HomeMy WebLinkAboutRDA RES 502RESOLUTION NO. 502
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
__ DECLARING ITS INTENT TO ISSUE BONDS OR OTHER
OBLIGATIONS OR CAUSE BONDS OR OTHER OBLIGATIONS TO BE
ISSUED TO FINANCE THE INSTALLATION AND CONSTRUCTION OF
THE PORTOLA AVENUE BRIDGE AND TO REIMBURSE CERTAIN
EXPENDITURES FROM PROCEEDS OF THE BONDS
RECITALS:
A. The Palm Desert Redevelopment Agency (the "Agency") intends to issue
bonds or other obligations (the "Bonds"), or cause Bonds to be issued, to �nance the
costs of the installation and construction of the Portola Avenue Bridge and appurtenant
work (the "Project").
B. The Agency or the City expects to expend moneys (other than moneys
derived from the issuance of bonds or other obligations) on expenditures relating to the
costs of the Project prior to the issuance of the Bonds. All expenditures will be properly
chargeable to a capital account under general federal income tax principles. The
Agency reasonably expects to reimburse such capital expenditures with the proceeds of
the Bonds.
C. The Agency
will be issued to pay for
exceed $6,000,000.00.
expects that the maximum principal amount of Bonds which
the costs of the Project (and related issuance costs) will not
D. At the time of the reimbursement, the Agency will evidence the
reimbursement in a writing which identifies the allocation of the proceeds of the 6onds
for the purpose of reimbursing the Agency for the capital expenditures made prior to the
issuance of the Bonds.
E. The Agency expects to make the reimbursement allocation no later than
18 months after the later of (i) the date on which the earliest original expenditure for the
Project is paid or (ii) the date on which the Project is plac.�d in service (or abandoned),
but in no event later than three years after the date on which the earliest original
expenditure for the Project is paid.
F. The Agency will not, within one year of the reimL�ursement allocation, use
the proceeds of the Bonds received in the reimbursement allo�ation in a manner that
will result in the creation of replacement proceeds of the Bonds or another issue (e.g.,
the Agency will not pledge or use the proceeds received for the p�yment of debt service
on the Bonds or another issue, except that the proceeds of the Bonds can be deposited
in a bona fide debt service fund).
P6401 / 1033/821411.1
RESOLUTION NO. 502
G. This Resolution is intended to be a"declaration of official intent" in
accordance with Section 1.150-2 of the Treasury Regulations.
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. In accordance with Section 1.150-2 of the Treasury Regulations, the
Agency hereby declares its intention to issue Bonds, or cause Bonds to be issued, in a
principal amount not expected to exceed $6,000,000.00, the proceeds of which will be
used to pay for the costs of the Project (and related issuance costs), including the
reimbursement to the Agency or the City for capital expenditures relating to the Project
made prior to the issuance of the Bonds.
Section 2. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 9th day of June 2005, by the
following vote to wit:
AYES: BENSON, FERGUSON, KELLY, SPIEGEL, and CRITES
NOES: NONE
ABSENT: NONE
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P6401/1033/821411.1