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HomeMy WebLinkAboutResolution No. 2010-38 RESOLUTION NO. R2010-38 A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS, EXPRESSING OFFICIAL INTENT THAT EXPENDITURES PAID IN CONNECTION WITH THE DESIGN, PLANNING, ACQUISITION AND CONSTRUCTION OF STREET IMPROVEMENTS AND RELATED INFRASTRUCTURE IN THE CITY OF FRIENDSWOOD (PROJECT) THAT ARE MADE PRIOR TO THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS TO FINANCE THE PROJECT BE REIMBURSED AT THE TIME OF ISSUANCE OF SAID OBLIGATIONS. * * * * * * * * * WHEREAS, the City of Friendswood, Texas (the "Issuer"), is a home-rule city of the State of Texas, authorized to issue obligations to finance its activities pursuant to the Texas Government Code and other laws of the State, the interest on which is excludable from gross income for federal income tax purposes("tax-exempt obligations")pursuant to Section 103 of the Internal Revenue of 1986, as amended (the"Code"); and WHEREAS, the Issuer expects to pay, or have paid on its behalf, expenditures in connection with the design, planning, acquisition and construction of street improvements (sections of Blackhawk Boulevard, Oak Vista Drive, Wandering Trail and other City streets) and related infrastructure in the City of Friendswood (the "Project") prior to the issuance of tax-exempt obligations, tax-credit obligations and/or obligations for which a prior expression of intent to finance or refinance is required by Federal or state law(collectively and individually,the "Obligations")to finance the Project; WHEREAS, the Issuer finds, considers, and declares that the reimbursement for the payment of such expenditures will be appropriate and consistent with the lawful objectives of the Issuer and, as such, chooses to declare its intention to reimburse itself for such payments at such time as it issues Obligations to finance the Project; THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,TEXAS,THAT: Section 1. The Issuer reasonably expects to incur debt, as one or more series of Obligations, with an aggregate maximum principal amount equal to $3,500,000 for the purpose of paying the costs of the Project. Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No Obligations will be issued by the Issuer in furtherance of this Statement after a date which is later than 18 months after the later of(1)the date the expenditures are paid or(2)the date on which the property, with respect to which such expenditures were made, is placed in service. Section 3. The foregoing notwithstanding, no Obligation will be issued pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Section 4. The foregoing Sections 2 and 3 notwithstanding, all costs to be reimbursed with qualified tax credit obligations shall not be paid prior to the date hereof and no tax credit obligations shall be issued after 18 months of the date the original expenditure is made. Section 5. All resolutions and parts of resolutions in conflict herewith are hereby repealed to the extent of the conflict only. Section 6. If any word, phrase, clause, sentence, paragraph, section or other part of this resolution or the application thereof to any person or circumstance shall ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of this resolution and the application of such word, phrase, clause, sentence, paragraph, section, or other part of this resolution to any other person or circumstance shall not be affected thereby. PASSED, APPROVED AND ADOPTED, this 4th day of October, 2010 at a regular City Council meeting of the City of Friendswood. �__ ` ' ' J. . Smith Mayor ATTEST: F R�ENp o`� s�y -� o , �� ��,/� ; �.�-� ` v v Melinda Welsh,TRMC * tt City Secretary �,, y ���F OF SE+P R2010-3 8 2