RESOLUTION NO. 2014-URA-03
A RESOLUTION AUTHORIZING THE ISSUANCE OF AN URBAN RENEWAL BOND IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $2,000,000.
WHEREAS, the Urban Renewal Agency of the City of Hood River finds it desirable to incur up to $2,000,000 of additional indebtedness in the form of an urban renewal bond; and,
WHEREAS, the City of Hood River has chosen Option One for the Columbia Cascade Development Area as provided in ORS 457.435(2)(a) and the city and the Agency are authorized to impose the special levy described in that statute; and,
WHEREAS, the City of Hood River has approved a maximum indebtedness for the Columbia Cascade Development Area of $19,298,162, and the Agency has capacity to incur indebtedness for the Columbia Cascade Development Area; now, therefore,
NOW, THEREFORE, the Urban Renewal Agency of the City of Hood River, Oregon, resolves as follows:
Section 1. Definitions.
For purposes of this Resolution, the following capitalized terms shall have the following meanings unless the context clearly requires otherwise:
“2014 Bonds” means the Agency’s Urban Renewal Bonds, Series 2014 which are au theorized by Section 2 of this Resolution.
“Agency Official” means the Finance Director of the City, the City Manager of the City or the person designated in writing by the Finance Director or City Manager to act as Agency Official under this Resolution.
“Agency” means the Urban Renewal Agency of the City of Hood River, Oregon.
“Area” means the Columbia Cascade Urban Renewal Area which is described in the Plan, and all additions thereto.
“City” means the City of Hood River, Oregon, a city duly organized and existing under and by virtue of the laws of the State of Oregon and the Charter of the City.
“Code” means the United States Internal Revenue Code of 1986, as amended.
“Plan” means the Agency’s Columbia Cascade Urban Renewal Plan, which is dated September 14, 1987, approved by City Ordinance No. 1589, and as amended by City Ordinance No. 1646, dated August, 1991; City Ordinance No. 1707, dated July, 1994; City Ordinance No. 1753, dated June, 1998; and City Ordinance No. 1992, dated November, 2010, and as the plan may be amended from time to time.
“Projects” means the projects described in the Plan, including infrastructure improvements within the Area.
“Resolution” means this resolution authorizing the 2014 Bonds.
“Tax Increment Fund” means the fund established under ORS 457.440(3) to hold the Tax Increment Revenues.
“Tax Increment Revenues” means (a) all revenues from the “divide the taxes” urban renewal collections under ORS 457.440 for the Area; plus, (b) all collections resulting from the special levy (as described in ORS 457.435(2)(a)); plus (c) all earnings on those amounts while they are held in the Tax Increment Fund.
Section 2. Authorization for Bonds. Pursuant to ORS Chapter 457, the Agency hereby authorizes the issuance of the 2014 Bonds in a principal amount not to exceed $2,000,000, and the proceeds of the 2014 Bonds shall be used to finance the Projects, to fund a debt service reserve, if required, and to pay costs of issuing the 2014 Bonds.
Section 3. Security. The 2014 Bonds shall be a special obligation of the Agency payable solely from the Tax Increment Revenues and other amounts that are pledged to the 2014 Bonds pursuant to Sections 4.2 below. The pledge of the Tax Increment Revenues and any other amounts shall be made on a priority determined by the Agency Official pursuant to Section 4.2 below.
Section 4. Delegation. The Agency Official may, on behalf of the Agency and without further action by the Board of the Agency:
4.1. Issue the 2014 Bonds in one or more series, any of which may be sold at different times.
4.2. Pledge Tax Increment Revenues, the proceeds of each series of the 2014 Bonds, and related amounts to secure each series of the 2014 Bonds and determine the priority of such pledge relative to any outstanding obligations of the Agency for which any and all Tax Increment Revenues are pledged.
4.3. Enter into covenants for the benefit of the owners of each series of the 2014 Bonds and future lenders if the Agency Official determines such covenants are desirable to sell the 2014 Bonds on favorable terms, including but not limited to covenants that: (i) require the Agency not to reduce collection of Tax Increment Revenues below specified amounts; (ii) prohibit borrowings that have a lien on the Tax Increment Revenues that is superior to the lien that secures each series of the 2014 Bonds; (iii) limit the amount of future borrowings that may be issued; (iv) restrict the deposit and application of Tax Increment Revenues to insure timely payment of each series of the 2014 Bonds; (v) establish a reserve requirement for each series of the 2014 Bonds; and (vi) limit the ability of the Agency to reduce the boundaries of the Area.
4.4. Enter into additional covenants for the benefit of the purchasers of each series of the 2014 Bonds which the Agency Official determines are desirable to sell the 2014 Bonds on favorable terms.
4.5. Engage the services of consultants or any other professionals whose services are desirable for the financing.
4.6. Determine the final principal amount of each series of 2014 Bonds, the interest rate or rates which each series of 2014 Bonds shall bear, the City’s prepayment rights and other terms of each series of 2014 Bonds.
4.7. Solicit bids for the purchase of the 2014 Bonds and place any series of 2014 Bonds directly with a commercial bank or other lender.
4.8. Issue any qualifying series of 2014 Bonds as “tax-exempt bonds” bearing interest that is excludable from gross income under the Code and enter into covenants to maintain the excludability of interest on those 2014 Bonds from gross income under the Code.
4.9. If federal law changes to allow federal tax credits, federal interest rate subsidies or other federal benefits for any series of 2014 Bonds, issue any qualifying series of 2014 Bonds as “tax credit bonds,” “federal subsidy bonds” or other obligations that are eligible for federal tax credits, federal interest rate subsidies or other federal benefits, and enter into any covenants and take any actions that are required to qualify for those federal benefits.
4.10. Issue any series of 2014 Bonds as “taxable bonds” bearing interest that is includable in gross income under the Code.
4.11. Designate any qualifying series of 2014 Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Code, if applicable.
4.12. Execute and deliver any other certificates or documents and take any other actions which the Agency Official determines are desirable to carry out this Resolution.
Section 5. Effective Date. This resolution shall be effective upon its adoption.
ADOPTED by the Urban Renewal Agency of the City of Hood River, Oregon, this 24th day of March, 2014.
Urban Renewal Agency of the City of Hood River, Oregon
Hoby Streich, Chair
Ross Schultz, Interim Administrator