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RESOLUTION NO. 2004-41
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, GRANTING PRELIMINARY APPROVAL
OF THE FINANCING BY THE TOWN OF FOUNTAIN HILLS, ARIZONA,
MUNICIPAL PROPERTY CORPORATION OF NEGOTIATION OF THE
SALE OF THE CORPORATION'S REVENUE BONDS OR OBLIGATIONS;
AND AUTHORIZING ACTIONS TO BE TAKEN WITH RESPECT TO THE
FINANCING AND THE PREPARATION AND DISSEMINATION OF A
PRELIMINARY OFFICIAL STATEMENT.
WHEREAS, the Town of Fountain Hills, Arizona (the "Town") believes it is in the best
interests of the Town to acquire, construct and equip Phase II of the Fountain Hills Civic Center
(the "Project") and to acquire through lease-purchase from the Town of Fountain Hills
Municipal Property Corporation (the "Corporation"), an undivided interest in the Project; and
WHEREAS, the Town desires that the Corporation issue its revenue bonds or
obligations (the "Bonds") to finance all or a portion of the construction and acquisition costs of
the Project; and
WHEREAS, the Town acknowledges that the Corporation's Bonds will be secured by
payments made by the Town pursuant to a lease-purchase agreement and that the Town's
obligation to make lease payments will be irrevocably secured by a pledge of the Town's excise
taxes; and
WHEREAS, by this resolution the Town will give approval to proceed with establishing
the time and the terms and conditions of the sale of the Bonds, preparing the documents
necessary for the acquisition and financing of the Project and ordering the appropriate parties
take necessary actions to facilitate the sale of the Bonds and the acquisition, construction and
equipping of the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. PRELIMINARY APPROVAL. The Mayor and Council hereby approve
the Project and the financing thereof through the issuance by the Corporation of its Bonds, which
Bonds shall be payable from lease payments received by the Corporation from the Town. The
Town's obligation to pay lease payments shall be secured by an irrevocable pledge of its Excise
Taxes, as such term has been defined in previous Corporation financings. Notwithstanding the
pledge of all Excise Taxes, the Town expects to pay the lease payments from the proceeds of its
0.1% local sales tax.
The Mayor and Council hereby authorize the preparation, issuance and sale by the
Corporation of a series of Municipal Facilities Revenue Bonds or Obligations in an aggregate
principal amount estimated to be approximately $3,500,000. It is estimated the cost of the
Project will be approximately $5,400,000. The Bonds shall be issued and sold and delivered in
accordance with the provisions of a resolution to be adopted by the Mayor and Council at a later
date granting final approval of the terms and conditions of the sale of the Bonds (the
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"Authorizing Resolution"), and in accordance with the provisions of such other documents as
may be necessary to carry out the financing of the construction, equipping and acquisition of the
Project (collectively, the "Financing Documents").
SECTION 2. TERMS. The Bonds will be dated such date as may be set forth in the
Financing Documents. The actual terms of the Bonds, including the principal amount, maturity
date, interest rates and any redemption provisions will be set forth in the Financing Documents.
The Town Manager and the Accounting Supervisor are authorized to establish such terms and
present such terms to the Mayor and Council for final approval.
SECTION 3. OFFICIAL STATEMENT. The preparation of preliminary official
statement relating to the Bonds is hereby authorized and the Mayor, Town Manager or
Accounting Supervisor are authorized to deem the official statement "final" for all purposes of
Section 240.15c2-12 General Rules and Regulations Securities Exchange Act of 1934 (the
"Rule"), and to approve, execute and deliver the official statement on behalf of the Town and
such execution shall be deemed conclusive evidence of approval of the official statement.
SECTION 4. REQUEST FOR MUNICIPAL PROPERTY CORPORATION ACTION.
The Town hereby requests the Corporation to take any and all actions necessary to assist in the
issuance, sale and delivery of the Bonds.
SECTION 5. AUTHORIZATION. All officers and agents of the Town are hereby
authorized and ordered to cause the preparation of the Financing Documents and to take any and
all actions which conform to the purposes and intent of this resolution and which further the
�•► financing of the Project and the issuance and sale of the Bonds as contemplated by this
resolution.
SECTION 6. EFFECT AND SEVERABILITY. This resolution shall be in full force
and effect from and after its passage and approval by this Council. If any section, paragraph,
clause or phrase of this resolution shall for any reason be held to be invalid or unenforceable, the
invalidity or unenforceability of such section, paragraph, clause or phrase shall not affect any of
the remaining provisions of this resolution.
PASSED AND ADO 1 ED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, September 16, p0, .
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FO ' ' O , qF OUNTAIN HILL : ATTESTED TO:
1111
PAIllh... Alle. )69idei-k( ',)&1_„eA,
W. J. Ni wil.grMayor Bevelyn J. ?endeP, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
L...-"' / <" P GUST ROSENFELD, P.L.C., Bond Counsel
Timo by G. Pickering, T anager 4.-2,9X- J 21,_
By: Scott Ruby C.
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CERTIFICATION
itow
I, Bev Bender the duly appointed and acting Town Clerk of the Town of Fountain
Hills, Arizona, do hereby certify that the above and foregoing Resolution was duly passed by the
Town Council of the Town of Fountain Hills, Arizona, at a regular meeting held on September
16, 2004, and the vote was % aye's and D nay's and that the Mayor and 6 Council
Members were present thereat.
DATED: September 16, 2004.
„vait_a2,
Clerk, Town 9 F ntain Hills, Arizona
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