CCP 04-14-1997 - Laserfiche WebLink

Home Browse Search

I I. CITY OF ARDEN HILLS RAMSEY COUNTY I STATE OF MINNESOTA RESOLUTION NO. 97-19 I A RESOLUTION ESTABLISHING PROCEDURES RELATING TO COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS I UNDER THE INTERNAL REVENUE CODE I WHEREAS, the Arden Hills City Council created Development District No.1 and Tax Increment Financing District No.1 and No.2 on June 26, 1989; and I WHEREAS, the development program adopted with these Districts allows for the use of tax increment financing consistent with Minnesota Statutes, Section 469; and I WHEREAS, the City Council is considering the issuance of General Obligation Tax Increment Financing Bonds to achieve the development program objectives; and I WHEREAS, the City Council desires to use bond proceeds to reimburse itselffor any project expenditures paid by the City prior to the time of issuance of those bonds. .. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA: I 1. Recitals. A. The Internal Revenue Service has issued final Treasury Regulations, I Section 1.103-18 (the "Regulations") dealing with reimbursement bond proceeds, which would include those proceeds of the City's bonds to be used to reimburse the City for any project expenditure paid by the City I prior to the time of the issuance of those bonds. B. The Regulations generally require that the City make a prior declaration of I its official intent to reimburse itselffor such prior expenditures out of the proceeds of subsequent borrowings, that such declaration generally be made on or before the date the expenditure is actually paid, that the I bonding occur and the reimbursement allocation be made from the proceeds of such bonds within one (1) year of the payment of the I expenditure (or not later than one year after the project is placed in service, if that is a longer period), and that the expenditure be a capital expenditure. I {t I -------