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TH E CITY OF SOUTH EIJCLIDORDI NANCE NO. : O i -O9I{EQUESTED BY: RomeoII'ITRODUCED BY: lvlalzot-

-J rrrrary I" , 2OO9

4"N ORDINA]\CRTO PROVIDE FOR 'XFIE ISSUANCE AND SALE OF NOTES INANTTCIPA-| ION OF THE ISSUA}{CE OF I3ONDS IN A PRINCIPALAMOUNT NOT TO EXCE,ED $2O,OOO,OOOOR THE PURPOSE OF PAYING-fHE COSTS OF TI- IE ACQUISI I - ION, AND ANY NECESSARYCLEARA}JCE AND PREPARA:|ION, OF REAL PROPERTY FOIT URBANI1EDEVELOPMEN:| " INCLUDiNCi PUBLIC INFRASTRUCTU[{E]MPROVE'N4ENTS TO BE LOCATED TI{EREON, AND PAYTNG COSTS OFI SSUANCE; AND DEC] LARI NG AN EM ERGENCY.WI-IEREAS, pr-rrsuant o Or-clinar-rce o. 86-06, pzissed Janualy 9, 2OO7 the Corlncil of t l-reCity agtlrorized tire isslrance of notes in anticipation of th e issr-ranceof bonils in th e principalarnognt of $l7,0OO,OOO fo r th e purpose hereinafter statecl, which ttotes rarere datecl Janr-rar-y 0,20O-/ and matr-rred on January 29,2OO8, rvhich notes were r-etired with ploceeds of t-rotes n tl-reamount of $18,01O,OOOwhich notes are datecl Janttary 28, 2008 airci rvil l lratl-rre I'anvan:y)1 ,2009 (the "2008 Notes") ; andW1-IEREAS, the Council of the City iras cleterrnined tirat payrnent of the outstandingprincipal of the 2008 lrlotes shell l be flurded at neaturity by tire issr'rance of uew notes in apr-i lcipal alrrollnt no t to exceed $20,000,000 in anticipation of the issuance of boucls for thepr14)ose irereinaft er: stated; airdWHEREAS, the fiscal officer has certified to the estirnated life of the improvernents to becolstructed frorn the proceeds of tire bonds anticipated, the maximulrr rrratlnity of the bondsanticipated and the notes herein authorized;NOW, TI-IEREFORE, EE IT ORDAINED by the Council of the City of Soutir Etrclid,Ohio:Section I : That it is hereby declared ltecessary to issue bonds of th e City of South Euciid

in a principai suirr not to erceed $20,000,000 fo l th e purpose of paying tire costs of th eacqrLisit ion, and ally ltecessary clea::ance an d preparation, of real pro1rerty For lrrbanrecieveiopirrent, including public irefi'astr-ucture irnpr-overtteuts to be locatecl thereon; arrd payingcosts of issuance.Sect ion 2: Thart saic l bonds shal l be clated January 7,2010, shal l bear interest at theestitrratecl ate of six an d fi{ly one-hundredths pelcent (6.50%) per rnr1lu1l,ayable semi-annr-railyuntil th e plincipal slrrn is paicl, an d sl-rall mature in tirirty (30) annual iustalhnents after their

lSS11a l lCe.

Section 3: That it is l-rereby cletermined that notes (heieinarfter refeneci to as the "Notes")in a pi- irrcipal a1'noi,rnt not to exceecl:1;20,000,000 sha1l be issr-red in anticipation of t ire issr-rauce ofbonds fo r th e aborre-clescribed pruposes. The services o1'Caif-ee, I-Izi lter & Gr-iswold LI-P, BondAttorneys, Clleveland, Ohio, zr s Bor-id Counsel for the Notes ale heteby retainecl. The Notes shzrllbe sold at private saie and sl-rall bear interest at th e lates t ixed by the Fit-rance Director or the}'zleryor in th e cert if icate awarcling t ire Notes (the "Cert if icate o{'Award"), provicled that sltchrates sl- iall no t exceed seven pe r centurn (7 -Oo/o) er annrun with respect to the Tax-Exernpt Notes(defined l-rer:eilr) :rnd ten per centlurr (1,Oo/") per anlr lrrrr with respect to th e Taxable Notes (a sdefined herein;, Irrterest on the Notes sliall be payable at rnatr-u-ity, rvit l-r provision, i f recluested bythe pr,rrchaser, that, in the event of clefzrult, the l'Iotes shall bear inter-est, at a rate which shall notexceecl te n per centLln (1oo/o) pe r allr lurrr, i-rnt i i t lre principal su m is paid or: provideci for. TlreJ:Iotes shall be dated their date of issnance, sl-iall rnatr-ii'e or-r a date that is betrveerr thr-ee neonthsal d twelve morrths, incJ.usive, f i-on-r their date of issuance, al i as deterrniitect by th e FinarrceDirector or the Mayor- ancl set forth in the Certificate of Award, irrovicled tl-rat if sucit rnatr-rritydate is not a business day, th e Notes shall rrat.ure on the f irst business day irrrnrediatelS, precedingsr, ich date. The Notes shal1 uot be sr-tbject to leclerrrpt ion by the Cit lz at an y tirne prior to natl lr ity,

l O n - ] , + 5 l l r . D O C ; l j

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unless t1-reOr-igina1 .Purchaser of th e Notes recprests that the l'Jotes pr-ovide for such rederlpt ion,in which case provisiol shall be lracie fb r call ing the Nctes fo r leclernption lrpon te n (10) dayswrit ter- i notice to t ire paying Agent fb r the lrJotes (as de1'rnec1 e1ou,), or to the Original Pur-charserif t1-re i '.ance Director is th e Payir ig Agent. In addit ion the lr lotes sha1l be isstted in the numbei:san d clenorrr inations be recprestecl by t ire Oliginal Pltr1,he signing of any such agreerr-rent.

If alcJ as long as a book-ently systern is ut i l ized, (i ) the Notes shall be issr-ied in t ire fonnof one Note i1 the narne of the Depositor-y or it s nominee, as o\ / lter, and irunobll ized in th ecgstocly of th e Depository; ( i i) th e beneficial owl-lers in book-entry forrn shali have rro r ight toreceive Notes in the fbgrr of physical secr-rr it ies or cerlit lcates; ( i i i) ownership of beneflcialir-rterests iir book-entry forrrr shall be shown by a book entry on the systern rtaintained andoperatecl by the Depository ancl its Paiticipairts (as heleinafler defined), and transfers of theoi.vnership of benefrcial interests shail be neade only by book entry by the Depository and it sFarliciparlts; an d (i1z) t ite Notes as snch shall not be tr-ansfelable or exchangeable, except fortranst-er to alother De1:ositor-y or to ernother nontirtee of a Depositor-y, without ihrlher- action bythe Council of the City.

If ag y Deirository cleterrnines no t to continue to act as a Depository fo r t ire notes fb r r-rsei1 a book-entry systern, th e Fiscal Off icer tnay attempt to have established a securit iesclepositor:y,/book-entry relat ionship with another cFrali l ied Depository. If the Fiscal OtTicer does,-roi .',t is unabie to clo so, the Fiscal Officer, after- makir-rg provision f-or notificatioll of thebeleficial owners by the ther-r Depository and any othel arrangelrlents he deerns llecessary, shallperrrrit u,ithclrawal oItlee reotes fi'orrr the Depository, and authenticate aud deliver note cerlificatesir.rbear-"r- or legisterecl fonl, as i:r: detenrines, to th e assigus of the Depositor:y or its noll inee, al 1at th e cost ancl expellpe (inciuding erny costs of pr: i ir t ing), iI ' the etret lt is not th e resuit of Councilact ion or - naction, of those pcrsons t-equesting slrch issr-rance.

As usecl in this Section aucl this Oldinance:"Bo

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, .part icipant,, means an y par-t icipant contract ing with a Depository unclel a book-entrysysrenr an d inllurcles secr-rr- ity broker-s ancl dealer-s, banks anci trust corrrpanies, an d clearingcorpo la l ions .

Section 5: That th e Notes sirail be solci at private sale lo I{e1u$;1t " Capitai ivlarkets Inc.(the ..odginal pur-cl-raser',) at not iess thzrn the par vzrlr-re l-rer-eof by th e Fiscal off icer- or-theMayor-; tl [ Fiscai OFfioer is hereby authorizecl zLndclir-ectecl to cleiiver th e Notes, when execurecl,to t ire or-igi 'al p'r-chaser ther-eof .Lrpo11llrryrl. ient of th e pr,Lrchase prrice. The ploceeds c, f sr-tch saiesirall be p;ic1 into t1-ieproper f 'urncl nc l usecl {b r th e pr-irpose fb r which th e Notes are being issrteclr_r'cler th l provisiols of this orclinarrce arncl to pa y those costs of issuance set fbrth in Section133.i5(B), Ohio Revised Coc1e. An y prenritr l l ancl arccrurecl ntet-est shall be tr-ansf 'en'ed to th eCity's B.nd Retirement F*ncl to be appliecl to 1.hepet)/ lTlent of 'the principerl of ancl interest on theNotes in th e n')al1ner pr-oviclecl by laLw'

The Ci ty covenants t l " ra t t u , i l l res t r ic t the nse of the proceec ls of the Tax-Exetnpt Notes ius*cl, i r 'an'er ancl to slch extent, iI ' ;ury, as lTray be necessary so that the Tax-Exernpt Notes rvil l.o t cc>r-rst it 'te errbitrage boncls uncler Section 14 8 of th e Internal l levenure Cocle of 1986, al sa'-re'cleci (the..Cocle"i. f t1. Director ol Finarnce, eLs he fisczr1 off 'tcer-, or ai. ly otf ier off icer- of th eCity harrrng respol1sibil i ty fo r t ire issnance of th e Tax-Exer-npt Notes shall give an appropriatecert if ]cErte of th e City, i.oi- inclusion in t l 're tr-anscript of proceeclings fo r the Tax-Exernpt Notes,sett i.g fort ir th e realonable expectat ions of the City regarcling th e amount ancl lrse of al l th epro.eEcls of the Tax-Exernpt lriotes, the fercts, oir

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The flir-rclsetirre )ecenitrer 1, 2009, th e c)ity covenants to deposit inl.o the Bond RetirenrentFrlnil, fi-otr-r avaij.zrble tlrnds appropr-iatecl f,or the pr.irpose' an al11ollnt i'locessary to meet anyshortfall ihat r-'ay exist between tl-reamount tiren availzrble in th e Boncl Retirerrrent Furcl ancl th etunOrtntc i fpr i r rc ipalzrr lc l in terestc l l reat rnat t r r : i t1zl . t l reNcl tes.Secti.r-r l0 : Thzrt it is her:eby cletern-iinecl nc l r-ecitecl ha t all acts, corrdit ions ancl tiringsi1ecessary to be cione pr-ececlent o and in th e issr-ringof th e Notes ir-rorcler to iTiake therrr legal,valicl anci binding ottig^tiorr* of the City, rvil1 have been clone ancl rerforrr-red in regular: an d du efbrrrr as requirecl by la."u,;ancl that no iirnitation of inclebteclness or taxation' either statLltory orconstittrt ional, wil l i 'rave be"n exceedecl in th e issltance of th e Notes'Section 1 I : 'fha1 the Fiscal Officer of the Cit1,, is her-eby clir-ectecl o forwar:d or car-rse obe forr,varcled a cerlilhecl copy of this Or'clir-iarrce o the County Auditor of Cuyahoga County andto secure a receiPt there{'or.Sectio* l2 : Tirat the lvlayor ancl Fiscal Officer, ol eithel of them, ar e hereby authorizedto prepare, execute and cleliver: io tl-re Original Purchaser- of the Notes a prelirninary and finalofficial statement or an y other appropriatJ clisclosrue clocument of th e city in connection s'iththe sale ar-rd elivery of th e Notes'Sectio' .1.3: -fhat it is hereby founcl and cletenrrinecl that al l fonrral actions of this Cor-rncilco'cerning a* d relating to th e passage of this Oldinance were acloptecl n an open rneeting of thisCouncil, and that al l deliberitions of this Council aird airy of its comrrrittees on or afterNovernber 25 " I975, that resulted in sucir fonnal action were in meetings open to the public in

compliairce with all iegal requirements, ir]cluclingSeciion '121-zZ of th e Otrio Revised Code'

Section l4 : That this orcljnance is deemed to be an emefgency lT]easllre necessary fo r th eim'recliate preservation for the putrlic peace, health, and safety ancl for' furr-ther reason that the forthe ftlr.ther reasolr that this orclilance is required to be inrrrrediately effectiwe to provide ftinds tot-etire th e 2oog Notes w.hich ar:e abor-rt d mature an d thereby protect th e credit of th e city'Wherefore, this orclinance shall take effect anrf be in force fiom and after the earliest periodallorved by izrrv ancl upon signature of the \zlayor'Perssedhis day of .Ianttar'1',?009.

Attest:

Keith A. Benjamir-r, Clerk of Cour-rcil

Mo.l-t t i t - to Rot'neo, Presiclent of CorincilAp1:r-ovecl:

r\pprovecl as to for-m:

lv j ichael Lograsso,

{ O O 4 4 5 l 1 3 . D O C : l i

Direc tor o f Law

Geoi'gine Welo, IvI:rYor