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HomeMy WebLinkAboutOrdinance 4205 FG:54076310.1 ORDINANCE NO. 4205 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AUTHORIZING THE EXECUTION AND DELIVERY OF AMENDMENTS TO CERTAIN DOCUMENTS IN CONNECTION WITH EXTENDING THE MATURITY OF A PROMISSORY NOTE ISSUED BY THE EDMONDS PUBLIC FACILITIES DISTRICT TO FIRST FINANCIAL NORTHWEST BANK; AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH; AND FIXING A TIME WHEN THE SAME SHALL BE EFFECTIVE. THE CITY COUNCIL OF THE CITY OF EDMONDS DOES ORDAIN AS FOLLOWS: Section 1. Findings and Determinations. The City Council makes the following findings and determinations: 1.1 Pursuant to chapter 67.28 RCW, the City of Edmonds, Washington (the “City”), is authorized to acquire and operate “tourism-related facilities.” 1.2 RCW 67.28.130 authorizes the City and the Edmonds Public Facilities District (the “District”) to participate in the financing of all or any part of a tourism-related facility on such terms as may be fixed by agreement between the respective legislative bodies without submitting the matter to a vote of the electors thereof, unless the provisions of the general laws of the State of Washington applicable to the incurring of indebtedness require such submission. 1.3 Pursuant to RCW 67.28.130, Ordinance No. 3676, adopted by the City Council on January 15, 2008, and Ordinance No. 3687, adopted by the City Council on June 3, 2008, the City authorized the execution and delivery of a Contingent Loan Agreement (the “Original Contingent Loan Agreement”) with the District to provide credit support for $4,000,000 aggregate principal amount of Sales Tax Obligation and Refunding Bonds, 2008, issued by the District (the “Bonds”). 1.4 The District issued its Edmonds Public Facilities District Promissory Note, 2018 (the “Note”) in the principal amount of not to exceed $3,000,000 to repay and redeem the Bonds and to pay costs of issuance and sale of the Note. 1.5 In connection with the issuance of the Note by the District, the City and the District amended and restated the Original Contingent Loan Agreement to provide credit support for the Note (as so amended, the “Contingent Loan Agreement”), and the City entered into an assignment of deposit account (the “Collateral Agreement”) with First Financial Bank (the “Bank”) setting forth the terms and conditions upon which the City purchased a certificate of deposit from the Bank in an amount equal to the principal amount of the Note to secure payment by the District of the principal of the Note. 1.6 The District authorized the issuance of the Note pursuant to District Resolution No. 2018-03 (the “District Resolution”). Pursuant to Section 15(b) of the District Resolution, the FG:54076310.1 consent of the City is required for certain amendments to the PFD Resolution, including any amendment authorizing the extension of maturity of the Note. 1.7 The District has informed the City that the District and the Bank have agreed to modify the terms of the Note to extend the maturity of the Note, and the City Council has determined that it is in the best interest of the City to authorize the amendment of certain documents required in connection with the extension of the maturity of the Note. Section 2. Approval of Amendment to Contingent Loan Agreement. The Mayor is authorized and directed, on the City’s behalf, to execute and deliver an amendment to the Contingent Loan Agreement that permits the maturity of the Note to be extended from December 31, 2028, to December 31, 2029, and that extends the maturity of loans made under the Contingent Loan Agreement from December 31, 2028, to December 31, 2029. Section 3. Approval of Amendment to Collateral Agreement. The Mayor is authorized and directed, on the City’s behalf, to execute and deliver an amendment to the Collateral Agreement that extends the maturity of the Collateral Agreement from December 31, 2028, to December 31, 2029. Section 4. Consent to Amendment of District Resolution. The Mayor is authorized and directed, on the City’s behalf, to execute and deliver a consent to amendment of the District Resolution that permits the maturity of the Note to be extended from December 31, 2028, to December 31, 2029, and that permits no principal payment to be made on the Note on December 31, 2020. Section 5. Authorization and Ratification. The Administrative Services Director, the Mayor, and the other appropriate officers of the City are authorized and directed to take any actions and to execute such documents as in their judgment may be necessary or desirable to carry out the terms of, and complete the transactions contemplated in connection with, this ordinance, the Contingent Loan Agreement, the Collateral Agreement, and the District Resolution. All actions previously taken in furtherance of and not inconsistent with the provisions of this ordinance are hereby ratified and confirmed in all respects.