Bond Sale - America's River PCITY OF DUBUQUE, IOWA
MEMORANDUM
April 12, 2001
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Bond Sale to Support America's River Project Components
At the State of Iowa Vision Iowa Board Meeting on April 11th, the Board voted to award
the Amedca's River project $40 million in a state grant. This was in response to an
application made to the Vision Iowa Board by the America's River partnership for $58
million in funding. The Vision Iowa Board made their $40 million grant contingent on the
entire project being built and the City issuing $12,360,000 in debt: The City partnership
developed the attached funding PaCkage which includes a City General Obligation debt
issuance not to exceed $12.5 million. The debt would be paid with a combination of tax
increment financing and gaming revenues. There would be no property tax increase.
Administrative Services Manager Pauline Joyce is recommending that a public hearing
be set for May 7, 2001.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, 0orporation Counsel
Pauline Joyce, Administrative Services Manager
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 16, 2001
TO: Michael C. Van Milligen, City Manager
FROM: Pauline Joyce, Administrative Services Manager
SUBJECT: Bond Sale to Support America's River Project Components
The purpose of this memorandum is to recommend the sale of General Obligation
Bonds to support construction of the street grade parking under the Mississippi
River National Education and Conference Center, site development, a sheet pile wall
for docking visiting boats, paving of the riverwalk, development of Ice Harbor Park,
775 stall parking lots, art elements, and the shot tower exterior rehab and
protective wall in the amount not to exceed $12,500,000.
The Vision Iowa Board has awarded the America's River project $40 million in grant
funds contingent upon the City of Dubuque issuing $12,360,000 in General
Obligation bonds to support the project.
The $12,500,000 for the America's River project can be sold as essential corporate
purpose General Obligation Bonds since the improvements are within an Urban
Renewal Area and parking system and other site improvements are stated as a
purpose in the City's TIF Plan for the area. The issue will be subject to a reverse
referendum and at any time before the date of the hearing, a petition may be filed
with the Clerk requesting that the issuance of the Bonds be submitted to an
election. To qualify, a petition must be signed by eligible electors equal to at least
ten percent of the number who voted at the last regular municipal election. The
time line for publication of hearing notice is not less than ten clear days before the
public hearing.
Although we are selling General Obligation Bonds to support the project, repayment
of the debt will be from a combination of funding sources including gaming
revenues and Ice Harbor TIF district revenues. Property taxes will not be increased
to finance debt on the proposed bond issue. We are using General Obligation
Bonds rather than Tax Increment Financing (TIF) Revenue Bonds in order to realize
the following savings: reduced underwriter discount, reduced interest rate, no
required debt reserve fund and no TIF coverage requirement. The publication
requirements for this issue is not less than ten clear days before the date of said
public meeting on the issuance of said Bonds.
The requested action steps for City Council is to adopt the attached resolution
fixing the date for May 7 for a public hearing on the proposition of selling not to
exceed $12,500,000 in General Obligation Bonds (for an essential corporate
purpose) of Dubuque, Iowa and providing for publication of notice thereof.
Attachments
cc: Barry Lindahl
Ken TeKippe
Jeanne Schneider
SUMMARY OF CHANGES MADE TO THE AMERICA'S RIVER PROJECT
VISION IOWA REQUEST
As part of the negotiation process, the City of Dubuque was asked to review its ability to issue
new debt. After considerable discussion and analysis by City leaders and financial advisors, the
City determined that it could issue $12,135,000 in General Obligation bonds with debt service
payable from Tax Increment Financing (TIF) revenues and City gaming revenues (there would
be no property tax increase).
This reduced the $58,031,004 Vision Iowa application to $45,896,004.
The Vision Iowa application included $396,000 to capitalize the Education and Conference
Center operations. In the recently adopted City budget, the City Council included this mount as
a City expense, and therefore we were able to reduce our request by this amount.
At a meeting of the Dubuque Metropolitan Area Transit Study Board held March 21, the
DMATS board approved $3,126,000 for Ice Harbor transportation expenditures and also
approved $874,000 for other projects which the City was prepared to pay with its own funds,
thereby freeing up those funds to provide a total of $4 million additional local match to
America's River.
These two Rems reduce the $45,896,004 Vision Iowa request to $41,500,004.
The Mississippi River Education and Conference Center budget was developed with a 10%
construction contingency. The City agreed to reduce this contingency to 5%, which amounted to
a savings of $1,500,004.
This reduces the $41,500,004 Vision Iowa request to $40,000,000.
With the changes noted above, the City of Dubuque is committing $47,538,366 in matching
funds to the project. This does not include the $8 million the citizens of Dubuque have
voluntarily contributed. The partners in the America's River Project are dedicated to making this
project happen for the benefit o£Iowa and the final funding package is a strong representation of
that commitment.
USE OF BOND PROCEEDS
CONFERENCE AND EDUCATION CENTER
Street Grade Parking
Site Development
Terrace and Plaza
Parking Walks
Landscaping/Site Impr.
Site Utilities
Professional Fees 8.81%
Project Contingency 3.50%
SUBTOTAL
6,375,000
416,000
379,400
50,000
200,000
653,636
259,714
8,333,750
Sheet Pile Wall for Visiting Boat Docks
719,250
Riverwalk
Colored Concrete Sidewalks/Facade
Single and Double Pedestal Lights
Ice Harbor Park
Shot Tower Exterior Rehab
Shot Tower Protective Wall
Art Elements
Parking lot at Bell and 6th (375 stalls)
Parking Lot S & W of Hotel (400 stalls)
1,356,800
211,000
67,200
100,000
100,000
300,000
450,000
497,000
SUBTOTAL 12,135,000
Issuance Expense
225,000
TOTAL 12,360,000
(T~is Notice to be posted)
NOTICE AND CALL OF PUBLIC MEEI~ING
Governmental Body:
Date of Meeting:
Time of Meeting:
Place of Meeting:
The City Council of Dubuque, Iowa.
,2001.
o'clock .M.
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
Not to exceed $12,500,000 General Obligation Bonds.
· Resolution fixing date for a meeting on the proposition to issue.
Such additional matters as are set forth on the additional page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City Clerk, Dubuque, Iowa
,2001
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Smut Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
chair, and the following named Council Members:
session, in the
o'clock .M.,
, in the
Absent:
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Council Member Markham introduced the following Resolution
entitled '~RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION
OF THE ISSUANCE OF NOT TO EXCEED $12,500,000 GENERAL OBLIGATION
BONDS (FOR ESSENTIAL CORPORATE PURPOSES) OF DUBUQUE, IOWA,
AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that
the same be adopted. Council Member Ni cho] son seconded the motion
to adopt. The roll was called and the vote was,
AYES: Robbins, Buol, Cline, Duggan, Markham,
Michalski, Nicholson
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 163-01
RESOLUTION FIXING DATE FOR A MEETING ON THE
PROPOSITION OF THE ISSUANCE OF NOT TO
EXCEED $12,500,000 GENERAL OBLIGATION BONDS
(FOR ESSENTIAL CORPORATE PURPOSES) OF
DUBUQUE, IOWA, AdND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa,
should issue General Obligation Bonds to the amount of not to exceed $12,500,000, as
authorized by Section 384.25, of the City Code of Iowa, for the purpose of providing
funds to pay costs of carrying out essential corporate purpose projects as hereinafter
described; and
WHEREAS, before said bonds may be issued, it is necessary to comply with the
provisions of said Code, and to publish a notice of the proposal to issue such bonds and
of the time and place of the meeting at which the Council proposes to take action for the
issuance of the bonds and to receive oral and/or written objections from any resident or
property owner of said City to such action and the right to petition for an election.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY'OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Auditorium, Ca~megie-Stout Public
Library, Dubuque, Iowa, at 6:30 o'clock_~.M., on the 7th day of
~ 2001, for the purpose of taking action on the matter of the
issuance of not to exceed $12,500,000 General Obligation Bonds for essential corporate
purposes of said City, the proceeds of which bonds will be used to provide funds to pay
costs of the aiding in the planning, undertaking and carrying out of urban renewal project
activities under the authority of Chapter 403 of the Code of Iowa and the Amended and
Restated Urban Renewal Plan for the Ice Harbor Urban Renewal District, including those
costs associated with the acquisition and construction of parking improvements and site
development for the Mississippi River National Education and Conference Center, and
the construction, development, improvement and beautification of the banks and other
areas adjacent to flood control improvements in said District, including construction of
riverwalk, streetscape and lighting improvements, rehabilitation and conservation of
historic structures, and construction of boat docking, harbor, parking and related public
infrastructure improvements in support of the America's River project.
Section 2. That the Clerk is hereby directed to cause at least one publication to be
made ora notice of said meeting, in a legal newspaper, printed wholly in the English
language, published at least once weekly, and having general circulation in said City,
said publication to be not less than ten clear days before the date of said public meeting
on the issuance of said bonds.
Section 3. The notice of the proposed action to issue said bonds shall be in
substantially the following form:
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NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $12,500,000 GENERAL
OBLIGATION BONDS (FOR ESSENTIAL CORPORATE PURPOSES)
OF SAID CITY, AND THE HEARING ON ~ ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 7~:h dayof Apes] ,2001, at
6:30 o'clock D.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque,
Iowa, at which meet'mg the Council proposes to take additional action for the issuance of
not to exceed $12,500,000 General Obligation Bonds for essential corporate purposes of
said City, in order to provide funds to pay costs of the aiding in the planning, undertaking
and carrying out of urban renewal project activities under the authority of Chapter 403 of
the Code of Iowa and the Amended and Restated Urban Renewal Plan for the Ice Harbor
Urban Renewal District, including those costs associated with the acquisition and
construction of parking improvements and site development for the Mississippi River
National Education and Conference Center, and the construction, development,
improvement and beautification of the banks and other areas adjacent to flood control
improvements in said District, including construction ofriverwalk, streetscape and
lighting improvements, rehabilitation and conservation of historic structures, and
construction of boat docking, harbor, parking and related public infrastructure
improvements in support of the America's River project.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of said City, to the above action. After all objections have
been received and considered, the Council will at this meeting or at any adjournment
thereof, take additional action for the issuance of said bonds or will abandon the proposal
to issue said bonds.
At any tune before the date of said meeting, a petition, asking that the question of
issuing such bonds be submitted to the legal voters of said City, may be filed with the
Clerk of said City in the manner provided by Section 362.4 of the City Code of Iowa,
pursuant to the provisions of Section 384.26 of the City Code of Iowa.
This notice is given by order of the Council of Dubuque, Iowa, as provided by
Section 384.25 of the City Code of Iowa.
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Datedthis 16th day of April ,2001.
Jeanne F. Schneider,
City Clerk of Dubuque, Iowa
(End of Notice)
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2001.
PASSED AND APPROVED this 16th day of April, 2001
Terrance M. Duggan, Mayor
ATTEST:
Jeanne F. Schneider, City Clerk
CIG-3
9/91
CERT~ICATE
STATE OF IOWA
COUNTY OF DUBUQUE
)
)SS
)
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a tree and complete copy of the
action taken by said Council with respect to said matter at the meet'rog held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bullet'm board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of said agenda
being attached hereto) pursuant to the local rules of the Council and the provisions of
Chapter 21, Code of Iowa, upon reasonable advance notice to the public and media at
least twenty-four hours prior to the commencement of the meeting as required by said
law and with members of the public present in attendance; I further certify that the
individuals named therein were on the date thereof duly and lawfully possessed of their
respective city offices as indicated therein, that no Council vacancy existed'except as
may be stated in said proceedings, and that no controversy or litigation is pending,
prayed or threatened involving the incorporation, organization, existence or boundaries
of the City or the right of the individuals named therein as officers to their respective
positions.
WITNESS my hand and the seal of said Municipality hereto affixed this
17th day of April, ,2001.
Jeanne F. Schneider,
City Clerk, Dubuque, Iowa
SEAL
DCO1CNELLX272405\I \10422000
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