HomeMy WebLinkAboutEDA RES 2007-09
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2007-09
DECLARING THE OFFICIAL INTENT OF THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
TO REIMBURSE CERTAIN EXPENDITURES FROM
nm PROCEEDS OF BONDS TO BE ISSUED BY THE AUTHORITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. S l.l50-2
(the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse
prior expenditmes will not be deemed spent w11ess certain requirements are met; and
WHEREAS, the Columbia Heights Economic Development Authority (the "Authority"), or
the City of Columbia Heights on behalf of the Authority, expects to incm certain expenditures that
may be financed temporarily from somces other than bonds, and reimbursed from the proceeds of a
tax-exen1pt bond;
WHEREAS, the Authority has determined to make this declaration of official intent (the
"Declaration") to reimbmse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE COLUMBIA HEIGl-ITS ECONOMIC DEVELOPMENT AUTHORITY AS FOLLOWS:
1. The Authority, in cooperation with the City, proposes to undertakc the acquisition
ffi1d betterment of two municipal liquor stores (the "Project").
2. The Authority, or the City on behalf of the Authority, reasonably expects to
reimburse the expenditmes made for celtain costs of the Project ii'om the proceeds of bonds in an
estin1ated maximum principal amow1t of $4,500,000.00. All reimbmsed expenditmes will be
capital expenditures, costs of issuance of the bonds, or other expenditures eligible for
reimbursement under Section l.l50-2(d)(3) of the Reimbmsement Regulations.
3. This Declaration has been made not later thffi1 60 days after payment of ffi1Y
original expenditure to be subject to a reimbmsement allocation with respect to the proceeds of
bonds, except for the following expenditmes: (a) costs of issuance of bonds; (b) costs in an ffinount
not in excess of the lesser 01'$100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary
expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue
or issues that finance or are reasonably expected by the Authority to finance the project for which
the preliminary expenditures were incurred. The term "preliminffiY expenditures" includes
architectural, engineering, surveying, bond issuance, and similar costs that me incmred prior to
conl1nenccment of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencemcnt of construction.
4. This Declaration is an expression of the reasonable expectations of the Authority
based on the facts and circumstances known to the Authority as of the date hercof. The
anticipated original expenditures for the Projcct and the principal amount of the bonds described
in paragraph 2 are consistent with the Authority's and the budgetary and financial circumstances.
No sources other than proceeds of bonds to be issucd by the Authority are, or arc reasonably
expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the
Authority's or the City's budget or financial policies to pay such Project expenditures.
5. This Declmation is. intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
(The remainder ofthis page is intentionally left blank.)
2
Approved by the Board ofCOlmnissioners of the Columbia Heights Economic Development
Authority this r:i 1 day of '11f.o.-uJ., 2007.
-
Attest:
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTH liT
--.,
3