HomeMy WebLinkAboutResolution SEDA 2016-07 07/18/2016 SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
RESOLUTION NO. SEDA2016-07
A RESOLUTION AUTHORIZING INDEBTEDNESS FOR CAPITAL PROJECTS
DESCRIBED IN THE URBAN RENEWAL PLAN FOR THE GLENWOOD URBAN
RENEWAL AREA.
WHEREAS, the Springfield Economic Development SEDA ("SEDA") is
authorized to enter into borrowings that are payable from the tax increment revenues of
the Glenwood Urban Renewal Area (the "Area"); and
WHEREAS, SEDA desires to borrow up to $2,000,000 to finance property
acquisitions that are expected to be used for development by the public or private sector
(the "Projects") that are located in the Area and are described in the urban renewal plan
for the Area; and
WHEREAS, the Projects or portions of the Projects may be owned by the City or
SEDA at the time of financing; and
WHEREAS, the City has approved a maximum indebtedness for the Area of
$32,860,000 and SEDA has the capacity and is willing to use $2,000,000 of that
maximum indebtedness to finance the Projects; and
WHEREAS, SEDA pays certain amounts due under an Intergovernmental
Agreement between SEDA and the City of Springfield (the "IGA") with tax increment
revenues of the Area; and
WHEREAS, SEDA desires to issue the borrowings authorized by this resolution
with a lien on the tax increment revenues of the Area that is superior to SEDA's
obligation to make payments under the IGA.
NOW THEREFORE BE IT RESOLVED, by the Board of Directors of SEDA, an
Urban Renewal Agency in the State of Oregon, as follows:
Section 1. Definitions.
Unless the context clearly requires otherwise capitalized terms that are used in this
Resolution shall have the following meanings:
"2016 Borrowing" means SEDA's Urban Renewal Borrowing (Glenwood Urban Renewal
Area), Series 2016 that is authorized by Section 2 of this Resolution.
"Area" means SEDA's Glenwood Urban Renewal Area.
"City" means the City of Springfield, Oregon.
"SEDA" means the Springfield Economic Development SEDA.
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"SEDA Official" means the City Manager, the Assistant City Manager, the Finance
Director or the person designated by the City Manager to act on behalf of SEDA under
this Resolution.
Section 2. The 2016 Borrowing.
2.1 Authorization. SEDA hereby authorizes the sale and delivery of the 2016 Borrowing
in a principal amount not to exceed two million dollars ($2,000,000) pursuant to the
applicable provisions of ORS Chapters 287A and 457. The proceeds of the 2016
Borrowing shall be used to finance the Projects, to fund a debt service reserve, if
necessary, and to pay costs of issuing the 2016 Borrowing.
2.2 Delegation. A SEDA Official may, on behalf of SEDA and without further action by
the Board of Directors:
(A) Select a commercial bank or other lender with which to negotiate, execute
and deliver the 2016 Borrowing, purchase agreement and related documents.
Subject to the limitations of this Resolution, the 2016 Borrowing, purchase
agreement and related documents may be in such form and contain such terms
(including but not limited to covenants, events of and remedies for default and
financial reporting requirements) as a SEDA Official may approve.
(B) Prepare and execute a master borrowing declaration that describes the
O terms under which the 2016 Borrowing and future borrowings on parity with the
2016 Borrowing ("Parity Borrowings") may be issued, the covenants that SEDA
makes with the owners of the Parity Borrowings, the form of the 2016 Borrowing,
and the administrative provisions relating to the 2016 Borrowing. The master
borrowing declaration shall be provided to the Board of Directors before
execution by a SEDA Official.
(C) Make covenants for the benefit of the owner of the 2016 Borrowing, including
but not limited to covenants that: (i) require SEDA not to reduce collection of tax
increment levels below specified amounts; (ii) prohibit borrowings that have a lien
on the tax increment revenues of the Area that is superior to the lien that secures
the 2016 Borrowing; (iii) limit the amount of borrowings that may be done with
lien on the tax increment revenues of the Area that is equal to the lien securing
the 2016 Borrowing; (iv) restrict the deposit and application of the tax increment
revenues of the Area to insure timely payment of the 2016 Borrowing; and (v)
limit SEDA's ability to remove property from the Area.
(D) Enter into covenants to maintain the tax-exempt status of the 2016
Borrowing under the Internal Revenue Code of 1986, as amended (the "Code")
or issue the 2016 Borrowing as a taxable borrowing.
(E) Enter into additional covenants for the benefit of the purchaser of the 2016
Borrowing which a SEDA Official determines are desirable to sell the 2016
QBorrowing on favorable terms.
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RESOLUTION NO. SEDA2016-07
(F) Establish the final principal amounts, maturity schedules, interest rates, sale
prices, payment and prepayment terms and dates of the 2016 Borrowing.
((1) Pledge the tax increment revenues of the Area and the proceeds of the 2016
Borrowing to secure the 2016 Borrowing.
(H) Issue, sell and deliver the 2016 Borrowing.
(I) Amend the IGA to make clear the 2016 Borrowing and Parity Borrowings are
issued with a superior lien.
(1) Execute any documents and take any other action which a SEDA Official
finds is desirable to carry out this Resolution.
Adopted by the Board of Directors of SEDA, an Urban Renewal Agency of the City of
Springfield by a vote of 7 for and 0 against this 2 d y of July, 2016.
(1 absent
THIS RESOLUTION is effective immediately upon adoption.
-
Sean VanGordon, Chair
Springfield Economic Development
Agency
ATTEST:
Amy Sowa, City Recorder
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RESOLUTION NO. SEDA2016-07