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HomeMy WebLinkAbout2000-11-21; City Council; Resolution 2000-3451’ 1: 1: 1L 1: 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2000-345 A RESOLUTION DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY, AND DIRECTING CERTAIN ACTIONS WHEREAS, the City proposes to undertake the project referenced below, to enter into a long term financing lease, which may, if financially advantageous to the City, be participated out through Certificates of Participation (in either case, the “Obligations”) to finance such project and use a portion of the proceeds of the Obligations to reimburse expenditures made for the project prior to the issuance of the Obligations; and WHEREAS, United States Income Tax Regulations section 1.150- 2 provides generally that proceeds of tax-exempt obligations are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such obligations unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse the expenditures referenced herein. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. The City intends to issue the Obligations for the purpose of paying the costs of acquiring the two-story, 68,000 square office building presently being leased by the City, located at 1635 Faraday Avenue in the City of Carlsbad (the “Project”). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 20 2. The City hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the date of issuance of the Obligation and (ii) to use a portion of the proceeds of the Obligations for reimbursement of expenditures for the Project that are paid before the date of issuance of the Obligations. 3. The maximum principal amount of the Obligations is $12,000,000. PASSED, APPROVED AND ADOPTED at a regular meeting of City Council on the 21st day Of November , 2000, by the following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and &l&in NOES: None ABSENT: None ATTEST: (SEAL) 6