Agenda 09/23/2008 - Laserfiche WebLink

Home Browse Search

principal components of the rentals under the Lease Agreement shall not exceed 4.00% per annum, (iii) the final maturity dale of the Bonds and the teon of the Lease Agreement shall not extend beyond December 31, 2014, (iv) the debt service payments due under the Bonds (and the rental payments under the Lease Agreement) shall consist of interest-only payments (together with any costs and expenses) until the maturity date thereoC and (v) the principal amount of the Bonds and rental payment under the Lease Agreement is subject to prepayment at any time (upon reasonable notice), without premium or penalty, The execution and delivery of the Support Agreement by the City Manager or Assistant City Manager shall constitute conclusive evidence of his approval of such completions, omissions, insertions or changes, 3. The City Council hereby consents to execution and delivery of the other Financing Documents to be prepared in connection with the financing of the ProJect. 4. Recog.nizing that the obligations of the City under the Support Agreement shall in no way constitute an obligation or indebtedness of the City, nor a pledge of th(~ full faith and credit or taxing power of the City, in furtherance of the tenns and conditions of the Revenue Sharing Agreement, the City acknO\vledges and agrees that that an allocation to the City of approximately 33% of the principal amount of the Series 2008 Bond for purposes of Section 265(b){3)(C)(iii) of the Internal Revenue Code of 1986, as amended (the "Code") represents a reasonable allocation bearing a reasonable relationship to the benefits to be received by the City trom the issuance of the Series 2008 Bond in connection with the financing of the Project. The City hereby designates its reasonable allocation of the benefits to be received from the issuance of the Series 2008 Bond, as "qualified tax-exempt obligations" tar the purpose of Section 265(b)(3) of the Code. The City (together with its subordinate entities) does not reasonably anticipate issuing more than $10,000,000 in bonds, notes, leases or other obligations of the City (excluding private activity bonds v,rhich are not qualified 501(c)(3) bonds under Section 145 of the Code) during calendar year 2008, and the City (together with its subordinate entities) has not and will not designate more than $10,000,000 of qualified tax-exempt obligations pursuant to Section 265(b)(3) of the Code during such calendar y'car. The City l\i1anagcr and Assistant City 1'....1anager are each hereby authorized and directed to execute and deliver a bank-qualification allocation agreement or similar agreement necessary. to nlrther effectuate the foregoing. " It is the present intention of the City Council to designate an allocation by the City of approximately 33%l of the Series 2009 Bond as "qualified tax-exempt obligations" for purposes of Section 265(b)(3)(C)(IlI) of the Code once the Series 2009 Bond is issued in 2009. 6, The City Council, while recognizing that it is not empowered to make any binding commitment to make appropriations under the Support Agreement in future fiscal years, hereby states its intent to make such appropriations in future tiscal years, and hereby recommends that future City Councils do likewise during the term of the Support Agreement. The City tv.tanager and Assistant City' Manager are hereby authorized and directed to calTY out the obligations imposed on them by the Support Agreement, subject tn the tenns and conditions of this Resolution. 7, This resolution shall take dYed immediately. 3 I