HomeMy WebLinkAboutRes 2017-04 -Reimbursement Resolution
Battle Creek Project NCREB Bonds
Resolution No. 2017-04
Page 1
ALASKA ENERGY AUTHORITY
RESOLUTION NO. 2017-04
RESOLUTION DECLARING OFFICIAL INTENT REGARDING
CERTAIN CAPITAL EXPENDITURES TO BE REIMBURSED WITH PROCEEDS OF
NEW CLEAN RENEWABLE ENERGY BONDS
BE IT RESOLVED by the Alaska Energy Authority (Authority) as follows:
Section 1. Recitals.
1.01. The Authority intends to apply for an allocation of New Clean Renewable
Energy Bonds (NCREB) to finance, in part, costs of planning, engineering,
procuring, and constructing the Battle Creek Diversion Project (Project) as
an enhancement to the Bradley Lake Hydroelectric Project located on the
Kenai Peninsula near Homer, Alaska.
1.02. The Project includes the construction of a new water diversion from the
West Fork of Upper Battle Creek and a conveyance system to transport
such water to Bradley Lake; the estimated cost of the Project is
$46,600,000.
1.03. The Authority expects that certain expenditures (Reimbursement
Expenditures) will be paid from available funds in connection with the
Project prior to the issuance of indebtedness for the purposes of financing
costs associated with the Project on a long term basis.
1.04. The Authority reasonably expects that the Project is eligible to be financed
with NCREB under Section 54C of the Internal Revenue Code of 1986, as
amended (Code).
1.05. The Authority reasonably expects, subject to receipt of an allocation of
NCREB national bond volume limitation authority (Volume Cap), that it will
issue NCREB in an amount up to $40,000,000 and that certain of the
proceeds of such debt obligation will be used to reimburse the
Reimbursement Expenditures.
1.06. The Authority reasonably expects, subject to receipt of $40,000,000 of
NCREB Volume Cap, that additional debt obligations (in an estimated
amount of $10,250,000) and available funds, will be used to finance
remaining Project costs, including financing costs.
1.07. Section 54(d) of the Code requires the Authority to declare its reasonable
official intent to reimburse prior expenditures for the Project with proceeds
of a subsequent borrowing.