Port of Dubuque Parking Ramp Revenue BondsTHe crnr aF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
May 17, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution Fixing Date for Public Hearing on Proposal to Issue Not to
Exceed $25,000,000 of Urban Renewal Tax Increment Revenue Bonds to
Finance the Construction of a Public Parking Ramp in the Port Of
Dubuque
Economic Development Director David Heiar is recommending approval of a resolution
fixing July 26, 2007 as the date for the public hearing on the issuance of not to exceed
$25,000,000 in Urban Renewal Tax Increment Revenue Bonds to finance the
construction of a public parking ramp in the Port of Dubuque.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
THE CTTY OF
iJUB E
Masterpiece on the Mississippi
MEMORANDUM
May 15, 2007
TO: Michael Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
SUBJECT: Resolution Fixing Date for Public Hearing on proposal to issue not to
exceed $25,000,000 of Urban Renewal Tax Increment Revenue Bonds to
finance the construction of a public parking ramp in the Port of Dubuque.
INTRODUCTION
This memorandum presents for City Council adoption a resolution fixing the date for a
public hearing on the issuance of not to exceed $25,000,000 in Urban Renewal Tax
Increment Revenue Bonds to finance the construction of a public parking ramp in the
Port of Dubuque. The resolution sets the date of public hearing for July 26, 2007.
DISCUSSION
On February 5, 2007, the City Council approved a Development Agreement with the
Diamond Jo, LLC. The general terms of the agreement are as follows.
• Diamond Jo, LLC has agreed to construct a casino with a minimum
140,000 sq ft of floor space at an approximate cost of $45 million.
Construction shall begin within 6 months following final approval of the
design and be completed no later than 18 months from commencement of
construction.
The City will design and construct a public parking ramp by late 2008, at
an estimated cost of approximately $23 million on City owned property.
• Consistent with a previous agreement with the Diamond Jo, they will place
$6.35 million in an escrow account towards the cost of the public parking
ramp. With a construction contingency and depending on the construction
bids, additional dollars may need to be escrowed.
• The City will issue 30-year tax increment financing bonds for the
remaining cost of the public parking ramp, with the repayment revenue
stream coming from a Minimum Property Tax Assessment Agreement
signed by the Diamond Jo on their new casino complex.
• Any costs over 110% of the construction contract must be approved by
the Diamond Jo.
• To achieve the Diamond Jo goal of customers of the public parking ramp
not being charged for parking, the Diamond Jo agreed to the following:
^ The Diamond Jo agrees to pay for the costs of all operations,
maintenance, repair and security of the public parking ramp.
^ The Diamond Jo agrees to contribute $80 per year per space
(estimated at $90,000) to a sinking fund to cover capital repairs and
maintenance.
This will be a public parking ramp owned and operated by the City for use by the
general public.
The City has required that the Company execute a Minimum Assessment Agreement,
and the City pledges only the taxes generated from the new value of the project. There
is no City Guarantee involved.
The City must hold a public hearing whenever it agrees to carry out an Urban Renewal
Project and issues debt for this purpose. The attached instructions from our bond
attorney, Bill Noth of the Ahlers Law firm includes the proceedings and a resolution
setting the public hearing for this proposal.
RECOMMENDATION
I recommend that the City Council adopt the attached resolution fixing the date for a
public hearing on the issuance of not to exceed $25,000,000 in Urban Renewal Tax
Increment Revenue Bond to finance the construction of a public parking ramp in the
Port of Dubuque. The public hearing to approve the issuance will be July 26, 2007.
ACTION STEP
The action step for the City Council is to review the enclosures, and adopt the attached
resolution.
Attachment
F:IUSERS1DHeiarlDiamond Jo\Res to fix ph for TIF Port of Dubuque.doc
AHLERS :GOONEY, P.C.
ATTORNEYS AT LAW
100 COURT AVENUE • SUITE 600
DES MOINES. IOWA 50309-2231
PHONE 515-243-7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
WNOTH~AHLERSLAW.COM
May 14, 2007
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
Direci Dial:
(515)246-0332
RE: Not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds
Dear Mr. TeKippe:
I am enclosing herewith suggested proceedings to be acted upon by the Council in
fixing the date of a meeting on the proposition to issue the above mentioned Bonds and
ordering publication of a notice of hearing consistent with the provisions of Code
Section 403.9. According to the schedule proposed, this action should be considered at
the May 21, 2007 meeting.
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of~publication is to be not less than four clear
dam nor more than twenty days before the date of said public meeting on the issuance of
said Bonds. In computing time, the date of publication should be excluded. If the last
day falls on Sunday, the whole of the following Monday should be excluded.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, together with publisher's affidavit of publication of notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to
the newspaper for publication purposes. A certificate to attest the proceedings is also
enclosed.
WISHARD & BAILY - 1888: GUERNSEY & GAILY - 1893: GAILY ~ STIPP - 1901: STIPP. PERRY. BANNISTER & STARZINGER - 1914: BANNISTER. CARPENTER.
AHLERS 8 GOONEY - 1950: AHLERS, GOONEY, DORWEILER. ALLBEE, HAYNIE & SMITH - 1974; AHLERS, GOONEY. DORWEILER. HAYNIE, SMITH &ALLBEE, P.C. - 1990
' May 14, 2007
Page 2
Should you have any questions pertaining to the proceedings, please don't hesitate
to contact me.
Yours very truly,
William J. Noth
WJN:dc
encl.
cc: David Heiar (w/encl.)
Barry Lindahl (w/encl.)
Jeanne Schneider (w/originals)
DCORNELL\525754.1\WP\10422078
WISHARD & GAILY - 1 BBB: GUERNSEY & GAILY - 1893; BAILY &STIPP - 1901; STIPP. PERRY. BANNISTER & STARZINGER - 1914: BANNISTER. CARPENTER,
AHLERS & GOONEY - 1950: AHLERS, GOONEY, DORWEILER, ALLBEE, HAYNIE & SMITH - 1974; AHLERS, GOONEY, DORWEILER, HAYNIE, SMITH &ALLBEE, P.C. - 1990
ORIGINAL
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: , 2007.
Time of Meeting: o'clock _.M.
Place of Meeting: Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for the
meeting is as follows:
Not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds.
Resolution fixing date for a meeting on the proposition to issue.
Such additional matters as are set forth on the additional page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 2I, Code of
Iowa, and the local rules of the governmental body.
City Clerk, Dubuque, Iowa
2007
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
the above date. There were present Mayor _
and the following named Council Members:
o'clock _.M., on
in the chair,
Absent:
*******
session, in the
-1-
Council Member introduced the following Resolution
entitled "RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION
OF THE ISSUANCE OF NOT TO EXCEED $25,000,000 URBAN RENEWAL TAX
INCREMENT REVENUE BONDS OF DUBUQUE, IOWA, AND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted.
Council Member seconded the motion to adopt. The roll was
called and the vote was,
AYES:
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION FIXING DATE FOR A MEETING ON THE
PROPOSITION OF THE ISSUANCE OF NOT TO EXCEED $25,000,000
URBAN RENEWAL TAX INCREMENT REVENUE BONDS, OF
DUBUQUE, IOWA, AND PROVIDING FOR PUBLICATION OF
NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa,
should issue Urban Renewal Tax Increment Revenue Bonds to the amount of not to
exceed $25,000,000, as authorized by Section 403.9 of the Code of Iowa, for the purpose
of providing funds to pay costs of carrying out a project as hereinafter described; and
WHEREAS, Section 403.9 sets forth the procedural action required to be taken
before the Urban Renewal Tax Increment Revenue Bonds may be issued, and it is
therefore necessary that the action hereinafter described be taken and that the Clerk
publish a notice of the proposal and of the time and place of the meeting at which the
Council proposes to take action thereon and to receive oral and/or written objections from
any resident or property owner of the City to such action.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
-2-
Section 1. That this Council meet in the Auditorium, Carnegie-Stout Public
Library, Dubuque, Iowa, at o'clock _.M., on the day of
2007, for the purpose of taking action on the matter of the issuance
of not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds, the
proceeds of which will be used to provide funds to pay costs of aiding in the planning,
undertaking and carrying out of urban renewal project activities under the authority of
Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plan for
the Greater Downtown Urban Renewal Project Area, including those costs associated
with (i) the construction of a multi-level public parking ramp facility in the Port of
Dubuque, pursuant to the Port of Dubuque Public Parking Facility Development
Agreement dated February 5, 2007 between the City of Dubuque, Iowa and Diamond Jo,
LLC.; (ii) the funding of a debt service reserve fund and a capitalized interest fund for the
Bonds; and (iii) the payment of costs associated with the issuance of the Bonds.
Section 2. That the Clerk is hereby directed to cause at least one publication to be
made of a notice of the foregoing meeting and public hearing, in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The publication shall be not less than four clear days nor
more than twenty days before the date of public meeting on the issuance of said
obligations.
Section 3. The notice of the proposed action to issue the Urban Renewal Tax
Increment Revenue Bonds shall be in substantially the following form:
-3-
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $25,000,000 URBAN RENEWAL
TAX INCREMENT REVENUE BONDS OF THE CITY, AND THE
HEARING ON THE ISSUANCE THEREOF
PUBLIC NOTICE is hereby given that the Council of the City of Dubuque, Iowa,
will hold a public hearing on the day of , 2007, at o'clock
_.M., in the Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at which
meeting the Council proposes to take additional action for the issuance of not to exceed
$25,000,000 Urban Renewal Tax Increment Revenue Bonds in order to provide funds to
pay costs of aiding in the planning, undertaking and carrying out of urban renewal project
activities under the authority of Chapter 403 of the Code of Iowa and the Amended and
Restated Urban Renewal Plan for the Greater Downtown Urban Renewal Project Area,
including those costs associated with (i) the construction of a multi-level public parking
ramp facility in the Port of Dubuque, pursuant to the Port of Dubuque Public Parking
Facility Development Agreement dated February 5, 2007 between the City of Dubuque,
Iowa and Diamond Jo, LLC.; (ii) the funding of a debt service reserve fund and a
capitalized interest fund for the Bonds; and (iii) the payment of costs associated with the
issuance of the Bonds.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of the City to the above action. After all objections have been
received and considered, the Council will at this meeting or at any adjournment thereof,
take additional action for the issuance of the Urban Renewal Tax Increment Revenue
Bonds or will abandon the proposal to issue the obligations. The hearing and appeals
therefrom shall be held in accordance with and governed by the provisions of Section
403.9 of the Code of Iowa.
This notice is given by order of the Council of Dubuque, Iowa, as provided by
Section 403.9 of the Code of Iowa. Code Section 403.9 shall govern this meeting and
action taken thereat.
Dated this day of , 2007.
City Clerk of Dubuque, Iowa
(End of Notice)
-4-
PASSED AND APPROVED this day of , 2007.
Mayor
ATTEST:
City Clerk
-5-
CIG-3
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 the Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by the Council with respect to the matter at the meeting held on the date
indicated in the attachment, which proceedings remain in full force and effect, and have
not been amended or rescinded in any way; that meeting and all action thereat was duly
and publicly held in accordance with a notice of meeting and tentative agenda, a copy of
which was timely served on each member of the Council and posted on a bulletin board
or other prominent place easily accessible to the public and clearly designated for that
purpose at the principal office of the Council (a copy of the face sheet of the agenda being
attached hereto) pursuant to the local rules of the Council and the provisions of Chapter
21, Code of Iowa, upon reasonable advance notice to the public and media at least
twenty-four hours prior to the commencement of the meeting as required by law and with
members of the public present in attendance; I further certify that the individuals named
therein were on the date thereof duly and lawfully possessed of their respective city
offices as indicated therein, that no Council vacancy existed except as may be stated in
the proceedings, and that no controversy or litigation is pending, prayed or threatened
involving the incorporation, organization, existence or boundaries of the City or the right
of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Municipality hereto affixed this
day of , 2007.
City Clerk, Dubuque, Iowa
SEAL
DCORNELL\525908.1\WP\10422078
-6-
O~IGIIVfi~
CIG-18
STATE OF IOWA )
SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of
the City, I have caused a
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF
DUBUQUE, IOWA, ON THE MATTER OF THE PROPOSED
ISSUANCE OF NOT TO EXCEED $25,000,000 URBAN RENEWAL
TAX INCREMENT REVENUE BONDS OF THE CITY, AND THE
HEARING ON THE ISSUANCE THEREOF
of which the clipping annexed to the publisher's affidavit hereto attached is in words and
figures a correct and complete copy, to be published as required by law in the Telegraph
Herald, a legal newspaper published at least once weekly, printed wholly in the English
language, published regularly and mailed through the post office of current entry for more
than two years and which has had for more than two years a bona fide paid circulation
recognized by the postal laws of the United States, and has a general circulation in the
City, and that the Notice was published in all of the issues thereof published and
circulated on the following date:
2007
WITNESS my official signature at Dubuque, Iowa, this day of
.2007.
City Clerk
(SEAL)
DCORNELU525909. t\WP\10422078
AHLERS COON~Y, P.G.
ATTORNEYS AT LAW
100 COURT AVENUE • SUITE 600
DES MOINES. IOWA 50309-2231
PHONE 515-243-7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
WNOTH@AHLERSLAW.COM
May 14, 2007
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4864
Direct Dial:
(515)246-0332
RE: Not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds
Dear Mr. TeKippe:
I am enclosing herewith suggested proceedings to be acted upon by the Council in
fixing the date of a meeting on the proposition to issue the above mentioned Bonds and
ordering publication of a notice of hearing consistent with the provisions of Code
Section 403.9. According to the schedule proposed, this action should be considered at
the May 21, 2007 meeting.
Notice of this meeting must be published at least once in a legal newspaper,
printed wholly in the English language, published at least once weekly, and having
general circulation in the City. The date of publication is to be not less than four clear
dais nor more than twenty days before the date of said public meeting on the issuance of
said Bonds. In computing time, the date of publication should be excluded. If the last
day falls on Sunday, the whole of the following Monday should be excluded.
Also enclosed is an extra copy of the proceedings to be filled in as the original and
certified back to this office, together with publisher's affidavit of publication of notice of
hearing. We are also enclosing an extra copy of the notice of hearing to be delivered to
the newspaper for publication purposes. A certificate to attest the proceedings is also
enclosed.
W ISHARD ~ GAILY - 1888; GUERNSEY $. GAILY - 1893; GAILY ~ $TIPP - 1901; STIPP, PERRY, BANNISTER $~ $TARZINGER - 1914; BANNISTER. CARPENTER.
AHLERS & GOONEY - 1950: AHLERS. GOONEY, DORWEILER, ALLBEE. HAYNIE & SMITH - 1974: AHLERS, GOONEY. DORWEILER. HAYNIE. SMITH 8 ALLBEE. P. C. - 1990
May 14, 2007
Page 2
Should you have any questions pertaining to the proceedings, please don't hesitate
to contact me.
Yours very truly,
William J. Noth
WJN:dc
encl.
cc: David Heiar (w/encl.}
Barry Lindahl (w/encl.)
Jeanne Schneider (w/originals)
DCORNELL\525754. I \WP\ 10422078
WISHARD 8. GAILY - 1888: GUERNSEY 8 GAILY - 1893; GAILY & STIPP - 1901: STIPP, PERRY, BANNISTER 8 STARZINGER - 1914: BANNISTER, CARPENTER,
AHLERS & GOONEY - 1950: AHLERS. GOONEY. DORWEILER. ALLBEE. HAYNIE 8 SMITH - 1974; AHLERS. GOONEY, DORWEILER. HAYNIE. SMITH &ALLBEE. P.C. - 1990