03-883r
57
HRA RESOLUTION NO. 883
DECLARING THE OFFICIAL INTENT OF THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD TO REIMBURSE CERTAIN
EXPENDITURES FROM THE PROCEEDS OF
BONDS TO BE ISSUED BY THE AUTHORITY
WHEREAS, the Internal Revenue Service has issued Treas. Reg. ~ 1.150-2 (the
"Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to
reimburse prior expenditures will not be deemed spent unless certain requirements are
met; and
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield (the "Authority"), or Gramercy Corporation under a contract with the Authority,
expects to incur certain expenditures tnat may be financed temporarily from sources other
than bonds, and reimbursed from the proceeds of a tax-exempt bond;
WHEREAS, the Authority has determined to make this declaration of official intent
("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, AS FOLLOWS:
1. The Authority, in cooperation with the City, proposes to undertake the
following projects (the "Project").
City Bella Redevelopment Project
2. The Authority reasonably expects to reimburse the expenditures made for
certain costs of the Project from the proceeds of bonds in an estimated maximum principal
amount of $9,000,000. All reimbursed expenditures will be capital expenditures, costs of
issuance of the bonds, or other expenditures eligible for reimbursement under Section
1.150-2( d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of
any original expenditure to be subject to a reimbursement allocation with respect to the
proceeas of bonds, except for the following expenditures: (a) costs of issuance of bonds;
(b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue;
or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the
aggregate issue price of the issue or issues that finance or are reasonably expected by the
Authority to finance the project for which the preliminary expenditures were incurred. The
term "preliminary expenditures" includes architectural, engineering, surveying, bond
issuance, and similar costs that are incurred prior to commencement of acquisition,
construction or rehabilitation of a project, other than land acquisition, site preparation, and
similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the
Authority based on the facts and circumstances known to the Authority as of the date
hereof. The anticipated original expenditures for the Project and the principal amount of
the bonds described in paragraph 2 are consistent with the Authority's and the
budgetary and financial circumstances. No sources other than proceeds of bonds to be
issued by the Authority are, or are reasonably expected to be, reserved, allocated on a
long-term basis, or otherwise set aside pursuant to the Authority's or the City's budget
or financial policies to pay such Project expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
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. . App~oved by the Housing and Redevelop.r1J.,e....n.J:/ Authority in and for the City of
Richfield thiS 21st day of January 2003. ...../\/?t1 . ..A. 'ii' /1./
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1homas E. Harms, Chairperson