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Additional Proceedings_General Obligation UR Bonds $5.575MMasterpiece on the Mississippi Dubuque bierd All-America City 1 2007 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds for Greater Downtown and Dubuque Industrial Center Improvements DATE: April 30, 2012 Budget Director Jennifer Larson is recommending City Council approval of the suggested proceedings for the public hearing on the issuance of General Obligation Urban Renewal Bonds prepared by Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds." The proceeds of the bonds will be used to fund urban renewal project activities under the authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans of the Greater Downtown and Dubuque Industrial Center Urban Renewal Areas, including those costs associated with the expansion of Dubuque Industrial Center West to farmland known as South Siegert Farm and costs associated with Washington Neighborhood Subarea Building Incentive & Rehabilitation Program . Although the City is selling General Obligation Bonds to support the projects, repayments of the debt will be from tax increment revenues of the Greater Downtown and Dubuque Industrial Center Urban Renewal Areas. The borrowing is subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the bond proposal be submitted to an election. The proceedings have been prepared on the basis that no objections or petitions calling for an election on the bond proposal will be filed with the City Clerk. In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceeding should not be adopted. In this event, a motion needs to be adopted to the effect that such bond proposal is abandoned. Section 384.25 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action to issue the bonds, to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jenny Larson, Budget Director Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director Dubuque bierd All-America City 1 2007 SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds for Greater Downtown and Dubuque Industrial Center Improvements DATE: April 30, 2012 INTRODUCTION The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of General Obligation Urban Renewal Bonds prepared by our Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds." The proceeds of the bonds will be used to fund urban renewal project activities under the authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans of the Greater Downtown and Dubuque Industrial Center Urban Renewal Areas. A letter from attorney Mark Cory detailing information on the bond hearing is enclosed. DISCUSSION Of the bond amount: • $4,300,000 is intended to provide funds to pay costs associated with the expansion of Dubuque Industrial Center West to farmland known as South Siegert Farm. The project includes temporary and permanent erosion control measures; grading; deconstruction and demolition of existing structures; storm sewer and sanitary sewer. • $750,000 is intended to provide funds to pay costs associated with Washington Neighborhood Subarea (Includes Bluff/VVest Locust) Building Incentive & Rehabilitation Program. This program provides low- interest loans and grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District Washington Neighborhood Subarea. Tax increment proceeds and loan repayments are utilized to capitalize the pool of funds for these loans. The program will also provide grants of up to $10,000 for each new housing unit created in this district. The pool of funds would be made available to complete financing packages for the immediate creation of market -rate downtown rental and owner - occupied residential units within the Greater Downtown Urban Renewal District Washington Neighborhood Subarea. Market -rate residential units include rental units which are not income restricted or rental units that are restricted to 80% of median income and less for no more than five years (units must not be restricted to 60% of median income or less, or any other restriction under 80 %) and owner occupied units. • $95,000 is intended to provide funds for bond issuance costs and • $430,000 is intended to be a contingency for fluctuations in the bond market for interest rates, bond issuance costs and change in project costs. Although the City is selling General Obligation Bonds to support the projects, repayments of the debt will be from tax increment revenues of the Greater Downtown and Dubuque Industrial Center Urban Renewal Areas. The borrowing is subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the bond proposal 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 (but not less than ten persons). The proceedings have been prepared on the basis that no objections or petitions calling for an election on the bond proposal will be filed with the City Clerk. If there are objections, we will need to summarize them. The Mayor will then declare the hearing on the issuance of said bonds closed. Immediately following, and assuming no petitions have been filed, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds." In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceeding should not be adopted. In this event, a motion needs to be adopted to the effect that such bond proposal is abandoned. Section 384.25 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action to issue the bonds, to the District Court of a county in which any part of the City is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. RECOMMENDATION I respectfully recommend the adoption of the enclosed resolution instituting the proceedings to take additional action. JML Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth TeKippe, Finance Director \‘% _ [11.7,;, p /7 v%r7� (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of the City of Dubuque, Iowa. Date of Meeting: May 7, 2012. Time of Meeting: 6:30 o'clock P.M. Place of Meeting: Historic Federal Building, 350 West 6th Street, 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 the meeting is as follows: Not to exceed $5,575,000 General Obligation Bonds • Public hearing on the issuance. • Resolution instituting proceedings to take additional action. Such additional matters as are set forth on the additional 4 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 the governmental body. City Clerk, . ity of Dubuque, owa May 7, 2012 The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date. There were present Mayor Roy D. Buol in the chair, and the following named Council Members: Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch David Resnick, Lynn Sutton Absent: 1 The Mayor announced that this was the time and place for the public hearing and meeting on the matter of the issuance of not to exceed $5,575,000 General Obligation Bonds, in order to provide funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans for the Dubuque Industrial Center West Economic Development District and the Greater Downtown Urban Renewal District, including those costs associated with grading, road construction, bridge, utilities extensions and development of a recreation area on the South Siegert Farm area of DICW and the funding of development incentives in the Washington Neighborhood Subarea of the Greater Downtown Urban Renewal District, essential corporate purposes, and that notice of the proposed action by the Council to institute proceedings for the issuance of the Bonds, had been published pursuant to the provisions of Sections 384.24(q)(3) and 403.12 of the Code of Iowa, and the Clerk reported that no such petition had been filed, requesting that the question of issuing the Bonds be submitted to the qualified electors of the City. The Mayor then asked the Clerk whether any written objections had been filed by any City resident or property owner to the issuance of the Bonds. The Clerk advised the Mayor and the Council that no written objections had been filed. The Mayor then called for oral objections to the issuance of the Bonds and none were made. Whereupon, the Mayor declared the time for receiving oral and written objections to be closed. (Attach here a summary of objections received or made, if any) 2 The Council then considered the proposed action and the extent of objections thereto. Whereupon, Council Member Connors introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS ", and moved: that the Resolution be adopted. ❑ to ADJOURN and defer action on the Resolution and the proposal to institute proceedings for the issuance of Bonds to the meeting to be held at o'clock .M., on the day of , 2012, at this place. Council Member Braig seconded the motion. The roll was called and the vote was, AYES: Resnick, Sutton, Braig, Buol, Connors, Jones, Lynch NAYS: Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 123 -12 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS WHEREAS, pursuant to notice published as required by law, this Council has held a public meeting and hearing upon the proposal to institute proceedings for the issuance of not to exceed $5,575,000 General Obligation Bonds, for the essential corporate purposes of paying costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans for the Dubuque Industrial Center West Economic Development District and the Greater Downtown Urban Renewal District, including those costs associated with grading, road construction, bridge, utilities extensions and -3- development of a recreation area on the South Siegert Farm area of DICW and the funding of development incentives in the Washington Neighborhood Subarea of the Greater Downtown Urban Renewal District, and has considered the extent of objections received from residents or property owners as to the proposed issuance of Bonds, and no petition was filed calling for a referendum thereon; and, accordingly the following action is now considered to be in the best interests of the City and residents thereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That this Council does hereby institute proceedings and take additional action for the sale and issuance in the manner required by law of not to exceed $5,575,000 General Obligation Bonds for the foregoing essential corporate purposes. PASSED AND APPROVED this 7th day of May ATTEST: , 2012. 4 STATE OF IOWA COUNTY OF DUBUQUE CERTIFICATE ) SS I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the matter at the meeting 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 bulletin 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 the 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 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 the 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 the City hereto affixed this 8th day of May 2012. (SEAL) 00859349 -1 \10422 -134 City Cler , City of Dubuque, State of Iowa AHLERS R. Mark Cory rcory@ahlerslaw.com Mr. Kevin Firnstahl City Clerk City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 -4864 COONEY, P.C. 100 COURT AVENUE, SUITE 600 DES MOINES, IOWA 50309 -2231 PHONE 515 -243 -7611 FAX: 515-243-2149 WWW.AHLERSLAW.COM April 25, 2012 RE: FY13 General Obligation Bond Proposals Dear Mr. Firnstahl: Direct Dial: (515)246 -0378 With this letter I am enclosing suggested proceedings to be acted upon by the City Council on the date fixed for the hearings on the proposed issuance of General Obligation Bonds to accomplish the financing of projects included within the capital improvements program budget for the FY2013. It is my understanding that the hearings on the general obligation bond proposals have been scheduled for the Council's meeting on May 7, 2012. Two (2) of the hearings relate to proposals to issue general obligation bonds for "essential corporate purpose" projects, while three (3) other hearings relate to "general corporate purpose" projects. As you know, however, one of the "essential corporate purpose" proposals involves urban renewal activities and therefore is subject to the same "reverse referendum" procedures applicable to the "general corporate purpose" projects. For the sake of clarity, I will distinguish between each of these proposals and describe the related proceedings according to the procedures involved: WISHARD & BAILY- 1888; GUERNSEY & BAILY - 1893: BAILY & STIPP - 1901: STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS & COONEY - 1950: AHLERS. COONEY, DORWEILER, ALLBEE. HAYNIE & SMITH - 1974: AHLERS, COONEY. DORWEILER, HAYNIE. SMITH & ALLBEE, P.C. - 1990 April 25, 2012 Page 2 Not to exceed $8,650,000 General Obligation Bonds (Misc. Essential Corporate Purpose Projects) The proceedings are prepared to show as a first step the receipt of any oral or written objections from any resident or property owner to the proposed action of the Council to issue the bonds. A summary of objections received or made, if any, should be attached to the proceedings. After all objections have been received and considered if the Council decides not to abandon the proposal to issue the bonds, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action." The Council is required by statute to adopt the resolution instituting proceedings to issue the bonds at the hearing -- or an adjournment thereof. If necessary to adjourn, the minutes are written to accommodate that action. In the event the Council decides to abandon the proposal to issue said bonds, then the form of resolution included in said proceedings should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that such bond proposal is abandoned. Section 284.25 of the Code of Iowa, provides that any resident or property owner of the City may appeal the decision to take additional action to issue the bonds, to the District Court of a county in which any part of the city is located, within 15 days after such additional action is taken, but that the additional action is final and conclusive unless the court finds that the Council exceeded its authority. In the event an appeal is filed by any resident or property owner, please see that we are notified immediately; and, as soon as available, a copy of the notice of appeal should be furnished our office for review. April 25, 2012 Page 3 Not to exceed $5,575,000 General Obligation Bonds - (Urban Renewal Projects) Not to exceed $700,000 General Obligation Bonds (General Corporate Purposes) Not to exceed $475,000 General Obligation Bonds (General Corporate Purposes) Not to exceed $600,000 General Obligation Bonds (General Corporate Purposes) The above proposals are subject to the "reverse referendum" procedures, under which petitions may be filed prior to the hearing asking that the particular bond proposal be submitted to an election. In each case, the proceedings assume that no petition has been received calling for an election on the proposed action of the Council to issue bonds for the purposes described. At the hearing, the Council should receive any oral or written objections to the proposal under consideration. If no petition has been filed with respect to the proposal, and the Council decides not to abandon the proposal to issue bonds for the purposes described, the Council then should proceed to institute proceedings to take additional action for the issuance of the bonds under consideration. In the event the Council decides to abandon the proposal to issue certain of the bonds, then the applicable resolution should not be adopted. We would suggest that, in this event, a motion merely be adopted to the effect that the bond proposal is abandoned. If a petition has been received with respect to a particular proposal and if the Council decides not to abandon the proposal to issue said bonds for that purpose, a form of resolution should be introduced and adopted to adjourn the matter to permit preparation of the resolution to call an election. Please see that we are advised immediately if a petition is filed bearing signatures of a sufficient number of eligible electors. April 25, 2012 Page 4 An extra copy of the proceedings is enclosed to be completed as the original and returned to us for our transcript of the action taken. If you have any questions pertaining to the proceedings enclosed or this letter, please do not hesitate to either write or call. RMC:dc encl. cc: Jenny Larson (w /encl.) Tionna Pooler (w /encl.) Ken TeKippe (w /encl.) 00859352 -1 \10422 -134 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS (FOR ESSENTIAL CORPORATE° PURPOSES) OF THE CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City of Dubuque, Iowa, will hold a public hearing on the 7th day of May, 2012, at 6:30 o'clock P.M., in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $5,575,000 General Obligation Bonds for essential corporate purposes of said City, in order to provide funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans for the Dubuque Industrial Center West Economic Development District and the Greater Downtown Urban Renewal District, including those costs associated with grading, -road con- struction, bridge, utilities extensions and development of a recreation area on the South Siegert Farm area of DICW and the funding of develop- ment incentives in the Washington Neighbor- hood Subarea of the Greater Downtown', Urban Renewal District. At any time before the date of the meeting, a petition, asking that the question of issuing such Bonds be submitted to the legal voters of the City, may be filed with the City Clerk of the City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.24(3)(q) of the Code of Iowa. This notice is given by order of the City Council of the City of Dubuque, Iowa, as provided by Section 384.24(3)(q) and 403.12 of the City Code of Iowa. Any visual or hearing impaired persons need- ing special assistance or persons with special accessibility needs should contact the City Clerk's Office at (563) 589 -4120 or TTY (563) 690 -6678 at least 48 hours prior to the meeting. Dated this 20th day of April, 2012. Kevin 5. Firnstahl City Clerk, City of Dubuque, Iowa 1t 4/20 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, a Billing Clerk for Woodward Communications, Inc., an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general circulation published in the City of Dubuque, County of Dubuque and State of Iowa; hereby certify that the attached notice was published in said newspaper on the following dates: April 20, 2012, and for which the charge is $29.26. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this ( day of /2.'7 , 20 _z„,2. Notary Public in and for Dubuque County, Iowa.