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HomeMy WebLinkAbout0742 Resolution1 1 RESOLUTION NO. 742 RESOLUTION AUTHORIZING THE -ISSUANCE OF .'CERTAIN PROJECT.TEMPORARY LOAN NOTES IN CONNECTION,WITH••URBAN•-RENEWAL PROJECT N0:• WASH�•R-18, AND PROVIDING FOR THE SECURITY FOR THE PAYMENT THEREOF, AND FOR OTHER PURPOSES. WHEREAS the CITY OF PASCO - (herein sometimes -called the "Local Public -Agency") is duly authorized and proposes to undertake and -carry out a certain -urban -renewal or redevelopment project -of the character.authorized_by law with financial aid by.the United States of America (herein sometimes called the'"Gov- ernment"e) in the• form of a Project Temporary °Loan sunder Title I of •the Housing Act -of 1949, as amended.(42 .U.S.C:. 1450'et'seq:), which may be made by the.Government to the•Local.Public.Agency with respect -to the. Project in accordance with a Contract for.,,a loan and grant by.and, between the Local Public Agency and the -Government;- and WHEREAS; in•order to enable the -Local -Public Agency to obtain.such financial aid, -it is:Inecessary'for-the Local Public Agency to authorize and, from time to time, issue certain.obligations asihereinafter.provided: NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO DO RESOLVE AS FOLLOWS: Section'l: That in -order to.provid•e funds -to enable the Local Public Agency to defray•expenaes,and costs. in connection with the undertaking and carrying out of the Project, -,and -to refund, renew, extend, or substitute for any Project Temporary Loan Notes by this Resolution authorized to be issued, there are..:hereby authorized to be issued, from time to time, Protect Temporary Loan Notes.,of the Local Public Agency in an aggregate principal amount outstanding at any one time (whetherau.tho.rized by this Resolution .or any other resolution authorizing the issuance of Project Temporary Loan Notes in connection with the Project) of not tdi!xceed•­One Million Nine Hundred Thirty - Five Thousand.One-Hundred Six -------------'-----Dollars ($1,935,106 ). Section 2. -.That each sudh note.shall.be designated "Proj:ect Temporary Loan Note':; :shall- be payable.; .as ,to. ,the principal thereof together with the.interest-thereon, upon demand, but -solely -from the Project Temporary Loan Repayment. Fund hereinafter mentioned -and not otherwise; shall be payable at the principal office of the Local Public Agency in any coin or currency of the United States of America, which., on the date of the payment of, -the -principal. -thereof and the interest. thereon, is legal tender for the payment of public and private debts; shall be payable to the United States of America or order; shall be ' _ 1b signed in the name of the'Local'Public Agency'by the Mayor '; shall have the official seal of the Local Public Agency impressed thereon and attested by the City Clerk and shall bear interest at the rate or rates as follows: During the period from the date of the acceptance of delivery of and payment for each such note through June 30 1968 (herein called the "Initial Interest Period"), said principal sum shall bear interest on the unrepaid amount thereof at the rate of Five and three-quarters per centum (S-3/47) per annum. From and after said date each such Note -shall bear interest on the unrepaid principal amount thereof at a redetermined rate (to be duly noted on behalf of the United States of America on the reverse thereof), which shall be initially determined and become effective on the date immediately following the expiration of the Initial Interest Period• and shall be successively redetermined at 6 -month intervals. thereafter on January 1 and July 1 of each year; and each such redetermined rate shall become effective, with respect to payments unrepaid on the date immediately preceding the effective date of stich redetermined rate; -in accordance with the following formula: The redetermined rate shall not,exceed-six per. centum (6%) per annum, but otherwise shall be the higher of: (a) The "going Federal rate`.' determined pursuant to the -provisions of Title hoof the Housing Act of 1949, as amended, and effective on the effective date of such redetermined rate; or (b) A rate per annum equal to the average yield to maturity -on all outstanding obligations of the United States having• a maturity of approximately.five years from the May 1 or November -1, as the casemay be, next preceding.' the effective date of- such redetermined rate, as deter- mined -by,. -the Secretary of Housing and Urban Development upon the advice of the Secretary of the Treasury, such average yield to be estimated on the basis of daily closing market-bid'qudtations or prices for -the month of May or November next preceding -the effective date of such redetermined -rate., and adjusted to the nearest 1/8 of 1 percent. Section 3.' That each Project Temporary Loan Note issued, including a statement of the delivery :thereof to the Government, shall be in substantially the following form: (a) When such Project Temporary Loan Note supports a requisition for a direct Federal loan to finance the urban renewal or redevelopment project, such Note shall be in substantially the form of "Exhibit A" - 2 - &i Section 4. That there is hereby established a separate and special account on the books of account of the.Local Public Agency, which is hereby designated the ."Project Tempo]rary,Loan Repayment Fund; -.Project No. Wash R-18 said account being elsewhere herein::referred to as the "Project Temporary Loan Repayment Fund." The:moneys of -such account shall be maintained in a bank or banks which are members of the Federal Deposit Insurance Corporation, -and may be deposited in a consolidated - bank account or accounts limited to.the moneys comprising the Project Temporary Loan Repayment Fund for this Project together with the moneys comprising the Project Temporary Loan Repayment Fund for any or all urban renewal projects.carried out or to be,cartied out under Contracts for a Loan and Grant -by and,between-the Local:-Tublic Agency and the Government.. The,following-moneys shall.be debited to said Project accounts authorized by this section as and when such moneys are received by the Local Public Agency: (a) The proceeds of.all sales ofiProject Land by,the Local Public Agency, excluding such proceedsxas may arise from the sale .o -f Project Land after such -Project Land has been leased; . . - (b) All moneys constituting compensation by the Local Public Agency for Project Land -which it retains instead of selling or leasing,•excl-uding•the moneys which may ..arise from -the retention of ;Project Land :after such . Project .Land --has been .leased; (c) All payments which are.made by the Government to the Isocal Public Agency on account of the-Proj•ect•Capital Grant; - 3 - attached hereto and made,a-.part hereof;. Provided that.each such Project Temporary -Loan Note bearing a date subsequent to the expiration of the "Initial Interest Period" shall state on-its.face the applicable Interest rate and shall-define.therein the term "Initial Interest Period" by use of a date which shall be the end of the pertinent six-month period, both as authorized and as required by this Resolution; (b) When such.. Pro j ect- Temporary Loan -Note is to be. held.. by the Government in escrow in connection with the issuance of obligations of the Local -Public Agency to --,aid in financing the aforementioned urban renewal-br.redevelop- men:t project, such. Note shall be in substantially the form of 'Exhibit B" attached hereto and -made a part,.-. hereof. Section 4. That there is hereby established a separate and special account on the books of account of the.Local Public Agency, which is hereby designated the ."Project Tempo]rary,Loan Repayment Fund; -.Project No. Wash R-18 said account being elsewhere herein::referred to as the "Project Temporary Loan Repayment Fund." The:moneys of -such account shall be maintained in a bank or banks which are members of the Federal Deposit Insurance Corporation, -and may be deposited in a consolidated - bank account or accounts limited to.the moneys comprising the Project Temporary Loan Repayment Fund for this Project together with the moneys comprising the Project Temporary Loan Repayment Fund for any or all urban renewal projects.carried out or to be,cartied out under Contracts for a Loan and Grant -by and,between-the Local:-Tublic Agency and the Government.. The,following-moneys shall.be debited to said Project accounts authorized by this section as and when such moneys are received by the Local Public Agency: (a) The proceeds of.all sales ofiProject Land by,the Local Public Agency, excluding such proceedsxas may arise from the sale .o -f Project Land after such -Project Land has been leased; . . - (b) All moneys constituting compensation by the Local Public Agency for Project Land -which it retains instead of selling or leasing,•excl-uding•the moneys which may ..arise from -the retention of ;Project Land :after such . Project .Land --has been .leased; (c) All payments which are.made by the Government to the Isocal Public Agency on account of the-Proj•ect•Capital Grant; - 3 - (d) All moneys which may be provided by the Local Public Agency from sources other than the Government or from the proceeds of a Project Definitive Loan, if any, to compensate the Project Temporary Loan Repayment Fund for the fair value imputed to Project Land which is leased by the Local Public Agency rather than sold by it for cash; ' (e) All such Local Grants -in -Aids in the form of deficiency cash grants as, after the Gross Project Cost and the Net Project Cost have been -determined and the payment of all costs comprising'Item l of Gross Project Cost has been duly made or provided for and all other Local Grants -in -Aid applicable to the Project which have been provided have been determined, are provided with respect to the Project to meet the deficiency, if any, in Local Grants -in -Aid in connection with the Project; (f) All accrued interest, if any, which is paid to the Local Public Agency on Project Temporary Loan Notes at the time when the Government takes up and pays for such Project -Temporary Loan Notes; (g) All income derived from the investment of moneys deposited in. the Project Temporary Loan Repayment Fund; and (h) The unexpended balance, if any, remaining or belonging in the Project Expenditures Account after all'cbsts constituting Item 1 of Gross Project Cost have been paid. Section 5. That Project Temporary Loan Notes issued pursuant to the provisions of this Resolution shall, as to both the principal thereof and the interest thereon, constitute'an exclusive first lien and charge upon the funds which,'by the terms of this Resolution, comprise the Project Temporary Loan -Repayment Fund; which Fund is hereby irrevocably pledged to the payment of the principal of and interest on such Project Temporary Loan Notes. Section 6. That the • Mayor is hereby authorized to file requisitons, together with necessary sup- porting documents, with the Government, from time to time as Project Temporary Loan or Project Capital Grant funds are required, requesting payments to be made on account of the Project Temporary Loan or the Project Capital Grant provided for in the said Contract for the loan and grant, and to do and perform all other things and acts required to the done or performed in order to obtain such payments. - 4 - Section 7. That, when and as directed by further resolution or resolutions, the proper officers of the Local Public Agency shall prepare, execute, and deliver to the Government the Project Temporary Loan Notes hereby authorized and shall accept payment therefor from the Government. Section 8. That the proceeds of the sale of all Project Temporary Loan Notes issued pursuant to this Resolution shall be deposited and disbursed only in accordance with the provisions of the Contract for loan and grant, unless otherwise approved in writing by the Government. Section 9. That the Project (which is designated Project No. Wash. R-18 and is herein called the "Project") included and consists of all undertakings and activities of the Local Public Agency in the Urban Renewal Area, in accordance with the Plan for the renewal or redevelopment of the Urban Renewal Area, for the elimination and for the prevention of the development or spread of slums and blight, and, to the extent contemplated by said Plan, involves slum clearance and redevelop- ment, and the carrying out of plans for a program of repair and rehabilitation of buildings or other improvements. Section 10. That the land area of the Project (herein called the "Urban Renewal Area") is situated within the City of Pasco , and the boundaries of the Urban Renewal Area shall be as described in the Contract for loan and grant. Section 11. That each of the following terms, when so used in this Resolution, shall, unless the context clearly indicates otherwise, have the meaning ascribed to it in this Section: (a) The term "Contract" means that certain document, a counter- part of which is now on file with the Local Public Agency, designated Contract No. Wash. R-18(LG) , naming the Local Public Agency and the Government as the parties thereto, and providing for a Project Temporary Loan, a Project Definitive Loan, and a Project Capital Grant to the Local Public Agency with respect to the Project. (b) The term "Plan" means the urban renewal or redevelopment plan referred to in said Contract for loan and grant. (c) The terms "Local Grants -in -Aid", "Gross Project Cost", "Item I of Gross Project Cost," "Net Project Cost," "Project Land", "Project Temporary Loan", "Project Definitive Loan", "Project Capital Grant", "Project Expenditures Account," "fair value", "land", and "redevelopment", and derivatives thereof, have the same meanings, respectively, attributed to said terms in the Contract for loan and grant. Section 12. That this Resolution shall take effect immediately.after its passage as required by law. = S = 223823-P M PASSED by the City Council the 20 day of August , 1968, and signed by me in open session in authentication of its passage this 20 day of August 1968. t Filed by me this APPROVED as to form: �j Mayor of the City of Nsco 21 day of August , 1968. D.ayne C pbell, City . torney 1 i An ATTEST: CTI By: PROJECT TEMPORARY LOAN NOTE Note No. Project No. EXHIBIT A HUD-N66(a) (10-66) (herein—oa ad -the "Local Ptblio Agency"), for value received, hereby promisee o pay, but solely om the Project Temporary Loan Repayment Fund hereinafter mentioned and not otherwise, upon demand, to the United States of America or order, the sum of DOLLARS ($ , and at such time to pay, but solely from said and not otherwise, interest on said sum, from the date of acceptance of delivery of and the payment for this Note, at the rate or rates as follows: During the period from the date of the acceptance of delivery of and payment for this Note through , 19 (herein called the "Initial Interest Period"), said principal sum shall bear interest on TFre unrepaid amcunt thereof at the rate of per oentum ( . %) per annum. From and after said date said prinoipal sum shall bear interest on t e unrepaid principal amount thereof at a redetermined rate (to be duly noted below on behalf of the United States of America), which shall be initially determined and become effective on the date immediately following the expiration of the Initial Interest Period and shall be successively redetermined at 6 -month intervals thereafter on January 1 and July 1 of each year; and each such redetermined rate shall become effective with respect to payments unrepaid on the date immediately preceding the effective date of such redetermined rate, in accordance with the following formula: The redetermined rate shall not exceed six per centum (6%) per annum, but otherwise shall be the higher of: (a) The "going Federal rate" determined pursuant to the provisions of Title I of the Housing Act of 1949, as amended, and effective on the effective date of such redetermined rate; or (b) A rate per annum equal to the average yield to maturity on all outstanding obligations of the United States having a maturity of approximately five years from the May 1 or November 1, as the case may be, next preceding the effective date of such redetermined rate, as determined by the Secretary of Housing and Urban Development upon the advice of the Secretary of the Treasury, such average yield to be estimated on the basis of daily closing market bid quotations or prices for the month of May or November, as the case may be, next preceding the effective date of such redetermined rate, and adjusted to the nearest 1/8 of 1 percent. Both the principal of and interest on this Note are payable at the principal office of the Local Public Agency in , in arty coin or currency of the United States of America whioh, on the date of the payment of the principal of and nterest on this Note, is legal tender for the payment of public and private debts. This Note is issued pursuant to the provisions of (a) the Constitution and laws of the including particularly "(b) a Resolution duly adopted by the Local Public Agency on the day of , 1 , providing for the issuance of Project Temporary Loan Notes (herein called the "basic Note Resolution")j and (o) a Resolution likewise adopted on the day of , 19 , providing for the issuance of this particular Note; and the proceeds hereof are to be used to defray expenses and costs involved in the Local Public Agency's undertaking and carrying out of a certain urban renewal or redevelopment Project of the character authorized by said laws and designated Projeot No. , which is more fully identified in the.basio Note. Resolution. Said Project f,.^ which this Note is issue is being assisted by the United States of America pursuant to Title I of the Housing A,ot of 1949, as amended (42 U.S.C. 1450 et seq.). Under the basic Note Resolution, there is established a separate and special fund therein referred to as the "Project Temporary Loan Repayment Fund" in which are required to be deposited certain moneYs, therein described, as and when the same are received by the Looal Public Agency, and this Note., together with all other notes issued pursuant to the basic Note Resolution, constitute, as to both the principal thereof and the interest thereon, an exclusive first lien and charge upon said Fund, which Fund is irrevocably pledged to the payment of the principal of and interest on this Note and all other notes which are issued as aforesaid. This Note shall not constitute a debt or indebtedness of the State or of any town, city, county, municipality, or political entity or subdivision therein or thereof, within the meaning of any crmstitutional, statutory, local law, or charter provision. IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all aots, oonditions, and things required to exist, happen, and be performed precedent to and in the issuance of this Note do exist, have happened, and have been performed in due time, form, and manner as required by law. IN WITNESS WHEREOF, the Local Public Agency has caused this Note to be signed in its name and its seal to be impressed hereon and; attested, by its proper officers thereunto duly authorized, and this Note to be dated the day `of , 19 _ (Seal) J ATTESTt By Delivery of this Note was accepted and payment therefor made on the day of 19 INTEREST RATES Initially: ____.9through • , 19 0 Thereafter: a through , 19 UNITED STATES OF AMERICA Secretary of Housing and Urban.Development 1 1, Note No. PROJECT TEMPORARY LOAN NOTE (ESCROW) Projeot No. $ EXHIBIT B HUD -3066(b) (10-66) (herein called the "Local Public Agency for value received, hereby promises to pay, but solely from the ojeo. Temporary Loan Repayment Fund. hereinafter mentioned and not otherwise, upon demand, to the United States of America or order, the sum of DOLLARS ($ , and at such time to pay, but solely from said Fund and not otherwise, interest on said sum, from of the acceptance of delivery of and the payment for this Note., at the rate or rates as follows: From and after the date of acceptance of delivery of and payment for this Note through the next immediately succeeding June 30 or December 31, as the ease may be, the rate shall not exceed six percent (6/) per annum, but otherwise shall be the higher of: (a) The "going Federal rate" determined pursuant to the provisions of Title I of the Housing Act of 1949, as amended, which is in effect on the date delivery of this Note is accepted and payment made therefor; or (b) A rate per annum equal to the average yield to maturity on all outstanding obligations of the United States having a maturity of approximately five years from the May 1 or November 1, as the case may be, next preceding the date delivery of this Note is accepted and payment made therefor, as determined by the Secretary of Housing and Urban Development upon the advice of the Secretary of the Treasury, such average yield to be estimated on the basis of daily closing market bid quotations or prices for the.month of May or November, as the case may be,, next preoeding the date delivery of this Note is accepted and payment made therefor, and adjusted to the .nearest 1/8 of 1 percent. From and after the January 1 or. July 1, as the case may be, next succeeding the date of acceptance of delivery of and payment for this Note, the principal sum shall bear interest on the unrepaid principal amount thereof at a redetermined rate (to be duly noted below on behalf of the United States of America), which shall be initially determined and become effective on said January 1 or July 1, as the case may be, and shall be successively redetermined at 6 -month intervals thereafter on January land July 1 of each year; and each such redetermined rate shall become effective, with respect to payments unrepaid on the date immediately preceding the effective date of such redetermined rate, in acoordanee with the following formula: The redetermined rate shall not exceed six percent (6%) per annum, but otherwise shall be the higher of: (a) The "going Federal rate" determined pursuant to the provisions of Title I of the Housing Act of 1949, as amended, and effective on the effective date of such redetermined rate; or (b) A rate per annum equal to the average yield to maturity on all outstanding obligations of the United States having a maturity of approximately five years from the May 1 or November 1, as the case may be:next preceding the effective date of such redetermined rate, as determined by the Secretary of Housing and Urban Development upon the advice of the Secretary of the Treasury, such average yield to be estimated on the basis of daily closing market bid quotations or prices for the month of May or November as the case may be next preceding the effeotive date of such redetermined rate, and adjusted to the nearest 1/8 of 1 percent. Both the principal of and interest on this Note are payable at the principal office of the Local Public Agency in in any ooin or ourrenoy of the Unite States or America WHIBE7 on YN T&T-9--oT-Me payment or the prinolpal of and Interest on this Note, is legal tender for the payment of public and private 'debts. This Note is issued pursuant to the provisions of (a) the Constitution and laws of the of , including partioularly a ilesolution du3y adopted by t cal Publie Agency on the day of ,19, providing for the issuance of Project Temporary Loan Notes (herein cal ne the "basic Note eso u ion ; an (o) a Resolution likewise adopted on the day of , 19 providing for the issuance of this particular Note; and the prooee -Thereof are to be use o e expenses and costs involved in the Local Public Agency's undertaking mid carrying out of a certain urban renewal or redevelopment Project of the character authorized by said laws and designated Project No. , which is more fully identified in the basic Note Resolution. Said Project for which thisNo"assisted by the United States of America pursuant to Title I of the Housing Act of 1949, as amended 42 U.S.C. 1450 at seq.) Undo the basic Note Resolution, there is established a separate and special fund therein referred to as the "Project �mporary Loan Repayment Fuhd" in which are required to be deposited certain monss, therein described, as and when the same are received by the Local Public Agency, and this Note, together with all other notes issued pursuant to the basic Note Resolution, constitute, as to both the principal thereof and the interest thereon, an exclusive first lien and charge upon said Fund, which Fund is irrevocably pledged to the payment of the principal of and interest on this Note and all other notes which are issued as aforesaid. This Note shall not oonstitute a debt or indebtedness of the State or of any town, city, oounty, munioipality, or political entity qr subdivision therein or thereof, within the meaning of any constitutional, statutory, local law, or charter provision. IT IS HEREBY CERTIFIED RECITED, AND DECLARED that all sots, conditionsy and things required to exist, happen, and be performed precedent to and in the issuance of this Note do exist, have happened, and have been perforsed in due time, form, and manner as required.�by law; IN WITNESS WHEREOF the Local Public Agency has caused this Note to:be siggnned in its name and its seal to be impressed hereon and attested, by its proper officers thereunto duly avthorised,, and this Note to be dated the day of ,19 . (Seal) ATTEST: Delivery of this Note was aooepted and payment therefor made on the day of , 19 INTEREST RATES Initially: % through , 19 Thereafter: % through , 19 BY Thereafter: % through , 19 220493-P UNITED STATES OF AMERICA Secretary of Housing and Urban Development HUD' -Wash., D. C.