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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: /4111111111r11 -11111ri I°1.74 - 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 Ar %-./7 By — 2h-u�`- ayor ATTEST: )4(011091 -0e; 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"