Williamstown KY Ark Encounter pos

200 Pages·2013·2.55 MB·English

final d be PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 6, 2013
n ul NEW ISSUE NOT RATED
vered iale wo BOOK-ENTRY ONLY
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Official Statech offer, soli TaxabCleI TInYd uOsFtr iWalI BLuL$iI6lAd2i,Mn0g0S 0RT,eO0v0eW0n*Nue, KBoEnNdTs,U SCerKieYs 2013
e su (Crosswater Canyon, Inc. Project)
me thwhich Dated: Date of Delivery Due: As shown on inside preliminary pages
or to the tidiction in ISntca.t uPTterhose,j e aCcsit t)ay m (otehf nWed “ielSdlie a(rmtihesset o“2Aw0c1nt3,” K)B aeonnndtdu asc” kT)y.r u( Ttshth eIen “ dISseesnruiteeusrr” e)2 d0is1a 3itse sdBu oainnsg do sift sDa rTeeca exbmaebibnleegr I in1sd,s 2uu0se1tdr3 i pa(ltu hBresu u“ilaIdnnidtn egtno Rt u§er§ve e”1n)0u b3e.e2 Bt0wo0en tedons ,1t Sh0ee3r .I2ise8ss5u 2 eo0rf1 a3tnh (deC UrKo.eSsns. wtBuaacntkekyr NCRaaetnvioyisonenadl,
pted priny juris A(“sCsroocsisawtioante, ra Cs atnruysotne”e) (athned “ATrrku sEtenec”o)u, ntote rp,r oLvLiCd,e af uMndisss owuhrii clhim witielld b leia lboialintye dc otom Cparonsys w(“aAtrekr ECnancoyounn,t eIrn, cL.,L aC ”K eanntdu ctokgye nthoenrp rwoifitht cCorropsosrwataitoenr
ea Canyon, the “Borrower”) for the purposes of: (i) financing a portion of the costs of constructing, installing and equipping the initial phase of
be accnds in am obribe lipcaarltliyc-uthlaermlye dd eesdcuricbaetdio hnearle ainn;d ( iei)n tcearptaitianlmizienngt ac opmorptiloexn otof tihnec liundteer eas rt edpuliec ao no ft hteh eS eArireks o2f0 1N3o Baho nadnsd t hrreolautgehd afnadci liinticelsu d(itnhge A“Pprriol j1e,c t2”0)1, 6a*s;
buy e Bo (iii) funding an initial deposit to a debt service reserve fund with respect to the Series 2013 Bonds; and (iv) paying certain costs associated with
n offer to sale of th tAhper iils Ts1uh, ae2n 0Sc1ee4r .io e fTs th2he0e 1S S3ee rBriieoesns d 22s00 1a13r3 e BB dooanntdedsds ,at harelel i iras sds uamateob rloeef ifdnue ldlliyev nderoeysm cairnnidba etwidoi nlilns b toehfai sr$ 5iOn,0ftfi0e0cre ioaslrt Sfartnoaymte i mnthteeengirtr. a d lSa meteeu pl“taTiypHaleEb ltBeh OeornRe ReoafO caWhn EdA Rparr Aiel N1su Dabn TjdeH cOEt ct PtooR mbOeirnJ Ei1m,C buTem.g” iinnnitiniagl
y any purchase amounts as set forth on the inside preliminary pages hereof. The Series 2013 Bonds are issuable only as fully registered bonds and, when
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me issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). Purchases
ay not be sold nor y, nor shall there b otIstThnhofH ete belE oSSre neeeBnsgrreOtii fiee aNosscsn Di22Da 0t0SlTh 11 i–Ce3n3 tBSBBoeeororo reoninitskeddsts-s ssEn 2w(ionn0“mtiB1 lrtl3yieh nb neBOeee eo nSfit nhleicysderi iaS sterhl,yes Oetss o2 tpwreg0eomen1gnt3ei”hss r iBehtsber”eoir )lrwnei etwddyiitn si hool .lw wf tn htinohlelete rbp r Deeoric Tfnm eCtcihavi Ppede aae Splr e tthtirhhycireesiopsricuea 2aogn0lhft 1 sd a3 teanh lBndievdo epb ntrrohdyeoes mok. I f- inT eucdnmheiterrr,et ydiicffi i tosca Pnbanluatyyerr, s tssti echyrmeiseptpreeaernmneottsn soeo, nf(fw a tsDisiunl Tlhcg bhCe tre .hp e ePpainiuyar mi rdidcnee htdfineaintrrsseeee dsctrots)t l. iy ton hS f tet eohb e BeeD “ enSDTneeCEefirfi cSibeciCaysiRal 2 tlihI0 nPOe1tT w3eTI rBnOreuesoNsrtnsts Oed oiesFnf,.
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he Bonds n offer to b wdeilpl obsIenit potharyye a febovlree tn uhtpe t ohSnae trp itreheses r2ee0n 1itsa3 t niBooon sn eadcnsud, r psitauiyermrse denendpte orths tiehtroeerroyen of ofw ra ittl lht hebe eS pemrraiinedsce i2 pa0as1l 3dc eoBsrocpnroidbrsae,t det h htere uprsertii nno cfufiipncadele oor ff“ tDahnEed ST pCrrRuesImPteiTeuI.mO I,Nn i ftO haFne yTe,v HoeEnn ttB htOhe eNSreDer Siise –sn 2oP0 as1ye3mc Bueronintti deossf
mendment. Tolicitation of a tOhfefi cSieTarhli eeSs tS a2et0er1mie3se B n2ot0.n1d3s B.”onds shall mature on October 1 of the years in the principal amounts as set forth on the inside preliminary pages of this
as THE SERIES 2013 BONDS ARE SUBJECT TO REDEMPTION PRIOR TO MATURITY AS MORE FULLY DESCRIBED HEREIN. IN ADDITION,
d e
nh INVESTMENT IN THE SERIES 2013 BONDS IS SPECULATIVE IN NATURE AND SUBJECT TO CERTAIN RISKS. EACH PROSPECTIVE
n aor t INVESTOR SHOULD CONSIDER ITS FINANCIAL CONDITION AND THE RISKS INVOLVED TO DETERMINE THE SUITABILITY OF INVESTING
ein are subject to completiont constitute an offer to sell of any such jurisdiction. IOPDWTONRHOBFI TOT EL TNHHIP THCGOEEIHEON ATRSE M T EPTTN IRRYMHSOOI IEEEOPWNNRS LNSCM IEA2 WIEEP0DPNS1EAAAGD3 AYN LE2 BALSI 0DOONTHB1 NFHG3LAPD, E UL OOPBS LRRS.FFO S NOE SNTKUEELMDHEAEEVISENN EUL“ TTDYRCMSU E OHTF,CC SIONAROCFKSLO RN TYATLMISH P INNT TTENTYOIIU O,HOTIR TONTUNE IA DRT OOABN EENIFEMYNN I T OTOTPNGHREOUUDEE RRLNET NBEIETHBTEOS.STE IRNT CE TPAS DAODHATLSLNNEYA ” AE O SATTSSBUNBUHESLBDLTER EID EOI “GS BEISFUAVEOS NOITTR NS2DFHIIDI0OE EOETH1SNRN 3HOI S 2 S ELTBT 0SD HOOH1CUE3ENFEOER DBRMRLSTOES’O M HOR ONAAEOIRDFSNN NK ST SDIWAS SHHO ”GSTE EARHUHRA L ECEFEELLROORE T EIB MRMHNIEB NM,TTE U.ALEHNOTINRETAN DE SBWPA SPNLENETEEERAD C PIFFL TIAFOOTAHYRRHRLEAOM RTOBMAAH LFNT NEFE HDKC U TE PEENLHA N IDIOYSETMSFMSRU IU EAETCAEONENKNRNDDTYY,
hermews PLEDGE, MORTGAGE, OBLIGATION OR AGREEMENT CREATED BY OR ARISING UNDER THE INDENTURE OR THE SERIES
ormation contained minary Official Stateder the securities la 2PT“WU0OHin1lWEl3dia Te EPBrmhRAwOes Y rNO SiLMtDFeLerE SrPTi”Ne ,)HF s,CT R Eso2 OuO v0IbiMSF1nj3Se gTcA UttBHoN EtnoEoYRn, wd,PKP sTRiRe tnHIhOaNtdEruPerC cE aCkIowRyPOff,aTAM elBYrL oMeo OdrOnO TmdFwN H,oCh WdPEoeinRuERfi,nEA c TsaaMLeHtsliTI .Ao UaH nNCnM Oode T,fr F tIHita FfhK Eie niAE soT sNNlfReufYTgeeUra,Ud iSlO n CTmbgRKy Ea w YIttSNti hOetTTehrRA soEI u TswARtsE iENunl.leS Yo rNbtT PieE ac OOepnI,LNaTd asI HnsTTreEdeHIdc CRs eEouAi T nvbSLe HjEf deSoEc RrUtb IFyttBEohA D SeRtI hI ToI2VessH0 sIsa1uS, p A3eISprO NiBr nbNDoOycv lT NiCainHtRDigsrEE Seoc .RDop&uiEIn TnOAis oNFsensl O,Io oSJRcfie PafPTftLerHeceEsEky,D SCLTGhL.A EaCSXfDhf Ie(i NrTpt hpG&Oe,
ement and the infes shall this Prelior qualification un EEefaxsscpqqie..l,,ci TtPtAieHeetdttsI oe tSrorhsn faC beDtuO ytTrh VfgCeoE, rSoKR ente rh PnioeeAtr usC Ga c2ibktE0oyy1 u ,Co3 tafO BD nWNodenic TfledolAmisraI bwtmNheiSresl tl 1U oCb9wneE, dn dR2e,e0 Trlw1wiAv3ireIt.ihrN te e odIrf N fiabFcgyea Oisit Rnsi nsMct o FApuoaTnryIstm OeMl,eN inHt Ftca htOlhel,Rel lrR, eQeKfnoUerdnI eiCtrnuK, ciK kmRyilEm,l ifFaeodEnri ,Rta hHEteeeN layBCt oahErv r& aOoi wLlNayeLbrml Yeba .yf n u I,inT tPds I. sCgS ie. n,Nn I eObnrodaToil k aAc-neo SnauUtpnroMsyle iflMs,o ,r JAImonRhd Ytnih aOrEnoF.ua P .gT eh IHn ttc IhieSse,
s Preliminary Official Statm. Under no circumstancawful prior to registration I“DSBaStOeU:N E_D_. H_ P_O_O_L_TD_E,E 2NR0T1S3I’A RLI SINKVSE” SATNODR TSH SEH OAPUPLEDN RDEIACDE ST HHEE REENTTOIR PER IOOFRF ITCOI AMLA SKTIANTGE AMNE INNTV,E ISNTCMLUEDNITN DGE TCHISEI OSENC.TION ENTITLED
Thiforunl * Preliminary, subject to change

MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES, YIELDS/PRICES
AND MINIMUM INITIAL PURCHASE AMOUNTS*

$10,005,000 5.250% Term Bonds due October 1, 2020 – Price: 100% Yield: 5.250% CUSIP†: 970350AW4
Minimum Initial Purchase Amount: $250,000

$8,050,000 5.500% Term Bonds due October 1, 2022 – Price: 100% Yield: 5.500% CUSIP†: 970350AX2
Minimum Initial Purchase Amount: $100,000

$11,020,000 5.625% Term Bonds due October 1, 2024 – Price: 100% Yield: 5.625% CUSIP†: 970350AY0
Minimum Initial Purchase Amount: $50,000

$32,925,000 6.000% Term Bonds due October 1, 2028 – Price: 100% Yield: 6.000% CUSIP†: 970350AZ7
Minimum Initial Purchase Amount: $5,000

IN CONNECTION WITH THE OFFERING OF THE SERIES 2013 BONDS, THE
UNDERWRITER RESERVES THE RIGHT TO ADD ONE OR MORE ADDITIONAL TERM BONDS
AND/OR MODIFY THE TERM BOND STRUCTURE OR THE RESPECTIVE MINIMUM INITIAL
PURCHASE AMOUNTS AT THE TIME OF PRICING.

* Preliminary, subject to change

† Copyright 2013, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s CUSIP Service Bureau,
a division of The McGraw-Hill Companies, Inc. The CUSIP numbers are provided for convenience and reference only. Neither
the Issuer nor the Underwriter are responsible for the selection or use of the CUSIP numbers, nor is any representation made as to
their correctness on the Series 2013 Bonds or as indicated above.
CITY OF WILLIAMSTOWN, KENTUCKY

Rick Skinner, Mayor
Vivian Link, City Clerk
City Council
Kim Crupper Ed Gabbert
Troy Gutman Jacqalynn Riley
Elizabeth (Liz) Wagoner Charles Ed Wilson

CROSSWATER CANYON, INC.
Michael D. Zovath, Executive Director
ARK ENCOUNTER, LLC
Michael D. Zovath, Executive Director
Patrick Marsh, Senior Director of Design

FINANCIAL ADVISOR MARKET RESEARCH CONSULTANTS
The Nehemiah Group America’s Research Group
Springfield, Missouri Charleston, South Carolina

H2R Market Research
Springfield, Missouri

ARCHITECT/DESIGN DESIGN-BUILD CONSULTANT
The Troyer Group Destination Concepts and Development, LLC
Mishawaka, Indiana Mishawaka, Indiana
TRUSTEE
U.S. Bank National Association
Cincinnati, Ohio
UNDERWRITER
Ross, Sinclaire & Associates, LLC
Cincinnati, Ohio

BOND COUNSEL ISSUER’S COUNSEL
Peck, Shaffer & Williams LLP Jeffrey C. Shipp, Esq.
Covington, Kentucky Fort Mitchell, Kentucky

BORROWER’S GENERAL COUNSEL UNDERWRITER’S COUNSEL
John E. Pence, Esq. Hall, Render, Killian, Heath & Lyman, P.C.
Petersburg, Kentucky Indianapolis, Indiana
OFFICIAL STATEMENT
The information set forth herein has been obtained from the Issuer, the Borrower, DTC and other
sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness and it is
not to be construed as a representation by Ross, Sinclaire & Associates, LLC (the “Underwriter”). The
information and expressions of opinion herein are subject to change without notice, and neither the
delivery of this Official Statement nor any sale made hereunder shall, under any circumstances or at any
time, create any implication that information herein is correct as of any time subsequent to the date of this
Official Statement.
No dealer, broker, salesman or any other person has been authorized by the Issuer, the Borrower
or the Underwriter to give information or to make any representations, other than those contained herein,
in connection with the offering of the Series 2013 Bonds, and if given or made, such information or
representations must not be relied upon as having been authorized by the Issuer, the Borrower, the
Underwriter or any other entity.
The Series 2013 Bonds are not being registered with the Securities and Exchange Commission, in
reliance on an exemption from the Securities Act, nor has the Indenture been qualified under the Trust
Indenture Act of 1939, as amended, in reliance on an exemption contained in such act. The registration or
qualification of the Series 2013 Bonds in accordance with applicable provisions of securities laws of the
states in which the Series 2013 Bonds have been registered or qualified and the exemption from
registration or qualification in other states cannot be regarded as a recommendation thereof. Neither these
states nor any of their agencies have passed upon the merits of the Series 2013 Bonds or the accuracy or
completeness of this Official Statement. Any representation to the contrary may be a criminal offense.
Under no circumstances shall this Official Statement constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any
such jurisdiction.
The statements contained in this Official Statement, including, but not limited to, the information
contained in the Appendices hereto, and any other information provided by the Borrower that are not
purely historical, are forward-looking statements, including statements of the Borrower’s expectations,
hopes and intentions, or strategies regarding the future.
The forward-looking statements herein are necessarily based on various assumptions and
estimates, and are inherently subject to various risks and uncertainties, including risks and uncertainties
relating to the possible invalidity of the underlying assumptions and estimates and possible changes or
developments in social, economic, business, industry, market, legal and regulatory circumstances and
conditions and actions taken or omitted to be taken by third parties, including customers, suppliers,
business partners and competitors, and legislative, judicial and other governmental authorities and
officials. Assumptions relating to the foregoing involve judgments with respect to, among other things,
future economic, competitive and market conditions and future business decisions, all of which are
difficult or impossible to predict accurately, and, therefore, there can be no assurance that the forward-
looking statements contained in this Official Statement will prove to be accurate.
IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN
EXAMINATION OF THE ISSUER, THE BORROWER, THE PROJECT AND THE TERMS OF THE
OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE
NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR
REGULATORY ISSUER. FURTHERMORE, NO SUCH COMMISSION OR ISSUER HAS
CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS OFFICIAL
STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
The Underwriter has provided the following sentence for inclusion in this Official Statement:
The Underwriter has reviewed the information in this Official Statement in accordance with and as part of
its responsibilities to investors under the federal securities laws as applied to the facts and circumstances
of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such
information.
TABLE OF CONTENTS
Page

INTRODUCTION ........................................................................................................................................ 1
PURPOSES OF ISSUE ................................................................................................................................. 1
THE ISSUER ................................................................................................................................................ 2
DESCRIPTION OF THE BONDS ............................................................................................................... 3
SECURITY FOR THE SERIES 2013 BONDS ............................................................................................ 9
PLAN OF FINANCING ............................................................................................................................. 16
THE BORROWER AND THE PROJECT ................................................................................................. 16
ESTIMATED SOURCES AND USES OF FUNDS .................................................................................. 22
ANNUAL DEBT SERVICE REQUIREMENTS ....................................................................................... 23
BONDHOLDERS’ RISKS ......................................................................................................................... 23
GENERAL RISKS ................................................................................................................................. 24
RISKS RELATED TO THE PROJECT ................................................................................................. 24
RISKS RELATED TO THE OPERATION OF PROJECT ................................................................... 27
RISKS RELATED TO THE THEMED ATTRACTION INDUSTRY ................................................. 31
RISKS RELATED TO THE SERIES 2013 BONDS ............................................................................. 34
WARNING REGARDING USE OF FORWARD-LOOKING STATEMENTS .................................. 35
TAX MATTERS ......................................................................................................................................... 35
LEGAL MATTERS SUBJECT TO APPROVAL OF COUNSEL ............................................................ 36
LEGAL OPINIONS AND ENFORCEABILITY OF RIGHTS AND REMEDIES ................................... 36
NO CREDIT RATING ............................................................................................................................... 37
FINANCIAL PROJECTIONS .................................................................................................................... 37
FORWARD-LOOKING STATEMENTS .................................................................................................. 37
LITIGATION .............................................................................................................................................. 38
CONTINUING DISCLOSURE .................................................................................................................. 38
SALE OF SERIES 2013 BONDS ............................................................................................................... 40
MISCELLANEOUS ................................................................................................................................... 40

APPENDIX A: FEASIBILITY REPORT ........................................................................................... A-1
APPENDIX B: DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF CERTAIN
PROVISIONS OF THE PRINCIPAL DOCUMENTS .............................................. B-1
APPENDIX C: FORM OF BOND COUNSEL OPINION ................................................................. C-1
[THIS PAGE INTENTIONALLY LEFT BLANK]
OFFICIAL STATEMENT

relating to the original issuance of

City of Williamstown, Kentucky
$62,000,000*
Taxable Industrial Building Revenue Bonds, Series 2013
(Crosswater Canyon, Inc. Project)

INTRODUCTION
This Official Statement, which includes the cover page and the Appendices, is furnished by the
City of Williamstown, Kentucky (the “Issuer”) in connection with the offering by the Issuer of its
$62,000,000* Taxable Industrial Building Revenue Bonds, Series 2013 (Crosswater Canyon, Inc. Project)
(the “Series 2013 Bonds”). The Series 2013 Bonds are authorized by Ordinance No. 2013-20 duly
adopted by the City Council of the Issuer on July 16, 2013, and are being issued pursuant to §§ 103.200 to
103.285 of the Kentucky Revised Statutes, as amended (the “Act”), and a Trust Indenture dated as of
December 1, 2013 (the “Indenture”) between the Issuer and U.S. Bank National Association, as trustee
(the “Trustee”).
PURPOSES OF ISSUE
Proceeds from the sale of the Series 2013 Bonds will be loaned by the Issuer to Crosswater
Canyon, Inc., a Kentucky nonprofit corporation (“Crosswater Canyon”) and Ark Encounter, LLC, a
Missouri limited liability company (“Ark Encounter, LLC” and together with Crosswater Canyon, the
“Borrower”). The funds will be used for the purposes of (i) financing a portion of the costs of the
acquisition, construction, installation and equipping of the initial phase of a biblically-themed educational
and entertainment complex to include a replica of the Ark of Noah and related facilities, located on
approximately 203.5 acres in the City of Williamstown, Kentucky, as more fully described in APPENDIX
A hereto (the “Project”); (ii) capitalizing a portion of the interest due on the Series 2013 Bonds through
and including April 1, 2016*; (iii) funding a deposit into the Reserve Fund with respect to the Series 2013
Bonds; and (iv) paying certain costs associated with the issuance of the Series 2013 Bonds. Additional
information regarding the Project is contained under the heading “THE BORROWER AND THE
PROJECT” herein and in APPENDIX A hereto.
The Series 2013 Bonds, together with any additional bonds that may be issued under the
Indenture on a parity with the Series 2013 Bonds (the “Additional Bonds,” and together with the Series
2013 Bonds, the “Bonds”), are special, limited obligations of the Issuer. The Series 2013 Bonds are
payable solely from (i) certain payments to be made by the Borrower to the Trustee for the account of the
Issuer pursuant to a Loan Agreement, dated as of December 1, 2013, between the Borrower and the Issuer
(the “Loan Agreement”), (ii) proceeds of the Series 2013 Bonds, (iii) the amounts in the funds and
accounts established by the Indenture, (iv) certain proceeds of condemnation or insurance received by the
Borrower and applied to the extraordinary redemption of the Series 2013 Bonds, as hereinafter described,
and (v) payments made with proceeds of such additional security as may be granted in favor of the
Holders of the Series 2013 Bonds subsequent to the issuance of the Series 2013 Bonds. Payments made
by the Borrower pursuant to the Loan Agreement are a general obligation of the Borrower, evidenced by a

* Preliminary, subject to change
promissory note (the “Series 2013 Note”) issued thereunder by the Borrower to the Issuer. Pursuant to
the Indenture, the Issuer will assign its rights to receive such payments under the Loan Agreement to the
Trustee as security for the payment of the Series 2013 Bonds. The Borrower’s obligations under the Loan
Agreement are secured by (i) a pledge of, and a first security interest in, the Borrower’s Gross Receipts,
which includes Project Revenues; (ii) an Open-End Mortgage and Security Agreement, dated as of
December 1, 2013, as amended and supplemented from time to time (as so amended and supplemented,
the “Mortgage”), from the Borrower, as mortgagor, to the Trustee, as mortgagee, pursuant to which the
Borrower has granted (subject to certain exceptions) a first mortgage security interest in the Project (as
defined herein) and other property and assets of the Borrower owned now or in the future comprising the
Mortgaged Property (as defined herein) to the Trustee, (iii) an Assignment of Rents and Leases, dated as
of December 1, 2013 (the “Assignment of Rents”) from the Borrower to the Trustee and (iv) a Collateral
Assignment of Agreements, dated as of December 1, 2013 (the “Collateral Assignment”) from the
Borrower to the Trustee, pursuant to which the Borrower has assigned to the Trustee all the plans,
specifications and contracts related to the Project, together with all permits, licenses and other
authorizations (to the extent such are assignable) necessary to operate the Project. See “SECURITY FOR
THE SERIES 2013 BONDS” herein. For summaries of certain provisions of the Indenture, the Loan
Agreement, the Mortgage and the Assignment of Rents, see APPENDIX B hereto.
The summaries of and references to all documents, statutes and other instruments in this Official
Statement do not purport to be complete and are qualified in their entirety by reference to the full text of
each document, statute or instrument. Certain terms used in this Official Statement are defined in
APPENDIX B. Terms not defined in this Official Statement shall have the meanings as set forth in the
Indenture and the Loan Agreement, copies of which are available for inspection at the office of the Issuer
located at 400 North Main Street, Williamstown, Kentucky 41097.
THE ISSUER
The Issuer is a duly constituted and validly existing municipal corporation and political
subdivision of the Commonwealth of Kentucky (the “Commonwealth” or the “State”). The Series 2013
Bonds are authorized and issued by the Issuer pursuant to the provisions of the Act and pursuant to
Ordinance No. 2013-20 adopted by the City Council of the Issuer on July 16, 2013.
The Series 2013 Bonds shall be special and limited obligations of the Issuer payable solely from
the sources provided for under the Indenture. See “SECURITY FOR THE SERIES 2013 BONDS”
herein.
THE SERIES 2013 BONDS SHALL NOT BE GENERAL OBLIGATIONS OF THE ISSUER
BUT SPECIAL AND LIMITED OBLIGATIONS PAYABLE SOLELY FROM THE AMOUNTS
PAYABLE UNDER THE LOAN AGREEMENT AND FROM FUNDS AND PROPERTY PLEDGED
PURSUANT TO THE INDENTURE. THE SERIES 2013 BONDS AND THE INTEREST PAYABLE
THEREON DO NOT NOW AND SHALL NEVER CONSTITUTE INDEBTEDNESS OF THE ISSUER
OR THE COMMONWEALTH OF KENTUCKY WITHIN THE MEANING OF THE CONSTITUTION
OR THE STATUTES OF THE COMMONWEALTH, AND NEITHER THE ISSUER, THE
COMMONWEALTH OF KENTUCKY NOR ANY POLITICAL SUBDIVISION THEREOF SHALL
BE LIABLE FOR THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST
ON THE SERIES 2013 BONDS OR FOR THE PERFORMANCE OF ANY PLEDGE, MORTGAGE,
OBLIGATION OR AGREEMENT CREATED BY OR ARISING UNDER THE INDENTURE OR THE
SERIES 2013 BONDS FROM ANY PROPERTY OTHER THAN THE TRUST ESTATE. NEITHER
THE FAITH AND CREDIT NOR THE TAXING POWER OF THE ISSUER, THE
COMMONWEALTH OF KENTUCKY OR ANY POLITICAL SUBDIVISION THEREOF IS
2