Urban Renewal Tax Increment Revenue Bonds
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RESOLUTION NO. 125-99
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE
ISSUANCE OF $900,000 URBAN RENEWAL
TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 1999A, OF
THE CITY OF DUBUQUE, IOWA, AND PROVIDING
FOR THE SECURING OF SUCH BONDS FOR THE PURPOSE
OF CARRYING OUT AN URBAN RENEWAL PROJECT IN THE
AREA OF THE CITY OF DUBUQUE, IOWA DESIGNATED AS THE
DUBUQUE INDUSTRIAL CENTER/SOUTH ECONOMIC
DEVELOPMENT DISTRICT
WHEREAS, the City Council of the City of Dubuque, Iowa (the "City" or the
"Issuer") did heretofore adopt an Urban Renewal Plan by Resolution No. 141-97 of this
City Council approved on April 7, 1997 (the "Urban Renewal Plan"), under which plan
there is to be carried out urban renewal project activities in an area designated as the
Dubuque Industrial Center/South Economic Development District (the "Project Area");
and
WHEREAS, it is presently estimated that the costs of carrying out the purposes
and provisions of the Urban Renewal Plan for the Project Area, including the purpose set
forth in Section 3 hereof, exceed $900,000, and provisions must now be made by the City
to provide for the payment of such costs by the issuance of Bonds; and
WHEREAS, the City did, on November 3, 1997, adopt Ordinance No. 65-97, (the
"Ordinance"), under which the taxes levied on the taxable property in the Project Area
shall be divided, and a special fund created under the authority of Section 403.19(2) of
the Code of Iowa, as amended (which special fund is hereinafter referred to as the
"Technology Park Urban Renewal Tax Increment Revenue Fund" or "Revenue Fund")
which fund was created in order to pay the principal of and interest on loans, monies
advanced to or indebtedness whether funded, refunded, assumed, or otherwise, including
bonds issued under the authority of Section 403 .9( 1) of the Code of Iowa, as amended,
incurred by the City to finance or refinance in whole or in part urban renewal project
activities undertaken within the Project Area, and pursuant to which Ordinance such
Revenue Fund may be irrevocably pledged by the City for the payment of principal and
interest on such indebtedness; and
WHEREAS, the notice of intention of Issuer to take action for the issuance of not
to exceed $900,000 Urban Renewal Tax Increment Revenue Bonds has heretofore been
duly published and no objections to such proposed action have been filed and it is now
necessary and advisable that provisions be made for the issuance of Bonds to the amount
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of $900,000 pursuant to the provisions of Section 403 .9( 1) of the Code of Iowa, payable
from a portion of the income and proceeds of the Revenue Fund and other funds of the
City derived from or held in connection with the undertaking and carrying out of the
Urban Renewal Plan for the Project Area as described herein.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IN THE COUNTY OF DUBUQUE, STATE OF IOWA:
Section 1. Definitions. The following terms shall have the following meanings in
this Resolution unless the text expressly or by necessary implication requires otherwise:
. "Bonds" or "Bond" shall mean the $900,000 Urban Renewal Tax
Increment Revenue Bond, Taxable Series 1999A, authorized to be issued by this
Resolution;
. "Clerk" shall mean the City Clerk or such other officer of the
successor Governing Body as shall be charged with substantially the same duties
and responsibilities;
. "Corporate Seal" shall mean the official seal of Issuer adopted by the
Governing Body;
. "Developer" shall mean ADC Properties, L.c., an Iowa limited
liability company;
. "Development Agreement" shall mean the Development Agreement
dated as of November 16, 1998 by and among the City, the Developer and
Advanced Data-Comm, Inc., an Iowa corporation, as amended from time to time;
. "Development Property" shall mean that portion of the Project Area
conveyed by the City to the Developer under the terms of the Development
Agreement, upon which the Developer has covenanted to construct the Minimum
Improvements, being legally described as Lots 4 and 5, Block 2 of Dubuque
Technology Park, in the City of Dubuque, Dubuque County, Iowa;
. "Fiscal Year" shall mean the twelve-month period beginning on July
I of each year and ending on the last day of June of the following year, or any other
consecutive twelve-month period adopted by the Governing Body or by law as the
official accounting period of the Issuer;
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. "Governing Body" shall mean the City Council of the City, or its
successor in function with respect to the operation and control of the Project Area;
. "Independent Auditor" shall mean an independent firm of Certified
Public Accountants or the Auditor of State;
. "Issuer" and "City" shall mean the City of Dubuque, Iowa;
. "Minimum Improvements" shall mean the construction by the
Developer on the Development Property of an office building of not less than sixty
thousand (60,000) square feet of floor space along with necessary site work and
off-street parking, in accordance with the terms of the Development Agreement;
. "Original Purchaser" shall mean American Trust & Savings Bank,
Dubuque, Iowa, as the purchaser of the Bonds from Issuer at the time of their
original issuance;
. "Paying Agent" shall be 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 and
interest on the Bonds as the same shall become due;
. "Project Area" shall mean the Dubuque Industrial Center/South
Economic Development District of the Issuer, as amended, from time to time as
permitted by Section 17(d).
. "Project Fund" or "Construction Account" shall mean the fund
required to be established by this Resolution for the deposit of the proceeds of the
Bonds;
. "Registrar" shall be 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
the Bonds. Unless otherwise specified, the Registrar shall also act as Transfer
Agent for the Bonds;
. "Tax Increments" means the property tax revenues divided and made
available to the City for deposit in the Technology Park Urban Renewal Tax
Increment Revenue Fund under the provisions of Section 403.19 of the Code and
the Ordinance;
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. "Technology Park (AD C) TIF Account" means a separate account
within the Technology Park Urban Renewal Tax Increment Revenue Fund of the
City, in which there shall be deposited all Tax Increments received by the City in
respect of the Minimum Improvements and the Development Property;
. "Technology Park Urban Renewal Tax Increment Revenue Fund"
means the special fund of the City created under the authority of Section 403.19(2)
of the Code of Iowa and the Ordinance, which fund was created in order to pay the
principal of and interest on loans, monies advanced to, or indebtedness, whether
funded, refunded, assumed or otherwise, including bonds or other obligations
issued under the authority of Section 403.19 or 403.12 of the Code of Iowa,
incurred by the City to finance or refinance in whole or in part projects undertaken
pursuant to the Urban Renewal Plan for the Project Area;
. "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 Bonds issued hereunder; and
Section 2. Authority. The Bonds authorized by this Resolution shall be issued
pursuant to Section 403.9 of the Code ofIowa, and in compliance with all applicable
. provisions of the Constitution and laws of the State of Iowa.
The Purchase Agreement between the City and the Original Purchaser is hereby
approved, and the Mayor and City Clerk are authorized to execute and deliver the same
on behalf of the City.
Section 3. Authorization and PUI:pose. There are hereby authorized to be issued,
negotiable, serial, fully registered Urban Renewal Tax Increment Revenue Bonds,
Taxable Series 1999A, of the City of Dubuque, in the County of Dubuque, State of Iowa,
in the aggregate amount of $900,000 for the purpose 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 Urban Renewal Plan for the
Dubuque Industrial Center/South Economic Development District, including those costs
associated with the funding of an economic development grant to Advanced Data-Comm,
Inc., an Iowa corporation, pursuant to and under the conditions set forth in a Development
Agreement dated as of November 16, 1998 by and among the City of Dubuque, ADC
Properties, L.c., an Iowa limited liability company, and Advanced Data-Comm, Inc.
Section 4. Source of Payment. As provided and required by Chapter 403 of the
Code of Iowa, and Section 403.9, the Bonds and interest thereon shall be payable from
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and secured solely and only by amounts deposited and held from time to time in the
Technology Park (ADC) TIF Account of the City. The City hereby covenants and agrees
to maintain the Ordinance in force during the term of the Bonds and to apply the Tax
Increments collected in respect of the Development Property and the Minimum
Improvements located thereon and allocated to the Technology Park (ADC) TIF Account
to the payment of the principal of and interest on the Bonds. The Bonds shall not be
payable in any manner from other Tax Increments generated from properties within the
Project Area or by general taxation or from any other City funds.
The Bonds shall not constitute an indebtedness within the meaning of any statutory
debt limitation or restriction and shall not be subject to the provisions of any other law
relating to the authorization, issuance or sale of bonds.
The Bonds shall recite in substance that they have been issued by the City in
connection with an urban renewal project as defined in Chapter 403 of the Code of Iowa,
and in any suit, action or proceeding involving the validity or enforceability of any Bond
issued hereunder or the security therefor, such Bonds shall be conclusively deemed to
have been issued for such purpose and such project shall be conclusively deemed to have
been planned, located and carried out in accordance with the provisions of Chapter 403 of
the Code of Iowa.
Section 5. Bond Details. Urban Renewal Tax Increment Revenue Bonds of the
City in the amount of $900,000 shall be issued pursuant to the provisions of Section 403.9
of the Code of Iowa for the aforesaid purpose. The Bonds shall be designated "URBAN
RENEWAL TAX INCREMENT REVENUE BOND, TAXABLE SERIES 1999A", be
dated as of March 18, 1999 (or such other date as shall be acceptable to the Original
Purchaser), and bear interest from the date thereof, until payment thereof, at the office of
the Paying Agent, said interest payable on June 30, 1999 and semiannually thereafter on
the 1 st day of December and June in each year until maturity at the rates hereinafter
provided.
The Bonds shall bear interest from their date of delivery at the initial rate of seven
and one-quarter percent (7.25%) per annum (the "Initial Rate"), which Initial Rate shall
be adjusted thereafter on each of April 1, 2002, April 1, 2005 and April 1, 2008 (each an
"Adjustment Date"). Interest shall be calculated by the Original Purchaser on each
Adjustment Date for the ensuing three-year period to equal the prime rate of interest as
published in the Money Rate section of The Wall Street Journal, minus one-half of one
percent (0.50%) (the "Adjusted Rate"). In no event shall the Adjusted Rate cause the rate
of interest borne by the Bonds to exceed nine percent (9%) or to be less than six percent
(6%).
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The Bonds shall mature in the principal amounts set forth on the Debt Service
Schedule attached to the Bond as Exhibit A and incorporated herein by this reference. As
set forth on said Debt Service Schedule, principal shall be payable on December 31, 2001
and semiannually thereafter on June 30th and December 31st of each year in the amounts
set forth therein until principal and interest are fully paid, except that the final installment
of the entire balance of principal and interest, if not sooner paid, shall become due and
payable on June 30, 2011. On each Adjustment Date, the Debt Service Schedule shall be
adjusted by the Original Purchaser to reflect the Adjusted Rate to be borne by the Bonds
for the succeeding three-year period, calculated as described above. Principal maturities
shall be adjusted to the extent practicable to provide for substantially level payments of
principal and interest in each year. Such revised Exhibit A thereafter shall be deemed to
be incorporated herein by reference and made a part hereof and supersede and replace the
Debt Service Schedule initially attached to the Bonds.
The Bonds 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 and shall
be fully registered as to both principal and interest as provided in this Resolution;
principal, interest and premium, if any shall be payable at the office of the Paying Agent
by mailing of a check to the registered owner of the Bond. The Bonds shall be in the
denomination of $5,000 or multiples thereof and shall, at the request of the Original
Purchaser, be issued initially as a single Bond in the principal amount of $900,000 and
numbered R-1.
Section 6. Redemption. The Bonds may be called for redemption by the Issuer
and paid before maturity on any date, from any funds regardless of source, in whole or
from time to time in part, by giving thirty days' notice of redemption by registered mail, to
the registered owner of the Bond. The terms of redemption shall be par, plus accrued
interest to date of call.
Section 7. Registration of Bonds; Appointment of Registrar; Transfer; Ownership;
Delivery; and Cancellation.
(a) Registration. The ownership of Bonds may be transferred only by the
making of an entry upon the books kept for the registration and transfer of
ownership of the Bonds, and in no other way. The Treasurer is hereby appointed
as Bond Registrar under the terms of this Resolution. Registrar shall maintain the
books of the Issuer for the registration of ownership of the Bonds for the payment
of principal of and interest on the Bonds as provided in this Resolution. All Bonds
shall be negotiable as provided in Article 8 of the Uniform Commercial Code and
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Section 384.83(5) of the Code of Iowa, subject to the provisions for registration
and transfer contained in the Bonds and in this Resolution.
(b) Transfer. The ownership of any Bond may be transferred only upon the
Registration Books kept for the registration and transfer of Bonds 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
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 of multiple individuals, of all such transferees). In the
event that the address of the registered owner of a Bond (other than a registered
owner which is the nominee of the broker or dealer in question) is that ofa 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
Bond, a new fully registered Bond, 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 Bond, and
bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
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( c) Registration of Transferred Bonds. In all cases of the transfer of the
Bonds, the Registrar shall register, at the earliest practicable time, on the
Registration Books, the Bonds, in accordance with the provisions of this
Resolution.
(d) Ownership. As to any Bond, 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 Bonds and the premium, if any, and
interest thereon 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 Bond, including the interest
thereon, to the extent of the sum or sums so paid.
( e) Cancellation. All Bonds which have been redeemed shall not be
reissued but shall be cancelled by the Registrar. All Bonds which are cancelled by
the Registrar shall be destroyed and a certificate of the destruction thereof shall be
furnished promptly to the Issuer; provided that if the Issuer shall so direct, the
Registrar shall forward the cancelled Bonds to the Issuer.
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(f) Non-Presentment of Bonds. In the event any payment check
representing payment of principal of or interest on the Bonds is returned to the
Paying Agent or is not presented for payment of principal at the maturity or
redemption date, if funds sufficient to pay such principal of or interest on Bonds
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 interest or payment
of such Bonds 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 Bonds who shall
thereafter be restricted 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 Bonds.
The Paying Agent's obligation to hold such funds shall continue for a period equal
to two years interest or 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 Bonds of whatever nature shall
be made upon the Issuer.
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Section 8. Reissuance of Mutilated, Destroyed, Stolen or Lost Bonds. In case any
outstanding Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall
at the request of Registrar authenticate and deliver a new Bond of like tenor and amount
as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such
mutilated Bond to Registrar, upon surrender of such mutilated Bond, or in lieu of and
substitution for the Bond destroyed, stolen or lost, upon filing with the Registrar evidence
satisfactory to the Registrar and Issuer that such Bond has been destroyed, stolen or lost
and proof of ownership thereof, and upon furnishing the Registrar and Issuer with
satisfactory indemnity and complying with such other reasonable regulations as the Issuer
or its agent may prescribe and paying such expenses as the Issuer may incur in connection
therewith.
Section 9. Record Date. Payments of principal and interest, otherwise than upon
full redemption, made in respect of any Bond, 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 of the month preceding the payment date. All such payments shall fully
discharge the obligations of the Issuer in respect of such Bonds to the extent of the
payments so made. Payment of principal shall only be made upon surrender of the Bond
to the Paying Agent.
Section 10. Execution, Authentication and Delivery of the Bonds. Upon the
adoption of this Resolution, the Mayor and Clerk shall execute and deliver the Bonds to
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the Registrar, who shall authenticate the Bonds and deliver the same to or upon order of
the Original Purchaser. No Bond shall be valid or obligatory for any purpose or shall be
entitled to any right or benefit hereunder unless the Registrar shall duly endorse and
execute on such Bond a Certificate of Authentication substantially in the form of the
Certificate herein set forth. Such Certificate upon any Bond executed on behalf of the
Issuer shall be conclusive evidence that the Bond so authenticated has been duly issued
under this Resolution and that the holder thereof is entitled to the benefits of this
Resolution.
Section 11. 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 Bondholder.
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Section 12. Form of Bond. Bonds shall be printed in substantial compliance with
standards proposed by the American Standards Institute substantially in the form as
follows:
I (6) I I (6) I
I (7) I I (8) I
I (1) I
I (2) I I (3) I I (4) I I (5) I
(9)
I (9a) I
(10)
(Continued on the back of this Bond)
I (11)(12)(13) I I (14) I I (15) I
FIGURE 1
(Front)
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(10)
(Continued)
(16)
FIGURE 2
(Back)
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The text of the Bonds to be located thereon at the item numbers shown shall be as
follows:
Item 1, figure 1 = "STATE OF IOWA"
"COUNTY OF DUBUQUE"
"CITY OF DUBUQUE"
"URBAN RENEWAL TAX INCREMENT
REVENUE BOND"
"TAXABLE SERIES 1999A"
[TAXABLE FOR FEDERAL INCOME TAX PURPOSES]
Item 2, figure 1 = Rate: As described herein
Item 3, figure 1 = Maturity: As described herein
Item 4, figure 1 = Bond Date: March 18, 1999
Item 5, figure 1 = Cusip No.:
Item 6, figure 1 = "Registered"
Item 7, figure 1 = Certificate No. R-I
Item 8, figure 1 = Principal Amount: $900,000
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Item 9, figure 1 = The City of Dubuque, Iowa, a municipal corporation organized
and existing under and by virtue of the Constitution and laws of the State of Iowa (the
"Issuer"), for value received, promises to pay from the source and as hereinafter provided,
on the maturity date indicated above, to
Item 9A, figure 1 = (Registration panel to be completed by Registrar or Printer
with name of Registered Owner).
Item 10, figure 1 = or registered assigns, the principal sum of (principal amount
written out) THOUSAND DOLLARS in lawful money of the United States of America,
on the maturity date shown above, only upon presentation and surrender hereof at the
office of the City Treasurer, Paying Agent of this issue, or its successor, with interest on
said sum from the date hereof until paid at the rate per annum specified above, payable on
June 30, 1999, and semiannually thereafter on the 1 st day of June and December in each
year.
This Bond shall bear interest from its date of delivery at the initial rate of seven
and one-quarter percent (7.25%) per annum (the "Initial Rate"), which Initial Rate shall
be adjusted thereafter on each of April 1, 2002, April 1, 2005 and April 1, 2008 (each an
"Adjustment Date"). Interest shall be calculated by American Trust & Savings Bank,
Dubuque, Iowa (the "Original Purchaser") on each Adjustment Date for the ensuing
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three-year period to equal the prime rate of interest as published in the Money Rate
section of The Wall Street Journal, minus one-half of one percent (0.50%) (the "Adjusted
Rate"). In no event shall the Adjusted Rate cause the rate of interest borne by the Bonds
to exceed nine percent (9%) or to be less than six percent (6%).
This Bond shall mature in the principal amounts set forth on the Debt Service
Schedule attached hereto as Exhibit A and incorporated herein by this reference. As set
forth on said Debt Service Schedule, principal shall be payable on December 31, 2001
and semiannually thereafter on June 30th and December 31st of each year in the amounts
set forth therein until principal and interest are fully paid, except that the final installment
of the entire balance of principal and interest, if not sooner paid, shall become due and
payable on June 30, 2011. On each Adjustment Date, the Debt Service Schedule shall be
adjusted by the Original Purchaser to reflect the Adjusted Rate to be borne by the Bonds
for the succeeding three-year period, calculated as described above. Principal maturities
shall be adjusted to the extent practicable to provide for substantially level payments of
principal and interest in each year. Such revised Exhibit A thereafter shall be deemed to
be incorporated herein by reference and made a part hereof and supersede and replace the
Debt Service Schedule initially attached to the Bonds.
Interest and principal shall be paid to the registered holder of the Bond as shown
on the records of ownership maintained by the Registrar as of the 15th day of the month
next preceding such interest payment date. Interest shall be computed on the basis of a
360-day year of twelve 30-day months.
THE ISSUER DOES NOT INTEND OR REPRESENT THAT THE INTEREST
ON THIS BOND WILL BE EXCLUDED FROM GROSS INCOME FOR FEDERAL
INCOME TAX PURPOSES UNDER SECTION 103 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, AND THE ISSUER IS NOT OBLIGATED TO TAKE
ANY ACTION TO ATTEMPT TO SECURE ANY SUCH EXCLUSION. THE
HOLDER OF THIS BOND THEREFORE SHOULD TREAT THE INTEREST
THEREON AS BEING SUBJECT TO FEDERAL INCOME TAXATION.
This Bond is issued pursuant to the provisions of Section 403.9 of the Code of
Iowa, as amended, for the purpose 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 Urban Renewal Plan for the Dubuque Industrial Center/South
Economic Development District, including those costs associated with the funding of an
economic development grant to Advanced Data-Comm, Inc., an Iowa corporation,
pursuant to and under the conditions set forth in a Development Agreement dated as of
November 16, 1998 by and among the City of Dubuque, ADC Properties, L.c., an Iowa
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limited liability company (the "Developer"), and Advanced Data-Comm, Inc., in
conformity to a Resolution of the Council of said City duly passed and approved. This
Bond is not an indebtedness within the meaning of any statutory provisions, or a general
obligation of the City.
This Bond may be called for redemption by the Issuer and paid before maturity on
any date, from any funds regardless of source, in whole or from time to time in part, by
giving thirty days' notice of redemption by registered mail, to the registered owner of the
Bond. The terms of redemption shall be par, plus accrued interest to date of call.
Ownership of this Bond may be transferred only by transfer upon the books kept
for such purpose by the City Treasurer, the Registrar. Such transfer on the books shall
occur only upon presentation and surrender of this Bond at the office of the Registrar,
together with an assignment duly executed by the owner hereof or his duly authorized
attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right to
substitute the Registrar and Paying Agent but shall, however, promptly give notice to
registered Bondholders of such change. All Bonds shall be negotiable as provided in
Article 8 of the Uniform Commercial Code and Section 384.83(5) of the Code of Iowa,
subject to the provisions for registration and transfer contained in the Bond Resolution.
This Bond, as provided in the Bond Resolution of which notice is hereby given
and is hereby made a part hereof, is payable from and secured by a pledge of the tax
increment revenues collected in respect of the Developer's properties located within the
Dubuque Industrial Center/South Economic Development District (the "Project Area"), as
defined and provided in said Resolution, as referred to and authorized in subsection 2 of
Section 403.19 of the Code of Iowa, as amended ("incremental taxes"). There has
heretofore been established and the City covenants and agrees that it will maintain in
force an ordinance providing for the division of incremental taxes within the Project Area
for the establishment of a sinking fund to meet the principal of and interest on this Bond
as the same becomes due. This Bond is not payable in any manner by general taxation
and under no circumstances shall the City be in any manner liable by reason of the failure
of said tax increment revenues to be sufficient for the payment hereof.
And it is hereby represented and certified that all acts, conditions and things
requisite, according to the laws and Constitution of the State of Iowa, to exist, to be had,
to be done, or to be performed precedent to the lawful issue of this Bond, have been
existent, had, done and performed as required by law.
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IN TESTIMONY WHEREOF, said City by its City Council has caused this Bond
to be signed by the manual signature of its Mayor and attested by the manual signature of
its City Clerk, with the seal of said City impressed hereon, and authenticated by the
manual signature of an authorized representative of the Registrar, the City Treasurer,
Dubuque, Iowa.
Item 11, figure 1 = Date of authentication:
Item 12, figure 1 = This is one of the Bonds described in the within mentioned
Resolution, as registered by the City Treasurer.
CITY TREASURER
By:
Registrar
Item 13, figure 1 = Registrar and Transfer Agent: City Treasurer
Paying Agent: City Treasurer
Item 14, figure 1 = (Seal)
Item 15, figure 1 = [Signature Block]
CITY OF DUBUQUE, IOWA
By: Mayor's manual signature
Mayor
ATTEST:
By: City Clerk's manual signature
City Clerk
Item 16, figure 2 = It is certified that the following is a correct and complete copy
of the opinion of bond counsel issued as of the date of
delivery of the issue of which this Bond is a part.
(manual signature)
City Clerk
[Opinion of Bond Counsel]
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Item 17, figure 2 = [Assignment Block]
[Information Required for Registration]
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No. ) the within Bond
and does hereby irrevocably constitute and appoint attorney in fact to
transfer the said Bond on the books kept for registration of the within Bond, with full
power of substitution in the premises.
Dated:
(Person( s) executing this Assignment sign( s) here)
SIGNATURE )
GUARANTEED)
IMPORTANT - READ CAREFULLY
The signature(s) to this Power must correspond with the name(s) as written upon
the face of the certificate(s) or bond(s) in every particular without alteration or
enlargement or any change whatever. Signature guarantee must be provided in
accordance with the prevailing standards and procedures of the Registrar and
Transfer Agent. Such standards and procedures may require signature to be
guaranteed by certain eligible guarantor institutions that participate in a recognized
signature guarantee program.
INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER
Name ofTransferee(s)
Address ofTransferee(s)
Social Security or Tax
Identification Number of
Transferee( s)
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Transferee is a(n):
Individual*
Partnership
Corporation
Trust
*If the Bond is to be registered in the names of multiple individual owners, the names of
all such owners and one address and social security number must be provided.
The following abbreviations, when used in the inscription on the face of this Bond,
shall be construed as though written out in full according to applicable laws or
regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
IT TEN - as joint tenants with right of survivorship
and not as tenants in common
IA UNIF TRANS MIN ACT -
........ ..Custodian.... ......
(Cust) (Minor)
under Iowa Uniform Transfers
to Minors Act................
(State)
ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH
NOT IN THE ABOVE LIST.
Section 13. Equality of Lien. The timely payment of principal of and interest on
the Bonds shall be secured equally and ratably by the Tax Increments collected and
allocated to the Technology Park (ADC) TIF Account without priority by reason of
number or time of sale or delivery; and the Tax Increments collected and allocated to the
Technology Park (ADC) TIF Account are hereby irrevocably pledged to the timely
payment of both principal and interest as the same become due.
Section 14. Application of Bond Proceeds. An amount equal to the initial reserve
fund requirement shall be deposited in the Reserve Fund for its purposes as provided in
Section 16. An amount equal to $149,350 shall be deposited in the Sinking Fund as
capitalized interest and paid on the first five (5) installments of interest due on the Bonds.
The balance of proceeds not applied to costs of issuance shall be paid into the Project
Fund and applied for purposes of issue. Subject to the limitations contained in Code
Section 403.9(1) any amounts on hand in the Project Fund shall be available for the
payment of the principal of or interest on the Bonds at any time that other funds of the
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Project 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. Any excess proceeds remaining on hand
shall be paid into the Reserve Fund.
Section 15. Tax Levy. After its adoption, a copy of this Resolution shall be filed
in the office of the County Auditor of Dubuque County to evidence the pledging of the
Technology Park Urban Renewal Tax Increment Revenue Fund and the portion of taxes
to be paid into the Technology Park (ADC) TIF Account and, pursuant to the direction of
Section 403.19 of the Code of Iowa, the Auditor shall thereafter allocate the taxes in
accordance therewith and in accordance with the Ordinance referred to in the preamble
hereof.
It is hereby certified that the annual amount of Tax Increments to be collected
pursuant to Section 403.19(2) ofthe Code of Iowa shall be not less than the annual
requirement for principal and interest, as follows:
Amount of Principal
and Interest
Fiscal Year (July 1 to June 30)
Year of Collection
$ 84,100
65,250
128,087
128,087
128,087
128,087
128,087
128,087
128,087
128,087
128,087
128,087
1999/2000
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
Section 16. Application of Revenues. From and after the delivery of the Bonds,
and as long as the Bonds shall be outstanding and unpaid either as to principal or as to
interest, or until all of the Bonds then outstanding shall have been discharged and
satisfied in the manner provided in this Resolution, the Tax Increments collected in
respect of the Development Property and the Minimum Improvements located thereon
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shall be deposited as collected in the Technology Park (ADC) TIF Account and shall be
disbursed only as follows:
(a) Sinking Fund. There is hereby established and shall be maintained a
special fund within the Technology Park (ADC) TIF Account from which interest
and principal on the Bonds will be paid. The fund shall be known as the ADC
Principal and Interest Fund (the "Sinking Fund"). The amount to be deposited in
the Sinking Fund in any year shall be an amount equal to the interest and principal
coming due on such Bonds during the fiscal year. Money shall be first deposited
into the Interest Account of the Sinking Fund to an amount equal to the interest
falling due in each fiscal year. Money shall next be deposited into the Principal
Account of the Sinking Fund to an amount equal to the principal falling due in
each fiscal year. Money in the Sinking Fund shall be used solely for the purpose
of paying principal of and interest on the Bonds, as the same shall become due and
payable.
.
(b) Reserve Fund. There is hereby established and shall be maintained a
debt service reserve fund within the Technology Park (ADC) TIF Account in the
amount of at least $100,650 (the "Reserve Fund Requirement"). Such fund shall
be known as the ADC Reserve Fund (the "Reserve Fund"). Whenever the amount
on deposit in the Reserve Fund shall be not less than the minimum required above,
no further deposits need be made into the Reserve Fund except to maintain said
fund at such level. Money in the Reserve Fund shall be used solely for the purpose
of paying principal at maturity of or interest on the Bonds. Whenever it shall
become necessary to so use money in the Reserve Fund, the Issuer shall make
payments from any other sums that may then be held in the Technology Park
(ADC) TIF Account until it shall have been restored to the required minimum
amount.
(c) Sut:plus Revenue. All revenues thereafter remaining in the Technology
Park (ADC) TIF Account shall be deposited to remedy any deficiency in any of the
funds created by this Resolution, or may be used to payor reimburse the Issuer for
other loans, moneys advanced to or indebtedness incurred to finance or refinance
in whole or in part the project of the Developer, as permitted by law, or may be
used to payor redeem the Bonds or for any lawful purpose.
Moneys on hand in the Project Fund and all of the funds provided by this Section
may be invested only in direct obligations of the United States Government or deposited
in financial institutions which are members of the Federal Deposit Insurance Corporation
("FDIC") and the deposits in which are insured thereby and all such deposits exceeding
.
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the maximum amount insured from time to time by FDIC or its equivalent successor in
anyone financial institution shall be continuously secured by a valid pledge of direct
obligations of the United States Government having an equivalent market value.
Alternatively, such moneys may be invested in tax-exempt bonds or obligations of any
state or political subdivision thereof which are rated by Moody's Investors Service or
Standard & Poor's Corporation at a rating classification equal to or better than the rating
carried by the Bonds or, in the case of short-term obligations, a rating ofMIG-l, S&P-l
or better. All such interim investments shall mature before the date on which the moneys
are required for the purposes for which said fund was created or otherwise as herein
provided but in no event maturing in more than three years in the case of the Reserve
Fund. The provisions of this Section shall not be construed to require the Issuer to
maintain separate bank accounts for the funds created by this Section; except the Sinking
Fund and the Reserve Fund shall be maintained in a separate account but may be invested
in conjunction with other funds of the City but designated as a trust fund on the books and
records of the City.
All income derived from such investments shall be deposited in the Technology
Park (ADC) TIF Account and shall be regarded as revenues thereof. Such investments
shall at any time necessary be liquidated and the proceeds thereof applied to the purpose
for which the respective fund was created.
Section 17. Covenants Regarding the Operation of the Project Area. The Issuer
hereby covenants and agrees with each and every holder of the Bonds:
(a) Maintenance in Force. The Issuer will maintain the Urban Renewal
Plan and the Ordinance in force and will cause the incremental taxes thereof to be
levied annually in an amount not less than the principal and interest falling due
within the year, and applied as provided in this Resolution, unless the Bonds are
paid or sufficient provision for their payment is made. Provided, however, that to
the extent that amounts are on hand and are sufficient to meet the payments
required to be made and to maintain a sufficient balance in each fund as required
by this Resolution, the Issuer may abate the levy of incremental taxes in any year.
(b) Accounting and Audits. The Issuer will cause to be kept proper books
and accounts adapted to the Project Area and in accordance with generally
accepted accounting practices, and will cause the books and accounts to be audited
annually not later than 180 days after the end of each fiscal year by an Independent
Auditor and will provide copies of the audit report to the Original Purchaser upon
request. The Original Purchaser and holders of any of the Bonds shall have at all
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reasonable times the right to inspect the Issuer's records, accounts and data of the
Issuer relating to the Revenue Fund or the Technology Park (ADC) TIF Account.
(c) State Laws. The Issuer will faithfully and punctually perform all duties
with reference to the Urban Renewal Plan required by the Constitution and laws of
the State of Iowa, and will segregate the revenues of the Project Area and apply
said revenues to the funds as specified in this Resolution.
(d) Amendments. The Issuer reserves the right to amend the Urban
Renewal Plan for the Project Area and the Ordinance in its lawful discretion;
provided, that in no event shall obligations resulting from an amendment or merger
have any priority over the Bonds.
Section 18. Remedies of Bondholders. Except as herein expressly limited the
holder or holders of the Bonds shall have and possess all the rights of action and remedies
afforded by the common law, the Constitution and statutes of the State of Iowa, and of the
United States of America, for the enforcement of payment of their Bonds and interest
thereon, and of the pledge of the revenues made hereunder, and of all covenants of the
Issuer hereunder.
Section 19. No Prior Lien or Parity Bonds. The Issuer will issue no other Bonds
or obligations of any kind or nature payable from or enjoying a lien or claim on the
property or revenues of the Technology Park (ADC) TIF Account having priority over the
Bonds or standing on a parity therewith with respect to the lien and claim of such
additional obligations to the revenues thereof and the money on deposit in the funds
created in this Resolution, without the written consent of the Original Purchaser or other
registered holder of the Bond.
Section 20. Discharge and Satisfaction of Bonds. The covenants, liens and
pledges entered into, created or imposed pursuant to this Resolution may be fully
discharged and satisfied with respect to the Bonds in anyone or more of the following
ways:
(a) By paying the Bonds when the same shall become due and payable; and
(b) By depositing in trust with the Treasurer, or with a corporate trustee
designated by the governing body for the payment of said obligations and
irrevocably appropriated exclusively to that purpose an amount in cash or direct
obligations of the United States the maturities and income of which shall be
sufficient to retire at maturity, or by redemption prior to maturity on a designated
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date upon which said obligations may be redeemed, all of such obligations
outstanding at the time, together with the interest thereon to maturity or to the
designated redemption date, premiums thereon, if any that may be payable on the
redemption of the same; provided that proper notice of redemption of all such
obligations to be redeemed shall have been previously published or provisions
shall have been made for such publication.
Upon such payment or deposit of money or securities, or both, in the amount and
manner provided by this Section, all liability of the Issuer with respect to the Bonds shall
cease, determine and be completely discharged, and the holders thereof shall be entitled
only to payment out of the money or securities so deposited.
Section 21. Resolution a Contract. The provisions of this Resolution shall
constitute a contract between the Issuer and the holder or holders of the Bonds, and after
the issuance of any of the Bonds no change, variation or alteration of any kind in the
provisions of this Resolution shall be made in any manner, except as provided in the next
succeeding Section, until such time as all of the Bonds, and interest due thereon, shall
have been satisfied and discharged as provided in this Resolution.
Section 22. Modification of Resolution. This Resolution may be amended from
time to time if such amendment shall have been consented to by holders of not less than
two-thirds in principal amount of the Bonds at any time outstanding (not including in any
case any Bonds which may then be held or owned by or for the account of the Issuer, but
including such Refunding Bonds as may have been issued for the purpose of refunding
any of such Bonds if such Refunding Bonds shall not then be owned by the Issuer); but
this Resolution may not be so amended in such manner as to:
(a) Make any change in the maturity or interest rate of the Bonds, or
modify the terms of payment of principal of or interest on the Bonds or any of
them or impose any conditions with respect to such payment;
(b) Materially affect the rights of the holders of less than all of the Bonds
then outstanding; and
( c) Reduce the percentage of the principal amount of Bonds, the consent of
the holders of which is required to effect a further amendment.
Whenever the Issuer shall propose to amend this Resolution under the provisions
of this Section, it shall cause notice of the proposed amendment to be filed with the
Original Purchaser or to be mailed by certified mail to any other registered owner of the
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Bond as shown by the records of the Registrar. Such notice shall set forth the nature of
the proposed amendment and shall state that a copy of the proposed amendatory
Resolution is on file in the office of the City Clerk.
Whenever at any time within one year from the date of the mailing of said notice
there shall be filed with the City Clerk an instrument or instruments executed by the
holders of at least two-thirds in aggregate principal amount of the Bonds then outstanding
as in this Section defined, which instrument or instruments shall refer to the proposed
amendatory Resolution described in said notice and shall specifically consent to and
approve the adoption thereof, thereupon, but not otherwise, the governing body of the
Issuer may adopt such amendatory Resolution and such Resolution shall become effective
and binding upon the holders of all of the Bonds.
Any consent given by the holder of a Bond pursuant to the provisions of this
Section shall be irrevocable for a period of six months from the date of the instrument
evidencing such consent and shall be conclusive and binding upon all future holders of
the same Bond during such period. Such consent may be revoked at any time after six
months from the date of such instrument by the holder who gave such consent or by a
successor in title by filing notice of such revocation with the City Clerk.
The fact and date of the execution of any instrument under the provisions of this
Section may be proved by the certificate of any officer in any jurisdiction who by the laws
thereof is authorized to take acknowledgments of deeds within such jurisdiction that the
person signing such instrument acknowledged before him the execution thereof, or may
be proved by an affidavit of a witness to such execution sworn to before such officer.
The amount and numbers of the Bonds held by any person executing such
instrument and the date of his holding the same may be proved by an affidavit by such
person or by a certificate executed by an officer of a bank or trust company showing that
on the date therein mentioned such person had on deposit with such bank or trust
company the Bonds described in such certificate.
Section 23. Severability. 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
. . . .
remammg prOVISIOns.
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Section 24. 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 from and after its adoption.
Passed and approved this
15th day of March
, 1999.
ATTEST:
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City rk
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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 16th day
of March , 1999.
SEAL
DCORNELL\175328\1 \1 0422052
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 11, 1999
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Authorization to Issue $900,000 Urban Renewal Tax Increment
Revenue Bond for Advanced Data-Comm Project
.
Community and Economic Development Director Jim Burke is recommending the
issuance of a $900,000 Urban Renewal Tax Increment Revenue Bond to assist
Advanced Data-Comm's expansion project at the Dubuque Technology Park.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
(;
/ll ()>c L,";>)til
Ichael C. Van Milligen
MCVM/j
Attachment
cc: Barry lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Jim Burke, Community and Economic Development Director
.
.
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CITY OF DUBUQUE, IOWA
MEMORANDUM
March 9, 1999
TO:
FROM: s Burke, Community and Economic Development Director
SUBJECT: Authorization to Issue $900,000 Urban Renewal Tax Increment Revenue
Bond for Advanced Data-Comm Project
INTRODUCTION
This memorandum presents for City Council approval: 1) a resolution authorizing the issuance
of a $900,000 tax increment revenue bond to support Advanced Data-Comm's expansion project
at the Dubuque Technology Park; 2) the actual bond; and 3) the bond Purchase Agreement.
BACKGROUND
On March 1, 1999, the City Council held a public hearing on the proposed issuance of tax
increment revenue bonds for Advanced Data-Comm. With no objections from the public, the
Council adopted a resolution to institute proceedings and take additional action for the sale and
issuance of bonds not to exceed $900,000.
DISCUSSION
The City has worked with Advanced Data-Comm and their lender, American Trust and Savings
Bank, to structure the private placement of this tax increment revenue bond. A letter is attached
from American Trust outlining their proposal for the bond. The City's bond counsel has
reviewed and approved the proposal and has incorporated the appropriate terms of the proposal
into the provisions of the bond documents. The attached resolution, bond and bond purchase
agreement have been prepared by the City's bond counsel.
Those documents provide for the issuance of the bond under terms and conditions acceptable to
the company and lender. The company will net approximately $650,000 from the bond sale for
their project. The bond will be repaid over a twelve year period by ten years of property taxes
paid by Advanced Data-Comm.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution authorizing the issuance of a
$900,000 urban renewal tax increment revenue bond to assist Advanced Data-Comm's expansion
project at the Dubuque Technology Park. As provided in the Development Agreement, the
company will create not less than 51 new full-time jobs with this expansion and create over $5
. million in new assessed value in the Technology Park.
ACTION STEP
The action step for the City Council is to adopt the attached resolution and authorize and direct
the appropriate signatures on the bond and bond Purchase Agreement on behalf of the City of
Dubuque.
attachments
Prepared by: Pamela Myhre-Gonyier
Associate Planner
.
3/10/99
F:\USERS\P AMMG\ WPDOCS\LOANOOC\ADVDA T A\TIFBOND.MEM
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March 15
, 1999
The City Council of Dubuque, Iowa, met in reqular
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Terrance M. Duggan
following named Council Members:
Roy Buol, John Markham, Ann Michalski.
Dan Nicholson, Joe Robbins, Dirk Voetberg
Absent: None
*********
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session, in the
7: 00 o'clock P. .M., on
, in the chair, and the
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MAR. -OY' 99(TUE) 10:01 AMERICAN TRUST
TEL:3195821841
p, 001
~~~
895 Town Clock Pt8%f1
P.O. Box 938
Dubuque, Iowa 52004-0938
(31~) 5B~o0827
Fax 589-0839
VlGtorlll .TorI) ....;ht.r
Vice President
Commerciell.oan
March 9, 1999
Ms. Pam. Myhre-Gonyier
City of Dubuque
Community & Economic Development Department
50 West 13th Street
Dubuque.IA 52001-4864
RE: TIP proposal fOT ADe Properties
Dear Pam:
American Trust is pleased to provide the following revised proposal for the above referenced TIF
loan to the City of Dubuque:
Borrower:
Loan Amount:
Proceeds to ADC Properties;
Amount in Reserve:
Rate:
City of Dubuque
$900,000
$650,000
$100,650
The minimum prime rate of interest as established in the
Money Rate section ofTbe Wall Street Journal minus 0.50
percent. The rate on this loan will change as often as every
three years. During the tenn of the loan, the applicable
annual interest rate will not be more than 9 percent or less
than 6 percent. A change in the interest rate will change the
amount of each scheduled payment.
The loan is anticipated to fund on or near March 18, 1999.
Five interest payments will be due semi-annually beginning
June 30, 1999. 19 semi-annual principal and interest
payments will commence December 31, 2001. The final
payment of the entire unpaid balance of principal and
interest will be due June 30, 20 II. An amortization
schedule is attached which will detail the proposed
repayment schedule.
Terms:
It is the bank's understanding the source of repayment for this loan is the revenue to be collected
from the real estate taxes paid by ADC Properties. L. C.. to the Dubuque County Treasurer. The
minimum assessed value for ADe Properties, L.e., $5,100,000. Based on today's tax rate, the
Received: ,3/9/99,11:05;
.
3195821841 -> CITY OF DUBUQUE; Page 2
~AR. -09' 99 (TUE) 10: 01 AMERICAN TRUST
TEL:3195821841
P. 002
Americ8n 1ftIst . Savings ....k
.
Ms. Pam Myhre-Gonyier
March 9, 1999
page 2
annua' revenue stream is approximately $142.591.72. Our initial projection of annual debt service
is $128,086.64. This does provide a cushion for changes in the interest rate or changes in the tax
rate. However, in the event the tax rate falls below the level required to service the debt, we
understand there will be an agreement between the City afDubuque and ADC Properties. L.e.,
for the difference the city receives in tax. revenues and the debt service required.
Purpose of Letter:
.
This letter shall not be deemed as evidence of a binding agreement on the part of either the Bank
or the City of Dubuque. Important terms may remain to be negotiated, and even if an agreement
in principal should be reached on the terms at'the tlnancing at a subsequent date, neither party to
the financing shall be legally bound until definitive loan documents have been signed by the
respective parties.
The City of Dubuque shall execute and deliver definitive loan documents in form and substance
satisfactory to the Bank and its legal counsel, as well as the City's legal counsel. Any advance of
funds shall be conditioned upon compliance with all appJjt:able conditions and tenns contained in
each such loan document.
Thank you, again, for the opportunity to provide this fmancing proposal. If there are any
additional changes needed to the proposal, do not hesitate to call.
~~4'~
Vice President
Attachment
sent by fax: 589-4149
.
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MAR. -09' 99 (TUE) 10: 02
Received: .3/ 9/99 ., 1 :05;
AMERICAN TRUST
3195821841
-> CITY OF DUBUQUE;
TEL:3195821841
..
CITY OF DUBUaUE~$900.000 TIF in support _~f ~DC properties
. Compound Period .....m.: Semiannual
Nominal Annual Rate .... :
Effective Annual Rate m :
Periodic Rate .................. :
Daily Rate ........................:
CASH FLOW DATA
Event
1 Loan
2 payment
3 Payment
7.260 %
7.381 %
3.6250 %
0.02014 %
Start Date
03/1811999
08/30/1999
1213112001
Page 3
P. 003
03109/1999 Pa9E:!
Amount Number Period
End Date
900,000.00
Interest Only
64,043.32
1
5 Semiannual 06f3012001
20 Semiannual 0613012011
AMORTIZA. TlON SCHEDULE - Nonnal Amortization, 360 Day Year
Date
Loan 0311811999
1 0613011999
2 12/31/1999
1999 Totals
.
3 0613012000
4 1213112000
2000 Totals
5 06fJ012001
6 12/3112001
2001 Totals
7 0613012002
B 12/3112002
2002 Totals
9 08130/2003
10 1213112003
2003 Totals
11 0613012004
12 12/3112004
2004 Totals
13 0613012005
14 12/31/2005
2005 Totals
.
15 0613012006
16 12/3112006
Paymen~..
18,850.00
32.625.00
51,475.00
32,625.00
32.625.00
65,250.00
32,625.00
64,043.32
96,668.32
64.043.32
64,043.32
128,086.64
64,043.32
64,043.32
128.086.64
64,043.32
64,043.32
128,086.64
84,043.32
64,043.32
128,086.64
64,043.32
64,043.32
Interest
18,850.00
32,625.00
51,475.00
32,625.00
32,625.00
65,250.00
32,625.00
32,625.00
65,250.00
31,486.09
30,305.89
61,791.98
29,082.90
27,815.59
56,898.49
26,502.33
25,141.47
51,643.80
23,731.28
22.269.97
48,001.25
20,755.69
19,186.51
Principal
0.00
0.00
0.00
0.00
0.00
0.00
0.00
31,418.32
31,418.32
32,557.23
33,737.43
66.294.66
34.960.42
36,227.73
71,188.15
37,540.99
38,901.85
76,442.84
40,312.04
411773.35
82,085.39
43,287.63
44,856.81
Balance
900.000.00
900,000.00
900,000.00
900,000.00
900,000.00
900,000.00
868,581.68
836,024.45
802,287.02
767,326.60
731,098.87
693,557.88
654,656.03
614,343.99
572,570.64
529,283.01
484,426.20
Received: . 31 9/99 ;! 1 : 06;
.
MAR. -O~' 99(TUE) 10:02 AMERICAN TRUST
3195821841 -> CITY OF DUBUQUE; Page 4
TEL:3195821841
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91TY OF DUBU.9UEM$900,OOO TIF .i.~ support of A~ Properties
Date Payment Interest Principal
2006 Totals 128,086.64 39,942.20 88t144.44
17 06130/2007
18 12/31/2007
2007 Totals
19 0613012008
20 1213112008
2008 Totals
21 06/3012009
22 1213112009
2009 Totals
23 06/3012010
24 12/3112010
2010 TotalS
25 0613012011
2011 Totals
Grand Totals
.
.
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
1,430,216.40
17,560.45
15,875.45
33,435.90
14,129.36
12,319.98
26,449.34
10,445.01
8,502.07
18,947.08
6,488.70
4,402.34
10,891.04
2,240.32
2,240.32
530,216.40
46A82.87
48,167.87
94,650.74
49,913.96
51,723.34
101,637.30
53,598.31
55,541.25
109,139.56
57,554.62
59,640.98
117,195.60
61,803.00
61,803.00
900,000.00
P. 004
03109/1999 Page 2
Balance
437,943.33
389,775.46
339,861.50
288,138.16
234,539.85
178,998.60
121,443.98
61,803.00
0.00
~;,
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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:
March 15 , 1999.
Time of Meeting:
7 :00 o'clock P ~ .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:
$900,000 Urban Renewal Tax Increment Revenue Bond, Taxable Series 1999A.
Resolution authorizing the issuance.
Such additional matters as are set forth on the additional 6 page( s) attached
hereto. (number)
City Council
This notice is given at the direction of the pursuant to Chapter 21,
Code of Iowa, and the local rules of said governmental body.
\..,1\ 1r-'n!.'nr~I'-"'"
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62 :2 Wd II ~VW 66
03/\13838
.
.
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 11, 1 999
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT:
Authorization to Issue $900,000 Urban Renewal Tax Increment
Revenue Bond for Advanced Data-Comm Project
Community and Economic Development Director Jim Burke is recommending the
issuance of a $900,000 Urban Renewal Tax Increment Revenue Bond to assist
Advanced Data-Comm's expansion project at the Dubuque Technology Park.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
;11t<jj ~ jJJJ~
Michael C. Van Milligen ..........
MCVM/j
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Jim Burke, Community and Economic Development Director
.
.
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
March 9, 1999
TO:
FROM: s Burke, Community and Economic Development Director
SUBJECT: Authorization to Issue $900,000 Urban Renewal Tax Increment Revenue
Bond for Advanced Data-Comm Project
INTRODUCTION
This memorandunl presents for City Council approval: 1) a resolution authorizing the issuance
of a $900.000 ta'\: increment revenue bond to support Advanced Data-Comm's expansion project
at the Dubuque Technology Park; 2) the actual bond; and 3) the bond Purchase Agreement.
BACKGROUND
On March I, 1999, the City Council held a public hearing on the proposed issuance of tax
increment revenue bonds for Advanced Data-Comm. With no objections from the public, the
Council adopted a resolution to institute proceedings and take additional action for the sale and
issuance of bonds not to exceed $900,000.
DISCUSSION
The City has worked with Advanced Data-Comm and their lender, American Trust and Savings
Bmlk. to structure the private placement of this tax increment revenue bond. A letter is attached
from Americml Trust outlining their proposal for the bond. The City's bond counsel has
rcviewed .md approved the proposal and has incorporated the appropriate terms of the proposal
into tlle provisions oftlle bond documents. The attached resolution, bond and bond purchase
agreement have been prepared by the City's bond counsel.
Those documents provide for the issuance of the bond under terms and conditions acceptable to
the comp.my mld lender. The company will net approximately $650,000 from the bond sale for
their projcct. The bond will be repaid over a twelve year period by ten years of property taxes
paid by Advanced Data-Comm.
RECOMMENDATION
I l'Ccomnlt.:nd that tlle City Council adopt the attached resolution autllorizing the issuance of a
$900.000 urban renewal ta'\: increment revenue bond to assist Advanced Data-Comm's expansion
projcct at the Dubuque Technology Park. As provided in the Development Agreement, the
.
.
.
company will create not less than 51 new full-time jobs with this expansion and create over $5
million in new assessed value in the Technology Park.
ACTION STEP
The action step for the City Council is to adopt the attached resolution and authorize and direct
the appropriate signatures on the bond and bond Purchase Agreement on behalf of the City of
Dubuque.
attachn1ents
Prepared by: Pan1ela Myhre-Gonyier
Associate Planner
3/10/99
F:\USERS\PAr-Ir-IG\ \\'PDOCS\LOANOOC\ADVDA T A\TIFBOND,MEM
.
.
.
..._--_....-......
-~--. --
~IAR.-09.99lTCE) 10:01 A~IERIGA~ TRUST
TEL:3195821841
P. 00 I
~~~
695 Town Clock PI8%8
P.O. 80x 93B
Dubuque, Iowa 52004-0938
(319) 589~7
Fax 589-0839
Victori. (To,I) Richter
VIce President
Commercial Loan
March 9. 1999
Ms. Pam Myhre-Gonyier
City of Dubuque
Community & Economic Development Department
50 West 13th Street
Dubuque, IA 52001-4864
RE: TIF proposal for ADC Properties
Dear Pam:
American Trust is pleased to provide the following revised proposal for the above referenced TIF
loan to the City of Dubuque:
Borrower:
Loan Amount:
Proceeds to ADC Properties:
Amount in Reserve:
Rate:
City of Dubuque
$900>000
$650,000
$100,650
The minimum prime rate of interest as established in the
Money Rate section of The Wall Street Journal minus 0.50
percent. The me on this loan will change as often as every
three years. During the term of the loan, the applicable
annual interest rate will not be more than 9 percent or less
than 6 percent. A change in the interest rate will change the
amount of each scheduled payment.
The loan is anticipated to fund on or near March 18, 1999.
Five interest payments will be due semi-annually beginning
June 30, 1999. 19 semi-annual principal and interest
payments will commence December 31, 2001. The final
payment of the entire unpaid balance of principal and
interest will be due June 3D, 2011. An amortization
schedule is attached which will detail the proposed
repayment schedule.
Tenns:
It is the bank's understanding the source ofrepaymcnt for this loan is the revenue to be collected
from the real estate taxes paid by ADC Properties> L.C., to the Dubuque County Treasurer. The
minimum assessed value tor ADe Properties, L.c.> $5,100,000. Based on today's tax rate, the
Ml;::\'i..,;~..1..V~U:
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..;) I ~OOc.. J 0_ t -.- v..L. I 1 vr- Io...IVU....................... J ,......'l::;:t...........
. MAR. -09' 99(TUE) 10:01 AMERICAN TRUST
TEL:3195821841
P.002
.
Amer~ Trust & Savings Bank
Ms. Pam Myhre-Gonyic:r
March 9, 1999
page 2
annual revenue stream is approximately $142,591 .12. Our initial projection of annual debt service
is $128,086.64. This does provide a cushion for changes in the interest rate or changes in the tax
rate. However) in the event the tax rate falls below the level required to service the debt, we
understand there will be an agreement between the City of Dubuque and ADe Properties., L.e.,
for the difference the city receives in tax revenues and the debt service required.
Purpose of Letter:
.
This letter shall not be deemed as evidence of a binding agreement on the part of either the Bank
or the City of Dubuque. Important terms may remain to be negotiated, and even if an agreement
in principal should be reached on the tenns of the financing at a subsequent date, neither party to
the financing shall be legally bound until definitive loan documents have been signed by the
respective parties.
The City of Dubuque shall execute and deliver definitive loan documents in form and substance
satisfactory to the Bank and its legal counsel, as well as the City's legal counsel. Any advance of
funds shall be conditioned upon compliance with all applicable conditions and tenns contained in
each such loan document.
Thank you, again, for the opportunity to provide this fmancing proposal. If there are any
additional changes needed to the proposal, do not hesitate to call.
Sincerely,
~~4~
Vice President
Attachment
sent by fax: 589-4149
.
r-\ece~vt3a: ~. ::;ji~:::J ] i ;UOj
~1:::100':::::IO~1 --- ..........r..l I ......' ..........._..................., '--;t--
. ~tAR. -09' 99 (TCE) 10: 01 A~IERICA~ TRUST
TEL:3195821841
.
CITY OF DUBUQUE-$900,OOO TIF in support 5!.f !\DC Properties
Compound Period .........: Semiannual
.
.
Nominal Annual Rate .... :
Effective Annual Rate ... :
Periodic Rate .................. :
Daily Rate ........................:
CASH FLOW DATA
Event
1 Loan
2 Payment
3 Payment
7.250 %
7.381 %
3.6250 %
0.02014 %
Start Date
03/18/1999
06130/1999
1213112001
P. 003
03109/1999 Pa~!
Amount Number Period
End Date
9001000.00
Interest Only
64,043.32
1
5 Semiannual 0613012001
20 Semiannual 0613012011
AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year
Date
Loan 03/18/1999
1 06130/1999
2 12/31/1999
1999 Totals
3 06130f20oo
4 12/3112000
2000 Totals
5 0613012001
6 1213112001
2001 Totals
7 06l30f2002
8 12/3112002
2002 Totals
9 0613012003
10 12/3112003
2003 Totals
11 0613012004
12 1213112004
2004 Totals
13 0613012005
14 12/3112005
2005 Totals
15 0613012006
16 1213112006
Paymen~..
18,850.00
32,625.00
51,475.00
32.625.00
32.625.00
65,250.00
32,625.00
64,043.32
96,668.32
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,086.64
64.043.32
64,043.32
128.086.64
64,043.32
64,043.32
Interest
18.850.00
32,625.00
51,475.00
32,625.00
32,625.00
65,250.00
32,625.00
32,625.00
65,250.00
31,486.09
30,305.89
61.791.98
29,082.90
27,815.59
56,898.49
26.502.33
25,141.47
51,643.80
23,731.28
22,269.97
46,001.25
20,755.69
19,186.51
Principal
0.00
0.00
0.00
0.00
0.00
0.00
0.00
31,418.32
31,418.32
32,557.23
33,737.43
66,294.66
34,960.42
36,227.73
71,188.15
37,540.99
38,901.85
76,442.84
40,312.04
41,773.35
82,085.39
43,287.63
44,856.81
Balance
900,000.00
900,000.00
900,000.00
900,000.00
900,000.00
900,000.00
868,581.68
836,024.45
802,287.02
767,326.60
731,098.87
693,557.88
654,656.03
614,343.99
572,570.64
529,283.01
484,426.20
Hece~vea: .:J/ ':::;;JI ':::J~ I I ';Uo; .,:)1 -=:P,;JO.c:::.1 u-r I " - -...." ......' .................... ...........-- J
. MAR. -09' 99 (TUE) 10:02 AMERICAN TRUST TEL:3195821841 P. 004
03109/1999 Page 2
'. ..
. CITY OF DU8U~.UE-$900,OOO TIF .i.~ support of A~ Properties
Date Payment Interest Principal Balance
"
2006 Totals 128,086.64 39,942.20 88,144.44
17 0613012007 641043.32 17.560.45 46A82.87 437,943.33
18 12131/2007 64,043.32 15,875.45 48,167.87 389,775.46
2007 Totals 128,086.64 33,435.90 94,650.74
19 06/3012008 64,043.32 14,129.36 49,913.96 339,861.50
20 1213112008 64,043.32 12,319.98 51,723.34 288.138.16
2008 Totals 128,086.64 26,449.34 101,637.30
21 06/3012009 64,043.32 10,445.01 53,598.31 234,539.85
22 12/3112009 64,043.32 8,502.07 55,541.25 1781998.60
2009 Totals 128.086.64- 18,947.08 109,139.56
23 06/3012010 64.043.32 6,488.70 57,554.62 121,443.98
24 12/3112010 64,043.32 4,402.34 59,640.98 61,803.00
2010 Totals 128,086.64 10,891.04 117,195.60
25 0613012011 64,043.32 2,240.32 61,803.00 0.00
12011 Totals 64,043.32 2,240.32 61,803.00
. Grand Totals 1,430,216.40 530.216.40 900,000.00
.
.
.
.
(": r-;
\._...~ : \
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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:
March 15 , 1999.
Time of Meeting:
7 :00 o'clock P.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:
$900,000 Urban Renewal Tax Increment Revenue Bond, Taxable Series 1999A.
Resolution authorizing the issuance.
Such additional matters as are set forth on the additional 6 page(s) attached
hereto. (number)
City Council
This notice is given at the direction of the pursuant to Chapter 21,
Code of Iowa, and the local rules of said governmental body.
.
.
.
March 15
, 1999
The City Council of Dubuque, Iowa, met in regular
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Terrance M. DU<:Jgan
following named Council Members:
Roy'"Buol, John Markham, Ann Michalski,
Dan Nicholson, Joe Robbins, Dirk Voetberg
Absent: None
*********
- 2 -
session, in the
7:00 o'clock~.M., on
, in the chair, and the
.
.
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r...
~ :
CIG03.TXT
5/91
'.r ("'\ r 1\ I it,
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CITY CLERK'S CERTIFICATION TO COUNTY AUDITOR
Pursuant to the provisions of Section 76.2 of the Code of Iowa, I do hereby certify
that attached hereto is a true and correct copy of the Resolution authorizing the issuance
of $900,000 Urban Renewal Tax Increment Revenue Bonds, Taxable Series 1999A, and
levying a tax therefor adopted by the Council of the City of Dubuque, Iowa, on the date
thereof, the original of which is on file in the records of the undersigned.
Dated this 16th day of
March
, 1999.
(CITY SEAL)
-----------------------------------------------------------------------------------------------------------
COUNTY AUDITOR'S CERTIFICATE
I, Denise Dolan , County Auditor of Dubuque County, Iowa,
hereby certify that on the 16th day of March , 1999 there was
filed in my office the Resolution of the City Council of Dubuque, Iowa, adopted on the
15th day of March , 1999, said Resolution levying a tax for the
purpose of paying principal and interest on $900,000 of Urban Renewal Tax Increment
Revenue Bonds, Taxable Series 1999A, and authorizing the issuance of said Bonds, all
duly certified upon the form attached above.
tJ-t/v~>~ tfJ1- ~f41~ j.. ~/ '9tr, OJ b~ I [1i~~
County Auditor of Dubuque ounty, Iowa U
(COUNTY SEAL)
DCORNELL\176840\1 \1 0422052
'.
REGISTERED
CERTIFICATE NO. R-l
STATE OF IOWA
COUNTY OF DUBUQUE
CITY OF DUBUQUE
URBAN RENEWAL TAX INCREMENT
REVENUE BOND
TAXABLE SERIES 1999A
REGISTERED
$900,000
~
Maturity
Bond Date
As described
herein
As described
herein
March 18, 1999
The City of Dubuque, Iowa, a municipal corporation organized and existing under
and by virtue of the Constitution and laws of the State of Iowa (the "Issuer"), for value
received, promises to pay from the source and as hereinafter provided, on the maturity
dates indicated herein, to
AMERICAN TRUST & SAVINGS BANK
DUBUQUE, IOWA
c;...
.. or registered assigns, the principal sum of NINE HUNDRED THOUSAND DOLLARS
($900,000) in lawful money of the United States of America, on the maturity date shown
above, only upon presentation and surrender hereof at the office of the City Treasurer,
Paying Agent of this issue, or its successor, with interest on said sum from the date hereof
until paid at the rate per annum specified herein, payable on June 30, 1999, and
semiannually thereafter on the 1st day of June and December in each year.
This Bond shall bear interest from its date of delivery at the initial rate of seven
and one-quarter percent (7.25%) per annum (the "Initial Rate"), which Initial Rate shall
be adjusted thereafter on each of April 1, 2002, April 1, 2005 and April 1, 2008 (each an
"Adjustment Date"). Interest shall be calculated by American Trust & Savings Bank,
Dubuque, Iowa (the "Original Purchaser") on each Adjustment Date for the ensuing
three-year period to equal the prime rate of interest as published in the Money Rate
section of The Wall Street Journal, minus one-half of one percent (0.50%) (the "Adjusted
Rate"). In no event shall the Adjusted Rate cause the rate of interest borne by the Bonds
to exceed nine percent (9%) or to be less than six percent (6%).
.
This Bond shall mature in the principal amounts set forth on the Debt Service
Schedule attached hereto as Exhibit A and incorporated herein by this reference. As set
forth on said Debt Service Schedule, principal shall be payable on December 31, 2001
and semiannually thereafter on June 30th and December 31st of each year in the amounts
.
.
.
set forth therein until principal and interest are fully paid, except that the final installment
of the entire balance of principal and interest, if not sooner paid, shall become due and
payable on June 30, 2011. On each Adjustment Date, the Debt Service Schedule shall be
adjusted by the Original Purchaser to reflect the Adjusted Rate to be borne by this Bond
for the succeeding three-year period, calculated as described above. Principal maturities
shall be adjusted to the extent practicable to provide for substantially level payments of
principal and interest in each year. Such revised Exhibit A thereafter shall be deemed to
be incorporated herein by reference and made a part hereof and supersede and replace the
Debt Service Schedule initially attached to this Bond.
Interest and principal shall be paid to the registered holder of the Bond as shown
on the records of ownership maintained by the Registrar as of the 15th day of the month
next preceding such interest payment date. Interest shall be computed on the basis of a
360-day year of twelve 30-day months.
THE ISSUER DOES NOT INTEND OR REPRESENT THAT THE INTEREST
ON THIS BOND WILL BE EXCLUDED FROM GROSS INCOME FOR FEDERAL
INCOME TAX PURPOSES UNDER SECTION 103 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, AND THE ISSUER IS NOT OBLIGATED TO TAKE
ANY ACTION TO ATTEMPT TO SECURE ANY SUCH EXCLUSION. THE
HOLDER OF THIS BOND THEREFORE SHOULD TREAT THE INTEREST
THEREON AS BEING SUBJECT TO FEDERAL INCOME TAXATION.
This Bond is issued pursuant to the provisions of Section 403.9 of the Code of
Iowa, as amended, for the purpose 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 Urban Renewal Plan for the Dubuque Industrial Center/South
Economic Development District, including those costs associated with the funding of an
economic development grant to Advanced Data-Comm, Inc., an Iowa corporation,
pursuant to and under the conditions set forth in a Development Agreement dated as of
November 16, 1998 by and among the City of Dubuque, ADC Properties, L.C., an Iowa
limited liability company (the "Developer"), and Advanced Data-Comm, Inc., in
conformity to a Resolution of the Council of said City duly passed and approved. This
Bond is not an indebtedness within the meaning of any statutory provisions, or a general
obligation of the City.
This Bond may be called for redemption by the Issuer and paid before maturity on
any date, from any funds regardless of source, in whole or from time to time in part, by
giving thirty days' notice of redemption by registered mail, to the registered owner of the
Bond. The terms of redemption shall be par, plus accrued interest to date of call.
.
.
.
Ownership of this Bond may be transferred only by transfer upon the books kept
for such purpose by the City Treasurer, the Registrar. Such transfer on the books shall
occur only upon presentation and surrender of this Bond at the office of the Registrar,
together with an assignment duly executed by the owner hereof or his duly authorized
attorney in the form as shall be satisfactory to the Registrar. Issuer reserves the right to
substitute the Registrar and Paying Agent but shall, however, promptly give notice to
registered Bondholders of such change. All Bonds shall be negotiable as provided in
Article 8 of the Uniform Commercial Code and Section 384.83(5) of the Code of Iowa,
subject to the provisions for registration and transfer contained in the Bond Resolution.
This Bond, as provided in the Bond Resolution of which notice is hereby given
and is hereby made a part hereof, is payable from and secured by a pledge of the tax
increment revenues collected in respect of the Developer's properties located within the
Dubuque Industrial Center/South Economic Development District (the "Project Area"), as
defined and provided in said Resolution, as referred to and authorized in subsection 2 of
Section 403.19 of the Code of Iowa, as amended ("incremental taxes"). There has
heretofore been established and the City covenants and agrees that it will maintain in
force an ordinance providing for the division of incremental taxes within the Project Area
for the establishment of a sinking fund to meet the principal of and interest on this Bond
as the same becomes due. This Bond is not payable in any manner by general taxation
and under no circumstances shall the City be in any manner liable by reason of the failure
of said tax increment revenues to be sufficient for the payment hereof.
And it is hereby represented and certified that all acts, conditions and things
requisite, according to the laws and Constitution of the State of Iowa, to exist, to be had,
to be done, or to be performed precedent to the lawful issue of this Bond, have been
existent, had, done and performed as required by law.
IN TESTIMONY WHEREOF, said City by its City Council has caused this Bond
to be signed by the manual signature of its Mayor and attested by the manual signature of
its City Clerk, with the seal of said City impressed hereon, and authenticated by the
manual signature of an authorized representative of the Registrar, the City Treasurer,
Dubuque, Iowa.
ATTEST:
By: ~Il~
CIty, erk
(Seal) By:
Date of authentication: March 18
, 1999
.
.
.
This is one of the Bonds described in the within mentioned
Resolution, as registered by the City Treasurer.
CITY TREASURER
By:
Registrar
Registrar and Transfer Agent: City Treasurer
Paying Agent: City Treasurer
It is certified that the following is a correct and complete copy of the opinion of bond
counsel issued as of the date of delivery of the issue of which this Bond is a part.
~()~
City erk
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No. ) the within Bond
and does hereby irrevocably constitute and appoint attorney in fact to
transfer the said Bond on the books kept for registration of the within Bond, with full
power of substitution in the premises.
Dated:
(Person( s) executing this Assignment sign( s) here)
SIGNATURE )
GUARANTEED)
.
.
.
IMPORTANT-READ CAREFULLY
The signature(s) to this Power must correspond with the name(s) as written upon
the face of the certiticate( s) or bond( s) in every particular without alteration or
enlargement or any change whatever. Signature guarantee must be provided in
accordance with the prevailing standards and procedures of the Registrar and
Transfer Agent. Such standards and procedures may require signature to be
guaranteed by certain eligible guarantor institutions that participate in a recognized
signature guarantee program.
INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER
Name ofTransferee(s)
Address of Transferee( s)
Social Security or Tax.
Identification Number of
Transferee( s)
Transferee is a(n):
Individual *
Partnership
Corporation
Trust
*If the Bond is to be registered in the names of multiple individual owners, the names of
all such owners and one address and social security number must be provided.
The following abbreviations, when used in the inscription on the face of this Bond,
shall be construed as though written out in full according to applicable laws or
regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
IT TEN - as joint tenants with right of survivorship
and not as tenants in common
IA UNIF TRANS MIN ACT - ..........Custodian..........
(Cust) (Minor)
under Iowa Uniform Transfers
to Minors Act................
(State)
DCORNELL\175662\1 \10422052
Sent by: C~TY OF DUBUQUE
R.go~ved: 31 9/S9 ":06;
319 589 4149; 03/09/99 11 :30; Jerlax #78; Page 4/8
319582184' .> c~.~ u~ uueuYua. ~-W.-
}IAR. -09' 99 tTUE) 10: 02 AMERI CAN TRUST
TEL:3195821841
P. 003
03109/1999 Page!
.erN OF DUBUQUE-$900,OOO TlF in support_C?f ~c properties
Compound Period .........: Semiannual
Nominal Annual Rate .... :
Effective Annual Rate on :
Periodic Rate .................. :
Dally Rate ........................:
7.250 D,4
7.381 o"c.
3.6250 %
0.02014 GAl
CASH FLOW CA l' A
Event
_.. .,. .
Start Oata
0311811999
06fJ0I1999
12J3112oo1
Amcunt Number Period
End Oate
1 Lean
2 Payment
3 Payment
900,000.00
Interest Only
64.043.32
1
5 Semiannual 0613012001
20 Semiannual 06/30/2011
AMORTIZATlON SCHEDULE - Normal Amortization, 360 Day Year
Date Paymen~_. Interest Principal Balance
... .
Loan 03118/1999 900,000.00
1 0613011999 18,850.00 18,850.00 0.00 900,000.00
2 12131/1999 32,625.00 32,625.00 0.00 900,000.00
. 1999 Totals 51,475.00 51,475.00 0.00
3 06I3Cl12000 32,625.00 32,625.00 0.00 900,000.00
4 12/31/2000 32.625.00 32,625.00 0.00 900,000.00
2000 Totals 65,250.00 65,250.00 0.00
5 08/3012001 32,625.00 32,825.00 0.00 900,000.00
6 12/3112001 64,043.32 . 32,625.00 31.418.32 B68,581.68
2001 Totals se,e6a.32 65,250.00 31,418.32
7 0613012002 64.043.32 31.486.09 32,557.23 836.024.45
B 1213112002 64,043.32 30,305.89 33,737.43 802,287.02
2002 Totals 128,086.64 61,791.98 66,294.66
9 06/30/2003 64.043.32 29.082.90 34,960.42 767,326.60
10 1213112003 64,043.32 27,815.59 36.227.73 731,098.87
2003 Totals 128,086.64 56,898.49 71,188.15
11 06/30J2oo4 64,043.32 26,502.33 37,540.99 693,557.88
12 12J31/2C04 64,043.32 25,14 ~47 38,901.85 854,6S6.03
2004 TctaLs 128,086.64 51.84",.80 76,442.84
13 0613012005 64,043.32 23,731.28 40,312.04 614,343.99
14 1213112005 64,043.32 22,269.97 41In3.35 572.570.64
. 2005 Totals 128,086.64 46,001.25 82,085.39
15 06/30/2006 64.043.32 20.755.69 43.287.63 529,283.01
18 1213112006 64,043.32 19,186.51 44,856.81 ~,426.20
ent by: CIfvOF DUBUQUE
ReC8~~gd: 31 Q/Q9 11:06;
MAl -09' 99[TUE) 10:0Z AMERICAN TRUST
319 589 4149; 03/09/99 11 :31; JeHax #78; Page 5/8
~lw~a~1041 .~ ~~I- ~r ~wuw~~_. . -w- 4
TEL:3195821841
. ..
.rrv OF oueu.9UE-$900,OOO TIF .I.~ support at A~ Properties
Cate
2006 Totals
17 O6130J2007
18 '~1/2007
2001 T etals
19 06J30/2008
20 1213112008
2008 Tatall
21 0613012009
22 1213112009
2009 Totals
23 06/30120'0
24 1213112010
20'0 TotalS
2S 061301201'
2011 Tetals
.rand Totals
.
. Pavment
128,066.64
64,043.32
64,043.32
128,086.84
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,086.64
64,043.32
64,043.32
128,056.64
64,043.32
64,043.32
1,430,216.40
Interest
39.942.20
11,SSO.45
15,875.45
33,435.90
14,129.38
12.319.98
26,449.34
10,445.01
8,502.07
18,947.08
6,488.70
4.402.34
10,891.04
2,240.32
2,240.32
530,216.40
~rindpal
88,144.44
46,482.87
48.167.87
94,650.74
49,913.96
51,723.34
101,637.30
53,598.31
55,541.25
109,139.56
57,554.62
59,640.98
117,195.60
61.803.00
61,803.00
900,000.00
P. 004
03109/1989 Page 2
BalsrtClt
437,943.33
389,775.46
339,861.50
288,138.16
234,53S.8S
178,998.60
121.443.98
61,803.00
0.00
.
..
.
-,
~ ~ " ;
CIG-IO
9/93
TRANSCRIPT CERTIFICATE
I, the undersigned, being first duly sworn, do hereby depose and certify that I am
the duly appointed, qualified and acting Clerk of the City of Dubuque, Iowa, and that as
such Clerk I have in my possession or have access to the complete corporate records of
said City and of its Council and officials, and that I have carefully compared the transcript
hereto attached with the aforesaid corporate records and that said transcript hereto
attached is a true and complete copy of all the corporate records in relation to the
authorization, issuance and disposition of $900,000 Urban Renewal Tax Increment
Revenue Bond, Taxable Series 1999A, of said City dated March 18, 1999, and that said
transcript hereto attached contains a true and complete statement of all the measures
adopted and proceedings, acts and things had, done and performed up to the present time,
in relation to the authorization, issuance and disposition of said Bond, and that said
Council consists of a Mayor and six (6) Council Members, and that said offices were duly
and lawfully filled by the individuals listed in the attached transcript as of the dates and
times referred to therein.
I further certify that said City is and throughout the period of said proceedings has
been governed under the Mayor/Council form of municipal government authorized by
Chapter 372, City Code of Iowa, under the provisions of its charter as recorded with the
Secretary of State.
I further certify that all meetings of the City Council of said City at which action
was taken in connection with said Bond was open to the public at all times in accordance
with a notice of meeting and tentative agenda, a copy of which was timely served on each
member of the Council and was duly given at least twenty-four hours prior to the
commencement of the meeting by notification of the communications media having
requested such notice and posted on a bulletin board or other prominent place designated
for the purpose and easily accessible to the public at the principal office of the Council all
pursuant to the provisions and in accordance with the conditions of the local rules of the
Council and Chapter 21, Code of Iowa.
I further certify that no City officer or employee has any interest in the contract for
the sale of the Bond or any matter incidental thereto, according to my best knowledge and
belief.
-1-
.
.
.
I further certify the stated officers whose signatures appear below are now the duly
qualified and acting officials of the City, possessed of the offices as designated below,
to-wit:
Mayor:
City Clerk: Mary A. Davis
~d~
ngmal SIgnature)
Treasurer: Gerald Hird
~
.. f-' .. .~. .'h' _ ..
(Original Signature)
WITNESS my hand and the seal of said City hereto attached this ;.S d, day
~ , 1999, at Dubuque, Iowa.
of
(SEAL)
~-5~
City Clerk, buque, Iowa
-2-
.
.
.
STATE OF IOWA
COUNTY OF DUBUQUE
)
) SS
)
Subscribed and sworn to before me by Mary A. Davis, on this /~ day of
~ ' 1999. ....__~~
(SEAL)
DCORNELL\176860\1 \1 0422052
.,
/
Public in and for Dubuque County, Iowa
-3-
.
.
.
~
t ;_
~ ;
ClREV2A.TXT
5/91
DELIVERY CERTIFICATE
We the undersigned, Mayor, Clerk and Treasurer, do hereby certify that we are the
officers, respectively above indicated, of a municipal corporation in the State of Iowa,
known as the City of Dubuque, Iowa; that pursuant to the provisions of Section 403.9,
Code of Iowa, there have been heretofore lawfully authorized and this day by us lawfully
executed, issued, caused to be registered and authenticated and delivered one fully
registered Urban Renewal Tax Increment Revenue Bond, Taxable Series 1999A, of said
City of Dubuque, Iowa, in the amount of $900,00, dated March 18, 1999, bearing interest
and maturing as set forth therein (the "Bond").
The Bond has been executed with the manual signature of the Mayor and the
manual signature of the Clerk of said City.
The Bond has been delivered to the purchaser, namely:
American Trust and Savings Bank
Dubuque, Iowa
and have been paid for in accordance with the terms of the contract of sale and at a price
of par and accrued interest.
We further certify that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of said City, or the
titles of the aforesaid officers to their respective positions, or the validity of the aforesaid
Bond, or the pledge of the Tax Increments collected in respect of certain properties within
the Dubuque Industrial Center/South Economic Development District (the "Project
Area"), as defined and provided in the issuance Resolution including the Technology Park
(AD C) TIF Account and portion of taxes to be paid into such account as referred to and
authorized by subsection 2 of Section 403.19 of the Code of Iowa, as amended (the
"incremental taxes"). There has heretofore been established and the City covenants and
agrees that it will maintain in force an ordinance providing for the division of incremental
taxes within the Project Area for the establishment of a sinking fund which shall be used
to pay the principal of and interest on the Bond as the same may become due. The Bond
is not payable in any manner by general taxation and under no circumstances shall the
City be in any manner liable by reason of the failure of said Tax Increments to be
sufficient for the payment thereof.
i.
.
.
~
We further certify that each of the officers whose signatures appear on the Bond
were in occupancy and possession of their respective offices at the time the Bond was
executed and do hereby adopt and affirm their signatures appearing in said Bond.
We further certify that the present financial condition of said City is as follows:
Assessed and taxable value of all
taxable property within the City,
except moneys and credits and tax
free lands (Year 1997),
according to the last completed State
and County tax lists (100% - Before
Rollback):
$1,776,342,000.00
Total general obligation bonded
indebtedness of the City:
$ 9,440,000.00
Total revenue bonded indebtedness payable
from incremental taxes ofthe Project Area,
including above mentioned Bond:
$ 900,000.00
All other general obligation indebtedness
of any kind (including stamped warrants,
warrants, judgments, contracts of purchase
or lease/purchase, self-insurance or local
government risk pool obligations and other
revenue bonds issued under Code Section 403.9):
$ 3,890.000.00
-2-
.
.
.
ow .,
.
IN WITNESS WHEREOF, we have hereunto affixed our hands at Dubuque, Iowa,
this 18th day of March , 1999.
(jJ
Mayor
(SEAL)
~()~
City Clerk
\ ~/~;;l/
')CU'~,,~~=;:~
Treasurer
I, the undersigned, the officer of the bank indicated by my signature hereto, do
hereby certify that I am personally acquainted with the persons whose signatures, each
known to me to be genuine, are signed to the foregoing certificate; and that I know that
the persons aforesaid are the officers of the City named in said certificate, indicated
respectively by the title appended to the respective signature and whose signatures appear
on the Bond mentioned in said certificate.
Dated at Dubuque, Iowa, the date last above written.
AMERICAN TRUST & SAVINGS BANK
By:
Its: 1-: (
(Title)
DCORNELL\176846\1 \1 0422052
-3-
.
We further certify that each of the officers whose signatures appear on the Bond
were in occupancy and possession of their respective offices at the time the Bond was
executed and do hereby adopt and affirm their signatures appearing in said Bond.
We further certify that the present financial condition of said City is as follows:
Assessed and taxable value of all
taxable property within the City,
except moneys and credits and tax
free lands (Year 1997),
according to the last completed State
and County tax lists (100% - Before
Rollback):
$ II 770,3 'i'd. I DDO
.
Total general obligation bonded
indebtedness of the City: 4> .tJF & /'30/ q g __
r~(1J [:rIVe ::-4-t-- ~~p#A..1
Total revenue bonded indebtedness payable
from incremental taxes of the Project Area,
including above mentioned Bond:
$ 1. '-I t/tJ, (~O , 00
I '
$ 70~ 000, c;O
.
All other general obligation indebtedness
of any kind (including stamped warrants,
warrants, judgments, contracts of purchase
or lease/purchase, self-insurance or local
government risk pool obligations and other
revenue bonds issued under Code Section 403.9):
$ 3, ~1 OJ f)cJO
, '
.
-2-
.
.
.
"
CIREV2A.TXT
5/91
DELIVERY CERTIFICATE
We the undersigned, Mayor, Clerk and Treasurer, do hereby certify that we are the
officers, respectively above indicated, of a municipal corporation in the State of Iowa,
known as the City of Dubuque, Iowa; that pursuant to the provisions of Section 403.9,
Code of Iowa, there have been heretofore lawfully authorized and this day by us lawfully
executed, issued, caused to be registered and authenticated and delivered one fully
registered Urban Renewal Tax Increment Revenue Bond, Taxable Series 1999A, of said
City of Dubuque, Iowa, in the amount of $900,00, dated March 18, 1999, bearing interest
and maturing as set forth therein (the "Bond").
The Bond has been executed with the manual signature of the Mayor and the
manual signature of the Clerk of said City.
The Bond has been delivered to the purchaser, namely:
American Trust and Savings Bank
Dubuque, Iowa
and have been paid for in accordance with the terms of the contract of sale and at a price
of par and accrued interest.
We further certify that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of said City, or the
titles of the aforesaid officers to their respective positions, or the validity of the aforesaid
Bond, or the pledge of the Tax Increments collected in respect of certain properties within
the Dubuque Industrial Center/South Economic Development District (the "Project
Area"), as defined and provided in the issuance Resolution including the Technology Park
(AD C) TIF Account and portion of taxes to be paid into such account as referred to and
authorized by subsection 2 of Section 403.19 of the Code of Iowa, as amended (the
"incremental taxes"). There has heretofore been established and the City covenants and
agrees that it will maintain in force an ordinance providing for the division of incremental
taxes within the Project Area for the establishment of a sinking fund which shall be used
to pay the principal of and interest on the Bond as the same may become due. The Bond
is not payable in any manner by general taxation and under no circumstances shall the
City be in any manner liable by reason of the failure of said Tax Increments to be
sufficient for the payment thereof.
.
.
.
We further certify that each of the officers whose signatures appear on the Bond
were in occupancy and possession of their respective offices at the time the Bond was
executed and do hereby adopt and affirm their signatures appearing in said Bond.
We further certify that the present financial condition of said City is as follows:
Assessed and taxable value of all
taxable property within the City,
except moneys and credits and tax
free lands (Year 1997),
according to the last completed State
and County tax lists (100% - Before
Rollback):
Total general obligation bonded
indebtedness of the City:
Total revenue bonded indebtedness payable
from incremental taxes of the Project Area,
including above mentioned Bond:
All other general obligation indebtedness
of any kind (including stamped warrants,
warrants, judgments, contracts of purchase
or lease/purchase, self-insurance or local
government risk pool obligations and other
revenue bonds issued under Code Section 403.9):
-2-
$ 1,776,342,000.00
$ 9,440,000.00
$ 900.000.00
$ 3,890.000.00
\' ...-
. We further certify that each of the officers whose signatures appear on the Bond
were in occupancy and possession of their respective offices at the time the Bond was
executed and do hereby adopt and affirm their signatures appearing in said Bond.
We further certify that the present financial condition of said City is as follows:
Assessed and taxable value of all
taxable property within the City,
except moneys and credits and tax
free lands (Year 1997),
according to the last completed State
and County tax lists (100% - Before
Rollback):
$1,776,342,000.00
Total general obligation bonded
indebtedness of the City:
$ 9,440,000.00
.
Total revenue bonded indebtedness payable
from incremental taxes of the Project Area,
including above mentioned Bond:
$ 900,000.00
All other general obligation indebtedness
of any kind (including stamped warrants,
warrants, judgments, contracts of purchase
or lease/purchase, self-insurance or local
government risk pool obligations and other
revenue bonds issued under Code Section 403.9):
$ 3,890.000.00
.
-2-
.
.
.
AHLERS, COONEY, DORWEILER, HAYNIE, SMITH & ALLBEE, P.C.
ATTORNEYS AT LAW
KENNETH H. HAYNIE
H. RICHARD SMITH
JOHN F. MCKINNEY, JR.
l. W. ROSEBROOK
RICHARD G. SANTI
EDGAR H. BITTLE
RONALD l. SUTPHIN
TERRY l. MONSON
LANCE ^- COPPOCK
DAVID H. lUGINBlll
MARK W. BEERMAN
EDWARD W. REMSBURG
RANDAll H. STEFANI
ELIZABETH GREGG KENNEDY
WADE R. HAUSER III
WilLIAM J. NOTH
DAVID SWINTON
LINDA l. KNIEP
JOHN D. HINTZE
PETER PASHlER
IVAN T. WEBBER
JANE B. MCALLISTER
JAMES C. HANKS
R. MARK CORY
SERGE H. GARRISON
RONALD l. PEELER
ANDREW J. BRACKEN
STEVEN l. SERCK
MICHAEL J. EASON
STEVEN M. NADEL
ElIZABETH ^- GROB
JENNIFER ^- BENNING
PATRICIA^- WESTEMEYER
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309-2231
OF COUNSEL
PAUL F. AHLERS
PHILIP J. DORWEllER
ROBERT G. AllBEE
515-243-7611
515-243-2149 FAX
JAMES EVANS COONEY
(1917-1998)
March 10, 1999
Mr. James Burke
Community and Economic Development
Department
City of Dubuque
50 W. 13th Street
Dubuque, Iowa 52001-4864
RE: $900,000 Urban Renewal Tax Increment Revenue Bond
Taxable Series 1999A
Dear Mr. Burke:
With this letter I am enclosing the necessary proceedings and closing certificates to
complete action on the issuance of the above Bond, consisting of the following:
1. Resolution approving Second Amendment tmDevelopment Agreement.
This resolution approves of the form of Second Amendment to Development Agreement
between the City, ADC Properties, L.C. and Advanced Data-Comm, Inc., the effect of
which is to add a new Section 4.11 to the original Development Agreement.
An extra copy of the resolution is enclosed to be completed as the original
and returned to us for our transcript of the action taken.
2. Second Amendment to Development Agreement. Three (3) executiQll
copieswf the Second Amendment to Development Agreemeqt are enclosed, each of
which should be dated and signed by the parties thereto. Each+ofthethree p~s should,
retain an original cop" of the same, with a photocopy being returned to us for our'!,
transcript of the action taken.
I also am enclosing a marked page from the Second Amendment to
Development Agreement reflecting the changes made to the initial draft of the same.
.
-.
.
March 10, 1999
Page 2
3. Resolution authorizing the issuance. This resolution authorizes the issuance
of the Bond and approves of the Purchase Agreement with American Trust & Savings
Bank (the "Purchaser"). There are blank spaces in the form of Bond included as part of
the resolution which may be left blank.
I would suggest that a certified copy of this resolution be provided to the
Purchaser at the time of closing.
An extra copy of the resolution is enclosed to be completed as the original
and returned to us for our transcript of the action taken.
4. Auditor's Certificate. A copy of the resolution authorizing the issuance
should be filed in the office of the County Auditor following its passage by the City
Council, using the form of certification enclosed. Extra copies of the certification are
enclosed for delivery to the Auditor and to be returned to us for our transcript of the
action taken.
5. Purchase Agreement. Three (3) e.xecution copie&ofthe Purc~
Agreement w-e enclosed, each of which should be dated and signed by the parties thereto.
The City sltould maintain an original coPY\l and another copy should bedetivte4\> the
Purchaser at the time of closir~. The third co,y should be returned to ~ for our
transcript of the action taken.
I also am enclosing a marked page reflecting a change made in the first
paragraph of the Purchase Agreement.
6. Original Bond No. R-l. The original Bond is enclosed, with attached
Exhibit A, consisting of the Debt Service Schedule prepared by the Purchaser. The Bond,
should be signed by the Mayor and the City Clerk on the third page thereof, and the,pl,~ ;II
of the City should be impressed next to the Clerk's signaQe. The _ of authentication
will be the date of closing (expected to be March 18, 1999) The Registrar should
authenticate the Bond in the fourth page, and the City Clerk also should sign below the
certification relating to the bond counsel opinion. The original Bond should be delivered
to the Purchaser at the time of closinB' I would suggest that you keep a photocopy of the
executed Bond, and would ask that you return a photocopy of the completed Bond to us
following the closing for our transcript of the action taken.
.
.
March 10, 1999
Page 3
7. Delivery Certificate. Two (2) execution copie~ of a Delivery Certificatettre
enclosed, each of which should be signed by the City offici~s identified on the third page\t;
thereof. Prior to executioA, the financial information setiorth on page two should b6
inserted in the spaces provided. ".The signatures of the City officills should be attested by~
a representative of the Purchaser, ",ing the form of certification included on the third
page. This certificate should be dated as of the date of closing.
An extra copy of the Delivery Certificate is enclosed to be completed as the
original and returned to us for our transcript of the action taken. The original copy should
be maintained by the City.
8. Transcript Certificate. Two (2) execution copies of a Transcript Certificate
are enclosed, each of which should be s_:,o)'the City ()fficials identifiei on the..d.
...~I and thereafter by the City Clerk in the presence of a notary public. This
certificate may be dated as of the date of execution. The original copy of the Transcript
Certificate should be retained by the City, with the other copy being returned to us for our
transcript of the action taken.
9. Legal Opinion. I also am enclosing a draft of the legal opinion that we
would expect to deliver to the Purchaser at the time of closing.
Because a very rapid closing is anticipated following the City Council's meeting,
prompt attention will need to be given to obtaining the required signatures and making the
necessary filing with the County Auditor. Our copies of the above items should be
returned to us by no later than Wednesday, March 17, 1999 so that we will have an
opportunity to review the same prior to closing. We will forward our signed legal opinion
to you once we have confirmed that all is in order.
At the time of closing, the original Bond and original copies of the Purchase
Agreement and legal opinion will be delivered to the Purchaser, along withPb2!2popi~~ .
of the Resolution authorizing issuance and the Second Amendment to Development
Agreement. The City will thereupon receive the proceeds of the Bond in the amount of
$900,000. At that point, the capitalized interest and the reserve fund amounts should be
set aside for their respective purposes, and the balance of the Bond proceeds should be
held until such time as the City is ready to close its transaction with the Developer and
fund the Economic Development Grant.
-.
.
.
4
March 10, 1999
Page 4
Should you have any questions concerning any of the foregoing instructions, or
with respect to the documents themselves, please don't hesitate to contact me.
WJN:dc
encl.
cc: Barry Lindahl
Mary A. Davis (w/originals)
DCORNELL\177093\1 \1 0422052
Yours very truly,
~
William J. Noth
FOR THE FIRM