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Requesting adoption of an ordinance; authorizing staff to take certain actions with respect to the EAB Project; and declaring the official intent of the City to reimburse certain original expenditures related to the capital project from the proceeds of tax-exempt bonds to be issued by the Port Authority.
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WHEREAS, U.S. Treasury Regulations, Section 1.150-2 (the “Reimbursement Regulations”), promulgated pursuant to Section 150 of the Internal Revenue Code of 1986, as amended (the “Code”), provides that the allocation of the proceeds of tax-exempt bonds to expenditures for governmental purposes originally paid from a source other than such tax-exempt bonds will be treated as expenditures of such tax-exempt bonds only if certain requirements of the Reimbursement Regulations are satisfied by the issuer of such tax-exempt bonds; and
WHEREAS, the Port Authority of the City of Saint Paul (the “Port Authority”), in partnership with the City of Saint Paul (the “City”), expects to pay certain original capital expenditures for items such as, but not limited to, the replacement of approximately 13,000 ash trees on public boulevards in the City due to an infestation of the Emerald Ash Borer (“EAB”) (collectively, the “EAB Project”), which original expenditures are expected to be financed temporarily from other temporary sources, and which original expenditures are expected to be reimbursed from the proceeds of one or more series of tax-exempt bonds; and
WHEREAS, the Port Authority and the City (i) are jointly working on the EAB Project that will be memorialized in a joint powers agreement to be negotiated by and entered into between the City and the Port Authority, and (ii) propose to finance the EAB Project through the Port Authority’s issuance of one or more series of tax-exempt or taxable bonds that are a general obligation of the City (the “EAB Bonds”).
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows:
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