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ORDINANCE NO. 5 i 0 I
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN
RELATING TO THE ISSUANCE AND SALE BY LAKE TAPPS PARKWAY
PROPERTIES OF A SERIES OF VARIABLE RATE DEMAND BONDS, 1998 FOR
THE PURPOSE OF CONSTRUCTION OF A PUBLIC PARK AND CERTAIN
ROADWAY AND SEWER IMPROVEMENTS.
WHEREAS, the City and The Lakeland Company (TLC), entered
into the Lakeland annexation and Utilities Agreement in June,
1996 (as amended in May 1998) hereafter referred to as the
"Pre-Annexation/Utilities Agreement"; and
WHEREAS, the Pre-Annexation/Utilities Agreement provides
that TLC shall develop and dedicate to the City a fifteen-acre
park and that certain roadways and sewer infrastructure
improvements shall be developed by TLC and dedicated to the
City, even if the real property associated with the park,
roadway, and sewer improvements has not yet been annexed by
the City; and
WHEREAS, the park, roadway, and sewer infrastructure
improvements to be developed by TLC and subsequently dedicated
to the City are identified on Exhibit "A", attached and
incorporated by reference, and collectively hereafter referred
to as the "TLC Project"; and
WHEREAS, TLC proposes to finance construction of the TLC
Project through the issuance of tax-exempt bonds; and
Ordinance No. 5101
May 28, 1998
Page I
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WHEREAS,
subordinate
Development
Lake Tapps Parkway Properties was formed as a
organization of NDC Housin9 and Economic
Corporation (the "Corporation"), havin9 a 9roup
exemption under Section 501(c) (3) of the Internal Revenue Code
of 1986, and was formed for the purpose, inter alia, of
sponsorin9 the construction of facilities such as the TLC
Project; and
WHEREAS, the stated purposes of the Corporation include
the development of economic opportunities, includin9 job
creation for minority and disadvantaged 9roups, the
development of affordable housin9 opportunities, and the
9eneral "lessenin9 of the burdens of 9overnment" within the
meanin9 of Treasury Regulations Section 1.501(c) (3)-l(d) (2);
and
WHEREAS, the TLC Project will serve these purposes by,
amon9 other things, providin9 jobs through the actual
construction and the subsequent development of the surroundin9
area; by providin9 access to one or more residential
developments that will provide affordable housin~
opportunities; and by lessenin9 the burdens of the City by
providin9 a cost effective means of financin9 the construction
of the TLC Project; and
WHEREAS, the creation of jobs and housing, and the TLC
Project, are important to the City; and
Ordinance No. 5101
May 28, 1998
Page 2
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WHEREAS,
Project, are
WHEREAS,
the creation of jobs and housing, and
important to the City; and
the assistance and cooperation
the TLC
of the
Corporation and Lake Tapps Parkway Properties will lessen the
burdens of the City in furthering these interests; and
WHEREAS, Lake Tapps Parkway Properties proposes to issue
tax-exempt bonds (the "Bonds")
Project; and
WHEREAS, the City will
to pay the costs of the TLC
have no obligation or liability
Project or the repayment of the
requirements of federal tax law
for the financing of the TLC
Bonds; and
WHEREAS, pursuant to the
(Rev. Rul. 63-20, together with operating rules provided by
Rev. Proc. 82-26 (the "Rulings")), prior to the financing, a
political subdivision of the state must express its
willingness to accept the TLC Project upon completion; and
WHEREAS, Lake Tapps Parkway Properties has affirmed its
intent to give all of its interests in the completed TLC
Project fully and freely to the City completely upon its
completion; and
WHEREAS, the City Council hereby states its intent to
receive, in full, the TLC Project, upon its completion and
acceptance in accordance with City standards and
specifications;
Ordinance No. 5101
May 28, 1998
Page 3
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, DO ORDAIN AS
FOLLOWS:
SECTION
Properties.
Bonds will
Parkway Properties in accordance with proceedings approved by
its Board and an Indenture of Trust between Lake Tapps Parkway
Properties and Chase Manhattan Trust Company, National
Association, as Trustee. Lake Tapps Parkway Properties
represents that the Bonds will be issued in a principal amount
1. Bond Issuance by Lake Tapps Parkway
Lake Tapps Parkway Properties represents that the
be issued as a separate series by Lake Tapps
sufficient to pay the budgeted costs of the
costs of issuance. The City hereby approves
the Bonds by Lake Tapps Parkway Properties
TLC Project and
the issuance of
in a principal
Bonds shall not
either direct or
Non-profit Corporation. For the
and conveyance of the TLC
City hereby approves Lake
the purposes and activities of Lake
as described in Section 4.1 of its
amount not to exceed $5,000,000. The
constitute a financial obligation or debt,
indirect, of the City.
SECTION 2. Approval of
sole purpose of the construction
Project under this Ordinance, the
Tapps Parkway Properties,
Tapps Parkway Properties
Articles
of Incorporation, and the Bonds to be issued by Lake
Ordinance No. 5101
May 28, 1998
Page 4
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Tapps Parkway Properties, subject to the
conditions:
(a) Lake Tapps Parkway Properties
operate on a nonprofit basis;
followin9 terms and
shall at all times
(b) Lake Tapps Parkway Properties' income shall in no
event inure to the benefit of any private person; and
(c) Upon completion of the TLC Project in accordance
with the plans and specifications approved by the City, Lake
Tapps Parkway Properties shall convey its entire interest in
the TLC Project to the City free and clear of any encumbrance
or obligation of any kind.
SECTION 3. No Liability. Lake Tapps Parkway Properties
represents that the Bonds to be issued by Lake Tapps Parkway
Properties will be the debt and obligation of Lake Tapps
Parkway Properties, payable solely from the proceeds of the
Bonds and the proceeds of a letter of credit posted to secure
repayment of the Bonds. The Bonds shall not be the debt or
obligation of the City; and neither the City's approval of
Lake Tapps Parkway Properties or the Bonds as provided for in
this Ordinance, nor the City's acceptance or receipt of title
to the TLC Project, shall result in, or be deemed to impose,
any debt or obligation upon the City, and the Bonds shall so
state.
Ordinance No. 5101
May 28, 1998
Page 5
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SECTION 4. Maintenance after Construction of the TLC
Project.
the City's formal acceptance or receipt
Project, the City shall incorporate the
City's road, sewer and park system as
sewer and public park," respectively.
Upon the completion of the TLC Project and following
of title to the TLC
TLC Project into the
a "public road, public
The acceptance shall be
deemed to be acknowledgment that the TLC Project is built in
accordance with plans and specifications approved by the City.
SECTION 5. Agreement to Accept Project. The City shall
accept the TLC Project upon its completion in accordance with
and the plans and specifications approved by
City standards
the City.
SECTION 6. Authority to Carry Out Ordinance. The Mayor
and the Finance Director of the City are each authorized to
enter into such agreements and to take such actions as may be
necessary to carry out the purpose of this Ordinance and to
protect the rights and interests of the City consistent with
the purposes of this Ordinance.
SECTION 7. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry
out the directions of this legislation.
Ordinance No. 5101
May 28, 1998
Page 6
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SECTION 8. This Ordinance shall
force five days from and after its
publication as provided by law.
take effect and be in
passage, approval and
INTRODUCED: June 1, 1998
PASSED:
June 1, 1998
APPROVED: June 1, 1998
CHARLES A. BOOTH
MAYOR
ATTEST:
~D~n'ielle E. Daskam,
City Clerk
A~ROVED AS TO FORM:
Michael J. Reynolds,
City Attorney
PUBLISHED:
Ordinance No. 5101
May 28, 1998
Page 7
Highway 167 ~_
East Valley Highway
om
Kersey Way