HomeMy WebLinkAbout0742 Resolution1
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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"
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&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;
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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;
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(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.
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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.