HomeMy WebLinkAboutResolution SEDA2022-04 09/26/2022 SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY
RESOLUTION NO. SEDA2022-04
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 $5,000,000 to finance urban renewal projects
in the Area; 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 $5,000,000 of that maximum indebtedness to
finance urban renewal projects in the Area; and
WHEREAS, in 2016 SEDA entered into a borrowing in the original amount of
$2,000,000 to finance urban renewal projects in the Area (the"2016 Borrowing"); and
WHEREAS, in 2018 SEDA entered into a borrowing in the original amount of
$2,729,248.49 to finance urban renewal projects in the Area (the "2018 Borrowing", and
together with the 2016 Borrowing, the "Refundable Borrowings"); and
WHEREAS, the Agency has determined that it is in the best interest of the Agency to
refund all or any portion of the Refundable Borrowings; and
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:
"Area" means SEDA's Glenwood Urban Renewal Area.
"City" means the City of Springfield, Oregon.
"Projects" means projects described in SEDA's Glenwood Urban Renewal Plan, as it has been
and may be amended pursuant to its terms.
"SEDA" means the Springfield Economic Development Agency.
"SEDA Official" means the City Manager, the Finance Director or the person designated by the
City Manager to act on behalf of SEDA under this Resolution.
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Section 2. The New Money and Refunding Borrowing.
2.1 Authorization.
(A) New Money Authorization. SEDA hereby authorizes the sale and delivery of a
borrowing in a principal amount not to exceed five million dollars ($5,000,000)
pursuant to the applicable provisions of ORS Chapters 287A and 457 (the"New
Money Borrowing"). The proceeds of the New Money Borrowing shall be used to
finance Projects, to fund a debt service reserve, if necessary, and to pay estimated
costs of issuing the New Money Borrowing.
(B) Refunding Authorization. SEDA hereby authorizes the sale and delivery of a
borrowing (the"Refunding Borrowing" and together with the New Money
Borrowing, the "Borrowings")for the Area in a principal amount sufficient to
refund the Refundable Borrowings that are being refunded, plus an amount
sufficient to fund a debt service reserve, if necessary, and to pay estimated costs of
issuing the Refunding Borrowing, pursuant to the applicable provisions of ORS
Chapters 287A and 457.
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 Borrowings, purchase agreement and related documents. Subject to the limitations of
this Resolution, the Borrowings, 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
and the SEDA Official may determine whether to finance the Projects and refinance the
Refundable Borrowings under one or multiple series of Borrowings.
(B) Provide that the Borrowings be issued under the existing Master Borrowing
Declaration for the Area dated October 12, 2016 ("the Master Bond Declaration") or
amend that document or enter into a new first lien master borrowing declaration.
(C) Provide that the Borrowings will be secured by a lien on the tax increment revenues of
the Area that is subordinate to the lien that secures Senior Lien Borrowings under the
Master Bond Declaration and prepare and execute a subordinate master borrowing
declaration that describes the terms under which the Borrowings and future subordinate
lien borrowings ("Subordinate Borrowings") may be issued.
(D) Make covenants for the benefit of the owner of the Borrowings, 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 Borrowings; (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 Borrowings; (iv)restrict the deposit and
application of the tax increment revenues of the Area to insure timely payment of the
Borrowings; and (v)limit SEDA's ability to remove property from the Area.
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3721979.3 046280 RSIND
SEDA Resolution No. SEDA2022-04
(E) Enter into covenants to maintain the tax-exempt status of the Borrowings under the
Internal Revenue Code of 1986, as amended (the "Code") or issue the Borrowings as
taxable borrowings.
(F) Enter into additional covenants for the benefit of the purchasers of the Borrowings
which a SEDA Official determines are desirable to sell the Borrowings on favorable terms.
(G) Establish the final principal amounts, maturity schedules, interest rates, and other
terms of the Borrowings.
(H) Pledge the tax increment revenues of the Area and the proceeds of the Borrowings to
secure the Borrowings.
(I) Issue, sell and deliver the Borrowings.
(J) Amend the existing Intergovernmental Agreement between the City and Agency
related to the Area to, if necessary, subordinate the lien on tax increment revenues of the
Area that secures that agreement and to facilitate the issuance of the Borrowings on
favorable terms.
(K) Determine what portion of the Refundable Borrowings to refund; prepay the
Refundable Borrowings being refunded and take any other action necessary or desirable to
accomplish the prepayment of the Refundable Borrowings.
(L) 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 26th day of September, 2022. absent- Woodrow)
THIS RESOLUTION is effective immediately upon adoption.
ATTEST:
REVIEWED&APPROVED
AS TO FORM
— City Recorder Mca4"
3�-ca�— ,tH
DATE: September 2,2022
SPRINGFIELD CITY ATTORNEY'S OFFICE
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SEDA Resolution No. SEDA2022-04