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HomeMy WebLinkAbout2350�4- CITY OF KENT, WASHINGTON ORDINANCE NO.(� AN ORDINANCE relating to Local Improvement District No. 283, accepting the offer of First Interstate Bank of Washington, N.A., formerly Pacific National Bank of Washington, to purchase and extend warrants heretofore issued and ratifying and confirming actions of the City and its officers and employees taken consistent with this ordinance. WHEREAS, by Ordinance No. 2102 passed by the City Council on June 19, 1978, local improvement district warrants were autho- rized to be issued in payment of the cost and expense of the improvements therein ordered, such warrants to be payable out of the "Local Improvement Fund, District No. 283" therein created, to bear interest from the date thereof at a rate to be thereafter fixed by ordinance and to be redeemed in cash and/or by local improvement district bonds therein authorized to be issued, such interest-bearing warrants to be hereinafter referred to as "revenue warrants"; and WHEREAS, on January 5, 1979, Pacific National Bank of Washington, now First Interstate Bank of Washington, N.A., offered to purchase and hold $1,981,316 of such warrants between January 1, 1979, and January 1, 1980, at an interest rate of 6.21% per annum, with the representation by the City that the project would be com- pleted by the winter of 1979, and did take, purchase and receive warrants under such offer; and WHEREAS, under that offer such warrants should have been redeemed by the time of this ordinance, and the holder bank has agreed to extend its offer to hold and purchase such warrants at the rate of 75% of that bank's prime for a period of 182 days from the date of this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN as follows: Section 1. The offer of Pacific National Bank of Washington, dated January 5, 1979, to purchase revenue warrants issued on the Local Improvement Fund, District No. 283, is accepted, ratified and confirmed in accordance with its terms, and the interest rate on such warrants until they are redeemed or extended is fixed at 6.21% per annum. Section 2. Revenue warrants issued on the Local Improvement Fund, District No. 283, pursuant to Ordinance No. 2102 and this ordinance having been reasonably expected to be redeemed prior to this date and, by reason of unforeseen litigation and other factors, such redemption has not occurred, all such warrants presently outstanding and those warrants issued after the date of this ordinance shall bear interest at the rate of 75% of the prime lending rate of First Interstate Bank of Washington as of the effective date of this ordinance for warrants then outstanding as of the date of warrants hereafter issued, all of such warrants to be redeemed within 182 days after the effective date of this ordinance or extended on the basis of an interest rate agreed to at that time between the bank and Director of Finance, all in accordance with the offer of First Interstate Bank of Washington, dated November 3, 1981. Section 3. All actions heretofore taken consistent with the terms of this ordinance are ratified, confirmed and approved. Section 4. This ordinance shall be in full force and effect five (5) days after the date of its publication as provided by law. PASSED by the City Council and APPROVED by the Mayor of the City of Kent, Washington, at a regular open public meeting thereof, this 17th day of May, 1982. ATTEST: -- Mayor Deputy eity Clerk FORM APPROVED: City Attorney Attorney 2 PASSED the _ ( day of 1982. APPROVED the day of 1982. PUBLISHED the day of 1982. I hereby certify that this is a true copy of Ordinance No. __, n`�j() , passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. ��d—I z_(SEAT,,) BETTY Y, DEP Y CITY CLERK