General Obligation Urban Renewal Bonds $5MMasterpiece on the Mississippi
Dubuque
kard
All-America City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$5,000,000 General Obligation Urban Renewal Bonds for Greater
Downtown Improvements
DATE: November 28, 2011
Budget Director Jennifer Larson is recommending City Council approval of the
suggested proceedings for the public hearing on the issuance of General Obligation
Urban Renewal Bonds and approval of a "Resolution Instituting Proceedings to Take
Additional Action for the Issuance of Not to Exceed $5,000,000 General Obligation
Urban Renewal Bonds." The proceeds of which will be used to fund urban renewal
project activities under the authority of Chapter 403 of the Code of Iowa and the
Amended and Restate Urban Renewal Plan for Greater Downtown Urban Renewal
Area, including those costs associated with the construction of an intermodal
transportation center and the acquisition of real property for public or private
redevelopment. Although the City is selling General Obligation Bonds to support the
projects, repayments of the debt will be from tax increment revenues of the Greater
Downtown Urban Renewal Area. If no petition is submitted, the City Council may
approve the issuance of the bonds.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM /jml
Attachments
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Jenny Larson, Budget Director
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Budget Director
Dubuque
kard
All-America City
2007
SUBJECT: Proceedings for Public Hearing on the Issuance of Not to Exceed
$5,000,000 General Obligation Urban Renewal Bonds for Greater
Downtown Improvements
DATE: November 28, 2011
INTRODUCTION
The purpose of this memorandum is to provide the suggested proceedings for the public
hearing on the issuance of General Obligation Urban Renewal Bonds prepared by our
Bond Counsel and to present a resolution for City Council to adopt entitled "Resolution
Instituting Proceedings to Take Additional Action for the Issuance of Not to Exceed
$5,000,000 General Obligation Urban Renewal Bonds." The proceeds of the bonds will
be used to fund urban renewal project activities under the authority of Chapter 403 of
the Code of Iowa and the Amended and Restated Urban Renewal Plans of the Greater
Downtown Urban Renewal Area. A letter from attorney William Noth detailing
information on the bond hearing is enclosed.
DISCUSSION
Of the bond amount:
• $4,300,000 is intended to provide funds to pay costs associated with the
construction of an intermodal transportation center. The City has received a
State of Good Repairs grant for $8 million for the construction of the intermodal
transportation center which has a 30% local match requirement ($3.4 million).
The amount included in this borrowing for the intermodal transportation center is
$900,000 more than the required local match due to including a 25%
contingency in the project cost. In addition, the City has applied for a Transit
Investments for Greenhouse Gas and Energy Reduction (TIGGER) grant, Bus
Livability grant and Transportation Investment Generating Economic Recovery
(TIGER) grant for the remaining cost of the intermodal transportation center. The
intermodal transportation center will be a transit central hub for passenger rail,
buses and taxis and provide a parking structure with 253 -300 parking stalls. The
final design on the intermodal transportation center will be completed in early
2012, construction bids completed in the spring 2012, and start of construction in
summer 2012 with completion in summer 2013.
• $75,000 is intended to provide funds for bond issuance costs and
• $625,000 is intended to be a contingency for fluctuations in the bond market for
interest rates, bond issuance costs and change in project costs.
Although the City is selling General Obligation Bonds to support the projects,
repayments of the debt will be from tax increment revenues of the Greater Downtown
Urban Renewal Area.
The borrowing is subject to the "reverse referendum" procedures, under which petitions
may be filed prior to the hearing asking that the bond proposal be submitted to an
election. The proceedings have been prepared on the basis that no objections or
petitions calling for an election on the bond proposal will be filed with the City Clerk. If
there are objections, we will need to summarize them. The Mayor will then declare the
hearing on the issuance of said bonds closed. Immediately following, and assuming no
petitions have been filed, a resolution is to be introduced and adopted entitled
"Resolution Instituting Proceedings to Take Additional Action for the Issuance of Not to
Exceed $5,000,000 General Obligation Urban Renewal Bonds."
In the event the Council decides to abandon the proposal to issue said bonds, then the
form of resolution included in said proceeding should not be adopted. In this event, a
motion needs to be adopted to the effect that such bond proposal is abandoned.
Section 384.25 of the Code of Iowa provides that any resident or property owner of the
City may appeal the decision to take additional action to issue the bonds, to the District
Court of a county in which any part of the City is located, within 15 days after such
additional action is taken, but that the additional action is final and conclusive unless the
court finds that the Council exceeded its authority.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution instituting the
proceedings to take additional action.
JML
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth TeKippe, Finance Director
AHLERS &COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE: 515- 243 -7611
FAX: 515- 243 -2149
VWWV.AH LERSLAW. COM
William J. Noth
wnoth @ahlerslaw.com
November 28, 2011
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
RE: Not to exceed $5,000,000 General Obligation Bonds
Dear Ms. Larson:
Direct Dial:
(515)246 -0332
With this letter I am enclosing suggested proceedings to be acted upon by the City
Council on the date fixed for the hearing on the proposed issuance of the above General
Obligation Bonds.
This proposal is subject to the "reverse referendum" procedures, under which
petitions may be filed prior to the hearing asking that the bond proposal be submitted to
an election.
The proceedings assume that no petition has been received calling for an election
on the proposed action of the Council to issue bonds for the purposes described. At the
hearing, the Council should receive any oral or written objections to the proposal under
consideration. If no petition has been filed with respect to the proposal, and the Council
decides not to abandon the proposal to issue bonds for the purposes described, the
Council then should proceed to adopt the resolution that follows, instituting proceedings
to take additional action for the issuance of the bonds under consideration.
In the event the Council decides to abandon the proposal to issue the bonds, then
the form of resolution should not be adopted. We would suggest that, in this event, a
motion merely be adopted to the effect that the bond proposal is abandoned.
If a petition has been received with respect to the proposal and if the Council
decides not to abandon the proposal to issue said bonds for that purpose, a form of
resolution should be introduced and adopted to adjourn the matter to permit preparation
of the resolution to call an election.
WISHARD & BAILY - 1888; GUERNSEY & BAILY - 1893; BAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER,
November 28, 2011
Page 2
Please see that we are advised immediately if a petition is filed bearing signatures
of a sufficient number of eligible electors.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office. If you have any questions pertaining to the proceedings
enclosed or this letter, please do not hesitate to either write or call.
Very truly yours,
William J. Noth
WJN:dc
encl.
cc: Ken TeKippe (w /encl.)
Tionna Pooler (w /encl.)
00827359- 1110422 -130
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of the City of Dubuque, Iowa.
Date of Meeting: December 5, 2011
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 the
meeting is as follows:
Not to exceed $5,000,000 General Obligation Bonds
• Public hearing on the issuance.
• Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional 4 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 the governmental body.
f
`v7M%�i�_
City lerk, City of Dubuque, Iowa
December 5 ,2011
The City Council of the City 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 MayorRoy D. Buo 1 , in
the chair, and the following named Council Members:
Karla Rraig, JoycP Connors, Ric JonPs
David RPSnirk, Lynn Sutton
Absent: Kevin Lynch
1
The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of the issuance of not to exceed $5,000,000 General Obligation
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 Greater
Downtown Urban Renewal District, including those costs associated with the
construction of an intermodal transportation center, essential corporate purposes, and that
notice of the proposed action by the Council to institute proceedings for the issuance of
the Bonds, had been published pursuant to the provisions of Sections 384.24(q)(3) and
403.12 of the Code of Iowa, and the Clerk reported that no such petition had been filed,
requesting that the question of issuing the Bonds be submitted to the qualified electors of
the City.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the issuance of the Bonds. The Clerk advised the
Mayor and the Council that 0 written objections had been filed. The Mayor then
called for oral objections to the issuance of the Bonds and 0 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)
2
The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Br a i g 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 $5,000,000 GENERAL OBLIGATION BONDS ", and moved:
El
that the Resolution be adopted.
to ADJOURN and defer action on the Resolution and the proposal
to institute proceedings for the issuance of Bonds to the meeting to
be held at o'clock .M., on the day
of , 2011, at this place.
Council Member
called and the vote was,
seconded the motion. The roll was
AYES: Braig, Buol, Connors, Jones
NAYS:
Resnick, Sutton
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION NO. 412 -11
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE ISSUANCE OF NOT
TO EXCEED $5,000,000 GENERAL OBLIGATION
BONDS
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 $5,000,000 General Obligation Bonds, for the essential corporate
purposes of paying 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 construction of an intermodal
transportation center, and has considered the extent of objections received from residents
- 3 -
or property owners as to the proposed issuance of Bonds, and no petition was filed calling
for a referendum thereon; 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 take additional
action for the sale and issuance in the manner required by law of not to exceed
$5,000,000 General Obligation Bonds for the foregoing essential corporate purposes.
PASSED AND APPROVED this 5th day of December , 2011.
ATTEST:
4