POD Parking Facility Tax Revenue BondsTHE CITY OF
DLTB ~ E MEMORANDUM
Masteri~iece on the Mississippi
June 13, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 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 Dave Heiar is recommending approval of 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 financing
and construction of this public parking ramp is based on the February 5, 2007
Development Agreement with the Diamond Jo Casino. The Development Agreement
requires the Diamond Jo to execute a Minimum Assessment Agreement, and the City
pledges only the taxes generated from the new value of the project for the public
parking ramp. There is no City guarantee involved. However, this is a significant
commitment of taxpayer resources as the property taxes from the actual assessed
valuation of the new Diamond Jo Casino are being committed to this project, while
these property taxes would be available for other public purposes if they were not being
dedicated to the construction of the public parking ramp.
While this approval will provide authority for the City Council to issue up to $25,000,000
in bonds, the actual amount will be determined once the public parking ramp project is
bid.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~~,
Mic ael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Jonathan Swain, Peninsula Gaming, LLC Chief Operating Officer
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
June 6, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director -~-
SUBJECT: 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 of a resolution approving 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.
BACKGROUND
On June 4, 2007, the City Council set a public hearing on the proposed issuance of not
to exceed $25,000,000 in order to provide funds to pay the costs of an urban renewal
project in the Greater Downtown Urban Renewal District, specifically funding a public
parking ramp in the Port of Dubuque based on a Development Agreement dated
February 5, 2007 with the Diamond Jo.
The Diamond Jo selected the Robert W. Baird Company to sell the bonds needed to
finance the public parking ramp in the Port of Dubuque. The actual size of the bond sale
will be determined after the bids are opened and the low bid with alternatives has been
determined (July 13). The Diamond Jo will establish an escrow account to cover a
portion of the project costs. The balance of the parking ramp costs will be paid for by the
sale of bonds. Baird will proceed with the placement of bonds not to exceed
$25,000,000 prior to the award of bids which has been set for a special Council meeting
on July 26, 2007. The bond sale will also cover the interest and carrying costs
associated with the two year lapse between the sale of bonds and the payment of
property taxes on the Diamond Jo's new casino.
The Development Agreement requires the company to 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.
DISCUSSION
The City's bond attorney, Bill Noth has provided the City with the appropriate
proceedings to approve the RESOLUTION APPROVING AND AUTHORIZING A FORM
OF LOAN AGREEMENT AND AUTHORIZING AND PROVIDING FOR THE ISSUANCE
OF $25,000,000 IN URBAN RENEWAL TAX INCREMENT REVENUE NOTES.
RECOMMENDATION/ACTION STEP
I recommend that the City Council follow the proceedings attached, provided to us by
our bond counsel, and approve a resolution approving and authorizing a form of loan
agreement and authorizing and providing for the issuance of not to exceed $25,000,000
in Urban Renewal Tax Increment Revenue Notes.
Attachments
Cc: Jenny Larson, Budget Director
Ken TeKippe, Finance Director
F:\USERS\DHeiar\Diamond Jo\PH memo on TIF bonds.doc
e
(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 said
meeting is as follows:
Not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds
• Public hearing on the issuance.
• Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City Clerk, Dubuque, Iowa
2007
The City Council of Dubuque, Iowa, met in session, in the
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at o'clock _.M.,
on the above date. There were present Mayor , in the chair, and
the following named Council Members:
Absent:
*******
-2-
The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of the issuance of not to exceed $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, and that notice of the proposed action by the Council to institute proceedings
for the issuance of said Urban Renewal Tax Increment Revenue Bonds had been
published pursuant to the provisions of Section 403.9 of the Code of Iowa.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the issuance of said Urban Renewal Tax Increment
Revenue Bonds. The Clerk advised the Mayor and the Council that written
objections had been filed. The Mayor then called for oral objections to the issuance of
said Urban Renewal Tax Increment Revenue Bonds and were made.
Whereupon, the Mayor declared the time for receiving oral and written objections to be
closed.
(Attach here a summary of objections
received or made, if any}
-3-
The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member cline introduced and
delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION
INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE
ISSUANCE OF NOT TO EXCEED $25,000,000 URBAN RENEWAL TAX
INCREMENT REVENUE BONDS," and moved its adoption. Council Member
M i c h a l s k i seconded the motion to adopt. The roll was called and
the vote was,
AYES: Buol, Braig, Cline, Connors, Jones,
Lynch, Michalski
NAYS: None
Whereupon, the Mayor declared said Resolution duly adopted as follows:
RESOLUTION NO. 351-07
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION. FOR THE ISSUANCE OF NOT
TO EXCEED $25,000,000 URBAN RENEWAL TAX
INCREMENT REVENUE BONDS
WHEREAS, pursuant to notice published as required by law, this Council has held
a public meeting and hearing upon the proposal to institute proceedings for the issuance
of not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds for the
purpose of 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, and has considered the extent of objections
received from residents or property owners as to said proposed issuance; and, accordingly
-4-
the following action is now considered to be in the best interests of the City and residents
thereof:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Council does hereby institute proceedings and takes
additional action for the sale and issuance in the manner required by law of not to exceed
$25,000,000 Urban Renewal Tax Increment Revenue Bonds for the foregoing purposes.
Section 2. The City Manager is authorized and directed to proceed on behalf of
the City with arrangements for the sale of the Urban Renewal Tax Increment Revenue
Bonds, to select a date for the sale thereof, to cause to be prepared such notice and sale
information as may appear appropriate, to publish and distribute the same on behalf of
the City and this Council and otherwise to take all action necessary to permit the sale of
the Urban Renewal Tax Increment Revenue Bonds on a basis favorable to the City and
acceptable to the Council.
PASSED AND APPROVED this 18th day
Mayor
ATTEST:
~-
ity Clerk
June , 2007.
~.. o
-5-
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
day of , 2007.
City Clerk, Dubuque, Iowa
SEAL
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-6-
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 said
meeting is as follows:
Not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds
• Public hearing on the issuance.
• Resolution instituting proceedings to take additional action.
Such additional matters as are set forth on the additional page(s) attached hereto.
(number)
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
City Clerk, Dubuque, Iowa
2007
The City Council of Dubuque, Iowa, met in
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at
on the above date. There were present Mayor
the following named Council Members:
session, in the
o'clock _.M.,
in the chair, and
Absent:
***~***
-2-
The Mayor announced that this was the time and place for the public hearing and
meeting on the matter of the issuance of not to exceed $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, and that notice of the proposed action by the Council to institute proceedings
for the issuance of said Urban Renewal Tax Increment Revenue Bonds had been
published pursuant to the provisions of Section 403.9 of the Code of Iowa.
The Mayor then asked the Clerk whether any written objections had been filed by
any City resident or property owner to the issuance of said Urban Renewal Tax Increment
Revenue Bonds. The Clerk advised the Mayor and the Council that written
objections had been filed. The Mayor then called for oral objections to the issuance of
said Urban Renewal Tax Increment Revenue Bonds and were made.
Whereupon, the Mayor declared the time for receiving oral and written objections to be
closed.
(Attach here a summary of objections
received or made, if any)
-3-
The Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member
introduced and
delivered to the Clerk the Resolution hereinafter set out entitled "RESOLUTION
INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE
ISSUANCE OF NOT TO EXCEED $25,000,000 URBAN RENEWAL TAX
INCREMENT REVENUE BONDS," and moved its adoption. Council Member
the vote was,
AYES:
NAYS:
seconded the motion to adopt. The roll was called and
Whereupon, the Mayor declared said Resolution duly adopted as follows:
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE
ADDITIONAL ACTION FOR THE ISSUANCE OF NOT
TO EXCEED $25,000,000 URBAN RENEWAL TAX
INCREMENT REVENUE BONDS
WHEREAS, pursuant to notice published as required by law, this Council has held
a public meeting and hearing upon the proposal to institute proceedings for the issuance
of not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds for the
purpose of 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, and has considered the extent of objections
received from residents or property owners as to said proposed issuance; and, accordingly
-4-
the following action is now considered to be in the best interests of the City and residents
thereof:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That this Council does hereby institute proceedings and takes
additional action for the sale and issuance in the manner required by law of not to exceed
$25,000,000 Urban Renewal Tax Increment Revenue Bonds for the foregoing purposes.
Section 2. The City Manager is authorized and directed to proceed on behalf of
the City with arrangements for the sale of the Urban Renewal Tax Increment Revenue
Bonds, to select a date for the sale thereof, to cause to be prepared such notice and sale
information as may appear appropriate, to publish and distribute the same on behalf of
the City and this Council and otherwise to take all action necessary to permit the sale of
the Urban Renewal Tax Increment Revenue Bonds on a basis favorable to the City and
acceptable to the Council.
PASSED AND APPROVED this day of , 2007.
Mayor
ATTEST:
City Clerk
-5-
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
day of , 2007.
City Clerk, Dubuque, Iowa
SEAL
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-6-
AHLERS ~COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309-2231
PHONE: 515-243-7611
FAX: 515-243-2149
WWW.AHLERSLAW.COM
WILLIAM J. NOTH
wnoth~ahlerslaw.com
June 4, 2007
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West I3th Street
Dubuque, Iowa 52001-4864
RE: Urban Renewal Tax Increment Revenue Bonds
Dear Mr. TeKippe:
Direct Dial:
(515)246-0332
With this letter I am enclosing suggested proceedings to be acted upon by the
Council on the date fixed for the hearing on the issuance of the above mentioned Bonds,
pursuant to the provisions of Code Section 403.9. A certificate to attest the proceedings
is also enclosed.
These proceedings are prepared to show as a first step the receipt of any oral or
written objections from any resident or property owner to the proposed action of the
Council to issue the Bonds. A summary of objections received or made, if any, should be
attached to the proceedings. After all objections have been received and considered if the
Council decides not to abandon the proposal to issue the Bonds, a form of resolution
follows that should be introduced and adopted, entitled "Resolution Instituting
Proceedings to Take Additional Action for the Issuance of Not to Exceed $25,000,000
Urban Renewal Tax Increment Revenue Bonds."
The Council is required by statute to adopt the resolution instituting proceedings to
issue the Bonds at the hearing -- or an adjournment thereof. If necessary to adjourn, the
minutes should be revised to accommodate that action.
In the event the Council decides to abandon the proposal to issue said Bonds, then
the form of resolution included in said proceedings should not be adopted. We would
WISHARD & GAILY - 1888; GUERNSEY & GAILY - 1893: BAILV $ STIPP - 1901: $TIPP, PERRY. BANNISTER & S?ARZINGER - 1914: BANNISTER. CARPENTER,
AHLERS 8. GOONEY - 1950: AHLERS. GOONEY, DORWEILER, ALLBEE, HAYNIE 8 SMITH - 1974: AHLERS. GOONEY, DORWEILER. HAYNIE, SMITH 8. ALLBEE, P.C. - 1990
F June 4, 2007
Page 2
Section 403.9 of the Code of Iowa provides that any resident or property owner of
the City may appeal the decision to take additional action to issue the Bonds, to the
District Court of a county in which any part of the City is located, within 15 days after
such additional action is taken, but that the additional action is final and conclusive
unless the court finds that the Council exceeded its authority.
In the event an appeal is filed by any resident or property owner, please see that
we are notified immediately; and, as soon as available, a copy of the notice of appeal
should be furnished our office for review.
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.
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.
Yours very truly,
William J. Noth
WJN:dc
encl.
cc: Barry Lindahl (w/encl.)
Jeanne Schneider (w/originals)
David Heiar (w/encl.)
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