HomeMy WebLinkAboutResolution No. 4509
RESOLUTION NO. 4$!2J
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF THE
BROADWAY GARAGES LIMITED TAX BONDS, SERIES 1997, IN AN
AMOUNT OF NOT MORE THAN $7,700,000.
THE CITY COUNCIL OF THE CITY OF EUGENE, OREGON (THE "CITY")
FINDS AS FOLLOWS:
A. The City is authorized by ORS Chapter 223 to issue general obligation
bonds to finance parking improvements without a vote of the people. However, Article XI,
Section 11 b of the Oregon Constitution provides that general obligation bonds may not be issued
without a vote of the people. ORS 288. 155(2)(a) authorizes the City to issue limited tax bonds
without a vote of the people when statutes authorize general obligation bonds to be issued without
a vote of the people. The City is therefore authorized to issue limited tax bonds to finance parking
improvements.
B. The developer will sign a development agreement with the City relating to
the Broadway and Charnelton Parking Garages no later than 30 days prior to issuing the bonds,
and will meet its requirements under that agreement, including paying the City $300,000.
C. It is desirable to issue limited tax bonds to finance the Broadway and
Charnelton Parking Garages and to pay costs of issuance of issuing the limited tax bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF EUGENE, a municipal corporation of the State of Oregon, as follows:
Section 1. Authorization.
The City may issue its Broadway Garages Limited Tax Bonds, Series 1997 (the "Bonds") to
finance the costs of acquiring, constructing, equipping, furnishing and improving the Broadway
and Charnelton Parking Garages and to pay costs of issuing the Bonds. The Bonds shall be issued
in a principal amount of not more than $7,700,000, and shall be sold at a true interest cost of not
more than ten percent per annum. The City Manager or the person designated in writing by the
City Manager to act under this Resolution (the "City Official") may (if the conditions described in
Section 2, below, have been satisfied), on behalf of the City and without further action by the City
Council:
1.1. participate in the preparation of, authorize the distribution of, and deem final the
preliminary and final official statements and any other disclosure documents for the Bonds;
1.2. Determine, on the advice of bond counsel, whether Bond interest will be includable in, or
excludable from, gross income under the Internal Revenue Code of 1986, as amended;
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1.3. Pledge all or any portion of the revenues of the facilities which are financed with the
Bonds to pay the Bonds, and grant mortgages on those facilities to secure the Bonds;
1.4. establish the final principal amount, maturity schedule, interest rates, redemption terms,
payment terms and dates, and other terms of the Bonds, and the terms under which the Bonds
are offered for sale;
1.5. appoint a paying agent for the Bonds, or have the City act as paying agent;
1.6. establish the terms under which the Bonds will be sold, and either: sell the Bonds by
competitive bid by publishing notices of sale, or summaries, for the Bonds and accepting the
most favorable bid; or, sell the Bonds at a negotiated sale by selecting one or more
underwriters, negotiating the terms under which the underwriters will purchase the Bonds, and
entering into a bond purchase agreement with the underwriters;
1.7. issue, sell and deliver the Bonds to their purchasers without further action by the City
Council;
1.8. enter into an agreement to provide continuing financial disclosure for the benefit of the
owners of the Bonds in accordance with the applicable rules of the United States Securities and
Exchange Commission;
1.9. apply for and purchase municipal bond insurance or other obtain other forms of credit
enhancement for the Bonds, enter into agreements with the providers of credit enhancement,
and execute and deliver related documents; and
1.10. prepare, execute and deliver any other documents and take any action, including the
appointment of a paying agent, which is reasonably required to issue, sell and deliver the
Bonds in accordance with this Resolution.
Section 2. Conditions.
The City Official shall not circulate disclosure documents for the Bonds or sell, issue, or deliver
the Bonds unless and until:
2.1 The developer of the Broadway and Charnelton parking garages has deposited with the
City not less than $300,000 in the form of cash; and,
2.2 The City has received construction bids indicating that City will be able to pay the costs of
the Broadway and Charnelton parking garages from the Bond proceeds and other amounts
available to the City.
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Section 3. Security.
3.1. The City hereby pledges its full faith and credit to pay the Bonds. The City shall pay the
Bonds when due from any legally available source of funds.
3.2 Pursuant to ORS 288.155(4), and if permitted by the laws in effect on the date the Bonds are
issued, the City shall, subject only to the limitations of Section 11 b(1), Article XI of the Oregon
Constitution, calculate, assess, levy and collect each fiscal year a direct ad valorem tax on all
taxable property within the City boundaries. The amount of the tax shall be sufficient, with other
available funds, to pay all principal of and interest on the Bonds which are due and payable in that
year.
3.3. If the City Official pledges any revenues to secure the Bonds pursuant to Section 1.3 of this
resolution, those revenues shall be applied to pay the Bonds in the manner stated in the closing
documents for the Bonds.
Section 4. Bond Form.
The Bonds shall be in registered form substantially as shown in Exhibit A to this resolution, with
such changes as the City Official may approve, and may be in book entry form.
Section 5. Defeasance.
The City may defease the Bonds by setting aside, with a duly appointed escrow agent, in a special
escrow account irrevocably pledged to the payment of the Bonds to be defeased, cash or direct
obligations of the United States in an amount which, in the opinion of a certified public accountant
satisfactory to the escrow agent, without reinvestment, is at least equal to the principal amount of
the Bonds to be defeased, plus interest which will accrue thereon until maturity or any earlier date
for which the issuer has given irrevocable instructions for redemption. Such Bonds shall be paid
hereunder, and shall cease to be entitled to any lien, benefit or security under this Bond Resolution
except the right to receive payment from such special escrow account; such Bonds shall not for
any purpose of this Bond Resolution be deemed outstanding.
The foregoing Resolution adopted thi~ ~ay O~~996.
City of Eugene
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EXHIBIT A
[FORM OF BOND]
No. R-BondNumber
United States of America
State of Oregon
County of Lane
City of Eugene
Broadway Garages Limited Tax Bond
Series 1997
$PrincipalAmtNumber
Dated Date:
Interest Rate Per Annum: %
Maturity Date:
CUSIP Number:
Registered Owner:
Principal Amount:
THE CITY OF EUGENE, in the County of Lane, State of Oregon (the "City"), for value received,
acknowledges itself indebted and hereby promises to pay to the Registered Owner hereof, or registered assigns, the
above Principal Amount on the above Maturity Date, together with interest thereon from the date hereof at the Interest
Rate Per Annum indicated above. Interest is payable semiannually on the fIrst day of _ and on the fIrst day of
_ in each year until maturity or prior redemption, commencing _' Payment of each installment of principal
or interest shall be made to the Registered Owner hereof whose name appears on the registration books of the City
maintained by as of the close of business on the fIfteenth day of the calendar month immediately preceding
the applicable interest payment date.
This Bond is one of an authorized issue of Bonds of the City entitled Broadway Garages Limited
Tax Bonds, Series 1997 in the aggregate principal amount of $_ (the "Bonds"), and is issued by the City to
fInance the Broadway and Chamelton Parking Garages pursuant to City Resolution No. _ adopted _, 1996 (the
" Resolution") and Oregon Revised Statutes Sections 223.805 to 223.845 and ORS 288.155, and in full and strict
accordance and compliance with all of the provisions of the Constitution and Statutes of the State of Oregon and the
Charter of the City.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all conditions, acts, and
things required to exist, to happen, and to be performed precedent to and in the issuance of this Bond have existed,
have happened, and have been performed in due time, form, and manner as required by the Constitution and Statutes
of the State of Oregon and the Charter of the City; that the issue of which this Bond is a part, and all other obligations
of such City, are within every debt limitation and other limits prescribed by such Constitution, Statutes and Charter;
and that the City Council has covenanted to levy annually a direct ad valorem tax upon all taxable property within the
City in an amount suffIcient, with other available funds, to pay the interest on and the principal of the Bonds of such
issue as they become due and payable; provided that the amount of such tax shall not exceed the amount permitted
under Section llb(l), Article XI of the Oregon Constitution.
IN WITNESS WHEREOF, the City Manager of the City of Eugene, in Lane County, Oregon has
caused this Bond to be executed by the facsimile signature of its Finance OffIcer as of the date indicated above.
City of Eugene, Oregon
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117
Warren G. Wong, Finance OffIcer
Page 1 - Exhibit A (Form of Bond)
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto
(Please insert social security or other
identifying number of assignee)
this Bond and does hereby irrevocably constitute and appoint
to transfer this Bond on the books kept for registration thereof with the full power of substitution in the premises.
as attorney
Dated:
NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears upon the face of this Bond in
every particular, without alteration or enlargement or any change whatever.
NOTICE: Signature(s) must be guaranteed by a member of the New York
Stock Exchange or a commercial bank or trust company
Signature Guaranteed
(Bank, Trust Company or Brokerage Firm)
Authorized Officer
The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations.
TEN COM -- tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship
and not as tenants in common
OREGON CUSTODIANS use the following
CUST UL OREG
as custodian for (name of minor)
OR UNlF TRANS MIN ACT
under the Oregon Uniform Transfer to Minors Act
MIN
Additional abbreviations may also be used though not in the list above.
Page 1- Exhibit A (Form of Bond)
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