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HomeMy WebLinkAbout2020 02_OPWA_reimbursement resolution_land purchase for public works_2020.03.17OWASSO PUBLIC WORKS AUTHORITY RESOLUTION 2020 -02 A RESOLUTION DECLARING THE INTENT OF THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") TO EXPEND CERTAIN FUNDS IN CONNECTION WITH THE ACQUISITION OF CERTAIN REAL PROPERTY WITH SAID EXPENDITURES TO BE REIMBURSED FROM THE PROCEEDS OF DEBT TO BE INCURRED BY THE AUTHORITY; AND CONTAINING OTHER PROVISIONS RELATING THERETO. WHEREAS, The Owasso Public Works Authority (the "Authority ") is undertaking to purchase land as the site of a proposed public works building at the intersection of 11301 North Mingo Road and 10000 East 11611, Street North at a cost of $1,500,000 (cost of land only) which amount is expected to be paid by April 1, 2020 and which amount will be reimbursed as part of a larger financing that will include up to $10,500,000 for various street improvements to include the Garnett Road widening (collectively, the "Project "); and WHEREAS, it is the Authority's intent to eventually fund the cost of the Project through the issuance of tax - exempt debt obligations; and WHEREAS, the Authority desires to initially fund certain costs pertaining to the Project out of the Authority's cash reserves; and WHEREAS, the Authority further desires to declare its official intent to reimburse itself with the proceeds of tax- exempt debt incurred by the Authority, as required by Section 1.150 -2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: SECTION 1. The Project. The Project to be financed by the Authority shall generally include land acquisition as the site of a proposed public works building at the intersection of 11301 North Mingo Road and 10000 East 11611, Street North at a cost of $1,500,000 (cost of land only) and up to $10,500,000 forvarious street improvements to include a portion of the Garnett Road widening project. SECTION 2. Preliminary Use of Authority Funds. The Authority intends to initially fund certain capital costs associated with the Project from the Authority's funds. The Authority reasonably expects to reimburse any amounts expended with the proceeds of debt to be incurred by the Authority. The Authority anticipates issuing debt for the Project in an aggregate amount not to exceed approximately $12,000,000. SECTION 3. Official Intent. This Resolution constitutes a declaration of official intent as is required pursuant to Section 1.150 -2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended. SECTION 4. Severabilitv. If any section, subsection, sentence, clause, phrase or portion of this resolution is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this resolution. PASSED AND APPROVED THIS 17TH DAY OF MARCH, 2020 .��%`\ \C 0 6j���i ```a Jg•,, .,R,�S, �,,F THE OWYIZ7U'.�l C; O RKS AUTHORITY Q. :y z Or G ;= Chris Iley, Chair y ATT rrrpe��io�1�� By: wx J nn M. Stevens, Authority Secretary Resolution 2020 -02 Page 2 of 2 sd REAL Paople • REAL CM1antln• REAL CammunRy TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Linda Jones, Finance Director AppROV4�D By .r Af ST�8S AR I ? ?zo SUBJECT: Resolution 2020 -02 Public Works, Support Services, and Parks Facility Land Purchase DATE: March 13, 2020 BACKGROUND: On April 16, 2019, Council approved entering into a contract to purchase 62 acres at 11301 North Mingo Road and 10000 East l 16th Street North for the purpose of constructing city facilities, such as Public Works, Support Services, and Parks, as well as, construction of a regional stormwater detention area. In order to utilize loan proceeds for the land purchase, a resolution is needed declaring the intent of the Authority to have expenditures related to the land purchase be reimbursed with future OPWA loan proceeds. RECOMMENDATION: Staff recommends approval of Resolution 2020 -02, declaring the intent of the Owasso Public Works Authority (The "Authority ") to expend certain funds in connection with land acquisition for construction of City facilities and for construction of a regional stormwater detention facility with said expenditures to be reimbursed from the proceeds of debt to be incurred by The Authority; and containing other provisions relating thereto. ATTACHMENT: Authority Resolution 2020 -02