HomeMy WebLinkAbout2259 Amending Ordinances 2235 and 2253 - Changing Maturity Date of Limited Tax General Obligation BondORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PORT
TOWNSEND AMENDING ORDINANCES NO. 2235 AND 2253 TO
CHANGE THE MATURITY DATE OF THE CITY'S LIMITED TAX
GENERAL OBLIGATION BOND, 1991.
WHEREAS, the City Council passed Ordinance No. 2235 on
April 16, 1991, as amended by Ordinance No. 2253 passed on July 16,
1991, authorizing the issuance and sale of a limited tax general
obligation bond in the principal amount of $250,000 to finance the
cost of constructing and equipping the balloon hangar at Fort
Worden; and
WHEREAS, Farmers Home Administration has indicated that the
bond should mature on July 1, 2011 rather than November 1, 2009;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 2 of Ordinance No. 2235, as amended by Ordinance No.
2253, is hereby amended to read as follows (deletions are stricken
and additions are underlined):
Section 2. AuthOrization of Bond. For the purpose of
providing a portion of the financing for the cost of
constructing and equipping the performing arts center, the
City shall now issue and sell its limited tax general
obligation bond (the "Bond") in the aggregate principal amount
of $250,000. The Bond shall be designated "City of Port
Townsend, Washington, Limited Tax General Obligation Bond,
1991," shall be dated as of the date of delivery thereof to
the Government, as the initial purchaser, shall be numbered
R-l, shall be in the denomination of $250,000, shall be fully
registered, shall bear interest from the date of its issuance
on the unpaid principal balance thereof at the rate of 5.875%
per annum and shall be repaid in semiannual installments of
principal and interest equal to $10,708 each, payable on the
first day of the sixth month following the date of delivery
of the Bond to the Government as the initial purchaser, and
semiannually thereafter on the first day of each six-month
period until all principal installments of the Bond have been
paid or such payment has been .duly provided for; provided,
however, that the final payment of all principal of and
interest on the Bond shall nevertheless be due on~ July
2011. Payments shall be applied first to interest/~nd then
to principal.
Both principal of and interest on the Bond shall be
payable in lawful money of the United States of America to the
owner or owners thereof at the address appearing on the
registration books of the City maintained by the City Clerk-
Treasurer; provided, however, that as long as the Government
is the owner of the Bond, the City shall make payments
directly to the financial office of the Government serving the
city of Port Townsend, Washington, area.
The Bond shall be registered as to both principal and
interest as long as any of the installments of the Bond remain
unpaid, and the City shall maintain in the office of the
Clerk-Treasurer books for the registration and transfer of the
Bond. No transfer of the Bond so registered shall be valid
unless made on said books upon the written request of the
registered owner or his duly authorized agent.
Corresponding changes shall be made in the bond form delivered
to the Farmers Home Administration.
Ail other provisions of Ordinances No. 2235 and 2253 are
hereby ratified and affirmed.
Passed by the Council of the City of Port Townsend, Washington
at a regular meeting thereof held this 3~ day of S~FWW~;~ ,
1991.
ATTEST:
Clerk
CITY OF PORT TOWNSEND, WASHINGTON
Mayor
K: \nmn\:~:~566-89. O01\Zlo.38Z
UNITED STATES Farmers
DEPARTMENT OF H0:e
AGRICULTURE Administration
District O icm- II
P.O. Box E486
Olympia, WA 98507
(206)753-9881
AugUst 19, 1991
City of Port Townsend
540 Water Street
Port Townsend, WA 98368
RE: Loan Closing
Deac Sirs:
When review~.ng the bond submitted, it was determined that the
repayment period should be for 20 years and the final due date should
be July 1, 2011. We have contacted Ms. Nerras, she stated she will
contact you this week concerning this problem.
Sincerely,
District Loan Technician
* Farmers Home Administration is an Equal Opportunity Lender.
I::"~TIl-'t(~ Colplaints of discrimination should be sent to:
Secretary of Agriculture, Washin§ton~ D.C. 20850
P STON
THORGRIMSON
SHIDLER
GATES & ELLIS
ATTORNEYS AT LAW
August 23, 1991
5400 Columbia Center
701 Fifth Avenue
Seattle, WA 98104-7078
Telephone: (206) 623-7580
Facsimile: (206) 623-7022
David Grove
Clerk/TreasUrer
City of Port Townsend
540 Water Street
Port Townsend, WA 98368-5724
Re:
City of Port Townsend, Washington
Limited Tax General Obligation Bond, 1991
$250,000
Dear David:
Farmers Home called and indicated that the maturity date for
the general obligation bond should be July 1, 2011 rather than
November 1, 2009. In order to fix this, the City Council will need
to adopt.~ an amendi31g ordinance.~and~ a new bond will~ need to be.
signed. I have enclosed a form of ordinance and a bond. Once the
ordinance has been passed, please send me a copy and the original
signed and sealed bond and I will see that it is delivered to
Farmers Home.
Please feel free to call me if you have any questions.
Very truly yours,
PRESTON THORGRIMSON
SHIDLER GATES & ELLIS
Nancy M? Neraas
NMN: ih
Enclosures
~: \N~N\225~-89.001 \21 [. 393
cc: John Tobosa
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