HomeMy WebLinkAbout1983-12-23 Resolution83-420
RESOLUTION
"Resolution authorizing the issuance and sale of Clinic Revenue
Bond, (Wallace, Rosenberger & Hackbarth Project) of the City of
Iowa City, Iowa, in the principal amount of $619,670, to finance
the costs of acquisition by construction or purchase of land,
buildings, equipment and improvements suitable for use as a
medical office practice building; the execution 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 Wallace, Rosenberger & Hackbarth Building
Partnership 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,
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 made the necessary arrangements with
Wallace, Rosenberger & Hackbarth Building Partnership (the "Company")
for 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 improvemtns to be located on the S.E. 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 is necessary and advisable that provisions be made for
the issuance of Clinic Revenue Bond, Series 1983 (Wallace, Rosenberger
& Hackbarth Project) of the Issuer in the principal amount of $619,670
(the "Bond") as authorized and permitted by the Act to finance the cost
i 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
December 1, 1983 (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
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by a Lender SLoan eAgrreementBond ltoebesold
datedPursuant
of Decemberel,�rl9g3s provided
"Lender Loan Agreement")•by and between the Issuer and First National
Bank, Iowa City, Iowa (the "Lender"); and
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
uired
thatliteisnotice,
necessaryall
and advisablebtothe
p proceed withhas
thehereby
financinte of the
Project; and
g of the
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 I
as follows:
ssuer,
Section I. Authorization of the Bond.
cost of acquiring and constructIn order to finance the
ing the Project at the location set
forth in the preamble hereof, the Bond shall be and the same is hereby
authorized, determined and ordered to be issued in the principal amount
of $619,670. 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 hale such i
such rates, and shall be subject such provlothersions�termsshalland aconditions as
are set forth therein and in the Lender Loan Agreement and Loan
Agreement. The Bond and the interest thereon do
not
constitute an indebtedness Of or a charge againsttheage neral shall never
taxing power of the Issuer, but are limited obligations ofthecIssueror '
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 i
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
1 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
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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. Deposit by the Lender to the credit of the
Issuer of the purchase price, namely $619,670, in immediately available
funds at the office of the Lender shall constitute payment in full for
the Bond pursuant to Section 1.02 of the Lender Loan Agreement. The
Lender shall be authorized as the Issuer's depository and agent to
immediately deposit such purchase price in the Project Fund established
by Section 1.03 of the Lender Loan Agreement to effect the makingof to
the loan of the proceeds of sale of the Bond to the Company pursuant
Section 1.02 of the Lender Loan Agreement.
Section 3 Reaayment 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, construct, 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, acknowledge 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. 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 6. 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 7. Repealer. All resolutions and parts thereof in
conflict herewith are hereby repealed to the extent of such conflict.
Section B. Effective Date. This resolution shall become
effective immediately upon adoption.
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Passed and approved this 23rd day of December, 1983.
C.
Mayor
Attest:
City Clerk
ma
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(Seal)
e-11
Iowa City, Iowa, December 23, 1983.
The City Council Of Iowa City,
iIowa, 111' On the above date
n the Civic Center,
in Iowa City, Iowa, at 8:00 O'clock A.M.,
in open special session, Pursuant to law and the rules o —
Council. f said
The meeting was called
to order by Mary C. Neuhauser,
Mayor, presiding, and on roll call the following Council
Members were Present:
Balmer
Dickson
McDonald
11 Neuhauser
Perret
Absent:
Erdahl
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Matters were discussed relative to the request from Gilbert
Tower Associates, regarding the issuance of not to exceed
$850,000 in aggregate principal amount of the City's Commercial
Development Revenue Bonds (Gilbert Tower Associates Project).
Following an explanation of the proposed Project by
representatives of the Company and a discussion of the
proposal, Council Member Balmer introduced the following
Resolution in written form and moved its adoption. Council
Member Dickson seconded the motion to adopt. After due
consideration of said motion, the roll was called and the
Resolution was adopted by the following vote:
AYES: Perret
Balmer
Dickson
McDonald
Neuhauser
NAYS: None
The Resolution was thereupon signed by the Mayor and in
evidence of her approval, was attested by the City Clerk, and
was declared to be effective. The Resolution is as follows:
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RESOLUTION NO. 83-4ZI
A RESOLUTION REGARDING THE ISSUANCE OF NOT TO EXCEED
$850,000 IN AGGREGATE PRINCIPAL AMOUNT OF COMMERCIAL
DEVELOPMENT REVENUE BONDS (GILBERT TOWER ASSOCIATES
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.
WHEREAS, the City of Iowa City, Iowa (hereinafter referred
to as the "City") is a municipal corporation organized and
existinq under the Constitution and laws of the State of Iowa,
and is authorized and empowered by Chapter 419 of the Code of
Iowa (hereinafter referred to as the "Act"), to issue
Commercial Development Revenue Bonds, and loan the proceeds
from the sale of said Bonds to one or more parties to be used
to defray all or a portion of the cost of acquiring,
constructing, improving and equipping land, buildings and
improvements suitable for the 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
WHEREAS, the City has been requested by Gilbert Tower
Associates, an Iowa general partnership (hereinafter referred
to as the "Company"), to authorize and issue its Commercial
Development Revenue Bonds (the "Bonds") pursuant to the
provisions of the Act for the purpose of financing all or a
portion of the cost of acquiring, improving and equipping a
1-5-.un..t multi -family residential apartment facility to be
located at 601 South Gilbert and contiguous properties within
the corporate boundaries of the City (hereinafter referred to
as the "Project"); and
WHEREAS, said Project is located within the area of and is
consistent with and authorized by the Neighborhood Development
Plan adopted by the City, and will promote urban renewal,
rehabilitation and redevelopment of the City, will eliminate
blighted areas, and will provide employment opportunities for
residents of the City and the surrounding area; will enhance
the tax base of the City and overlapping taxing jurisdictions
and will provide and induce other public benefits which will
add to the welfare and prosperity of the City and its
inhabitants; and
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WHEREAS the City has determined that the amount necessary
to defray all or a portion of the cost of acquisition, con-
struction, improving and equipping the Project, including
necessary expenses incidental thereto, will require the
issuance by the City of not to exceed $85'0,,000 in aggregate
principal amount of its Commercial Developmerrt Revenue Bonds
pursuant to the provisions of the Act, and it is proposed that
the City loan said amount to Company under a Loan Agreement
between the City and Company pursuant to which loan payments
will be made by the Company in amounts sufficient to pay the
principal of and interest and premium, if any, on said Bonds,
as and when the same shall be due; and
WHEREAS, the Bonds, if issued, shall be limited obligations
of the Citv, and shall not constitute nor give rise to a
pecuniary liability of the City or a charge against its general
credit or taxing powers, and the principal of and interest and
premium, if any, on the Bonds shall be payable solely out of
the revenues derived from the Project to be financed by the
Bonds; and
WHEREAS, regulations promulgated under Section 103 of the
Internal Revenue Code of 1954, as amended (the "Code"), may
require that the Issuer of such Bonds adopt a Resolution with
I respect to such Bonds or take "some other similar official
action" toward the issuance of such Bonds prior to the
commencement of construction or acquisition relating to the
proposed Project, and it is intended that this Resolution shall
constitute "some other similar official action" toward the
I issuance of the Bonds within the meaning of said federal income
tax regulations; and
WHEREAS, there has been presented to the Council a Memo-
randum of Agreement, attached hereto as Exhibit "A" which sets
forth certain mutual undertakings and agreements between the
City and Company, relating to the further processing and issu-
ance of said Bonds, and the City believes it desirable and in
its best interest that said Memorandum of Agreement be executed
for and on behalf of the City; 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 by Section 419.9 of the Act and
Section 103(k) of the Code.
NOW, THEREFORE, Be It and It Is Hereby Resolved by the City
Council of the City of Iowa City, Iowa, as follows:
Section 1. A public hearing shall be conducted on
January 17, 1984, at 7:30 o'clock P.M., before this City
Council in the Council Chambers at the Civic Center in the City
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of Iowa City, Iowa, on the proposal to issue not to exceed
$850,000 in aggregate principal amount of the City's Commercial
Development Revenue Bonds (Gilbert Tower Associates Project)
pursuant to the provisions of the Act, for the purpose of
financing all or a portion of the cost of acquiring,
constructing, improving and equipping the Project, including
necessary expenses incidental thereto, and all local residents
who appear at said hearing shall be given an opportunity to
express their views for or against the proposal to issue such
Bonds; and at said hearing, or any adjournment thereof, this
City Council shall adopt a resolution determining whether or
not to proceed with the issuance of said Bonds.
Section 2. The City Clerk of the City is hereby directed
to publish one time, not less than fifteen (15) days prior to
the date fixed for said hearing, in the Iowa City
Press -Citizen, a legal newspaper published and having a general
circulation within the City, a Notice of Intention to issue
said Bonds in substantially the following form:
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of Iowa City, Iowa, on the proposal to issue not to exceed
$850,000 in aggregate principal amount of the City's Commercial
Development Revenue Bonds (Gilbert Tower Associates Project)
pursuant to the provisions of the Act, for the purpose of
financing all or a portion of the cost of acquiring,
constructing, improving and equipping the Project, including
necessary expenses incidental thereto, and all local residents
who appear at said hearing shall be given an opportunity to
express their views for or against the proposal to issue such
Bonds; and at said hearing, or any adjournment thereof, this
City Council shall adopt a resolution determining whether or
not to proceed with the issuance of said Bonds.
Section 2. The City Clerk of the City is hereby directed
to publish one time, not less than fifteen (15) days prior to
the date fixed for said hearing, in the Iowa City
Press -Citizen, a legal newspaper published and having a general
circulation within the City, a Notice of Intention to issue
said Bonds in substantially the following form:
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RESOLUTION NO. 83-422
RESOLUTION AUTHORIZING THE ISSUANCE OF $8,105,000 IN
AGGREGATE PRINCIPAL AMOUNT OF THE CITY OF IOWA CITY,
IOWA, LENDER -ASSISTED COMMERCIAL DEVELOPMENT REVENUE
BONDS (MID CITY HOTEL ASSOCIATES - IOWA CITY PROJECT)
SERIES 1983 WITH THE PROCEEDS FROM THE SALE OF THE BONDS
TO BE LOANED TO MIDWEST FEDERAL SAVINGS AND LOAN
ASSOCIATION OF MINNEAPOLIS, FOR THE PURPOSE OF MAKING A
LOAN TO MID CITY HOTEL ASSOCIATES - IOWA CITY, A SOLE
PROPRIETORSHIP FOR THE PURPOSE OF DEFFRAYING ALL OR A
PORTION OF THE COST OF ACQUIRING, CONSTRUCTING,
IMPROVING AND EQUIPPING A NINE -STORY HOTEL CONSISTING OF
APPROXIMATELY 178 GUEST ROOMS, CONVENTION AND MEETING
ROOMS, A SWIMMING POOL, A COFFEE SHOP, AND FOOD AND
BEVERAGE FACILITIES ALL CONSISTENT WITH THE CITY'S
PROJECT NO. IOWA R-14 URBAN RENEWAL PLAN; THE EXECUTION
AND DELIVERY OF AN INDENTURE OF TRUST TO SECURE SAID
BONDS; THE EXECUTION AND DELIVERY OF A LENDER LOAN
AGREEMENT BY AND AMONG THE CITY, MID CITY HOTEL
ASSOCIATES - IOWA CITY, MIDWEST FEDERAL SAVINGS AND LOAN
ASSOCIATION OF MINNEAPOLIS AND FIRST TRUST COMPANY OF
SAINT PAUL; THE SALE OF SAID BONDS; APPOINTMENT OF FIRST
TRUST COMPANY OF SAINT PAUL, AS TRUSTEE; AND RELATED
} MATTERS.
E
WHEREAS, the City of Iowa City, Iowa, a municipal cor-
poration duly organized and existing under and by virtue of the
1 Constitution and laws of the State of Iowa (the "City") pro-
poses to issue its Lender -Assisted Commercial Development
Revenue Bonds (Mid City Hotel Associates - Iowa City Project),
Series 1983 in the aggregate principal amount of $8,105,000
(the "Bonds") with the proceeds from the sale of the Bonds to
be loaned to Midwest Federal Savings and Loan Association of
Minneapolis ("Midwest") for the purpose of making and
administering a loan to Mid City Hotel Associates - Iowa City,
a sole proprietorship (the "Developer"), to be used for
defraying all or a portion of the cost of acquiring,
constructing, improving and equipping a nine story hotel
consisting of approximately 178 guest rooms, convention and
meeting rooms, swimming pool, coffee shop, and food and
beverage facilities located within the area of and consistent
with the City's Project No. Iowa R-14 Urban Renewal Plan (the
"Project"), the Project to be owned by the Developer, with the
financing of the Project to be undertaken in accordance with
! the provisions of Chapter 419 of the Code of Iowa (the "Act");
and
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WHEREAS, the City Council of the City has determined the
Project is located within the area of and is consistent with
and authorized by the City's Project No. Iowa R-14 Urban
Renewal Plan (the "Urban Renewal Plan") and there is a public
need in the City and the surrounding environs for
implementation of said Urban Renewal Plan, which will promote
urban renewal, rehabilitation and redevelopment of the City,
will eliminate blighted areas within the City and will promote
employment opportunities for residents of the City and the
surrounding area; and
WHEREAS, the Bonds are to be issued pursuant to provisions
of an Indenture of Trust (the "Indenture") dated as of
December 1, 1983, between the City and First Trust Company of
Saint Paul, St. Paul, Minnesota, as Trustee thereunder (the
"Trustee") and;
WHEREAS, the proceeds from the sale of the Bonds are to be
loaned by the City to Midwest on a non-recourse basis pursuant
to provisions of a Lender Loan Agreement (the "Lender Loan
Agreement") dated as of December 1, 1983, by and among the
City, the Developer, the Trustee and Midwest and, in turn,
Midwest will make a loan to the Developer in an amount equal to
the principal amount of the Bonds less an amount to be
deposited in a reserve fund; and
WHEREAS, pursuant to the Lender Loan Agreement, Midwest
will make payments in amounts equal to the principal of,
premium, if any, and interest on the Bonds, which payments will
be assigned by the City to the Trustee; and
WHEREAS, as security for the payments of Midwest under the
Lender Loan Agreement, certain federal governmental securities,
single family mortgage loans, and/or other permitted securities
have been assigned and pledged to the Trustee pursuant to a
Collateral Agreement dated as of December 1, 1983 (the
"Collateral Agreement") by and among Midwest, the Trustee and
The Richard Gill Company.
WHEREAS, the rights and interest of the City in and to the
Lender Loan Agreement will be assigned by the City to the
Trustee pursuant to the Indenture; and
WHEREAS, pursuant to published notice of intention this
City Council has conducted a public hearing, as required by
Section 419.9 of the Act and Section 103(k) of the Internal
Revenue Code of 1954, as amended (the "Code"), and this City
Council has deemed it to be in the best interests of the City
that the Bonds be issued as proposed; and
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WHEREAS, the City has arranged for the sale of the Bonds to
Dain Bosworth Incorporated, Minneapolis, Minnesota (the
"Underwriter"); and
WHEREAS, there has been presented to this meeting the
following documents, which the City proposes to enter into:
1. The form of Lender Loan Agreement by and among the
City, the Developer, the Trustee and Midwest; and
2. The form of Indenture between the City and the Trustee
setting forth the terms of the Bonds including (without
limitation) the maturity dates, rates of interest and
redemption provisions, and the conditions and security for
payment of the Bonds; and
3. The form of Bond Purchase Agreement dated December 23,
1983 (the "Bond Purchase Agreement"), by and among the
Underwriter, the City, Midwest and the Developer relating to
the issuance, sale and purchase of the Bonds; and
4. The form of an Inducement and Indemnity Letter to be
dated December 23, 1983 (the "Inducement Letter") from the
Developer to the City, the Underwriter and Midwest; and
5. The form of a Preliminary Official Statement dated
December 13, 1983, and a final Official Statement dated
December K, 1983 (collectively the "Official Statement") used
by the Underwriter in the offering and sale of the Bonds; and
6. The form of the Bonds, as set forth in the Indenture.
WHEREAS, it appears that each of the instruments above
referred to, which are now before each of the Council Members
of the City Council, is in appropriate form and is an appro-
priate instrument for the purposes intended;
NOW, THEREFORE, Be It Resolved by the City Council of the
City of Iowa City, Iowa, as follows:
Section 1. That the City defray all or a portion of the
cost of acquiring, constructing, improving and equipping a nine
story hotel consisting of approximately 178 guest rooms,
convention and meeting rooms, swimming pool, coffee shop, and
food and beverage facilities (the "Project") by issuing the
Bonds and loaning the proceeds of the sale of the Bonds to
Midwest to be loaned by Midwest to the Developer, which Project
is consistent with and -located within the area of the City's
Project No. Iowa R-14 Urban Renewal Plan adopted by the City
pursuant to Chapter 403 of the Code of Iowa; and
Section 2. That in order to defray the cost of the
Project, the issuance of the Bonds in the aggregate principal
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amount of $8,105,000, maturinq on such dates, in such amounts
and bearing rates of interest as set forth in the Indenture, in
substantially the form and content set forth in the Indenture
now before this meeting, subject to appropriate insertion and
revision in order to comply with provisions of the Indenture,
be and the same hereby are in all respects authorized, approved
and confirmed, and the form and content of the Bonds set forth
in the Indenture now before this meeting be and the same hereby
are in all respects authorized, approved, ratified and
confirmed, and the Mayor and the City Clerk be and they hereby
are authorized, empowered and directed to execute, whether by
manual or facsimile signatures, impress the official seal of
the City (or cause to have printed a facsimile thereof) thereon
and deliver for and on behalf of the City the Bonds to the
Trustee for authentication and the Trustee is hereby authorized
and directed to authenticate the Bonds, and the provisions of
the Indenture with respect to the Bonds (including without
limitation the maturity dates, rates of interest and redemption
provisions) be and the same hereby are authorized, approved and
confirmed and are incorporated herein by reference.
Section 3. That the City loan to Midwest the proceeds from
the sale of the Bonds (on a non-recourse basis), less the
proceeds from the sale of the Reserve Fund Bonds, as defined in
the Lender Loan Agreement, which are to be deposited into the
Reserve Fund, as defined in the Lender Loan Agreement, pursuant
k to the Lender Loan Agreement for the sole purpose of makinq and
# administering a loan to the Developer to be used to finance all
s or a portion of the costs of the Project, which Lender Loan
Agreement provides for repayment by Midwest of an amount equal
j to principal of, premium, if any, and interest on the Bonds
when and as due and the form and content of the Lender Loan
Agreement, the provisions of which are incorporated herein by
reference, be and the same hereby are in all respects
authorized, approved and confirmed and the Mayor and the City
Clerk be and they hereby are authorized, empowered and directed
to execute, attest, seal and deliver the Lender Loan Agreement
prior to or simultaneously with the issuance of the Bonds for
and on behalf of the City, including necessary counterparts in
substantially the form and content now before this meeting but
with such changes, modifications, additions or deletions
therein as shall to them seem necessary, desirable or appro-
priate, their execution thereof to constitute conclusive
evidence of their approval of any and all changes,
modifications, additions or deletions therein from the form and
content of the Lender Loan Agreement now before this meeting,
and that from and after the execution and delivery of the
Lender Loan Agreement, 'the Mayor and the City Clerk are hereby
authorized, empowered and directed to do all such acts and
things and to execute all such documents as may be necessary to
carry out and comply with the provisions of the Lender Loan
Agreement as executed.
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Section 4. That First Trust Company of Saint Paul, St.
Paul, Minnesota, is hereby appointed Trustee under the
Indenture and the form and content of the Indenture, the provi-
sions of which are incorporated herein by reference, and the
assignment of the City's rights and interest in and to the
Lender Loan Agreement (with certain exceptions as stated in the
Indenture) be and the same hereby are in all respects
authorized, approved and confirmed, and the Mayor and the City
Clerk be and they hereby are authorized, empowered and directed
to execute, attest, seal and deliver the Indenture for and on
behalf of the City to the Trustee for the security of the Bonds
and the interest thereon, including necessary counterparts in
substantially the form and content now before this meeting but
with such changes, modifications, additions and deletions
therein as shall to them seem necessary, desirable or
appropriate, their execution thereof to constitute conclusive
evidence of their approval of any and all changes, modifica-
tions, additions or deletions therein from the form and content
of the Indenture now before this meeting, and that from and
after the execution and delivery of the Indenture, the Mayor
and the City Clerk are hereby authorized, empowered, and
directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the
provisions of the Indenture as executed.
Section 5. That the sale of the Bonds to the Underwriter
at the purchase price of 4.%r_% of the par value thereof, subject
to the terms and conditions set forth in the Bond Purchase
Agreement, is hereby authorized, approved and confirmed and the
Mayor and the City Clerk are hereby authorized, empowered and
directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the
provisions of the Bond Purchase Agreement.
j Section 6. That the form and content of the Inducement
Letter be and the same hereby are authorized, approved and con-
firmed and the Mayor be, and she hereby is, authorized,
empowered and directed to accept the Inducement Letter for and
on behalf of the City by execution thereof, including necessary
counterparts in the form and content now before this meeting,
and that from and after the execution and delivery of the
j Inducement Letter, the Mayor and the City Clerk are hereby
authorized, empowered and directed to do all such acts and
things and to execute all such documents as may be necessary to
carry out and comply with the
Letter as executed. Provisions of the Inducement
Section 7. That the Mayor and the City Clerk of the City
S be and they hereby are authorized to execute anddeliver for
and on behalf of the City any and all additional certificates,
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documents, opinions or other papers and perform all other acts
(including without limitation the filing of any financing
statements or any other documents to create and maintain a
security interest on the properties and revenues pledged or
assigned under the Indenture and the Lender Loan Agreement and
the execution of all closing documents as may be required by
Ahlers, Cooney, Eprweiler, Haynie & Smith, as Bond Counsel, and
the acceptance of any documentation evidencing indemnification
of the City by the Owner in connection with the transactions
contemplated hereby) as they may deem necessary or appropriate
in order to implement and carry out the intent and purposes of
this Resolution.
Section B. That the Lender Loan Agreement requires Midwest
in each year to pay amounts as Loan Payments sufficient to pay
the principal of, premium, if any, and interest on the Bonds
when and as due, and the payment of such amounts by Midwest to
the Trustee pursuant to the Lender Loan Agreement is hereby
authorized, approved and confirmed.
Section 9. .That the Bonds are limited obligations of the
City, payable solely out of the Loan Payments required to be
paid by Midwest pursuant to and in accordance with provisions
of the Lender Loan Agreement and as further provided in the
Indenture and the Collateral Agreement, and are secured pur-
suant to and in accordance with provisions of the Collateral
Agreement and the indenture. The Bonds and interest thereon
shall never constitute an indebtedness of the City, within the
meaning of any state constitutional provision or statutory
limitation, and shall not give rise to a pecuniary liability of
the City or a charge against its general credit or taxing
powers.
Section 10. That the City hereby elects to have the provi-
sions as to the exempt small issue limitation under Section
103(b)(6)(D) of the Internal Revenue Code of 1954, as amended,
apply to the Bonds, and the Mayor or the City Clerk is hereby
directed to file or cause to be filed an appropriate statement
relating to such election with the Internal Revenue Service.
Section 11. That the City will lend the Developer the pro-
ceeds from an Urban Development Action Grant made by the U.S.
Department of Housing and Urban Development under Section 119
of the Housing and Community Development Act of 1974 for the
sole purpose of defraying a portion of the costs of the
Project.
Section 12. That the use by the Underwriter of the
official Statement in connection with the sale of the Bonds is
hereby authorized and approved; provided such authorization and
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approval shall not be deemed to include authorization and
approval of information contained in the official Statement M
other than information contained under the caption "THE CITY",
but nothing or°limitingnthethis
Underwriternandshall
thebcompanyconstrue
fromas
prohibiting deem appropriate.
including such information as they ,
on are
Section 13. That the provisionsnsectionl,lphraseloriprovision
hereby to be separable and if any {
shall for any reason be declared to be invalid, such
declaration shall not affect the validity of the remainder of
the sections, phrases or provisions. 1
arts thereof,
Section 14. All are,Resolutionshe eextent dofsparts
in conflict herewith are,
this Resolution shall be in full force a
hereby repealed and
nd
effect immediately upon its adoption.
Adopted and approved this 23rd day of December, 1963.
City of Iowa City, Iowa
LAM
(Seal) Mary NNeuhauser,Mayor {
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Attest:
Ma 'an R. Karr,
City Clerk
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approval shall not be deemed to include authorization and
approval of information contained in the official Statement M
other than information contained under the caption "THE CITY",
but nothing or°limitingnthethis
Underwriternandshall
thebcompanyconstrue
fromas
prohibiting deem appropriate.
including such information as they ,
on are
Section 13. That the provisionsnsectionl,lphraseloriprovision
hereby to be separable and if any {
shall for any reason be declared to be invalid, such
declaration shall not affect the validity of the remainder of
the sections, phrases or provisions. 1
arts thereof,
Section 14. All are,Resolutionshe eextent dofsparts
in conflict herewith are,
this Resolution shall be in full force a
hereby repealed and
nd
effect immediately upon its adoption.
Adopted and approved this 23rd day of December, 1963.
City of Iowa City, Iowa
LAM
(Seal) Mary NNeuhauser,Mayor {
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Attest:
Ma 'an R. 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; 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
December 1.L, 1983, for the purpose of considering a Resolution
authorizing the issuance of $8,105,000 aggregate principal amount
of Lender -Assisted Commercial Development Revenue Bonds (Mid City
Hotel Associates - Iowa City Project) Series 1983 of the City of
Iowa City, Iowa, the execution and delivery of an Indenture of
Trust to secure said Bonds, the execution and delivery of a Lender
Loan Agreement by and among the City, Midwest Federal Savings and
Loan Association of Minneapolis, First Trust Company of Saint Paul
and Mid City Hotel Associates - Iowa City, the Assignment by the
City of the rights and interest of the City in and to said Lender
Loan Agreement, the sale of said Bonds, appointment of First Trust
Company of Saint Paul as Trustee and related matters; that said
proceedings remain in full force and effect and have not been
amended or rescinded in any way; that said 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 day of December, 1983.
(SEAL) Mari n K. Karr, City Clerk
State of Iowa )
SS..
County of Johnson )
Subscribed and sworn to before me this day, the date last
above written.
NotaryPublic in d 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.
December 23 , 1983
8:00 A.R.M.
Council Chambers
Civic Center
410 East Washington Street
Iowa City, Iowa
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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:
48, log, 000
1. Resolution Authorizing the Issuance of $8,105,000 in
Aggregate principal amount of the City of Iowa City, Iowa,
Lender -Assisted Commercial Development Revenue Bonds (Mid City
Hotel Associates - Iowa City Project), Series 1983 with the
proceeds from the sale of the Bonds to be loaned to Midwest
Federal Savings and Loan Association of Minneapolis, for the
purpose of making a loan to Mid City Hotel Associates - Iowa
City, a sole proprietorship for the purpose of defraying all or
a portion of the cost of acquiring, constructing, improving and
equipping a nine story hotel consisting of approximately 178
guest rooms, convention and meeting rooms, a swimming pool, a
coffee shop, and food and beverage facilities all consistent
with the City's Project No. Iowa R-14 Urban Renewal Plan, the
execution and delivery of an Indenture of Trust to secure said
Bonds; the execution and delivery of a Lender Loan Agreement by
and among the City, Mid City Hotel Associates - Iowa City,
Midwest Federal Savings and Loan Association of Minneapolis and ;
First Trust Company of Saint Paul; the sale of said Bonds;
appointment of First Trust Company of Saint Paul as Trustee;
and related matters.
2. Such additional matters as are set forth on the addi-
tional 4 page(s) attached hereto (attach copy of agenda).
This notice is given at the direction of the Mayor, pur-
suant to Chapter 28A, Iowa Code, as amended, and the local
rules of said governmental body.
Ma an K. Karr, City Clerk of
the City of Iowa City, Iowa
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City of Iowa City
MEMORANDUM
DATE: December 21, 1483
TO: City Council
FROM: City Manager�—�,•
RE: Parking Agreement for Hotel C/
The resolution and parking agreement for the hotel project will be
delivered separately to you on Thursday. This item is listed as
Item No. 8 on the special agenda.
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RESOLUTION NO. 83-423
RESOLUTION APPROVING A PARKING AGREEMENT WITH HARRY A. JOHNSON, JR.
DOING BUSINESS AS MIR -CITY HOTEL ASSOCIATES.
WHEREAS, the U.S. Department of Housing and Urban Development - Urban
Development Action Grant Office has awarded the City of Iowa City, Iowa, an
Urban Development Action Grant of $2,081,000 to assist in the development of
a hotel on Urban Renewal Parcel 64-1b; and
WHEREAS, Mid -City Hotel Associates is planning to construct a hotel facility
on Parcel 64-1b, Iowa City, Iowa, which hotel facility requires parking
availability for the use of its patrons; and
WHEREAS, the Urban Development Action Grant Agreement requires an agreement
between the City of Iowa City and Mid -City Hotel Associates concerning
parking availability.
NOW, THEREFORE, BE IT RESOLVED that the Mayor of Iowa City, Iowa, is author-
ized to execute this Parking Agreement on behalf of the City of Iowa City.
It was moved by Perret and seconded by Dickson
the Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Balmer
_X Dickson
X Erdahl
X Lynch
McDonald
X Neuhauser
X Perret
Passed and approved this 231:d day of Dpremhrr , 1983.
FAVAI&I F.W.��
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CITY OF IOWA CITY - HARRY A. JOHNSON, JR. PARKING AGREEMENT
This agreement is entered into this 7-jr,day of D ether 1983
between the City of Iowa City, Iowa, a municipal corpara ion' hereinafter
referred to as City, and Harry A. Johnson, Jr, doing business as Mid -City
Hotel Associates - Iowa City, hereinafter referred to as Hotel Associates.
WHEREAS, Hotel Associates is planning to construct a hotel facility on Block
64, Iowa City, Iowa, which hotel facility requires parking availability for
the use of its patrons, and,
WHEREAS, the City and Hotel Associates have reached agreement concerning
parking availability which agreement the parties wish to reduce to writing.
Now, therefore, it is agreed as follows:
1.Parking Provided. The City agrees to provide to Hotel Associates and to
its parking patrons parking spaces, for vehicles with a maximum clearance
of 7 feet, in Dubuque Street Parking Ramp and the Capitol Street Parking
Ramp, located in Iowa City, Iowa. Parking shall be provided to regis-
tered hotel guests in either the Dubuque Street Parking Ramp or the
Capitol Street Parking Ramp. Without assuming financial liability to
Hotel Associates, the City agrees to use reasonable efforts to provide
parking to registered hotel guests in the Dubuque Street Parking Ramp.
Hotel Associates agrees to assist the City in staffing the Dubuque Street
i Parking Ramp to provide for traffic control during days of peak usage.
j Parking shall be provided to meeting attendees, restaurant patrons and
bar patrons in either the Dubuque Street Parking Ramp or the Capitol
Street Parking Ramp during scheduled operating hours of the parking ramps
on an as available basis.
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2. Parking Validation. The City and Hotel Associates agree to develop a
vale atiod n system so that parking ramp tickets can be validated by Hotel
Associates employees and returned by the parking patrons to the cashier
upon exiting either parking ramp. Hotel Associates agrees to develop
appropriate security systems to prevent unauthorized use of the parking
validation system.
3. Ramp Operation. The City shall be responsible for maintaining ramp
operations. IIt is agreed that by making this agreement, the City is
neither expanding nor limiting its liability to Hotel Associates or its
guests and patrons in connection with the operation of the parking ramp,
but rather such liability shall be the same as to any other person or
entity using the parking ramp.
j 4. Parking Rates. The City will charge Hotel Associates for parking ramp
usage rates as set out in the attached Exhibit A, which exhibit is by
i this reference made a part of this agreement.
5. Additional Parkin S aces. Subject to financial resources being avail -
a e, ie Ci y agrees to provide additional downtown off-street parking
in the event of the occurrence of one or more of the following:
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a) The average combined daily occupancy of the Dubuque Street Parking
Ramp and the Capitol Street Parking Ramp exceeds 80% in any 8 months
in a 12 month period. The average daily occupancy rate will be based
upon parking usage between the hours of 9:00 a.m. and 5:00 p.m. on
non -holiday weekdays.
b) The average evening occupancy of the Dubuque Street Parking Ramp
exceeds 80% for any 8 months in a 12 month period. The average
evening occupancy rates will be based upon parking usage between the
hours of 5:00 p.m. and 10:00 p.m. on non -holiday weekdays.
Dated at Iowa City, Iowa, on the date given above.
CITY OF IOWA CITY, IOWA
By:
Mary C. �lhuhauser, Mayor
ATTEST:
CIT CLERK
HARRY A. J NSON, JR.
STATE OF IOWA )
y ) SS:
i^ JOHNSON COUNTY )
On this Jar/day� : „:d qualified
fo A.D. Ibefore me, a Notary Public u y commissioned
and qua I ied in and for said County and
State, personally appeared Mary C. Neuhauser, Mayor of the City of Iowa City,
Iowa, and Marian Karr, City Clerk of said City, each being to me personally
? known to be the identical persons and officers named in the foregoing
k instrument, who executed the same under and by virtue of the authority vested
in them by the City Council of said City, and each for himself/herself
acknowledged the execution thereof to be his/her voluntary act and deed for
purposes herein expressed.
,
IN TESTIMONY WHEREOF, I have hereunto set my hand and notarial Seal at Iowa
I
City, Iowa, the day and year last above written.
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Nota ih and tor—the State
of Iowa
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STATE OF MA VIAhvc56M )
HZ�I/N'e P//y ) SS
JOHNSON COUNTY
� )
On this 3V L day of I2PiC 1983, before me, the under-
signed, a Na NNo-Tary Public to ana Tor said State, personally appeared Harry A.
Johnson, Jr. to me known to be the identical person named in and who executed
the foregoing instrument, and acknowledged that he executed the same in his
voluntary act and deed.
ua
Notary Puzc in ana Tor
t ne OTS
State of 4M N
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EXHIBIT A
I. REGISTERED HOTEL GUESTS AND RESTAURANT PATRONS
Hotel Associates will contract with the City for parking provided to
hotel patrons for a monthly fee to be paid to the City. The monthly fee
is based upon a computation utilizing the monthly permit rate in effect
at the time the calculation is made times 100 parking spaces. The
monthly fee will cover the cost of 60,000 hours of parking per month for
hotel patrons. In the event the parking ramps are staffed by the City
for operation on Sundays and/or holidays, the amount of hours of parking
per month will be prorated accordingly.
A. Annual Adjustment of Monthly Fees. Should the actual hours of
parking utilized by hotel patrons exceed 720,000 hours per year
(60,000 hrs/month X 12 months), Hotel Associates will annually pay
the City for any excess hours of parking, at the hourly rate in
effect at the end of the annual 12 month period. The first annual
period shall end 11 months from the end of the first calendar month
of hotel operation with each successive annual period ending 12
months thereafter. Any fee for a partial month shall be a prorated
portion of the monthly fee.
B. Actual Hours of Hotel Patron Parking. The City agrees to provide
hotel patron parking usage figures monthly and a final full year
report within 45 days after the end of each hotel operation year,
( Hotel Associates shall have the right to audit the hotel guest
parking usage figures provided by the City.
C. Computation Formulas:
1. Monthly fee:
(100 parking spaces) X (monthly permit rate in effect at the time
calculation is made) = monthly fee
2. Annual adjustment of monthly fees:
a. (actual hours of hotel patron parking) -(720,000 hours) _
excess hours of parking.
b. If excess hours of parking is positive:
(Excess hours of parking) X (Hourly rate in effect at end of
year) = Annual adjustment.
c. If excess hours of parking is negative, for the first year
only: that negative amount of hours will be carried over to
the second year and added to the annual hour base of 720,000
hours to be used in the computation of the annual adjustment
of monthly fees for the second year.
D. Payment Due Date. Hotel Associates agrees to pay the monthly fee by
t e 5t o t e following month and the annual adjustment with 45
days after the annual, 12 month period.
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E. Renegotiation. The computation formulas listed in Section I -C are
subject to renegotiation should daily parking demand necessitate the
removal of permit parking in the Dubuque Street Parking Ramp.
II. HOTEL EMPLOYEES, RESTAURANT EMPLOYEES
Parking will be provided as available to the general public at the normal
rates.
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E. Renegotiation. The computation formulas listed in Section I -C are
subject to renegotiation should daily parking demand necessitate the
removal of permit parking in the Dubuque Street Parking Ramp.
II. HOTEL EMPLOYEES, RESTAURANT EMPLOYEES
Parking will be provided as available to the general public at the normal
rates.
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City of Iowa City
MEMORANDUM
Date: December 22, 1983
To: City Council
From: City Manager ,�
Re: Hotel - Parking Agreement
The hotel prospectus stated:
"The Dubuque Street Ramp, a multi-level 450 space municipal parking
garage, is directly south of the site. This facility was designed to
service the site and can be expanded up to an additional two levels
increasing the capacity by another 200 cars. The City will consider
expansion when user demand is apparent and funding is available."
In addition, the UDAG grant requires the City to enter into a parking
agreement, as follows:
"Recipient shall execute a Parking Agreement with Developer guaranteeing
that there will be adequate parking reserved for hotel guests in
municipal Parking Ramp B..."
The proposed parking agreement is attached. The financial provisions of the
agreement provide:
1.. The hotel will lease 100 spaces at the regular monthly rate of $25.
2. Based on actual hours of usage during the year, the hotel may pay an
additional fee to the City if the usage exceeds an established limit.
Computation appears in No. 7 below. In the first year only, if the usage
is less than the maximum number of hours, any balance will be added to
the allowance for the second year. This exception for the first year is
provided to recognize business start-up conditions.
3. Any additional charge will be at the regular hourly charge of $.25.
4. The City will cooperate with the hotel management to ensure adequate.
space for registered hotel guests in the Dubuque Street ramp. It is
recognized that some hotel use will probably occur in the Capitol Street
ramp. 0
5. If the daily parking demand impinges upon other current permit usage in
the ramp, the hotel terms are subject to renegotiation.
6. Any general increase in the monthly permit or hourly rates wll apply to
the hotel.
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7., Computation Formula
A.25 days (deletes Sundays and holidays) x 24 hours = 600 hours per
month per space.
B. 600 hrs. per month x 100 permits = 60,000 hours per month.
C. 60,000 hrs. per month x 12 months = 720,000 hours per year.
D. Computation of Payment to City (100 parking spaces) x (monthly fee in
effect at time calculation is made) = monthly payment to City.
E. Annual Adjustment of Fee
1. (Actual hours of hotel patron parking) - (720,000 hours) = excess
hours of parking.
2. If excess hours of parking is positive
(Excess hours of' parking) x (hourly rate in effect at end of
year) = annual adjustment.
8. Examples
A. 720,000 parking hours per year used.
100 x $25 x 12 = $30,000
B. 600,000 parking hours per year used.
First Year Only
100 X $25 X 12 = $30,000. However, difference between 720,000 hours
and 600,000 hours or 120,000 hours is added to the number of avail-
able hours for the second year. Such a carryover will be permitted
in the first year only.
All Other Years
100 X $25 X 12 = $30,000
C. 820,000 parking hours per year used.
720,000 hrs. = 100 spaces x $25 x 12 months = $30,000
100,000 hrs. x $.25 = $25 000
Total Payment =$55"000
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