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:
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