HomeMy WebLinkAboutRes1999-151
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Supported by: Janke
CITY OF SEWARD, ALASKA
RESOLUTION 99-151
A RESOLUTION OF THE CITY OF SEWARD, ALASKA
APPROVING UP TO $3,000,000 OF CITY OF SEWARD, ALASKA
NONRECOURSE GRANT ANTICIPATION NOTES, 1999 (ALASKA
SEALIFE CENTER PROJECT) TO PAY OPERATING EXPENSES OF THE
ALASKA SEALIFE CENTER AND TO PAY PRINCIPAL AND INTEREST
ON THE CITY'S REVENUE BONDS, 1996 (ALASKA SEALIFE CENTER
PROJECT); AND PROVIDING FOR RELATED MATTERS
WHEREAS, in May 1996 the City of Seward (the "City") issued its $17,500,000 Revenue
Bonds, 1996 (Alaska Sealife Center Project) (the" 1996 Bonds"), and loaned the proceeds of the
1996 Bonds to Seward Association for the Advancement of Marine Science ("SAAMS") to pay the
cost of constructing the Alaska Sealife Center (the "Center") in the City; and
WHEREAS, SAAMS expects to receive a grant from the federal government in the amount
of $5.5 million (the "Grant") during the federal government fiscal year commencing October 1,
1999; and
WHEREAS, SAAMS intends to apply the proceeds ofthe Grant to pay operating expenses
of the Center, and to defease or retire a portion of the 1996 Bonds; and
WHEREAS, SAAMS expects that, before proceeds ofthe Grant become available, it will
require additional funds to pay operating expenses of the Center and to pay principal and interest
on the 1996 Bonds, and SAAMS has requested that the City issue its not to exceed $3,000,000
Nonrecourse Grant Anticipation Notes, 1999 (Alaska Sealife Center Project) (the "1999 Notes")
to provide funds to pay operating expenses ofthe Center and to pay principal and interest on the
1996 Bonds until proceeds ofthe Grant become available; and
WHEREAS, the principal and interest on the 1999 Notes will be payable only from the
proceeds of the Grant and other revenues of SAAMS, there will be no recourse to the City for the
payment of principal and interest on the 1999 Notes, and neither the faith and credit nor the taxing
power of the City will be pledged to the payment of the 1999 Notes; and
WHEREAS, Section 147(f) ofthe Internal Code of1986 (the "Code") provides that interest
on the 1999 Notes will not be exempt from federal income taxation unless the issuer of the 1999
Notes has approved the 1999 Notes after a public hearing; and
WHEREAS, a public hearing on the 1999 Notes has been duly noticed and held in the City,
and the council finds that the use of the proceeds of the 1999 Notes to finance operating expenses
of the Center and payments of principal and interest on the 1996 Bonds is in the best interest ofthe
City and its residents;
CITY OF SEWARD, ALASKA
RESOLUTION 99-151
NOW, THEREFORE, BE IT RESOLVED by the Council ofthe City of Seward,
Alaska as follows:
Section 1. The issue by the City of the 1999 Notes in a principal amount of not to
exceed $3,000,000 to provide funds to SAAMS to finance operating expenses of the Center and
payments of principal and interest on the 1996 Bonds in anticipation of the receipt by SAAMS of
the Grant, is hereby approved. This constitutes the public approval of the 1999 Notes by the City
that is required under Section 147(f) of the Code.
Section 2. This resolution shall become effective upon passage and approval in
accordance with Seward City Code g2.15.050.C.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,
this 13th day of December 1999.
THE CITY OF SEWARD, ALASKA
L~ f'b..L.t 4 .J
Edgar Blatchford, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Calhoon, Clark, King, Orr, Shafer
None
None
Brossow
ATTEST:
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Patrick Reilly . . i .. .
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