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CITY OF NORTH OLMSTED
<br />ORDINANCE NO. 97- 6
<br />BY: Councihnember M[t. LIND
<br />AN ORDINANCE AUTHORIZING THE SUPPLEMENTATION OF
<br />DOCUMENTS PROVIDING FOR THE OPTIONAL REDEMPTION
<br />OF CERTAIN BONDS TO REFLECT PROPERLY THE CITY' S
<br />UNDERSTANDING AND INTENTION, AND DECLARING AN
<br />EMERGENCY.
<br />WHEREAS, pursuant to Ordinances No. 96-125, No. 96-126, No. 96-127, No.
<br />96-128, No. 96-129, No. 96-130, No. 96-131, No. 96-132, No. ~-133, No. 96-134, No.
<br />96-135, No. 96-136, No. 96-137, No. 96-138 and No. 96-139, passed September 17, 1996
<br />(collectively, the Bond Ordinances), this Council authorized the issuance and sale of
<br />$43,020,000 City of North Olmsted, Ohio, Various Purpose Improvement Bonds, Series 1996
<br />(collectively, the Bonds}; and
<br />WHEREAS, as authorized and directed in the Bond Ordinances, the Bonds were sold
<br />at private sale to NatCity Investments, Inc. (NatCity) upon the terms and conditions set forth
<br />in the Bond Ordinances, a certificate of award dated November 20, 1996 (the Certificate of
<br />Award) and the Bond Purchase Agreement dated November 20, 1996, between the City and
<br />NatCity (the Bond Purchase Agreement); and
<br />WHEREAS, this Council has determined, consistently with information provided by
<br />NatCity and the Mayor and Director of Finance of this City, that (i) the Bonds stated to mature
<br />on December 1, 2011 (the 2011 Term Bonds) were, in fact, offered and sold by NatCity to
<br />subsequent purchasers upon the oral representation that such 2011 Term Bonds would not be
<br />subject to call for redemption prior to their maturity other than pursuant to mandatory sinking
<br />fund redemption requirements, in accordance with prior discussions between NatCity and City
<br />officials, (ii) the City received substantial additional benefit and consideration for the 2011 Term
<br />Bonds (as reflected in the interest rate on and purchase price for those Bonds) upon their sale
<br />by virtue of their being marketed by NatCity to subsequent purchasers pursuant to the oral
<br />representation that they were not subject to redemption prior to maturity other than pursuant to
<br />mandatory sinking fund redemption requirements, and (iii) while that representation was made
<br />orally by NatCity, the Bond Ordinances and the Certificate of Award, attached to and
<br />incorporated in the Bond Purchase Agreement, the preliminary and final Official Statements
<br />pursuant to which the Bonds were offered and sold and the Bonds themselves all provided for
<br />the 2011 Term Bonds also to be subject to redemption, upon certain terms and conditions, by
<br />and at the sole option of the City, beginning on December 1, 2007, consistently with written
<br />information provided to the City and its counsel by NatCity which inadvertently omitted
<br />reference to the fact that the 2011 Term Bonds, unlike the other Bonds maturing after December
<br />1, 2007, were not to be subject to such optional redemption, and (iv) such inadvertent omission
<br />and inconsistency were not discovered until after the issuance of the Bonds on December 4,
<br />1996; and
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