HomeMy WebLinkAbout1996-09-25 96-383 ORDERCOWCIL ACTION
Date: 9-25-96 Item No 96-383
Item/SubjecG ORDER Declaring Official Intent Pursuant to
Treasury Regulation $1.150-2.
Responsible Department: City Manager
commentary: The attached Order declares the city's intent to borrow up to
$700,000 to purchase and, if necessary, environmentally remediate the Maine
Central mailroad property located on the r verfron0. This is necessary
because of IRS regulations which would treat as one issue the bonds o which
we will be Closing On September 26th and, if closed within 15 days of the
bonds, the bank loan. Such treatment would necessitate the recalculation of
the band issue a yields for arbitrage purpaoea.
Rather than incur the additional coats associated with this, we intend to
initially finance the purchase frees operating cash flow, and, after the
Passage of 15 days, reimburse ourselves from the proceeds of the bank loan
that we anticipate will be authorized tonight.
FDAVYNM:m Wmzn
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced Poz
_ X Passage
First Reading Psge of
Referral to Finance Committee
96-383
3. Public Availability of Official Intent. This
Declaration of Official Intent shall be maintained as a public
record of the Issuer.
4. Treasury Reaulations. This is a declaration of
official intent pursuant to the requirements of Treasury
Regulations $1.150.4. _
5. Aathority far Declaration. This Declaration is adopted
pursuant to the following action of the Issuery Order adopted by
its City Council.
96-383
A&AFM to Cosecant Saucy September 25. 1996
CITY OF BANGOR -
(TITLE.) (Orber. ............ Declaration of off iciai intent Pursuant to
Treasury Regulation 81.150-2
By She City Costal! ofNv City ofBantan
ORDRRRD,
THAT
w10;REAS, the City of Bangor, Hain (the "Issuer") currently
Intends to proceed with the following project (the
"Project")f to acquire parcels of land located at Tax
nap No. 43, Lot 40, nap No. 50, Lot 16, and Hap No. 55,
Lot 163 (the "Property"), to be owned by the City and
used for public purposes to be determined by the City
Council; and
witinBs, the Issuer intends to finance a portion of the coats of
the Project through the issuance of bonds or notes in
anticipation thereof; and
WHEREAS, certain of the costs of the Project may be paid by the
Issuer prior to the issuance of notes or bonds and be
reimbursed from the proceeds thereof; and
WHEREAS, Treasury Regulation §1.150-2 requires that the Issuer
declare its official intent to reimburse expenditures
with proceeds of borrowings prior to the date of
expenditure;
NOW, THEREFORE, the Issuer does hereby declare its official
intent as follows:
1. Declaration of intent The Issuer reasonably expects to
reimburse expenditures made on the project with the proceeds of
notes or bonds to be issued by the Issuer in the maximum -
principal amount of $700,000.
2.Gen
Relates. The following £e easonbly accurate general function
description of the type and ause of the property with respect to
which reimbursements will be made, to acquire the Property and to
use 1t for public purposes to be determined by the City Council.
fN C11Y Cf.EtIIC
Sept. @5, 1996 96-383
pwsed ORDER "y
Title, Declaration of Official Intent
Pursuant to Treasury Regulation 8.150-T
CI1Y CfIlIIt -
............................. ........
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Awigned t0
i
Csuncilsan