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HomeMy WebLinkAbout2011-11-21 ResolutionRESOLUTION NO. 11 -353 A RESOLUTION RELATING TO THE ISSUANCE OF NOT TO EXCEED $1,832,000 IN AGGREGATE PRINCIPAL AMOUNT OF MIDWESTERN DISASTER AREA REVENUE BONDS (EPS PROPERTIES LLC PROJECT) SERIES 2011, OF THE CITY OF IOWA CITY, IOWA; AND SPECIFICALLY (1) DECLARING INTENT TO REIMBURSE EXPENDITURES FROM PROCEEDS OF SAID BONDS; (2) FIXING A DATE FOR A PUBLIC HEARING ON DECEMBER 6, 2011, ON THE PROPOSAL TO ISSUE SAID BONDS; AND (3) DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE SAID BONDS. WHEREAS, the City of Iowa City, Iowa (hereinafter "Issuer "), is authorized and empowered by Chapter 419 of the Code of Iowa, as amended, (hereinafter "Act ") to issue revenue bonds or notes 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 constructing, and improving land, buildings and improvements for a "project," as that term is defined in the Act, specifically including a project which is suitable for use for a purpose authorized under the Emergency Economic Stabilization Act of 2008, Pub. L. No. 110 -185, within Issuer in order to create jobs and employment opportunities, facilitate recovery from the flooding of 2008 and to improve the welfare of the residents of the Issuer and of the State of Iowa; and WHEREAS, the Issuer has been requested by EPS Properties LLC, an Iowa limited liability company organized under Chapter 489 of the laws of Iowa (hereinafter "Borrower "), to authorize and issue its Midwestern Disaster Area Revenue Bonds in an amount not to exceed $1,832,000 (the "Bonds ") pursuant to the provisions of the Act for the purpose of financing a portion of the cost of constructing and improving approximately 3.51 acres and a new approximate 10,000 square foot medical office building located in the 2600 block of Northgate Drive, Iowa City, Iowa (hereinafter "Project "), and to pay the costs of issuance of the Bonds; and WHEREAS, the Project will be owned and operated by Borrower; and WHEREAS, said Project will provide and induce other public benefits flowing from the conduct of enhanced operations which will add to the welfare and prosperity of the Issuer and its inhabitants; and WHEREAS, the Borrower has determined that the amount necessary to defray a portion of the cost of the Project, including paying the costs of issuing the Bonds, will require the issuance by the Issuer of not to exceed $1,832,000 in aggregate principal amount of its Midwestern Disaster Area Revenue Bonds pursuant to the provisions of the Act and it is proposed that the Issuer loan the amount received from the sale of the Bonds to Borrower under a loan agreement to be agreed upon between the Issuer and Borrower pursuant to which loan payments will be made by Borrower in amounts sufficient to pay the principal, interest and premium, if any, on the Bonds when due; and WHEREAS, the Bonds shall be limited obligations of the Issuer and shall not give rise to a pecuniary liability of the Issuer or be a charge against its general credit or taxing powers, and Resolution No. 11 -353 Page 2 the principal of, interest and premium, if any, on the Bonds shall be payable solely out of the revenues of the Borrower derived from the Project; and WHEREAS, the Issuer and the Borrower desire to comply with the requirements of Treasury Regulation Section 1.150 -2 (the "Reimbursement Regulations "); and WHEREAS, before the Bonds may be issued, it is also 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 147(f) of the Internal Revenue Code of 1986, as amended (the "Code "). NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Iowa City, Iowa, as follows: Section 1. A public hearing shall be conducted on December 6, 2011, at 7:00 p.m., before the City Council of the City of Iowa City, Iowa in the Council Room, City Hall, 410 E. Washington Street, Iowa City, IA 52240 on the proposal to issue not to exceed $1,832,000 in aggregate principal amount of the Issuer's Midwestern Disaster Area Revenue Bonds (EPS Properties LLC Project) Series 2011, pursuant to the provisions of the Act, for the purpose of financing a portion of the cost of constructing, and improving approximately 3.51 acres of land and a new approximate 10,000 square foot medical office building (the "Project "), all of which is located in the 2600 block of Northgate Drive, Iowa City, Iowa, and paying the costs of issuing the Bonds, and allowing all local residents who appear at the hearing to be given an opportunity to express their views for or against the proposal to issue the Bonds and at the conclusion of the hearing, the City Council shall adopt a resolution determining whether or not to proceed with the issuance of the Bonds. Section 2. The City Clerk is hereby directed to publish one time, not less than fifteen (15) days prior prior to the date fixed for the hearing, in the Iowa City Press Citizen, a newspaper published and having a general circulation within the City, a Notice of Intention (the "Notice ") to issue the Bonds. The Notice shall be in substantially the form of the notice attached as Appendix A. Section 3. Based upon the representations of the Borrower, the Issuer declares (a) that the Borrower proposes to undertake the Project, and (b) that except for (i) expenditures aggregating no more than the lesser of One Hundred Thousand Dollars ($100,000) or five percent (5 %) of the proceeds of the Bonds, (ii) preliminary expenditures (as described in the Reimbursement Regulations) in an amount not exceed twenty percent (20 %) of the issue price of the Bonds, and (iii) other expenditures made not earlier than sixty (60) days before the date hereof, no expenditures for the Project have been made by the Borrower and no expenditures will be made by the Borrower until after the date hereof. The Resolution is a declaration of official intent with respect to the Project as described in the Resolution adopted pursuant to Section 1.150 -2 of the Regulations under the Code. Section 4. The 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 5. This Resolution shall be in full force and effect immediately upon its adoption. 2 Resolution No. 11 -353 Page 3 Adopted and approved this 21 st day of November, 2011. CITY OF IOWA CITY, IOWA (Corporate Seal) MATTHEW J. HAYEK, MAYOR ATTEST: MARIAN K. KARR, City Clerk Approved by Counsel Resolution No. 11 -353 Page 4 It was moved by Bailey and seconded by Champion the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: x x Champion x Dickens x Hayek x x_ Wilburn x Wright wpd ata/gl ossary/resol utio n -ic. doc APPENDIX A NOTICE OF PUBLIC HEARING OF INTENTION TO ISSUE MIDWESTERN DISASTER AREA REVENUE BONDS (EPS PROPERTIES LLC PROJECT) SERIES 2011 Notice is hereby given that the City Council of the City of Iowa City, Iowa, (hereinafter "Issuer ") will meet on the 6th day of December, 2011, in the Council Room, at the City Hall, 410 E. Washington Street, Iowa City, IA 52240 at 7:00 p.m., and hold a public hearing on the proposal to issue not to exceed $1,832,000 principal amount of the Issuer's Midwestern Disaster Area Revenue Bonds (EPS Properties LLC Project), Series 2011, (hereinafter "Bonds ") pursuant to the provisions of Chapter 419 of the Code of Iowa, as amended, and Sections 103 and 141- 150 of the Internal Revenue Code of 1986, as amended, for the purpose of defraying a portion of the cost of constructing and improving approximately 3.51 acres and a new approximate 10,000 square foot medical office building (the "Project ") located in the 2600 block of Northgate Drive, Iowa City, Iowa, and paying the costs of issuing the Bonds. The Project will be owned and operated by EPS Properties LLC, a limited liability company organized and existing under the laws of the State of Iowa (hereinafter "Borrower "). It is contemplated that a Loan Agreement will be entered into between the Issuer and Borrower wherein the Issuer will loan to Borrower the proceeds from the sale of the Bonds in return for loan payments from Borrower sufficient to pay the principal of, interest and premium, if any, on such Bonds as the same shall become due and payable. Such Bonds, if issued, and the interest thereon will be payable solely out of the revenues derived from the Project and shall never constitute an indebtedness of the Issuer within the meaning of any state constitutional provision or statutory limitation and shall not constitute nor give rise to a pecuniary liability of the Issuer or become a charge against its general credit or taxing powers. All local residents who appear at the public hearing or any adjustment thereof, shall be given an opportunity to express their views for or against the above stated proposal and, at the meeting or any adjournment thereof, the City Council of the City of Iowa City, Iowa shall adopt a resolution determining whether or not to proceed with the issuance of the Bonds. Written comments may also be submitted by the time of the above hearing, to the Issuer at City Hall, 410 E. Washington Street, Iowa City, IA 52240.