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HomeMy WebLinkAboutReso RDA 17-2005 RESOLUTION NO. 17-2005 REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO STATE OF CALIFORNIA A RESOLUTION DECLARING INTENTION TO REIMBURSE REDEVELOPMENT CAPTAL EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO WHEREAS, the City of South San Francisco ("the City") has already appropriated budgets for several capital projects, shown in Exhibit A and hereby incorporated as part of this Resolution ("the Projects)"; and WHEREAS, the construetion work on these Projects are not yet complete; and WHEREAS, the City and the Redevelopment Agency ("the Agency") would find it advantageous to preserve Redevelopment tax increment dollars, and therefore the Agency intends to issue debt and to use a portion of the proceeds of such debt to pay for, or reimburse expenditures made for the projeets prior to the issuance of 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 expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the Agency declares its official intent to reimburse the expenditures referenced herein. NOW, THEREFORE, the Redevelopment Agency of the City of South San Francisco hereby resolves as follows: 1. The Agency intends to issue debt obligations (the "Obligations") for the purpose of paying or reimbursing the City for payment of the costs of the Projects shown in Exhibit A. 2. The Agency hereby declares that it reasonably expects to payor that the City will pay certain costs of the Projects prior to the date of issuance of the Obligations and to use a portion of the proceeds of the Obligations for reimbursement of expenditures for the projects that are paid before the date of issuance of the Obligations. 3. The maximum principal amount of Obligations to be issued for the Projects described herein, and not expended as of August 10, 2005 is $9,250,000. NOW, THEREFORE, BE IT FURTHER RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Redevelopment Agency Board hereby declares its intent to reimburse Redevelopment capital expenditures from the issuance of debt Obligations. * * * * * * I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the 24th day of August, 2005 by the following vote: AYES: Boardmembers Richard A. Garbarino. Pedro Gonzalez and Karvl Matsumoto. Vice Chair Joseph A. Femekes and Chair Raymond L. Green NOES: None ABSTAIN: None ABSENT: None ATTEST: /Cf~"~ t/1.i1~~ ., Clerk Exhibit A: Description of the Projects to RDA Resolution No. 17-2005 Description: Estimated Capital Expenditures Not Expended as of 60 days Prior to August 24,2005: Health Center and IT Building Improvements $ 500,000 Oak Ave. Extension 2,507,000 Misc. Land Acquisition not for Resale 2,500,000 New Downtown Fire Station Improvements 3,700,000 Bay Trail Improvements 18,000 Sidewalk Rehabilitation 25,000 TOTAL $9,250,000