HomeMy WebLinkAbout2009-06 Airport Hangar Loan
RESOLUTION NO. 2009- olo
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND,
OREGON, AUTHORIZING THE REFINANCING OF THE 2004 BANK
LOAN ASSOCIATED WITH CONSTRUCTING A HANGAR AT THE
ASHLAND MUNICIPAL AIRPORT
Recitals:
The City Council finds as follows:
A. The City financed costs of constructing a fourteen-airplane, nest-configured
T -hangar building at the Ashland Municipal Airport (the "Project") in 2004.
B. The City is authorized by ORS 271.390 to enter into financing agreements in
order to finance the cost of any real or personal property that the City determines
is needed.
C. The Project was needed to provide services for the City and its citizens.
D. The terms of the financing required refinancing by April 1, 2009.
E. The City desires to refinance the remaining portion of the 2004 loan with a
similar loan that will retire the obligation in ten years.
THE CITY OF ASHLAND RESOLVES AS FOllOWS:
Section 1. loan Aareement Authorized. The City is authorized to enter into a loan
agreement in an aggregate principal amount of not more than $290,000 (the "Loan
Agreement"). Loan proceeds shall. be used to re-finance the remaining portion of the
original loan. The Administrative Services/Finance Director or designee of the
Administrative Services/Finance Director (anyone or which is described as the "City
OffiCial"), on behalf of the City and without further action by the City Council, may:
1.1. accept the most desirable bank proposal to refinance the 2004 Loan
Agreement, negotiate the terms of the loan Agreement, and execute the loan
Agreement in an aggregate principal amount of not more than $290,000;
1.2. execute and deliver a note reflectin'g the City's obligation to make the
payments due under. the loan Agreement:
1.3. provide that interest payable under the Loan Agreement will be includable in
gross under the Internal Revenue Code of 1986, as amended (the "Code");
1.4. execute and deliver any other certificates or documents and take any other
actions which the City Official determines are desirable to finance the Project with the
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Loan Agreement in accordance with this resolution.
Section 2. Security. The City Official may pledge the City's ~ull faith and credit and
taxing power within the limitations of Sections 11 and 11 b 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 Agreements.
SECTION 3. This resolution was duly PASSED and ADOPTED this 8 day of March,
2009, a d takes effect upon signing by the Mayor.
Barbara Christensen, City Recorder
SIGNED and APPROVED this ~ay of March, 2009:
Reviewed as to form:
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