HomeMy WebLinkAboutCouncil Resolution 1140RESOLUTION NO. 1 ~ ~ O
A RESOLUTION OF THE CITY OF CENTRAL POINT, OREGON,
AUTHORIZING A BORROWING TO FINANCE STREET
IMPROVEMENTS
THE CITY COUNCIL OF THE CITY OF CENTRAL POINT, OREGON, FINDS AS
FOLLOWS:
A. The City is authorized by Oregon Revised Statutes Section 271.390 to enter into
financing agreements to finance or refinance real or personal property which the City Council
determines is needed.
B. The City has identified a need to modify intersections related to Upton Road,
Scenic Avenue, North 10`h Street, and North 3`d Street, extend Upton Road to provide access to
planned development, and purchase rights-of--way related to these improvements (the "Project").
C. The City Council hereby determines that the Project is needed, and that it is
desirable to finance the Project pursuant to ORS 271.390.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Central
Point, a municipal corporation of the State of Oregon, as follows:
Section 1. Loan Agreement Authorized.
The City is hereby authorized to enter into a loan agreement in an aggregate principal
amount of not more than $2,000,000 (the "Loan Agreement") pursuant to ORS 271.390. Loan
proceeds shall be used to finance the Project and to pay costs associated with the Loan
Agreement. The City Administrator or the City Finance Director, or the person designated by
the City Administrator or the City Finance Director (the "City Official") are hereby authorized,
on behalf of the City and without further action by the City Council, to:
(1) Determine the final principal amount, interest rates, payment dates, prepayment rights
and all other terms of the financing;
(2) Execute and deliver a note to evidence amounts due under the Loan Agreement;
(3) Select a commercial bank with which to negotiate, execute and deliver the Loan
Agreement. Subject to the limitations of this resolution, the Loan Agreement may be in
such form and contain such terms as the City Official may approve;
(4) Covenant for the benefit of the lender to comply with all provisions of the Internal
Revenue Code of 1986, as amended (the "Code") which are required for the interest paid
under the Loan Agreement to be excluded from gross income for federal income tax
purposes or determine that the interest earned on the Loan Agreement will be excluded
from gross income for federal income tax purposes; and
(5) Designate the Loan Agreement as a "qualified tax-exempt obligation" pursuant to
Section 265(b)(3) of the Code; and
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(6) Execute and deliver any other certificates or documents and take any other actions which
the City Official determines are desirable to carry out this resolution.
Section 2. Security.
The Loan Agreement shall constitute an unconditional obligation of the City, which is
payable from all legally available funds of the City. The City Official may pledge the City's full
faith and credit and taxing power within the limitations of Sections 11 and l lb of Article XI of
the Oregon Constitution, and any and all of the City's legally available funds, to make the
payments due under the Loan Agreement.
Section 3. Reimbursement.
The City anticipates incurring expenditures to finance the costs of the Project, including
costs of property and other improvements and wishes to declare its official intent to
reimbursement itself for any expenditures the City may make from its own funds on the Project
from the proceeds of bonds or other obligations, the interest on which shall be excluded from
gross income under Section 103 of the Code.
Section 4. Effective Date.
This Resolution shall take effect immediately.
Passed by the Council and signed by me in authentication of its passage this ~~day of May,
2007.
City of Central Point
Jackson County, Oregon
Mayor Hank Williams
ATTEST:
City Recorde
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Approved by me this ~S~ day of May, 2007.
Mayor Hank Williams
Resolution No.
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