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HomeMy WebLinkAbout2023-27 Public Works OIFA Loan10 11 12 13 14 is 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2023-27 A RESOLUTION AUTHORIZING A LOAN FROM THE SPECIAL PUBLIC WORKS FUND BY ENTERING INTO A FINANCING CONTRACT WITH THE OREGON INFRASTRUCTURE FINANCE AUTHORITY A. The Recipient is a "municipality" within the meaning of Oregon Revised Statutes 285B.410(9). B. Oregon Revised Statutes 28513.410 through 28513.482 (the "Act") authorize 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. C. The Recipient has filed an application with the OBDD to obtain financial assistance for a "development project" within the meaning of the Act. D. The OBDD has approved the Recipient's application for financial assistance from the Special Public Works Fund pursuant to the Act. E. The Recipient is required, as a prerequisite to the receipt of financial assistance from the OBDD, to enter into an Interim Financing Contract with the OBDD, number B2400 1, substantially in the form attached hereto as Exhibit 1. The project is described in Exhibit C to that Interim Financing Contract (the "Project"). F. 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 COUNCIL OF THE CITY OF ASHLAND, OREGON, RESOLVES AS FOLLOWS: SECTION 1. Financing Loan Authorized. The Governing Body authorizes the City Manager (the "Authorized Officer") to execute on behalf of Recipient the Interim 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 $4,839,751 and an interest rate of 3.05% 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 applied solely to the "Costs of the Project" as such term is defined in the Interim Financing Contract. RESOLUTION NO. 2023-27 Page I of 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 2. Sources of Repayment. Amounts payable by the Recipient are payable from the sources described in section 4 of the Interim 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) Revenues from the Recipient's Street Fund Revenues; or (d) Any other source. SECTION 3. Additional Documents. The City Manager of the City of Ashland is here authorized to enter into any agreements and to execute any documents or certificates which in be required to obtain financial assistance from the IFA for the Project pursuant to the Financi Documents. SECTION 4. 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. SECTION 5. This resolution is effective upon adoption. -a/ 1L, I '/ h 111 ADOPTED by the City Council this day of (� 6 � J - L �1 ( �J4_, 2023. I Reviewed as to form: I Douglass McGeary, City Attorney RESOLUTION NO. 2023-27 EVOWN Alissa`k6lodzirisk!', City Recorder Page 2 of 2