2018/08/08 Council Agenda Packet

Bonds to be treated as a "private activity bond" (within the meaning of Section 141(b) of the Code) subject to treatment under said Section 141(b) as an obligation not described in subsection (a) of said Section 103, unless the tax exemption thereof is not adversely affected. The District will undertake an annual review of`private use' of the Events Center and prepare a report of cumulative `private use' during the term of the 2014 PFD Refunding Bonds. Each annual report shall be provided to the Finance Director-Treasurer. (c) Audit/Remedial Action. In the event that an audit that includes the 2014 PFD Refunding Bonds is commenced by the Internal Revenue Service or in the event that the City determines that remedial action is required with respect to the 2014 PFD Refunding Bonds, the District will pay or reimburse the City for the costs and expenses incurred by the City in responding to the audit including settlements, if any, and the costs of remedial action, including legal expenses. Section 4.06. Additional Bonds. Except as provided in this Section, the District shall not directly or indirectly create, assume or suffer to exist any future pledge, security interest, encumbrance,lien or charge of any kind on the District Revenues. (a) Conditions upon the Issuance of Additional Bonds by the District. The District (with the consent of the City, which consent shall not be unreasonably withheld if the conditions set forth in this section are met at the time)or the City may issue additional obligations to pay for improvements, renovations or additional capital facilities at the Events Center or for refunding purposes that will be payable from District Revenues. Except as provided in subsection(b) below, the District shall not issue any series of Additional Bonds unless: (1) the proceeds of the Additional Bonds will be used for capital costs of the Events Center; (2) the District shall not have been in default under this Agreement for the immediately preceding fiscal year of the District (it being understood that the incurrence of a Repayment Deficiency Loan or a 2018 Bond Payment Loan shall not constitute a default under this Agreement); and (3) there shall have been filed a certificate (prepared as described in subsection(c)below) demonstrating fulfillment of the minimum funding requirements described therein, commencing with the first full fiscal year of the District following the date of issuance of the series of Additional Bonds. (b) Certificate of the District. If required pursuant to the foregoing subsection(a)(3), a certificate may be delivered by the District (executed by the President of the Board) if the aggregate annual debt service (principal maturing or subject to redemption plus interest coming due) in each year for all outstanding debt of the District, in each year (including the 2018 Bonds, the 2014 PFD Refunding Bonds and Additional Bonds then outstanding) does not exceed eighty percent(80%) of Projected Net Tax Revenues for that year. 647 - 501534419 v3