Ordinance 2587-02 - Laserfiche WebLink

• program size, of which cost $5,000,000 may be paid with proceeds of limited tax general obligation bonds of the City and $1,000,000 would be paid with grants and other contributions to the Project. Following completion of the Project and a start-up period of operations of the Regional Center sufficient to provide an objective basis for making reasonable projections of net operating revenues of the Regional Center, the interim financing shall be converted to long-term permanent financing through the issuance by the District of long-term bonds. However, the interim financing may be extended for additional periods if the City and the District jointly agree that such extensions are in the best financial interests of the City and District. No financing of the Regional Center shall mature later than June 1, 2026. 4.1 Interim Financing During Construction and Start-Up Period. The District has obtained initial financing for certain preliminary costs of the Project through a line of credit of up to $5,000,000 provided by Bank of America,N.A. (the "Bank"), and advances by the City to the District of approximately $700,000. It is expected that the District will provide interim financing for the Project through the issuance as authorized by resolution of the District of three series of bond anticipation notes (the "Notes") under a commercial paper program secured by a direct-pay letter of credit (the "Letter of Credit") issued by the Bank to U.S. Bank Trust National Association, Issuing and Paying Agent for the Notes, for the benefit of holders of the Notes. Except for the issuance of up to $5,700,000 of Tax Revenue Notes (as defined in Section 4.1.1 below) to repay the initial financing of preliminary Project costs, the District shall not issue any Notes until (i) the Design-Build Contract for the design and construction of the Project has been fully executed and delivered by the District and the Design-Build Contractor and is in full force and effect, and (ii) the Anchor Tenant Contract described in Section 6.1.2 of this Agreement has been fully executed and delivered by the District and the other party thereto and is in full force and effect. Proceeds of the sale of the Notes under the commercial paper program will be used, among other purposes, to repay the initial Bank line of credit and advances by the City. 4.1.1 Of the total amount of interim financing for the Project, it is expected that approximately $16,000,000 of the Notes will be designated as Tax Revenue Commercial Paper Notes (the "Tax Revenue Notes") and secured by tax revenues received by the District from its levy and collection of the taxes permitted by RCW 82.14.390 and Chapter 35.57 RCW and certain other revenues received by the District with respect to the Regional Center, including amounts received by the District pursuant to the Interlocal Agreement dated December 20, 2001, by and among the District, the City, Snohomish County, and the Snohomish County Public Facilities District; and an aggregate total of approximately $40,445,000 of the Notes will be designated as Project Revenue Commercial Paper Notes, Series A (Tax-Exempt), and Series B (Taxable) (the "Project Revenue Notes"), and secured by nontax revenues (after payment of operation and maintenance expenses) received by the District with respect to the Regional Center. 4.1.2 As a condition to the issuance by the Bank of the Letter of Credit securing the Notes, the District is required to enter into a Reimbursement Agreement with the -4- INTERLOCAL FINANCING AGREEMENT 200203010680