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HomeMy WebLinkAboutR-8467 Intention to Reimburse Expenditures Relating to Purchase of Property (314-350 Higuera St)RESOLUTION NO. 8467 (1995 SERIES) ,kifiL, A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO DECLARING INTENTION TO REIMBURSE EXPENDITURES RELATING TO PURCHASE OF PROPERTY (314 -350 HIGUERA STREET) FROM THE PROCEEDS OF OBLIGATIONS OF THE CITY AND DIRECTING CERTAIN ACTIONS WHEREAS, the City has previously advanced funds, and expects to make future advances, to finance a purchase of real property (the "Project ") , and in order to provide funds to finance the Project, the Council intends to issue debt for such Project and to use a portion of the proceeds of such debt to reimburse expenditures made for the Project prior to the issuance of the debt; and WHEREAS, United. States Income Tax Regulations, Section 1.150- 2, 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, one of which is a requirement that (with certain exceptions) , prior to the payment of any such expenditures, the issuer declare an intention to reimburse such expenditures 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 by the Council of the City of San Luis Obispo as follows:, SECTION 1. The Council hereby declares that it reasonably expects to issue obligations (the "Obligations ") for the purpose of paying costs of (i) the acquisition and improvement of property, known as 314 -350 Higuera Street, to be used for street widening, assisting in flood control, compliance with the City's Adopted Downtown Physical Concept Plan and Bicycle Transportation Plan. SECTION 2. The Council hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the date of issuance of the Obligations and (ii) to use a portion of the proceeds of the Obligation for reimbursement of expenditures for the Project that are paid before the date of issuance of the Obligations. SECTION 3. The maximum principal amount of the Obligations is $1,000,000. R 8467 Resolution No. 8467 (1995 Series) On motion of Council Mbr. Smith. , seconded by Council Mr. Romero and on the following roll call vote: AYES: Council Members Smith, Romero, Williams, Roalman and Mayor Settle NOES: None ABSENT: None the foregoing resolution was passed and adopted this 7th day of November , 1995. MAYOR ALLEN SETTLE ATTEST: Acting City Cle c, K m Condon i A or ' H:MATHPROP.RES r'� / \ G'•'' ���� � ��