HomeMy WebLinkAboutCity Council Resolution 2004-489CITY OF PLYMOUTH
RESOLUTION NO. 2004-489
RESOLUTION RELATING TO FINANCING OF A PROPOSED
PROJECT TO BE UNDERTAKEN BY THE CITY OF PLYMOUTH,
MINNESOTA, AND THE PLYMOUTH HOUSING AND
REDEVELOPMENT AUTHORITY, ESTABLISHING COMPLIANCE
WITH REIMBURSEMENT BOND REGULATIONS UNDER THE
INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council of the City of Plymouth,
Minnesota (the "City"), as follows:
Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the
Income Tax Regulations (the "Regulations") dealing with the issuance of bonds,
all or a portion of the proceeds of which are to be used to reimburse the City for
project expenditures made by the City prior to the date of issuance of the bonds.
(b) The Regulations generally require that the City make a declaration
of its official intent to reimburse itself for such prior expenditures out of the
proceeds of a subsequently issued series of bonds or notes within 60 days after
payment of the expenditures, that the bonds or notes be issued and the
reimbursement allocation be made from the proceeds of such bonds or notes
within the reimbursement period (as defined in the Regulations), and that the
expenditures reimbursed be capital expenditures or costs of issuance of the bonds
or notes.
(c) The City desires to comply with requirements of the Regulations
with respect to certain projects hereinafter identified.
2. Official Intent Declaration.
(a) The City and the Plymouth Housing and Redevelopment Authority
propose to undertake the following project or projects and to make original
expenditures with respect thereto prior to the issuance of reimbursement bonds or
notes, and the City reasonably expects to issue reimbursement bonds or notes for
such project or projects in the maximum principal amounts shown below:
Project
Public infrastructure improvements
including street and road improvements
in the Plymouth Housing and
Redevelopment Authority's Tax
Increment Financing (Redevelopment)
District No. 1-1
Maximum Amount of Bonds or Notes
Expected to be Issued for Project
(b) Other than (i) de minimis amounts permitted to be reimbursed
pursuant to Section 1.150-2(f)(1) of the Regulations or (ii) expenditures
constituting preliminary expenditures as defined in Section 1.150-2(f)(2) of the
Regulations, the City will not seek reimbursement for any original expenditures
with respect to the foregoing projects paid more than 60 days prior to the date of
adoption of this resolution. All original expenditures for which reimbursement is
sought will be capital expenditures or costs of issuance of the reimbursement
bonds or notes.
(c) The City may agree with the developer of the private facilities
within the tax increment district that the developer will undertake certain of the
public improvements described in paragraph (a). In that event, the City intends to
reimburse the developer for part or all of the costs of such public improvements
from the proceeds of reimbursement bonds or notes.
3. Budgetary Matters. As of the date hereof, there are no City funds
reserved, pledged, allocated on a long term basis or otherwise set aside (or reasonably
expected to be reserved, pledged, allocated on a long term basis or otherwise set aside) to
provide permanent financing for the original expenditures related to the project, other
than pursuant to the issuance of the reimbursement bonds or notes. Consequently, it is
not expected that the issuance of the reimbursement bonds or notes will result in the
creation of any replacement proceeds.
4. Reimbursement Allocations. The City's financial officer shall be
responsible for making the "reimbursement allocations" described in the Regulations,
being generally the transfer of the appropriate amount of proceeds of the reimbursement
bonds or notes to reimburse the source of temporary financing used by the City to make
payment of the original expenditures relating to the projects. Each reimbursement
allocation shall be made within 30 days of the date of issuance of the reimbursement
bonds or notes, shall be evidenced by an entry on the official books and records of the
City maintained for the reimbursement bonds or notes and shall specifically identify the
original expenditures being reimbursed.
Adopted by the City Council this 23rd day of November, 2004.
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