02-23-2005 Council Agenda - Laserfiche WebLink

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which, together with the amount allocated to the Bonds pursuant to this resolution, exceeds $10,000,000. SECTION 2 Consent to Issuance and Authorization of Joint Powers Agreement 2.1 On the basis of the information given to the City to date, the City hereby consents to the issuance by the Port Authority of the Bonds in the approximate principal amount of $5,000,000, and the loan of Bond proceeds to the Borrower to finance the Project, all as provided in the Joint Powers Agreement. The adoption of this resolution shall not be deemed, however, to establish a legal obligation on the part of the City, its Council or the Port Authority to issue or to cause the issuance of the Bonds. The Bonds, if issued by the Port Authority, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City or the Port Authority. The Bonds shall be payable solely from said revenues and property of the Borrower specifically pledged to the payment thereof, and shall not constitute a debt or pecuniary liability of the City or the Port Authority within the meaning of any constitutional or statutory limitation. 2.2 The form of the Joint Powers Agreement attached hereto as Exhibit A is approved substantially in the form attached, with such subsequent changes as may be approved by the City staff, in consultation with counsel to the City. 2.3 The appropriate officers of the City are hereby authorized and directed to execute the Joint Powers Agreement in substantially the form submitted, as modified pursuant to Section 2.2, above, and any other documents and certificates which are reasonably required by the Port Authority or its bond counsel to the transaction described herein. The execution of the Joint Powers Agreement and any other instrument by the appropriate officer or offices of the City shall be conclusive evidence of the approval of such documents in accordance with the terms of this resolution. 2.4 The consent given in this Resolution is conditioned on the Borrower paying all legal expenses incurred by the City in connection with the preparation of this Resolution and the Joint Powers Agreement, together with a one time administrative fee payable to the City upon issuance of the Bonds in an amount equal to 1% of the principal amount of the Bonds issued. SECTION 3 Allocation of Bank Qualification 3.1 The City will receive substantial benefit from the Project which will help to provide additional elderly rehabilitation and hospice care facilities, accessible and available to residents of the City and supplementing the care and facilities available in the City. 3.2 The City hereby designates up to $5,000,000 of the Bonds to be issued by the Port Authority for the Project as "qualified tax- exempt obligations" for purposes of Section 265(b) of the Code and finds that the amount of such designation bears a reasonable relationship to the 2574872v 3