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2014-029 - Approving the Form And Authorizing the Execution of Certain Lease Financing Documents
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2014-029 - Approving the Form And Authorizing the Execution of Certain Lease Financing Documents
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6/11/2014 11:29:49 AM
Creation date
6/11/2014 11:18:02 AM
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City Clerk
Doc Type
Resolution
Date
6/3/2014
Destruction Year
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WHEREAS, the payment of debt service on the 1998 Certificates is derived from <br />lease payments made by the City to the Authority under a lease agreement payable <br />from the City's General Fund (the "1998 Lease Agreement "); <br />WHEREAS, the 1998 Certificates are currently outstanding in the principal <br />amount of $8,015,000; <br />WHEREAS, the City has determined at this time, due to prevailing interest rates <br />in the municipal bond market and for other reasons, to refinance its obligations under <br />the 1994 Lease Agreement and with respect to the 1994 Bonds and to refinance its <br />obligations under the 1998 Lease Agreement and with respect to the 1998 Certificates; <br />WHEREAS, the City proposes to provide for the legal defeasance to maturity of <br />$33,550,000 (50 %) of the 1994 Bonds (the "Defeased 1994 Bonds ") and to provide for <br />the legal defeasance and redemption of the 1998 Certificates, and; <br />WHEREAS, it is in the public interest and for the public benefit that the City <br />Council authorize and direct execution of certain financing documents in connection <br />therewith; and <br />NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows: <br />Section 1. The City Council hereby approves the refinancing of the 1998 Lease <br />Agreement and the refunding of the 1998 Bonds. <br />Section 2. The below- enumerated documents be and are hereby approved, and <br />the Mayor, the City Manager, the Executive Director of Finance, or any designee <br />thereof, is hereby authorized and directed to execute said documents, with such <br />changes, insertions and omissions as may be approved by such official, the execution <br />thereof to be conclusive evidence of such approval, and the Clerk of the Council is <br />hereby authorized and directed to attest to such official's signature [A detailed list of <br />documents to be executed is attached hereto as Exhibit A]. <br />(a) a letter agreement for purchase among Western Alliance Public Finance, <br />Compass Bank, an Alabama banking corporation, Capital One Public Funding, LLC and <br />one or more additional investors to be selected (collectively, the "Purchasers "), the City <br />and the Authority, whereby the Purchaser agrees to acquire certain rights of the <br />Authority, including but limited to the lease payments to be made by the City under the <br />Resolution No. 2014 -029 <br />Page 2 of 5 <br />
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