Loading...
HomeMy WebLinkAbout1985-11-26 ResolutionExmcoPy Authorization and Issuance Proceedings File No. 4051 (Auth) Iowa City, Iowa November 26 1985 The City Council of Iowa City, Iowa, met in special session on the 26th day of November , 1985, at 6:30 o'clock p m., at the Civic Center in the City. The meeting was called to order and there were present McDonald Mayor, in the chair, and the following named Council Members: Ambrisco, Baker, Brdahl, McDonald, Zuber. Absent: Dickson, Strait The Council investigated and found that notice of intention to issue Industrial Development Revenue Bonds, Series 1985 (Southgate Development Company, Inc. Project) in an aggregate principal amount not to exceed $1,100,000, had, as directed by the City Council, been duly given according to law and a hearing held thereon and the Council authorized the Issuer to proceed with the issuance of such Bonds. Council Member Zuber introduced a Resolution entitled: "Resolution authorizing the issuance and sale of Industrial Development Revenue Bond (Southgate Development Company, Inc. Project) of the City of Iowa City, Iowa, in an aggregate principal amount not to exceed $1,100,000; the execution and delivery of a Lender Loan Agreement with First National Bank, Iowa City, Iowa providing the terms and sale of such bond; the execution and delivery of a Loan Agreement with Southgate Development Company, Inc. providing for the repayment of the loan of the proceeds of such bond, and related matters", and moved its adoption, seconded by Council Member Ambrisc� After due consideration of said resolution by the Council, the Mayor put the question on the motion and upon the roll being called the following named Council Members voted: Ayes: Brdahl, McDonald, Zuber, Ambrisco, Baker. Nays: None ABSWr: Dickson, Strait -1- BELIN. HARRIS. HELMICK. HEARTNEY 6 TESDELL. LAWYERS, DES MOINES. IOWA Whereupon the Mayor declared said Resolution duly adopted and approval was signed thereto.. Upon motion and vote, the meeting adjourned. i ayor Attest: JhdI J Cle k (Seal) I -2- BELIN, HARRIS, HELMICK, HEARTNEY A TESDELL, LAWYERS. DES MOINES, IOWA V. 85-340 RESOLUTION Resolution authorizing the issuance and sale of Industrial Development Revenue Bond (Southgate Development Company, Inc. Project) of the City of Iowa City, Iowa, in an aggregate principal amount not to exceed $1,100,000; the execution and delivery of a Lender Loan Agreement with First National Bank, Iowa City, Iowa providing the terms and sale of such bond; the execution and delivery of a Loan Agreement with Southgate Development Company, Inc. providing for the repayment of the loan of the proceeds of such bond, and related matters, WHEREAS, the City of Iowa City, Iowa, in the County of Johnson, State of Iowa (the "Issuer"), is an incorporated municipality authorized and empowered by the provisions of Chapter 419 of the Code of Iowa, 1985, as amended (the "Act"), to issue revenue bonds for the purpose of financing the cost of acquiring, by construction or purchase, land, buildings, improvements and equipment, or any interest therein, suitable for the use of any commercial enterprise or nonprofit organization which the City Council finds is consistent with the revitalization plan for an area of the City designated a revitalization area pursuant to the provisions of Chapter 404 of the Code of Iowa, 1985, as amended; and WHEREAS, the Issuer has made the necessary arrangements with Southgate Development Company, Inc. (the "Company"), an Iowa corporation, for the renovation and rehabilitation of the Company's existing 24,500 square foot four story building for use as office and retail space, (the "Project") located at 325 East Washington, which will promote the welfare of the Issuer and its citizens; and OHEREAS, the Issuer has determined that the Project is located within Urban Renewal Area of the Issuer and is consistent with the revitalization plan approved for said Area; and WHEREAS, it is necessary and advisable that provisions,be made for the issuance of Industrial Development Revenue Bond, Series 1985 (Southgate Development Company, Inc. Project), of the Issuer in an aggregate principal amount not to exceed $1,100,000 (the "Bond") as authorized and permitted by the Act to finance the cost of the Project to that amount; and WHEREAS, the Issuer will loan the proceeds of the Bond to the Company pursuant to the provisions of a Loan Agreement dated as of September 1, 1985 between the Issuer and the Company the obligation of which will be sufficient to pay the principal of, redemption premium, if any, and interest on the Bond as and when the same shall be due and payable; and WHEREAS, the Bond will be sold pursuant to and will be secured as provided by a Lender Loan Agreement to be dated as of September 1, 1985 (the "Lender Loan Agreement") by and between the Issuer and First National Bank, Iowa City, Iowa (the "Lender"). -3- BELIN, HARRIS. HELMICK. HEARTNEY & TESDELL. LAWYERS. DES MOINES. IOWA �/� ` WHEREAS, the rights of the Issuer in and to the Loan Agreement are assigned to the Lender under the Lender Loan Agreement; and WHEREAS, notice of intention to issue the Bond has been published and this Council has conducted a public hearing pursuant to such published notice, all as required by the Act and Section 103(k) of the Internal Revenue Code, and has determined that it is necessary and advisable to proceed with the financing of the Project; and WHEREAS, the Issuer has arranged for the sale of the Bond to the Lender; NOW, THEREFORE, BE IT RESOLVED by the City Council of the Issuer, as follows: Section l Authorization of the Bond. In order to finance the cost of the Project, the Bond shall be and the same is hereby authorized, determined and ordered to be issued in an aggregate principal amount not to exceed $1,100,000. The Bond shall be issued in fully registered form, numbered R-1, and shall be dated as of the date of issuance and delivery thereof and shall be executed, shall be in such form, shall be payable, shall have such prepayment provisions, shall bear interest at such rates, and shall be subject to such other terms and conditions as are set forth therein and in the Lender Loan Agreement and Loan Agreement. The Bond and the interest thereon do not and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the Issuer, but are limited obligations of the Issuer payable solely from revenues and other amounts derived from the Loan Agreement and the Project and shall be secured by an assignment of the Loan Agreement and the revenues derived therefrom. Forms of the Lender Loan Agreement, the Bond and the Loan Agreentent are before this meeting and -are by this reference incorporated in this Bond Resolution, and the City Clerk is hereby directed to insert them into the minutes of the City Council and to keep them on file. Section 2 Lender Loan Agreement Sale of the Bond. IiP order to provide for the sale of the Dond to the Lender and the conditions with respect to the delivery thereof, the Mayor and City Clerk shall execute, acknowledge and deliver in the name and on behalf of the Issuer, the Lender Loan Agreement in substantially the form submitted to the City Council, which is hereby approved in all respects. The sale of the Bond to the'Lender is hereby approved'and the Mayor and City Clerk of the Issuer are hereby authorized and directed to deliver the Bond to the Lender. The Lender shall be authorized as the Issuer's depository and agent to make advances of not to exceed $1,100,000 to the Company from time to time pursuant to Section 1.04 of the Lender Loan Agreement to effect the making of the loan of the proceeds of sale of the Bond to the Company pursuant to Section 1.02 of the Lender Loan Agreement. -4- ISELIN, HARRIS, HELMICK. HEARTNEY & TESDELL. LAWYERS. DES MOINES. IOWA a���j Section 3. Repayment of Loan. The Loan Agreement requires the Company in each year to pay amounts as loan payments sufficient to pay the principal of, redemption premium, if any, and interest on the Bond when and as due and the payment of such amounts by the Company to the tender pursuant to the Loan Agreement is hereby authorized, approved and confirmed. Section 4. Loan Agreement. In order to provide for the loan of the proceeds of the Bond to acquire and equip the Project and the payment by the Company of an amount sufficient to pay the principal of and premium, if any, and interest on the Bond, the Mayor and City Clerk shall execute, and deliver in the name and on behalf of the Issuer the Loan Agreement in substantially the form submitted to the City Council, which is hereby approved in all respects. Section 5. Statement of Election. The Issuer hereby elects to have the provisions of Section 103(b)(6)(D) of the Internal Revenue Code of 1954, as amended, apply to the Bond, and the Mayor and City Clerk are hereby directed to file or cause to be filed an appropriate statement relating to such election with the Internal Revenue Service. Section 6. Miscellaneous. The Mayor and/or the City Clerk are hereby authorized and directed to execute, attest, seal and deliver any and all documents and do any and all things deemed necessary to effect the issuance and sale of the Bond and the execution and delivery of the Loan Agreement and the Lender Loan Agreement, and to carry out the intent and purposes of this resolution, including the preamble hereto. Section 7. Severability. The provisions of this resolution are hereby declared to be separable and if any section, phrase or provisions shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions. Section 8. Repealer. All resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 9. Effective Date. This resolution shall bec9ze effective immediately upon adoption. Passed and approved this I-- d of November ayor A7�t�jtest /Owienfi � XOwwJ Ci y Clerk (Seal) Z -V 9ELIN, HARRIS. HELMICK, HEARTNEY & TESDELL. LAWYERS. DES MOINES. IOWA a��`G i/ State of Iowa County of Johnson SS: City of Iowa City I, the undersigned, do hereby certify that I am the duly appointed, qualified and acting City Clerk of the City of Iowa City, in Johnson County, State of Iowa, and as such I have in my possession, or have access to, the complete corporate records of said City and its Council and officers; that I have carefully compared the transcript hereto attached with the aforesaid corporate records and that said transcript hereto attached is a true, correct and complete copy of all the corporate records in relation to the adoption of the resolution therein set out. WITNESS my hand and the corporate seal of said City hereto. affixed this 26th day of November 1985. City Clerk (Seal) i ! BELIN. HARRIS. HELMICK. HEARTNEY 8 TESDELL. LAWYERS. DES MOINES. IOWA -1, 6 ' r J/ f Authorization and Issuance Proceedings File No. IDR -9696 (Ruth) FOR YOUR RECORDS Iowa City, Iowa November 26 1985 The City Council of Iowa City, Iowa, met in special session on the 26th day of November , 1985, at 6:30 o'clock P m., at the Civic Center in the City. The meeting was called to order and there were present McDonald Mayor, in the chair, and the following named Council Members: Ambrisco, Baker, Erdahl, McDonald, Zuber. Absent: Dickson. Strait The Council investigated and found that notice of intention to issue Industrial Development Revenue Bonds, Series 1985 (The Economy Advertising Company Project) in an aggregate principal amount not to exceed $1,800,000, had, as directed by the City Council, been duly given according to law and a hearing held thereon and the Council authorized the Issuer to proceed with the issuance of such Bonds. Council Member Ambrisco introduced a Resolution entitled: "Resolution authorizing the issuance and sale of Industrial Development Revenue Bond (The Economy Advertising Company Project) of the City of Iowa City, Iowa, in an aggregate principal amount not to exceed $1,800,000; the execution and delivery of a Lender Loan Agreement with Hills Bank and Trust Company providing the terms and sale of such bond; the execution and delivery of a Loan Agreement with The Economy Advertising Company providing for the repayment of the loan of the proceeds of such bond, and related matters", and moved its adoption, seconded by Council Member Zuber After due consideration of said resolution by the Council, the Mayor put the question on the motion and upon the roll being called the following named Council Members voted: Ayes: McDonald, Zuber, Ambrisco, Baker, Erdahl. Nays: None ABSENT: Dickson, Strait _ -1- a/.2 7 i is Whereupon the Mayor declared said Resolution duly adopted and approval was signed thereto. Upon motion and vote, the meetin adjourned. ayor Attest: GCle k (Seal) a/,?7 ..... _... _ 85-341 RESOLUTION Resolution authorizing the issuance and sale of Industrial Development Revenue Bond (The Economy Advertising Company Project) of the City of Iowa City, Iowa, in an aggregate principal amount not to exceed $1,800,000; the execution and delivery of a Lender Loan Agreement with Hills Bank and Trust Company providing the terms and sale of such bond; the execution and delivery of a Loan Agreement with The Economy Advertising Company providing for the repayment of the loan of the proceeds of such bond, and related matters, WHEREAS, the City of Iowa City, Iowa, in the County of Johnson, State of Iowa (the "Issuer"), is an incorporated municipality authorized and empowered by the provisions of Chapter 419 of the Code of Iowa, 1985, as amended (the "Act"), to issue revenue bonds for the purpose of financing the cost of acquiring, by construction or purchase, land, buildings, improvements and equipment, or any interest therein, suitable for the use of any industry or industries for the manufacturing, processing or assembling of any agricultural or manufactured products or of any commercial enterprise engaged in storing, warehousing or distributing products of agriculture, mining or industry, or of a national, regional or divisional headquarters facility of a company that does multistate business; and WHEREAS, the Issuer has made the necessary arrangements with The Economy Advertising Company (the "Company"), an Iowa corporation, for the acquisition by construction or purchase of land, building, equipment and improvements suitable for use as a factory and warehouse which the Company will use for the purpose of manufacturing, processing, storing, warehousing and distributing products of agriculture, mining or industry (the "Project"), located at the Northwest corner of the intersection of Heinz Road and the Highway 6 Bypass and is legally described as follows: Lot 4 B D I. First Addition to Iowa City, Iowa; according to the recorded plat thereof within the corporate boundaries of the Issuer; and WHEREAS, it is necessary and advisable that provisions be made for the issuance of Industrial Development Revenue Bond, Series 1985 (The Economy Advertising Company Project), of the Issuer in an aggregate principal amount not to exceed $1,800,000 (the "Bond") as authorized and permitted by the Act -to finance the cost of the Project to that amount; and WHEREAS, the Issuer will loan the proceeds of the Bond to the Company pursuant to the provisions of a Loan Agreement dated as of November 1, 1985 (the "Loan Agreement") between the Issuer and the Company the obligation of which will be sufficient to pay the principal of, redemption premium, if any, and interest on the Bond as and when the same shall be due and payable; and WHEREAS, the Bond will be sold pursuant to and secured as provided by a Lender Loan Agreement to be dated as of November 1, 1985 (the "Lender Loan Agreement") by and between the Issuer and Hills Bank and Trust Company (the "Lender"); and -3- WHEREAS, the rights of the Issuer in and to the Loan Agreement are assigned to the Lender under the Lender Loan Agreement; and WHEREAS, notice of intention to issue the Bond has been published and this Council has conducted a public hearing pursuant to such published notice, all as required by the Act and Section 103(k) of the Internal Revenue Code, and has determined that it is necessary and advisable to proceed with the financing of the Project; and WHEREAS, the Issuer has arranged for the sale of the Bond to the Lender; NOW, THEREFORE, BE IT RESOLVED by the City Council of the Issuer, as follows: Section 1. Authorization of the Bond. In order to finance the cost of the Project, the Bond shall be and the same is hereby authorized, determined and ordered to be issued in an aggregate principal amount not to exceed $1,100,000. The Bond shall be issued in fully registered form, numbered R-1, and shall be dated as of the date of issuance and delivery thereof and shall be executed, shall be in such form, shall be payable, shall have such prepayment provisions, shall bear interest at such rates, and shall be subject to such other terms and conditions as are set forth therein and in the Lender Loan Agreement and Loan Agreement. The Bond and the interest thereon do not and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the Issuer, but are limited obligations of the Issuer payable solely from revenues and other amounts derived from the Loan Agreement and the Project and shall be secured by an assignment of the Loan Agreement and the revenues derived therefrom. Forms of the Lender Loan Agreement, the Bond and the Loan Agreement are before this meeting and are by this reference incorporated in this Bond Resolution, and the City Clerk is hereby directed to insert them into the minutes of the City Council and to keep them on file. Section 2. Lender Loan Agreement; Sale of the Bond. In order to provide for the sale of the Bond to the Lender and the conditions with respect to the delivery thereof, the Mayor and City Clerk shall execute, acknowledge and deliver in the name and on behalf of the Issuer, the Lender Loan Agreement in substantially the form submitted to the City Council, which is hereby approved in all respects. The sale of the Bond to the Lender is hereby approved and the Mayor and City Clerk of the Issuer are hereby authorized and directed to deliver the Bond to the Lender. The Lender shall be authorized as the Issuer's depository and agent- to make advances of not to exceed $1,800,000 to the Company from time to time pursuant to Section 1.04 of the Lender Loan Agreement to effect the making of the loan of the proceeds of sale of the Bond to the Company pursuant to Section 1.02 of the Lender Loan Agreement. -4- a1,?1 Section 3. Repayment of Loan. The Loan Agreement requires the Company in each year to pay amounts as loan payments sufficient to pay the principal of, redemption premium, if any, and interest on the Bond when and as due and the payment of such amounts by the Company to the Lender pursuant to the Loan Agreement is hereby authorized, approved and confirmed. Section 4. Loan Agreement. In order to provide for the loan of the proceeds of the Bond to acquire and equip the Project and the payment by the Company of an amount sufficient to pay the principal of and premium, if any, and interest on the Bond, the Mayor and City Clerk shall execute, and deliver in the name and on behalf of the Issuer the Loan Agreement in substantially the form submitted to the City Council, which is hereby approved in all respects. Section 5. Statement of Election. The Issuer hereby elects to have the provisions of Section 103(b)(6)(D) of the Internal Revenue Code of 1954, as amended, apply to the Bond, and the Mayor and City Clerk are hereby directed to file or cause to be filed an appropriate statement relating to such election with the Internal Revenue Service. Section 6. Miscellaneous. The Mayor and/or the City Clerk are hereby authorized and directed to execute, attest, seal and deliver any and all documents and do any and all things deemed necessary to effect the issuance and sale of the Bond and the execution and delivery of the Loan Agreement and the Lender Loan Agreement, and to carry out the intent and purposes of this resolution, including the preamble hereto. Section 7. Severability. The provisions of this resolution are hereby declared to be separable and if any section, phrase or provisions shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions. Section 8. Repealer. All resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 9. Effective Date: This resolution shall become effective immediately upon adoption. Passed and approved this26th y of November 1965. ayor Attest: Cify Clerk (Seal) :612 State of Iowa County of Johnson SS: City of Iowa City I, the undersigned, do hereby certify that I am the duly appointed, qualified and acting City Clerk of the City of Iowa City, in Johnson County, State of Iowa, and as such I have in my possession, or have access to, the complete corporate records of said City and its Council and officers; that I have carefully compared the transcript hereto attached with the aforesaid corporate records and that said i transcript hereto attached is a true, correct and complete copy of all the corporate records in relation to the adoption of the resolution j therein set out. II WITNESS my hand and the corporate seal of said City hereto affixed this 26th day of November 1985. ��� 7e ✓ j Ci Clerk i (Seal) j i i 1 i Ma