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HomeMy WebLinkAboutORD 3827 ` l av CITY OF RENTON, WASHINGTON ORDINANCE NO. 3827 AN ORDINANCE of the City of Renton Washington; n, relating to Local Improvement District No. 328; Imending Ordinance No. 3744); and authorizing the ssuance and sale of local improvement district bond anticipation notes in Local Improvement District No. (328) pending the receipt of the proceeds of the local improvement district bonds authorized to be issued by Ordinance No. 3744 • androvidin f p g or the sale of such notes to Ehrlich-Bober and Company, New York, New York. WHEREAS, by Ordinance No. 3744 passed by the City Council August 15, 1983, the City ordered the construction and instal- lation of curbs and gutters, sidewalks, street lighting, utility adjustments, storm drains and all necessary appurte- nances thereto on Garden Avenue N. from N. 4th to N. 8th Street within the City pursuant to Resolution No. 2511, and, after a public hearing thereon, established Local Improvement District No. 328 and provided for the issuance and sale of local improvement district warrants or installment notes; and WHEREAS, the City Council deems it to be in the best interest of the City that the City borrow money and issue its short-term obligation or obligations pursuant to Chapter 39.50 RCW in the form of one or more local improvement district bond anticipation notes for the purpose of providing the funds with which to pay a part of the costs of carrying out the improve- ments ordered in Local Improvement District No. 328; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I . Section III of Ordinance No. 3744 is amended to read as follows : SECTION III . The estimated cost and expense of said improvement is hereby declared to be approximately $591,000. The entire cost and expense of said improvement, including the cost and expense of all engineering, legal , inspection, advertising, publication of notices and other expense inci- dental thereto, less any grants or other money received for the improvement (estimated to be approximately $201,000) , shall be borne by and assessed against property specially benefited by such improvement included in the Local Improve- went District No. 328 (the "District" ) established, embracing, as near as may be, all property benefited by such improvement. SECTION II . Section V of Ordinance No. 3744 is amended to read as follows: SECTION V. Local improvement district warrants shall be issued in payment of the cost and expense of the improvement herein ordered. Such warrants shall be payable out of "Local Improvement Fund, District No. 328, " to bear interest from the date thereof at a rate to be fixed hereafter and to be redeemed in cash and/or by local improvement district bonds herein authorized to be issued, said interest- bearing warrants to be hereafter referred to as "revenue 2 - i warrants. " The exact form, amount, date, interest rate and denomination of said warrants shall be hereafter fixed by ordinance of the City Council . In the alternative, the City may provide by ordinance for the issuance of other short-term obligations pursuant to Chapter 39.50 RCW. The City is authorized to issue local improvement dis- trict bonds for the District which shall bear interest at a. rate and to be payable on or before a date to be hereafter fixed by ordinance. The bonds shall be issued in exchange for and/or in redemption of any and all revenue warrants or other short-term obligations issued hereunder and not redeemed in cash within twenty days after the expiration of the thirty-day period for the cash payment of assessments without interest on the assessment roll for the District. The bonds shall be redeemed by the collection of special assessments to be levied and assessed against the property within the District, payable in annual installments, with interest at a rate to be here- after fixed by ordinance under the mode of "payment by bonds, " as defined by law and the ordinances of the City. The exact form, amount, date, interest rate and denominations of such bonds shall be hereafter fixed by ordinance of the City Council-. Such bonds shall be sold in such manner as the City Council shall hereafter determine. For those persons found by the City of Renton to be economically disadvantaged property owners, or other persons 3 - who, under the terms of a recorded contract of purchase, recorded mortgage, recorded deed of trust transaction, or recorded lease are responsible under penalty of forfeiture, foreclosure or default, the assessment levied for the District may be deferred until a time previous to the termination of the District under the terms acceptable to the City and upon assurance of proper security for the payment of such assess- ments. Such deferral shall not survive the termination of the ownership of interest of the economically disadvantaged property owner or person to whom the deferral was granted and It shall likewise not survive the sale, transfer- or other action which either terminates the possessory interest of such property owner or person or which turns the property into investment, rental or lease property. SECTION III . For the purpose of paying a part of the cost of carrying out the improvements ordered in the District local improvement district bond anticipation notes of the District (the "Notes' ) shall be issued in the total principal amount of $390,000. The Notes shall be dated August 2, 1984; shall mature on June 1, 1985; shall be in the denomination of $5,000 each or any integral multiple of $5.000; and shall be numbered separately. Interest shall be computed on the basis of a 360-day year of twelve 30-day months . The Notes shall bear interest at the rate of 8 .75% per annum, payable at maturity. with full obligation on the part of the City to pay 4 - interest at the same rate from and after maturity until the Notes with interest are paid in full or until sufficient money for such payment in full is on deposit in the "Local Improve- ment Fund, District No. 328' (the "Note Fund" ) created by Ordinance No. 3744, and the Notes have been duly called for redemption. Both principal of and interest on the Notes shall be payable solely out of the Note Fund from the proceeds of local improvement district bonds authorized to be issued by Ordinance No. 3744, as amended, or other short-term obliga- tions to be deposited in such fund and/or prepaid special benefit assessments deposited in such fund, and from the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the United States of America at the office of the Finance Director in Renton, Washington. The Notes shall be issued without the right or option of the City to redeem the same prior to their maturity date. SECTION IV. The Notes shall be printed, lithographed, typed or multicopied on good bond paper in a form consistent with the provisions of this ordinance and State law, shall be signed by the Mayor and the City Clerk, one or both of whose signatures may be manual or in facsimile, and shall have the seal of the City impressed thereon or a facsimile reproduction of that seal printed thereon. SECTION V. The Notes shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. - 5 - SECTION VI . The City covenants that it will spend the principal proceeds of the Notes with due diligence to comple- tion of the purposes specified in this ordinance and will make no use of the proceeds of the Notes or other funds of the City at any time during the term of the Notes which will cause the Notes to be arbitrage bonds within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and the applicable regulations promulgated thereunder. SECTION VII . Ehrlich-Bober and Company of New York, New York, has submitted an offer to purchase all of the Notes at a price of par, plus accrued interest from the date of the Notes to the date of their delivery to the purchaser, the City to furnish the Notes and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle. Washington, at the City' s expense. Bond counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Notes, and bond counsel ' s opinion shall so state. The City Council finds that the interest rate and price of the Notes is in the best interest of the City and, deeming that it is in the best interest of the City that such offer be accepted, accepts the same. The Notes shall, therefore, 6 - i immediately upon their execution, be delivered to the pur- chaser in Seattle, Washington, upon payment therefor in accordance with such offer . SECTION VIII . This ordinance shall be effective upon its passage, approval and five days after publication. PASSED BY THE CITY COUNCIL this 23rd day of July, 1984 . Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 23rd day of July, 1984 . GstbMRC. • S`Pn '�. Approved as to form: Barbara Y. Shinpoch, Mayor S�Qc_�ra�v —jC2-1� Lawrence J . Wa ren, City Attorney Date of Publication: July 27, 1984 0877r 7 - I, MAXINE E . MOTOR. City Clerk of the City of Renton, Washington, certify that the attached copy of Ordinance No. 3V-'L is a true and correct copy of the original ordinance passed on the 23rd day of July. 1984, as that ordinance appears on the Minute Book of the City. DATED this -;--day of July, 1984 . cam/ MAXINE E. MOTOR, City Clerk 0877r