Bonds,TIF, Vessel Systems suppoMEMORANDUM
TO:
FROM:
SUBJECT:
November 25, 2003
<
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Resolution Fixing Date for Public Hearing on Tax Increment Revenue-
Bonds to Support Vessel Systems, Inc.
Economic Development Director Bill Baum is recommending the issuance of not to
exceed $140,000 in urban renewal tax increment revenue bonds to support the Vessel
Systems, Inc. project at the Dubuque Industrial Center West, and that a public hearing
be set for December 15, 2003.
On June 2, 2003, the City Council adopted Resolution 191-03 that approved a
Development Agreement by and between the City of Dubuque and Vessel Systems,
Inc. That agreement set the terms for the acquisition and development of property in
the Dubuque Industrial Center West by Vessel Systems, Inc. and included the use of
tax increment financing (TIF) to support the project. Vessel Systems has agreed to
build a 31,000 square foot manufacturing plant, retain 24 employees and hire 25 new
employees within three years.
The agreement stipulates construction of a new plant facility with a minimum assessed
value for taxation purposes of not less than $1,000,000. The tax revenue stream from
that assessment will support the $140,000 borrowing over a ten-year period. The
company has worked with a local bank to purchase the TIF bond.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
November 25, 2003
TO:
FROM:
SUB J:
Michael Van Milligen, City Manager
RVV~I I~ ~ ~u l~oa~ ~ix~ n[~a~ ieC f~ ~ Vpel °b~ cm eHn~a~i rne~t~ ~e
Bonds to Support Vessel Systems, Inc.
INTRODUCTION
This memorandum presents for City Council adoption a resolution fixing the date for a
public hearing on the issuance of not to exceed $140,000 in urban renewal tax
increment revenue bonds to support Vessel Systems, Inc.'s relocation and expansion
project at the Dubuque Industrial Center West. The resolution sets the date of public
hearing for December 15, 2003.
DISCUSSION
On June 2, 2003, the City Council adopted Resolution 191-03 that approved a
Development Agreement by and between the City of Dubuque and Vessel Systems,
Inc. That agreement set the terms for the acquisition and development of property in
the Dubuque Industrial Center West by Vessel Systems, Inc. and included the use of
tax increment financing (TIF) to support the project. Vessel Systems has agreed to
build a 31,000 square foot manufacturing plant, retain 24 employees and hire 25 new
employees within 3 years.
The agreement stipulates construction of a new plant facility with a minimum assessed
value for taxation purposes of not less than $1,000,000. The tax revenue stream from
that assessment will support the $140,000 borrowing over a ten-year period. The
company has worked with a local bank to purchase the TIF bond.
The City must hold a public hearing whenever it agrees to obligate tax increment
revenues. The attached resolution sets the public hearing for this proposal to issue not
to exceed $140,000 in urban renewal tax increment revenue bonds for the Vessel
Systems, Inc. project.
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 $140,000 in urban renewal tax
increment revenue bonds to support the Vessel Systems, Inc. project at the Dubuque
Industrial Center West. The employer will expand its operation to 49 jobs within 3 years
and create $1 million in new assessed value.
The City's bond attorney has prepared the attached documents to set the issuance for
public hearing on December 15, 2003.
ACTION STEP
The action step for the City Council is to adopt the attached resolution.
attachments
F:\US ERS~Pm~hre\WPDOCS\LOAN DOC\vesseis\TIFDATEMEMQdoc
(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.
,2003.
o'clock .M.
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 above set out. The tentative agenda for said
meeting is as follows:
Not to exceed $140,000 Urban Renewal Tax Increment Revenue Bonds.
· Resolution fixing date for a meeting on the proposition to issue.
Such additional matters as are set forth on the additional
(number)
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
,2003
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
and the following named Council Members:
session, in the
o'clock __.M.,
, in the chair,
Absent:
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Council Member introduced the following Resolution
entitled "RESOLUTION FIXING DATE FOR A MEETiNG ON THE PROPOSITION
OF THE ISSUANCE OF NOT TO EXCEED $140,000 URBAN RENEWAL TAX
iNCREMENT REVENUE BONDS 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 roll was
called and the vote was,
AYES:
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION FIXING DATE FOR A MEETiNG ON THE
PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $140,000
URBAN RENEWAL TAX iNCREMENT REVENUE BONDS OF
DUBUQUE, IOWA, AND PROVIDiNG FOR PUBLICATION OF
NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, lowa,
should issue Urban Renewal Tax Increment Revenue Bonds to the amount of not to
exceed $140,000, 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 Bonds 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:
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Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public
Library, Dubuque, Iowa, at o'clock__.M., on the day of
., 2003, for the purpose of taking action on the matter of the issuance
of not to exceed $140,000 Urban Renewal Tax Increment Revenue Bonds, 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 Amended and Restated Urban Renewal Plan for the Dubuque
Industrial Center Economic Development District, including those costs associated with
the funding of an economic development grant to the Vessel Systems, Inc. under the
terms of a Development Agreement between the City and said developer.
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 Bonds shall be in substantially the following form:
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NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $140,000 URBAN RENEWAL TAX
INCREMENT REVENUE BONDS OF SAID CITY, AND THE
HEARING ON THE ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the day of ., 2003, at __ o'clock
__.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which
meeting the Council proposes to take additional action for the issuance of not to exceed
$140,000 Urban Renewal Tax Increment Revenue Bonds 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 Dubuque Industrial Center Economic Development
District, including those costs associated with the funding of an economic development
grant to the Vessel Systems, Inc. under the terms of a Development Agreement between
the City and said developer.
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 Bonds 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. Code Section 403.9 shall govern this meeting and
action taken thereat.
Dated this __ day of ,2003.
City Clerk of Dubuque, Iowa
(End of Notice)
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PASSED AND APPROVED this __ day of
.,2003.
ATTEST:
Mayor
City Clerk
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CIG-3
9/91
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 tree 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
day of ,2003.
SEAL
DCORNELLk393067\ 1\I 0422043
City Clerk, Dubuque, Iowa
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