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Sewer Revenue Capital Loan Notes_WPC Plant RenovationTHE CITY OF Dubuque DAB E Masterpiece on the Mississippi 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 $3,500,000 Sewer Revenue Capital Loan Notes DATE: February 10, 2009 Finance Director Ken TeKippe recommends City Council approval of the suggested proceedings for the public hearing required on the issuance of not to exceed $3,500,000 Sewer Revenue Capital Loan Notes (interim financing) from the Iowa Water Pollution Control Works Financing Program. The hearing called by the enclosed proceedings will permit the City to take advantage of the 0% interest interim loan program, which may be rolled into the future long-term State Revolving Fund loan. The loan funds will be used for engineering and design work for the Water Pollution Control Plant improvements. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Kenneth J. TeKippe, Finance Director THE CITY OF ~' Dubuque DuB ~ l~-Amerlcacny J.J Masterpiece on the Mississippi 2007 TO: Michael C. Van Milligen, City Manager FROM: Kenneth J TeKippe, Finance Director `~ -,v ~-~~~~P SUBJECT: Proceedings for Public Hearing on the Issuance of not to exceed $3,500,000 Sewer Revenue Capital Loan Notes DATE: February 3, 2009 The purpose of this memorandum is to provide the suggested proceedings for the public hearing on the issuance of not to exceed $3,500,000 Sewer Revenue Capital Loan Notes (interim financing) from the Iowa Water Pollution Control Works Financing Program. The hearing called by the enclosed proceedings will permit the City to take advantage of the 0% interest interim loan program, which may be rolled into the future long-term SRF loan. The loan funds will be used for engineering and design work for the Water Pollution Control Plant improvements. The proceedings have been prepared on the basis that no objections 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 Notes to be closed. Immediately following, a resolution is to be introduced and adopted entitled "Resolution Instituting Proceedings to Take Additional Action for the Authorization of a Loan and Disbursement Agreement and the Issuance of $3,500,000 Sewer Revenue Capital Loan Notes." Section 384.83 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 loan, 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 the Council decides to abandon the proposal to issue said loans, then the form of resolution included in said proceedings should not be adopted. In this event, a motion needs to be adopted to the effect that such loan proposal is abandoned. The action step for City Council is to hold the public hearing and approve the resolution. A letter from attorney William Noth detailing information on the bond hearing is enclosed. KJT/jmg Enclosures cc: Barry Lindahl, City Attorney Jenny Larson, Budget Director Jeanne Schneider, City Clerk AHL,~RS -COON~Y, P.C. ATTORNEYS AT LAW 100 COURT AVENUE • SUITE 600 DES MOINES, IOWA 50309-2231 PHONE 515-243-7611 FAX: 515-243-2149 WWW.AHLERSLAW.COM WILLIAM J. NOTH WNOTH@AHLERSLAW.COM January 29, 2009 Mr. Ken TeKippe Finance Officer City of Dubuque 50 West 13th Street Dubuque, Iowa 52001-4864 RE: Not to exceed $3,500,000 Sewer Revenue Capital Loan Notes (Interim financing) (State of Iowa Revolving Fund Loan) Dear Mr. TeKippe: Direct Dial: (515)246-0332 With this letter I am enclosing suggested public hearing proceedings relating to the authorization of the above Notes. These 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 authorize the form of Loan and Disbursement Agreement and issue the Notes to the Iowa Finance Authority (the "Authority"). 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 to enter into the Loan and Disbursement Agreement and issue the Notes, a form of resolution follows that should be introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional Action." Section 384.83 of the Code of Iowa provides that any resident or property owner of the City may appeal the decision to take additional action 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. WISHARD &BAILY - 1 BBB; GUERNSEY &BAILY - 1893; BAILY & STIPP - 1901; STIPP, PERRY. BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER, AHLERS 8 GOONEY - 1950; AHLERS, GOONEY, DORWEILER. ALLBEE. HAYNIE & SMITH - 1974; AHLERS, GOONEY, DORWEILER. HAYNIE, SMITH 8~ ALLBEE, P.C. - 1990 January 29, 2009 Page 2 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. In the event the Council decides to abandon the proposal 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 proposal is abandoned. Extra copies of the proceedings are enclosed to be completed as the original and certified back to our office. Please let me know once the final loan amount is determined so I can prepare the authorizing resolution~and other closing documents. If you would like to discuss that issue, please let me know. Yours very truly, William J. Noth WJN:dc encl. cc: Jenny Larson (w/encl.) DCORNELL\604186.11W P\ 10422.088 (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Dubuque, Iowa. Date of Meeting: February 16, 2009 Time of Meeting: 6:30 o'clock P.M. Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque, 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 $3,500,000 Sewer Revenue Capital Loan Notes Public hearing on the authorization of a Loan and Disbursement Agreement and the issuance of Notes to evidence the obligation of the City thereunder. Resolution instituting proceedings to take additional action. Such additional matters as are set forth on the additional 12 page(s) attached hereto. 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 February 17, 2009 The City Council 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 City Council Members: Present: Braig, Connors, Jones, Lynch, Resnick, Voetberg Absent: None -2- The Mayor announced that this was the time and place for the public hearing and meeting on the matter of the authorization of a Loan and Disbursement Agreement by and between the City and the Iowa Finance Authority, and the issuance to the Iowa Finance Authority of not to exceed $3,500,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the City under said Loan and Disbursement Agreement, in order to provide funds to pay costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with design engineering and construction for upgrades to the Water Pollution Control Plant and implementation of the results of the Water Pollution Control Plant Study, and that notice of the proposed action by the City Council to institute proceedings for the authorization of the Loan and Disbursement Agreement and the issuance of the Notes had been published pursuant to the provisions of Sections 384.24A and 384.83 of the Code of Iowa, as amended. The Mayor then asked the Council whether any written objections had been filed by any City resident or property owner to the proposal. The Clerk advised the Mayor and the Council that no written objections had been filed. The Mayor then called for oral objections to the proposal 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) -3- The City Council then considered the proposed action and the extent of objections thereto. Whereupon, Council Member Joyce Connors introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $3,500,000 SEWER REVENUE CAPITAL LOAN NOTES", and moved: XX that the Resolution be adopted. to ADJOURN and defer action on the Resolution and the proposal to institute proceedings to the meeting to be held at o'clock .M. on the day of , 2009, at this place. Council Member Karla Braig seconded the motion. The roll was called and the vote was, AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg NAYS: None Whereupon, the Mayor declared the measure duly adopted. RESOLUTION NO. 72-09 RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A LOAN AND DISBURSEMENT AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $3,500,000 SEWER REVENUE CAPITAL LOAN NOTES -4- WHEREAS, pursuant to notice published as required by law, this City Council has held a public meeting and hearing upon the proposal to institute proceedings for the authorization of a Loan and Disbursement Agreement by and between the City and the Iowa Finance Authority, and the issuance to the Iowa Finance Authority of not to exceed $3,500,000 Sewer Revenue Capital Loan Notes to evidence the obligations of the City under said Loan and Disbursement Agreement, for the purpose of paying costs of acquisition, construction, reconstruction, extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those costs associated with design engineering and construction for upgrades to the Water Pollution Control Plant and implementation of the results of the Water Pollution Control Plant Study, and has considered the extent of objections received from residents or property owners as to said proposal, 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 City Council does hereby institute proceedings and takes additional action for the authorization of a Loan and Disbursement Agreement by and between the City and the Iowa Finance Authority, and the issuance to the Iowa Finance Authority in the manner required by law of not to exceed $3,500,000 Sewer Revenue Capital Loan .Notes for the foregoing purpose. Section 2. That the Clerk, with the assistance of the City Attorney and bond counsel, is hereby authorized and directed to proceed with the preparation of such documents and proceedings as shall be necessary to authorize the City's participation in the SRF Loan Program, to select a suitable date for final City Council authorization of the required Loan and Disbursement Agreement and issuance of the Note to evidence the City's obligations thereunder, and to take such other actions as the Clerk shall deem necessary to permit the completion of a loan on a basis favorable to the City and acceptable to this Council. -5- PASSED AND APPROVED this 16t" day of February, 2009. Mayor ATTEST: ~~c/ ity Clerk -6- CIG-3 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE ) 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 true and complete copy of the action taken by said Council with respect to said 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 accprdance 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 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 17t" day of February, 2009. i --~' ity Clerk, Dubuque, Iowa SEAL DCORN ELL\604188.1 \WP\10422.088 -7- ORIGINAL (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Dubuque, Iowa Date of Meeting: February 16, 2009 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 said meeting is as follows: Greater Downtown Urban Renewal District Resolution approving and authorizing execution of a Development Agreement between the City of Dubuque, Iowa and Dubuque Initiatives, and an Incentive Agreement between the City and International Business Machines Corporation Such additional matters as are set forth on the additional 12 page(s) attached hereto. 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 -1- February 17, 2009 The City Council 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: Present: Braig, Connors, Jones, Lynch, Resnick, Voetberg Absent: None ******* -2- Council Member Karla Braig introduced and delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE INITIATIVES, AND THE INCENTIVE AGREEMENT BETWEEN THE CITY AND INTERNATIONAL BUSINESS MACHINES CORPORATION", and moved: /X / that the Resolution be adopted. / / to ADJOURN and defer action on the Resolution and the proposal to the meeting to be held at o'clock _.M. on the day of , 2009, at this place. Council Member Ric Jones seconded the motion. The roll was called and the vote was, AYES: Braig, Buol, Connors, Jones, Lynch, Resnick, Voetberg NAYS: None Whereupon, the Mayor declared the measure duly adopted. -3- RESOLUTION NO. 74-09 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND DUBUQUE INITIATIVES, AND THE INCENTIVE AGREEMENT BETWEEN THE CITY AND INTERNATIONAL BUSINESS MACHINES CORPORATION WHEREAS, the City Council has approved and adopted an Amended and Restated Urban Renewal Plan (the "Urban Renewal Plan") for an area described therein as the Greater Downtown Urban Renewal District (the "Urban Renewal Area"); and WHEREAS, it is desirable that properties within the Urban Renewal Area be redeveloped as part of the overall redevelopment area covered by said Urban Renewal Plan; and WHEREAS, the City of Dubuque ("City") has received a proposal from Dubuque Initiatives (the "Developer") and International Business Machines Corporation (the "Employer"), in the form of a proposed Development Agreement (the "Development Agreement") between the City and the Developer and a proposed Incentive Agreement (the "Incentive Agreement," and together with the Development Agreement, referred to herein as the "Agreements") between the City and the Employer, pursuant to which, among other things, the Developer would acquire and renovate the Dubuque Building located at 700 Locust Street in the City, and lease portions of the same to the Employer; and WHEREAS, the Employer reasonably expects to create approximately 1,300 new full-time employment positions at the Dubuque Building property prior to January 1, 2011, and reasonably expects to maintain those jobs during the term of the Agreements; and WHEREAS, in consideration of the obligations being assumed by the Developer and the Employer, the Agreements further propose that the City provide certain financial assistance to the Developer and the Employer, including a loan guaranty for the benefit of the Developer and the payment of certain economic development grants to the Developer and the Employer; and WHEREAS, the economic development grants to the Developer and the Employer shall be payable from, and only from, the tax increment revenues collected by the City in respect of the Dubuque Building property and the improvements constructed thereon, under the terms and following satisfaction of the conditions set forth in the Agreements; and -4- WHEREAS, Iowa Code Chapters 15A and 403 (the "Urban Renewal Law") authorize cities to make grants for economic development purposes in furtherance of the objectives of an urban renewal plan and project and to appropriate such funds and make such expenditures as may be necessary to carry out the purposes of said Chapters, and to levy taxes and assessments for such purposes; and WHEREAS, the Council has determined that the Agreements are in the best interests of the City and the residents thereof and that the performance by the City of its obligations thereunder are public undertakings and purposes and in furtherance of the Urban Renewal Plan and the Urban Renewal Law and, further, that the Agreements and the City's performance thereunder are in furtherance of appropriate economic development activities and objectives of the City within the meaning of Chapters 403 and 15A of the Iowa Code, taking into account the factors set forth therein; and WHEREAS, pursuant to notice published as required by Section 403.9, this Council has held a public meeting and hearing upon the proposal to approve and authorize execution of the Agreements and the foregoing economic development grant payments, and has considered the extent of objections received from residents or property owners with respect thereto; 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 the performance by the City of its obligations under the Agreements, including but not limited to the payment of the economic development grants to the Developer and the Employer under the terms set forth in the Agreements, be and are hereby declared to be public undertakings and purposes and in furtherance of the Urban Renewal Plan and the Urban Renewal Law and, further, that the Agreements and the City's performance thereunder are in furtherance of appropriate economic development activities and objectives of the City within the meaning of Chapters 403 and 15A of the Iowa Code, taking into account the factors set forth therein. Section 2. That the form and content of the Agreements, including the form and content of the Guaranty Agreement between the City and Dubuque Bank and Trust Company attached to the Development Agreement as an exhibit, the provisions of which are incorporated herein by reference, be and the same hereby are in all respects authorized, approved and confirmed, and the Mayor and the City Clerk be and they hereby are authorized, empowered and directed to execute, attest, seal and deliver the same for and on behalf of the City in substantially the form and content now before this meeting, but with such changes, modifications, additions or deletions therein as may be approved by such officers upon the advice of the City Attorney, and that from and after the execution and delivery of the Agreements, the Mayor and the City Clerk are hereby -5- authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Agreement as executed. Section 3. That the economic development grant payments to be made by the City under the Agreements, the provisions of which are incorporated herein by reference, be and the same hereby are in all respects authorized, approved and confirmed, and the City Manager, City Clerk and other City staff be and are hereby authorized, empowered and directed to certify the amount of the economic development grant payments to the Dubuque County Auditor for tax increment reimbursement, and to cause such payments to be made to the Developer and Employer as may be required under the Agreements, at the times set forth therein, and to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of said Agreements. PASSED AND APPROVED this 16t" day of February, 2009. t~ Mayor ATTEST: ~~ ~~ erk -6- CIG-3 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE ) 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 true and complete copy of the action taken by said Council with respect to said 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 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 17t" day of February, 2009. ity Clerk, Dubuque, Iowa SEAL DCORNELU 604937.1 /MSWord\10422.087 -7-