ORDINANCE No. 176989

*  Authorize Bonds for Urban Renewal Areas (Ordinance)

The City of Portland Ordains:

Section 1. The Council finds:

1.  The City passed Ordinance No. 176750 on July 31, 2002, authorizing the issuance of up to $300,000,000 of bonds under the Uniform Revenue Bond Act to finance facilities improvements, property acquisition and other public purposes. Notice of the authorization was published as required by Oregon’s Uniform Revenue Bond Act (ORS 288.805 to 288.945).

2.  The Uniform Revenue Bond Act permits the City to issue the bonds unless, within 60 days after the notice is published, five percent or more of the City’s electors file a petition to refer the question of issuing the bonds to the City’s voters. More than sixty days have passed since the publication of the notice of authorization, and the City has not received petitions to refer the revenue bonds described in that notice to a vote of the people. The City is now authorized to issue the bonds described in Ordinance No. 176750.

3.  The Uniform Revenue Bond Act permits the City to pledge its full faith and credit and its revenues, including its tax increment revenues, to pay obligations issued under the Uniform Revenue Bond Act and under Ordinance No. 176750.

4.  It will be beneficial to borrow money under the Uniform Revenue Bond Act and under Ordinance No. 176750 to finance the current and proposed costs of carrying out the City’s urban renewal plans and to refinance outstanding interim financings. The borrowings will be simpler and less costly if they are secured by the City’s general fund.

NOW, THEREFORE, the Council directs:

A.  Bonds Authorized. The City is hereby authorized to issue bonds under the Uniform Revenue Bond Act and under Ordinance No. 176750 to finance the current and proposed costs of carrying out the City’s urban renewal plans, and to refinance outstanding interim financings, in the following maximum principal amounts for the following urban renewal areas:

B.  Security for Bonds. The bonds authorized by this ordinance shall be secured by a pledge of the City’s full faith and credit and available funds. In addition, the Debt Manager of the City, the Director of the Bureau of Financial Management of the City, the Chief Administrative Officer of the Office of Management and Finance, or the person designated by the Chief Administrative Officer of the Office of Management and Finance to act as Debt Manager under this ordinance (the “Debt Manager”), may pledge the tax increment revenues of each urban renewal area to secure the bonds that are issued for that area.

C.  Delegation. The Debt Manager may, on behalf of the City and without further action by the Council:

(1)  issue one or more bonds for each urban renewal area, provide that the bonds shall secure lines of credit, establish the final principal amounts, maturity schedules, interest rates, sale prices, redemption terms, payment terms and dates, and other terms of the bonds, and select one or more underwriters or lenders and negotiate the sale of the bonds with those underwriters or lenders;

(2)  participate in the preparation of, authorize the distribution of, and deem final any disclosure documents for the bonds;

(3)  enter into covenants to secure the bonds, including covenants to issue obligations to refinance the bonds, and covenants to levy, collect and apply tax increment revenues to pay the bonds;

(4)  provide that particular bonds will bear interest which is excludable from gross income, and provide that other bonds will bear interest which is includable in gross income, under the Internal Revenue Code of 1986, as amended;

(5)  issue, sell and deliver the bonds; and,

(6)  execute lines of credit, loan agreements, and any other documents, and take any other action in connection with the bonds which the Debt Manager finds is desirable to carry out this ordinance.

Section 2. Declaration of Emergency. The Council declares that an emergency exists because there is an immediate need to fund projects in several urban renewal areas; therefore; this ordinance shall be in force and effect from and after its passage by the Council.

Passed by the Council, OCT 30 2002

Mayor Vera Katz

Office of Management and Finance

TG:EJ:Bond Counsel

October 21, 2002

BACKING SHEET INFORMATION

AGENDA NO. 1278-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 176989