HomeMy WebLinkAboutResolution No. 4560
RESOLUTION NO. 4560
A RESOLUTION AUTHORIZING THE FINANCING OF THE
ATRIUM FULL FAITH AND CREDIT OBLIGATIONS, SERIES
1998 PURSUANT TO ORS 271.390.
The City Council of the City of Eugene, Oregon (the "City") finds as follows:
A. The City is authorized by ORS 271.390 to enter into financing agreements
to finance any real or personal property that the City Council determines is needed; and
B. The City has an option to purchase the Atrium Building, related fixtures
and equipment, and the land on which the Atrium Building is located (collectively the
AAtrium Property@ ).
C. Purchase of the Atrium Property will benefit the City, and the purchase
and financing of the Atrium Property is needed.
D. The City adopts this resolution to authorize a financing agreement for the
Atrium Property, an escrow agreement which will provide for the issuance of certificates
of participation in the payment obligations of the City under the financing agreement, and
related documents.
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 is hereby authorized to obtain financing for the Atrium Property
under ORS 271.390. The principal amount of the financing shall not exceed Two Million
Four Hundred Thousand Dollars ($2,400,000). Proceeds of the financing shall be used
only to pay costs of the Atrium Property, to pay costs of financing the Atrium Property,
and to fund reserves for the Atrium Property.
Section 2. Delegation
The City Manager or the person designated in writing by the City Manager to
act under this Resolution (the ACity Official@) may, on behalf of the City and without
further action by the City Council:
1.1 Negotiate one or more loan agreements or other financing agreements (the
AFinancing Agreements@) for the Atrium Property in an aggregate principal amount of
not more than $2,400,000;
1.2 Pledge the City=s full faith and credit and all or any portion of the City=s legally
available revenues, taxes and other funds to pay amounts due under the Financing
Agreements;
1.3 Covenant to budget and appropriate in each fiscal year, in accordance with law,
sums sufficient to pay when due the amounts owing under the Financing Agreements;
1.4 Covenant to use all taxing power available to the City under the law which is
necessary to generate funds sufficient to permit the City to make Lease Payments, subject
only to the limitations provided in Article XI of the Oregon Constitution;
1.5 Secure the amounts due under the Financing Agreements with a mortgage or other
security interest on the Atrium Property;
1.6 Select one or more escrow agents, and negotiate one or more escrow agreements or
similar documents authorizing the escrow agent to issue Atrium Full Faith and Credit
Obligations, Series 1998 (the "Obligations") which represent the right to receive
payments due from the City under one or more of the Financing Agreements;
1.7 Provide that the Obligations will be issued in one or more series;
1.8 Provide that any series of Obligations and their related Financing Agreements may
be taxable Obligations which bear interest which is includable in gross income under the
Internal Revenue Code of 1986, as amended (the ACode@);
1.9 Provide that any series of Obligations and their related Financing Agreements may
be tax-exempt obligations which bear interest which is excludable from gross income
under the Code, and covenant for the benefit of the owners of the tax-exempt Obligations
to comply with all provisions of the Code which are required for interest on the tax-
exempt Obligations to be excluded from gross income under the Code;
1.10 Participate in the preparation and distribution of preliminary and final official
statements or other disclosure documents for the Obligations;
1.11 Establish the final principal amounts, payment schedules, interest rates, prepayment
rights and other terms of the Financing Agreements and the Obligations, consistent with
the limitations established by this Resolution, and award the sale of the Obligations by
competitive bid or negotiated sale; and
1.12 Execute and deliver the Financing Agreements and escrow agreements authorized
by this resolution, and execute any other certificates or other documents and take any
other action which is desirable in order to finance the Atrium Property as contemplated
by this resolution.
Section 3. Reimbursement.
The City hereby declares its intention to reimburse itself with proceeds of the
Financing Agreements and the Obligations for any costs of the Atrium Property which
the City pays prior to issuance of the Obligations.
ADOPTED by the City Council of the City of Eugene, Lane County, Oregon
on the 20th day of April, 1998.
City of Eugene
Lane County, Oregon
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