Loading...
Urban Renewal General Obligation Bonds_$5,575,000Masterpiece on the Mississippi April 5, 2012 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque bierd All-America City 1 2007 SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds for Greater Downtown and Dubuque Industrial Center Improvements Budget Director Jennifer Larson recommends that a public hearing be set for May 7, 2012 on the proposition of selling not to exceed $5,575,000 in 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 Plans for Greater Downtown and Dubuque Industrial Center Urban Renewal Areas, including those costs associated with the expansion of Dubuque Industrial Center West to farmland known as South Siegert Farm and costs associated with Washington Neighborhood Subarea (Includes BluffNVest Locust) Building Incentive & Rehabilitation Program. This program provides low- interest loans and grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District Washington Neighborhood Subarea. 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. To qualify, a petition must be signed by eligible electors equal to at least ten percent of the number who voted in the last regular municipal election (but not less than ten persons). I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM /jml Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Jennifer Larson, Budget Director Kenneth TeKippe, Finance Director Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director Dubuque bierd All-America City 1 2007 SUBJECT: Proceedings to Set Public Hearing on the Issuance of Not to Exceed $5,575,000 General Obligation Urban Renewal Bonds for Greater Downtown and Dubuque Industrial Center Improvements DATE: April 5, 2012 INTRODUCTION The purpose of this memorandum is to recommend the setting of a public hearing on the proposal to issue 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 Restated Urban Renewal Plans of the Greater Downtown and Dubuque Industrial Center Urban Renewal Areas. A letter from attorney Mark Cory 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 expansion of Dubuque Industrial Center West to farmland known as South Siegert Farm. The project includes temporary and permanent erosion control measures; grading; deconstruction and demolition of existing structures; storm sewer and sanitary sewer. • $750,000 is intended to provide funds to pay costs associated with Washington Neighborhood Subarea (Includes BluffNVest Locust) Building Incentive & Rehabilitation Program. This program provides low- interest loans and grants for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District Washington Neighborhood Subarea. Tax increment proceeds and loan repayments are utilized to capitalize the pool of funds for these loans. The program will also provide grants of up to $10,000 for each new housing unit created in this district. The pool of funds would be made available to complete financing packages for the immediate creation of market -rate downtown rental and owner - occupied residential units within the Greater Downtown Urban Renewal District Washington Neighborhood Subarea. Market -rate residential units include rental units which are not income restricted or rental units that are restricted to 80% of median income and less for no more than five years (units must not be restricted to 60% of median income or less, or any other restriction under 80 %) and owner occupied units. • $95,000 is intended to provide funds for bond issuance costs and • $430,000 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 and Dubuque Industrial Center Urban Renewal Areas. 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. To qualify, a petition must be signed by eligible electors equal to at least ten percent of the number who voted at the last regular municipal election (but not less than ten persons). 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 fixing the date of May 7, 2012 for a public hearing on the proposition of selling not to exceed $5,575,000 in General Obligation Urban Renewal Bonds for general corporate purpose and providing publication of notice. 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 WWW.AHLERSLAW.COM R. Mark Cory rcory ©ahlerslaw.com April 5, 2012 Mr. Kevin Firnstahl City Clerk City of Dubuque 50 West 13th Street Dubuque, Iowa 52001 -4864 RE: FY13 General Obligation Bond Proposals Dear Mr. Firnstahl: Direct Dial: (515)246 -0378 With this letter I am enclosing suggested Council proceedings to set hearings on the bond proposals required to finance the projects listed on the revised FY13 Bond List you provided to me recently. Because a variety of projects are contemplated, and because the publication requirements differ, I will address each of the proposals separately below. Each of the projects identified on the FY13 Bond List has been allocated to one of five bond proposals. To enable you to determine which projects are included in a particular proposal, I am enclosing a marked excerpt from the FY13 Bond List and an attached summary sheet indicating which projects are included under a particular bond proposal. The summary also illustrates how the hearing amounts were determined (the estimated costs of issuance amounts have been added for hearing purposes). The first Council resolution in the proceedings approves the summary and elects the proposed classifications and hearing procedures indicated, as permitted under Section 384.28 of the Iowa Code. If you have any questions or would like to revise any of these proposed classifications prior to Council action, please let me know. April 5, 2012 Page 2 Not to exceed $8,650,000 General Obligation Bonds (Misc. Essential Corporate Purpose Projects) Notice of this 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. 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. Not to exceed $5,575,000 General Obligation Bonds - (Urban Renewal Projects) Not to exceed $700,000 General Obligation Bonds (General Corporate Purposes) Not to exceed $475,000 General Obligation Bonds (General Corporate Purposes) Not to exceed $600,000 General Obligation Bonds (General Corporate Purposes) In each case, notice of the 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 ten clear days before the date of the public meeting on the issuance of the Bonds. 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. At any time before the date of the hearing, a petition may be filed with the City Clerk requesting that the issuance of bonds for the indicated purposes be submitted to an election. To qualify, a petition must be signed by eligible electors equal to at least ten percent of the number who voted in the last regular municipal election (but not less than ten persons). April 5, 2012 Page 3 Separate copies of the notices of hearing are enclosed to be completed by the City Clerk and delivered to the newspaper for publication purposes. In each instance, we would suggest that a printer's proof of the notice be obtained and reviewed prior to publication to ensure accuracy. As always, we would appreciate having certified copies of the enclosed proceedings returned to us following the Council's action for our transcript of the action taken, as well as copies of the publisher's affidavits with respect to the publication of the several notices involved once they become available. We will separately forward proceedings for the date of the public hearings. Please let me know once that date has been scheduled. If you have any questions concerning the enclosed proceedings, please don't hesitate to contact me. Very truly yours, R. Mark Cory RMC:dc encl. cc: Jenny Larson (w /encl.) Tionna Pooler (w /encl.) Ken TeKippe (w /encl.) 00859216 -1 \10422 -134 I C r JJwd (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: April 16, 2012. 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 $5,575,000 General Obligation Bonds. • Resolution fixing date for a meeting on the proposition to issue. Such additional matters as are set forth on the additional 5 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. April 16, 2012 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 Mayor Pro -Tem Ric W. Jones in the chair, and the following named Council Members: _Karla Braig, Joyce Connors, Kevin Lynch, David Resnick, Lynn Sutton Absent: Mayor Roy D. Buol 1 Council Member Kevin Lynch introduced the following Resolution entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS (FOR ESSENTIAL CORPORATE PURPOSES) OF THE CITY OF DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF NOTICE THEREOF ", and moved that the same be adopted. Council Member David Resnick seconded the motion to adopt. The roll was called and the vote was, AYES: Lynch Resnick, Sutton, Braig, Connors, Jones NAYS: Whereupon, the Mayor declared the resolution duly adopted as follows: RESOLUTION NO. 97-12 RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS (FOR ESSENTIAL CORPORATE PURPOSES) 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 issue General Obligation Bonds, to the amount of not to exceed $5,575,000, as authorized by Sections 384.24(3)(q) and 403.12, of the City Code of Iowa, for the purpose of providing funds to pay costs of carrying out essential corporate purpose (urban renewal) projects as hereinafter described; and WHEREAS, before the Bonds may be issued, it is necessary to comply with the provisions of the Code, and to publish a notice of the proposal to issue such Bonds and of the time and place of the meeting at which the Council proposes to take action for the issuance of the Bonds and to receive oral and /or written objections from any resident or property owner of the City to such action, and to publish a notice of the proposal to issue such Bonds and the right to petition for an election. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: 2 Section 1. That this Council meet in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the 7th day of May, 2012, for the purpose of taking action on the matter of the issuance of not to exceed $5,575,000 General Obligation Bonds, for essential corporate purposes of the City, the proceeds of which Bonds will be used to provide funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans for the Dubuque Industrial Center West Economic Development District and the Greater Downtown Urban Renewal District, including those costs associated with grading, road construction, bridge, utilities extensions and development of a recreation area on the South Siegert Farm area of DICW and the funding of development incentives in the Washington Neighborhood Subarea of the Greater Downtown Urban Renewal District. Section 2. To the extent any of the projects or activities described in this resolution may be reasonably construed to be included in more than one classification under Division III of the City Code of Iowa, the Council hereby elects the "essential corporate purpose" classification and procedure with respect to each such project or activity, pursuant to Section 384.28 of the City Code of Iowa. Section 3. That the Clerk is hereby directed to cause at least one publication to be made of a notice of the meeting in a legal newspaper, printed wholly in the English language, published at least once weekly, and having general circulation in the City. The publication to be not less than ten clear days before the date of the public meeting on the issuance of the Bonds. Section 4. The notice of the proposed action to issue the Bonds shall be in substantially the following form: 3 NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS (FOR ESSENTIAL CORPORATE PURPOSES) OF THE CITY, AND THE HEARING ON THE ISSUANCE THEREOF PUBLIC NOTICE is hereby given that the City of Dubuque, Iowa, will hold a public hearing on the 7th day of May, 2012, at 6:30 o'clock P.M., in the Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, at which meeting the Council proposes to take additional action for the issuance of not to exceed $5,575,000 General Obligation Bonds, for essential corporate purposes of said City, in order to provide funds to pay costs of aiding in the planning, undertaking and carrying out of urban renewal project activities under Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plans for the Dubuque Industrial Center West Economic Development District and the Greater Downtown Urban Renewal District, including those costs associated with grading, road construction, bridge, utilities extensions and development of a recreation area on the South Siegert Farm area of DICW and the funding of development incentives in the Washington Neighborhood Subarea of the Greater Downtown Urban Renewal District. At any time before the date of the meeting, a petition, asking that the question of issuing such Bonds be submitted to the legal voters of the City, may be filed with the City Clerk of the City in the manner provided by Section 362.4 of the Code of Iowa, pursuant to the provisions of Section 384.24(3)(q) 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 384.24(3)(q) and 403.12 of the City Code of Iowa. Dated this day of , 2012. City Clerk, City of Dubuque, Iowa (End of Notice) PASSED AND APPROVED this 16th day of April, 2012. ATTEST: 5 Mayor Pro -Tem STATE OF IOWA CERTIFICATE ) SS COUNTY OF DUBUQUE ) I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of the City showing proceedings of the City Council, and the same is a true and complete copy of the action taken by the Council with respect to the 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 the 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 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 the 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 the City hereto affixed this 16th day of April, 2012. City . lerk, City of Dubuque, tate of Iowa (SEAL) 00858847 -1 \10422 -134 CERTIFICATE STATE OF IOWA ) SS COUNTY OF DUBUQUE OIT A 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 the City, I have caused a NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED ISSUANCE OF NOT TO EXCEED $5,575,000 GENERAL OBLIGATION BONDS OF THE CITY OF DUBUQUE, 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 the Notice was published in all of the issues thereof published and circulated on the following date: April 20, , 2012. ITNESS my official signature at Dubuque, Iowa, this (SEAL) 00858844 -1 \10422 -134 , 2012. day of City Cl r City of Dubuqu-, owa NOTICEIOF MEETING - graging;' , foa'tl -` - co? OF THE CITY - , structwn', , , ''bridge, COUNCIL'OF(THE ' t'itili es:eztensibns; d °.; ' 'CITY -OF. WJBUQUg,� .r ecrea ewes o a'. IOWA, ON THE f h, uth Ion a ea op ,- MATTER OFTHE ' 1PROP,OSELPISSUANCCEFs.i area of DIM' and the ' I OFrNOT>TO EXCEEDIt , ':Ming- of ' develop- - .- S5,575,000 GENERAL : , Inent incentives in the OBLIGATION BONDS, Washington'.; Neighbor- _ r " (FOR ESSENTIAL ,,wg i ea w fg f . CORPORATE ' PURPOSES)'OFTHE ,urbarP;ReneWal,Districtit CITY;,AND THE .. ' A aily.time befq,e'the - HEARING ON THE ldete.orthe meetina , ISSUANCE,THEREOF Petition; . askingi'�'tha PUBLIC .NOTICE' is „_the question - of'issuing. hereby_ given that theg}�, suoh° ''Bonds` -`"'be _City of Dubuque,' levy submitted to.,the,JegA: voters will: hold. a. public ,of the'City, maj!;,, hearing on the.7th day 'be ,filed:.with' thet,City 'of May, 2012, at ,6:30. Clerk. of - the�City rnfthe o'clock • P.M-, ta -•in, e -• manners. ;p1'ovided,,;wby. ' Historic.., • Federal " Seotion' 362.4' of 'the:' .• Building , 350 West '6th C,od lof.lowa, pursuant_' ' Street, Dubuque, .Iowa,;',:t clhey3provisions),of at whicF� nleetingythe,? Sectio' �84.24(3)(q), , Council , proposes'' ‘to ;' ,take additional' action - .'This'notrce =is- givdribyj. -for-the issuance of not order- of the- ' City'` a.to exceed $5,575,000 -' Council of the City' of," General. ' „Obligation ,' Dubuque, ',Iowa, as"', Bonds, ,for, .essential Provided ' by Section corporate, purposes of .384.24(3)(8) and 403,12 - said, City. 'in .order, *to: -- 01, ,the„ City, Code of-, provide funds to? pay'., Igwg,;' -_ costs of aiding in 'the ' Any, visual' or hearing -,_ planning; undertaking'.,''e'npal red persons need- ' and.: carrying out of wing special' assistance urban- renewal° project, or�persons with special =:_activities - under . accessibility : needs Chapter 403', of the should contact .theCity' Code of Iowa, and the Clerk's Office at (563) Arrlended and Restated 589-4120 or.TTY•(563)- 'Urban Renewal Plans 690 -6678 at least 48- : for the ;Dubuque."' hours. prior `to the Industrial Center West -' - meeting. - ` ' Economic,Development ,' °,Fated this 20th clay of, •Districtand. he,Greater :! IAPrry6 012. , •- • - -Downtown Urban ,; KevinS.',F.irnstahr .i.' ;.:Renewal District'` City Clerk, city of P ;i 4udicig_ p5es Dubuque, Iowa :; _ :u.',. associated : , with f -it 4 /20', 'T STATE OF IOWA {SS: DUBUQUE COUNTY CERTIFICATION OF PUBLICATION I, Suzanne Pike, 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: April 20, 2012, and for which the charge is $29.26. 17-ox Subscribed to before me, a Notary Public in and for Dubuque County, Iowa, this 047/75' day of , 20 ' Notary Public in and for Dubuque County, Iowa. I MARY K. 4rai.7:3 rrF.l E°( cri !i t; =. Ccmrnisel:,rt Number 15;