HomeMy WebLinkAboutOrdinance 5752 07/11/1994
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ORDINANCE NO. 5752
(Special)
ORDINANCE OF THE CITY OF SPRINGFIELD AUTHORIZING A
LOAN FROM THE SPECIAL PUBLIC WORKS FUND BY ENTERING
INTO A LOAN CONTRACT WITH THE OREGON ECONOMIC
DEVELOPMENT DEPARTMENT
The City of Springfield finds:
A. The Municipality is a "municipality" within the meaning
of Oregon Revised Statutes 285.700(1).
B. Oregon Revised Statutes 285.700 through 285.750 (the
"Act") authorizes any municipality to file an application with
the Oregon Economic Development Department ("the Department") to
obtain financial assistance from the Special Public Works Fund.
C. The Municipality has filed an application with the
Department to obtain financial assistance for an "infrastructure
project" within the meaning of the Act.
D. The Department has approved the Municipality's
application for financial assistance from the Special Public
Works Fund pursuant to the Act.
E. The Municipality is required, as a prerequisite to the
receipt of financial assistance from the Department, to enter
into a Financial Assistance Award Contract and a Loan Agreement
with the Department in substantially the form attached hereto as
Exhibits "A" and "B".
F. The project described in Exhibit "A" to the Loan
Agreement (the "Project") is an "infrastructure project" within
the meaning of the Act which is needed by and is in the public
interest of the Municipality.
G. Notice relating to the Municipality's consideration of
the adoption of this Ordinance was published at least once in a
newspaper of general circulation within the City of Springfield.
Such notice was published at least 14 days in advance of the
adoption of this Ordinance.
NOW THEREFORE, THE CITY OF SPRINGFIELD DOES ORDAIN as
follows:
1. Loan Authorized. The City Manager is hereby authorized
to execute the Financial Assistance Award Contract, Loan
Agreement, the Promissory Note attached as Exhibit "F" to the
Loan Agreement (the "Financing Documents") and such other
documents as may be required to obtain financial assistance
including a loan from the Department on the condition that the
principal amount of the loan from the Department to the
Municipality is not in excess of $952,309.00 and the interest
rate on such loan is not in excess of 6.5 percent. The proceeds
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rate on such loan is not in excess of 6.5% percent. The proceeds
of the loan from the Department shall be applied solely to the
"Costs of the Project" as such term is defined in the Loan
Agreement.
2. Security. Amounts payable by the Municipality shall be
payable from the sources described in section 3.09 of the Loan
Agreement and Oregon Revised Statutes 285.723(2) which include:
a. any sources of funds that are legally available to the
Municipality,
b. the revenues, if any, of the Project, including special
assessment revenues, if any, and
c. the Municipality's general fund including the general
revenues of the Municipality, other funds which may be available
for such purpose and a pledge of the Municipality's taxing power
within the restrictions of Article XI, section 11 and 11b of the
Constitution of the State of Oregon. The obligation of the
Municipality to make payments pursuant to the Loan Agreement is
full faith and credit obligation of the Municipality that is
subject to annual appropriation and is subject to the
restrictions of Article XI section 10 of the constitution of the
State of Oregon.
3. Additional Documents. The City Manager is hereby
authorized to enter into any agreements and to execute any
documents or certificates which may be required to obtain
financial assistance from the Department for the Project pursuant
to the Financial Assistance Award Contract and the Loan
Agreement.
4. Tax-Exempt Status. The Municipality covenants not to
take any action or omit to take any action if the taking or
omission would cause interest paid by the Municipality pursuant
to the Loan Agreement not to qualify for the exclusion from gross
income provided by section 103(a) of the Internal Revenue Code of
1986, as amended. The City Manager of the Municipality may enter
into covenants on behalf of the Municipality to protect the tax-
exempt status of the interest paid by the Municipality pursuant
to the Loan Agreement and may execute any Tax Certificate,
Internal Revenue Service forms or other documents as shall be
required by the Department on their bond counsel to protect the
tax-exempt status of such interest.
5. Reimbursement Bonds. The Municipality may reimburse
expenditures for the project with amounts received from the
Department pursuant tot he Financing Documents. Additionally,
the Municipality understands that the Department may fund or
reimburse itself for the funding of amounts paid to the
Municipality pursuant to the Financing Documents with the
proceeds of bonds issued by the State of Oregon pursuant to the
Act. This Ordinance shall constitute "official intent" within
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the meaning of section 1.150-2 of the Income Tax Regulations
promulgated by the united states Department of the Treasury with
respect to the funding or the reimbursement for the funding of
the costs of the Project with the proceeds of the Municipality's
loan pursuant to the Financing Documents and with the proceeds of
any bonds issued by the State of Oregon pursuant to the Act.
6. Declaration of Emergency. The Governing Body declares
than an emergency exists in order that there be no delay in
financing the Project as provided in this Ordinance. Therefore,
this Ordinance shall be in force and effect from and after
passage by the Governing Body.
DATED this 11th day of
July
, 1994.
CITY OF SPRINGFIELD
Adopted by a vote Of 4 for and 0 against.
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OFF~CE cr: env ATTORNEY
CITY C. ::.:2';:1\;\J3FIELD