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Baseball Stadium Loan NotesMEMORANDUM TO: FROM: SUBJECT: November 11,2003 The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Public Discussion Meeting/Public Hearing on Issuance of General Fund Capital Loan Notes for Baseball Stadium On November 3, the City Council passed a resolution calling for a referendum on December 16 on a Capital Improvement Fund Levy for a baseball stadium. The Levy will be used to help finance a part of the cost of the stadium. The design and construction of the proposed stadium will be completed by the City. The method the City will use to arrange the financing of the stadium is General Fund Capital Loan Notes. This loan (notes) will be retired from voter approved annual Capital Improvement Fund Levy tax payments, annual lease payments from the team, and annual payments from the private sector through a "naming rights" agreement. Cash from Dubuque County, Dubuque Initiatives and Vision Iowa Board will reduce the loan amount needed. We have asked these three parties for a total of $5,000,000. If all of those funds were provided up-front, the City borrowing would be $10,000,000. However, since some of those resources may be provided over time, initial City borrowing may need to be higher in order to make the payments to the contractor and architect. For clarification, the intent of the City is to issue only the amount necessary to finance a $15,000,000 stadium. Obviously, given the other resources contributing to pay for the stadium the permanent financing will be less than $15,000,000. However, rather than guess on the exact amount of General Fund Capital Loan Notes to be issued, the "not to exceed" $15,000,000 has been used, based on the cost estimates provided to the City by HOK Sports. At any time before the end of a thirty day period following the discussion meeting to be held on November 17, 2003, a petition, asking that the question of entering into the Loan Agreement and issuing such Notes be submitted to the voters of the City, may be filed with the City Clerk in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.24A of the Code of Iowa. I respectfully recommend that the Mayor and City Council receive comments from the public on the proposed method of financing the stadium. Although the City Council may discuss the financing, no action can be taken at the meeting. A special meeting of the City Council is scheduled for December 18 to take further action, based on the results of the December 16 referendum. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM November 10, 2003 TO: Michael Van Milligen, City Manager FROM: William Baum, Economic Development Director/~~'~''~'''~ SUBJECT: Public Discussion meeting/public hearing on issuance of General Fund Capital Loan Notes for baseball stadium INTRODUCTION On November 3, the City Council passed a resolution calling for a referendum on December 16 on a Capital Imprevement Fund Levy for a baseball stadium. The Levy will be used to help finance a part of the cost of the stadium. On November 3, the Council also set a public hearing for a public discussion meeting on the proposed method of financing of the stadium. DISCUSSION The design and construction of the proposed stadium will be completed by the City. The method the City will use to arrange the financing of the stadium is General Fund Capital Loan Notes. This loan (notes) will be retired from voter approved annual Capital Improvement Fund Levy tax payments, annual lease payments from the team, and annual payments from the private sector through a "naming rights" agreement. Cash from Dubuque County, Dubuque Initiatives and Vision Iowa Board will reduce the loan amount needed. We have asked these three parties for a total of $5,000,000. If all of those funds were provided up-front, the City borrowing would be $10,000,000. However, since some of those resources may be provided over time, initial City borrowing may need to be higher in order to make the payments to the contractor and architect. For clarification, the intent of the City is to issue only the amount necessary to finance a $15,000,000 stadium. Obviously, given the other resources contributing to pay for the stadium the permanent financing will be less than $15,000,000. However, rather than guess on the exact amount of General Fund Capital Loan Notes to be issued, the "not to exceed" $15,000,000 has been used, based on the cost estimates provided to the City by HOK Sports. State law requires that whenever this method (General Fund Capital Loan Notes) is being used, the City Council must hold a "discussion meeting" with the public. This public hearing is scheduled for November 17. No action may be taken by the City Council for a period of 30 days after the discussion meeting. RECOMMENDATION I recommend the City Council receive comments from the public on the proposed method of financing of the stadium, and follow the attached proceedings of the Ahlers Law firm. No resolutions are required at this time. Although the Council may discuss the financing, they may not take any action at this meeting. Since Dubuque citizens will have the opportunity to decide the fate of the baseball stadium financing on December 16, I recommend no additional action on the financing be taken by the Council until after the vote. A special meeting of the Council is scheduled for December 18. F:\USERS\WBaum\Baseba]l\Memo to Mike for council on general fund loan notes2.doc (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental BOdy: The City Council of Dubuque, Iowa Date of Meeting: ,2003. T/me of Meeting: o'clock .M. Place of Meeting: Auditorium, carnegie-Stout Public Library, Dubuque, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place ab6ve set out. The tentative agenda for said meeting is as follows: Not to exceed $15,000,000 General Fund Capital Loan Notes Discussion meeting and public heating on the authorization of a Loan Agreement and the issuance of Notes to evidence the obligation of the City thereunder. Such additional matters as are set forth on the additionalpage(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of Iowa, and the local roles of said governmental body. City Clerk, Dubuque, Iowa ,2003 The City Council of Dubuque, Iowa, met in Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at the above date. There were present Mayor the following named Council Members: session, in the o'clock__.M., on , in the chair, and Absent: -1- The Mayor armounced that this was the time and place for the discussion meeting and public hearing on the matter of the authorization ora Loan Agreement and the issuance of not to exceed $15,000,000 General Fund Capital Loan Notes in order to provide funds to pay costs of the acquisition, construction and equipping ora minor league baseball stadium facility and related improvements. The Mayor then asked the City Clerk whether any written objections had been filed by any City resident or property owner to the proposal. The City Clerk advised the Mayor and the Council that written objections had been filed. The Mayor then called for oral objections to the proposal and were made. Whereupon, after further discussion, the Mayor declared the time for receiving oral and written objections to be closed and advised that additional action on the proposal would be considered at the City Council's meeting scheduled for . , 2003. · (Attach here a summary of objections received or made, if any) -2- CIG-3 9/91 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) ) ss ) I, the undersigned City Clerk 0f Dubuque, Iowa, do hereby certify that attached is a tree 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 2t, 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 theft respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this day of ,2003. SEAL City Clerk, Dubuque, Iowa -3- MEMORANDUM November 3, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Resolution Setting Dates for Discussion Meetings on the Authorization of General Fund Loan Notes for the Proposed Baseball Stadium On November 3, the City Council will act on a proposal to have a referendum on December 16 on a Capital Improvement Fund Levy for a baseball stadium. The Levy will be used to help finance a par[ of the cost of the stadium. The balance of the estimated not to exceed cost of $15,000,000 will be financed through lease payments from the team, a proposed Vision Iowa grant, naming rights, and cash from Dubuque County and Dubuque Initiatives. The method the City will use to arrange the financing of the Stadium is General Fund Capital Loan Notes. The revenues identified above will flow into the General Fund, and be used to retire the Notes. State law requires that whenever this method is being used, the City Council must hold a "discussion meeting" with the public. This public hearing is held but no action may be taken by the City Council for a period of 30 days after the discussion meeting. At any time before the end of a thirty day period following the discussion meeting to be held on November 17, 2003, a petition, asking that the question of entering into the Loan Agreement and issuing such Notes be submitted to the voters of the City, may be filed with the City Clerk in the manner provided by Section 362.4 of the Code of iowa, pursuant to the provisions of Section 384.24A of the Code of iowa. Economic Development Director Bill Baum is recommending that a public hearing be scheduled for November 17, 2005, with a follow-up special City Council meeting scheduled for December 18, 2003 at 4:30 p.m. in City Hall Conference Room B to take fur[her actions related to the debt issuance, depending on the results of the December 16, 2003 referendum. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager William Baum, Economic Development Director CITY OF DUBUQUE, IOWA MEMORANDUM October 31,2003 TO: FROM: Michael Van Milligen, City Manager William Baum, Economic Development Directo~,~//~ SUBJECT: Resolution setting dates for discussion meetings on the authorization of General Fund Loan Notes for the proposed baseball stadium INTRODUCTION On November 3, the City Council will act on a proposal to have a referendum on December 16 on a Capital Improvement Fund Levy for a baseball stadium. The Levy will be used to help finance a part of the cost of the stadium. The balance of the estimated not to exceed cost of $15,000,000 will be financed through lease payments from the team, a proposed Vision Iowa grant, naming rights, and cash from Dubuque County and Dubuque Initiatives. DISCUSSION The method the City will use to arrange the financing of the Stadium is General Fund Capital Loan Notes. The revenues identified above will flow into the General Fund, and be used to retire the Notes. State law requires that whenever this method is being used, the City Council must hold a "discussion meeting" with the public. This public hearing is held but no action may be taken by the City Council for a period of 30 days after the discussion meeting. At any time before the end of a thirty day period following the discussion meeting to be held on November 17, 2003, a petition, asking that the question of entering into the Loan Agreement and issuing such Notes be submitted to the voters of the City, may be filed with the City Clerk in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.24A of the Code of Iowa. RECOMMENDATION In order to continue to move forward, and meet the schedule of constructing a Minor League Baseball Stadium, opening on or before May 1, 2005, the City Council should set the discussion meeting (public hearing) on the issuance of not to exceed $15,000,000 General Fund Loan Notes for November 17, and a follow-up meeting for December 18. Since the December 18 meeting is after the December 16 referendum, the timing will be ideal for the City Council to take appropriate action. ACTION STEP I recommend the City Council follow the proceedings outlined by the Ahlers Law firm, and adopt the attached resolution calling for a discussion meeting (public hearing) on November 17, 2003, and a meeting to take further action on December 18, 2003: F:\USERS\WBaum\Baseball\Merno to Mike for council on general fund loan notes.doc (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: Date of Meeting: Time of Meeting: Place of Meeting: The City Council of Dubuque, Iowa. November 3, 2003. 6:30 o'clock P.M. Auditorium, Camegie-Stout Public Library, 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 $15,000,000 General Fund Capital Loan Notes - Resolution fixing date for meetings on the proposition to authorize a Loan Agreement and the issuance of Notes to evidence the obligations of the City thereunder. Such additional matters as are set forth on the additional 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 ,2003 The City Council of Dubuque, Iowa, met in Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at the above date. There were present Mayor the following named Council Members: session, in the o'clock __.M., on , in the chair, and Absent: Council Member introduced the following Resolution entitled "RESOLUTION FIXING DATES FOR MEETINGS ON THE AUTHORIZATION OF A LOAN AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $15,000,000 GENERAL FUND CAPITAL LOAN NOTES OF THE CITY OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted. Council Member seconded the motion to adopt. The mil was called and the vote was, AYES: NAYS: Whereupon, the Mayor declared the Resolution duly adopted as follows: RESOLUTION FIXING DATES FOR MEETINGS ON THE AUTHORIZATION OF A LOAN AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $15,000,000 GENERAL FUND CAPITAL LOAN NOTES OF THE CITY OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa should provide for the authorization of a Loan Agreement and the issuance of General Fund Capital Loan Notes to the amount of not to exceed $15,000,000, as authorized by Section 384.24A, Code of Iowa, as amended, for the purpose of providing funds to pay costs of improving certain real property and carrying out the project as hereinafter described; and WHEREAS, the Loan Agreement and Notes shall be payable from the general fund of the City; and WHEREAS, before a Loan Agreement may be authorized and General Fund Capital Loan Notes issued to evidence the obligations of the City thereunder, it is necessary to comply with the provisions of the Code of Iowa, as amended, and to publish a notice of the proposal and of the time and place of a discussion meeting at which the Council will discuss whether to take additional action for the authorization of the Loan Agreement and Notes and to receive oral and/or written objections from any resident or property owner of the City to such action. -3- NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public - Library, 360 West 11th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the 17th day of November, 2003, for the purpose of conducting a discussion meeting and public hearing on the matter of the authorization of a Loan Agreement and the issuance of not to exceed $15,000,000 General Fund Capital Loan Notes to evidence the obligations of the City thereunder, the proceeds of which will be used to pay costs of the acquisition, construction_and equipping of a minor league baseball stadium facility and related improvements. Section 2. That this Council meet in the Conference Room B, City Hall, 50 West t3t~ Street, Dubuque, Iowa, at 4:30 o'clock P.M., on the 18t~ day of December, 2003, for the purpose of taking additional action on the proposal to enter into said Loan Agreement and issue said Notes for the foregoing purpose, said meeting being held no sooner than thirty days following the discussion meeting referred to in Section 1 hereof. Section 3. That the City Clerk is hereby directed to cause at least one publication to be made of a notice of said discussion meeting, in a legal newspaper, pdnted wholly in the English language, published at least once weekly, and having general circulation in said City, said publication to be not less than ten clear days before the date of said discussion meeting on the proposed issuance of said Notes. Section 4. The notice of the proposed action shall be in substantially the following form: -4- NOTICE OF DISCUSSION MEETING TO BE HELD BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A LOAN AGREEMENT AND THE ISSUANCE OF NOT TO EXCEED $15,000,000 GENERAL FUND CAPITAL LOAN NOTES, AND THE PUBLIC HEARING ON THE AUTHORIZATION AND ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a discussion meeting and public hearing on the 17th day of November, 2003, at 6:30 o'clock P.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which meeting the Council will discuss and consider whether to take additional action for the authorization of a Loan Agreement and the issuance of not to exceed $15,000,000 General Fund Capital Loan Notes, in order to pay costs of the acquisition, construction and equipping of a minor league baseball stadium facility and related improvements. The proposed Loan Agreement and Notes would be payable from the general fund of the City. Principal and interest due from the general fund of the City on the proposed Loan Agreement and all other loan agreements in force on the date of authorization will not exceed ten percent of the last certified general fund budget amount. At the above meeting, the Council shall receive oral or wdtten objections from any resident or property owner of the City to the above action. Following said discussion meeting, the City Council will meet on the 18th day of December, 2003, at 4:30 o'clock P.M., in the Conference Room B, City Hall, 50 West 13t~ Street, Dubuque, Iowa, at which meeting the Council may take additional action for the authorization of said Loan Agreement and the issuance of said Notes to evidence the obligations of the City thereunder. At any time before the end of a thirty day period following the discussion meeting to be held on November 17, 2003, a petition, asking that the question of entering into said Loan Agreement and issuing such Notes be submitted to the legal voters of said City, may be filed with the City Clerk of said City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.24A of the Code of Iowa. -5- This Notice is given by order of the City Council of the City of Dubuque, Iowa, as provided by Section 384.24A of the Code of Iowa, as amended. Dated this day of ,2003. City Clerk, Dubuque, Iowa (End of Notice) -6- PASSED AND APPROVED this day of 2003. Mayor ATTEST: City Clerk -?- CIG-3 9191 CERTIFICATE STATE OF IOWA COUNTY OF DUBUQUE ) ) SS ) 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 cleady 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 day of ., 2003. City Clerk, Dubuque, Iowa SEAL DCORNELL~390051\1\10422063 F:\USERS\WBaum\Basebal~Dubuque proceedings to set date of meetings.doc -8- NOTICE OF DISCUSSION MEETING TO BE HELD BY THE CITY OF THECITY ITCOUNCIL YYOF DUBUQUE, IOWA ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A LOAN AGREEMENT AND THE ISSUANCE OF NOT' TO EXCEED $15,000,000 GENERAL FUND CAPITAL LOAN NOTES, AND THE PUBLIC HEARING ON THE AUTHORIZATION AND ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa, will hold a discussion meeting and public hearing on the 17th day of November, 2003, at 6:30 o'clock P.M., in the Auditorium, Carnegie - Stout Public Library, 360 W. 11 th Street, Dubuque, Iowa, at which meeting the Council will discuss and consider whether to take additional action for the authorization of a Loan Agreement and the issu- ance of not to exceed $15,000,000 General Fund. Capital Loan Notes, in order to pay costs of the acquisition, construction and equipping of a minor, league baseball stadium facility and related im- provements. The pro- posed Loan Agreement and Notes would be pay- able from the general fund of the City. Principal and interest due from the general fund of the City on the proposed Loan Agreement and all other loan agreements in force on the date of authoriza- tion will not exceed ten percent of the last certified general fund budget amount. At the above meeting, the Council shall receive oral or written objections from any resident or property owner of the City to the above action. Following said discussion meeting, the City Council will meet on the 18th day of De- cember, 2003, at 4:30 o'clock P.M., in Confer- ence Room B. City Hall, 50 W. 13th Street, Dubuque, Iowa, at which meeting the Council may take addi- tional , action for the authorization of said Loan Agreement and the issu- ance of said Notes to evidence the obligations of the City thereunder. At any time before the end of a thirty day period following the discussion meeting to be held on November 17, 2003, a petition, asking that the question of entering into said Loan Agreement and issuing such Notes be submitted to the legal voters of said City, may be filed with the City Clerk of said City in the manner provided by Section 362.4' of the Code of Iowa, pur- suant to the provisions of Section 384.24A 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 384.24A of the Code of Iowa, as amended. Dated this 5th day of November, 2003. Jeanne F. Schneider, CMC City Clerk, Dubuque, Iowa 1t 11/5 STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Sherri A. Yutzy, 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: November 5, 2003, and for which the charge is $26.08. Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this (o day of �a��J , 20 D 3 . Notary Public in and for Dubuque County, Iowa. MARY If. WES1' RMEYER Commission Number 154885 My Comm. Exp. FEB. 1, 2005