Resolution No. 00-17 RESOLUTION NO.o0-/7
A RESOLUTION AUTHORIZING INTERIM FINANCING FOR THE DARTMOUTH STREET LOCAL
IMPROVEMENT DISTRICT IN AN AMOUNT NOT TO EXCEED$2,100,000.
WHEREAS,the City has previously authorized formation of the Dartmouth Street Local
Improvement District(the"District")to finance local improvements in the District,and has issued Its
$1,947,677.39 Full Faith and Credit Local Improvement Bond Anticipation Note which matures on May 1,
2000(the Outstanding Note);and,
WHEREAS,the final assessment securing the Outstanding Note is stiil in dispute and the property
owner has not filed an application to pay the assessment in installments;and,
WHEREAS,Oregon law prohibits the City from issuing long term bonds to finance an assessment
�.. ,the owner of the assessed property files an application to pay that assessment in installments;and,
WHEREAS,the City is authorized by ORS 288.165 to issue obligations to refinance the
Outstanding Note;and,
WHEREAS,the City must refinance the Outstanding Note and accrued interest due by May 1,
2000 and it will save time if the City negotiates the sale of the refinancing obligations,so the City Council
finds that a negotiated sale of the refunding obligations is desirable;,
NOW,THEREFORE,THE CITY OF-TIGARD RESOLVES AS FOLLOWS:
Section 1.Authorization. The City is hereby authorized to issue one or more obligations(the
"Refinancing Obligations")to refinance the Outstanding Note pursuant to ORS 288.165,The Refinancing
Obligations may be in the form of notes,loan agreements,credit facilities or similar obligations,and shall
mature within eighteen months after they are issued. The Refinancing Obligations may provide for
renewal,extension,or canve,,sion to permanent financing on terms approved by the Director.
Section 2.Security.
A. The Refinancing Obligations shall be payable from all legally available funds of the City,and.
the City hereby pledges its full faith and credit to pay the Refinancing Obligations.
B. The Refinancing Obligations shall be payable primarily from the assessment which secures
the Outstanding Note(the"Martin Assessment")and the proceeds of any subsequent short or
long term financing for the Martin Assessment.The City hereby pledges to the payment of the
Refinancing Obligations all amounts it receives from the Martin Assessment and all proceeds
of any subsequent short or long term financing for the Martin Assessment.Pursuant to
ORS 288.594,this pledge of the Martin Assessment and all proceeds of any subsequent short
' or long term financing for the Martin Assessment shall be valid and binding from the date of
issuance of the Refinancing Obligations. The amounts so pledged and thereafter received by
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the City shall immediately be subject to the lien of such pledge without any physical delivery
or further act,and the lien of the pledge shall be superior to all other claims and liens
whatsoever to the fullest extent permitted by ORS 288.594.
C. In addition the City covenants to use its best efforts to refinance the Refinancing Obligations
prior to their maturity date.
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Section 3.Tax-Exempt Status. The City covenants not to take any action or omit any action if the
taking or omission would cause interest paid on the Refinancing Obligations to be includable in gross
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income of the owners of the Refinancing Obligations under Section 103(a)of the Internal Revenue Code
of 1986,as amended.
Section 4.Authority of Director;Delegation. The Cij's Finance Director or the person designated
by the Finance Director to act on behalf of the City under this Resolution(the"Director")may,on behalf of
the City and without further action by the City Council:
A. Select a commercial bank or other purchaser for the Refinancing Obligations.
B. Establish the aggregate principal amount of the Refinancing Obligations,which shall not exceed
$2,100,000.
C. Establish the repayment schedule,interest rate,sale price,redemption terms,sale price and other
terms of the Refinancing Obligations and any related documents authorized by ORS 288.165,
F which may include additional covenants of the City which are intended to enhance the security of
the Refinancing Obligations.
D. Designate all or any portion of the Refinancing Obligations as"qualified tax-exempt obligations"
under Section 265 of the Code.
E. Execute and deliver the Refinancing Obligations and any related documents.
F. Take any other action in connection with the Refinancing Obligations which the Director finds is
desirable to issue the Refinancing Obligations and carry out this Resolution.
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Passed by the Council,with a quorum in attendance,this day of Apr',2000.
r,City of Tigard
ATTEST:
&O-Wvrtf
Recorder,City of Tigard
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