HomeMy WebLinkAbout2006 25_YMCA Project_2006.11.07MITRIM
IN
WHEREAS, The Owasso public Works Authority (the "Authority ") was created by a
Declaration of Trust, dated January 10, 1973, (as amended, the "Trust Declaration "), for the use
and benefit of the City of Owasso, Oklahoma, under authority of and pursuant to the provisions
of Tide 60, Oklahoma Statutes, 176 et seq. (the "Act "), and other applicable statutes of the State
of Oklahoma, and
WHEREAS, The Young Men's Christian Association of greater Tulsa, Tulsa County,
Oklahoma, an Oklahoma not-for-profit corporation (the "`Borrower ") has proposed that the
Tulsa Industrial Authority (the "Issuer "), pursuant to an Interlocal and Allocation Agreement to
be entered into with the Authority (the "Interlocal Agreement "), issue its Variable Rate Demand
Obligations (YMCA of greater Tulsa Project), Series 2006, in an amount not to exceed
$17,500,000 (herein, the "Series 2006 Obligations "), to provide for the refunding of the
outstanding Variable Rate Demand Obligations ('MCA of greater Tulsa project), Series 1999,
issued in the original aggregate principal amount of $6,000,000 by the Issuer (the "Prior
Bonds "), and to provide financing and refinancing for various facilities located both within and
without the corporate limits of Tulsa, Oklahoma (all collectively referred to as the "Projects" or
the "'Project "), including the construction of an approximately 4,000 square foot addition to and
the refinancing of interim bank indebtedness originally incurred for the acquisition and
construction of a recently opened YMCA facility (the "Owasso Project "), located at 5300
Owasso Expressway in the City of Owasso (the "City ") the Owasso Project to be owned and
operated by the Borrower,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF O A SO, OKLAHOMA.
Section I. The incurring of indebtedness by the Issuer in the aggregate principal
amount of not to exceed $ 17,500,000, to be evidenced by the Series 2006 Obligations, is hereby
approved, The Series 2006 Obligations do not constitute a liability, indebtedness or obligation,
general or special, of the City, and neither the faith and credit, the taxing power nor any assets of
the City are pledged to the payment of the principal of, premium, if any, or interest on the
Series 2006 Obligations.
Section _1 For all purposes of Section 147(f) of the Internal Revenue Code of 1956,
as amended (the "Code"), the City, as the applicable elected representative of the Authority,
within the meaning of Section 147(f) of the Code, hereby approves the issuance of the Series
2006 Obligations by the Issuer to provide financing for, among other things, the Owasso project,
Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to
establish any obligation on the part of the City to cause the issuance of the Series 2006
Obligations, The Series 2006 Obligations, if issued, shall not constitute a charge, lion or
encumbrance, legal or equitable, upon any property of the City.
ADOPTED by the Council as an emergency easur this day of November, 2006,
Stephen Cat udella, Mayor
ATTEST:
Sherry Bisho %`City Clerk �I
Q
CLIMBING . IITI vJ
O. HONORABLE MAYOR AND O i
CITY OF OWASSO
FROM. JULIE TROUT LO t BA R Siid
GENERAL W l
DATE: November 3, 20011
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
construction 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 construction 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 trust 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 Trust Authorities.
The proposed bnterlocal Agreement to be signed by all participating cities and the Tulsa
Industrial Authority pxwides the bonLds shall not constitute an indebtedness o � the City or
___. __. _ — _ m._._ _ _.
the OP WA and that neither entity shall_ have liability for the bonds. This proposal has
been reviewed by the City's bond counsel, Allan Brooks of Fagin, Brown, Bush, Tinney
Miser, 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 OPWA will have liability or
financial obligation for these bonds.
Demo
November 3, 2006
Page 2 of 2
RECOMMENDATION:
The staff recommends Council approval of the Resolution No. 2006 ®25, authorizing
issuance of the revenue bonds and further authorizing the Mayor to execute all necessary
documents relating to the Interlocal Agreement (included in the November 7, 2006
®PWA agenda packet).
ATTACHMENTS:
1. Resolution No. 2006-25