THE CITY OF SOUTH EIJCLID

ORDINANCE NO.: Oi-O9 -Jarrrrary I" , 2OO9

I{EQUESTED BY: Romeo
II'ITRODUCED BY: lvlalzot-

4"N ORDINA]\CR
'XFIE SALE OF IN
TO PROVIDE FOR ISSUANCE AND NOTES
ANTTCIPA-|ION O F T H E I S S U A } { C E O F I 3 O N D S I N A P R I N C I P A L
AMOUNT N O T T O E X C E , E D $ 2 O , O O O , O OFOO R T H E P U R P O S E O F P A Y I N G
-fHE OF TI-IE ACQUISII-ION, AND ANY NECESSARY
COSTS
CLEARA}JCE AND PREPARA:|ION, OF REAL PROPERTY FOIT URBAN
I1EDEVELOPMEN:| INCLUDiNCi PUBLIC INFRASTRUCTU[{E
"
]MPROVE'N4ENTS TO BE LOCATED TI{EREON, AND PAYTNG COSTS OF
ISSUANCE; AND DEC]LARING AN EMERGENCY.

WI-IEREAS, pr-rrsuantto Or-clinar-rce No. 86-06, pzissed Janualy 9, 2OO7, the Corlncil of tl-re
City agtlrorized tire isslrance of notes in anticipation of the issr-ranceof bonils in the principal
arnognt of $l7,0OO,OOO for the purpose hereinafter statecl, which ttotes rarere datecl Janr-rar-y30,
20O-/ and matr-rred on January 29,2OO8, rvhich notes were r-etired with ploceeds of t-rotesin tl-re
amount of $18,01O,OOO which notes are datecl Janttary 28, 2008 airci rvill lratl-rre I'anvan:y )1,
2009 (the "2008 Notes"); and

W1-IEREAS, the Council of the City iras cleterrnined tirat payrnent of the outstanding
principal of the 2008 lrlotes shelll be flurded at neaturity by tire issr'rance of uew notes in a
pr-ilcipal alrrollnt not to exceed $20,000,000 in anticipation of the issuance of boucls for the
pr14)ose irereinaft er: stated; aird

WHEREAS, the fiscal officer has certified to the estirnated life of the improvernents to be
colstructed frorn the proceeds of tire bonds anticipated, the maximulrr rrratlnity of the bonds
anticipated and the notes herein authorized;

NOW, TI-IEREFORE, EE IT ORDAINED by the Council of the City of Soutir Etrclid,

Ohio:

Section I : That it is hereby declared ltecessary to issue bonds of the City of South Euciid
in a principai suirr not to erceed $20,000,000 fol the purpose of paying tire costs of the
acqrLisition, and ally ltecessary clea::ance and preparation, of real pro1rerty For lrrban
recieveiopirrent, including public irefi'astr-ucture irnpr-overtteuts to be locatecl thereon; arrd paying
costs ofissuance.

Section 2: Thart saicl bonds shall be clated January 7,2010, shall bear interest at the
estitrrateclrate of six and fi{ly one-hundredths pelcent (6.50%) per €rnr1lu1l, payable semi-annr-raily
until the plincipal slrrn is paicl, and sl-rall mature in tirirty (30) annual iustalhnents after their
lSS11allCe.

Section 3: That it is l-rereby cletermined that notes (heieinarfter refeneci to as the "Notes")
in a pi-irrcipal a1'noi,rnt not to exceecl:1;20,000,000 sha1l be issr-red in anticipation of tire issr-rauce of
bonds for the aborre-clescribed pruposes. The services o1'Caif-ee, I-Izilter & Gr-iswold LI-P, Bond
Attorneys, Clleveland, Ohio, zrs Bor-id Counsel for the Notes ale heteby retainecl. The Notes shzrll
be sold at private saie and sl-rall bear interest at the lates tixed by the Fit-rance Director or the
}'zleryor in the certificate awarcling tire Notes (the "Certificate o{'Award"), provicled that sltch
rates sl-iall not exceed seven per centurn (7 -Oo/o)per annrun with respect to the Tax-Exernpt Notes
(defined l-rer:eilr) :rnd ten per centlurr (1,Oo/") per anlrlrrrr with respect to the Taxable Notes (as
defined herein;, Irrterest on the Notes sliall be payable at rnatr-u-ity, rvitl-r provision, if recluested by
the pr,rrchaser, that, in the event of clefzrult, the l'Iotes shall bear inter-est, at a rate which shall not
exceecl ten per centLln (1oo/o) per allrlurrr, i-rntii tlre principal sum is paid or: provideci for. Tlre
J:Iotes shall be dated their date of issnance, sl-iall rnatr-ii'e or-r a date that is betrveerr thr-ee neonths
ald twelve morrths, incJ.usive, fi-on-r their date of issuance, ali as deterrniitect by the Finarrce
Director or the Mayor- ancl set forth in the Certificate of Award, irrovicled tl-rat if sucit rnatr-rrity
date is not a business day, the Notes shall rrat.ure on the first business day irrrnrediatelS, preceding
sr,ich date. The Notes shal1 uot be sr-tbject to leclerrrption by the Citlz at any tirne prior to natllrity,

lOn-],+5llr.DOC;l j
unless t1-re Or-igina1 .Purchaser of the Notes recprests that the l'Jotes pr-ovide for such rederlption,
in which case provisiol shall be lracie fbr calling the Nctes for leclernption lrpon ten (10) days
writter-i notice to tire paying Agent fbr the lrJotes (as de1'rnec1 be1ou,), or to the Original Pur-charser
if t1-reFi'.ance Director is the Payirig Agent. In addition the lrlotes sha1l be isstted in the numbei:s
and clenorrrinations be recprestecl by tire Oliginal Pltr<-:haser, ar-id shall be payable ars to both
pr-incipal ancl interest at tiie offtce of the Finance Director of tire City, or at a Lrank or.trnst
.orolrur1y clesignzrtecl by tl-ie Finauce Dir"eotor (irerein inclividuaily or collectiveiy the "Perying
ageit";, r.vithor-rt clech,rction fbr excl-rar-rge, collection or service charge. To the extent thtrt at the
Nlotes funcls of the City, whether tiotr the lerzy of taxes or otlier\ /ise, are not
matndty of the
avarilable in an a11ount sr-rf'ticient to r-etire the Notes, the Coi-rncii of the City shall pass legislation
a'thodzi'g the issuance o1'notes or" boncls, the pr-oceecls of which sheLll be r,rsecl to retire saicl
Notes.
'lhnt
Section zl: t i r e l r l r > t e s s h a l I b e i s s i , r e c li n o n e o r n l o r e s e p a l - a t e i s s u e s o f t a x a b l e o r t a x -
exempt geleral obligaticln notes. The Notes shall state the purpose F<lr wlricil the Notes ai:e
issr_red,sherll state they ar.e issurecl pLlrsLrant to this or-clinarnce, sherll be issuted in the rrlttrrbers ztnil
clenoninations requested by tire Original llurchaser-, aircl shall be execuited by the N{ayor ancl the
Filance Directo1 of the City, providecl that one of such signatltres fflaybe zr fircsirnile signature.

The Notes, pLLrsuant to iite tenls set forth below, may also be isstred to a Depositor:y (as
hereinaller defi1ec1) fo1urse in a trook-entry systenr, (as her:einafter detlned). The Fisczrl Officer is
hereby arLthor:izecl and directed, to the extent necessary or requir:ed, to enter into any agl'een:rents
cletelrrinecl necessary in conr-rection with the authentication, imrnobilizartion, and transfer of
notes, i3cft.rcli1g al-l'altgerrretlts for the payrrrent of principal and interest by wire tl'ansfer, after
cleterrniuing that the execcrtiop tl-rer-eof will not eudauger the {irncis or secr-rrities of tire City,
which cleterrlinartioir sha1l be conclnsively evicienced 1>1,the signing of any such agreerr-rent.

If alcJ as long as a book-ently systern is utilized, (i) the Notes shall be issr-ied in tire fonn
of one Note i1 the narne of the Depositor-y or its nominee, as o\ /lter, and irunobllized in the
cgstocly of the Depository; (ii) the beneficial owl-lers in book-entry forrn shali have rro right to
receive Notes in the fbgrr of physical secr-rrities or cerlitlcates; (iii) ownership of beneflcial
ir-rterests iir book-entry forrrr shall be shown by a book entry on the systern rtaintained and
operatecl by the Depository ancl its Paiticipairts (as heleinafler defined), and transfers of the
oi.vnership of benefrcial interests shail be neade only by book entry by the Depository and its
Farliciparlts; and (i1z) tite Notes as snch shall not be tr-ansfelable or exchangeable, except for
transt-er to alother De1:ositor-y or to ernother nontirtee of a Depositor-y, without ihrlher- action by
the Council of the City.

If agy Deirository cleterrnines not to continue to act as a Depository for tire notes fbr r-rse
i1 a book-entry systern, the Fiscal Officer tnay attempt to have established a securities
clepositor:y,/book-entry relationship with another cFralilied Depository. If the Fiscal OtTicer does
,-roi .',t is unabie to clo so, the Fiscal Officer, after- makir-rg provision f-or notificatioll of the
beleficial owners by the ther-r Depository and any othel arrangelrlents he deerns llecessary, shall
perrrrit u,ithclrawal oItlee reotes fi'orrr the Depository, and authenticate aud deliver note cerlificates
ir.r bear-"r- or legisterecl fonl, as i:r: detenrines, to the assigus of the Depositor:y or its nollinee, al1
at the cost ancl expellpe (inciuding erny costs of pr:iirting), iI'the etretlt is not the resuit of Council
action or- inaction, of those pcrsons t-equesting slrch issr-rance.

As usecl in this Section aucl this Oldinance:

"Bo<;l<-etrtry for-m" or "book-e11try system" nieans a lbrrrr or systelr uncler wfiich (i) the
beneficiai right to principal ancl interest may be transfer-red only through a book entry and
(ii) physical notes are issr-recl only to a Depository or its nominee as owller, rvith the tlotes
"im6robilizecl" to the custody of the Depository, and the book entry is the recot-c1 that identifies
the owners of benetlcial interests in titat prir-iciparl ancl inter:est.

"Depository"" r.rreans any securities deirository that is a clealing agency urnder- f'eder-al larv
operaiiirg and maintaining rr book-errtr-y systerri to recold beneficial or.vnership of the 'right to
principal ancl interest, aucl to eI'fect transfers of notes" in book-ently fonn, and includes and
itr.u1r" ii'ritia1ly The Depository'lirrist Cornparry (a limited pllqtose tr-r-rst company), Ne'"v York,
lrTew Yoi:k.

l O O 4 4 5 il 3 . D O C ; 1 . i
 ,.participant,, means any par-ticipant contracting with a Depository unclel a book-entry
ancl dealer-s, banks anci trust corrrpanies, and clearing
sysrenr and inllurcles secr-rr-ity broker-s
corpolal ions.

That the Notes sirail be solci at private sale lo I{e1u$;1t Capitai ivlarkets Inc.
Section 5: "
(the ..odginal pur-cl-raser',) at not iess thzrn the par vzrlr-re tl-rer-eof by the Fiscal officer- or-the
to cleiiver the Notes, when execurecl,
Mayor-; tl[ Fiscai OFfioer is hereby authorizecl zLnd clir-ectecl
p'r-chaser .Lrpo11 of the pr,Lrchase prrice. The ploceeds c,f sr-tch saie
to tire or-igi'al ther-eof llrryrl.ient
f'urncl incl usecl {br the pr-irpose fbr which the Notes are being issrtecl
sirall be p;ic1 into t1-ieproper
of this orclinarrce arncl to pay those costs of issuance set fbrth in Section
r_r'cler thl provisiols
133.i5(B), Ohio Revised Coc1e. Any prenritrll ancl arccrurecl intet-est shall be tr-ansf'en'ed to the
City's B.nd Retirement F*ncl to be appliecl to 1.he pet)/lTlent of'the principerl of ancl interest on the
Notes in the n')al1ner pr-oviclecl by laLw'

Notes iu
T h e C i t y c o v e n a n t s t l " r a ti t u , i l l r e s t r i c t t h e n s e o f t h e p r o c e e c l s o f t h e T a x - E x e t n p t
to slch extent, iI';ury, as lTray be necessary so that the Tax-Exernpt Notes rvill
s*cl,i r'an'er ancl
llevenure Cocle of 1986, als
.ot cc>r-rstit'te errbitrage boncls uncler Section 148 of the Internal
ft1. Director ol Finarnce, eLsthe fisczr1 off'tcer-, or ai.ly otfier officer- of the
a'-re'cleci (the..Cocle"i.
for tire issnance of the Tax-Exer-npt Notes shall give an appropriate
City harrrng respol1sibility
i.oi- inclusion in tl're tr-anscript of proceeclings for the Tax-Exernpt Notes,
certif]cErte of the City,
the realonable expectations of the City regarcling the amount ancl lrse of all the
setti.g fortir
lriotes, the fercts, oir<;lrmstances, and estirrrates on which they are
pro.eEcls of the Tax-Exernpt
reievant to the tax treatrrreirt of interest on the Tax-
irasecl, a'6 otirer facts ar-rcl circr-rrrrstances
Exemlri Notes.

The City covelairts that (a) it will take or: carlse to be taken such actions which llay be
r-eouirecl of it for the interest oi-i the Tax-Exenrpt Notes to be and rerrrain exch-rded frorn gr-oss
ally actions
iuco're fttr fecleral rlcorrre tax plrl-poses, ancl (b) it will not take or perrrrit to be talcen
affect lirai exclusion, an<1 that it, or persolls acting for it, u'i11, arnong
which would aclversely
(i) apply the of the Tax-Exeirrpt Notes to the govemrnentai
other acts of compliance, 1:r-oceeds
prupose of the borrowing, (ir)l-estrict the yielcl on investrr.ent property acqi-rired witir those
(iii) make tirnely rebate payments to the fedelal government, (iv) rrraintain books and
pro.."ar,
irncl reports, and (v) refrain from certain l.ses of proceeds, all in
iecords and make calculatioirs
to assure such exclusion of that interest under the Code'
s*ch manner- a11d to the extent rrecessal'y
The Direotor of Finance arncl other appropriate officers are itereby ar-rthorized aud directed to take
actions, gra.ke calcr,rlations and rebate paylxents, aud make or give reporis and
ai:ry ancl zr11
cerlifications as 1nay be appropriate to assttre sttch exch-rsion o{'that interest.

Section 6: That the Director of Finance is autl.rorized and directecl to execute a

conti''i1g disclosr-rr-e certilicate (tire "Disclostire Cerlificate") dated the date of delivery of the
Boncls a'd cleliverecl to the Originai Pi-.rrchaser of the Boncls for the benefit of the holders of the
"Bo1c1[o1dels") urld to assist the Original Pttrcl-iaser in coirrplying witb' S E:C
Bo1c1s (the
which Disclosule Cerliflcate shall set f-or1h the City's underlakir-ig to provide
iLnle 1 5c2-12(b)(5),
coveuartts and agrees that it will
annlral reports alcl lotices of certain ewents. The City hereby
provisions of the Disclosure Certificate- Faih-rle of the City
cor-nply with ancl carl-y oLrt ali o.[the
with the Disclosure Celtificarte shali not l-:e considered an everrt of clefault; ltowever,
to coltpiy
apy Noieirolder rrray take such ar.ctions as rnury lre necessar-y anc1 appropr-i:Lte to cause the City to
cornply with its obligatior-rs under this Section-

that tire full

Section 7: Tl1att t6e Notes sha1l be firil general obligaticlns of the City and
prottrpt paynerrt of tire sarrle- The pal
ftrith errrd cr-eclit of the City are hereby pleclgecl for ti:e
z'rnticipatecl by the Notes atlcl any excess ftlncls
vzrlue to be r-eceivecl fi-oqr flre sale of tire boncls
the issnzLlce oL' the Notes sl-ierll, to the extelet l-lecessary, be r-rsec1 only fclr the
restrlting frorl
toget|er- rviilr the .inter-est thereon, ar-rd is hereby pledged fbr
relirenent of tire Notes at nalr-irily
suclr pnrpose.

S_CaLang: That cigring the year:s whiletheNotes are olltstanding, there shail be levied on
ali tjre tu*oirt" irt"perly in ttr- City, in addition to all other taxes, a direct tax annltzLlly trot less
than that whlclt r,vor,rlclhave been leviecl i1'boncls irad been issuecl without the prior issuance of
the Notes. Said tax sleall be ancl is her-eby orcler-ed cornputed, cer-tifiec1, lewied and extended uporl
in the salrle 1Tlanl1er ai'rd at the salle title
the tax clgplicate and collectecl by the sarne officers,
saicl years are certified, exlendecl and collected' Said
that taxes fo. g-n"rul pr-rrposes for each of
piaced Uefo,:L ancl in preference to all oiher iiems and for the firll a111ol1nt thereof'
tax sha1l be

i004-15ll3.DOC;1 l
 s1-ra1lbe placed in a separate and distinct
The flir-rcls <lerived fr-orrr saicl tax levies hereby r-eqtrired
ti-t. sa1ne, shall be in-errocabiy pledged for the
fi-rnd which, togetllel- vrrith tl're interest collectecl or-t
or t1-iebor.rcls in anticipation of u'hichthey
pay1lilel-itof tire pilncipal of ancl interest on the Noies
howetrer, that in each yearr-to the extent tl'rat
are iss.r-red, when ancl as the same fzLl1sdue; provided,
sour-ces for- the 1:aymer-rt Of the Notes ancl bonds and ar-e
revenlles ar-e availa.ble tj-on-i other
clir11t.tax r-rpcinall o:f the taxable properly in
appropriated for sr-rchpLLrpose,the arnrlltnl of-"sr-Lch
so available a'd appr:opr-iated'
tire City si-rallbe r-eil'clci by the amollllt of such l-evel'lres
cove1la11ts to
Sectior-rg: That while the Notes a're otltstanding, tire city hereby
a ' p p r o p r i a t e a n n l r i r l l y ' t o t h e e x t e n t r e q r - t i l e c l , s r - r f F r c i e n t a n 1 o L l n t s f r o r r r r r r u n i cand
i p a lto
i n cctll-itinlre
o r n e t a x to
whe' tire same tb1l dr-re,
revenlles to pay p.ncipal ancl interest of the Notes
an]ot-li'tt necessary to lneet clebt char-ges on the
levy a.c1 collect the rnlrricjpzrl ir-rcorr-ietax in an
covenants to deposit inl.o the Bond Retirenrent
Notes. on or l>etirre l)ecenitrer 1, 2009, the c)ity
pr.irpose' an al11ollnt i'locessary to meet any
Frlnil, fi-otr-r avaij.zrble tlrnds appropr-iatecl f,or the
availzrble in the Boncl Retirerrrent Furcl ancl the
shortfall ihat r-'ay exist between tl-re amount tiren
tunOrtntcifprirrcipalzrrlclinterestcllreatrnattrr:it1z<>l.tlreNcltes.
that all acts, corrditions ancl tirings
Secti.r-r l0: Thzrt it is her:eby cletern-iineclancl r-ecitecl
the issr-ring of the Notes ir-r orcler to iTiake therrr legal,
i1ecessary to be cione pr-ececlentto and in
of the City, rvil1 have been clone ancl lrerforrr-red in regular: and due
valicl anci binding ottig^tiorr*
inclebteclness or taxation' either statLltory or
fbrrrr as requirecl by la."u,;ancl that no iirnitation of
of the Notes'
constittrtional, will i'rave be"n exceedecl in the issltance
'fha1 the Fiscal Officer of the Cit1,, is her-eby clir-ectecl to forwar:d or car-rseto
Section 1 I :
County Auditor of Cuyahoga County and
be forr,varcled a cerlilhecl copy of this Or'clir-iarrceto the
to secure a receiPt there{'or.
of them, are hereby authorized
Sectio* l2: Tirat the lvlayor ancl Fiscal Officer, ol eithel
tl-re Original Purchaser- of the Notes a prelirninary and final
to prepare, execute and cleliver: io
clocument of the city in connection s'ith
official statement or any other appropriatJ clisclosrue
the sale ar-rddelivery of the Notes'
.1.3: -fhat this Cor-rncil
Sectio' it is hereby founcl and cletenrrinecl that all fonrral actions of
acloptecl in an open rneeting of this
co'cerning a*d relating to the passage of this Oldinance were or after
of this Council aird airy of its comrrrittees on
Council, and that all deliberitions the public in
in sucir fonnal action were in meetings open to
Novernber 25" I975, that resulted '121
-zZ of the Otrio Revised Code'
compliairce with all iegal requirements, ir]clucling Seciion
lT]easllre necessary for the
Section l4: That this orcljnance is deemed to be an emefgency
ancl for' furr-ther reason that the for
im'recliate preservation for the putrlic peace, health, and safety
effectiwe to provide ftinds to
the ftlr.ther reasolr that this orclilance is required to be inrrrrediately
and thereby protect the credit of the city'
t-etire the 2oog Notes w.hich ar:e abor-rt td mature
take effect anrf be in force fiom and after the earliest period
Wherefore, this orclinance shall
allorved by izrrv ancl upon signature of the \zlayor'

P e r s s e dt h i s day of .Ianttar'1', ?009.

Mo.l-ttit-to Rot'neo, Presiclent of Corincil

Attest: Ap1:r-ovecl:

Keith A. Benjamir-r, Clerk of Cour-rcil Geoi'gine Welo, IvI:rYor

r\pprovecl as to for-m:

lvjichael Lograsso, Director of Law

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