HomeMy WebLinkAbout2026-17 Refunding of an Interim Loan from the Special Public Works Fund with the Oregon Infrastructure Finance Authority RESOLUTION NO. 242S-17
A RESOLUTION AUTHORIZING REFUNDING OF AN INTERIM LOAN FROM THE
SPECIAL PUBLIC WORKS FUND WITH THE OREGON INFRASTRUCTURE
FINANCE AUTHORITY
RECITALS:
A. The City of Ashland is a "municipality" within the meaning of Oregon Revised Statutes
285B.410(9).
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B. Pursuant to Oregon Revised Statutes 285B.410 through 285B.482 (the"Act"),the City of Ashland
obtained a loan for interim financing (the"Interim Loan") in the principal amount of$4,839,751
from the State of Oregon,acting by and through its Oregon Infrastructure Finance Authority of the
Business Development Department ("the Department") through the Special Public Works Fund
` for the financing of a "development project" within the meaning of the Act by entering into an
Interim Financing Contract Project Number B24001 with the Department dated January 24,2024.
C. The Interim Financing Contract contemplated the possibility of refunding the Interim Loan by
including it in the issuance of Oregon Bond Bank Revenue Bonds (the"State Bonds")and passing
the interest rates on the State Bonds through to anew permanent financing loan. The proceeds of
any such State Bonds have been pledged as collateral in Exhibit B to the Interim} Financing
Contract and will be applied to repay the outstanding balance of the Interim.Loan as provided in
Section 4 D.(l)of the Interim Financing Contract.
D. The City of Ashland desires to refinance the Interims Loan with proceeds of the State Bonds and to
participate in the Department's issuance of the State Bonds. Such participation will achieve debt
service savings on the outstanding Interim Loan by paying the Loan in fuull and replacing it with a
permanent financing loan agreement.
THE CITY OF ASHLAND HEREBY RESOLVES AS FOLLOWS:
SECTION 1. Refunding Authorized, Delegation Authorized. The Governing Body authorizes
the City Manager,or person designated by the City Manager to act on behalf of the City of
Ashland (the"Authorized Officer"),to enter into a permanent financing loan agreement("Loan
Agreement")and Promissory Note,to be pledged as collateral for an issuance of State Bonds by
executing such Loan Agreement and Promissory Note, and to enter into any agreements and to
execute any other documents or certificates as may be required to refund the Interim Loan.
SECTION 2. Security.Amounts due to the Department pursuant to the Loan Agreement and the
Promissory Note shall continue to be secured by a pledge as provided in the Interim Financing
Contract,including but not limited to the City's pledge of its full faith and taxing power Nvithin the
limitations of Article XI, Sections I l and I lb, and as will be provided in Section 7 of the new
Loan Agreement.
Resolution No.2026-17 Page r of 2
SECTION 3. Tax-Exempt Status. The City of Ashland covenants not to take any action or omit
to take any action if the action or omission would cause interest paid by the City of Ashland
pursuant to the Loan Agreement not to qualify for the exclusion from gross income provided by
Section 103(a) of the Internal Revenue Code of 1986, as amended. The Authorized Officer may
enter into covenants on behalf of the City of Ashland to protect the tax-exempt status of the
interest paid by the City of Ashland pursuant to the Loan Agreement, and may execute any Tax
Certificate, Internal Revenue Service forms or other documents as shall be required by the
Department or its bond counsel to protect the tax-exempt stags of such interest.
SECTION 4. This resolution is effective upon adoption.
This resolution was duly PASSED and ADOPTED this day of
0 , and takes effect upon signing by the Mayor.
Alissa Kolodzinski, City Recorder
SIGNED and APPROVED this day of Y-Q i U 2026.
Tonya Graham, Mayor
Reviewed as to form:
I
etil i ttorney
Resohrtion No.2026-17 Page 2 of 2