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File #: 3662-08    Version: 1 Name: An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, directing the Allegheny County Airport Authority to repay the sum of $42,500,000 to the County.
Type: Ordinance Status: Approved
File created: 1/2/2008 In control: County Council
On agenda: Final action: 2/19/2008
Title: An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, directing the Allegheny County Airport Authority to repay the sum of $42,500,000 to the County.
Sponsors: Chuck McCullough, William Robinson, Joan Cleary, John DeFazio, Matt Drozd, Michael Finnerty, Vince Gastgeb
Attachments: 1. 05-08-OR Bill No. 3662-08.PDF

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An Ordinance of the County of Allegheny, Commonwealth of Pennsylvania, directing the Allegheny County Airport Authority to repay the sum of $42,500,000 to the County.

 

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                     WHEREAS, on or about July 29, 1999, the County of Allegheny formed the Allegheny County Airport Authority (the “Authority”) pursuant to the Municipality Authorities Act; and

 

                     WHEREAS, pursuant thereto, Allegheny County transferred Pittsburgh International Airport (“PIT”) and the County Airport in West Mifflin to the Authority for oversight, responsibility and for the full and prompt payment of all obligations with respect thereto (collectively the “Project”) pursuant to that certain agreement between the parties known as the “Airport Operation, Management and Transfer Agreement between Allegheny County, Pennsylvania and the Allegheny County Airport Authority” (the “Transfer Agreement”); and

 

                     WHEREAS, the County had previously issued its 1987 Series C-34 and other General Obligation Bonds (the “Bonds”) in the approximate sum of $42,500,000 toward the construction and development of the Midfield Terminal Project at PIT; and

 

                     WHEREAS, the Bonds are defined in Section 1.14 of the Transfer Agreement as “County Debt” to be paid by the Authority pursuant to Section 3.01 of the Transfer Agreement; and

 

                     WHEREAS, reimbursement to the County for the Bonds is therefore part of the Authority's obligations relative to the Project;

 

                     WHEREAS, to date, the Authority has failed to honor its obligation to reimburse the County for the Bonds; and

 

                     WHEREAS, by failing to honor said obligation, the Authority has not fully and properly performed its duties relative to the Project; and

 

                     WHEREAS, it is the intention by this Ordinance, to cause the prompt reimbursement of the County for the Bonds;

 

 

The Council of the County of Allegheny hereby enacts as follows:

 

SECTION 1.  Incorporation of the Preamble

 

The provisions set forth in the preamble to this Ordinance are incorporated by reference in their entirety herein.

 

SECTION 2.  Demand for Payment

 

It is hereby ratified and confirmed by County Council that the reimbursement of the County by the Authority for the Bonds constitutes a material part of the Project and that the same is due and owing from the Authority.  Accordingly, demand is hereby made upon the Authority for the full payment and/or reimbursement of the same by the Authority to the County, and the County Law Department is directed to send formal written notice of such demand immediately after enactment hereof.

 

SECTION 3.  Failure to Adhere to Demand

 

The Authority shall have ninety (90) days from the date hereof to make arrangements satisfactorily to the Chief Executive and to County Council for the reimbursement of the Bonds. The County Law Department is hereby authorized and directed to make such arrangements with the Authority.  In the event such arrangements are not made, the County Law Department shall report the same to County Council along with its recommended course of action.  County Council shall receive such recommendation under advisement and shall take such feasible recourse to obtain reimbursement of the Bonds as it shall then determine.

 

SECTION 4.  Severability

 

If any provision of this Ordinance shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Ordinance which shall be in full force and effect.

 

SECTION 5.  Repealer

 

Any Resolution or Ordinance or part thereof conflicting with the provisions of this Ordinance is hereby repealed so far as the same affects this Ordinance.