Historic Pres Loan $200,000 Fun
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MEMORANDUM
':, '
December 14,2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Historic Preservation Revolving Loan Fund - $200,000 General Obligation
Capital Loan Note
In 2001 the City Council created the Historic Preservation Revolving Loan Fund,
approved the program guidelines recommended by the Historic Preservation
Commission, and allocated $200,000 in Urban Development Action Grant (UDAG)
funds. The City Council challenged the Historic Preservation Commission to raise an
additional $200,000 to equal the $400,000 allocation they had recommended to the City
Council.
The purpose of the Historic Preservation Revolving Loan Fund is to support historic
preservation in the four primarily residential historic districts - Cathedral, Jackson Park,
Langworthy and West 11th Street - as a complement to the Downtown Rehabilitation
Loan Program available for the Old Main Historic District, which is primarily commercial.
Planning Services Manager Laura Carstens recommends approval of an offer by
Premier Bank to provide $200,000 to the City of Dubuque for 10 years, interest free, for
the Historic Preservation Revolving Loan Fund.
This offer would be financed with a $200,000 General Obligation Capital Loan Note.
When the 10 years are up and the repayment is due to Premier Bank, it would be paid
back from the loan repayments (and 20% of the original $200,000 in UDAG money to
cover any delinquencies). The $200,000 General Obligation Capital Loan Note is the
security being required by the bank in case not enough remains after delinquencies to
pay the $200,000 obligation.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
l1' L"
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I llê . ~d) : 1~ " -
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Laura Carstens, Planning Services Manager
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
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:
$200,000 General Obligation Capital Loan Notes
Public hearing on the authorization of a Loan Agreement and the
issuance of Notes to evidence the obligation of the City thereunder.
Resolution instituting proceedings to take additional action.
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
,2004
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
the following named Council Members:
session, in the
o'clock _.M.,
, in the chair, and
Absent:
********
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The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of the authorization of a Loan Agreement and the issuance of
$200,000 General Obligation Capital Loan Notes, in order to provide funds to pay costs
of funding the City's Historic Preservation Revolving Loan Fund and the making ofloans
to property owners in designated historic preservation districts or who own a City
designated landmark for exterior rehabilitation projects, a general corporate purpose, and
that notice of the proposed action by the Council to institute proceedings for the
authorization of the Loan Agreement and the issuance of the Notes and the right to
petition for an election, had been published pursuant to the provisions of Sections 384.24
and 384.26(5) ofthe City Code ofIowa, as amended.
The Mayor then asked the Clerk whether any petition had been filed in the Clerk's
Office, as contemplated in Section 384.26 of the City Code ofIowa, and the Clerk
reported that no such petition had been filed, requiring that the question of issuing the
notes be submitted to the qualified electors of the City.
Whereupon, the Mayor declared the hearing on the authorization of entering into a
loan agreement and the issuance of notes to be closed.
Whereupon, Council Member introduced and
delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION
INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE
AUTHORIZATION OF A LOAN AGREEMENT AND THE ISSUANCE OF $200,000
GENERAL OBLIGATION CAPITAL LOAN NOTES" and moved:
0
0
that the Resolution be adopted.
ADJOURN and defer action on the Resolution and the proposal to
institute proceedings to the meeting to be held at o'clock
_.M. on the day of , 2004, at this
place.
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Council Member
called and the vote was,
Cline
seconded the motion. The roll was
AYES:
Buol, Cline, Connors, Duggan,
Markham, Michalski, Nicholson
NAYS:
None
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 485-04
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE AUTHORIZATION OF
A LOAN AGREEMENT AND THE ISSUANCE OF
$200,000 GENERAL OBLIGATION CAPITAL LOAN
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
authorization of a Loan Agreement and the issuance of $200,000 General Obligation
Capital Loan Notes, for a general corporate purpose, for the purpose of paying costs of
funding the City's Historic Preservation Revolving Loan Fund and the making ofloans to
property owners in designated historic preservation districts or who own a City designated
landmark for exterior rehabilitation projects, and no petition was filed calling for a
referendum thereon. 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 I. That this Council does hereby institute proceedings and take additional
action for the authorization of a Loan Agreement and issuance in the manner required by
law of $200,000 General Obligation Capital Loan Notes to evidence the obligation
thereof for the foregoing general corporate purpose.
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PASSED AND APPROVED this 20th day of December
,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 atthe 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
DCORNELLI43] 073.IIWPII0422069
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(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body:
The City Council of Dubuque, Iowa.
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:
$200,000 General Obligation Capital Loan Note
$
Resolution approving and authorizing a form of Loan Agreement and
authorizing and providing for the issuance of a Capital Loan Note and levying a
tax to pay the Note.
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
,2004
session, in the
o'clock _.M.,
, in the
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
chair, and the following named Council Members:
Absent:
*******
Council Member Michalski introduced the
following Resolution entitled "RESOLUTION APPROVING AND AUTHORIZING A
FORM OF LOAN AGREEMENT AND AUTHORIZING AND PROVIDING FOR THE
ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL LOAN NOTE, AND
LEVYING A TAX TO PAY THE NOTE" and moved that it be adopted. Council
Member Cl ine seconded the motion to adopt, and the
roll being called thereon, the vote was as follows:
AYES:
Buol, Cline, Connors, Markham,
Mickalski, Nicholson, Duggan
NAYS:
None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
RESOLUTION NO. 486-04
RESOLUTION APPROVING AND AUTHORIZING A FORM OF
LOAN AGREEMENT AND AUTHORIZING AND PROVIDING FOR
THE ISSUANCE OF A $200,000 GENERAL OBLIGATION CAPITAL
LOAN NOTE, AND LEVYING A TAX TO PAY THE NOTE
WHEREAS, the Issuer is duly incorporated, organized and exists under and by
virtue of the laws and Constitution of the State ofIowa; and
WHEREAS, the Issuer is in need of funds to pay costs of funding the City's
Historic Preservation Revolving Loan Fund and the making ofIoans to property owners
in designated historic preservation districts or who own a City designated landmark for
exterior rehabilitation projects, a general corporate purpose, and it is deemed necessary
and advisable that its General Obligation Capital Loan Note in the amount of $200,000
be issued for said purpose; and
WHEREAS, the City has a population of more than 5,000 but not more than
75,000; and
WHEREAS, pursuant to notice published as required by Sections 384.24,
384.24A, 384.25 and 384.26 of said Code, the Council of the City has held public
meeting and hearing upon the proposal to institute proceedings for the authorization to
enter into a loan agreement and the issuance of Notes for general corporate purposes in
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the amounts as above set forth, and, no petition for referendum having been received, the
Council is therefore now authorized to proceed with the issuance thereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section]. Definitions. The following terms shall have the following meanings in
this Resolution unless the text expressly or by necessary implication requires otherwise:
0
"Issuer" and "City" shall mean the City of Dubuque, Iowa.
0 "Loan Agreement" shall mean a Loan Agreement between the Issuer
and the Original Purchaser in substantially the form attached to and approved by
this Resolution.
0 "Note Fund" shall mean the fund required to be established by
Section 4 of this Resolution.
0 "Notes" or "Note" shall mean the $200,000 General Obligation
Capital Loan Note, in substantially the form attached to and authorized to be
issued by this Resolution.
0
"Original Purchaser" shall mean Premier Bank, Dubuque, Iowa.
0 "Paying Agent" shall mean the City Treasurer, or such successor as
may be approved by Issuer as provided herein and who shall carry out the duties
prescribed herein as Issuer's agent to provide for the payment of principal of the
Notes as the same shall become due.
0 "Project" shall mean the costs of funding the City's Historic
Preservation Revolving Loan Fund and the making ofIoans to property owners in
designated historic preservation districts or who own a City designated landmark
for exterior rehabilitation projects.
0 "Project Fund" shall mean the fund required to be established by this
Resolution for the deposit of the proceeds of the Notes.
0 "Registrar" shall mean the City Treasurer of Dubuque, Iowa, or such
successor as may be approved by Issuer as provided herein and who shall carry out
the duties prescribed herein with respect to maintaining a register of the owners of
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the Notes. Unless otherwise specified, the Registrar shall also act as Transfer
Agent for the Notes.
0
the Notes.
"Resolution" shall mean this resolution authorizing the issuance of
0 "Treasurer" shall mean the City Treasurer or such other officer as
shall succeed to the same duties and responsibilities with respect to the recording
and payment of the Notes issued hereunder.
Section 2. Loan Agreement and Note. The forms of Loan Agreement and Note in
substantially the form attached to this Resolution are hereby approved and are authorized
to be executed and issued on behalf of the Issuer by the Mayor and attested by the City
Clerk. Upon execution, the Loan Agreement and Note shall be delivered to the Original
Purchaser in exchange for the principal amount thereof.
Section 3. Levv and Certification of Annual Tax; Other Funds to be Used.
(a) Levv of Annual Tax. That for the purpose of providing funds to pay
the principal of the Notes hereinafter authorized to be issued, there shall be levied
in the Debt Service Fund for each future year the following direct annual tax on all
of the taxable property in Dubuque, Iowa, to-wit:
AMŒJNT
FISCAL YEAR (JULY I TO JUNE 30)
YEAR OF COLLECTION
$200,000
2014/2015
(NOTE: For example the levy to be made and certified against the taxable
valuations of January I, 2004, will be collected during the fiscal year commencing
July I, 2005).
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(b) Resolution to be Filed With CountV Auditor. A certified copy of this
Resolution shall be filed with the County Auditor of Dubuque County, Iowa, and
the Auditor is hereby instructed in and for each of the years as provided, to levy
and assess the tax hereby authorized in Section 3 of this Resolution, in like manner
as other taxes are levied and assessed, and such taxes so levied in and for each of
the years aforesaid be collected in like manner as other taxes of the City are
collected, and when collected be used for the purpose of paying principal on said
Notes issued in anticipation of the tax, and for no other purpose whatsoever.
(c) Additional CitV Funds Available. Principal coming due at anytime
when the proceeds of said tax on hand shall be insufficient to pay the same shall
be promptly paid when due tfom current funds of the City available for that
purpose and reimbursement shall be made tfom such special fund in the amounts
thus advanced.
Section 4. Note Fund. Said tax shall be assessed and collected each year at the
same time and in the same manner as, and in addition to, all other taxes in and for the
City, and when collected they shall be converted into a special fund within the Debt
Service Fund to be known as the "GENERAL OBLIGATION CAPITAL LOAN NOTE
FUND 2004 No. ONE" (the "Note Fund"), which is hereby pledged for and shall be used
only for the payment of the principal on the Notes hereinafter authorized to be issued.
Section 5. Application of Note Proceeds. Proceeds of the Notes shall be credited
to the Project Fund and expended only for the purposes of the Project. Any amounts on
hand in the Project Fund shall be available for the payment of the principal on the Notes
at any time that other funds shall be insufficient to the purpose, in which event such funds
shall be repaid to the Project Fund at the earliest opportunity. Any balance on hand in the
Project Fund and not immediately required for its purposes may be invested not
inconsistent with limitations provided by law or this Resolution.
Section 6. Investments of Note Fund Proceeds. All moneys held in the Note Fund
and the Project Fund, shall be invested in investments permitted by Chapter 12B, Code of
Iowa, 2003 (formerly Chapter 452, Code ofIowa, as amended) or deposited in financial
institutions which are members of the Federal Deposit Insurance Corporation and the
deposits in which are insured thereby and all such deposits exceeding the maximum
amount insured tfom time to time by FDIC or its equivalent successor in anyone
financial institution shall be continuously secured in compliance with the State Sinking
Fund provided under Chapter 12C of the Code ofIowa, 2003, as amended or otherwise
by a valid pledge of direct obligations ofthe United States Government having an
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equivalent market value. All such interim investments shall mature before the date on
which the moneys are required for payment of principal of the Notes as herein provided.
Section 7. Note Details. Execution and Redemption.
(a) Note Details. The Loan Agreement and Note of the City in the principal
amount of $200,000 shall be issued pursuant to the provisions of Section 384.24A
and 384.26(5) of the City Code ofIowa for the aforesaid purposes. The Note and
Loan Agreement shall be executed by the manual signature of the Mayor and
attested by the manual signature of the City Clerk, and impressed with the seal of
the City. The Note shall be fully registered as provided in this Resolution;
principal shall be payable at the office of the Paying Agent by mailing of a check
to the registered owner of the Note. The Note shall be issued as a single Note in
the form attached hereto, in the principal amount described herein, and shall
mature on January I, 2015 (or on such later date as may be acceptable to the
Original Purchaser and set forth therein). No interest shall accrue on the Note or
the Loan Agreement.
(b) Redemption. The Note is subject to redemption prior to maturity by
the Issuer and may be paid before maturity on any date, ftom any funds regardless
of source, in whole or ftom time to time in part, as provided in the Note. The
terms of redemption shall be par.
Section 8. Registration of Notes; Appointment of Registrar: Transfer: Ownership;
Deliverv; and Cancellation.
(a) Registration. The ownership of Notes may be transferred only by the
making of an entry upon the books kept for the registration and transfer of
ownership of the Notes, and in no other way. The City Treasurer is hereby
appointed as Registrar under the terms of this Resolution. Registrar shall maintain
the books of the Issuer for the registration of ownership ofthe Notes for the
payment of principal of the Notes as provided in this Resolution. All Notes shall
be negotiable as provided in Article 8 of the Uniform Commercial Code subject to
the provisions for registration and transfer contained in the Notes and in this
Resolution.
(b) Transfer. The ownership of any Note may be transferred only upon the
Registration Books kept for the registration and transfer of Notes and only upon
surrender thereof at the office of the Registrar together with an assignment duly
executed by the holder or his duly authorized attorney in fact in such form as shall
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be satisfactory to the Registrar, along with the address and social security number
or federal employer identification number of such transferee (or, if registration is
to be made in the name ofmuItiple individuals, of all such transferees). In the
event that the address of the registered owner of a Note (other than a registered
owner which is the nominee of the broker or dealer in question) is that of a broker
or dealer, there must be disclosed on the Registration Books the information
pertaining to the registered owner required above. Upon the transfer of any such
Note, a new fully registered Note, of any denomination or denominations
permitted by this Resolution in aggregate principal amount equal to the unmatured
and unredeemed principal amount of such transferred fully registered Note, and
maturing on the same date or dates shall be delivered by the Registrar.
(c) Registration of Transferred Notes. In all cases of the transfer of the
Notes, the Registrar shall register, at the earliest practicable time, on the
Registration Books, the Notes, in accordance with the provisions of this
Resolution.
(d) Ownership. As to any Note, the person in whose name the ownership
of the same shall be registered on the Registration Books of the Registrar shall be
deemed and regarded as the absolute owner thereof for all purposes, and payment
of or on account of the principal of any such Notes shall be made only to or upon
the order of the registered owner thereof or his legal representative. All such
payments shall be valid and effectual to satisfY and discharge the liability upon
such Note, to the extent of the sum or sums so paid.
(e) Cancellation. All Notes which have been redeemed shall not be
reissued but shall be cancelled by the Registrar. All Notes which are cancelled by
the Registrar shall be destroyed and a certificate ofthe destruction thereof shall be
furnished promptly to the Issuer; provided that ifthe Issuer shall so direct, the
Registrar shall forward the cancelled Notes to the Issuer.
(f) Non-Presentment of Notes. In the event any payment check
representing payment of principal of the Notes is returned to the Paying Agent or
if any note is not presented for payment of principal at the maturity or redemption
date, if funds sufficient to pay such principal of Notes shall have been made
available to the Paying Agent for the benefit of the owner thereof, all liability of
the Issuer to the owner thereof for such payment of such Notes shall forthwith
cease, terminate and be completely discharged, and thereupon it shall be the duty
of the Paying Agent to hold such funds, without liability for interest thereon, for
the benefit of the owner of such Notes who shall thereafter be restricted
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exclusively to such funds for any claim of whatever nature on his part under this
Resolution or on, or with respect to, such interest or Notes. The Paying Agent's
obligation to hold such funds shall continue for a period equal to two years and six
months following the date on which such principal became due, whether at
maturity, or at the date fixed for redemption thereof, or otherwise, at which time
the Paying Agent, shall surrender any remaining funds so held to the Issuer,
whereupon any claim under this Resolution by the Owners of such interest or
Notes of whatever nature shall be made upon the Issuer.
Section 9. Record Date. Payments of principal, otherwise than upon full
redemption, made in respect of any Note, shall be made to the registered holder thereof or
to their designated agent as the same appear on the books of the Registrar on the 15th day
preceding the payment date. All such payments shall fully discharge the obligations of
the Issuer in respect of such Notes to the extent of the payments so made. Final payment
of principal shall only be made upon surrender of the Note to the Paying Agent.
Section 10. Right to Name Substitute Paying Agent or Registrar. Issuer reserves
the right to name a substitute, successor Registrar or Paying Agent upon giving prompt
written notice to each registered noteholder.
Section I I. Resolution a Contract. The provisions of this Resolution shall
constitute a contract between the Issuer and the holder or holders of the Note, and after
the issuance ofthe Note no change, variation or alteration of any kind in the provisions of
this Resolution shall be made in any manner, except with the consent of the Original
Purchaser or other registered holder of the Note, until such time as the Note shall have
been satisfied and discharged as provided in this Resolution.
Section 12. Severabilitv. If any section, paragraph, or provision of this
Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph or provision shall not affect any of the
remaining provisions.
Section 13. Repeal of Conflicting Ordinances or Resolutions and Effective Date.
All other ordinances, resolutions and orders, or parts thereof, in conflict with the
provisions of this Resolution are, to the extent of such conflict, hereby repealed; and this
Resolution shall be in effect ftom and after its adoption.
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2004.
PASSED AND APPROVED this 20th day of December, 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 ofIowa, 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\432523. I\WP\I 0422069
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