Subject: 20263/RefundingBonds/CarterStreetCorpLease
Date: Thu, 16 Sep 1993 12:29:10 -0500


                             RESOLUTION NO.   20263 
                  
                  
                   A RESOLUTION AUTHORIZING THE MAYOR TO
                   PROCEED WITH THE REFUNDING OF CERTAIN
                   OUTSTANDING LEASE RENTAL REVENUE BONDS,
                   SERIES 1986, IN CONNECTION WITH THE CITY'S
                   LEASE WITH THE CARTER STREET CORPORATION TO
                   ACHIEVE LEASE PAYMENT SAVINGS FOR THE CITY.
                  
                  
                                                    
                  
                  
       	    	 WHEREAS, the City of Chattanooga, Tennessee (the "City")
       is a validly existing public corporation of the State of
       Tennessee, existing as such under and by virtue of the
       constitution, statutes and laws of the State of Tennessee; and
       	    	 WHEREAS, the City Council of the City (the "City
       Council") has the power, pursuant to Tennessee Code Annotated, to 

       enter into lease agreements with or without the option to 
purchase
       in order to provide for the governmental use of property for
       public purposes; and
       	    	 WHEREAS, the City and Hamilton County, Tennessee (the
       "County"), as tenants in common, previously entered into a Trade
       Center and Parking Garage Lease Agreement dated as of September 
1,
       1982, with the Carter Street Corporation, a not-for-profit
       corporation created under the laws of the State of Tennessee (the 

       "Corporation"), as supplemented and amended by the First
       Supplemental Trade Center and Parking Garage Lease Agreement 
dated
       October 15, 1986, between the Corporation, the City and the 
County
       (collectively, the "Lease"), and pursuant to an Assignment of
0C
       Lease dated as of September 1, 1982 (the "Assignment"), the
       Corporation assigned to The Industrial Development Board of the
       County of Hamilton, Tennessee (the "Issuer") all of its right,
       title and interest in and to the Lease and the amounts payable
       thereunder; and
       	    	 WHEREAS, the lease payments payable by the City under
       the Lease are an unconditional obligation of the City to pay 
total
       rental amounts sufficient to enable the Issuer to pay, among 
other
       things, the principal of, premium, if any, and interest on the
       Bonds (hereinafter described) and certain operating expenses of
       the Corporation; and
       	    	 WHEREAS, the taxing power of the City is not pledged
       directly or indirectly to secure any moneys due to the
       Corporation; and
       	    	 WHEREAS, the Issuer previously issued its Lease Rental
       Revenue Refunding Bonds (City of Chattanooga and County of
       Hamilton, Tennessee, Lessees), Series 1986 (the "Bonds"), in the
       original principal amount of $16,880,000, of which approximately
       $15,360,000 remain outstanding; and
       	    	 WHEREAS, the City Council has been advised that due to
       current interest rates available in the municipal capital 
markets,
       the Bonds could be refunded and defeased, resulting in an
       estimated present value debt service savings of at least $250,000 

0C
       and a related reduction of lease payments required to be made by
       the City and the County pursuant to the Lease; and
       	    	 WHEREAS, the City Council wishes to authorize the Mayor
       to take whatever action is necessary to cause such refunding, as
       further described herein;
       	    	 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
       THE CITY OF CHATTANOOGA, TENNESSEE, That the Mayor be and is
       hereby authorized and directed to take any actions necessary to
       cause the refunding and defeasance of the Bonds, including,
       without limitation, the preparation of a new form of Lease,
       Assignment or amendments thereto, and the preparation, for use by 

       the Issuer, of a preliminary offering document for use in
       connection with the sale of Lease Rental Revenue Refunding Bonds, 

       Series 1994 (the "1994 Bonds") to refund the outstanding Bonds;
       and
       	    	 BE IT FURTHER RESOLVED, That the City Council hereby
       agrees that if it is determined in the future that the 1994 Bonds 

       cannot or should not be issued to refund the Bonds, the City will 

       pay fifty percent (50%) of the costs incurred in connection with
       preparation for the issuance of such 1994 Bonds, as such costs 
are
       estimated by Alex, Brown & Sons Incorporated, financial advisor 
to
       the Issuer, in Exhibit A attached hereto and incorporated herein
       by reference; and
0C
       	    	 BE IT FURTHER RESOLVED, That the City Council hereby
       authorizes and approves the selection of Long, Aldridge & Norman, 

       Atlanta, Georgia, as Bond Counsel, in connection with the 
issuance
       by the issuer of the 1994 Bonds.
      
       ADOPTED:	 June 14, 1994
      
       RLN:cjc