HomeMy WebLinkAboutCity Council Resolution 2023-210
C ITY OF P LYMOUTH
R ESOLUTION N O. 2023-210
R ESOLUTION D ECLARING O FFICIAL I NTENT TO R EIMBURSE THE C ITY FOR E XPENDITURES
M ADE IN C ONNECTION WITH A C ERTAIN P ROJECT FROM THE P ROCEEDS OF T AX-E XEMPT
B ONDS TO BE I SSUED IN C OMPLIANCE WITH R EIMBURSEMENT B OND R EGULATIONS UNDER
THE I NTERNAL R EVENUE C ODE
WHEREAS, the Internal Revenue Service has issued Treasury Regulations, Section 1.150-2 (as the
same may be amended or supplemented, the "Regulations"), dealing with "reimbursement bond"
proceeds, being proceeds of bonds used to reimburse the City for any project expenditure paid by the
City prior to the time of the issuance of such bonds; and
WHEREAS, the Regulations generally require that the City (as the issuer of or the primary obligor
under the bonds) make a declaration of intent to reimburse itself for such prior expenditures out of the
proceeds of the bonds, that such declaration be made not later than 60 days after the expenditure is
actually paid, and that the bonding occur and the written reimbursement allocation be made from the
proceeds of the bonds within 18 months after the later of (1) the date of payment of the expenditure or
(2) the date the project is placed in service (but in no event more than 3 years after actual payment).
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Plymouth, as
follows:
1. Official Intent Declaration. Pursuant to the Regulations, the City hereby declares its official intent to
reimburse itself for paid project expenditures out of the proceeds of bonds (the "Bonds")
anticipated to be issued in late 2023 or in 2024 (the "Declaration"). This Declaration relates to the
City Center 2.0 Project designated by the City (the "Project") and the costs to be financed by the
Bonds issued therefor, in the approximate maximum principal amount of $16,000,000 (plus such
additional principal amount necessary to provide for costs of issuance, net original issue discount,
credit enhancement and any debt service reserve fund). The location of the Project shall be
approximately the area north of Highway 55, south of Rockford Road, and surrounding Vicksburg
Lane and Plymouth Boulevard, within the City.
2. Reasonable Expectations. The City reasonably expects to reimburse itself for the payment of the
costs of the Project out of the proceeds of the Bonds to be issued after the date of payment of such
costs. As of the date hereof, the statements and expectations contained in this Declaration are
believed to be reasonable and accurate.
3. Permitted Reimbursable Capital Expenditures. Each expenditure to be reimbursed from the Bonds is
or will be a capital expenditure or a cost of issuance, or any of the other types of expenditures
described in Section 1.150-2(d)(3) of the Regulations.
4. Limitations. The provisions of this Resolution are intended to have no application, to payments of
City project costs first made by the City out of the proceeds of bonds issued prior to the date of such
payments.
Resolution 2023-210
Page 2
5. Effective Date. This resolution is effective upon the date of its approval.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota,
certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on
August 8, 2023, with the original thereof on file in my office, and the same is a correct transcription
thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the city this ________day of
_______________________, 2023.
__________________________________
City Clerk