Printable Format12-1741. Issuance of revenue bonds by cities; lease-purchase agreements. Subject to the provisions of K.S.A. 12-1744a and 12-1744b, and amendments thereto, any city shall have power to issue revenue bonds, the proceeds of which shall be used for the purpose of paying all or part of the cost of purchasing, acquiring, constructing, reconstructing, improving, equipping, furnishing, repairing, enlarging or remodeling facilities for agricultural, commercial, hospital, industrial, natural resources, recreational development and manufacturing purposes. Any city shall also have power to enter into leases or lease-purchase agreements by ordinance with any person, firm or corporation for the facilities. Except as otherwise provided in K.S.A. 12-1741a, and amendments thereto, the facilities may be constructed within the city or its environs without limitation as to distance, providing the governing body of the city declares that the facility, if in being, would promote the welfare of the city.
History: L. 1961, ch. 81, § 2; L. 1969, ch. 85, § 2; L. 1977, ch. 62, § 5; L. 1980, ch. 68, § 1; L. 1981, ch. 74, § 2; July 1.
Law Review and Bar Journal References:
Constitutionality of ten year industrial revenue bond property taxation provision of K.S.A. 79-201a, 24 K.L.R. 723, 724 (1976).
CASE ANNOTATIONS
1. Act does not contravene various provisions of Kansas constitution and bill of rights. State, ex rel., v. City of Pittsburg, 188 Kan. 612, 613, 614, 615, 619, 620, 621, 364 P.2d 71.
2. Applied; city ordinance to implement issuance of bonds administrative in character; not subject to initiative and referendum under K.S.A. 12-3013. Rauh v. City of Hutchinson, 223 Kan. 514, 517, 575 P.2d 517.
3. Agreement between Kansas City and GM held to be lease-purchase agreement qualifying for tax exemption in K.S.A. 79-201a Second. State ex rel. Tomasic v. City of Kansas City, 237 Kan. 572, 589, 590, 701 P.2d 1314 (1985).
4. Lease-purchase agreement under act not complete sale; filing requirements of UCC (article 9) inapplicable. In re Petition of City of Moran, 238 Kan. 513, 520, 522, 713 P.2d 451 (1986).
5. Leases under act true leases, not mortgages, and therefore subject to assumption/rejection requirements of bankruptcy code. In re Petroleum Products, Inc., 72 B.R. 739, 743 (1987).
6. Lease agreement entered into pursuant to act as not creating a mortgage determined. Bank of Alton v. Tanaka, 247 Kan. 443, 449, 799 P.2d 1029 (1990).
7. Mentioned; city's letter of intent to issue industrial revenue bonds and abatement void for failure to notify school district. Genesis Health Club, Inc. v. City of Wichita, 285 Kan. 1021, 1038, 1039, 1040, 181 P.3d 549 (2008).