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HomeMy WebLinkAboutRes1983-046 . . . . e e CITY OF SEWARD, ALASKA RESOLUTION NO. 83-46 A ME N GEcf~ is 'I K" s' No, Z)'-t -4-7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DETERMINING TO SELL REVENUE BONDS TO PROVIDE FUNDS TO FINANCE CERTAIN FACILITIES WITHIN THE CITY WHEREAS, the City of Seward, Alaska is a home rule city and under Section 11 of Article X of the Alaska Constitution may exercise all legislative power not prohibited by law or by the Charter of the City, and it has been determined that the matters set forth in this resolution are not prohibited by law or the Charter; and WHEREAS, the City intends to authorize the issuance of revenue bonds to finance the acquisition and construction of docks, wharves and other marine terminal facilities in the City, more fully described in Exhibit "A" attached hereto (the "Project"); and WHEREAS, the business enterprise described in said Exhibit "A" (the "Company") intends to acquire and improve the property and related facilities which comprise the Project; and WHEREAS, the Company has requested the City to issue and sell its revenue bonds for the purpose of paying all or a portion of the cost of the Project; and WHEREAS, it is considered essential that acquisition and construction of the Project be completed at the earliest practicable date, but, at the same time, the Company wishes to begin acquisition and construction of the Project only after satisfactory assurances from the City that the proceeds from the sale of the revenue bonds of the City in an amount necessary to pay all or a portion of the cost of the Project will be made available to finance the Project; and WHEREAS, the City considers that the acquisition, purchase, construction, improvement and equipping of the Project and the financing of the same will promote the public purposes of the City; and WHEREAS, Treasury Regulations Section 1.103-8(a)(S) adopted under Section 103 of the Internal Revenue Code of 1954, as amended (the "Code"), requires that in order for interest on industrial development bonds to be exempt from Federal income tax, the issuer of such bonds must adopt a bond resolution with respect to such bonds or take some other similar official action toward the issuance of such bonds prior to the commencement of construction or acquisition of the facilities which constitute the Project; and WHEREAS, one of the purposes of this resolution is to satisfy the requirements of such regulations; -1- . . . e e CITY OF SEWARD, ALASKA RESOLUTION NO, 83-46 NOW. THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD. ALASKA, that: Section 1. In order to insure the acquisition or construction of the Project, with the resulting public benefits which will flow from the operation thereof, the City will issue and sell its revenue bonds (the "Bonds") in a principal amount sufficient to pay the cost of financing all or a portion of the Proj ect described in Exhibit "A", together with costs incident to the authorization, sale and issuance of the Bonds, The Bonds shall not be payable from any taxes levied by the City and shall not be a charge against the credit or taxing power of the City, The aggregate cost of the portion of the Project to be financed by the City, which is the amount of the Bonds to be issued by the City for the Project, is presently estimated to be the amount stated on Exhibit "A", The City consents to the location of the Project. construct project. Section or to to the 2, The proceeds of the Bonds will be acquire the Project and to improve and used equip Section 3, The City will enter into a financing agreement with respect to the Project on terms mutually agreeable to the City and the Company providing for payments by the Company equal to principal and interest on the Bonds, Section 4, It is intended that this resolution shall constitute "some similar official action" toward the issuance of the Bonds within the meaning of Section 1.103-8(a)(5) of the Treasury Regulations, Section 5, This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 25 day of July . 1983, THE CITY OF SEWARD, ALASKA q~~YOR AYES: NOES: ABSENT: ABSTAIN: Burgess. Cripps, Gillespie, Meehan and Swartz None O'Brien and Wilson None -2- . e CITY OF SEWARD, ALASKA RESOLUTION NO, 83-46 ATTEST: . . (City -2,1- e APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska ~~f?/u~ Fred B, Arvidson, City Attorney