Financial- COPS (Due Diligence Authorizing Resolutions)

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resolution is authorized by the terms of ORS 271.390. This resolution would also appoint a Trustee to act under the terms of a finance and trust agreement. A copy of the agreement is included with the materials supporting the resolution. The Trustee would hold a mortgage in the county's share of the real property and condominium interests to secure the county's repayment obligation. The Trustee would also hold the proceeds in the Certificate Payment Fund and the Project Fund. ~. This resolution also delegates to the Project Coordinator the responsibility and authority to execute the finance and trust agreement, to prepare the official statement, to fix the terms of the certificates within the limits set forth in the resolution, to negotiate the terms of sale, to conclude the sale, to execute and record the mortgage interests mentioned above, and to take other necessary and reasonable action to complete the transaction on behalf of the county. Such delegation is commonly done because of the substantial commitment of time and the frequent adjustments in deadlines make it impracticable for a governing body, such as the board of commissioners, to effectively undertake such actions itself. FISCAL IMPACT: If this resolution is adopted, and the COPs are issued, Marion County will borrow $22,000,000 at interest to be determined at the time of sale. The Certificates are expected to be for a term of 25 years, and not cost more that $1,580,000 per year. This debt will not authorize any increase in the real property tax levy for Marion County. OPTIONS: There are several options: 1. Defer action until a later date. There is still a duty under the intergovernmental development agreement to determine by February 1, 1999, whether funds can be borrowed. At the present time market interest rates are favorable. There is a certain volatility in the market. Future rates cannot be predicted. 2. Decline to proceed. Such an action may lead to termination of the agreement. In this event the non-terminating party may elect to continue with a project of its own design, buy the other party's interest in the real property, or force a partitioning of the real property. Each party would be required to pay its respective share of the costs to terminate this project. 3. Adopt the resolution. The Project Coordinator will proceed to sell COPs, assuming the conditions for sale can be satisfied, by the end of this calendar year. The financing condition of the intergovernmental agreement would then be satisfied. The next step would be to proceed with bids for construction of the project. cc: Billy Wasson, Project Coordinator Edward Einowski, Bond Counsel Ben C. Fetherston, Jr., Attorney for Transit District chsq:copresol.mem