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.