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HomeMy WebLinkAbout2006 07_OPWA_approve tulsa industrial authority bond_2006.11.07 THE OW ASSO PUBLIC WORKS AUTHORITY RESOLUTION NO. 2006-07 RESOLUTION GIVING APPROVAL TO THE ISSUANCE OF REVENUE BONDS BY THE TULSA INDUSTRIAL AUTHORITY AND AUTHORIZING EXECUTION OF AN INTERLOCAL COOPERATION AND ALLOCATION AGREEMENT BE IT RESOLVED by the Tmstees of The Owasso Public Works Authority (the "Authority"), as follows: 1. The Young Men's Christian Association of Greater Tulsa, Tulsa County, Oklahoma, an Oklahoma nonprofit corporation ("Borrower"), has advised the Authority of its desire to obtain financing (including refinancing of interim indebtedness incurred) for various facilities located both within and without the corporate limits of Tulsa, Oklahoma, including a recently opened YMCA facility located at 8300 Owasso Expressway, and the constmction and equipping of an approximately 4,000 square foot addition thereto (the "Project") in the City of Owasso (the "City") with revenue bonds or obligations (the "Bonds") to be issued by the Tulsa Industlial Authority (the "Issuer"), under the authority of Title 60, Oklahoma Statutes, Sections 176 et seq. and Title 74, Oklahoma Statutes, Section 1001 et seq. 2. Section 147(f) ofthe Internal Revenue Code of 1986, as amended (the "Code"), requires that the applicable elected representative of each governmental unit in which facilities to be financed or refinanced by the Bonds are located must approve the issuance of the Bonds, following a public hearing, called and held in accordance with Section 147(f) of the Code. The Authority has called a public hearing in accordance with such requirements, has, on the date hereof, held the hearing, and will request that the City Council of the City of Owasso, as the applicable elected representative, approve the issuance of the Bonds. The Authority hereby approves the issuance of the Bonds. 3. The Borrower has proposed that the Issuer, pursuant to an Interlocal Cooperation and Allocation Agreement (the "Interlocal Agreement") to be entered into between the Authority and the Issuer, issue its revenue bonds, in one or more series, in an original aggregate principal amount not to $17,500,000 (the "Bonds"), to provide financing among other things, the and for facilities in of proposed of Interlocal been placed on file with the and has been presented to the governing body of with consideration of this Resolution. 4. The Interlocal Agreement is hereby approved in substantially the form now on file in the offices of the Authority, together with such modifications thereto as may be approved by the officers executing the Interlocal Agreement, which approval shall be conclusively evidenced by the execution thereof; and the Chair, and the Secretary, or other officers of the Authority, are authorized to execute the same in the name of and on behalf of the Authority. In the event of the disability or the resignation or other absence of the Chair or the Secretary of the Authority, such other officers of the Authority who may act in their behalf shall without further act or authorization of the Authority do all things and execute all instmments and documents required to be done or to be executed by such absent or disabled officials. The approval hereby given to the Interlocal Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the officers of the Authority authorized herein to execute the Interlocal Agreement, such approval to be conclusively evidenced by the execution thereof. 5. In no event shall the Bonds ever be payable from or charged upon any funds of the Authority; the Authority is not subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power ofthe Authority to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the Authority; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Authority; and the Bonds do not constitute an indebtedness of the Authority within the meaning of any constitutional, statutory, or charier limitation. Dated: November 7,2006. BY ORDER OF THE OW ASSO PUBLIC WORKS AUTHORITY Approved as to form: 2 MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OW ASSO PUBLIC WORKS AUTHORITY FROM: JULIE TROUT LOMBARDI GENERAL COUNSEL SUBJECT: ISSUANCE OF YMCA REVENUE BONDS DATE: November 3, 2006 BACKGROUND: City staff was contacted on September 27, 2006 by Dick Helde, an attorney with the Minneapolis, Minnesota firm of Dorsey, Whitney, L.L.P., regarding revenue bond financing for the YMCA. Proceeds from the $17,500,000 bond project will be used to finance renovation projects for the YMCA facilities in Tulsa, Broken Arrow, and Owasso. Specifically, funds allocated to the Owasso project will be used for the constmction and furnishing of an approximately 4,000 square foot addition to the recently opened facility, and for refinancing of interim bank indebtedness originally incurred for the constmction of the new facility. The bonds will be issued by the Tulsa Industrial Authority and underwritten by Wells Fargo. Bonds must be issued by an authority or public tmst for optimum tax benefits, and the Tulsa Industrial Authority historically has served as the vehicle for YMCA revenue bond financing. In addition, all of the facilities earmarked for renovation projects are located in or around Tulsa and the proposed bond issuance refinances a portion of debt previously issued by the Tulsa Industrial Authority for past YMCA Projects, thus TIA is the logical choice to be the issuer of these bonds. Federal law governing 501(c)(3) corporations, such as the YMCA, requires that each city that has facility included in the renovation project consent to the issuance of the revenue bonds. Such assent is required to be documented by the enactment of resolutions by the individual cities and their Public Tmst Authorities. The proposed Interlocal Agreement to be signed by all participating and the Tulsa Industrial Authority QIQvides the_~bonds shall not constitute an indebtedness of Jhe City or l11~~QPW A and that neither entity shan have liability for the bonds. This proposal has been reviewed by the City's bond counsel, Anan Brooks of Fagin, Brown, Bush, Tinney & Kiser, to ensure that the City is not financially responsible for the proposed bonds, and Mr. Brooks has assured staff that neither the City nor the OPW A will have liability or financial obligation for these bonds. NOTE: As a requirement of the law, a public hearing is required to be conducted by the OPW A regarding the proposed issuance of revenue bonds. Memo November 3, 2006 Page 2 of2 RECOMMENDATION: The staff recommends Tmstee approval of the Resolution No. 2006-07, authorizing issuance of the revenue bonds and further authorizing the OPW A to enter into the proposed Interlocal Agreement. ATTACHMENTS: 1. Resolution No. 2006-07 2. Proposed Interlocal Agreement