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HomeMy WebLinkAbout19 144 Ontario Infrastructure and Lands Corporation (Highway 9 & 21 Business Park) By-law THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE KBT v • ‘ 1�1 `X „:raut ,i ,447c„),„rrorK\00 , BY-LAW No. 2019 - 144 A BY-LAW TO AUTHORIZE CERTAIN NEW CAPITAL WORK(S) OF THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE (THE "MUNICIPALITY"); TO AUTHORIZE THE SUBMISSION OF AN APPLICATION TO ONTARIO INFRASTRUCTURE AND LANDS CORPORATION ("OILC") FOR FINANCING OF SUCH CAPITAL WORK(S); TO AUTHORIZE TEMPORARY BORROWING FROM OILC TO MEET EXPENDITURES IN CONNECTION WITH SUCH CAPITAL WORK(S); AND TO AUTHORIZE LONG- • TERM BORROWING FOR SUCH CAPITAL WORK(S) THROUGH THE ISSUE OF DEBENTURES TO OILC WHEREAS the Municipal Act, 2001 (Ontario), as amended, (the "Act") provides that a municipal power shall be exercised by by-law unless the municipality is specifically authorized to do otherwise; AND WHEREAS it is now deemed to be expedient to authorize for the purposes of the Municipality the new capital work(s) described in column (2) of Schedule "A" (the "Capital Work(s)") attached hereto and forming part of this By-law ("Schedule "A") in the amount of the respective estimated expenditure set out in column (3) of Schedule "A", subject in each case to approval by OILC of the financing for such Capital Work(s) that will be requested by the Municipality in the Application as hereinafter defined; AND WHEREAS in accordance with section 4 of Ontario Regulation 403/02 (the "Regulation"), the Council of the Municipality had its Treasurer calculate an updated limit in respect of its most recent annual debt and financial obligation limit received from the Ministry of Municipal Affairs (as so updated, the "Updated • Limit"), and, on the basis of the authorized estimated expenditure for the Capital Work or each Capital Work, as the case may be, as set out in column (3) of Schedule "A" (the "Authorized Expenditure" for any such Capital Work), the Treasurer calculated the estimated annual amount payable in respect of the Capital Work or each Capital Work, as the case may be, (collectively the "Estimated Annual Amount Payable") and determined that the Estimated Annual Amount Payable does not cause the Municipality to exceed the Updated Limit, and accordingly the approval of the Local Planning Appeal Tribunal pursuant to the Regulation, is not required before any such Capital Work is authorized by the Council of the Municipality; AND WHEREAS subsection 405(1) of the Act provides, amongst other things, that a municipality may authorize temporary borrowing to meet expenditures made in connection with a work to be financed in whole or in part by the issue of debentures if, the municipality is an upper-tier municipality, a lower-tier municipality in a county or a single-tier municipality and it has approved the issue of debentures for the work; • AND WHEREAS subsection 401(1) of the Act provides that a municipality may incur a debt for municipal purposes, whether by borrowing money or in any other way, and may issue debentures and prescribed financial instruments and enter prescribed financial agreements for or in relation to the debt; Page 2 of 6 Ontario Infrastructure and Lands Corporation (Highway 9 & 21 Business Park) By-law By-law No. 2019 - 144 AND WHEREAS the Act also provides that a municipality shall authorize long- term borrowing by the issue of debentures or through another municipality under • section 403 or 404 of the Act; AND WHEREAS OILC has invited Ontario municipalities desirous of obtaining temporary and long-term debt financing in order to meet capital expenditures incurred on or after the year that is five years prior to the year of an application in connection with eligible capital works to make application to OILC for such financing by completing and submitting an application in the form provided by OILC; AND WHEREAS the Municipality has completed and submitted or is in the process of submitting an application to OILC, as the case may be, (the "Application") to request financing for the Capital Work(s) by way of long-term borrowing through the issue of debentures to OILC and by way of temporary borrowing from OILC pending the issue of such debentures; AND WHEREAS OILC has accepted and has approved or will notify the Municipality only if it accepts and approves the Application, as the case may be; 111 NOW THEREFORE The Council of The Corporation of the Municipality Of Kincardine ENACTS as follows: 1. The Council of the Municipality hereby confirms, ratifies and approves the execution by the Treasurer of the Application and the submission by such authorized official of the Application, duly executed by such authorized official, to OILC for the financing of the Capital Work(s) in the maximum aggregate principal amount of $4,250,000 substantially in the form of Schedule "B" hereto and forming part of this By-law, with such changes thereon as such authorized official may hereafter approve, such execution and delivery to be conclusive evidence of such approval. 2. (a) The undertaking of the Capital Work or of each Capital Work, as the case may be, in the amount of the respective estimated Authorized Expenditure set out in column (3) of Schedule "A" is hereby approved and authorized; (b) any one or more of the Mayor and the Treasurer are hereby authorized to conclude contracts on behalf of the Municipality for the • undertaking of the Capital Work or of each Capital Work, as the case may be, in accordance with the Municipality's usual protocol; (c) where applicable, the Engineer of the Municipality will forthwith make such plans, profiles and specifications and furnish such information as in the opinion of the Engineer are necessary for the undertaking of the Capital Work or of each Capital Work, as the case may be; and (d) where applicable, the undertaking of the Capital Work or of each Capital Work, as the case may be, shall be carried on and executed under the superintendence and according to the direction and orders of such Engineer. 3. The Mayor and the Treasurer are hereby authorized to negotiate and enter into, execute and deliver for and on behalf of the Municipality a financing agreement (a "Financing Agreement") with OILC that provides for temporary and long-term borrowing from OILC under the authority of this 11111 By-law in respect of the Capital Work(s) on such terms and conditions as such authorized officials may approve, such execution and delivery to be conclusive evidence of such approval. Page 3 of 6 Ontario Infrastructure and Lands Corporation (Highway 9 & 21 Business Park) By-law By-law No. 2019 - 144 4. The Mayor and/or the Treasurer are hereby authorized, pending the substantial completion of the Capital Work or of each Capital Work, as the • case may be, or as otherwise agreed with OILC, to make temporary borrowings pursuant to section 405 of the Act in respect of the Capital Work or of each Capital Work, as the case may be, on the terms and conditions provided in the Financing Agreement which Financing Agreement provides that the information contained in the Record, as defined in the Financing Agreement, in respect of such temporary borrowings shall be deemed final, conclusive and binding on the Municipality, and on such other terms and conditions as such authorized officials may agree; and the Treasurer is authorized to sign such certifications as OILC may require in connection with such borrowings in respect of the Capital Work(s); provided that the amount of borrowings allocated to the Capital Work or to each Capital Work, as the case may be, does not exceed the Authorized Expenditure for such Capital Work and does not exceed the related loan amount set out in column (4) of Schedule "A" in respect of such Capital Work. 5. Subject to the terms and conditions of the Financing Agreement and such other terms and conditions as OILC may otherwise require, the Mayor and • the Treasurer are hereby authorized to long-term borrow for the Capital Work(s) and to issue debentures to OILC on the terms and conditions provided in the Financing Agreement and on such other terms and conditions as such authorized officials may agree (the "Debentures"); provided that the principal amount of the Debentures issued in respect of the Capital Work or of each Capital Work, as the case may be, does not exceed the Authorized Expenditure for such Capital Work and does not exceed the related loan amount set out in column (4) of Schedule "A" in respect of such Capital Work. 6. In accordance with the provisions of section 25 of the Ontario Infrastructure and Lands Corporation Act, 2011, as amended from time to time hereafter, the Municipality is hereby authorized to agree in writing with OILC that the Minister of Finance is entitled, without notice to the Municipality, to deduct from money appropriated by the Legislative Assembly of Ontario for payment to the Municipality, amounts not exceeding the amounts that the Municipality fails to pay to OILC on account of any unpaid indebtedness of the Municipality to OILC under any outstanding temporary borrowing and/or • the Debentures, as the case may be (the "Obligations") and to pay such amounts to OILC from the Consolidated Revenue Fund. 7. For the purposes of meeting the Obligations, the Municipality shall provide for raising in each year as part of the general levy, the amounts of principal and interest payable in each year under any outstanding temporary borrowing and/or any Debenture outstanding pursuant to the Financing Agreement, to the extent that the amounts have not been provided for by any other available source including other taxes or fees or charges imposed on persons or property by a by-law of any municipality. 8. (a) The Mayor and the Treasurer are hereby authorized to enter into, execute and deliver the Financing Agreement, and to issue the Debentures, one or more of the Clerk and the Treasurer are hereby authorized to generally do all things and to execute all other documents and papers in the name of the Municipality in order to perform the Obligations of the Municipality under the Financing Agreement, to request and receive any temporary borrowing and to • issue the Debentures, and the Treasurer is authorized to affix the Municipality's municipal seal to any such documents and papers. (b) The money realized in respect of any temporary borrowing for the Capital Work(s) and the Debentures, including any premium, and Page 4 of 6 Ontario Infrastructure and Lands Corporation (Highway 9 & 21 Business Park) By-law By-law No. 2019 - 144 any earnings derived from the investment of that money, after providing for the expenses related to any such temporary borrowing • and to the issue of the Debentures, if any, shall be apportioned and applied to the respective Capital Work and to no other purpose except as permitted by the Act. 9. This By-law takes effect on the day of passing. 10. That this By-law may be cited as the "Ontario Infrastructure and Lands Corporation (Highway 9 & 21 Business Park) By-law". READ a FIRST and SECOND TIME this 4th day of November, 2019. READ a THIRD TIME and FINALLY PASSED this 4th day of November, 2019. • 42,1 • Mayor lerk • • Schedule "A" to By-Law No. 2019 - 144 (New Capital Work(s)) • (1) (2) (3) (4) Capital Work Description of Capital Estimated Loan Amount Number Work Expenditure Extension of water, sanitary $4,700,000 $4,250,000 and stormwater servicing located at the Highway 9/21 Business Park. 1111 Ill • Ontario Schedule B to By-law No. 2019 - 144 Webloans Loan Application PDF FA Number 1436 Application for Kincardine,The Corporation of The Municipality of Projects SIT Construction/Purchase Construction/Purchase ID Project ID Project Name Start End Project Cost OILC Loan Amount 1029 1 Kincardine Business Park 11/01/2019 06/30/2021 $4,700,000.00 4.250.000.00 Servicing 9 21 Details of Project Kincardine Business Park Servicing 9 21 Project Category Municipal Roads Infrastructure J Project Name Construction/Purchase Start Construction/Purchase End Energy Conservation r Project Address 1 Project Address 2 City/Town Province Postal Code Description Extension of water,sanitary and storrnwater servicing at the Kincardine Business Park located at Highway 9 and Highway 21. Comments and/or Special Requesting a Floating Rate Capital Loan.Repayment through future Requests Project Life Span(Years) Project Financial Information Project Cost(A) 34,700000.00 Other Proiect Funding/Financing(B): Description Timing Amount Cash on hand Existing $450,000.00 Other Project Funding/Financing Total(B) $450,000.00 OILC Loan Amount(A-B) 04.20,,200 00 Only include long-term borrowing in this section.If you anticipate that you will require short-term financing during the construction phase of the project,the information will be gathered as part of the Financing Agreement. Required Date Amount Term Type . 5 Serial Long-term Borrowing Total Debt and Re-payments Summary Has there been any new/undisclosed debt acquired since last FIR was r Yes r No submitted? Please describe any re-financing plans for any existing"interest only" debt,if applicable. Non Re-payments of Loans or Debenture In the last 10 years,has the borrower ever failed to make a loan payment or debenture repayment on time to any lender,including the Provincial Government? If yes,please provide details. OILC Loan Repayment Information Please indicate the source(s)of revenue you plan to use to repay the OILC Loan Taxation User Fees Service Charges Development Charges Connection Fees Repayment Subsidies Other Total -. - - Documentation and Acknowledgements Please ensure all required documents are submitted with the signed application.OILC requires originals as noted below to be mailed or couriered.Also,please retain a copy of all documents submitted to OILC for your records. To obtain templates for documents see listed below. • Loan Application Signature Page signed and dated by the appropriate individual(original to be submitted) • Certificate and sealed copy of OILC template By-Law authorizing project borrowing and applying for a loan(original with seal) • Certificate of Treasurer Regarding Litigation using the OILC template(original,signed&sealed) • Updated Certified Annual Repayment Limit Calculation(original) p, I acknowledge and agree that all of the above referenced documents must be submitted in the form required by OILC and understand that the application will not be processed until such documents have been fully completed and received by Infrastructure Ontario. Please note:OILC retains the right to request and review any additional information or documents at its discretion. Confidential Information OILC is an institution to which the Freedom of Information and Protection of Privacy Act(Ontario)applies.Information and supporting documents submitted by the Borrower to process the loan application will be kept secure and confidential,subject to any applicable laws or rules of a court or tribunal having jurisdiction. Infrastructure Ontario:Copyright Cw Queen's Printer for Ontario,2019