 5, 2014 consent agenda:

Authorize the Mayor to sign a Certificate and Acknowledgment Regarding the Lease Agreement and Estoppel related to the Industrial Revenue Bond financing for the Bliss Sports portion of the Rock Chalk Park Project.

Background: 

On October 31, 2013 the City issued industrial revenue bonds in the maximum principal amount of $40,000,000 for the Rock Chalk Park Stadium Project for the benefit of RCP, LLC, Bliss Sports, LC and Kansas Athletics, Inc.  Bliss Sports, LC who has funded the Stadium Project has requested that the City execute and deliver an estoppel certificate to Sunflower National Bank the lender to Bliss Sports, LC.  An estoppel certificate is customary in connection with financing related to industrial revenue bonds since the City is the owner of the property and technically the landlord under the bond lease.  The substance of the estoppel certificate is that the City is not aware of any defaults of Bliss under the bond lease, the City consents to the mortgage of the interest of Bliss in the property and the City agrees that the lender has the right to perform any obligations of Bliss if it fails to perform under the bond lease.  These certificates are fairly route with industrial revenue bond transactions. 

Recommended Action: 

Staff recommends that the City Commission authorize the Mayor to sign a Certificate and Acknowledgment Regarding the Lease Agreement and Estoppel related to the Industrial Revenue Bond financing for the Bliss Sports portion of the Rock Chalk Park Project