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
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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)
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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.
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PASSED AND APPROVED this 16t" day of February, 2009.
Mayor
ATTEST:
~~c/
ity Clerk
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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
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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
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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
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