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Mile of History Project - $6,200,000.00
recommendation
An Ordinance of the City of Providence Approving the Financing of the “Mile of History Project” by the Issuance of Appropriation obligations therefor in an Amount Not to Exceed $6,200,000.00.
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WHEREAS, the City desires to finance the construction, reconstruction and installation of streets and sidewalks and appurtenances thereto on, and adjacent to, the Benefit Street area (the “Mile of History Project” or the “Project”) and to finance the Project through one or more loans from the Rhode Island Infrastructure Bank (“RIIB”) municipal road and bridge revolving fund pursuant to chapter 24-18 of the Rhode Island General Laws and/or RIIB’s efficient buildings revolving fund pursuant to Chapter 46-12.2 of the Rhode Island General Laws and/or Rhode Island General Laws Section 45-12-33, as amended from time to time;
WHEREAS, the estimated maximum cost of the Project is $6,200,000;
WHEREAS, the period of usefulness of the Project is expected to be up to (20) years;
WHEREAS, if the Obligations (defined below) are issued as general obligations (secured by the full faith and credit and taxing power of the City) the net debt of the City after the issuance of the Obligations is expected to be $269,219,303; and
WHEREAS, the Obligations authorized hereby will be within all debt and other limitations prescribed by the Constitution and the laws of State of Rhode Island (“State”).
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF PROVIDENCE THAT:
SECTION 1. The sum of Six Million Two Hundred Thousand Dollars ($6,200,000) is appropriated for the development and financing of the Project, including funding a debt service reserve fund, if required by RIIB, and financing costs.
SECTION 2. In accordance with Chapter 46-12.2 and/or Chapter 24-18 of the Rhode Island General Laws and/or Rhode Island General Laws Section 45-12-33, as amended from time to time, the City Treasurer and the Mayor are hereby authorized to borrow an amount not exceeding Six Million Two Hundred Thousand Dollars ($6,200,000) from RIIB, and to evidence such loan, such officers are hereby authorized to issue and refund on behalf of the City, in an amount not exceeding Six Million Two Hundred Thousand Dollars ($6,200,000) appropriation obligations (the "Obligations") of the City, at one time, or from time to time in order to meet the foregoing appropriation.
SECTION 3. The manner of sale, amount, denominations, maturities, conversion or registration privileges, interest rates, medium of payment, and other terms, conditions and details of the Obligations may be fixed by the officers authorized to sign the Obligations.
SECTION 4. Pending the issuance of the Obligations under Section 2 hereof, the City Treasurer may expend funds from the General Fund of the City for the purposes specified in Section 1 hereof. Any advances made under this section shall be repaid without interest from the proceeds of the Obligations issued hereunder or from the proceeds of applicable federal or state assistance or from other available funds.
SECTION 5. The City Treasurer and the Mayor are hereby authorized to enter into a loan agreement and other financing documents with RIIB (the “Financing Documents”) ýand said officers are hereby authorized and instructed to take all actions, and to execute and ýdeliver the Financing Documents and any related agreements, certificates and other documents ýin such form as they may deem necessary or desirable to implement the Project. To the extent ýthat the Financing Documents contemplate tax-exempt financing, such officers are also ýauthorized to take all action, on behalf of the City, necessary to insure that the interest ýcomponent of the Obligation payments will be excludable from gross income for ýfederal income tax purposes and to refrain from all actions which would cause the interest ýcomponent of the Obligation payments to become subject to federal income taxes. ý
SECTION 6. This Ordinance is an affirmative action of the City Council toward the execution and delivery of the Obligations and the Financing Documents in accordance with the purposes of the laws of the State. This Ordinance constitutes the City’s declaration of official intent, pursuant to Treasury Regulation 1.150(2), to reimburse the City’s General Fund for certain capital expenditures paid on or after the date which is sixty (60) days prior to the date of this Ordinance, but prior to the execution and delivery of the Obligations and the Financing Documents. Such amounts to be reimbursed shall not exceed $6,200,000 and shall be reimbursed not later than eighteen (18) months after (a) the date on which the expenditure is paid or (b) the date the property is placed in service or abandoned, but in no event later than three (3) years after the date the expenditure is paid.
SECTION 7. The Director of Finance and the Mayor are authorized to take all actions necessary to comply with federal tax and securities laws including Rule 15c2-12 of the Securities and Exchange Commission (the "SEC Rule") and to execute and deliver one or more Disclosure Certificates in connection with the Obligations in the form as shall be deemed advisable by the Director of Finance and the Mayor in order to comply with the SEC Rule. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Disclosure Certificates, as they may be amended from time to time. Notwithstanding any other provision of this Ordinance or the Obligations, failure of the City to comply with a Disclosure Certificates shall not be considered an event of default; however, any holder of the Obligations may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section and under the Disclosure Certificate.
SECTION 8. This Ordinance shall take effect upon passage.