09/25/2012 Resolutions 2012-275 RESOLUTION 2012-275
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF GRAND ISLAND,
NEBRASKA, APPROVING THE ISSUANCE OF REDEVELOPMENT REVENUE BONDS
(LINCOLN PARK PROJECT— LIMITED TAX PLEDGE), SERIES 2012, IN THE PRINCIPAL
AMOUNT OF NOT TO EXCEES $1,800,000 BY THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA; APPROVING THE
CERTIFICATION AND LEVY OF LIMITED TAXES UPON TAXABLE PROPERTY WITHIN
THE CITY FOR PAYMENT OF PRINCIPAL AND INTEREST ON SAID BONDS AS THE
SAME FALL DUE; PROVIDING FOR THE CITY TO UNDERTAKE THE MAKING OF
CONTINUING DISCLOSURE FOR SUCH SERIES 2012 BONDS; PROVIDING FOR
CERTAIN DETERMINATIONS WITH RESPECT TO THE TAX-EXEMPT STATUS OF
INTEREST ON SUCH SERIES 2012 BONDS; AND PROVIDING FOR THE EFFECTIVENESS
OF THIS RESOLUTION.
BE IT RESOLVED by the Mayor and Council of the City of Grand Island, Nebraska, (the
"City"), as follows:
Section 1. The Mayor and Council hereby find and determine that the Community
Redevelopment Authority of the City of Grand Island, Nebraska, (the "Authority") has been duly
created and currently exists under the provisions of Ordinance No. 8021 of the City and Sections
18-2101 to 18-2144 and Sections 18-2147 to 18-2153, R.R.S. Neb. 2007, as amended (collectively,
the "Act"); that the Authority has agreed or is about to agree to issue and sell its Redevelopment
Revenue Bonds (Lincoln Park Pool Project— Limited Tax Pledge), Series 2012, in the aggregate
principal amount of not to exceed One Million Eight Hundred Thousand Dollars ($1,800,000)
(the "Bonds") in order to finance on behalf of the City the construction of a replacement
swimming pool facility for the City's Lincoln Park (the "Project") as a redevelopment project for
CRA Area #1 in accordance with a modification of an existing redevelopment plan entitled "Plan
Modification for CRA Area #1 (Lincoln Park Swimming Pool)" (including the prior plan as so
modified the"Plan") which Plan was approved by the Mayor and Council of the City on March 26,
2012; and that in connection with the issuance by the Authority of the Bonds it is necessary and
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appropriate for the City to make certain determinations and undertakings related to the Bonds and
for the benefit of the purchasers and owners thereof
Section 2. The City hereby acknowledges and confirms the pledges made for the
benefit of the owners of the Bonds as set forth in the Resolution. The City acknowledges that
amounts deposited to the Series 2012 Bond Payment Account are pledged to the payment of the
principal and interest on the Bonds as the same fall due. The City hereby acknowledges and agrees
that the Authority has agreed to certify, in accordance with the terms of Section 18-2107(11) of the
Act, annually to the Mayor and Council of the City a tax not to exceed 2.60 on each$100 of taxable
valuation in the City (the "Authority Taxes") and such taxes are to be employed to assist in the
defraying of expenses of redevelopment projects, including the payment of principal and interest on
the Bonds as issued to pay the cost of the Project; in that such taxes represent a property tax levy for
bonds as defined in Section 10-134 approved according to law and secured by a levy on property,
are not included in the levy limits established by Section 77-3442, R.R.S. Neb. 2009, or subject to
allocation under Section 77-3443, R.R.S. Neb. 2009, as amended; the Mayor and Council hereby
approve the terms and provisions of the Resolution and the issuance of the Bonds.
Section 3. In accordance with the requirements of Rule 15c2-12 (the "Rule")
promulgated by the Securities and Exchange Commission, the City, being the creating and
appointing body for the Authority and, effectively, the only "obligated person" with respect to the
Bonds, agrees that it will provide the following continuing disclosure information to the Municipal
Securities Rulemaking Board(the"MSRB")in an electronic format as prescribed by the MSRB:
(a) not later than seven months after the end of each fiscal year of the City (the
"Delivery Date"), financial information or operating data for the City of the type
included in the final official statement for the Bonds under the heading
"FINANCIAL STATEMENT" ("Annual Financial Information");
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(b) when and if available, audited financial statements for the City; audited financial
information shall be prepared on the basis of generally accepted accounting
principles and the standards applicable to financial audits contained in Governmental
Auditing Standards,issued by the Comptroller General of the United States; and
(c) in a timely manner not in excess of ten business days after the occurrence of the
event, notice of the occurrence of any of the following events with respect to the
Bonds:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial
difficulties;
(4) unscheduled draws on credit enhancements reflecting financial
difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the Bonds, or other material events affecting the
tax status of the Bonds;
(7) modifications to rights of the holders of the Bonds, if material;
(8) bond calls,if material, and tender offers;
(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the
Bonds, if material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar events of the City or
the Authority (this event is considered to occur when any of the following
occur: the appointment of a receiver, fiscal agent or similar officer for the
City or the Authority in a proceeding under the U.S. Bankruptcy Code or in
any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of
the assets or business of the City or the Authority, or if such jurisdiction
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has been assumed by leaving the existing governing body and officials or
officers in possession but subject to the supervision and orders of a court or
governmental authority, or the entry of an order confinuing a plan of
reorganization, arrangement or liquidation by a court or governmental
authority having supervision or jurisdiction over substantially all of the
assets or business of the City or the Authority);
(13) the consummation of a merger, consolidation,or acquisition involving
the City or the Authority or the sale of all or substantially all of the assets
of the City or the Authority, other than in the ordinary course of business,
the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other
than pursuant to its terms,if material;
(14) appointment of a successor or additional trustee or the change of
name of a trustee, if material.
Neither the City nor the Authority has undertaken to provide notice of the
occurrence of any other event, except the events listed above.
(d) in a timely manner, notice of any failure on the part of the City to provide
Annual Financial Information not later than the Delivery Date.
The City agrees that all documents provided to the MSRB under the terms of this
continuing disclosure undertaking shall be in such electronic format and
accompanied by such identifying information as shall be prescribed by the MSRB.
The City reserves the right to modify from time to time the specific types of
information provided or the foiinat of the presentation of such information or the
accounting methods in accordance with which such information is presented, to the
extent necessary or appropriate in the judgment of the City, consistent with the Rule.
The City agrees that such covenants are for the benefit of the registered owners of
the Bonds (including Beneficial Owners) and that such covenants may be enforced
by any registered owner or Beneficial Owner, provided that any such right to
enforcement shall be limited to specific enforcement of such undertaking and any
failure shall not constitute an event of default under the Resolution. The continuing
disclosure obligations of the City and the Authority, as described above, shall cease
when none of the Bonds remain outstanding.
Section 4. The Mayor and Council hereby state that it is the intention of the City
that interest on the Bonds as issued by the Authority shall be excludable from gross income under
the federal income tax by virtue of Section 103 of the Code and the Mayor and Council hereby
authorize the Mayor, the City Clerk and the City Treasurer(Finance Director) (or any one of more
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of them) to take all actions necessary or appropriate to carry out said intention and for obtaining
such interest exclusion. The City hereby covenants with Authority for the benefit of the purchasers
and owners of the Bonds that it will make no use of the proceeds of said issue, including monies
held in any sinking fund for payments on the Bonds, which would cause the Bonds to be "arbitrage
bonds" within the meaning of Section 103 and 148 and other related sections of the Code and
further covenants to comply with said Sections 103 and 148 and related sections and all applicable
regulations thereunder throughout the term of said issue, including all requirements with respect to
reporting and payment of rebates, if applicable. The City hereby confirms the designation by the
Authority of the Bonds (as issued by the Authority on behalf of the City) as the Authority's
"qualified tax-exempt obligations" pursuant to Section 265(b)(3)(B)(i)(III) of the Code and
covenants and warrants that the City does not reasonably expect to issue or have issued on its
behalf tax-exempt bonds or other tax-exempt interest bearing obligations (including the Bonds)
aggregating in principal amount more than $10,000,000 during calendar year 2012 (taking into
consideration the exception for current refunding issues). The officers of the City(or any one of
them) are hereby authorized to make allocations of the Bonds (as to principal maturities) and any
other bonds or obligations issued by or on behalf of the City and of the proceeds of the Bonds
and debt service funds of the City as may be deemed appropriate under the federal tax laws and
regulations. Any allocations made and determinations set forth in a certificate by an officer of
the City (which may be in cooperation with any certification provided by the Authority) shall be
and constitute authorized determinations made on behalf of the City with the same force and
effect as if set forth in this Resolution.
Section 5. The officers of the City (or any one or more of them), as and to the
extent not authorized to do so by other provisions of this Resolution, are hereby authorized to take
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any and all action and to execute and deliver any and all instruments and certifications determined
necessary or appropriate on behalf of the City in connection with the issuance of the Bonds. If any
section,paragraph, clause or provision of this Resolution shall be held invalid, the invalidity of such
section,paragraph, clause or provision shall not affect any of the other provisions of this Resolution.
Section 6. This Resolution shall be in force and take effect from and after its
adoption as provided by law.
PASSED AND APPROVED this 25th day of September 2012. 1
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ATTEST:
Pan)OS- KS..43
City Clerk
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