Title
Adopt a Resolution declaring the official intent of the County of Monterey to reimburse certain expenditures related to due diligence on the potential acquisition of Shilling Place from proceeds of indebtedness.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt a Resolution declaring the official intent of the County of Monterey to reimburse certain expenditures related to due diligence on the potential acquisition of Shilling Place from proceeds of indebtedness.
SUMMARY AND DISCUSSION:
The County is contemplating the possible acquisition of 1600 Shilling Place and has been expending certain funds in the exercise of its due diligence concerning the possible acquisition. If a decision is ultimately made to acquire the property, it is anticipated that the County will issue debt for at least part of the purchase price.
Section 1.150-2 of the Treasury Regulations (26 CFR 1.150 2) requires an Issuer to declare its reasonable official intent to reimburse prior expenditures for a Project from proceeds of a subsequent borrowing. The County has, and is, incurring significant expenses for appraisals, engineering, and other due diligence related to the proposed acquisition of Schilling Place. It is anticipated that, should the decision be made to acquire the property, Monterey County will issue tax exempt indebtedness to pay for its acquisition, as well as other capital projects, within the next year. This resolution assures compliance with Treasury Regulations. Should no acquisition occur, or if no indebtedness is issued, no reimbursement is possible.
OTHER AGENCY INVOLVEMENT:
Bond Counsel and the Managing Underwriter have reviewed this action and concur with the recommendation. County Counsel has reviewed this action as to form and legality.
FINANCING:
Adoption of this Resolution has no initial fiscal impact to the County. Should the acquisition and issuance transpire, the County will be made whole for expenditures incurred after June 1, 2014, related to the due diligence process.
Prepared by: Ron Holly, Chief Deputy Auditor-Controller, x5493
Approved by: Michael J. Miller, CPA, CISA, Auditor-Controller, x5084
Attachments:
Resolution