HomeMy Public PortalAboutResolution 30-93 Amendment to an agreement between the City and Spring Mountain Ranch RESOLUTION NO. 30-93
A RESOLUTION OF THE CITY OF MCCALL, VALLEY COUNTY, IDAHO, APPROVING
AND AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF
MCCALL AND SPRING MOUNTAIN RANCH LIMITED PARTNERSHIP RELATING TO
THE REIMBURSEMENT OF COSTS FOR ARBITRAGE REBATE CALCULATIONS AND
PAYMENTS FOR LOCAL IMPROVEMENT DISTRICT NO. 3
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MCCALL,
IDAHO, as follows:
Section 1: The Agreement between the City of Mccall and
Spring Mountain Ranch Limited Partnership, a copy of whichis
annexed hereto as Exhibit "A, " is hereby approved, and the Mayor
and City Clerk are hereby authorized to execute the same on behalf
of the City.
Section 2 : This Resolution shall take effect and be in force
immediately upon its passage and approval.
DATED this 12th day of August, 1993 .
CITY OF MCCALL
Valley County, Idaho
By Csr‘7400'
/
Mayor
ATTEST:
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City Cler '
Page 1
AGREEMENT
THIS AGREEMENT, made this 12th day of August, 1993, by and
between the CITY OF MCCALL, Valley County, Idaho (the "City") , and
SPRING MOUNTAIN RANCH LIMITED PARTNERSHIP, an Idaho limited
partnership (the "Developer") .
RECITALS
1. The City has, pursuant to the request of the Developer,
created Local Improvement District No. 3 ("L.I.D. No. 3") for the
purpose of financing the acquisition of certain public improvements
consisting of public golf course improvements, streets, storm drain
and sewer improvements, as more particularly described in Ordinance
No. 630, adopted on May 13, 1993 (the "Improvements") .
2. The City and the Developer have entered into an Agreement
for Acquisition of Improvements dated May 13, 1993 (the
"Acquisition Agreement") , whereby. the City has agreed to acquire
from the Developer, and the Developer has agreed to sell and convey
to the City, the Improvements as each component (as set forth in
the Acquisition Agreement) thereof is completed.
3 . The City has confirmed the assessment roll in L.I.D.
No. 3 and has, by adoption of Ordinance No. 641 on July 28, 1993,
authorized the issuance of bonds for L.I.D. No. 3 (the "Bonds") in
the principal amount of $5,200, 000, representing the amount of
unpaid assessments within L.I.D. No. 3 .
4. The Developer recognizes and acknowledges that the City
has agreed, as an accommodation to Developer, to issue and sell the
entire principal amount of the Bonds during calendar year 1993,
although the actual acquisition costs will be paid to the Developer
in stages over approximately a one-year period as the Improvements
are completed. The Developer further recognizes and acknowledges
that the issuance of the Bonds in calendar year 1993 will cause the
City to be ineligible for the "small issuer" exemption from
arbitrage rebate requirements established by Section 148 (f) (4) (C)
of the Internal Revenue Code of 1986, as amended (the "Code") , and
that the City therefore may be required to calculate and pay
rebates of excess investment earnings on the proceeds of the Bonds
pursuant to Section 148 (f) of the Code.
NOW, THEREFORE, for and in consideration of the foregoing and
other good and sufficient consideration, the receipt of which is
hereby acknowledged, the parties agree:
FIRST: The Developer agrees to reimburse and to hold the City
harmless of and from all reasonable costs incurred by the City in
Page 1 - EXHIBIT "A"
order for the City to comply with the requirements of Section
148 (f) of the Code with respect to the Bonds, including, but not
limited to, legal costs and costs of professional accounting
services for the calculation of rebate liability.
SECOND: The City shall calculate or cause to be calculated
its costs of compliance with Section 148 (f) of the Code and shall
periodically send an invoice for such costs to the Developer. The
Developer shall pay to the City the amount of any such invoice
within thirty (30) days of its receipt.
THIRD: The City shall rebate excess investment earnings as
required by Section 148 (f) of the Code, and the Developer shall
have no liability for payment of the rebate amount or amounts.
FOURTH: This agreement shall be binding upon the successors
and assigns of the Developer.
DATED the date and year set forth above.
CITY OF MCCALL
Valley County, Idaho
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By — 2h-u�`-
ayor
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City Cl- k
SPRING MOUNTAIN RANCH LIMITED
PARTNERSHIP , an Idaho Limited
Partnership
By O'Neill Enterprises, Inc. , an
Idaho corporation, the General
Partner
7r OS4:4,
Peter S. O'Neill, President
Page 2 - EXHIBIT "A"