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R-9988 Council Meeting: October 12, 2004 Santa Monica, CA RESOLUTION NO. 9988 (CCS) (CITY COUNCIL SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA DECLARING THE CITY'S INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the City of Santa Monica (the "City") desires to finance the acquisition of land adjacent to Memorial Park (the "Project") that will remain in its present condition until such time as plans are developed and approved by the City; WHEREAS, any future re-use or re-development of the site will be subject to separate review for compliance with the California Environmental Quality Act (CEQA); WHEREAS, the City may use a portion of the proceeds of obligations issued or incurred to implement the financing (the "Obligations") to reimburse expenditures made to pay the costs of land acquisition and environmental and other costs that might be incurred prior to the issuance or incurrence of the Obligations; 1 WHEREAS, United States Income Tax Regulations provide generally that proceeds of tax-exempt obligations are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such obligations unless certain procedures are followed, among with is a requirement that (with certain exceptions), prior to the payment of such expenditures, the issuer must declare and intention to reimburse such expenditures; and WHEREAS, it is in the public interest and for the public benefit that the City declare its official intent to reimburse the expenditures referenced herein; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA AS FOLLOWS: SECTION 1. The City intends to issue and incur the Obligations for the purpose of paying the costs of the Project and related costs. SECTION 2. The City hereby declares that it reasonably expects (i) to pay certain costs of the Project prior to the date of issuance or incurring of the Obligations and (ii) to use a portion of the proceeds of the Obligations for reimbursement of expenditures for the Project that are paid before the date of issuance or incurring of the Obligations. 2 SECTION 3. The maximum principal amount of the Obligations is FIFTY MILLION DOLLARS ($50,000,000.00); SECTION 4. The adoption of this Resolution shall not bind the City to proceed with execution and delivery of the Obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws. SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and henceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM 3 Adopted and approved this 12th day of October, 2004. ~!:Yor I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No. 9988 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 12th day of October, 2004, by the following vote: Ayes: Council members: Mayor Bloom, Mayor Pro Tern McKeown, Feinstein, Genser, Holbrook, Katz Noes: Council members: None Abstain: Council members: None Absent: Council members: O'Connor ATTEST: ~~. ~:.-A- Maria M. Stewart, ity Clerk 4