Approving the Sale of 2016 Tax Claims

ORDINANCE 2017-8

An Ordinance Approving the Sale of 2016 Tax Claims

WHEREAS, the City of Hazleton (the “City”) currently is owed outstanding taxes that are secured by real estate tax claims for the fiscal year ending December 31, 2016 and prior years (the “2016 Tax Claims”); and

WHEREAS, the Redevelopment Authority of Luzerne County (the “RALC”) and the Northwest Pennsylvania Incubator Association (“NPIA”) have a program in place to currently purchase the 2016 Tax Claims in exchange for an estimated amount not to exceed that fiscal year’s real estate tax settlement amount; and

WHEREAS, a Purchase and Sales Agreement (the “Agreement”), which will include therein a mandatory repurchase obligation by the City, together with any other documents or instruments necessary to complete the transaction, will be entered into by the City and RALC or NPIA for the purchase, sale, and assignment of the 2016 Tax Claims.

NOW, THEREFORE, BE IT HEREBY ORDAINED AND ENACTED by the Council of the City of Hazleton that the following Ordinance is adopted:

1.    The City agrees, on or after January 1, 2017, to sell its 2016 Tax Claims in exchange for an estimated amount not to exceed that fiscal year’s real estate tax settlement amount to RALC or NPIA pursuant to the Agreement, which ncludes therein a mandatory repurchase obligation by the City under certain circumstances, and other supporting documents and amendments that shall be in a form approved by City Council; and

2.    The City be and is hereby authorized to sell the 2016 Tax Claims to RALC or NPIA on such terms and conditions as approved by City Council; and

3.    Upon sale, the City will assign such sold tax claims to RALC or NPIA, and RALC or NPIA will in turn assign these tax claims to its lender; and

4.    The City shall exclusively utilize the firm of Municipal Revenue Services, Inc. (“MRS”) to facilitate the structure, closing, and implementation of the sale of the 2016 Tax Claims as contemplated by the 2005 Sales Agreement and all Addendums, and further that the City shall defer to MRS in the selection of the purchaser of said tax claims; and

5.    City Council is authorized and directed to take any and all actions necessary that are required to complete the transactions, including but not limited to the     execution of all documents.

SECTION 1:  If any section, clause, provision or portion of this Ordinance shall be held invalid or unconstitutional by a Court of Competent jurisdiction, such decision shall not affect any other section, clause, provision or portion of this Ordinance so long as it remains legally enforceable, minus the invalid portion. The City reserves the right to amend this Ordinance or any portion thereof from time to time as it shall deem advisable in the best interest of the promotion of the purposes and intent of this Ordinance and the effective administration thereof.

SECTION 2:  All ordinances inconsistent with the above provisions are repealed to the extent of their inconsistency.

SECTION 3:  This Ordinance shall become effective following its enactment subject to approval by the Mayor and pursuant to Section 3012 of the Home Rule and Optional Plan Government Law.

SECTION 4:  This Ordinance is enacted by the Council of the City of Hazleton under the authority of the Pennsylvania Third Class City Code, Home Rule and Optional Plan Government Law, as adopted, any applicable City ordinance, and any other applicable law arising under the laws of the Commonwealth of Pennsylvania.

ORDAINED AND ENACTED by Council this 7th day of April, 2017.