Urban Renewal Tax Increment Revenue Notes_40 Main, LLCTHE CITY OF ~ Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution approving and authorizing a loan agreement and issuance of
Urban Renewal Tax Increment Revenue Notes to Support the 40 Main,
LLC Project
DATE: June 9, 2009
Economic Development Director Dave Heiar recommends City Council approval of a
resolution authorizing a form of loan agreement and authorizing and providing for the
issuance of not to exceed $700,000 in Urban Renewal Tax Increment Revenue Notes to
support the 40 Main LLC., amixed-use redevelopment of the building at 40 Main Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi hael 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
~T T~ ~ All-Amedcal~ly
~/
Masterpiece an the Mississippi
2007
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
SUBJECT: Resolution approving and authorizing a loan agreement and issuance of
Urban Renewal Tax Increment Revenue Notes to Support the 40 Main,
LLC project.
DATE: June 9, 2009
INTRODUCTION
This memorandum presents for City Council adoption a resolution approving and
authorizing a form of loan agreement and authorizing and approving 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.
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.
On June 1, 2009, the City Council set a public hearing for June 15th on the proposed
issuance of not to exceed $700,000 in order to provide funds to pay the costs of an
urban renewal project in the Greater Downtown Urban Renewal District, specifically
funding an economic development grant and loan to the 40 Main, LLC. 40 Main, LLC
negotiated the purchase of the bonds with Premier Bank at an annual interest rate of
6.5%.
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.
RECOMMENDATION/ACTION STEP
I recommend that the City Council follow the proceedings attached, provided to us by
our bond counsel, and approve a resolution authorizing a form of loan agreement and
authorizing and providing for the issuance of up to $700,000 in Urban Renewal Tax
Increment Revenue Notes.
Attachment
6/8/2009 5:00:00 PM
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: June 15, 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 Public hearing on the issuance.
X Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional 10 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
_1_
June 16, 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 E. Connors in the chair, and the
following named Council Members:
Karla Braig, Ric Jones, Kevin Lynch, David Resnick, Dirk Voetberg
Absent: Mayor Roy Buol
*******
_2_
The Mayor Pro-Tem announced that this was the time and place for the public
hearing and meeting on the matter of 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, and that
notice of the proposed action by the Council to institute proceedings for the issuance of
said Urban Renewal Tax Increment Revenue Notes had been published pursuant to-the
provisions of Section 403.9 of the Code of Iowa.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the issuance of said Urban Renewal Tax
Increment Revenue Notes. 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 said Urban Renewal Tax Increment Revenue Notes 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 Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Lynch 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
$700,000 URBAN RENEWAL TAX INCREMENT REVENUE NOTES," and moved its
adoption. Council Member Resnick 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 said Resolution duly adopted as follows:
RESOLUTION NO. 204-09
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE ISSUANCE OF NOT TO
EXCEED $700,000 URBAN RENEWAL TAX INCREMENT
REVENUE NOTES
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 $700,000 Urban Renewal Tax Increment Revenue Notes for
the purpose of 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, and has considered the extent of objections received from residents
or property owners as to said proposed issuance; 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 takes
additional action for the sale and issuance in the manner required by law of not to
_q._
exceed $700,000 Urban Renewal Tax Increment Revenue Notes for the foregoing
purpose.
Section 2. The Finance Officer is authorized and directed to proceed on behalf
of the City with the sale of said Notes, to select a date for the sale thereof, to cause to
be prepared such notice and sale information as may appear appropriate, to publish
and distribute the same on behalf of the City and this Council and otherwise to take all
action necessary to permit the sale of said Notes on a basis favorable to the City and
acceptable to the Council.
PASSED AND APPROVED this 15t" day of June, 2009.
Mayor
ATTEST:
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ity Clerk
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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 16t" day
of June, 2009.
.~ -°" ~,C
' y Clerk, Dubuque, Iowa
SEAL
DCORNELL/ 616593.1 /MSWord\10422.090
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