RESOLUTION NO. 43-17

 

A RESOLUTION REGARDING OFFICIAL INTENT TO REIMBURSE EXPENDITURES FROM PROCEEDS OF BORROWING

 

RECITALS:

 

It is the understanding of the City Council that the Downtown Development Authority (DDA) intends to undertake debt financing for the construction and development of improvements in, to and serving the project known as the Las Colonias Business Park Project (“Project”).

 

It is further the City Council’s understanding that the DDA expects to finance the Project on a long-term basis by issuing tax-exempt bonds, promissory notes or other legally authorized and appropriate evidence of indebtedness. Because the debt will not be issued prior to construction, the DDA must provide interim financing to cover costs of the Project incurred prior to receipt of the proceeds of the debt.

 

Accordingly, it is necessary, desirable and in the best interests of the Downtown Development Authority for the City to advance moneys from DDA funds on hand, on an interim basis, to pay the costs of the Project until the debt is issued.

 

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Junction that:

 

Section 1. Expenditure of Funds. The City shall make expenditures as needed from its funds on hand to pay the costs of the Project until debt proceeds become available.

 

Section 2. Declaration of Official Intent. Before this Resolution is deemed to be effective the Downtown Development Authority must officially declare its intent under Treasury Regs. Section 1.150-2 to reimburse said expenditures with proceeds of the Bonds, the principal amount of which is not expected to exceed $15,000,000.

 

Section 3. Unavailability of Long-Term Funds. No funds for payment of Project expenses from sources other than the Bonds are, or are reasonably expected to be, reserved, allocated on a long term basis, or otherwise set aside by the City other than pursuant to its budget or financial policies and applicable law.

 

PASSED AND ADOPTED this 2nd day of August, 2017.

     

 

       

             J. Merrick Taggart    

ATTEST:            President of the Council      

 

 

/s/: Debra M. Kemp    

Interim City Clerk