Title
Request for Authorization to refund all or part of the outstanding Building Authority General Obligation Limited Tax Bonds, Series 2002
Body
Whereas, pursuant to the provisions of Act No. 31, Public Acts of Michigan, 1948 (First Extra Session), as amended (“Act 31”), the City of Rochester Hills (the “City”) and the Rochester Hills Building Authority (the “Authority”) have entered into a contract of lease dated as of February 1, 2002 (the “Contract of Lease”) relative to the acquisition, construction, furnishing and equipping by the Authority of an addition and improvements and renovations to the City Hall of the City for lease to the City; and
Whereas, pursuant to the Contract of Lease and the provisions of Act 31, the Authority has issued its Building Authority Bonds, Series 2002 (the “Prior Bonds”); and
Whereas, the Prior Bonds remain outstanding in the aggregate principal amount of $7,000,000, mature in various principal amounts in the years 2011 through 2021 and bear interest at rates per annum which vary from 4.125% to 4.75%; and
Whereas, the City and the Authority have been advised that the Prior Bonds could be refunded, in whole or in part, to secure savings for the City and thereby benefit the taxpayers of the City; and
Whereas, Section 11(1) of Act 31 and Part VI of Act No. 34, Public Acts of Michigan, 2001, as amended (“Act 34”) authorize the issuance of building authority refunding bonds for the purpose of refunding all or a portion of the Prior Bonds; and
Whereas, the City Council of the City has determined that it is in the best interest of the City to secure savings for the City through the issuance by the Authority of such building authority refunding bonds.
Now, Therefore, Be It Resolved that:
1. The Authority is requested and authorized to issue its building authority refunding bonds in the aggregate principal amount of not to exceed $7,500,000 (the “Refunding Bonds”) pursuant to the provisions of Act 31 and Act 34 for the purpose...
Click here for full text