Resolution No. 01-18 CITY OF TIGARD,OREGON
RESOLUTION NO.01-/8
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$1,948,177.98
Full Faith and Credit Local Improvement Bond Anticipation Note,Series 2000 which matures on May
1,206i (the Outstanding Note);and,
WHEREAS,ORS Chapter 223 prohibits the City from issuing long term,local improvement district
bonds to finance an assessment until the owner of the assessed property files an application to pay that
assessment in installments;and,
WHEREAS,the final assessment securing the Outstanding Note is still in dispute and the property
owner has not filed an application to pay the assessment in installments;and,
WHEREAS,the City is authorized by ORS 288.165 to issue obligations to refinance the Outstanding
Note;and,
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WHEREAS,the City must refinance the Outstanding Note and accrued interest due by May 1,2001 and
it will save time if the City negotiates the sale of the refinancing obligations,and the City Council finds
that a negotiated sale of the refunding obligations is desirable;
NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that:
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 conversion 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.
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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
ai farm 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
3 any subsequent short or long term financing for the Martin Assessment.Pursuant to
a 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 the
RESOLUTION NO.01-1$
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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.
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
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 City'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,
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.
PASSED: This52fday y�2001.
Mayer-CityTigard
i Council Pcesident
ATTEST:
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City Recorder-City of Tigard
RESOLUTION NO.01-1 8
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