City Code Section
- A. The following general conditions apply to the issuance of all industrial development revenue bonds:
- 1. City economic development revenue bonds may be sold at public or private sale, and the bonds may mature at any time or times within the useful life of the project. For public sales, special approval may be required.
- 2. Any bond authorized under this Chapter that is to be sold by public sale must be rated by a nationally-recognized rating agency as Investment Grade.
- 3. Bonds sold through a private sale do not require a rating. For purposes of this Chapter, private sale means a sale of all of the bonds to persons or entities that qualify as “accredited investors” under 15 USC Section 77b (15) (I) or 17 CFR Section 230.215. The purchasers must also certify, in a manner satisfactory to the City, that they have the financial sophistication, knowledge and experience in financial matters to evaluate the investment in the bonds and the appropriateness of that investment for them, and that they have received all the information required to make an informed judgement about the purchase of the bonds. Bonds that are sold through a private sale may be resold or transferred only to persons or entities that qualify as accredited investors and that provide the certification described in the preceding sentence.
- 4. The City does not guarantee the bonds and is not subject to any liability for their repayment.
- 5. The terms and conditions of the issuance and purchase of an industrial revenue bond issue are to be agreed upon by the applicant and bond purchaser with the concurrence of Prosper Portland (acting on behalf of the City.)
- 6. Where residential rental property is assisted under this Chapter, construction of the project must begin within nine months from the date of bond issuance.
- 7. The applicant must keep Prosper Portland advised of the schedule for document preparation and approval and provide drafts of documents to Prosper Portland upon its request.
- B. The following general conditions prevail regarding the preparation of all bond documents:
- 1. Bond counsel will be designated by Prosper Portland. Procedures for selecting bond counsel established in this Code or procurement administrative rules do not apply to projects initiated pursuant to this Chapter. The applicant must submit their recommendation of bond counsel.
- 2. Bond counsel will advise Prosper Portland of all federal and state procedural requirements as they apply to issuance of the bonds.
- 3. Bond counsel must be an Oregon law firm or other mutually acceptable bond counsel recognized in the Bond Buyers Directory of Municipal Bond Dealers of the United States.
- 4. The trustee chosen by the applicant, and approved by the Commission, must be a bank or trust company doing business in the State of Oregon with trust powers.
- 5. All documents to be approved by Prosper Portland must be in final form and received by Prosper Portland 14 days before the meeting of Prosper Portland’s board at which the documents will be considered.