40 Main LLC Project_Tax Increment Revenue NotesTHE CITY OF Dubuque
-...
~j ~'R ~ A~,Ame~caCity
l.J 1J
Masterpiece an the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Fixing Date for Public Hearing on Proposal to Authorize a Loan
Agreement and Issuance of Urban Renewal Tax Increment Revenue
Notes to Support the 40 Main, LLC Project
DATE: May 26, 2009
Economic Development Director Dave Heiar requests the City Council set a public
hearing for June 15, 2009, on the issuance of not to exceed $700,000 in Urban
Renewal Tax Increment Revenue Notes to support a mixed use redevelopment of the
building at 40 Main Street by 40 Main LLC.
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
David Heiar, Economic Development Director
THE CITY OF Dubuque
----~
DUB E ~~'~~~~
._~
Masterpiece on the Mississippi
ro
2007
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director ~~
SUBJECT: Resolution Fixing Date for Public Hearing on proposal to authorize a loan
agreement and issuance of Urban Renewal Tax Increment Revenue
Notes to Support the 40 Main, LLC project.
DATE: May 21, 2009
INTRODUCTION
This memorandum presents for City Council adoption a resolution fixing the date for a
public hearing on the issuance of not to exceed $700,000 in Urban Renewal Tax
Increment Revenue Notes to support the 40 Main LLC., a mixed use redevelopment of
the building at 40 Main Street. The resolution sets the date of public hearing for June
15, 2009.
DISCUSSION
On January 15, 2009, the City Council approved a Development Agreement with 40
Main LLC. That Agreement set the terms for the redevelopment of property located at
40 Main Street. The Agreement stipulates the City will provide an Economic
Development Grant and loan to 40 Main, LLC in an amount estimated at $600,000 (half
loan, half grant). The City's intention is to use the Tax Increment revenues from the 40
Main rehabilitation project to retire debt on the Urban Renewal Tax Increment Revenue
Note, which is being used as the tool to provide the Economic Development Grant and
Loan to the Company. 40 Main, LLC asked Premier Bank to purchase the revenue
notes. The note sale will be for $700,000. This amount will be decreased for
administrative costs and to cover advanced interest needed to finance this loan until
property taxes are collected for this newly constructed facility, with the net proceeds
($600,000) going to 40 Main, LLC.
The City has required that the Company execute a Minimum Assessment Agreement,
and the City pledges only the taxes generated from the new value of the project. There
is no City Guarantee involved.
The City must hold a public hearing whenever it agrees to carry out an Urban Renewal
Project and issues debt for this purpose. The attached instructions from our bond
attorney, Bill Noth of the Ahlers Law firm includes the proceedings and a resolution
setting the public hearing for this proposal.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution fixing the date for a
public hearing on the issuance of not to exceed $700,000 in Urban Renewal Tax
Increment Revenue Notes to support the 40 Main rehabilitation project in the Greater
Downtown Urban Renewal District. The public hearing to approve the issuance will be
June 15, 2009.
ACTION STEP
The action step for the City Council is to review the enclosures, and adopt the attached
resolution.
Attachment
F:\USERS\DHeiar\40-42 South Main\40 Main Set date for hearing for TIF.doc
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: June 1, 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:
Not to exceed $700,000 Urban Renewal Tax Increment Revenue Notes.
X Resolution fixing date for a meeting on the proposition to issue.
Such additional matters as are set forth on the additional 10 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.
ity Clerk, Dubuque, Iowa
-1-
June 2, 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 Pro-Tem Joyce Connors in the chair, and the
following named Council Members:
Present: Karla Braig, Ric Jones, Kevin Lynch, David Resnick, Dirk Voetberg
Absent: Mayor Roy Buol
**,~*~**
_2_
Council Member Lynch introduced the following Resolution entitled "RESOLUTION
FIXING DATE FOR A MEETING ON THE PROPOSITION. OF THE ISSUANCE OF
NOT TO EXCEED $700,000 URBAN RENEWAL TAX INCREMENT REVENUE NOTES
OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE
THEREOF", and moved that the same be adopted. Council Member Jones seconded
the motion to adopt. The roll was called and the vote was,
AYES: Braig, Connors, Jones, Lynch, Resnick, Voetberg
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 184-09
RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION
OF THE ISSUANCE OF NOT TO EXCEED $700,000 URBAN RENEWAL
TAX INCREMENT REVENUE NOTES OF DUBUQUE, IOWA, AND
PROVIDING FOR PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque,
Iowa should issue Urban Renewal Tax Increment Revenue Notes to the amount of not
to exceed $700,000, as authorized by Section 403.9 of the Code of Iowa, for the
purpose of providing funds to pay costs of carrying out a project as hereinafter
described; and
WHEREAS, Section 403.9 sets forth the procedural action required to be taken
before said Urban Renewal Tax Increment Revenue Notes may be issued, and it is
therefore necessary that the action hereinafter described be taken and that the Clerk
publish a notice of the proposal and of the time and place of the meeting at which the
Council proposes to take action thereon and to receive oral and/or written objections
from any resident or property owner of said City to such action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That this Council meet in the Historic Federal Building, 350 West 6th
Street, Dubuque, Iowa, at 6:30 o'clock P. M., on the 15t" day of June, 2009, for the
purpose of taking action on the matter of the issuance of not to exceed $700,000 Urban
Renewal Tax Increment Revenue Notes, the proceeds of which will be used to provide
funds to pay costs of 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
-3-
Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal
District, including those costs associated with the funding of economic development
grants and loans to 40 Main, LLC, an Iowa limited liability company, under the terms of
a Development Agreement dated January 15, 2009 between the City of Dubuque, Iowa
and 40 Main, LLC, as the same may be amended from time to time, and the funding of
related reserves and payment of the costs of issuance of the Notes.
Section 2. That the Clerk is hereby directed to cause at least one publication to
be made of a 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 four clear days nor more than twenty days before
the date of said public meeting on the issuance of said obligations.
Section 3. The notice of the proposed action to issue said Urban Renewal Tax
Increment Revenue Notes shall be in substantially the following form:
-4-
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO
EXCEED $700,000 URBAN RENEWAL TAX INCREMENT REVENUE
NOTES OF SAID CITY, AND THE HEARING ON THE ISSUANCE
THEREOF
PUBLIC NOTICE is hereby ~iven that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the 15t day of June, 2009, 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 $700,000
Urban Renewal Tax Increment Revenue Notes in order to provide funds to pay costs of
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 Greater Downtown Urban Renewal District, including those
costs associated with the funding of economic development grants and loans to 40
Main, LLC, an Iowa limited liability company, under the terms of a Development
Agreement dated January 15, 2009 between the City of Dubuque, Iowa and 40 Main,
LLC, as the same may be amended from time to time, and the funding of related
reserves and payment of the costs of issuance of the Notes.
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 Urban Renewal Tax Increment
Revenue Notes or will abandon the proposal to issue said obligations. Said hearing and
appeals therefrom shall be held in accordance with and governed by the provisions of
Section 403.9 of the Code of Iowa.
This notice is given by order of the Council of Dubuque, Iowa, as provided by
Section 403.9 of the Code of Iowa.
Dated this 5t" day of June, 2009.
Jeanne F. Schneider, CMC
City Clerk of Dubuque, Iowa
(End of Notice)
-5-
PASSED AND APPROVED this 1st day of June, 2009.
Joyce E. Connors,
Mayor Pro-Tem
ATTEST:
Jeanne F. Schneider
City Clerk
-6-
CIG-3
9/91
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 3~d day of
June, 2009.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL/ 616521.1 /MSWord\10422.090
®7_