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HomeMy WebLinkAbout93-36 - Reimburse Expenditures from Process of ObligationsRESOLUTION NO. 93 -36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCESS OF OBLIGATIONS TO BE ISSUED BY THE CITY AND DIRECTING CERTAIN ACTIONS • WHEREAS, the City proposes to analyze the project referenced below, to issue debt for such project and to use a portion of the proceeds of such debt to reimburse expenditures made for the project prior to the issuance of the debt; WHEREAS, United States Income Tax Regulations section 1.103 -18 provides generally that proceeds of tax - exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, among which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer must declare an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declare its official intent to reimburse the expenditures referenced herein; NOW, THEREFORE, BE IT RESOLVED that: 1. The City intends to issue obligations (the "Obligations ") for the purpose of financing the purchase by a 501(c)(3) corporation (the 'Purchaser ") of the fee interest and leasehold interest in the Bayside Village Mobile Home Park and the repayment of the existing loans in connection therewith (the 'Project'). 2. The City hereby declares that it reasonably expects to use a portion of the proceeds of the Obligations for reimbursement of expenditures for the Project that are paid before the date of issuance of the Obligations. 3. The maximum principal amount of the Obligations is $36,000,000. 4. The foregoing declaration is consistent with the budgetary and financial circumstances of the City in that there are no funds (other than proceeds of the Obligations) that are reasonably expected to be (i) reserved, (ii) allocated or (iii) otherwise set aside, by or on behalf of the City or any entity controlled by the City, for the expenditures for the Project that are expected to be reimbursed from the proceeds of the Obligations. 5. Within not more than thirty (30) days following the date of adoption of this Resolution, the City Clerk is directed to make this Resolution available to the public at the customary location of public records of the City. The City Clerk is hereby further directed to assure such public availability until the date of issuance of the Obligations. 6. This resolution is a declaration of official intent under Income Tax Regulations section 1.103 -18. . 7. The Purchaser shall be responsible for the payment of all present and future costs in connection with the issuance of the Obligations, including, but not limited to, any fees and expenses incurred by the City in anticipation of the issuance of the Obligations, the costs of printing any official statement, rating agency costs, bond counsel fees and expenses, underwriting discount and costs, trustee fees and expenses, and the cost of printing the Bonds. The Finance Director of the City is hereby authorized, for and in the name of and on behalf of the City, to enter into an agreement with the Purchaser pursuant to which the Purchaser will agree to reimburse the City for all non - contingent costs incurred in connection with the issuance of the Bonds. The payment of the principal, redemption premium, if any, and purchase price of and interest on the Obligations shall be solely the responsibility of the Purchaser. The Obligations shall not constitute a debt or obligation of the City. 8. The law firm of Jones Hall Hill & White, A Professional Law Corporation, is hereby named as bond counsel to the City in connection with the issuance of the Bonds. The fees and expenses of bond counsel in connection with the issuance of the Bonds are to be paid solely from the proceeds of the Bonds or directly by the Purchaser. •9. The adoption of this Resolution shall not obligate (i) the City to provide financing to the Purchaser for the acquisition, construction and development of the Project or to issue the Obligations for purposes of such financing; or (ii) the City, the Planning Commission of the City or any other department in connection with, any environmental, General Plan, zoning or any other permit or other action necessary for the acquisition, construction, development or operation of the Project. ADOPTED this 24th day of May 1993. c MAYOR ATTEST: •