HomeMy WebLinkAboutCC Res 5936 2009-11-09RESOLUTION NUMBER 5936
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH DECLARING ITS INTENT TO CAUSE TO BE ISSUED
BONDS OR OTHER OBLIGATIONS PERTAINING TO THE
FINANCING OF THE COSTS OF ACQUIRING, IMPROVING, AND
EQUIPPING REAL AND PERSONAL PROPERTY TO BE USED
IN THE MANUFACTURE OF SOLAR - POWERED PANELS, AND
DECLARING ITS INTENT TO REIMBURSE ADVANCES MADE
FOR EXPENDITURES PRIOR TO THE ISSUANCE OF SUCH
BONDS OR OTHER OBLIGATIONS
RECITALS:
A. The City Council of the City of Seal Beach intends to take the
necessary actions to cause the issuance of revenue bonds or other obligations in
order to assist Amonix Inc., in the financing of the costs of acquiring, improving,
and equipping real and personal property to be used in the manufacture of high
concentration, photovoltaic solar - powered panels to be located at 1709 Apollo
Court, and on an adjacent parcel, in the City. Representatives of Amonix Inc.
have made certain representations to City staff regarding job creation, and sales
and property tax revenues to be generated for the City.
B. United States Treasury Regulations Section 1.150 -2 prescribe
conditions under which proceeds of bonds or other obligations used to reimburse
advances made for certain expenditures paid before the issuance of such
obligations will be deemed to be expended (or properly allocated to
expenditures) for purposes of Sections 103 and 141 -150 of the Internal Revenue
Code of 1986, as amended, so that upon such reimbursement the proceeds so
used will not further be subject to requirements or restrictions under those
sections of the Code.
C. Certain provisions of the Treasury Regulations require that there be
a declaration of official intent not later than 60 days following payment of the
expenditure expected to be reimbursed from proceeds of such bonds or other
obligations, and that the reimbursement occur within prescribed time periods
after the expenditure is paid or after the property is placed in service.
D. The City wishes to take steps for compliance with such Treasury
Regulations in connection with the project described in paragraph A of these
Recitals and to take other preliminary actions in connection with the issuance of
bonds or other obligations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL
BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS
FOLLOWS:
Section 1. In order to assist Amonix Inc. in financing the project
described in paragraph A of the Recitals hereof, the City Council shall exercise
its best efforts to cause to be issued revenue bonds or other obligations, in one
or more series, in the maximum aggregate face amount of $10,000,000, and to
lend the proceeds thereof to Amonix Inc., subject to satisfaction of the conditions
and pursuant to the provisions contained in the documents authorizing the
issuance and providing for the sale of such bonds or other obligations.
Section 2. The City Council hereby declares its intention to cause to be
reimbursed from the proceeds of such bonds or other obligations advances made
for certain expenditures paid in connection with the project described in
paragraph A of the Recitals hereof, all in accordance with provisions of the
Treasury Regulations.
S7296-0001\1 182578v l .doc
Resolution Number 5936
Section 3. Amonix Inc. shall indemnify the City and the issuer of such
bonds or other obligations against any and all loss, cost, expense, claims or
actions arising out of or connected with the issuance or sale thereof.
Section 4. A duly authorized officer of Amonix Inc. has executed and
delivered to the City a letter acknowledging the provisions of this Resolution.
Section 5. This Resolution shall take effect immediately upon its
adoption.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Seal
Beach at a regular meeting held on this 9th day of November , 2009
by the following vote:
AYES: Council Members
NOES: Council Members c
ABSENT: Council Members
ABSTAIN: Council Members
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 5936 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on the 9th day of November .3 2009.
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