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HomeMy WebLinkAbout2026-04 Authorizing Loan Agreement with ODOT for N. Mountain Ave. Rehabilitation Project RESOLITTION NO. 2026-04 RESOLT-TIONOF THE CITY OF ASHLAND AUTHORIZING THE CITY_',VLXN_AGER TO ENTER INTO A LOAN AGREE AMENT WITH THE OREGON DEPARTMENT OF TRANSPORTATION FOR THE NORTH'_\IOUNTAIN AVENUE REILALBILITATION PROJECT RECITALS: A. The City of Ashland ("City" or"Borrower") has filed an application with the Oregon Department of Transportation ("Departinent") to obtain financial assistance for an overlay and rehabilitation project of North Mountain Avenue. B. The Oregon Transportation Commission has approved the City's application for financial assistance from the Ore-on Transportation Infrastructure Fund, Z7 - C. As a prerequisite to the receipt of financial assistance from the Department, the, City is required to enter into a Loan Agreement ("Agreement" or "Loan Agreement") with the Department in substantially the form attached hereto as Exhibit "A" and provide a resolution to the Department that the City's governing board authorized the loan and appointed an authorized offer. THE CITY OF ASHLAND HEREBY RESOLVES AS FOLLOWS: SECTION 1. Financing Loan Authorized. The Governing Body authorizes the City Manager (the "Authorized Officer")to execute, on behalf of the City, the Loan Agreement and other such documents as may be required to obtain financial assistance from the Department, with the condition that the principal amount of the loan fi-om the Department to the City is not in excess I of$7,,662,963.00 and the interest rate on such loan is not in excess of 2.77%pro per annum. The proceeds of the loan from the Department shall be applied solely to "Project," as that term is defined in the Loan Agreement. SECTION 2. Security. Repayment of the City's obligation under the Financing Documents is secured byil-i "Pledged Revenues," as defined in the Loan Agreement to mean: (1) City's Food and Beverage Tax, (11) City's Street User Fee, (iii)Full Faith and Credit of the Borrower, (IV) any funds payable from the State to the Borrower, including, but not limited to, any amounts due to the Borrower from the State pursuant to ORS 366.783 to 366.820. SECTION 3. Municipal Comoration. The City is a municipal corporation, duly organized under its Charter, and exercises all powers and privileges conferred-upon municipal corporations by state and federal authorities. SECTION 4. This resolution is effective upon adoption. Resolution No.2026-04 Page 1 of 2 This resolution was duly PASSED and ADOPTED this day of and takes effect upon signing b4the ayor. " Ali lodzinski, City Recorder SIGNED and APPROVED this day of �- , 2026. Tonya graham, Mayor Reviewed as to farm: ea m ahi:an,Deputy City Attorney Resolution No.2026-04 Page 2 of 2