HomeMy WebLinkAbout1983-07-11 CorrespondenceI
NOTICE OF PUBLIC HEARING OF INTENTION
TO ISSUE
COMMERCIAL DEVELOPMENT REVENUE BONDS
(PIPEYARD PARTNERS PROJECT)
Notice is hereby given that a public hearing will be conducted
before the Council of the City of Iowa City, Iowa, in the
Council Chambers at the Civic Center, Iowa City, Iowa, at 7:30
o'clock P.M., on August 2, 1963, on the proposal to issue not
to exceed $550,000 principal amount of the City's Commercial
Development Revenue Bonds (Pipeyard Partners Project) pursuant
to the provisions of Chapter 419 of the Code of Iowa, for the
Purpose of financing all or a portion of the cost of acquiring,
constructing, improving and equipping a multi—unit residential
apartment facility to be located at 320 S. Gilbert and within
the area of and consistent with the City's Neighborhood
Development Plan. The proposed facilities will be owned by
Pipeyard Partners, an Iowa general partnership (the "Company").
It is contemplated that a Loan Agreement will be entered into
between the City and the Company, under which the City would
loan to said Company the proceeds from the sale of the Bonds in
return for loan payments from the Company sufficient to pay the
principal of, interest and premium, if any, on such Bonds as
the same shall fall due.
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Such Bonds, if issued, and the interest thereon will be payable
solely out of the revenues derived from said Loan Agreement and
shall never constitute an indebtedness of said City within the
meaning of any state constitutional provision or statutory
limitation, and shall not constitute nor give rise to a
i pecuniary liability of said City or a charge against its
general credit or taxing powers.
All local residents who appear at said hearing shall be given
an opportunity to express their views for or against the
proposal to issue said Bonds, and at said hearing, or any
adjournment thereof, the Council of said City shall adopt a
resolution determining whether or not to proceed with the
issuance of said Bonds.
By Order of the City Council.
Marian K. Karr, Clerk of the
City of Iowa City, Iowa
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Section 3. The City recognizes that regulations promulgated
under Section 103 of the Internal Revenue Code of 1954, as
amended, may require the taking by this City Council of official
action or "some other similar official action", if interest on
Commercial Development Revenue Bonds issued by the City and used
to acquire, construct, improve and equip such project is to be
exempt from federal income taxes. In order to preserve such
exemption, this Resolution is intended to constitute solely for
federal income tax purposes official action or "some other
similar official action" with respect to the issuance of such
Bonds.
Section 4. That in order to assure the acquisition, con-
struction, improvement and equipping of the proposed facilities
in the City, with the resulting public benefits which will flow
from the operation thereof, it is deemed necessary and advisable
that the Memorandum of Agreement, in the form attached hereto as
Exhibit "A", be approved and that the Mayor of the City be and
hereby is authorized and directed to execute said Memorandum of
Agreement and the City Clerk of the City be and hereby is
authorized to attest the same and to affix the seal of the City
thereto and said Memorandum of Agreement is hereby made a part of
this Resolution.
Section 5. In order that the Project will not be unduly
delayed, Company is hereby authorized to make such commitments,
expenditures and advances toward payment of the costs of the
Project as it considers appropriate, subject to reimbursement
from the proceeds of the Bonds when and if delivered, but
otherwise without liability on the part of the City.
Section 6. That officials of the City are hereby authorized
to take such further action as may be necessary to carry out the
intent and purpose of the Memorandum of Agreement.
Section 7. All Resolutions and Orders or parts thereof, in
conflict herewith are, to the extent of such conflict, hereby
repealed, and this Resolution shall be in full force and effect
immediately upon its adoption.
Adopted and approved July 11, 1983.
City of Iowa City, Iowa
(SEAL)iy 1 �Oiiviiyllle✓
Mary C.Qpeuhauser, Mayor
Attest:
.�LLflSd[ll� SIC /\2A A_/
mar -Ian K. Karr, City Clerk
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CLERK'S CERTIFICATE
I, Marian K. Karr, being first duly sworn do hereby depose
and certify that I am the duly appointed, qualified, and acting
City Clerk of the City of Iowa City, in the County of Johnson,
State of. Iowa; that as such I have in my possession, or have
access to, the complete corporate records of said City and of
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 showing
the action taken by the City Council of said City at a meeting
open to the public on July 11, 1983, regarding the issuance of
not to exceed 5550,000 aggregate principal amount of Commercial
Development Revenue Bonds (Pipeyard Partners Project) of the
City of Iowa City, Iowa, directing publication of Notice of
Intention to Issue, calling a public hearing on the proposal to
issue said Bonds and authorizing execution of a Memorandum of
Agreement; that said proceedings remain in full force and
effect and have not been amended or rescinded in any way; that
sal.d meeting and all action thereat was duly and publicly held,
with members of the public in attendance, 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 28A, Iowa Code,
and 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.
Witness my hand and the Corporate Seal of said City hereto
affixed this lith day of July, 1983.
(SEAL) Marian K. Karr, City Clerk
State of Iowa )
SS.:
County of Johnson )
Subscribed and sworn to before me this day, the date last
above written.
Notary/Public i and for the
(SEAL) State of Iowa
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(This Notice to be Posted)
NOTICE. AND CALL OF COUNCIL MEETING
Governmental Body:
Date of Meeting:
Time of Meeting:
Place of Meeting:
The City Council of
Iowa City, Iowa.
July 11, 1983
7:30 P.M.
Council Chambers
Civic Center
Iowa City, Iowa
F'uc.ta.�y' ? tt-83 ^'eC •
Y;o25P•.r.
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:
11. Resolution Regarding the Issuance of Not To
Exceed $550,000 Aggregate Principal Amount of
Commercial Development Revenue Bonds (Pipeyard
Partners Project) of the City of Iowa City, Iowa,
Directing Publication of Notice of Intention to
Issue, Calling a Public Hearing on the Proposal to
Issue Said Bonds and Authorizing Execution of a
Memorandum of Agreement.
2. Such additional matters as are set forth on
the additional one (1) page(s) attached hereto
(attach copy of agenda).
This notice is given at the direction of the Mayor,
pursuant to Chapter 28A, Iowa Code, as amended, and the local
rules of said governmental body.
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AMLERS. COONEY. DORWEILER. HAYNIE h SMITH. LAWYERS. DEB MOINES, IOWA
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Mar an
K.
Karr,
Clerk
of the
City
of
Iowa
City,
Iowa
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EXHIHIT "A"
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT is between the City of
Iowa City, in Johnson County, Iowa, party of the first part
(hereinafter referred to as the "City"), and Pipeyard Partners,
an Iowa general partnership, party of the second part
(hereinafter referred to as the "Company").
1, Preliminary Statement, Among the matters of mutual
inducement which have resulted in the execution of this
Agreement are the following:
(a) The City is an incorporated municipality of the State
Of Iowa, authorized and empoweredby the provisions of Chapter
419 of the Code of Iowa (the "Act "), to issue Commercial
Development Revenue Bonds for the purpose of defraying all or a
Portion of the cost of acquiring and improving land, buildings
and improvements suitable for use of any commercial enterprise
which the City Council, as the governing body, finds is
consistent with an urban renewal plan adopted by the City
pursuant to the Act and Chapter 403, Code of Iowa; and
(b)The City has adopted the Neighborhood Development Plan
and in furtherance of efforts to rehabilitate and redevelop
the designated Urban Renewal Area therein, the City proposes to
issue its Commercial Development Revenue Bonds (the "Bonds")
and to loan to the Company the proceeds from the sale of said
Bonds to enable the Company to finance the cost of acquiring,
constructing, improving and equipping a multi -unit residential
apartment facility (herein referred to as the "project"); and
(c) It is considered essential that acquisition and
construction related to the Project commence at the earliest
practicable date, and that orders be placed for acquiring the
necessary improvements and equipment. However, before
commencing the Project, the Company desires satisfactory
assurances from the City that the proceeds from the sale of the
City's Commercial Development Revenue Bonds, which, when
issued, will be used to finance the Project, will be made
available in an amount sufficient to finance all or a portion
of the cost of the Project. The amount of the Bonds requested
to be issued is presently estimated not to exceed $550,000,
(d) Representatives of the City have indicated the will-
ingness of the City to proceed with and effect such financing
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as an inducement to the Company to locate the Project in the
City and the City has advised the Company that, subject to due
compliance with all requirements of law and the obtaining of
all necessary consents and approvals and to the happening of
all acts, conditions and things required to exist, happen ana
be performed precedent to and in connection with such financing
in due time, form and manner as required by law, the City, by
virtue of such statutory authority as may now exist or may
hereafter be conferred, will issue and sell its Bonds in an
amount sufficient to finance all or a portion of the cost of
the Project.
(e) The City considers that the undertaking of the Project
will promote urban renewal, rehabilitation and redevelopment of
the City, will eliminate blighted areas, and will provide
employment opportunities for the inhabitants of the City,
enhance the tax base of the City and overlapping taxing
r jurisdictions, increasethe City's commerce and add to the
welfare and prosperity of the City and that of its inhabitants.
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2. Undertakings on the Part of the City. The City agrees
as follows.
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f (a) That it will authorize, or cause to be authorized, the
issuance and sale of an issue of its Bonds to be issued and
sold for the purpose of financing the Project, pursuant to the
iterms of the Act as then in force, in an aggregate principal
amount presently estimated not to exceed 5550,000.
(b) That it will cooperate with Company to sell the Bonds
upon mutually agreeable terms, and it will adopt, or cause to
be adopted, such proceedings and authorize the execution of
such documents as may be necessary or advisable for the author-
ization, issuance and sale of the Bonds and the financing of
the Project as aforesaid, and the entering into a Loan Agree-
ment with the Company with respect to the Project, all as shall
be authorized by law and mutually satisfactory to the City and
the Company.
(c) That the aggregate basic payments (i.e. the payments
to be used to pay the principal of, premium, if any, and
interest on the Bonds) payable under the Loan Agreement shall
be such sums as shall be sufficient to pay the principal of,
interest and redemption premium, if any, on the Bonds as and
when the same shall become due and payable.
(d) That it will take or cause to be taken such other acts
and adopt such further proceedings as may be required to
implement the aforesaid undertakings or as it may deem appro-
priate in pursuance thereof.
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3. Undertakings on the Part of the Company, The Company
covenants and agrees as follows:
(a) That it will cooperate with the City to sell the Bonds
in an aggregate principal amount as above stated; provided,
however, that the terms of the Bonds and of the sale and
delivery thereof shall be mutually satisfactory to the City and
the Company,
(b) That it has not, prior to the execution of this agree-
ment by the City, acquired or commenced construction of the
Project, or any part thereof, and has not entered into any
contracts or paid or incurred any costs related thereto, which
will be paid or reimbursed from the proceeds of the Bonds, when
and if issued, The Company does, however, represent that it
now intends to enter into a contract or contracts for the
acquisition, construction, improvement and equipping of the
Project and take, with reasonable diligence, the other
necessary steps toward the realization of the Project,
(c) That contemporaneously with the sale of the Bonds it
will execute a Loan Agreement with the City under the terms of
which the Company will obligate itself to pay to the City sums
sufficient in the aggregate to pay the principal of, interest
and redemption premium, if any, on the Bonds as and when the
same shall become due and payable, such instrument to contain
other provisions required by law and such other provisions as
shall be mutually acceptable to the City and the Company,
(d) That it will take such further action and adopt such
further proceedings as may be required to implement its
aforesaid undertakings or as it may deem appropriate in
pursuance thereof,
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4. general Provisions,
(a) All commitments of the City under paragraph 2 hereof
and of the Company under paragraph 3 hereof are subject to the
condition that on or before July 1, 1984 (or such other date as
shall be mutually satisfactory to the City and the Company),
the City and the Company shall have agreed to mutually accept-
able terms for the Bonds and of the sale and delivery thereof,
and mutually acceptable terms and conditions of the documents
referred to in paragraph 3 and the proceedings referred to in
paragraphs 2 and 3 hereof.
(b) whether or not the events set forth in (a) of this
paragraph take place within the time set forth or any extension
thereof, the Company agrees that it will reimburse the City for
AHLER B. COON EY, DORW EIL Eq, HAYN E S SMITH. LAWYERS. DES MOINES. IOWA
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all reasonable and necessary direct out-of-pocket expenses
which the City may incur, including but not limited to, legal
fees, printing and publication costs and filing fees arising
from the execution of this Agreement and the performance, or
preparation to perform by the City of its obligations here-
under, or done at the request of the Company.
(c) It is expressly understood by both parties to this
Memorandum of Agreement that its execution by the Issuer is
intended both as an expression of the Issuer's current
intention to proceed with the issuance of the Bonds and to
constitute "some other similiar official action" for purposes
of the Treasury Regulations promulgated under Section 103 of
the Internal Revenue Code of 1954, as amended. The execution
of this Memorandum of Agreement by the Issuer is not intended
to nor does it create a binding commitment of the Issuer to
proceed with the issuance of the Bonds. It is further
understood that the issuance of the Bonds is subject to further
review by the City Council of the Issuer and is conditioned
upon, among other things, full compliance of all provisions of
the Industrial Revenue Bond Policy And Procedures For The City
(d) All commitments of the City hereof are further subject
to the conditions that the City, and its elected and appointed
officials, shall in no event incur any liability for any act or
omission hereunder, and that the Bonds described herein shall
not constitute an indebtedness of the City within the meaning
of any constitutional or statutory provision and shall not
constitute nor give rise to a pecuniary liability of the City
or a charge against its general credit or taxing powers.
IN WITNESS WHEREOF the parties hereto have entered into
this Agreement by their officers thereunto duly authorized as
of the 11th day of July, 1983.
City of Iowa City, Iowa
(Seal of City)
Mary C.euhauser, Mayor
Attest:
MaY-ian K. Karr, City Clerk
Pid Partners
Jamefs A. C1arAl general pa
Lotetta C.-Cla-t+—general pa
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'City of Iowa Cit't
MEMORANDUM
DATE: July 7, 1983
TO: City Council
FROM: Rosemary Vitosh, Director of Finance T`\J
RE: IRB Application from James A. Clark (Pipeyard Partners Project)
The staff review of the application and proposed project found
no legal or financial problems. The project was reviewed by
the Design Review Committee during the evaluation of bids for
the sale of this parcel (the old City pipeyard and South Gilbert
Street). No changes have been made to the project design that
would necessitate another review by the Design Review Committee.
Construction has already started on this project but it is with-
in the legal requirements that limit the amount of construction
permitted prior to the Council's approval of Memorandum of
Agreement.
The application stated the reason for requesting IRB's as:
"The only way to get a low; fixed interest rate, long term
(twenty years) is through the use of IRB's for financing."
The lower interest rate will allow for lower rental rates for
the twenty-one apartment units. Five of those units are slated
for inclusion in the City's Section 8, Assisted Housing, Program.
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Ahlers, Cooney, Donveiler, Haynie &Smith
LAWYERS
300 LIBERTY BUILDING, SIXTH AND GRAND
DES MOINES, IOWA 50309
(515) 243.7611
July 6, 1983
Ms. Rosemary Vitosh
Director of Finance
City of Iowa City
Civic Center
410 E. Washington
Iowa City, Iowa 52240
Paul F Ahler,• of Counsel
lamer trans Coon,,
Ianc,A Coppod.
Philip 1 Domeder
Ili 1 Will,
Kenneth if 11,, nie
David H LuRinbill
H R.chord Snwh
Mark W Deman
Rohm G Allboe
1&md WRem,b.,,
lame, L Kramberl
Thoma, I Stanb,n,
John F McKinney, It
Rir hnnl\Y Ilpllmann
L 1\' Ro.e S
Rid�ard G. $anti
Randall H Sit
IdRar H Kittle Di,aheth Greg¢ Kennrd,
Mouh I Knopf Pabicie I Millin
Tens L Monson Wade R Ramer III
( Re: $550,000 - City of Iowa City, Iowa
i Commercial Development Revenue Bonds
(Pipeyard Partners Project)
f Series 1983
Dear Ms. Vitosh:
i
Enclosed are five copies of proposed proceedings for
consideration by the City Council of Iowa City, Iowa at its
special City Council meeting on July 11, 1983 regarding the
issuance and sale of not to exceed $550,000 of Commercial
Development Revenue Bonds for Pipeyard Partners.
The enclosedroceedin s schedule a
p g public hearing on I
August 2, 1983, direct the City Clerk to public notice of the
public hearing and authorize the execution of a Memorandum of
Agreement between the City and Pipeyard Partners. As you know,
notice of the public hearing must be published once not less
than 15 days prior to the date of the public hearing. For your
I convenience, we have enclosed two extra copies of the notice of
j public hearing which can be published in the Iowa City
f Press -Citizen at any time following adoption of the enclosed
proceedings, provided it is published not later than July 18,
1983.
j Attached to the proceedings as Exhibit "A" is the
Memorandum of Agreement between the City and Pipeyard Partners.
The Memorandum should be completely signed by both the Mayor
and the City Clerk, and James A. and Loretta C. Clark, as the
general partners of Pipeyard Partners. By a copy of this
letter to Mr. Clark and Mr. C. Joseph Holland, general counsel
for Pipeyard Partners, we are reminding them that a
representative of Pipeyard Partners should be present at the
July 11 City Council meeting to answer any questions which the
members of the City Council may have.
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Ms. Rosemary Vitosh
July 6, 1983
Page 2
If the enclosed proceedings are satisfactory, we would
appreciate your returning three completed copies to us so that
we can include them in the bound Bond transcripts.
Additionally, please send us the customary proof of publication
of the notice of public hearing so that we can review it prior
to the August 2 public hearing. Upon receipt of the completed
proceedings, the completed Memorandum of Agreement and the
proof of publication, we will prepare and send to you the
necessary proceedings for consideration at the public hearing.
If you have any questions concerning the enclosed or
related matters, please do not hesitate to contact us.
Very truly yours,
AHLERS, COONEY, WRWEILIER, HAYNIE & SMITH
WN
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TES:er
Enclosures
cc: t/s. Marian K. Karr'
Mr. Robert i'7. Jansen
Mr. C. Joseph Holland
Mr. James A. Clark
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CITY CSF 10W� CITY
CNIC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319)356-500C)
July 12, 1983
Richard D. Johnson, CPA
Auditor of State of Iowa
State Capitol Building
Des Moines, Iowa 50319
Dear Sir
Enclosed please find Resolution 83-225, adopted by the Iowa City
City ColIIlcil on July U, 1983, serving as notification required by
Chapter 11 of the State Code that the City has hired McGladrey,
Hendrickson & Co., CPA to conduct the audit for the year ending
June 30, 1983, for the City of Iowa City.
Yours very truly,
/au")-?-�
Marian K. Karr
City Clerk
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