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Resolution No. 02-29 CITY OF TIGARD,OREGON RESOLUTION NO. 02- Q Q A RESOLUTION AUTHORIZING CONTINUED INTERIM FINANCING FOR THE DARTMOUTH STREET LOCAL IMPROVEMENT DISTRICT. 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 which matures on May 1, 2002 (the Outstanding Note)pursuant to ORS 288.165; 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, Oregon Revised Statutes Chapter 223 does not allow the City to issue long term bonds to finance an assessment until the owner of the assessed property files an application to pay that assessment in installments; and, WHEREAS, the City is authorized under ORS 288.165 to refinance the Outstanding Note and other borrowings made under ORS 288.165, so long as the refinancing obligations mature as soon as the District deems practicable, but not later than eighteen months after the refinancing is obtained; and, WHEREAS, the City is authorized under ORS 271.390 to enter into loan agreements and issue notes with a term of more than eighteen month to finance or refinance real or personal property which the City Council determines is needed, and the City may also refinance the Outstanding Note and any Refinancing Obligations under ORS 271.390; and, WHEREAS, the City Council hereby determines that the local improvements in the District are needed; and, WHEREAS, the City must refinance the Outstanding Note by May 1, 2002 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,BE IT RESOLVED by the Tigard City Council that: Section 1. Authorization, The City is hereby authorized to refinance the Outstanding Note and any obligations authorized by this resolution by issuing one or more series of obligations (the "Refinancing Obligations")pursuant to ORS 271.390 or ORS 288.165. Each series of Refinancing Obligations shall comply with the limitations of the statutes under which it is issued. RESOLUTION NO. 02-,- (( Pagc 1 Section 2. Security. A. Each series of 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 each series of Refinancing Obligations. B. 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 pledge all or any portion of 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 to pay any series of Refinancing Obligations. 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 any series of 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 Director may, on behalf of the City and without further action by the City Council: A. Determine whether each series of Refinancing Obligations will be issued under ORS 271.390 or under ORS 288.165. B. Select a commercial bank or other purchaser for each series of Refinancing Obligations. C. Establish the aggregate principal amount of each series of Refinancing Obligations, which shall not exceed the amount which the Director reasonably estimates will be required to pay the obligations which are refinanced and to pay costs of issuing that series of Refinancing Obligations. D. Establish the repayment schedule, interest rate, sale price, redemption terms, sale price and other terms of each series of Refinancing Obligations and any related documents. E. Enter into covenants which are intended to enhance the security of the Refinancing Obligations. F. Designate all or any portion of each series of Refinancing Obligations as"qualified tax-exempt obligations"under Section 265 of the Code. G. Execute and deliver one or more series of Refinancing Obligations and any related documents. K Pay the Outstanding Note and any Refinancing Obligations which are financed with Refinancing Obligations, and 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. RESOLUTION NO. 02- �{i Page 2 Section 5. Effective Date. This Resolution shall take effect on April 24, 2002 f-L PASSED: This 3 day of, - a 2002. lyor6 City of and ATTEST: r; City Recorder-City of Tigard RESOLUTION NO. 02,E 1 Pagc 3