Res. 2215 - Authorize Loan for SPWFCOUNCIL BILL NO. 3222
RESOLUTION NO. 2215
A RESOLUTION AUTHORIZING A LOAN FROM THE SPECIAL PUBLIC WORKS FUND
BY ENTERING INTO A FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE
FINANCE AUTHORITY
WHEREAS, the Recipient is a "municipality" within the meaning of Oregon
Revised Statutes 285B.410(9); and
WHEREAS, Oregon Revised Statutes 28513.410 through 28513.482 (the "Act")
authorizes any municipality to file an application with the Oregon Infrastructure
Finance Authority of the Business Development Department ("OBDD") to obtain
financial assistance from the Special Public Works Fund; and
WHEREAS, the Recipient has filed an application with the OBDD to obtain
financial assistance for a "development project" within the meaning of the Act;
and
WHEREAS, the OBDD has approved the Recipient's application for
financial assistance from the Special Public Works Fund pursuant to the Act; and
WHEREAS, the Recipient is required, as a prerequisite to the receipt of
financial assistance from the OBDD, to enter into a Financing Contract with the
OBDD, number A23008, substantially in the form attached hereto as Exhibit 1.
The project is described in Exhibit C to that Financing Contract (the "Project");
and
WHEREAS, notice relating to the Recipient's consideration of the adoption
of this Resolution was published in full accordance with the Recipient's charter
and laws for public notification, NOW, THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. Financing Loan Authorized. The City Council authorizes the City
Administrator (the "Authorized Officer") to execute on behalf of Recipient the
Financing Contract and such other documents as may be required to obtain
financial assistance (the "Financing Documents"), including a loan from the
OBDD, on such terms as may be agreed upon between the Authorized Officer
and OBDD, on the condition that the principal amount of the loan from the
OBDD to the Recipient is not in excess of $2,000,000 and an interest rate of 1.62%
per annum a percent deemed reasonable by the Authorized Officer and in the
best interest of the Recipient. The proceeds of the loan from the OBDD will be
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Resolution No. 2215
applied solely to the "Costs of the Project" as such term is defined in the
Financing Contract.
Section 2. Sources of Repayment. Amounts payable by the Recipient are
payable from the sources described in section 4 of the Financing Contract and
the Oregon Revised Statutes Section 285B.437(3) which include:
(a) The revenues of the project, including special assessment revenues;
(b) Amounts withheld under ORS 28513.449 (1);
(c) The general fund of the Recipient;
(d) "Refunding Proceeds," as that term is defined in the Financing
Contract, which includes, but is not limited to, the $15 million in
Lottery Bond proceeds granted to the City by the State of Oregon in
the event that the City has passed a local bond measure, or
obtained other financing, that will substantially fund the Project.
"Substantially" funding the Project means that the City has obtained
funding equal to at least 85% of the estimated total cost of the
Project, including the $15 million in Lottery Bond proceeds; or
(e) Any other source.
Section 3. Tax -Exempt Status. The Recipient covenants not to take any
action or omit to take any action if the taking or omission would cause interest
paid by the Recipient pursuant to the Financing Documents not to qualify for
the exclusion from gross income provided by Section 103(a) of the Internal
Revenue Code of 1986, as amended. The Recipient may enter into covenants
to protect the tax-exempt status of the interest paid by the Recipient pursuant
to the Financing Documents and may execute any Tax Certificate, Internal
Revenue Service forms or other documents as may be required by the OBDD or
its bond counsel to protect the tax-exempt status of such interest.
Approved as to form:
City Attor y Date
Approved:
Frank Loner ` n, Mayor
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
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Resolution No. 2215
Filed in
ATTEST
the Office of the Recorder
Heather Pierson, City Recorder
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Resolution No. 2215