CC Resolution 8624
RESOLUTION NO.
8624
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF CAMPBELL
DECLARING INTENTION TO REIMBURSE
EXPENDITURES FROM THE PROCEEDS OF T AX-EXEMPT OBLIGATIONS
AND DIRECTING CERTAIN ACTIONS
WHEREAS, the City Council of the City of Campbell (the "City") is proposing to loan
monies to the Redevelopment Agency of the City of Campbell (the "Agency") for the purpose of
purchasing real property located within the City of Campbell which is formerly known as the
Winchester Drive-In and located at 535 Westchester Drive, Campbell, California (the "Property");
and
WHEREAS, the City expects that the Agency and/or the City will expend monies in
anticipation of purchasing the Property and in connection with conforming the Property to the
anticipated uses of the City and/or the Agency (the "Project"); and
WHEREAS, the City intends to issue, or cause the Agency to issue, tax-exempt obligations
(the "Obligations") for the purpose, among other things, ofreimbursing the City for the amounts to
be loaned to the Agency for the purchase of the Property and the City and/or the Agency for
amounts expended in connection with the purchase of the Property and the acquisition and
construction of the Project; and
WHEREAS, United States Income Tax Regulations section 1.103-18 provides generally
that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for
reimbursement of expenditures made prior to the date of issuance of such debt unless certain
procedures are followed, among which is a requirement that (with certain exceptions), prior to the
payment of any such expenditure, the issuer must declare an intention to reimburse such
expenditure; and
WHEREAS, it is in the public interest and for the public benefit that the City declare its
official intent to reimburse the expenditures referenced herein;
NOW, THEREFORE, BE IT RESOLVED that the Campbell City Council DECLARES
and ORDERS as follows:
I. The City intends to issue, or cause the Agency to issue, the Obligations for the purpose
of paying the costs of financing the purchase of the Property and the acquisition and construction
of the Project.
2. The City hereby declares that it reasonably expects that a portion of the proceeds of the
Obligations will be used for reimbursement of expenditures for the purchase of the Property and
the acquisition and construction of the Project that are paid before the date of initial execution and
delivery of the Obligations.
3. The maximum amount of proceeds of the Obligations to be used for reimbursement of
expenditures for the purchase of the Property and the acquisition and construction of the Project
that are paid before the date of initial execution and delivery of the Obligations is $10,000,000.
4. The foregoing declaration is consistent with the budgetary and financial circumstances
of the City in that there are no funds (other than proceeds of the Obligations) that are reasonably
expected to be (i) reserved, (ii) allocated or (iii) otherwise set aside, on a long-term basis, by or on
behalf of the City or any entity controlled by the City, for the expenditures for the purchase of the
Property and the acquisition and construction of the Project that are expected to be reimbursed from
the proceeds of the Obligations.
5. Within not more than thirty (30) days following the date of adoption of this Resolution,
the City Clerk of the City is directed to make this Resolution available to the public at the
customary location of public records of the City. The City Clerk of the City is hereby further
directed to assure such public availability until the date of initial execution and delivery of the
Obligations.
6. This resolution is a declaration of official intent under Income Tax Regulations section
1.103-18.
* * * * *
PASSED AND ADOPTED this 15th
by the following roll call vote:
day of
March
, 1994,
AYES:
NOES:
Councilmembers:
Conant, Ashworth, Burr, Dougherty, Watson
Councilmembers:
None
ABSENT:
Councilmembers:
None
ATTEST:
APPROVED:
'1
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Of w. ~. ~ ~
eanette Watson, Mayor
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