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ORDINANCE 2017-08 ORDINANCE 2017-8 BOND ORDINANCE APPROPRIATING$7,271,000.00 AND AUTHORIZING THE ISSUANCE OF$6,907,450.00 BONDS OR NOTES OF THE TOWNSHIP OF CHERRY HILL IN THE COUNTY OF CAMDEN, NEW JERSEY TO ACQUIRE THE LEASEHOLD INTEREST IN THE CHERRY HILL PUBLIC LIBRARY FROM THE CAMDEN COUNTY IMPROVEMENT AUTHORITY WHEREAS, the Township of Cherry Hill, in the County of Camden (the 'Township") previously determined to undertake a capital project (the "Project") consisting of the acquisition of Land (as defined in the hereinafter defined Lease Agreement), and the constructing, furnishing and equipping of a new Township Library (together, and as further defined in the Lease Agreement, the"Initial Project"); and WHEREAS, in connection with the financing of the Initial Project, the Township leased the Land to the Camden County Improvement Authority (the "Authority"), and the Authority sub-leased the Land and leased the completed Township Library to the Township pursuant to a Lease Agreement dated as of May 1, 2002 (as amended and supplemented, the"Lease Agreement"); and WHEREAS, pursuant to Section 5.12 of the Lease Agreement, the Township may purchase the Authority's right, title and interest in and to the Initial Project by paying a purchase option price equal to, among other amounts, the amount required to refund and redeem the bonds issued by the Authority to fund the Initial Project, and, upon such payment of such purchase option price, all right, title and interest in and to the Initial Project transfers to the Township; and WHEREAS, the Township Council has determined that making such purchase option price through issuance of Township bonds and/or notes and acquiring the leasehold interest in and to the Initial Project, under current market conditions,will generate debt service savings to the Township. NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE TOWNSHIP COUNCIL OF THE TOWNSHIP OF CHERRY HILL, IN THE COUNTY OF CAMDEN, STATE OF NEW JERSEY (not less than two-thirds of all members thereof affirmatively concurring) AS FOLLOWS: Section 1. The acquisition of the leasehold interest in and to the Initial Project as described in Section 3 of this bond ordinance is hereby authorized by the Township of Cherry Hill, in the County of Camden, New Jersey as a general improvement. For the said acquisition described in Section 3, there is hereby appropriated the sum of $7,271,000.00 including the aggregate sum of $363,550.00 as the down payment for said acquisition required by the Local Bond Law and now available therefore by virtue of provisions in a previously adopted budget or budgets of the Township for down payment or for capital improvement purposes. Section 2. For the financing of said acquisition, and to meet the part of said $7,271,000.00 appropriation not provided for by application hereunder of said down payment, negotiable bonds of the Township are hereby authorized to be issued in the principal amount of$6,907,450.00 pursuant to the Local Bond Law. In anticipation of the issuance of said bonds and to temporarily finance said improvements or purposes, negotiable bond anticipation notes of the Township in a principal amount not exceeding $6,907,450.00 are hereby authorized to be issued pursuant to and within the limitations prescribed by said Law. Section 3. The purpose hereby authorized and the purpose for financing of which said obligations are to be issued, the appropriation made for the estimated cost of such purpose, the down payment appropriated for such purpose, and the estimated maximum amount of bonds or notes to be issued for such purpose, are respectively as follows: Appropriation Estimated Maximum And Amount Bonds Acquisition Estimated Costs Down Payment or Notes (a) Acquisition of the leasehold interest in property known as 1104 Kings Highway, Block 340.30 Lot 20 on the tax maps of the Township, and the Cherry Hill Public Library located thereon, from the Authority, including all related costs and expenditures necessary therefor and incidental thereto. Total: $7,271,000.00 $363,550.00 $6,907,450.00 Section 4. All bond anticipation notes issued hereunder shall mature at such times as may be determined by the Chief Financial Officer; provided that no note shall mature later than one year from its date. The notes shall bear interest at such rate or rates and be in such form as may be determined by the Chief Financial Officer. The Chief Financial Officer shall determine all matters in connection with notes issued pursuant to this bond ordinance, and the Chief Financial Officer's signature upon the notes shall be conclusive evidence as to all such determinations. All notes issued hereunder may be renewed from time to time subject to the provisions of N.J.S.A. 40A:2-8.1(a). The Chief Financial Officer is hereby authorized to sell part or all of the notes from time to time, at not less than par and accrued interest, at public or private sale and to deliver them to the purchasers thereof upon receipt of payment of the purchase price plus accrued interest from their dates to the date of delivery thereof. The Chief Financial Officer is directed to report in writing to the governing body at the meeting next succeeding the date when any sale or delivery of the notes pursuant to this bond ordinance is made. Such report must include the amount, the description, the interest rate and the maturity schedule of the notes sold, the price obtained and the name of the purchaser. Section 5. The following additional matters are hereby determined, declared, recited and stated: (a) The said purposes described in Section 3 of this bond ordinance are not current expenses and are acquisitions or improvements which the Township may lawfully make and no part of the cost thereof has been or shall be specially assessed on property specially benefited thereby. (b) The average period of usefulness of said purposes within the limitations of said Local Bond Law, according to the reasonable life thereof computed from the date of the said bonds authorized by this bond ordinance is 15 years. (c) The supplemental debt statement required by said Law has been duly made and filed in the Office of the Township Clerk and a complete executed duplicate thereof has been filed in the Office of the Director of the Division of Local Government Services in the Department of Community Affairs of the State of New Jersey, and such statement shows that the gross debt of the Township as defined in said Law is increased by the authorization of the bonds and notes provided for in this bond ordinance by $6,907,450.00 and the said obligations authorized by this bond ordinance will be within all debt limitations prescribed by said Law. (d) An aggregate amount of not exceeding $24,100.00 for interest on said obligations, costs of issuing said obligations, engineering costs and other items of expense listed in and permitted under N.J.S.A. 40A:2-20 may be included as part of the cost of said acquisition and is included in the foregoing estimate thereof. (e) The Township reasonably expects to commence the purpose described in Section 3 hereof, and to advance all or a portion of the costs in respect thereof, prior to the issuance of bonds or notes hereunder. To the extent such costs are advanced, the Township further reasonably expects to reimburse such expenditures from the proceeds of the bonds or notes authorized by this bond ordinance, in an aggregate amount not to exceed the amount of bonds or notes authorized in Section 2 hereof. Section 6. The applicable Capital Budget is hereby amended to conform with the provisions of this Bond Ordinance to the extent to any inconsistency therewith, and the resolution promulgated by the Local Finance Board showing full detail of the amended Capital Budget and Capital Program as approved by the Director of the Division of Local Government Services, is on file with the Clerk and available for inspections. Section 7. The full faith and credit of the Township are hereby pledged to the punctual payment of the principal of and interest on the said obligations authorized by this bond ordinance. Said obligations shall be direct, unlimited obligations of the Township, and the Township shall be obligated to levy ad valorem taxes upon all the taxable property within the Township for the payment of said obligations and interest thereon without limitations of rate or amount. 2 Section 8. The Chief Financial Officer of the Township is hereby authorized to prepare and to update from time to time as necessary a financial disclosure document to be distributed in connection with the sale of obligations of the Township and to execute such disclosure document on behalf of the Township. The Chief Financial Officer is further authorized to enter into the appropriate undertaking to provide secondary market disclosure on behalf of the Township pursuant to Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") for the benefit of holders and beneficial owners of obligations of the Township and to amend such undertaking from time to time in connection with any change in law, or interpretation thereof, provided such undertaking is and continues to be, in the opinion of a nationally recognized bond counsel, consistent with the requirements of the Rule. In the event that the Township fails to comply with its undertaking, the Township shall not be liable for any monetary damages, and the remedy shall be limited to specific performance of the undertaking. Section 9. The Mayor of the Township is hereby authorized and directed to provide written notice to the Authority of the Township's intention to exercise its option to purchase the Initial Project by paying to the Authority the purchase option price set forth in the Lease Agreement (the"Purchase Option Notice"). The Purchase Option Notice shall be in a form that satisfies the requirements of the Lease Agreement and is satisfactory to counsel to the Township. Any action taken by the Mayor prior to the date hereof with respect to the preparation, execution and/or delivery of the Purchase Option Notice is hereby ratified, approved and confirmed. The Mayor is hereby further authorized and directed to take all further actions, and to execute such certificates, instruments or documents, deemed necessary, convenient or desirable by him, in consultation with counsel, in connection with all matters set forth in or contemplated by this bond ordinance. Section 10. The recitals to this bond ordinance are incorporated as if set forth in full herein. Section 11. This bond ordinance shall take effect twenty (20) days after its final passage and publication as required by law. INTRODUCED: APRIL 24,2017 ADOPTED: MAY 8, 2017 CHARLES CAHN,MAYOR COUNCIL PRESI, NT ATTEST: NANCY L. S FFOS, RMC TOWNSHIP CLERK 2