06-08-15-R - Laserfiche WebLink

Home Browse Search

-3- including interest thereon, are payable solely from the revenues received from the Company and the Project and other property pledged to the payment thereof, and shall not constitute general or moral obligations of the City. The Revenue Obligations shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. The holder or holders of the Revenue Obligations shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal of the Revenue Obligations, or the interest thereon, or to enforce payment thereof against any property of the City. Section 4. Compliance with the Housing Act. Based on representations of the Company set forth in the Development Contract, it is hereby found and determined that the Project furthers the purposes set forth in the Housing Act and the Project constitutes a “multifamily housing development” within the meaning of the Housing Act. Section 5. Bond Counsel. The law firm of Kennedy & Graven, Chartered is authorized to act as bond counsel and to assist in the preparation and review of necessary documents relating to the Revenue Obligations. The Mayor, the Administrator, and other officers, employees, and agents of the City are hereby authorized to assist bond counsel in the preparation of such documents. Section 6. Documents Furnished to Bond Counsel. The Mayor, the Administrator, and other officers of the City are authorized and directed to furnish to Kennedy & Graven, Chartered, as bond counsel, certified copies of all proceedings and records of the City relating to the Housing Program, the Project, and the Revenue Obligations, and such other affidavits, certificates, and other documents as may be required by bond counsel to show the facts relating to the legality of the Housing Program, the Project, and the Revenue Obligations and related documents, as such facts appear from the books and records in the custody and control of such officers or as otherwise known to them; and all such certified copies, certificates, affidavits, and other documents, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. Section 7. Costs. The Company shall pay or reimburse any and all costs incurred by the City in connection with the issuance of the Revenue Obligations, whether or not the Revenue Obligations are issued and the operative instruments are executed and delivered. The Company shall pay the administrative fees of the City in the event the Revenue Obligations are issued in accordance with the terms of the Development Contract. Section 8. Reimbursement. The United States Department of the Treasury has promulgated final regulations governing the use of the proceeds of tax-exempt obligations, all or a portion of which are to be used to reimburse a conduit borrower for project expenditures paid prior to the date of issuance of such tax-exempt obligations. Those regulations, Treasury Regulations, Section 1.150-2 (the “Treasury Regulations”), require that the City or a conduit borrower adopt a statement of official intent to reimburse an original expenditure not later than sixty (60) days after payment of the original expenditure. The Treasury Regulations also generally require that the tax-exempt obligations be issued and the reimbursement allocation made from the proceeds of the tax-exempt obligations occur within eighteen (18) months after the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or abandoned, but in no event more than three (3) years after the date the expenditure is paid. The Treasury Regulations generally permit reimbursement of capital expenditures and costs of issuance of the tax-exempt obligations. The Company has adopted a reimbursement resolution with respect to the Project that satisfies the requirements of the Treasury Regulations. Section 9. Expiration. All commitments of the City expressed herein are subject to the condition that by December 31, 2015, the City, the Company, and the initial purchaser of the Revenue Obligations shall have agreed to mutually acceptable terms and conditions of the loan or revenue agreement, the