HomeMy WebLinkAbout1983-12-07 ResolutionJ
City of Iowa City
MEMORANDUM
DAIE: December 6, 1983
io: City Council
FROM: Rosemary Vitosh, Finance Director"
RE: Wallace, Rosenberger & Hackbarth IRB Application
An application for Industrial Revenue Bond financing was received from Drs.
Wallace, Rosenberger & Hackbarth Building Partnership for the construction
of a new medical office practice building located on the old practice field
for Central Junior. High School at the south east corner of Johnson & Jefferson
Streets.
Staff has reviewed the application and found no legal, financial or zoning
problems with the proposed project. The Code of Iowa specifically permits
the issuance of Industrial Revenue Bonds for a clinic or health care facility
of one or more physicians for an office building to be used exclusively by
professional health care providers (Chapter 4.9.1).
The financial analysis showed no problem areas, The First National Bank of
Iowa City has agreed to purchase the bonds and, in fact, encouraged the
Doctors to apply to the City for bond financing. The property will be zoned
properly for this use under the new Zoning Ordinance which is scheduled for
final passage on December 20,'1983.
The application stated the following justication for approving the issuance
of the bonds:
(a) A large facility will be permitted because a building of greater
cost can be constructed for the same monthly payments by virtue
of the reduced interest rates available through IRBs. A larger
facility will produce a capability of meeting increasing pediatric
demands in this area. This demand has shown a steady and con-
sistent increase over the past decade and is anticipated to
continue in the future.
(b) A more modern and more sophisticated facility, especially in
proximity to flercy Hospital , will assist the physicians in pro-
viding better patient care.
(c) A more esthetically pleasing building will be made possible with
IRBs since they will provide the additional cash necessary
to insure compatible and pleasing design. Such design is quite
expensive and could not be afforded without the utilization of
IRBs.
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(d) An esthetically pleasing well -constructed structure of great
permanence will upgrade and tend to stabilize the neighborhood.
The applicants' concern for the neighborhood and for the main-
tenance of its residential character is evidenced by a letter
dated October 5, 1983, which is attached hereto, marked "Exhibit
V and by this reference made a part hereof. This is only
owners ratItisfcriticalcforethissprojectothatrthedbondsrbeerty
approved. Without the issuance of the bonds and the preferential
interest rate, the monthly payments will be more than $1,000.00
greater to the applicants and such a nice building which is
anticipated will not be possible.
(e) A larger more expensive building made possible by the bonds
will permit the conversion of present part-time employees to
full-time employees. The part-time status is presently mandated
due to lack of space."
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Memorandum of Agreement
IDR -4202 (Memo)
Iowa City, Iowa
December 7 , 1963
The City Council of Iowa City, Iowa, met in special of December , 1983, at in
session on the 7th day in Iowa
o'clock, p.m., at the Public Li racy MeetI Room resent
City, Iowa. The meeting was called to order and there were p
�he chair, and the following named
David Perret Mayo>/Fr4r
Council Members:
Balmer, Dickson, Lynch, McDonald, Perret
Absent: Erdahl, Neuhauser
Matters were discussed relative to the financing of a project
pursuant to Chapter 419 of the Iowa Code. Whereupon, Council Member
Lynch _ introduced a resolution entitled "A Resolution
authorizing the execution of a Memorandum of Agreement with Wallace,
Rosenberger & Hackbarth Building Partnership" and moved its adoption;
seconded by Council Member McDonald After due
consideration of said resolution by the Council, the Mayor/PRkt(Re
ll being called, the following named
question on the motion and the ro
Council Members voted:
j Ayes: Lvnch Balmer Dickson McDonald, Perret
Nays : None
Whereupon, the Mayor/gUcitgPed said resolution duly adopted and
,approval was signed thereto.
Upon motion and vote, the meeting adjourned.
1n2
Mayo rpro,tem
Attest:
City Cleric
(Seal)
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BELIN. HARRIS. HELMICK. HEARTNEY 6 TESDELL, LAWYERS. DES MOINES. IOWA
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83-388
RESOLUTION
A Resolution authorizing the execution of a Memorandum
of Agreement with Wallace, Rosenberger & Hackbarth Building
Partnership
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,
1983, 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 use of one or more physicians for an office building to be
used exclusively by professional health care providers, including
appropriate ancillary facilities; and
WHEREAS, the Issuer has been requested by Wallace, Rosenberger &
Hackbarth Building Partnership (the "Company") to issue its revenue
bonds pursuant to the Act for the purpose of financing the acquisition
of land and the construction and equipping thereon of a 4,810 sq. £t.
medical office practice building and related parking and site
improvements to be located on the SE corner of the intersection of
Jefferson and Johnson Streets, Iowa City, Iowa (the "Project"), which
the Company will lease to Wallace, Rosenberger & Hackbarth (Medical
Partnership); and
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WHEREAS, a Memorandum of Agreement in the form and with the
contents set forth in Exhibit A attached hereto, has been presented to
the Issuer under the terms of which the Issuer agrees, subject to the
rsue proceedings necessary under
provisions of such Agreement, to pu.the
Act to issue its revenue bonds for such purpose;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Issuer,
as follows:
Section 1. The Memorandum of Agreement in the form and with the
contents set forth in Exhibit A attached hereto be and the same is
hereby approved and the Mayor is hereby authorized to execute said
Memorandum of Agreement and the Clerk is hereby authorized to attest
the same and to affix the seal of the Issuer thereto, said Memorandum
of Agreement which constitutes and is hereby made a part of this
Resolution to be in substantially the form, text and containing the
provisions set forth in Exhibit A attached hereto.
Section 2. Officials of the Issuer 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 3. That all resolutions and parts thereof in conflict
herewith are hereby repealed to the extent of such conflict.
Passed and approved this 70 day of December 1983.
Attest:
Mayor pro (tem ( Seal )
City Clerk) erk -2-
SELIN, HARRIS. HELMICK, HEARTNEY & TESDELL. LAWYERS. DES MOINES. IOWA
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EXHIBIT A
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT is between the City of Iowa City,
Iowa, (the "Issuer") and Wallace, Rosenberger & Hackbarth Building
Partnership (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 Issuer is authorized by Chapter 419 of the Code of
Iowa, 1983, 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 use of one or more physicians for an office
building to be used exclusively by professional health care providers,
including appropriate ancillary facilities.
(b) The Company wishes to obtain satisfactory assurance from
public bearing required b
the issuer that subject to the p 4 q Y the Act and
upon reaching mutually acceptable terms regarding such bonds, such
bonds will be issued by the Issuer in an aggregate principal amount not
to exceed $619,670 to finance the costs of the acquisition of land and
the construction and equipping thereon of a 4,810 sq. ft. medical
office practice building and related parking and site improvements to
be located on the SE corner of the intersection of Jefferson and
Johnson Streets, Iowa City, Iowa (the "Project"), which the Company
will lease to Wallace, Rosenberger & Hackbarth (Medical Partnership).
(c) The Issuer considers that the undertaking of the Project
and the financing of the same will promote the welfare and prosperity
of the Issuer and its citizens.
2. Undertakings on the Part of the Issuer.'
(a) The Issuer will begin the proceedings necessary to
authorize the issuance of such bonds, in an aggregate principal amount
not to exceed $619,670.
(b) Subject to due compliance with all requirements of law,
including the provisions of and the public hearing required by the Act
and upon reaching mutually acceptable terms regarding such bonds, it
will cooperate with the Company, in the issuance and sale of such
bonds, and the proceeds from the issuance of such bonds shall be loaned
to the Company upon terms sufficient to pay the principal of and
interest and redemption premium, if any, on such bonds, as and when the
same shall become due.
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BELIN. HARRIS. HELMICK. HEARTNEY d TESDELL. LAWYERS. DES MOINES. IOWA
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3. Undertakings on the Part of the Company_
(a) It will use all reasonable efforts to cooperate with the
Issuer and comply with the Act and all other provisions of law relating
to the Project and the issuance and sale of such bonds.
(b) It will enter into a Loan Agreement with the Issuer
under the terms of which the Company will obligate itself to pay to the
Issuer sums sufficient to pay the principal of and interest and
redemption premium, if any, on such bonds as and when the same shall
become due and payable.
4. General Provisions.
(a) All commitments on the part of the Issuer and the
Company herein are subject to the condition that on or before one year-
from
earfrom the date hereof (or such other date as shall be mutually agreed
to) the Issuer and the Company shall have agreed to mutually acceptable
terms relating to the issuance and sale of such bonds_
(b) Whether or not the events set forth in subsection (a) of
this Section 4 take place within the time specified herein or any
extension thereof, the Company agrees that it will reimburse the Issuer
for all reasonable and necessary costs which the Issuer may incur
arising from the execution of this Memorandum of Agreement and the
performance or the preparation to perform its obligations hereunder, or
done at the request of the Company. ;
(c) All commitments of the Issuer hereunder are further !
subject to the conditions that the Issuer shall in no event incur any
E liability for any act or omission hereunder, and that such bonds -
described herein shall not constitute an indebtedness of the Issuer
within the meaning of any constitutional or statutory provision and
shall not constitute nor give rise to a pecuniary liability of the
i Issuer or a charge against its general credit or taxing powers.
,
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(d) It is expressly understood by both parties to this
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 similar official
action" for purposes of the Treasury Regulations promulgated under
Section 103 of the Internal Revenue Code of 1954, as amended. The
execution of the 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 with all
provisions of the Industrial Revenue Bond Policy and Procedures for the
City of Iowa City, Iowa.
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BELIN. HARRIS, HELMICK• HEARTNEY d TESDELL. LAWYERS, DES MOINES, IOWA
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Dated this 7th day of
Attest:
ttest-
(Seal)
December , 1983.
Iowa qjty, Iowa
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By_ h -6v CL
Mayor pro tem
Wallace, Rosenberger & HacRbarth
Building Partnership
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DELIN, HARRIS, HELMICK. HEARTNEY & TESDELL, LAWYERS. DES MOINES, IOWA
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State of Jowa
County of Johnson SSI
City of: Iowa City
I, the undersigned, do hereby certify that 2 am the duLy
appointed, qualified and acting City Cleric of the afoselnentLoned City
and that as such I have in my -possession or have access to the complete
official records of said City and of its Coancil and affficers; and that
I have carefuLly compared tree transcript hereto attac'lea with the
aforesaid official records and that said transcript hereto attached is
a true, correct and complete copy of all of the offficdaL records
showing the action taken by th e City CounciL of said City to authorize
the execution of a Memorandum -of Agreement by and between Vallace,
Rosenberger 6 Hackbarth BuiLdi:ng Partnership and said City.
WITNESS my hand and the seal of said City hereto af=fixed this
7th day of December , 1983_
(Seal)
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BELIN,HARRIS, HELMICK, HEART NEW& 7E5 DELL. L AWVERS, DES MOINES. IOWA
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Proceedings Fixing Date for Hearing
IDR -4202 (N/1i)
Iowa City, Iowa
December 7 1983
The City Council of Iowa City, Iowa, met in special
session on the 7t1i day of December 1983, at
o'clock — P 5:o
m., at the Public Library Meetin Room A in Iowa City,
Iowa. The meeting wascalled to order and there were present
David Perret Mayor/,prPnt%e chair, and the following named
Council Members:
Bal
Absent: Erdahl Neuhauser
Matters were discussed concerning the issuance of Clinic Revenue
Bonds. Whereupon, Council Member Balmer introduced a
resolution entitled:. "Resolution fixing a date for hearing on proposed
Clinic Revenue Bonds (Wallace, Rosenberger.& Hackbarth Project)", and
moved its adoption, seconded by Council Member �?ickson After
due consideration of.the said resolution by the Council, the Mayor/Jg19ttem
the question upon the motion,and the roll being called, the following
named Council Members voted:
Ayes: Perret Balmer Dickson Lynch M
UQDgid
Nays: None
Absent: Erdahl, Neuhauser
Whereupon, the Mayor/PdecNT6d the said resolution duly adopted and
approval was signed thereto.
On motion and vote, the meeting adjourned.
Mayorpro tem
Attest:
Uiry clerk
(Seal)
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BELIN, HARRIS. HELMICK. HEARTNEY 8 TESDELL. LAWYERS. DES MOINES, IOWA
MICROFILMED BY... •I .�
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3131s -
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83-389
RESOLUTION
Resolution fixing a date for hearing on proposed
Clinic Revenue Bonds
(Wallace, Rosenberger & Hackbarth Project)
WHEREAS, the City of Iowa City, 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, 1983,
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 one or more physicians for an office building to be used
exclusively by professional health care providers, including
appropriate ancillary facilities; and
WHEREAS, the Issuer has been requested by Wallace, Rosenberger &
Hackbarth Building Partnership (the "Company") to issue its revenue
bonds pursuant to the Act for the purpose of financing the acquisition
of land and the construction and equipping thereon of a 4,810 sq. ft.
medical office practice building and related parking and site
improvements to be located on ti -le SE corner of the intersection of
Jefferson and Johnson Streets, Iowa City, Iowa (the "Project"), which
the Company will Lease to Wallace, Rosenberger & Hackbarth (Medical
Partnership); and
WHEREAS, it Ls proposed to finance the cost of the Project through
the issuance of Clinic Revenue Bonds, Series 1983 (Wallace, Rosenberger
& Hackbarth Project) in an aggregate principal amount not to exceed
$619,670 (the "Bonds") and to loan said amount to the Company under a
Loan Agreement between the Jssuer and the Company upon mutually
acceptable terms, the obligation of which will be sufficient to pay the
principal of and redemption premium, if any, and interest on the Bonds
as and when the same shall be due and payable; and
WHEREAS, the Issuer considers that the undertaking of the Project
will promote the welfare and prosperity of the Issuer and its citizens;
and
WHEREAS, before the Bonds may be issued, it is necessary to
conduct a public hearing on the proposal to issue the Bonds, all as
required and provided for by Section 419.9 of the Act and Section
103(k) of the Internal Revenue Code and the Treasury Regulations
promulgated thereunder;
NOW, THEREFORE, BE LT RESOLVED by the City Council of the Issuer,
as follows=
Section 1. This Council shall meet at the Civic Center
in Iowa City, Iowa, on the 23rd day of December , 1983, at
8;00 o'clock, a .m., at which time and place a public hearing shall
be held on the proposal to issue the Bonds referred to in the preamble
hereof, at which hearing all local residents who appear shall be given
an opportunity to express their views for or against the proposal to
issue the Bonds
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DELIN. IIARRIS, HELMICK. HEARTNEY 6 TESDELL. LAWYEnS, DES MDINES. IOWA
,.. MICROEIL1110 BY
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Section 2. The Clerk is hereby directed to give notice of
intention to issue the Bonds, setting forth the amount and
thereof, the time when and place where the hearing will be held, b
publication at least once not Less t Purpose
date fixed for the hearing, than fifteen (.15) days Y
newspaper Published and hv in Iowa Cit Pres -Citizen Y Prior to the
The notice shall be in substantiallyng ethe following f within the Issuer•
g form:
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BELIN, HARRIS, HELM ICK. HEAnTNEY 1 TESDELL, LAWYERS. DES MOINES. IOWA
ri. MICROfMILD BY.
J'DRPA MIC
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CEDAR RPP?OS •DE=MOVIES
NOTICE OF INTENTION TO ISSUE
CLINIC REVENUE BONDS
(Wallace, Rosenberger & Hackbarth Project)
The City Council of the City of Iowa City, Iowa, (the "Issuer")
will meet on the 7i -rd day of December , 1983, at the
Civic Center , in Iowa City, Iowa, at R -n() o'clock, R.m.,
for the purpose of conducting a public hearing on the proposal to issue
Clinic Revenue Bonds, Series 1983 (Wallace, Rosenberger & Hackbarth
Project) of the Issuer, in an aggregate principal amount not to exceed
$619,670 (the "Bonds"), and to loan said amount to Wallace, Rosenberger
& Hackbarth Building Partnership (the "Company"), for the purpose of
the acquisition of land and the construction and equipping thereon of a
4,810 sq. ft. medical office practice building and related parking and
site improvements to be located on the SE corner of the intersection of
Jefferson and Johnson Streets, Iowa City, Iowa, which the Company will
lease to Wallace, Rosenberger & Hackbarth (Medical Partnership). The
Bonds, if issued, will be limited obligations and will not constitute
general obligations of the Issuer nor will they be payable in any
manner by taxation, but the Bonds will be payable solely and only from
amounts received by the Issuer under a Loan Agreement between the
-- ; Issuer and the Company, the obligation of which will be sufficient to
pay.the principal of and interest and redemption premium, if any on the
jBonds as and when the same shall become due.
F
At the time and place fixed for said public hearing all local
residents who appear will be given an opportunity to express their
views for or against the proposal to issue the Bonds, and at the
hearing or any adjournment thereof, the Issuer shall adopt a resolution
determining whether or not to proceed with the issuance of the Bonds.
t Written comments may also be submitted to the Issuer at Civic Center,
410 E. Washington, Iowa City, Iowa 52240. Written comments must be
received by the above hearing date.
By order of the City Council, this _7th day of Pprrmher 1983.
L
City Clerk
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OELIN. HARRIS. HELMICK. HEARTNEY d TESDELL. LAWYERS. DES MOINES. IOWA
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Section 3. All resolutions and parts hereof in conflict herewith
are hereby repealed to the extent of such conflict.
Passed and approved this 7th day of December L983.
Mayorpii fem
Attest:
City Clerk
(Seal)
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DELIN, HARRIS. HELMICK, HEARTNEY A TESDELL. LAWYERS, DES MO . IVES. IOWA
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JORM M1CM+t_AE3
-CEDAR RfRTDS -DE"MOVIES
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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 aforementioned City,
and that as such I have in my possession or have access to the official
records of said City and of its officials and that I have compared the
transcript hereto attached with the said official records and that the
same constitutes a true and correct and complete copy of such official
records showing the action taken by the Council of said City to set a
date for a public hearing on the proposal to issue Clinic Revenue
Bonds, Series 1983 (Wallace, Rosenberger & Hackbarth Project) in an
aggregate principal amount not to exceed $619,670.
WITNESS my official signature and the seal of said City this
7th day Of Deremher , 1983.
(Seal)
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DELIN. HARRIS. HELMICK. HEARTNEY 8 TESDELL. LAWYERS, DES MOINES. IOWA
l JORM MICR+LAB
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