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HomeMy WebLinkAbout2011-07-25 11-254 RESOLVEItem No, 1.1. E54 Date' lulu 25 20i1 Ilan/Subject Resolve, Declaration of ficial Interrt to Reimburse Expenditures on Me Arena/Meeting Complex project from the proceeds of Tax-&empt Obligations ResponsUde Department France s.ommmrary: In anticipation of issuing bonds Mfinance Me construction ofthe Bass Park Arena/Meeti p Complex, Me City will need to Incur opens prior to the actual bond issue. In order to pay for the Incurred expenses, Me City must be on record with its intentto reimburse forthese incurred expenseswithm 60 daysof the expenditures occurring. If approved, Mis order will permit the CRY to reimburse itself from bond proceeds for Issuance costs and other construction related expenses incurred! up M 60 days prior to issuance of general obligation bonds. Department Head Manager's Comments: This item was reviewed by the Mnance Committee on 7/18/11 and recommended for approval. City Manager Associated Information: Resolve !"/iii ran nru�aun;ea nor X Passage _ First Reading Page _ of _ Referral 11 254 �, l! Assigned tO Councibr _ N.xll, ]ply 25, 2011 CITY OF BANGOR UME.) Resolve, Dedaration of Official Intent to Reimburse Expenditures on the Arena/ Meeting Complex Project from Tax -Exempt Obligations WHEREAS, the City of Bangor, Maine (the'Issuei currently intends to proceed vdM the construction of an Arena/Meeting Complex (the "Project'); and WHEREAS, the Issuer intends to finance the vests of the Project through the issuance of tax- exempt and/or taxable bonds, to the extent other funds are nat available Herefore; and WHEREAS, the Issuer is not certain at this time how much of the Project may be financed with tax-exempt bonds and how much will need to be financed with taxable bonds; and WHEREAS, Treasury Regulation § 1.150.2 requires that an Issuer declare its official intent to reimburse expenditures with proceeds of tax-exempt prior M the data of such expenditures; Now, therefore, by Me CyyCouecff ofthe City of Bangor be k hereby REBOL VEQ 1. Declaration of Intent. The Issuer intends to reimburse itself from the proceeds of tax-exempt obligations issued by the Issuer for the Project, which tax-exempt obligations are expected to be issued in an amount not to exceed $65,000,000 for expenditures made or incurred by it on the Project Prior to the issuance of such foe -exempt. 2. General Description of Property to Which Reimbursement Relates. Set forth above Is a reasonably accurate general functional description of the Project with respect to Mich reimbursements will be made; provided that the Issuer reserves Me right W make such changes, substitutions, additions, and deletions as are necessary for the efficient operation of the Issuer and no completion of the Project. 3. Identification of Source of Funds. Expenditures made prior to We issuance of tax-exempt obligations issued to finance such costs of He Project are expected to be funded either with operating and non-operating revenues of the Issuer or with the proceeds of an interim loan 4. Status of Bonds and/or Notes. The bonds (and/or notes issued in anticipation thereof) to be issued to finance the costs of He Project described above, to the extent permitted under the Internal Revenue Code of 1986, as amended (the "Code', are Intended to be issued as tax-exempt obligations as described in Section 103(a) of the Code. 5. Public Availability, of Oficial Intent. This Declaration of Oficial Intent shall be maintained as a public record of the Issuer. in CITY COOgCI1 JUY 25, 2011 s tion H and Seconded fox Passage Passed CITY C ®IX g 11-256 Ir+1tE gel res itures on the Bt e[ Cmp Project fr® the pro e" o£'' t Taz Pwie�retl rofaunmor