Lower Main Development_UR Tax Increment Revenue Bonds_Initiate
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MEMORANDUM
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April 26, 2004
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TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Resolution Fixing Date for Public Hearing on Tax Increment Revenue
Bonds to Support Lower Main Development, LLC.
Economic Development Director Bill Baum recommends City Council approval of the
issuance of not to exceed $185,000 in urban renewal tax increment revenue bonds to
support Lower Main Development, LLC.'s redevelopment of the former Weber Paper
Company building at 137 Main, and further recommends that a public hearing be set for
May 17, 2004.
The developer has leased space to Shepherd, Inc., as required by the Development
Agreement, and will create $1 million in new assessed value.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
fYLJJ~~
Mithael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
G'
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 23, 2004
FROM:
Michael Van Milligen, City Manager
William Baum, Economic Development Director ~
Resolution Fixing Date for Public Hearing on ~ncrement Revenue
Bonds to Support Lower Main Development, L.L.C.
TO:
SUBJ:
INTRODUCTION
This memorandum presents for City Council adoption a Resolution fixing the date for a
public hearing on the issuance of not to exceed $185,000 in urban renewal tax
increment revenue bonds to support Lower Main Development, LLC.'s redevelopment
of the former Weber Paper Company building at 137 Main Street. The Resolution sets
the date of public hearing for May 17, 2004.
DISCUSSION
On April 19, 2004, the City Council adopted Resolution No. 173-04 that approved a
Development Agreement by and between the City of Dubuque and Lower Main
Development, LLC. to provide a $150,000 Tax Increment Financing Forgivable Loan.
The additional bond funds are used to pay the first two years of interest until the tax
revenues are available and to pay legal fees. The Development Agreement set the
terms for the use of tax increment financing (TIF) to support the project including an
Assessment Agreement that requires a minimum assessed value for taxation purposes
of not less than $1 million in excess of the current base value of the property. The tax
revenue stream from that assessment will support the $185,000 borrowing over a ten-
year period. The company has worked with Dubuque Bank and Trust 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 $185,000 in urban renewal tax increment revenue bonds for the Lower Main
Development, LL.C. 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 $185,000 in urban renewal tax
increment revenue bonds to support the Lower Main Development, LLC. project at
137 Main Street. The developer has leased space to Shepherd, Inc. as required by the
Development Agreement and will 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 May 17, 2004.
ACTION STEP
The action step for the City Council is to adopt the attached Resolution.
attachments
F ;IUSERSIPm\l!re IWPDOCSILOAN DOClkunkelbriggslTI FDA TEMEMOdoc
AHLERS ~COONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE. SUITE 600
DES MOINES. IOWA 50309-2231
PHONE 515-243-7611
FAX, 515-243-2169
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
WNOTH@AHLERSLAW.COM
Direc! Dia~
15151246-0332
April 22, 2004
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
RE:
Not to exceed $185,000 Urban Renewal Tax Increment Revenue Notes
(Grant to Lower Main Development, L.L.C.)
Dear Mr. TeKippe:
We have now prepared and are enclosing herewith suggested proceedings to be
acted upon by the Council in fixing the date of a meeting on the proposition to issue the
above mentioned Notes and ordering publication of a notice of hearing consistent with the
provisions of Code Section 403.9.
Notice ofthis meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is 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 Notes. In computing time, the date of publication should be excluded. If the last day
falls on Sunday, the whole of the following Monday should be excluded.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, together with publisher's affidavit of publication of notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to
the newspaper for publication purposes. A certificate to attest the proceedings is also
enclosed.
WISHARO& BAllY-las8, GUERNSEY& BAllY-1893, BAILY & STIPP -1901, STIPP. PERRY. BANNISTER & STARlINGER -1914, BANNI""R. CARPENTER.
AHLERS & CoONEY-195O, AHLERS. COONEY. DORWEILER. AllBEE. HAYNIE &SN,," -1974,AHlERS. COONEY. DORWEllER. HAYNIE. SNITH & ALLBEE. P.C. -1990
April 22, 2004
Page 2
Should you have any questions pertaining to the proceedings, please don't hesitate
to contact me.
Yours very truly,
~
William J. Noth
WJN:dc
encl.
cc: / Barry Lindahl
Pam Myhre
DCORNELL\41 054611 II 0422066
WISHARO& BAllY-I8B8,GUERNSEY& BAllY-1893, BAllY& STIPP -1901,STIPP. PERRY. BANNISTER & STARlINGER -1914, BANNl""R. CARPENTER.
AHLERS & COONEY -1950,AHlERS. COONEY. DORWElLER.AllBEE. HAYNIE &S"'TH -1974,AHlERS. COONEY. DORWEllER. HAYNIE. SM,," & ALLBEE. P.C. -1990
NEWSPAPER'S COpy
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MA TIER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $185,000 URBAN RENEWAL TAX
INCREMENT REVENUE NOTES 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 , 2004, 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
$185,000 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 Urban Renewal
Plan for the Greater Downtown Urban Renewal District, including the funding of an
economic development grant to Lower Main Development, L.L.c. under the terms of a
Development Agreement dated April 19, 2004 between the City of Dubuque 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
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 ofIowa.
This notice is given by order of the Council of Dubuque, Iowa, as provided by
Section 403.9 of the Code ofIowa.
Dated this - day of
,2004.
City Clerk of Dubuque, "Iowa
(End of Notice)
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1""\
U
L
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, 10wa.
Date of Meeting:
,2004.
Time 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 above set out. The tentative agenda for said
meeting is as follows:
Not to exceed $185,000 Urban Renewal Tax Increment Revenue Notes.
Resolution frung date for a meeting on the proposition to issue.
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 rnles of said governmental body.
City Clerk, Dubuque, Iowa
,2004
The City Council of Dubuque, Iowa, met in session, in the
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at - o'clock _.M., on
the above date. There were present Mayor , in the chair,
and the following named Council Members:
Absent:
*******
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Council Member Patrici a Cl i ne introduced the following Resolution
entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION
OF THE ISSUANCE OF NOT TO EXCEED $185,000 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 - - Dan Nicholson seconded the motion to adopt. The roll was
called and the vote was,
AYES: Buol, Cline, Connors. Duggan. Markham.
Michalski. Nicholson
NA ì'S: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION No. 186-04
RESOLUTION FIXING DATE FOR A MEETING ON THE
PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $185,000
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 $185,000, as authorized by Section 403.9 of the Code onowa, 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 beissued, 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 Bì' THE CIIT COUNCIL OF THE
CIIT OF DUBUQUE, IOWA:
-2-
Section 1. That this Council meet in the Auditorium,Camegie-Stout Public
Library, Dubuque, Iowa, at 6: 30 o'clock P..M., on the 17th day of
May ,2004, for the purpose of taking action on the matter of the issuance
of not to exceed $185,000 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 onowa and the Urban Renewal Plan for the Greater Downtown Urban Renewal
District, including the funding of an economic development grant to Lower Main
Development, LL.C. under the terms of a Development Agreement dated April 19, 2004
between the City of Dubuque 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
pub1ipation 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:
-3-
"
NOTICE OF MEETING OF THE COUNCIL OF THE CIIT OF
DUBUQUE, IOWA, ON THE MA TIER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $185,000 URBAN RENEWAL TAX
INCREMENT REVENUE NOTES OF SAID CIIT, 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 17th day of May ,2004, at 6: 30 o'clock
P.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
$185,000 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 Urban Renewal
Plan for the Greater Downtown Urban Renewal District, including the funding of an
economic development grant to Lower Main Development, LLC. under the terms of a
Development Agreement dated April 19, 2004 between the City of Dubuque and said
developer.
At the above meeting the Council shall receive oral or written objections fTom 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 adjourmnent 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
therefTom shall be held in accordance with and governed by the provisions of Section
403.9 of the Code onowa.
This notice is given by order of the Council of Dubuque, Iowa, as provided by
Section 403.9 of the Code onowa.
Dated this .7th. day of May
.2004.
Jeanne F. Schneider,
City Clerk of Dubuque, Iowa
(End of Notice)
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, .'
PASSED AND APPROVED this 3rd day of May, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk:
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
day of , 2004.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL\41 05501111 0422066
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L
CIG-18
STATE OF IOWA)
) SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certifY that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of
said City, I have caused a
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $185,000 URBAN RENEWAL TAX
INCREMENT REVENUE NOTES OF SAID CITY, AND THE HEARING
ON THE ISSUANCE THEREOF
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for more
than two years and which has had for more than two years a bona fide paid circulation
recoguized by the postal laws of the United States, and has a general circulation in the
City, and that said Notice was published in said newspaper in all of the issues thereof
published and circulated on the following date:
,2004
WITNESS my official signature at Dubuque, Iowa, this
,2004.
day of
City Clerk
(SEAL)
DCORNELLl41 054811 11 0422066
C~~l ,:TE AND RETURN TO
MR. NOTH
CIG-18
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE)
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of
said City, I have caused a
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MA TIER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $185,000 URBAN RENEWAL TAX
INCREMENT REVENUE NOTES OF SAID CITY, AND THE HEARING
ON THE ISSUANCE THEREOF
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for more
than two years and which has had for more than two years a bona fide paid circulation
recognized by the postal laws of the United States, and has a general circulation in the
City, and that said Notice was published in said newspaper in all of the issues thereof
published and circulated on the following date:
,2004
WITNESS my official signature at Dubuque, Iowa, this
,2004.
day of
City Clerk
(SEAL)
DCORNELL\41 054811 II 0422066