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HomeMy WebLinkAboutRESO 7956RESOLUTION NO. 7956 --'--'-"--'-----RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY AND DIRECTING CERTAIN ACTIONS The Council of the City of Palo Alto does hereby RESOLVE as follows: WHEREAS, the City proposes to undertake the project referenced below, to issue debt for such project and to use a portion of the proceeds of such debt to reimburse expenditures made for the project prior to the issuance of the debt; WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement o.f expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions) , prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse the expenditures referenced herein. NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The City intends to issue obligations (the "Obligations II) for the purpose of paying the costs of acquiring and improving a public park along Homer Avenue between Waverley Street and Bryant Street, acquisition and improvement of the Roth Building at 300 Homer Avenue, and other development obligations .of the City with respect to the South of Forest Coordinated Area Plan (the "Project"). SECTION 2. The City hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the date of issuance of the Obligations, and (ii) to use a portion of the proceeds of the Obligations for reimbursement of expenditures for the Project that are paid before the date of issuance of the Obligations. II II 000406 cl 0032323 1 SECTION 3. The maximum principal Obligations is $12,500,000. INTRODUCED AND PASSED: April 10, 2000 amount AYES: BEECHAM, BURCH, EAKINS, KLEINBERG, KNISS, LYTLE, MOSSAR NOES: ABSENT: FAZZINO NOT PARTICIPATING: OJAKIAN ABSTENTIONS: ~.City Clerk APPROVED AS TO FORM: ~~. 0, c.--1)_~ §enior Asst. City Attorney 000406 cl 0032323 APPROVED: 2 of the