POD Parking Facility Tax Revenue BondsTHE CTTY OF
DUB E
.Masterpiece on the Mississippi
MEMORANDUM
July 11, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 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 adoption of a resolution
approving the form of offering documents to be used in conjunction with 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.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
July 9, 2007
TO: Michael Van Milligen, City Manager
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FROM: David J. Heiar, Economic Development Director ° ~`x
SUBJECT: 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 consideration and adoption of a resolution
approving the form of offering documents to be used in conjunction with 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 16, 2007, the City Council held 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.
Construction bids for the Port of Dubuque Public Parking Facility are to be received on
July 25, 2007. If a generally favorable bid is received, and representatives of Diamond
Jo LLC are in agreement, representatives of Robert W. Baird & Co. have suggested that
the marketing of the Bonds then commence, so that the City Council will be able to
consider a formal bond purchase agreement (detailing the terms under which said firm
would agree to purchase the Bonds from the City) at the August 14, 2007 special
Council meeting. To do that, the preliminary Official Statement will need to be finalized
and executed by the Mayor before it can be distributed to potential Bond investors. The
enclosed resolution authorizes those steps to be taken.
Distribution of the preliminary Official Statement to potential investors does not obligate
the City Council to agree to sell the bonds and authorize their issuance at the August
14, 2007 meeting. That can only be accomplished through the Council's approval of a
bond purchase agreement and passage of a resolution authorizing issuance of the
Bonds.
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 with this proposed bond sale.
DISCUSSION
The City's bond attorney, Bill Noth has provided the City with the appropriate
proceedings to approve the RESOLUTION APPROVING THE FORM OF OFFERING
DOCUMENTS TO BE USED IN CONJUNCTION WITH 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 the form of offering documents to
be used in conjunction with 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:\USERS1DHeiar\Diamond Jo1Res for TIF Port of Dubuque.doc
Council Member Patricia cline introduced the following
Resolution entitled "RESOLUTION APPROVING THE FORM OF OFFERING
DOCUMENTS FOR THE ISSUANCE OF NOT TO EXCEED $25,000,000 URBAN
RENEWAL TAX INCREMENT REVENUE BONDS, TAXABLE SERIES 2007, AND
AUTHORIZING EXECUTION AND DISTRIBUTION OF THE SAME", and moved its
adoption. Council Member Kevin Lynch seconded the motion to adopt.
The roll was called and the vote was:
AYES; Braig, Buol, Cline, Connors, Jones,
Lynch, Michalski
NAYS: None
Whereupon the Mayor declared the following Resolution duly adopted:
RESOLUTION NO. 386-07
RESOLUTION APPROVING THE FORM OF OFFERING
DOCUMENTS FOR THE ISSUANCE OF NOT TO EXCEED
$25,000,000 URBAN RENEWAL TAX INCREMENT REVENUE
BONDS, TAXABLE SERIES 2007, AND AUTHORIZING EXECUTION
AND DISTRIBUTION OF THE SAME
WHEREAS, this Council has previously instituted proceedings and resolved to
take additional action for the authorization and the issuance of not to exceed $25,000,000
Urban Renewal Tax Increment Revenue Bonds (the "Bonds") 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 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 (described herein as the "Parking 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
WHEREAS, this Council has previously held a public hearing on the plans and
specifications and form of contract with respect to the construction of the Parking
Facility, and construction bids with respect to the same are expected to be received on
July 25, 2007 and considered by this Council at a special meeting to be held on August
14, 2007; and
WHEREAS, the City Manager has proposed that the Mayor be authorized to
execute a preliminary Official Statement prepared for the purpose of offering the Bonds
for sale to the public following the receipt of said construction bids and a determination
by the City Manager and representatives of Diamond Jo LLC that the preliminary
marketing of the Bonds should commence; and
WHEREAS, a preliminary form of Official Statement has been prepared for the
purpose of offering the Bonds for sale to the public; and
WHEREAS, it is appropriate that the form of the preliminary Official Statement
be approved and deemed final upon completion of the same, and that the preliminary
Official Statement be used in connection with the offering of the Bonds for sale to the
public.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. Approval of Offering Documents. The preliminary Official
Statement for the Bonds is authorized and approved in substantially the form and content
now before this meeting, but subject to completion or modification as may be deemed
necessary or advisable by the City Manager, upon the advice of legal counsel, and may
be executed by the Mayor on behalf of the City and delivered to representatives of Robert
W. Baird & Co., as the anticipated underwriter of the Bonds, at such time and with such
changes, modifications, additions or deletions therein as the City Manager shall
determine to be appropriate, the Mayor's execution thereof to constitute conclusive
evidence of his approval of any and all changes from the form and content of the same
now before this meeting. The preliminary Official Statement in the form executed by the
Mayor shall be deemed final for purposes of SEC Rule 15c2-12, and is authorized to be
distributed in connection with the offering of the Bonds for sale.
.+
Passed and approved this 16 t n day of J u 1 y , 2007.
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Mayor
ATTEST:
Jeanne Schneider
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 17 t h
day of July , 2007.
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rty Clerk, Dubuque, Iowa
DCORNELL/541209.] /MSWord~10422~78
ORIGINAL
(This Notice to be posted)
NOTICE AND CALL OF PUBLIC MEETING
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: J u 1 y 16 , 2007.
Time of Meeting: 6 : 3 0 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:
Resolution approving the form of offering documents for the issuance of
not to exceed $25,000,000 Urban Renewal Tax Increment Revenue Bonds,
Taxable Series 2007, and authorizing execution and distribution of the
same.
Such additional matters as are set forth on the additional 15 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.
Jeanne F. Schneider
City Clerk
Dubuque, Iowa
July 16 ,2007
The City Council of Dubuque, Iowa, met in R e g u 1 a r session, in the
Auditorium, Carnegie-Stout Public Library, Dubuque, Iowa, at 5:30 o'clock P .M.,
on the above date. There were present Mayor Roy n . Buo 1
in the chair, and the following named Council Members:
Karla Braig, Pat Cline, Joyce Connors,
Ric Jones, Kevin Lynch, Ann Michalski
Absent: Non e