HomeMy WebLinkAbout2005-12-20; Public Financing Authority; 12; Golf Course Reimbursement Resolutionn
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MTG. 12-20-05
DEPT. CM
CARLSBAD PUBLIC FINANCING AUTHORITY - AGENDA BILL 1
- TITLE: DEPT. HD.
CITY MGR
CARLSBAD MUNICIPAL GOLF COURSE
REIMBURSEMENT RESOLUTION
RECOMMENDED ACTION:
ADOPT RESOLUTION NO. 16 declaring the Authority’s intention to reimburse
expenditures for a municipal golf course from the proceeds of bonds.
ITEM EXPLANATION:
In August 2005, the Board of the Carlsbad Public Financing Authority authorized the execution of
three contracts to construct a municipal golf course. The funding source for the golf course is to
come from approximately $30 million advanced from the City of Carlsbad’s General Fund and
approximately $1 5 million in tax-exempt bonds. Construction began in September and is expected to
continue until the opening of the golf course in spring/summer 2007. It is expected that the bonds will
be issued in the summer/fall of 2006. The advances from the City to the Authority will be used to pay
the construction costs prior to the bond issuance.
In order to be able to use tax-exempt bond proceeds to reimburse the Authority for the construction
costs incurred on the golf course, the Authority must adopt a resolution stating its intent to do so.
The attached resolutions declare the Authority’s intent to use the bonds to reimburse themselves for
a portion of the construction costs.
FISCAL IMPACT:
The reimbursement resolution allows the Authority to reimburse itself for payments for the acquisition
and construction of the golf course with tax-exempt bonds, if needed. It does not alter any of the
costs or plans for the financing of the golf course as described in previous agenda bills.
EXHIBITS:
1. Resolution No. 16 declaring intention to reimburse expenditures from the proceeds
of bonds.
DEPARTMENT CONTACT: Lisa Hildabrand, (760) 434-2823, Ihild@ci.carlsbad.ca.us
Exhibit 1
RESOLUTION NO. 16
A RESOLUTION DECLARING INTENTION TO REIMBURSE
EXPENDITURES FROM THE PROCEEDS OF BONDS
TO BE ISSUED BY THE CARLSBAD PUBLIC FINANCING
AUTHORITY
WH€R€AS, the Carlsbad Public Financing Authority (the “Authority”) proposes to
undertake the project referenced below, to issue lease revenue bonds or certificates of
participation (in either case, referred to herein as the “Bonds”) for such project, and to use a
portion of the proceeds of such Bonds to reimburse expenditures made for the project prior to
the issuance of the Bonds;
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally
that proceeds of tax-exempt Bonds are not deemed to be expended when such proceeds are
used for reimbursement of expenditures made prior to the date of issuance of such Bonds
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 Authority
declares its official intent to reimburse the expenditures referenced herein.
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NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Carlsbad
Public Financing Authority as follows:
I. The Authority intends to issue the Bonds or cause the Bonds to be issued for the
purpose of paying the costs of acquiring and constructing a municipal golf course in Carlsbad
(the "Project").
2. The Authority hereby declares that it reasonably expects (i) to pay a portion of the
costs of the Project prior to the date of issuance of the Bonds, and (ii) to use a portion of the
proceeds of the Bonds for reimbursement of expenditures for the Project that are paid before
the date of issuance of the Bonds.
3. The principal amount of the Bonds is expected to be approximately $15,000,000.
PASSED AND ADOPTED by the Board of Directors of the Carlsbad Public Financing
Authority at a duly held regular meeting thisZ!hday of December, 2005, by the following vote:
AYES: Board Members Lewis, Hall,
NOES: None
ABSENT: Board Member Kulchin
Carlsbad Public Financing Authority
Attest:
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