HomeMy WebLinkAbout1983-12-23 Public hearingNOTICE OF PUBLIC HEARING OF
INTENTION TO ISSUE
COMMERCIAL DEVELOPMENT REVENUE
BONDS (GILBERT TOWER
ASSOCIATES 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
January 17, 1984, on the proposal to issue
not to exceed $850,000 principal amount of
the City's Commercial Development Revenue
Bonds (Gilbert Tower Associates 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, improving and equipping a
29 -unit multi -family residential apartment
facility to be located at 601 South
Gilbert and contiguous properties within
the corporate boundaries of the City and
within the area of and consistent with the
City's Neighborhood Development Plan. The
proposed facilities will be owned by
Gilbert Tower Associates, 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.
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 statu-
tory limitation, and shall not constitute
nor give rise to a 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
.' :
MARMN KARR, CITY CLERK
MICRDLILMED. BY
JORM MICR( LAE3 l `1
CEDAR RDIP'DS • DEC MOINES f
i
l
Section 3. The City recognizes that regulations promulgated
under Section 103 of the Code 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 he 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.
j
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 December 23, 1983.
City of Iowa City, Iowa
i
(SEAL)
Mary C Neuhauser, Mayor
Attest:
Maw -K. Karr, City Clerk
I
-7-
MICROFILMED
7 -
MICROFILMED. aY
t JORM MICR#LAB 1
CEDAR RAIDS • DEC MOINES 1.
D
.,%
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 December 23, 1983, regarding the issuance
of not to exceed $850,000 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; 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 2.3rd day of August, 1983.
(SEAL) Ma ian 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 ublic in abd for the
(SEAL) State of Iowa
-8-
.
JORM MICR+LAB
-CEDAR RPPIDS • DES MOINES 1
333
9
WA
4
(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.M.
Council Chambers
Civic Center
Iowa City, Iowa
PUBLIC NOTICE IS HEREBY GIVEN that the above-mentioned
governmental body will meet at the date, time and place above
set out. The tentative agenda for said meeting is as follows:
1. Resolution Regarding the Issuance of Not To
Exceed $850,000 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.
2. Such additional matters as are set forth on
the. additional four (4) 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.
MOLICIn x. Karr, Clerk of the
City of Iowa City, Iowa
-9-
y.... ..... M I CROF I LMED. BY.
JORM MICR+LA9
-CEDAR RAP?DS • DES MOINES
v.'vBPn. �"Rc
-q�av<AI U�73�b3
,3533
0
1
i
t
I
(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.M.
Council Chambers
Civic Center
Iowa City, Iowa
PUBLIC NOTICE IS HEREBY GIVEN that the above-mentioned
governmental body will meet at the date, time and place above
set out. The tentative agenda for said meeting is as follows:
1. Resolution Regarding the Issuance of Not To
Exceed $850,000 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.
2. Such additional matters as are set forth on
the. additional four (4) 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.
MOLICIn x. Karr, Clerk of the
City of Iowa City, Iowa
-9-
y.... ..... M I CROF I LMED. BY.
JORM MICR+LA9
-CEDAR RAP?DS • DES MOINES
v.'vBPn. �"Rc
-q�av<AI U�73�b3
,3533
0
EXHIBIT "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 -Gilbert Tower
Associates, 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 empowered by 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,
improving and equipping a 29 -unit multi-Eamily residential
apartment facility to be located at 601 South Gilbert and
contiguous properties within the corporate boundaries of the
City (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 and 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 $850,000.
(d) Representatives of the City have indicated the will-
ingness of the City to proceed with and effect such financing
-1-
,� � .. ..,.... 141CROFIL14ED BY___.._..
l JORM MICR+LAB
{ -CEDAR R67D5 • DES MOINES 1
_J
3f33
2
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 and
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
jurisdictions, increase the City's commerce and add to the
welfare and prosperity of the City and that of its inhabitants.
2. Undertakings on the Part of the City. The City agrees
as follows:
(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
terms of the Act as then in force, in an aggregate principal
amount presently estimated not to exceed $850,000.
(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 Loin Agree as -,I
ment with the Company with respect to the Pioject,
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 pay
e.
(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.
-2-
�.. MI CROEILMED BY....
l JORM MICR#LAB
} CEDAR RAPIDS • DES MOINES
f
r
■
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.
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 January 1, 1985 (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
-3-
�_.. ........MICROFILMED BY '=I�
t JORM MICR +LAB � 1
?
-CEDAR RPPIDS • DES MOINES 1
3e133
..a
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 1959, 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
of T 2 �itv. Iowa.
(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 23rd day of December, 1983.
City of Iowa City, Iowa
(Seal of City)
Mary Cfl Neuhauser, Mayor
Attest:
Maf-ian K. Karr, City Clerk
iTlbe t Tower Associates
4A. Clar , ge eral partner
C. Clark,ge� partner I
-Q-
E
MILRDEILMEO BY f'
t JORM MICR+LAD E
-CEDAR RAPIDS • OE= MOINES
144
(R
City of Iowa City
MEMORANDUM
DATE: December 19, 1983
TO: City Council
FROM: Rosemary Vitosh, Finance Director L
RE: Industrial Revenue Bond Application for the Gilbert Street
Tower Assoc. Project
An application was received from James and Loretta Clark for the
Gilbert Street Tower Assoc. Project for the construction of a 29 -
unit apartment complex at 601 South Gilbert Street (the Southwest
corner of Gilbert and Prentiss Streets). Staff has reviewed the
application and finds no legal or financial problems with the
project pending 1) approval of the design by the Design Review
Committee and 2) Council approval of the expansion of the IRB
eligible area to include the project site. The Design Review
Committee is scheduled to meet December 19, 1983, and the minutes
of their meeting will be sent to Council prior to the December 23,
1983, special Council meeting. The expansion of the IRB eligible
area is on the December 20, 1983, Council agenda.
The application states the reason for requesting bonds is that
conventional financing makes the project infeasible due to the
high interest rates.. IRB financing will provide that six of the
apartment units will be scheduled to be placed under the City's
Section 8, Assisted Housing Program for low to moderate income
tenants.
111CR0F1LME0 BY��
-i
JORM MICR+LAB
CEDAR RAPIDS • DE. MOINES �
Q
a3 733
11
I-,
M
Matters were discussed relative to final authorization and
issuance of $8,105,000 in aggregate principal amount of the
City's Lender -Assisted Commercial Development Revenue Bonds
(Mid City Hotel Associates - Iowa City Project) Series 1983.
Following a report on the proposed Project by representatives
of the Developer and a discussion of the Bond issue, Council
Member Perrer proposed the following Resolution and moved
its adoption. Council Member McDonald seconded the motion
to adopt. After due consideration of said motion, the roll was
called and the Resolution adopted by the following vote:
AYES: Balmer, Dickson, McDonald, Neuhauser,
Perret
NAYS:
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:
-2-
.. ...,-._,t410R0FllMED.BY.
JORM MICR+LAB
f -CEDAR RXIDS • DE_ MOINES I}.
3 to
I
R