Resolution No. 5017 - Laserfiche WebLink

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H. ORS 280.445 requires the City Council to consider the following factors before approving issuance of economic development project revenue bonds under the Act: (1) The bond market for the types of bonds proposed for issuance. (2) The terms and conditions of the proposed issue. (3) Whether the borrower, lessee or purchaser is financially responsible and fully capable and willing to fulfill all its obligations under the loan agreement. (4) Such other relevant factors as the governing body considers necessary to protect the financial integrity of the city. I. In compliance with ORS 280.455, the City Council has considered the following: (1) The bond market for economic development project revenue bonds that are issued as recovery zone facility bonds. City staff has indicated that conditions in the bond market for these bonds are generally favorable. However, the City will not pay the bonds, so the determination of market conditions is most appropriately made by the Borrower. The Borrower has requested that the City issue the bonds. (2) The terms and conditions of the proposed bonds. The proposed bonds will be secured solely by the Project and rents and other amounts the Borrower obtains from the Project. The proposed bonds will be purchased and held by a commercial bank or similar institution and can not be sold in the public securities markets without the prior consent of the City. The proposed bonds will have terms that are acceptable to the Borrower and the bond purchaser. City staff and the City's bond counsel have indicated that these terms are typical for economic development project revenue bonds. (3) The bond purchaser will determine whether the Borrower is financially responsible and fully capable and willing to fulfill its obligations under the loan agreement. The City has no obligation to pay the bonds and makes no determination about whether the Borrower is financially responsible and fully capable and willing to fulfill all its obligations under the loan agreement. (4) Development of the Project will improve downtown Eugene. Recovery zone facility bonds will help reduce the cost of the Project. J. The City has $8 million of recovery zone facility bond volume cap available for this Project. K. Pursuant to the City ordinance establishing procedures for approving economic development project revenue bonds under the Act, the City Council has considered the benefit to the community of the project, the availability of recovery zone facility bond volume cap for the project, and the likelihood that applicant will be successful in having the recovery zone facility bonds issued by December 31, 2010. L. The City adopts this resolution to authorize the issuance of economic development project revenue bonds as recovery zone facility bonds to finance the Project.