Resolution 3478 - Laserfiche WebLink

e RESOLUTION NO. 3478 A RESOLUTION of the City of Everett, Washington, making certain findings relating to the financing of Fire Station Number Two. WHEREAS, the City of Everett ("City") has heretofore by Resolution No. 4355 adopted May 1, 1991, accepted the bid of Sierra Construction Company as the most advantageous bid for the construction of Fire Station Number Two and authorized staff to proceed to finalize related lease and construction documents for the project; and WHEREAS, the City intends to acquire Fire Station Number Two through a lease financing mechanism authorized under state law; and WHEREAS, the leases and construction documents provide that the City is not obligated to pay the costs of construction for the Project, and that the lease rental obligation for Fire Station Number Two will not commence unless and until the improvements are satisfactorily completed by the bidder; and WHEREAS, the City intends that the interest component of lease rental for Fire Station Number Two, if and when such rental obligation arises, shall be excludable from gross income of the lessor under Section 103 of the Internal Revenue Code; and WHEREAS, owing to recent proposed changes in federal tax regulations, the City finds it necessary to make certain findings regarding the Fire Station financing in order to preserve the intended tax exempt status of such interest component of lease rental for Fire Station Number Two; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVERETT AS FOLLOWS: Section 1. It is the intention of the City that the lease between the City, as lessee, and Sierra Construction Co. Inc. , as lessor ("Lessor") , be considered an obligation (the "Lease") the interest on which is excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as amended or the interest on which is not so excludable, if and when the rental payment obligations commence under the Lease. It is further the intention of the City to assist Lessor in finding a third party to acquire the Lessor's interests in Fire Station No. Two, the Lease and related ground lease, upon completion of construction, for the purpose of enabling Lessor to pay or reimburse its construction financing costs.