HomeMy WebLinkAboutResolution 08-42 09/15/2008
RESOLUTION NO. 08-42
A RESOLUTION OF THE CITY OF SPRINGFIELD, LANE
COUNTY, OREGON APPROVING A BORROWING TO
FINANCE A FIRE STATION.
WHEREAS, the City Council of the City of Springfield, Lane County, Oregon (the
"City") is authorized by Oregon Revised Statutes Section 271.390 to enter into financing
agreements to fmance or refmance real or personal property which the City Council determines is
needed; and
WHEREAS, the City has identified a need for the design, construction, and equipping of
a fire station (the "Projects"); and
WHEREAS, the City Council hereby determines that the Projects are needed, and that it
is desirable to finance the Projects pursuant to ORS 271.390; and
WHEREAS, the City previously issued a request for proposals to commercial banks to
provide financing for the Projects. Based on the terms and conditions provided in its proposal,
the City Council selected Bank of America, N.A. to provide the fmancing for the Projects;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Springfield, Oregon as follows:
Section 1. Loan Agreement Authorized.
The City is hereby authorized to enter into a fmancing or loan agreement in an aggregate
principal amount of not more than $1,800,000 (the "Loan Agreement") pursuant to ORS
271.390. Loan proceeds shall be used to fmance the Projects and to pay costs associated with the
Loan Agreement. The City Manager or the Finance Director of the City (each of whom is
referred to herein as a "City Official") are hereby authorized, on behalf of the City and without
further action by the City Council, to:
(1) Determine the final principal amount, interest rates, payment dates, prepayment rights and
all other terms of the financing;
(2) Negotiate, execute and deliver a note to evidence amounts due under the Loan
Agreement;
. (3) Negotiate and execute the Loan Agreement with Bank of America, N.A.. Subject to the
limitations of this resolution, the Loan Agreement may be in such form and contain such
. terms as the City Official may approve;
(4) Covenant for the benefit of the lender to comply with all provisions of the Internal
Revenue Code of 19~6, as amended (the "Code") which are required for the interest paid
Resolution No.08-4I20an Resolution (Fire Station)
Page 1
under the Loan Agreement to be excluded from gross income for federal income tax
purposes;
(5) Appoint and enter into agreements with a financial advisor and other service providers for
the Loan Agreement; and
(6) Execute and deliver any other certificates or documents and take any other actions which
the City Official determines are desirable to carry out this resolution.
Section 2. Security.
The Loan Agreement shall constitute an unconditional obligation of the City, which is
payable from all legally available funds of the City. The City Official may pledge the City's full
faith and credit and taxing power within the limitations of Sections 11 and 11 b of Article XI of
the Oregon Constitution, and any and all of the City's legally available funds, to make the
payments due under the Loan Agreement.
Section 3. Effective Date. This resolution shall take effect on its date of adoption.
Adopted by the City Council of the City of Springfield at a regular meeting held on the
15th day of September, 2008.
Ayes: 5
Nays: 0
Absent: 1
City of Springfield, Lane County, Oregon
\ ~
Attest:
CityR~~
08-42
Resolution No. _ Loan Resolution (Fire ~tation)
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