Resolution No. 98-56 RESOLUTION NO.98-_Z9
WW A RESOLUTION AUTHORIZING INTERIM FINANCING FOR THE DARTMOUTH STREET LOCAL
IMPROVEMENT DISTRICT IN A MAXIMUM AMOUNT OF$1,950,000.
WHEREAS,the City has previously authorized formation of the Dartmouth Street Local
Improvement District(the"District")to finance local improvements in the District(the"Improvements"),
and has issued its Limited Tax General Obligation Bond Anticipation Notes,Series 1997(the"Series 1997
Notes")which mature.on December 1,1998;and,
WHEREAS,final assessments have been levied against benefited properties to finance the
Improvements,and one of the owners of property assessed for the improvements is disputing that
assessment and has not filed an application to pay that assessment in installments;and,
WHEREAS,Oregon law prohibits the City from issuing bonds to finance an assessment until
owner cf the assessed property files an application to pay that assessment in installments;and,
WHEREAS,it is desirable to refinance the portion of the Series 1997 Notes which are allocable to
the disputed assessment(the"'.Martin Assessment")with additional notes;and,
WHEREAS,U.S.Bank National Association(the"Bank")has proposed to provide the additional
interim financing to the City,the City's financial advisor has reviewed the Bank's proposal and
recommended that the city accept that proposal,and the City Council finds that a negotiated sale of the
interim financing to the Bank is desirable;
NOW,THEREFORE,THE CITY OF TIGARD RESOLVES AS FOLLOWS:
AdIlk Section 1.Authorization. The City is hereby authorized to obtain interim financing through the
Bank to refinance the portion of the Series 1997 Note that is allocable to the Martin Assessment pursuant
to ORS 288.165. The refinancing may be in the form of a note or credit facility(the"Series 1998
Obligations).The Series 1998 Obligations shall be in an aggregate principal amount of no more than
$1,950,000,shall mature not later than eighteen months after they are issued,and may provide for
renewal,extension,or conversion to permanent financing on terms approved by the City's Finance
Director or the person designated by the Finance Director to act on behalf of the City under this Resolution
(the"Director').
Section 2.Security. The Series 1998 Obligations shall be full faith and credit obligations of the
City which are payable primarily from the Martin Assessment and the proceeds of any subsequent short or
long term financing for the Martin Assessment.The City covenants to use its best efforts to refinance the
Se,-ies 1998 Obligations or secure permanent financing which will be available to permit timely payment of
the Series 1998 Obligations,but the City shall not be obligated to pledge its general fund to any
permanent financing. In addition,the City pledges to the payment of the Series 1998 Obligations all
amounts it receives from the Martin Assessment and all proceeds of any subsequent short or long term
financing for the Martin Assessment.
Section 3.Form and Execution of Series 1998 Obligations. The Series 1998 Obligations shall be
in a form approved by the Director.The Series 1998 Obligations shall be executed on behalf of the City
with the manual or facsimile signature of the Director.
Section 4.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 Series 1998 Obligations to be includable in gross
income of the owners of the Series 998 Obligations under Section 103(a)of the Internal Revenua Code
of 1986,as amended(the"Code").
Section 5.Authority of Director;Delegation. The Director may,on behalf of the City and without
further action by the City Council:
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A. Establish the final principal amounts,maturity schedules,interest rates,sale prices,
redemption terms,payment terms and dates,and other terms of the Series 1998 Obligations,and
negotiate the terms of,and enter into,agreements with the Bank which specify the terms under
which the Bank will purchase the Series 1998 Obligations.
B. Negotiate the terms of,and execute documents comprising the Series 1998 Obligations,which
may contain covenants for the protection of the Owners of the Series?:98 Obligations and shall
describe the City's obligations relating to the Series 1998 Obligations;
C. Designate the Series 1998 Obligatiuns as"qualified tax-exempt obligations"under Section 265
of the Code;and,
D. Execute,issue,sell and deliver the Series 1998 Obligations and execute any documents and
take any other action in connection with the Series 1998 Obligations or the Improvements which
the Director finds is desirable to obtain interim financing for the Martin Assessment and carry out
this Resolution. - ' I
Passed by the Council,with a quorum in attendance,this 2fday of ;T998.
ity of Tigard
ATTEST:
(I i
VePucy City Recorder — C of Tiger
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