RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE EXPENSES FOR THE DOWNTOWN ECONOMIC DEVELOPMENT INITIATIVE (2007-05-21/R-9)

WHEREAS, the Town of Chapel Hill desires to develop Lot 5 in accordance with the agreement made with RAM Development; and

WHEREAS, the Town proposes to finance these renovations through installment contracts that spread the cost of the Project over a twenty-year period;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill, pursuant to the requirements of the United States Treasury Regulations Section 1.150-2, that the Council intends this resolution to constitute a Declaration of Official Intent to Reimburse under such Treasury Regulations Section.

BE IT FURTHER RESOLVED that:

1. Expenditures to be incurred.  The Issuer anticipates incurring expenditures (the “Expenditures”) for the Downtown Economic Development Initiative,
2. Plan of Finance.  The Issuer intends to finance the costs of the Project with the proceeds of debt to be issued by the Issuer (the “Borrowing”) the interest on which is to be excluded from gross income for Federal income tax purposes.
3. Maximum Principal Amount of Debt to be Issued.  The maximum principal amount of the Borrowing to be incurred by the Issuer to finance the renovations is $7,705,000.
4. Declaration of Official Intent to Reimburse.  The Issuer hereby declares its official intent to reimburse itself with the proceeds of the Borrowing for the Expenditures incurred by it prior to the issuance of the Borrowing.

BE IT FURTHER RESOLVED that the Council authorizes the Town Clerk to certify a copy of this resolution for the Local Government Commission.

This the 21st day of May, 2007.