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