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HomeMy WebLinkAbout1996-10-16 96-400 ORDERCOUNCIL ACTION Date: 10-16-96 Item No 96-400 Item/Subject: ORDER amending Council Order #96-388, "Authorizing an not toexceed $700,000 aggregate amount of a privately placed general Obligation note for the purchase and environmental mediation of land-, as adopted at the September 25, 1996 Council meeting. . Responsible Department Finance Commentary, The attached Order amends the authorization of the $700,000 bank borrowing for which Bargor Savings park's bid of 4.1t for a three year nn wiaccepted. This amendment i necessary [ conform the Council's actio th respem Iu& regulations Although the Order adds significant verbiage o the original order, the only substantive changes are the designation of the i -bank qualified' under section 26S(b) of the IRS code, a:l the levy o4 a tax t0 repay the note. rheae were inadvertently omitted from the original order. Designation under section 265(b) of the Cade allows the lending institution to deduct act of the coat of carry attributable to purchasing the bonds, which acts to decrease the interest cost to the City. Associated Information Budget ApprovalFTmAqrR ` _ 3 nR Legal Approval: o(j:—//�/�a 71C11HPY S0LICIT0A•VV,V/ L(LM"M'MT Introduced For X Passage First Reading Fag e Of Referral 96-400 Anipad to Cwnaw ry1et October'f.._1996 CITY OF BANGOR (Hom) (OrUr, Amending Council Order 96-388 Authorizing the Issuance of $700,000 Aggregate Amount of General Obligation Notes BY w City Omani of tb City of Danuw. ORDERED, THAT Council Order 96-388 passed by the City Council on September 25, 1996 is hereby amended to incorporate by reference the attached wording. IN CITY COUNCIL October 16, 1996 96-400 Passed 0 RDE R C Cyg Title, Amending Council Order 96-388 Authorizing the Ieevavice of $700.000 o&[egete Amouvt of Gene[al Ob$1 1$etian Netea 4 Assigned to ........... I.X��.......... .oun...cillman.. man " C 96-400 CITY OF BANGOR ORDER AMENDING ORDER 96-388 AUTHORIZING THE ISSUANCE OF $700,000 AGGREGATE AMOUNT OF GENERAL OBLIGATION NOTES WHEREAS, on September 25, 1996, the City Council of the City of Bangor adopted Order No. 96-388 authorizing the issuance of $700,000 aggregate amount of general obligation notes (the "Notes") to pay the costs for the acquisition and rnvim mental remediation, if necessary, of approximately 28.8 acres of land from the Maine Central Rai" (the "Project"); and WHEREAS, the City Council now wishes to amend said Order No. 96-388 m designate such Notes pursuant to Section M5(b) of the Internal Revmue Code of 1986, as amended, and to take the other actions described berate; NOW, THEREFORE, by the City Council of the City of Burger, it is hereby ORDERED: THAT the Finance Director, or Acting Finance Theater, be and hereby is audrorized or provide that any of the Notes hereinbefore authorized be made callable, with or without premiums, Prior to their maturity. THAT said Notes shall be signed by the Finance Director, or Acting Finance Director, countersigned by the Chaimrsn ofthrCity Council, sealed with the seal of the City, attested by its Clerk, and shall be in such form and contain such terms and provisions as they stay approve, thek approval to be conclusively evidenced by their execution thereof Any issues of Notes tray be consolidated with and issued at the same time as ay chat issue of Notes authorized prior to theirissuace, and We Notes may be divided into multiple series and issued in separate plans of fieaming, or Acting Finance Director, with Ore approval of the Finance Committee and the Claimant of the City Council. THAT the Finance Director, or Acting Finance Director, be and hereby is authorized to select the registrar, paying agent and transfer agent (tor "Transfer Agent") for the Notes and to execute and deliver such contacts and agreements as may be necessary or appropriate to secure their services. THAT the Notes shall be traruferable, only on the registration books of the City kept by the transfer agent, and said principal amount of the bonds ofta same m salty (but not of other manalTy) in to deamination of $100,00() and any integral multiple of $5,000 in excess thereof, upon surrender thereof at the principal office of the transfer agent, with a written instrument of transfer satisfactory to the transfer agent duly executed by the registered owner or his attorney duly authorized in writing. Upon each exchange or transfer of a bond the City and the Transfer Agent shall make a cbarge sufficient to cover any tax, fee or any other governmental charge required to be payable with respect to such exchange or transfer, and with respect m such exchange or transfer, and subseemart to the first exchange or transfer, the cost of preparing new bonds upon exchanges or transfer thereof to be paid by the person requesting Ore same. 96-400 THAT the Finance Director, or Acting Finance Director, and clarnnm of the City Council from time to time shall execnte such bonds as may be required to provide for excbanges or trasisf of bonds as heretofore authorized, all such bonds to bear the original signature of the Finance Director, or Acting Pinmce Director, and Chairman of the City Council, and in case any officer of the City whose signature appears on any bond shall cease to be such officer before the delivery of said bond, such sigmture shall nevertheless be valid and sufficient for all proposes, the same as if such officer had remained in office until delivery thereof. THAT upon each exchange or transfer allotes, the City and Transfer Agent stall make a charge sufficient to cover my tax, f c, or tuber governmental cbarge required to be paid with respect to such number or exchange, and subsequent to the fust exchange or transfer, the cast of which shall be borne by the City, the cost of preparing new Notes upon exchanges or transfers thereofslhall be paid by the person requesting the same. THAT the officers executing the Notes be and hereby are individually authorized and directed to wveneat and certify on behalf of the City that no part of the proceeds of (be issue and sale of the Notes authorized to be issued hereunder shall be used directly or indirectly to acquire my securities or obligations, the acquisition of which would cause such notes to be "arbitrage bonds" within the meaning of Section 149 of the Internal Revenue Cade of 1986, as amended; THAT the officers executing the Notes be and hereby are individually authorized to covenant and agree, on behalf of the City, for the benefit of the holders of such Notes, that the City will file my required reports and take any other action that may be necessary to insure fast interest on the notes will remain exempt from federal income fetation, and that the City will refrain from any action that would cause interest on the notes to be subject to federal income motion; THAT the officers "coating the Notes be and hereby are individually authorized to revenant, certify and agree, on behalf of the City, for the benefit of the holders of such Notes, that the City will file any mmirN reforms, make my annual financial or material event disclosure, and take my other anion that may be necessary to insure that the disclosure regolremmts imposed by Role 15c2-12 of the Securities and Exchange Commission, if applicable, are met. THAT the term "cost" or "com" as used herein and applied to the Projects, or my portion thereof, includes, but is not limited to (1) the purchase price or acphisition cost of all or my podfon of the Project; (2) the war of coustruction, building, alteration, eolargement, reconstruction, renovation, improvement, and aryippmg of the Project; (3) all apparnmerces and other facilities either on, above, or radar tae groand which are used or usable in connection with the Project; (4) landscaping, site preparation and remodeling of my improvements or facilities; (5) the vests of all labor, materials, building systems, machinery and equipment (6) the cost of land, stnrwues, reef property interests, rights, easements, and franchises required in connection with the Project; (7) the cost of all mility extensions and site improvements and development (8) the cost of planning, developing, preparation ofspechiicatlons, surveys, engineering, feasibility studies, legal and other professional services aswcimed with the Project; (9) the cost of environmental studies and assessments; (10) the cast of financing charges and issuance costs, including premiums for inswaace, interest prior to and during construction, undewrifers' f«s 96-400 and costs, legal said accounting fees cod costs, application foes, and other fees and expenses ranging in the financing trasactiom aM (It) the cost of all other frimaing authorized herewder, whether related or unrelated on the foregoing. THAT the Finance Director, or Acting Finance Damper, Chairman of the City Council, Clerk, and other proper officials of the City be, and hereby are, authorved and empowered in its name and on its behalf to do or cause to be done all such acts and things as may be nassvy or desirable in order to affect the issuance, sale, and delivery of the bands and notes as hereinbefore authorized. THAT the F ance Director, or Acting Finance Director, be and hereby is authorized and empowered to take all such action as may be necessary to designate the Nates as qualified tax- exempt obligations for proposes of Section 265(6) of the Code; it being the City Council's intention that the NMes be Section 265(6) designated and that the Finance Director, or Acting Finance Director, with advice of bond counsel, make the required Section 265(6) election with respect to such Now to the export that the elation may be available and advisable as determined by the Finance Director, or Acting Finance Director. THAT the investment earnings on the proceeds of flit Notes, if any, and the excess precceds of the Notes, if my, be and hereby are appropriated her the following purposes, such proceeds to be held and applied in the following order of priority: I. To any costs of the Fmjact in eecess of the principal amount of the Notes; 2. In accordance with applicable terms and provisions of the Arbitrage and Use of Proceeds Certificate delivered in connection with the sale of the Notes including, to the extent permitted thereunder, to the City's General Fund. THAT the Notes hereby amhorizal may be made subject m call her redemption, with or without a prennium, before the date feed for final payment of the Notes, as provided in 30-A M.R.S.A. § 5TI2(6), as amended, as shall be determined by the Finance Director, or Acting Finance Director, with the approval of the Finmme Committee and the Chairman of the City Council THAT if the Finance Director, Acting Finance Director, Chairman of the Council, or Clerk are for any reason unavailable to approve real e=mote the Notes or airy of the related financing documents of the Note Documents, the person or persons then acting in any such capacity, whether as an ssish at, a deputy, or otherwise, is authorized to act for sack official wild the same force and effect as if such official had himself performed such act. THAT in each of the years during which any of the Nates are outstanding, there shall be levied a tax in an ammmt which, with other revenues, if airy, available for that propose, shall be ' sufficient to pay the interest on said Notes, payable in such years, and the principal of such Notes; maturing in such years. THAT this Order constinnes a Declaration of Official Intent by the City pursuant W Treasury Regulation §1.150-2 to reimburse any original expeadinues made on the Projat out of 96-400 the Genual Fund and OW the City intends to issue the Notes on a tax-exempt basis to the extent they qualify for such treatment, and othuwise to issue such Notes on a taxable basis. roa:smas.�.00c '