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0 <br /> 250 <br /> May 29,1991 <br /> RESOLUTION-FIRE STATION NO.2 <br /> Moved by Councilman Overstreet, seconded by Councilman Diamond <br /> to adopt Resolution No. 3478 making certain findings relating <br /> to the financing of Fire Station No.2 as follows: <br /> Bruce Jones, City Attorney, told Council that this resolution <br /> restates Council:s intentions and substantiates the tax exempt <br /> position. He further pointed out that the IRS could question <br /> the tax exempt PealtiOF. <br /> 0 <br /> WHEREAS, the City of Everett ("City.) has heretofore by <br /> Resolution No. 4355 adopted Nay 1, 1551, accepted the bid of <br /> Sierra Construction Company as the most advantageous bid for <br /> the construction of Fire Station No. 2 and authorized staff to <br /> proceed to finalize related lease and construction documents <br /> for the project;and <br /> • <br /> men=smtoautchrriZedTedent=0 <br /> 0. <br /> ;2anr''gh <br /> WHEREAS, the leases and construction documents provide that the <br /> City is not obligated to pay the costs of construction for the <br /> project, and that the lease rental obligation for Fire Station <br /> No. 2 will not commence unless and until the improvements are <br /> satisfactorily completed by the bidder;and <br /> WHEREAS, the City intends that the interest component of lease <br /> rental for Fire Station No. 2, if and when such rental <br /> obligation snares,shall he excludable from gross incbme of the <br /> lessor under Section IDS of the Internal Revenue Lode;and <br /> WHEREAS, owing to recent proposed changes in federal tax <br /> regulations, the City finds it necessary to make certain <br /> findings regarding Fire Station financing in order to preserve <br /> the intended.tax exempt status of such interest component of <br /> lease rental,for Fire Station No.2; <br /> 0 <br /> NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF <br /> EVERETT as follows: <br /> Section 1. It is the intention of the City that the lease <br /> between the City,as lessee, and Sierra Construction Co. Inc., <br /> as lessor("Lessor.),be considered an obligation(the"Lease") <br /> the interest:on which is excludable from gross income under <br /> Section 103 of the internal Revenue Code of 1586,as amended or <br /> the interest on which Os not so excludable,if and when the <br /> ) <br /> 0 I <br />