HomeMy WebLinkAbout1999-03-23 - RESOLUTIONS - REIMBURSE TAX EXEMPT FINANCING (2)RESOLUTION NO. 99-59
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA CLARITA, CALIFORNIA
DECLARING ITS INTENTION TO REIMBURSE
CERTAIN EXPENDITURES FROM PROPOSED TAX
EXEMPT FINANCING AS REQUIRED BY UNITED
STATES DEPARTMENT OF TREASURY
REGULATIONS SECTION 1.150-2
WHEREAS, the City of Santa Clarita (the "City") is contemplating the formation of
a community facilities district (the "District") pursuant to the Mello -Roos
Community Facilities District Act of 1982 (being Chapter 2.5, Part 1, Division 2,
Title 5 of the California Government Code) (the "Act") and the use of tax-exempt
financing; and
WHEREAS, it is contemplated that Spirit Properties, Ltd., dba Santa Clarita
Business Park Company, (the "Owner"), will develop certain property within the
City, and in that connection, will acquire, design and/or construct certain public
improvements relating to its property, including but not limited to, streets, sewers,
storm drains and other public infrastructure (the "Infrastructure") and will acquire,
design and/or construct a portion of Golden Valley Road from the southernmost
portion of Tract 42670-02 south to the existing Sierra Highway ("Golden Valley Road
Extension"); and
WHEREAS, it is contemplated that the City and/or the District to be formed will
finance, acquire, design and/or construct a portion of the Infrastructure and Golden
Valley Road Extension (collectively, the "Project"); and
WHEREAS, it now appears in the best interests of the City, and the District when
and if formed, to utilize tax-exempt financing through the issuance and delivery by
the District (the "Issuer") of special tax bonds pursuant to the Act or similar
instruments (the "Bonds") to be secured by special taxes to be levied by the District
and certain bridge and thoroughfare fees of the City; and
WHEREAS, the City and/or the District when formed intend to incur certain Project
expenses prior to the date of delivery of the Bonds (the "Reimbursable Expenses");
and
WHEREAS, Section 1.150-2 of the regulations (the "Treasury Regulations")
promulgated under the Internal Revenue Code of 1986, as amended (the "Tax
Code"), requires this City Council to declare its reasonable official intent to
reimburse the Reimbursable Expenses from the proceeds of the Bonds which the
City Council reasonably expects will be issued to finance the costs of the Project
incurred prior to the date of issuance thereof and that a portion of such proceeds
shall be used to reimburse the City and/or the District for the Reimbursable
Expenses;
RESOLUTION NO. 99-59
March 15, 1999 — Page 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA CLARITA
does resolve as follows:
Section 1. The City and the District when formed reasonably expect to reimburse
themselves for the Reimbursable Expenses made from the City's General Fund
and/or the Bridge and Thoroughfare Fund in anticipation of the issuance of the
Bonds with proceeds from the sale of the Bonds. The reimbursement of the
expenditure is consistent with the City's budgetary and financial circumstances.
There are no funds or other sources of money of the City, or any related person or
controlled entity, that have been, or are reasonably expected to be reserved,
allocated on a long-term basis or otherwise set aside to pay the costs of the Project to
be paid or reimbursed out of the proceeds of the Bonds.
Section 2. The maximum principal amount of the Bonds for which Reimbursable
Expenses is made is reasonably expected to be $29,000,000.
Section 3. The proceeds from the Bonds are to be used for the financing, acquisition,
design and/or construction of the Project, funding a reserve fund and paying certain
costs of issuance related thereto.
Section 4. This Resolution is adopted solely for purposes of establishing compliance
with the requirements of section 1.150-2 of the Treasury Regulations. This
Resolution does not bind the City Council to make any expenditure, incur any
indebtedness, or proceed with the financing, acquisition, or construction of the
Project. All of the Reimbursable Expenses covered by this Resolution were made not
earlier than 60 days prior to the date of adoption hereof.
Section 5. All actions heretofore taken by the officers, or their respective designees,
employees, and agents of the City Council in connection with the financing of the
Project are hereby ratified and confirmed.
Section 6. This Resolution shall take effect immediately upon its adoption.
RESOLUTION NO. 99-4t
I
March 15, 1999 — Page 3
PASSED, APPROVED and ADOPTED this2-3 r c7day of March 1999.
MAY01
ATTEST:
CITY CLERK
STATE OF CALIFORNIA)
COUNTY OF LOS ANGELES) as
CITY OF SANTA CLARITA)
I, Sharon L. Dawson, City Cle of the City of Santa Clarita, do hereby certify that
the foregoing Resolution was duly adopted by the City Council of the City of Santa
Clarita at a regular meeting thereof, held on the ril day of m� rrb 1999 by the
following vote of the Council:
AYES: COUNCILMEMBERS: Heie�t, F�,rry, Weste, Klajic, Darcy
NOES: COUNCILMEMBERS: Non�
ABSENT: COUNCILMEMBERS: Nor),
V"
CITY CLERK
KS:hds
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