HomeMy WebLinkAbout2016-08-16 Resolution—p8-16-10
2C(6)
Prepared by: Marian K. Karr, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5043
RESOLUTION NO. 16-239
RESOLUTION TO ISSUE DANCING PERMIT
BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that a Dancing
Permit as provided by law is hereby granted to the following named person and at the
following described locations upon his/her filing an application, having endorsed thereon
the certificates of the proper city officials as to having complied with all regulations and
ordinances, having a valid beer, liquor, or wine license/permit, to wit:
The Summit Restaurant & Bar - 10 S. Clinton St.
The Union Bar - 121 E. College St.
Passed and approved this 16th day of August 2016
v
WAYOR
� Approved by
ATTEST: �22J -e , y�
CITY -CLERK
City Attorney's Office
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
x
x
NAYS:
Thomas
ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
Late Handouts Distributed a
Prepared by: Ben Clark, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240; (319) 356- 5436
(Date) RESOLUTION NO.
RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO
SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR
CONSTRUCTION OF THE 2016 DERWEN DRIVE PAVEMENT
REHABILITATION AND DRAINAGE TILE INSTALLATION PROJECT.
WHEREAS, All American Concrete, Inc. of West Liberty, has submitted the lowest responsible bid
of $91,798.00 for construction of the above-named project; and
WHEREAS, funds for this project are available in the AnnualSt rmwater Improvements Fund
account # M3631.
i
NOW, THEREFORE, E IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The contract for the onstruction of the above -n ed project is hereby awarded to All
American Concrete, c., subject to the co ition that awardee secure adequate
performance and payme bond, insurance ce ' Icates, and contract compliance program
statements.
2. The Mayor is hereby authori d to sign nd the City Clerk to attest the contract for
construction of the above -name project, subject to the condition that awardee secure
adequate performance and payme bon , insurance certificates, and contract compliance
program statements.
3. The City Engineer is authorized to e c change orders as they may become necessary
in the construction of the above-na ed pro' ct.
Passed and approved this y of 20
MAYOR
Approved by
ATTEST: n
CITY CLERK City Attorney's Office d-lrho
It was moved by and seconded by the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS:
ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
os -
2d(1)
Prepared by: Ben Clark, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240; (319) 356- 5436
RESOLUTION NO.
RESOLUTION AWARDING CONTRACT AND
SIGN AND THE CITY CLERK TO ,
CONSTRUCTION OF THE 2016 D
REHABILITATION AND DRAINAGE TILE INSI
of , has
for construction of the above-named pro,
for this project are available in
account #
NOW, THEREFOIBE IT RESOLVED BY
CITY, IOWA, THAT:
1. The contract for
performance and
statements.
construction of
subject to
%nt bond, insu)
2. The Mayor is hereby autl
construction of the above -
adequate performance and
program statements.
3. The City Engineer is autl
in the construction of the
Passed and approved this
ATTEST:
CITY CLERK
It was moved by T
adopted, and upon roll
AYES:
there were:
to
IZING THE MAYOR TO
A CONTRACT FOR
DRIVE PAVEMENT
V PROJECT.
the lowest responsible bid of
and
Annual Stormwater Improvements Fund
CITY COUNCIL OF THE CITY OF IOWA
above-named project is hereby awarded to
condition that awardee secure adequate
certificates, and contract compliance program
(o sign and the City Clerk to attest the contract for
project, subject to the condition that awardee secure
it bond, insurance certificates, and contract compliance
day of
MA
change orders as they may become necessary
and seconded by
NAYS:
2016.
by
City Attornby s Office
the Resolution be
ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
�z dCkj
NOTICE TO BIDDERS
DERWEN DRIVE PAVEMENT REHABILITATION AND DRAINAGE TILE
INSTALLATION PROJECT
Sealed proposals will be received by the City Clerk of the City of Iowa City, Iowa, until 2:30 P.M.
on the 11th day of August, 2016. Sealed proposals will be opened immediately thereafter by the
City Clerk or designee. Bids submitted by fax machine shall not be deemed a "sealed bid" for
purposes of this Project. Proposals received after this deadline will be returned to the bidder
unopened. Proposals received after this deadline will be returned to the bidder unopened.
Proposals will be acted upon by the City Council at a meeting to be held in the Emma J. Harvat
Hall at 7:00 P.M. on the 16th day of August, 2016, or at special meeting called for that purpose.
The Project will involve the following: removal and replacement of approximately 400 linear feet of
roadway and the installation of a subsurface drainage system on Derwen Drive adjacent to its
intersection with Sunset Street in Iowa City, IA. Sidewalk curb ramps will also be installed to bring
the intersection into compliance with the Americans with Disabilities Act.
All work is to be done in strict compliance with the plans and specifications prepared by the City of
Iowa City Engineering Division, which have heretofore been approved by the City Council, and are
on file for public examination in the Office of the City Clerk.
Each proposal shall be completed on a form furnished by the City and must be submitted in a
sealed envelope. In addition, a separate sealed envelope shall be submitted containing a
completed Bidder Status Form and a bid bond executed by a corporation authorized to contract
as a surety in the State of Iowa, in the sum of 10% of the bid. The bid security shall be made
payable to the TREASURER OF THE CITY OF IOWA CITY, IOWA, and shall be forfeited to the
City of Iowa City in the event the successful bidder fails to enter into a contract within ten (10)
calendar days of the City Council's award of the contract and post bond satisfactory to the City
ensuring the faithful performance of the contract and maintenance of said Project, if required,
pursuant to the provisions of this notice and the other contract documents. The City shall retain
the bid security furnished by the successful bidder until the approved contract form has been
executed, a bond has been filed by the bidder guaranteeing the performance of the contract, and
the contract and bond have been approved by the City. The City shall promptly return the checks
or bidder's bonds of unsuccessful bidders to the bidders as soon as the successful bidder is
determined or within thirty days, whichever is sooner.
The successful bidder will be required to furnish a bond in an amount equal to one hundred
percent (100%) of the contract price, said bond to be issued by a responsible surety approved by
the City, and shall guarantee the prompt payment of all materials and labor, and also protect and
save harmless the City from all claims and damages of any kind caused directly or indirectly by
the operation of the contract, and shall also guarantee the maintenance of the improvement for a
period of five (5) year(s) from and after its completion and formal acceptance by the City Council.
The following limitations shall apply to this Project:
Working Days: 60
Specified Start Date: August 20th 2016
Liquidated Damages: $250 per day
The plans, specifications and proposed contract documents may be examined at the office of the
City Clerk. Copies of said plans and specifications and form of proposal blanks may be secured at
the Office of Rapids Reproductions, 415 Highland Ave Suite 100, Iowa City, IA 52240, (319) 354-
5950, by bona fide bidders.
A $25 fee is required for each set of plans and specifications provided to bidders or other
interested persons. The fee shall be in the form of a check, made payable to Rapids
Reproductions. The fee is refundable if returned within 14 days of award of the project by City
Council in re -usable condition.
Prospective bidders are advised that the City of Iowa City desires to employ minority contractors
and subcontractors on City projects. A listing of minority contractors can be obtained from the
Iowa Department of Inspections and Appeals at (515) 281-5796 and the Iowa Department of
Transportation Contracts Office at (515) 239-1422.
Bidders shall list on the Form of Proposal the names of persons, firms, companies or other parties
with whom the bidder intends to subcontract. This list shall include the type of work and
approximate subcontract amount(s).
The Contractor awarded the contract shall submit a list on the Form of Agreement of the proposed
subcontractors, together with quantities, unit prices and extended dollar amounts.
By virtue of statutory authority, preference must be given to products and provisions grown and
coal produced within the State of Iowa, and to Iowa domestic labor, to the extent lawfully required
under Iowa Statutes. The Iowa reciprocal resident bidder preference law applies to this Project.
The City reserves the right to reject any or all proposals, and also reserves the right to waive
technicalities and irregularities.
Posted upon order of the City Council of Iowa City, Iowa.
MARIAN K. KARR, CITY CLERK
i
� r �
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
ENGINEER'S REPORT www.icgov.org
August 3, 2016
City Clerk
Iowa City, Iowa
Re: 2015 Sewer Rehabilitation Project
Dear City Clerk:
I hereby certify that the construction of the 2015 Sewer Rehabilitation Project has been
completed by Municipal Pipe Tool Company of Hudson, IA in substantial accordance with the
plans and specifications prepared by Shoemaker & Haaland Engineering.
This project was bid as a unit price contract and the final contract price is $274,184.85.
There were five change orders resulting in a $13,042.05 cost reduction for the project as shown
below:
1. CO #1
Lakeside Drive liner grinding
$
650.00
2. CO #2.1
Additional Oversized MH Lining
$
2,268.00
3. CO #2.2
MH Lining Cost Substitution Reduction
($15,413.05)
4. CO #3.1
Bowery Street Additional Traffic Control
$
453.00
5. CO #3.2
Bowery Street Failed Point Repair Credit
($
1,000.00)
Reduction Total ($13,042.05)
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
Jason Havel, P.E.
City Engineer
p ng/mastem/engmt dw
2d(3)
Prepared by: Josh Slattery, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5149
RESOLUTION NO.
RESOLUTION ACCEPTING THE WORK FOR THE STORM SEWER, SANITARY
SEWER, WATER MAIN, AND PAVING PUBLIC IMPROVEMENTS FOR SILVER
SLOPE — PART TWO, AND DECLARING PUBLIC IMPROVEMENTS OPEN FOR
PUBLIC ACCESS AND USE.
WHEREAS, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications of the City of Iowa City:
Sanitary sewer, storm sewer, and water main improvements for Silver Slope — Part Two,
as constructed by Maxwell Construction, Inc. of Iowa City, Iowa.
Paving improvements for Silver Slope — Part Two, as constructed by Metro Pavers, Inc. of
Iowa City, Iowa.
WHEREAS, the maintenance bonds have been filed in the City Clerk's office; and
WHEREAS, the City of Iowa City has notified those contractors listed previously of the date on
which it will consider acceptance of the aforementioned public improvements; and
WHEREAS, the traffic control signs have been installed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa and
that all dedications and public improvements previously set aside as not being open for public
access are hereby formally accepted and declared open for public access and use.
Passed and approved this day of 120
ATTEST
CITY CLERK
It was moved by
AYES: NAYS:
pmnglmaslemW cpl-impmvements.doc
Approved by
City Attorney's Office
and seconded by _
ABSENT:
the Resolution be
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
ENGINEER'S REPORT (319) 356 - 5009 FAX
www.icgov.org
July 20, 2016
Honorable Mayor and City Council
Iowa City, Iowa
Re: Silver Slope — Part Two
Dear Honorable Mayor and Councilpersons:
I hereby certify that the construction of the sanitary sewer, storm sewer, water'
main and paving improvements for Silver Slope — Part Two have been
completed in substantial accordance with the plans and specifications on file with
the Engineering Division of the City of Iowa City. The required maintenance
bonds are on file in the City Clerk's Office for the sanitary sewer, storm sewer,
and water main improvements constructed by Maxwell Construction, Inc. of Iowa
City, Iowa and for the paving improvements constructed by Metro Pavers, Inc. of
Iowa City, Iowa.
I recommend that the above -referenced improvements be accepted by the City
of Iowa City.
Sincerely,
,'Jason Have, P.E.
City Engineer
Prepared by: Manan K. Karr, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5043
RESOLUTION NO. 16-240
RESOLUTION TO ISSUE CIGARETTE PERMITS
WHEREAS, the following funis and persons have made an application and paid the taxes
required by law for the sale of cigarettes, tobacco, nicotine and vapor products.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY,
IOWA, THAT: the applications be granted and the City Clerk is hereby directed to issue
a permit to the following named persons and firms to sell cigarettes, tobacco, nicotine and
vapor products:
J 6 S Express - 2221 Rochester Ave.
Passed and approved this 16th day of August 20 16
MAYOR
U Approved by
ATTEST:
CI CLERK City Attorney's Office
It was moved by Botchway and seconded by.
Resolution be adopted, and upon roll call there were:
Thomas
the
AYES:
NAYS: ABSENT:
X
Botchway
X
Cole
X
Dickens
X
Mims
X
Taylor
X
Thomas
X
Throgmorton
Q A<<
Prepared by: Ben Clark, Sr. Civil Engineer, 410 E. Washington St., Iowa City, IA 52240; (319) 356- 5436
RESOLUTION NO. 16-241
RESOLUTION AWARDING CONTRACT AND AUTHORIZING THE MAYOR TO
SIGN AND THE CITY CLERK TO ATTEST A CONTRACT FOR
CONSTRUCTION OF THE 2016 DERWEN DRIVE PAVEMENT
REHABILITATION AND DRAINAGE TILE INSTALLATION PROJECT.
WHEREAS, All American Concrete, Inc. of West Liberty, has submitted the lowest responsible bid
of $91,798.00 for construction of the above-named project; and
WHEREAS, funds for this project are available in the Annual Stormwater Improvements Fund
account # M3631.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
The contract for the construction of the above-named project is hereby awarded to All
American Concrete, Inc., subject to the condition that awardee secure adequate
performance and payment bond, insurance certificates, and contract compliance program
statements.
2. The Mayor is hereby authorized to sign and the City Clerk to attest the contract for
construction of the above-named project, subject to the condition that awardee secure
adequate performance and payment bond, insurance certificates, and contract compliance
program statements.
3. The City Engineer is authorized to execute change orders as they may become necessary
in the construction of the above-named project.
Passed and approved this 16th day of August '20 16
ATTEST:) f�-'� ✓
CITY CLERK
M4*
OR
Approved by
City Attorney's Office d_Ar
It was moved by Botchway and seconded by
adopted, and upon roll call there were:
AYES:
�7
X
X
x
X
X
X
NAYS:
Thomas
ABSENT:
the Resolution be
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
Prepared by: Daniel Scott, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5144
RESOLUTION NO. 16-242
RESOLUTION ACCEPTING THE WORK FOR THE 2015 SEWER
REHABILITATION PROJECT
WHEREAS, the Engineering Division has recommended that the work for construction of the
2015 Sewer Rehabilitation Project, as included in a contract between the City of Iowa City and
Municipal Pipe Tool Company of Hudson, Iowa, dated November 10, 2015, be accepted; and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
City Clerk's office; and
WHEREAS, funds for this project are available in the annual sewer repair account # V3101; and
WHEREAS, the final contract price is $274,184.85.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 16th day of August , 20 16
- -X5�-�-
4� ``
MA OR
Approved by
ATTEST: �J1.J yv- 74r,
CIT ERK
It was moved by sotchway and seconded by
adopted, and upon roll call there were:
Pweng/masters/acptwork.doc
6/16
irt-,, /dui�m�
City Attorney's Office rI I-I11P
Thomas
the Resolution be
NAYS: ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
2d(2)
2d(4)
Prepared by: Kim Sandberg, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5139
RESOLUTION NO. 16-243
RESOLUTION ACCEPTING THE WORK FOR THE 2015 SUMMER SIDEWALK
REPAIR PROJECT
WHEREAS, the Engineering Division has recommended that the work for construction of the
2015 Summer Sidewalk Repair Project, as included in a contract between the City of Iowa City
and JDM Concrete of Kalona, Iowa, dated July 22, 2015, be accepted; and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
City Engineer's office; and
WHEREAS, funds for this project are available in the Sidewalk Inspection account # 22710220;
and
WHEREAS, the final contract price is $63,801.28.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 16th day of August _,2016.
MAXOR
Approved" by
ATTEST:L �
CIT LERK City Attorney's Office PAY4
It was moved by sotchway and seconded by 'Thomas the Resolution be
adopted, and upon roll call there were:
AYES
x
Pwenglmasters/acptwork. doc
8116
NAYS: ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
ENGINEER'S REPORT
August 3, 2016
City Council
Iowa City, Iowa
Re: 2015 Summer Sidewalk Repair
Dear City Council:
I hereby certify that the construction of 2015
completed by JDM Concrete of Kalona, Iowa
specifications prepared by the City of Iowa City
` ®1RT
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
Summer Sidewalk Repair Project has been
in substantial accordance with the plans and
The project was bid as a unit price contract and the final contract price is $63,801.28.
There were a total of two (2) change or extra work order for the project as described below:
Sprinkler Head Repair and Liquidated Damages
($365.00)
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely
Ha,
el, PE.hcason
City Engineer
Prepared by: Jason Havel, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5140
RESOLUTION NO. 16-244
RESOLUTION ACCEPTING THE WORK FOR THE FIBER INFRASTRUCTURE -
IOWA CITY SOUTH PART 1 - DUCT INSTALLATION PROJECT.
WHEREAS, the Engineering Division has recommended that the work for construction of the
Fiber Infrastructure - Iowa City South Part 1 - Duct Installation Project, as included in a contract
between the City of Iowa City and Slabach Construction Company, Inc. of Kalona, Iowa, dated
June 23, 2015, be accepted; and
WHEREAS, the Engineer's Report and the performance and payment bond have been filed in the
City Clerk's office; and
WHEREAS, funds for this project are available in the S. Wastewater Fiber Repair/Redundant
Path account # 14722; and
WHEREAS, the final contract price is $91,128.00.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa.
Passed and approved this 16th day of August '2016.
t/
Mh&OR
y�� k-1-
/ Approved by
4 ATTEST:kyLr1iuttr� rJ . Yum
CITY'CLERK City Attorney's Office end
It was moved by Botchway and seconded by Thomas the Resolution be
adopted, and upon roll call there were:
AYES:
NAYS: ABSENT:
x
Botchway
x
Cole
x
Dickens
x
Mims
x
Taylor
x
Thomas
x
Throgmorton
Pweng/masters/acptwork.doc
8/16
ENGINEER'S REPORT
August 9, 2016
City Clerk
Iowa City, Iowa
Re: Iowa City Fiber Infrastructure South Part 1 Duct Installation
Dear City Clerk:
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
I hereby certify that the construction of the Iowa City Fiber Infrastructure South Part 1 Duct
Installation Project has been completed by Slabach Construction Company Inc. of Kalona, Iowa
in substantial accordance with the plans and specifications prepared by Communications
Infrastructure Services Group.
The project was bid as a lump sum contract and was awarded for $184,968.00. The final
contract price is $191,128.00.
There was a total of one change or extra work order for the project as described below:
Duct added to both Napoleon Park concession area and $ 6,160.00
Kickers Soccer Park south concession area
TOTAL $ 6,160.00
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
Jason Havel, P.E.
City Engineer
Prepared by: Jason Reichart, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5416
RESOLUTION NO. 16-245
RESOLUTION ACCEPTING THE WORK FOR THE STORM SEWER, SANITARY
SEWER, WATER MAIN, AND PAVING PUBLIC IMPROVEMENTS FOR STONE
BRIDGE ESTATES — PART NINE, AND DECLARING PUBLIC IMPROVEMENTS
OPEN FOR PUBLIC ACCESS AND USE.
WHEREAS, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications of the City of Iowa City:
Sanitary sewer, storm sewer, and water main improvements for Stone Bridge Estates —
Part Nine, as constructed by Maxwell Construction, Inc. of Iowa City, Iowa.
Paving improvements for Stone Bridge Estates — Part Nine, as constructed by Metro
Pavers, Inc. of Iowa City, Iowa.
WHEREAS, the maintenance bonds have been filed in the City Clerk's office; and
WHEREAS, the City of Iowa City has notified those contractors listed previously of the date on
which it will consider acceptance of the aforementioned public improvements; and
WHEREAS, the traffic control signs have been installed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa and
that all dedications and public improvements previously set aside as not being open for public
access are hereby formally accepted and declared open for public access and use.
Passed and approved this 16th day of August 120 16
MAJYOR
Approved by
ATTEST: lI a4-e,10� �Ctrti�
CITY—CLERK
—Cit yAttorney's Office -,
S'/ � /4'
It was moved by Botchway and seconded by Thomas the Resolution be
AYES:
X
X
X-1
X
X
X
X
p ngMastersWWl-improvemonls. dw
NAYS: ABSENT:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
U8=
2d(6) 10-10
d(_1(b 1
r,r ,
cccc�z
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
ENGINEER'S REPORT
August 4, 2016
Honorable Mayor and City Council
Iowa City, Iowa
Re: Stone Bridge Estates — Part Nine
Dear Honorable Mayor and Councilpersons:
I hereby certify that the construction of the sanitary sewer, storm sewer, water main and
paving improvements for Stone Bridge Estates — Part Nine have been completed in
substantial accordance with the plans and specifications on file with the Engineering
Division of the City of Iowa City. The required maintenance bonds are on file in the City
Clerk's Office for the sanitary sewer, storm sewer and water main improvements
constructed by Maxwell Construction, Inc. of Iowa City, Iowa and for the paving
improvements constructed by Metro Pavers, Inc. of Iowa City, Iowa.
I recommend that the above -referenced improvements be accepted by the City of Iowa
City.
Si
4'k,
Jason Havel, P.E.
City Engineer
2d(7)
Prepared by: Dave Panes, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5145
RESOLUTION NO. 16-246
RESOLUTION ACCEPTING THE WORK FOR THE SANITARY SEWER, STORM
SEWER, WATER MAIN, AND PAVING PUBLIC IMPROVEMENTS FOR
GENERAL QUARTERS — PART TWO, AND DECLARING PUBLIC
IMPROVEMENTS OPEN FOR PUBLIC ACCESS AND USE.
WHEREAS, the Engineering Division has certified that the following improvements have been
completed in accordance with the plans and specifications of the City of Iowa City:
Sanitary sewer, storm sewer, and water main improvements for General Quarters — Part
Two, as constructed by Maxwell Construction of Iowa City, Iowa.
Paving improvements for General Quarters — Part Two, as constructed by Streb
Construction Co., Inc. of Iowa City, Iowa.
WHEREAS, the maintenance bonds have been filed in the City Clerk's office; and
WHEREAS, the City of Iowa City has notified those contractors listed previously of the date on
which it will consider acceptance of the aforementioned public improvements.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT said improvements are hereby accepted by the City of Iowa City, Iowa and
that all dedications and public improvements previously set aside as not being open for public
access are hereby formally accepted and declared open for public access and use.
Passed and approved this 16th day of
ATTEST:
CITY CLERK
pwengMasterMacpt-improvemems doc
at
L .
MA ` -6R
Approved by
20 16
4Ity? l v
Attorney's Office//,/yb
Resolution No.
Page 2
16-246
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
Thomas the
AYES:
NAYS: ABSENT: ABSTAIN:
x
Botchway
%
Cole
%
Dickens
x
Mims
%
Taylor
x
Thomas
x
Throgmorton
ENGINEER'S REPORT
August 10, 2016
City Clerk
Iowa City, Iowa
Re: General Quarters — Part 2
,-`
11 I
®ter
CITY OF IOWA CITY
410 East Washington Street
Iowa City, Iowa 52240 - 1826
(319) 356 - 5000
(319) 356 - 5009 FAX
www.icgov.org
Dear City Clerk:
I hereby certify that the construction of the sanitary sewer, storm sewer, water main, certain
sidewalk, and paving improvements for the General Quarters — Part 2 has been completed in
substantial accordance with the plans and specifications prepared by Hall and Hall Engineers,
Inc. of Hiawatha, Iowa. The required maintenance bonds are on file in the City Clerk's Office for
the sanitary sewer, storm sewer, and water main improvements constructed by Maxwell
Construction of Iowa City, Iowa and for the sidewalk, and paving improvements constructed by
Streb Construction Co., Inc. of Iowa City in substantial accordance with the plans and
specifications.
I recommend that the above -referenced improvements be accepted by the City of Iowa City.
Sincerely,
Jason Havel, P.E.
City Engineer
pw nglmasterslengrpt doc
VO -10 10
2d(8)
Prepared by: Kevin Slutts, Water Superintendent, 80 Stephen Atkins Dr., Iowa City, IA 52240 (319) 356-5167
RESOLUTION NO. 16-247
RESOLUTION AUTHORIZING THE PROCUREMENT OF WATER METERS
FOR FISCAL YEAR 2017.
WHEREAS, water meters are necessary to facilitate utility billing for the City of Iowa City; and
WHEREAS, water meters are purchased regularly throughout the fiscal year; and
WHEREAS, to assure compatibility between water meters and existing electronic equipment and
software, Staff recommends the purchase of Neptune Water Meters; and
WHEREAS, Ferguson Waterworks in the only authorized distributor of Neptune Water Meters in
our area; and
WHEREAS, Staff recommends award of a purchase contract with Ferguson Waterworks; and
WHEREAS, the budgeted fiscal year 2017 amount for the purchase of water meters is $186,000;
and
WHEREAS, this amount exceeds the City Manager's spending authority of $150,000, thus
requiring City Council approval; and
WHEREAS, funds for this purchase are available in account # 73730140; and
WHEREAS, approval of this procurement is in the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The proposed procurement as described above is approved.
2. The City Manager is authorized to take the steps necessary to make the purchase.
Passed and approved this 16th day of August 2016.
MPVOR
r/ Approved by
ATTEST: ? II vl to
CITY CTERK City tt trey's O ce
Resolution No. 16-247
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT: ABSTAIN:
Thomas the
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Tbrogmorton
Prepared by: Dennis Bockenstedt, Finance Director, 410 E. Washington St., Iowa City IA 52240 (319) 356-5053
RESOLUTION NO. 16-248
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST THE RENEWAL OF A CONTRACT FOR DESIGN, PRODUCTION, AND
MAILING OF THE CITY OF IOWA CITY UTILITY BILL, LANDFILL BILL, ACCOUNTS
RECEIVABLE BILL, ENVELOPES, AND WEB SERVICE FOR ONE ADDITIONAL YEAR.
WHEREAS, the City has previously established a contract for the above services with SourceHOV; and
WHEREAS, the City's current contract term with SourceHOV will expire on September 16, 2016; and
WHEREAS, due to the hardship that would be created by changing to a new system at this time because
of the implementation of a new ERP system, the City seeks to renew the contract for the above
services with SourceHOV for one additional year; and
WHEREAS, City policy requires City Council approval for contracts over $150,000; and
WHEREAS, the service fees for SourceHOV for a one year renewal are estimated to be $170,000; and
WHEREAS, funds for this purchase are available in Account # 10310400 435054 and
Account #10310400 435055; and
WHEREAS, approval of this procurement is in the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The City Manager is hereby authorized to sign and the City Clerk to attest to the renewal of the
contract with SourceHOV for Design, Production, and Mailing of the City of Iowa City Utility Bill,
Landfill Bill, Accounts Receivable Bill, Envelopes, and Web Service for one additional year.
Passed and approved this 16th day of August 20 16
OR
' 117ov'ed b!D--
p
ATTEST: —)
IT -CLERK City Attorney's Office
Resolution No. 16 -
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT: ABSTAIN:
Thomas the
Botchway
Cole
x Dickens
x Mims
R Taylor
x Thomas
x Throgmorton
CITY OF IOWA CITY
MEMORANDU
Date:
August 10, 2016
To:
Dennis Bockenstedt, Finance Director
From:
Melissa Miller, Revenue & Risk Manager
Re:
Utility Billing/Printing/Mailing Contract
2d(10)
Introduction:
The City's current contract with SourceHOV for the Design, Production, and Mailing of the City's
Utility Bill and Envelopes will be completed in September 2016. The Finance Department is
requesting to extend this contract for one additional year due to the timing of the contract's
completion and the recent upgrade to City's ERP system.
History/Background:
The City of Iowa City issued an RFP for utility billing, printing, and mailing services. A contract
was established with SourceHOV (formerly United Information Services) based on qualifications,
experience, and minimal price variance. That contract included an option to renew on an annual
basis. Renewals have been processed since the early phases of the implementation of the new
ERP system.
The utility billing system was implemented in March 2015. The City participated in an early
release of a major software upgrade to the ERP system in June 2016 and continues to work with
the software vendor to address outstanding programming issues. The contractual services
provided by SourceHov are greatly integrated into the City's utility billing services. SourceHOV
prints the City's utility bills. SourceHOV then places the City's bills into envelopes and mails them.
Electronic files generated from the utility billing software are transferred between the City and
SourceHOV in order to complete the above tasks.
Discussion of Solutions:
The City has two options: 1 ) extend the contract with SourceHOV at the same pricing levels
as last year or issue an RFP for printing and billing services, which may result in awarding the
contract to SourceHOV or 2) choose another firm.
With the timing of the system upgrade and the timing of the termination of the SourceHOV contract,
the staff's ability to change print vendors would be very difficult. This increased level of difficulty
for the Utility Billing staff would decrease the likelihood of success and increase the
implementation time required for a new print vendor.
Due to the potential result through a bidding process, I am proposing to extend the City's contract
with SourceHOV for an additional year. These services would then be bid as per our usual
process in the spring of 2017.
Financial Impact:
Below is the cost for billing and printing services for FY14- FY16 and the proposed pricing for
renewal for one year.
Billing/Printing/Mailing Services
FY14 $140,000 (includes $70,000 for postage reimbursement)
FY15 $170,000 (includes $100,000 for postage reimbursement)
August 10, 2016
Page 2
FY16 $170,000 (includes $100,000 for postage reimbursement)
FY17 $170,000 (includes $100,000 for postage reimbursement)
Recommendation:
With the ERP system upgrade and the additional staff time required to change service
providers, we are proposing to extend the billing/printing services contract with SourceHOV for an
additional year to September 2017. An RFP for billing, printing, and mailing services will be issued
in 2017 to gather pricing for the new contract term that would begin in September 2017.
Cc: Mary Niichel-Hegwood, Purchasing Agent
Christine Weinard, Buyer I
,fid ( I I )
Prepared by: Brenda Nations, 410 E. Washington St., Iowa City, IA 52240 (319) 887-6161
RESOLUTION NO. 16 -
RESOLUTION AUTHORIZING MAYOR TO SIGN MAYORS MONARCH PLEDGE
WHEREAS, The monarch butterfly is one of the most iconic and most studied butterflies in North
America; and
WHEREAS, The monarch is also extremely beneficial, pollinating many cultivated flowers and
crops, and serves as an indicator species for the ecological health of large geographic areas;
and
WHEREAS, In recent years, however, migrating monarch populations in Iowa and across the
country have dwindled, continuing what scientists call an "increasingly alarming decline"; and
WHEREAS, A major cause of decline in the migrating monarch butterfly population is the
widespread loss of the milkweed plant, which is the only plant monarch butterflies lay their eggs
on, and the monarch's primary larval food source; and
WHEREAS, Iowa's native milkweeds, including butterfly, swamp, common and whorled milkweed
can be planted in gardens, prairies and wetlands; and
WHEREAS, A greater effort is needed on the part of public and private organizations and
individuals to build and protect monarch butterfly habitats, including native milkweed, so that
future generations may enjoy the annual monarch butterfly migration;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT THE MAYOR IS
AUTHORIZED TO SIGN THE MAYORS MONARCH PLEDGE ON BEHALF OF THE CITY OF
IOWA CITY.
Passed and approved this 16th day of August 2016.
ATTEST:
CITY -CLERK
L,
M4&OR
Approved by
4;1�� &-((-(C
City Attorney's Office
Resolution No.
Page 2
16-249
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
FAN=
NAYS: ABSENT: ABSTAIN:
Thomas the
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
08-16-16
CITY OF IOWA CITY 2d(11)
MEMORANDUM
Date: August 10, 2016
To: Geoff Fruin, City Manager
From: Brenda Nations, Sustainability Coordinator
Re: Mayors Monarch Pledge
Introduction: Many municipalities across the nation are taking action to help save the declining
monarch butterfly population. In recent years, monarch numbers have decreased at an alarming
rate. The wintering population in Mexico has decreased more than 90%, which is thought to be
due to habitat loss, pesticide use and climate change. Because cities can play an active role in
restoration efforts, many Mayors have signed the National Wildlife Federation's Mayors
Monarch Pledge to show their support and commitment. A copy of the Pledge is attached.
Discussion: After discovering that employees across several departments have been taking
action towards monarch conservation, staff has held several meetings to communicate and
collaborate in our combined monarch conservation efforts. A webpage was created to begin to
add information for education purposes and to demonstrate areas that have monarch habitat,
which also has a "story map" that includes information about monarch as well as monarch
habitat in Iowa City. The webpage can be found on the City website under the name
ICMonarchs. A monarch festival is planned for Sept. 11th at the East Side Recycling Center, to
show residents how to identify caterpillars, raise monarchs and grow milkweed. Milkweed and
other native plants for pollinators have been planted this year in the Napoleon parking lot
medians, the Fire Station 4 biocell, and the median on Washington St. near City Hall. The City
has also registered Monarch Way Stations.
Recommendation: To sign the Mayor's Monarch Pledge, a form must be filled out on line with
the City's information, the Mayors email address and a staff contact. The city must check the
actions that they plan to take in the upcoming year in the areas of Communications &
Convening, Program and Demonstration Gardens, and Systems Change. Staff feels confident
that these actions align with current plans that we are already undertaking to continue our
efforts. It is recommended that the Mayor sign the Pledge to show the City's support in taking
action to save the monarch population.
Cc: Doug Boothroy, Neighborhood and Development Services Director
Juli Seydell-Johnson, Parks and Recreation Director
Zac Hall, Parks and Forestry Superintendent
WW4�1I NATIONAL
1 !/1)F I)ERAT ION
Mayors' Monarch Pledge
The monarch butterfly is an iconic North American species whose
multigenerational migration and metamorphosis from caterpillar to butterfly has
captured the imagination of millions of Americans.
We, the undersigned mayors and local government chief executives, are deeply
concerned about the decline of the monarch butterfly population. Twenty years
ago, more than one billion Eastern monarch butterflies migrated to Mexico. In the
winter of 2014, only 60 million made the trip. The North American monarch
population has declined by more than 90 percent in the past two decades.
Monarch scientists attribute the decline to degradation and loss of summer
breeding habitat in the U.S., and loss of winter habitat in Mexico. Western
populations of monarch butterflies that overwinter in California are also in
decline.
Cities, towns and counties have a critical role to play to help save the monarch
butterfly. Municipalities in particular can provide habitat at public parks, median
strips, community gardens and municipal buildings that serve as community hubs
such as recreation centers and libraries. Schools, homes and businesses can all
provide essential habitat for monarchs too. Simple changes in landscaping
ordinances or school policies can make a big difference for the monarch.
Educating citizens about how and where to grow milkweed is also a key piece of
the puzzle. Creating habitat and educating citizens will benefit other pollinators
that need healthy habitat as well.
When mayors speak up and take a stand, citizens notice. Therefore, we hereby
commit to help restore habitat for the monarch and encourage our citizens to do
the same, so that these magnificent butterflies will once again flourish across the
continent.
Sign the pledge at www.nwf.org/mayorsmonarchpledge
NATIONAL
FEDERATION
Mayors' Monarch Pledge Action Items
Mayors and local government chief executives who have taken the Mayors' Monarch Pledge must
commit to implement at least three of the 25 following action items within a year of taking the pledge.
At least one action must be taken from the "Program & Demonstration Gardens" section. Mayors and
local government chief executives taking more than eight actions will receive special recognition as part
of the National Wildlife Federation's Mayors' Monarch Leadership Circle. NWF will follow up with all
mayoral points of contact with a quarterly survey (1/1, 4/1, 7/1, 10/1) to monitor progress. Please visit
www.nwf.org/mavorsmonarchpledge to take the pledge and access resources.
Communications & Convening:
1) Issue a Proclamation to raise awareness about the decline of the monarch butterfly and the
species' need for habitat.
2) Launch a public communication effort to encourage citizens to plant monarch gardens at their
homes or in their neighborhoods.
3) Communicate with community garden groups and urge them to plant native milkweeds and
nectar -producing plants.
4) Convene city park and public works department staff and identify opportunities for revised
mowing programs and milkweed / native nectar plant planting programs.
5) Convene a meeting with gardening leaders in the community to discuss partnerships to support
monarch butterfly conservation.
Program & Demonstration Gardens:
6) Host or support a native plant sale or milkweed seed giveaway event.
7) Facilitate or support a milkweed seed collection and propagation effort.
8) Plant a monarch -friendly demonstration garden at City Hall or another prominent location.
9) Convert abandoned lots to monarch habitat.
10) Plant milkweed and native nectar plants in medians and public rights-of-way.
11) Launch a program to plant native milkweeds and nectar plants in school gardens by engaging
students, teachers and the community.
12) Earn recognition for being a wildlife -friendly city by expanding your action plan to include other
wildlife and habitat conservation efforts through a program like the NWF Community Wildlife
Habitat program
13) Create a monarch neighborhood challenge to engage neighborhoods and homeowners'
associations within the city to create habitat for the monarch butterfly.
14) Initiate or support citizen -science efforts that help monitor monarch migration and health.
15) Add milkweed and nectar producing plants in community gardens.
16) Expand invasive species removal programs to make it possible to re-establish native milkweed
and nectar plants to the landscape.
17) Host or support a city monarch butterfly festival.
Systems Change:
18) Remove milkweed from the list of noxious plants in city weed / landscaping ordinances (if
applicable).
19) Change weed or mowing ordinances to allow for native prairie and plant habitats.
20) Increase the percentage of native plants, shrubs and trees that must be used in city landscaping
ordinances and encourage use of milkweed where appropriate.
21) Direct city property managers to consider the use of native milkweed and nectar plants at city
properties where appropriate.
22) Integrate monarch butterfly conservation into the city's Park Master Plan, Sustainability Plan,
Climate Resiliency Plan or other city plans.
23) Change landscape ordinances to support integrated pest management and reduced use of
pesticides and insecticides.
24) Adopt pesticides practices that are not harmful to pollinators.
25) California Specific: Pass a resolution to protect over -wintering monarch butterfly habitat on
public and private lands.
Prepared by: Dave Panos, Engineering Division, 410 E. Washington St., Iowa City, IA 52240, (319) 356-5145
RESOLUTION NO. 16-250
RESOLUTION SETTING A PUBLIC HEARING ON SEPTEMBER 6, 2016 ON
PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST
FOR THE CONSTRUCTION OF SYCAMORE STREET AND LOWER
MUSCATINE ROAD LANDSCAPE IMPROVEMENTS PROJECT 2016,
DIRECTING CITY CLERK TO PUBLISH NOTICE OF SAID HEARING, AND
DIRECTING THE CITY ENGINEER TO PLACE SAID PLANS ON FILE FOR
PUBLIC INSPECTION.
WHEREAS, funds for this project are available in the Lower Muscatine Road
Landscaping account #P3978, S.Sycamore Landscaping — Langenberg to L account #
P3979, and S.Sycamore Landscaping — Langenberg to Hwy 6 account # P3980.
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA:
1. That a public hearing on the plans, specifications, form of contract, and estimate of cost
for the construction of the above-mentioned project is to be held on the 6th day of
September at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, Iowa City, Iowa, or if said
meeting is cancelled, at the next meeting of the City Council thereafter as posted by the
City Clerk.
2. That the City Clerk is hereby authorized and directed to publish notice of the public hearing
for the above-named project in a newspaper published at least once weekly and having a
general circulation in the City, not less than four (4) nor more than twenty (20) days before
said hearing.
3. That the copy of the plans, specifications, form of contract, and estimate of cost for the
construction of the above-named project is hereby ordered placed on file by the City
Engineer in the office of the City Clerk for public inspection.
Passed and approved this 16th day of August 2016.
MOOR
Approved by
ATTEST: ���«� 7� . >�,/ _4G62 "
CITY ERK City Attorney's Office/��/��
Resolution No. 16 -
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
X
NAYS: ABSENT: ABSTAIN:
Thomas
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
r > 2e(1)
CITY OF IOWA CITY
MEMORANDUM
DATE: August 9, 2016
TO: Geoff Fruin, City Manager
FROM: Jason Havel, City Engineer7lii
RE: Sycamore Street and Lower Muscatine Road Landscape
Improvements Project 2016
August 16, September 6, October 4
Introduction:
This agenda item begins the bidding process for the Sycamore Street and Lower Muscatine Road
Landscape Improvements Project 2016.
History / Background:
The City is interested in adding corridor beautification with street trees and other amenities to these
recently completed project areas:
• Sycamore Street Improvements 2010 and 2015 — Hwy 6 to Lehman Avenue
• Highway 6/ Sycamore Street Intersection Improvements
• Lower Muscatine Road Reconstruction Project - Kirkwood Avenue to First Avenue
The Lower Muscatine Road project included an agreement for installation of landscaping along the
frontage and within parking lot areas of Mid -American Energy and Kirkwood College Campus.
Landscaping is also needed to fulfill landscaping obligations with escrowed money for Brookwood
Pointe Parts 1, 2, and 3 subdivisions. The Sycamore Street Improvements 2015 included two
roundabouts, and landscaping is needed now for the new roundabout areas.
In March of 2016, the City Public Works Department hired Shive-Hattery, Inc. of Cedar Rapids as the
landscape architect consultant to complete the final landscaping design for the project. The
landscaping plan has been completed and includes design for installation of various sizes and
species of street trees in the parkway within the areas identified above.
This project was previously bid twice with separate letting dates. The first bid letting resulted in
receiving bid pricing that exceeded 125% of the Opinion of Probable Costs Bids for the first letting
were rejected and the project was rebid. The second bid letting also resulted in the City rejecting
bids after receiving only one that exceeded 125% of the Opinion of Probable Costs.
Discussion of Solution:
Proposed landscaping for the roundabouts includes a variety of low maintenance native grasses,
flowers, and ornamental trees plantings. To increase the height of the center of the roundabouts,
each will include a low profile decorative concrete block wall forming a center ring. During project
design, the consultant coordinated with the Parks and Recreation Department to choose acceptable
varieties of plantings in an effort to install lower maintenance varieties.
Since the second bidding effort, the project plans have been revised to include two milestone dates.
The first milestone date requires wall installation and plantings installed in the roundabout prior to
winter of 2016. The second milestone date requires completion of street trees and other plantings in
the spring of 2017. After meeting with project bidders to discuss concerns with previous bid sets, it is
our understanding that this revised schedule will allow more suppliers and contractors more time to
plan operations, including securing plant material to provide for more favorable bids.
Financial Impact:
The estimated cost for the planned improvements is $261,368.84. This project is funded by
Road Use Tax proceeds and GO Bonds.
Recommendation:
Staff recommends proceeding with setting public hearing for the plans, specifications, form of
contract, and estimate of cost for construction of the Sycamore Street and Lower Muscatine Road
Landscape Improvements Project 2016.
The proposed project schedule will be as follows:
• August 16, 2016 - Set Public Hearing on Contract Documents
• September 6, 2016 - Hold Public Hearing on Contract Documents
• October 4, 2016 - Award Project
cc: Ron Knoche, Public Works Director
Dave Panos, Senior Civil Engineer
Prepared by: Daniel Scott, Public Works, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5144
RESOLUTION NO. 16-251
RESOLUTION AUTHORIZING MAILING AND PUBLICATION OF NOTICE OF
THE CITY'S INTENTION TO PROCEED WITH FUNDING FINAL DESIGN AND
PROPERTY ACQUISITION FOR THE PROPOSED HEBL AVENUE
IMPROVEMENTS PROJECT AND SETTING PUBLIC HEARING THEREON FOR
SEPTEMBER 20, 2016.
WHEREAS, the City Council proposes to proceed with the final design of the Hebl Avenue
Improvements Project, which will include reconstruction of Hebl Avenue from IWV Road to the
landfill entrance located at 3900 Hebl Ave SW, Iowa City, Iowa ("Project"); and
WHEREAS, the preliminary design of the Project indicates that the proposed Project may require
that the City acquire certain property rights from owners of agricultural land; and
WHEREAS, pursuant to Iowa Code Section 6B.2A, certain notice must be published and mailed
to affected property owners, and a public hearing must be held before the City adopts a resolution
or other declaration of intention to fund the final site-specific design for the Project, to make the
final selection of the route of the Project, or to acquire to condemn any property for the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
1. The map showing the proposed location of the Hebl Avenue Improvements Project is on file in
the office of the City Clerk and made available for public viewing.
2. A public hearing on the City's intention to proceed with funding the final design Hebl Avenue
Improvements Project and to acquire property rights therefor is to be held on the 20th day of
September, 2016, at 7:00 p.m. in the Emma J. Harvat Hall, City Hall, 410 E. Washington
Street, Iowa City, Iowa, or if said meeting is cancelled, at the next meeting of the City Council
thereafter as posted by the City Clerk.
3. The Department of Public Works is hereby authorized and directed to cause written notice of
the public hearing and intention to proceed with said project and acquisition of property for
said project to be mailed to each owner and any contract purchaser of record of agricultural
land that may be the subject of condemnation. Said Notice of Public Hearing be mailed by
ordinary mail, not less than thirty days before the date of the public hearing to the owner and
any contract purchaser of record of each property at the owner's and contract purchaser's last
known address as shown in the records of the county auditor not less than seven days no
more than fourteen days prior to the date of the mailing.
4. The City Clerk is hereby authorized and directed to cause said Notice of Intent to be published
in a newspaper published at least once weekly and having a general circulation in the City, not
less than four (4) nor more than twenty (20) days before said hearing.
Resolution No. 16-251
Page 2
Passed and approved this 16th day of August 20 16
4�� 1
M OR
ATTEST: )(;;;i�
CI LERK
It was moved by Botchway and seconded by
adopted, and upon roll call there were:
AYES: NAYS:
F4
peeng/masteympmvms.do
1/11
Appr ved by
�Yit �t
City Attorney's Office
Thomas
ABSENT:
the Resolution be
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
Date: August 10, 2016
CITY OF IOWA CITY
MEMORANDUM
To: Geoff Fruin, City Manager
From: Jason Havel, City Engineer Z &
Re: Hebl Avenue Improvements Project Property Acquisition
Introduction
The Project includes reconstruction of Heb] Avenue from IWV road to the Landfill and Recycling Center
entrance.
Histo Background
Hebl Avenue currently serves as the entrance road to the Landfill and Recycling Center and the majority of traffic is
heavy refuse trucks. The current roadway is a 22' wide rural chip and sealcoat roadway with roadway ditches on
either side for managing storm water runoff. In addition, the existing creek culvert under Hebl Avenue is in need
of repair. There are two possible neighboring property owners that may be affected by property acquisition. It is
anticipated acquisition will be limited to temporary construction easements.
08-16-16
2e(4)
Discussion of Solutions
The reconstruction of Hebl Avenue will include improving the roadway to full depth PCC with rock base and partial
curb to improve the drainage system. A new roadway culvert will be installed for the creek with new guard rails to
improve safety. This public hearing and mailing will notify the two neighboring property owners of possible
property acquisition needs.
Financial Impact
Design engineering cost is set at $76,000 and property acquisition costs are estimated at $20,000. The
Engineer's estimate of construction costs is $850,000. The project will be funded by landfill revenues and
funding for this project is available in the budget for fund number L3322.
Recommendation
Staff recommends proceeding with the following schedule for property acquisition for this project.
August 16 - Set Public Hearing Authorizing Property Acquisition
September 20 - Hold Public Hearing Authorizing Property Acquisition
cc: Ron Knoche, Public Works Director
Daniel Scott, Senior Civil Engineer
Prepared by: Sara Greenwood Hektoen, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA
52240;319-356-5230
RESOLUTION NO. 16-252
RESOLUTION AUTHORIZING THE CONVEYANCE OF A PORTION OF
COTTONWOOD AVENUE EAST OF YEWELL STREET TO LAURA
CROSSETT
WHEREAS, Applicant Laura Crossett, as owner of 1420 Yewell Street, has
requested that the City vacate and convey via quit claim deed that portion of
Cottonwood Avenue east of Yewell Street to facilitate an addition to her house;
and
WHEREAS, the City has declared its intention to approve this proposed
conveyance, set a public hearing thereon and published notice as required by law;
and
WHEREAS, after approving the vacation of the public right-of-way over said
portion of Cottonwood, this Council did hold a public hearing on the proposed
conveyance in accordance with the published notice; and
WHEREAS, there currently exists an electric utility line across the southerly portion
of this property, owned by MidAmerican Energy, who has expressed the intention
to continue using the property for that purpose; and
WHEREAS, it is in the public interest to convey to Laura Crossett this property for
fair market value thereof, subject to the retention of an electric utility easement
over the southerly 40' thereof.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, IOWA, THAT:
1. The City Council does hereby authorize the conveyance of THAT
PORTION OF COTTONWOOD AVENUE LOCATED EAST OF YEWELL
STREET BETWEEN LOTS 77 AND 78, KIRKWOOD HEIGHTS ADDITION TO
IOWA CITY, IOWA, AS SHOWN IN PLAT BOOK 3, PAGE 137 IN THE
RECORDS OF THE JOHNSON COUNTY, IOWA RECORDER'S OFFICE to
Laura E. Crossett, or her successor in interest, subject to the retention of an
electric utility easement, in consideration for payment of $15,000, fair market value
for said rights.
2. The Mayor is authorized, and the City Clerk to attest, any and all documents
necessary to effectuate such conveyance in a form approved by the City
Attorney.
Passed and approved this 16th day of August 2016.
G`
MA OR
Approved by
ATTEST:e �4
CITYCLERK ity Attorney's Office -,A& /40
Resolution No.
Page 3
It was moved by Botchwav and seconded by Dickens the
Resolution be adopted, and upon roll call there were:
AYES: NAYS: ABSENT: ABSTAIN:
% Botchway
% Cole
x Dickens
x Mims
% Taylor
% Thomas
% Throgmorton
Prepared by: Robert Miklo, Senior Planner, 410 E. Washington St., Iowa City, IA 52240; 3195565240
RESOLUTION NO. 16-253
RESOLUTION AUTHORIZING THE HISTORIC PRESERVATION COMMISSION TO FILE AN
APPLICATION FOR A CERTIFIED LOCAL GOVERNMENT (CLG) GRANT TO OBTAIN FUNDS
FOR THE PURPOSE OF UPDATING THE 2001 SURVEY AND EVALUATION OF THE CENTRAL
BUSINESS DISTRICT.
WHEREAS, the State Historical Society of Iowa administers the Certified Local Government (CLG)
Grant program to assist local communities with historic preservation projects; and
WHEREAS, the City desires to update the 2001 Survey and Evaluation of the Central Business
District to identify and evaluate potentially historic structures at an estimated cost of $20,000; and
WHEREAS, the City of Iowa City Historic Preservation Commission has prepared an application for a
$12,000 cost reimbursement CLG Grant for updating the 2001 Survey and Evaluation of the Central
Business District; and
WHEREAS, the grant program requires the City fund 40% of the project costs, which is estimated to
be an $8,000 local match for this project; and
WHEREAS, said grant will aid the City in its efforts to identify, protect and properly develop its
historic resources, in accordance with the Comprehensive Plan including the Iowa City Historic
Preservation Plan and the Downtown and Riverfront Crossings Master Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The Historic Preservation Commission is hereby authorized to file an application for a
$12,000 CLG Grant for the purpose of updating the 2001 Survey and Evaluation of the
Central Business District.
2. The City hereby commits to funding 40% of total project cost local match requirement,
should the application be approved.
3. The Mayor is hereby authorized and directed to sign a letter in support of the application
stating that the City approves of the application and commits to meeting the local match
obligation. The Mayor is further authorized to execute, and the City Clerk to attest, a grant
agreement for these purposes, should the application be approved.
Passed and approved this 16th day of August '2016.
L
MOOR
Approved by
ATTEST: -P. iC2•t,rJ4Ci
cL r/
CI LERK ttorney's Office P (fi7�
Resolution No.
Page 2
16-253
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES: NAYS:
ABSENT: ABSTAIN:
Thomas
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
CITY OF IOWA CITY 4
MEMORANDUM
Date: August 10, 2016
To: Mayor T ogmorton and City Council
From: Ginalie Swaim, Chair, Historic Preservation Commission
%�B'ob Miklo, Senior Planner
Re: Certified Local Government (CLG) Grant application
At its June 9, 2016, meeting, the Historic Preservation Commission voted 9-0 to apply for a
Certified Local Government (CLG) grant from the State Historic Preservation Office (SHPO) to
update the Survey and Evaluation of the Central Business District. The Commission requests
council approval to apply for the grant and budget $8,000 for the required grant match.
The Certified Local Government Program is a partnership between local, state, and federal
governments for historic preservation work. Because Iowa City has been designated as a
Certified Local Government, the Historic Preservation Commission is eligible for federal and
state grants. These grants have been critically important tools for us over the years. CLG grants
funded our Preservation Plan as well as several surveys of neighborhoods and National
Register nominations
A CLG grant funded a survey of the Iowa City downtown in 2000-2001. The resulting report,
"Survey and Evaluation of the Central Business District" by preservation consultant Marlys
Svendsen, comprised an overview narrative as well as site forms and evaluations for 135
buildings. Because the survey is now nearly 16 years old, it needs to be reviewed and updated.
Since the completion of the 2001 survey, some downtown buildings have been lost to fire, some
have been restored, and new buildings have been constructed. These changes may affect the
eligibility of properties for the National Register of Historic Places.
The Historic Preservation Commission proposes to apply for a CLG Grant for the purpose of
hiring a historic preservation consultant to update the survey. The goal of the project is to
identify properties worthy of designation as landmarks or as part of a historic district. The
Commission is applying for a $12,000 grant requiring a local match of $8,000.
Feel free to contact either of us if you have any questions.
Prepared by: Eleanor M. Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 16-254
RESOLUTION AUTHORIZING TRANSITION PAYMENT TO TENANTS OF
ROSE OAKS APARTMENTS FROM CITY'S AFFORDABLE HOUSING FUND
WHEREAS, on February 26, 2016 the Rose Oaks Apartment complex at 2401 Highway 6 East,
Iowa City (hereinafter "Rose Oaks Apartment complex" or "property") was purchased by College
Fund Properties II, LLC and Tod Quiring (hereinafter "new Owners"); and
WHEREAS, at the time of said acquisition there were 21 buildings and 400 dwelling units on the
property; and
WHEREAS, for some time prior to said acquisition there were ongoing concerns at the property
including insect infestation, continual maintenance issues with the central boiler and breakdowns
in heating and water damage such that two buildings were not approved for rental permits and
were vacant; and
WHEREAS, effective December 2012, the Iowa City Housing Authority stopped allowing housing
choice vouchers to be used at the Rose Oaks Apartment Complex due to living conditions and
management practices by the prior owner; and
WHEREAS, at the time of said acquisition, 207 units on the site were occupied with current rents
between $500 and $710 per month, some of the least expensive rental units in Iowa City; and
WHEREAS, the new owners planned a full scale renovation of the apartment complex, including
demolition of some buildings, remodeling of others and construction of new buildings, and filed an
application with the City for approval of a site plan; and
WHEREAS, the new owners' plan to remedy the conditions that have existed at the property is
consistent with the purpose of the City's Housing Code, as stated at Section 17-5-2 of the City
Code, to "ensure that housing facilities and conditions are of the quality necessary to protect and
promote the health, safety and welfare of not only those persons utilizing the housing, but the
general public as well."; and
WHEREAS, in March of 2016 Rose Oaks management notified the tenants that as leases expired
they would not be renewed and would therefore terminate on the last day of the lease; and
WHEREAS, at the time of said notification there were a variety of lease end dates ranging from
the end of March of 2016 to March 2017; and
WHEREAS, in notifying the tenants that leases would not be renewed, the Rose Oaks
management acknowledged that the notice was "short" and "finding housing may be difficult" but
stated that it was their desire to have "everyone moved from the property before summer'; and
WHEREAS, to that end the management offered those tenants with later lease expiration dates
an immediate return of the entire security deposit and an additional $500 payment to voluntarily
void their lease agreement and vacate the premises; and
WHEREAS, the City provided $15,000 in HOME funds and the Rose Oaks management
contributed $30,000 of additional funds to assist the tenants with moving expenses, security
deposits and/or rent payments; and
Resolution No. 16-254
Page 2
WHEREAS, Shelter House took the lead in meeting on-site with residents to help them locate
housing, navigate the various assistance programs and manage the disbursement of the City and
Rose Oaks funds to vendors/landlords; and.
WHEREAS, in addition to the money contributed by the City and the Rose Oaks management,
significant community resources have been necessary to assist tenants with the transition to new
housing, including the efforts of Shelter House and other service agencies, the Center for Worker
Justice and community members who helped tenants move from the property on August 1,
2016; and,
WHEREAS, neither the City nor the new owners/management are legally obligated to
compensate the tenants for moving expenses and/or replacement housing; and,
WHEREAS, in light of the above circumstances, including the size and nature of the apartment
complex and the number of tenants displaced, the difficulty of finding replacement housing
affordable to Rose Oaks tenants on short notice during the summer months, the condition of the
housing necessitating the full-scale renovation of the apartments consistent with the purpose of
the City's Housing Code, the cooperation of the new owners including the communication with the
City, contribution of funds and extension of the moving date to August 1 for leases expiring before
then, the impact on the affordable housing stock in Iowa City and the likelihood that after the
renovations the rents will exceed what is affordable to some of the former tenants, and the lack of
fault on the part of the tenants, the City Council believes that it is in the public interest to provide,
from the City's affordable housing fund, an additional $250.00 transition payment per household to
Rose Oaks tenants who had a valid lease as of February 27, 2016 to assist tenants who have
been displaced or otherwise burdened by the renovation of the Rose Oaks Apartment complex.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY
THAT:
1. Each of the 207 households with a valid lease at the Rose Oaks Apartment Complex as of
February 27, 2016, as shown by the list provided to the City by Rose Oaks management, shall be
eligible, upon application, to receive a transition payment of $250.00 from the City's affordable
housing fund.
2. Application for such funds must be made no later than October 31, 2016.
3. The City Manager, or designee is authorized to administer the application process and
distribution of said funds to eligible tenants.
Passed and approved this 16th day of August 20 16
ATTEST: 3!/",M2 e . 7t",-,) � C —�
ITY CLERK MAYOR
r ve
/, �� Y:31
City Attorney's Office
Resolution No.
Page 3
16-254
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
x
x
NAYS: ABSENT: ABSTAIN:
Thomas
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
Im
Marian Karr
From:
Garry Klein <garryfromiowa@gmail.com>
Sent:
Monday, August 08, 2016 1:53 PM
To:
Council
Subject:
Support for Rose Oaks Tenants and Others
Dear Mayor Throgmorton and City Council members,
I applaud the concerted efforts on behalf of the displaced residents of Rose Oaks. Too often, low-income
residents find themselves pushed out of housing for many reasons. Council member Cole is to be applauded fro
his leadership on the issue and the rest of you for your support. In addition, in an article in the Press -Citizen,
Councilor Susan Mims is quoted as saying "There's lots of people that don't have their leases renewed, I would
say if you go around this community and start asking a lot of people who are in social services and work with
these folks, you're going to find a lot of people who are not leaseholders at Rose Oaks who end up in the exact
same situation. She is further quoted as saying "(Social service agencies) are inevitably getting people coming
in there, single parents with families, whatever the situation may be, whose leases have not been renewed with
virtually no notice. They are just as deserving as people living at Rose Oaks and the fact that their leaseholder
was not Rose Oaks, what you are saying by this action is that they are not as deserving because they are not part
of this, quote, 200 people."
Her point is well taken. As an actionable step, perhaps the city can use some funds from the Community Block
Grant funds or tax dollars that come in after TIFs expire to set up an emergency fund for other such residents.
And perhaps it could be matched by the Iowa City or Johnson County Foundations and from donations of
inclined others?
Iowa City is having its share of growing pains, but assuring that residents may remain residents should be a
priority of our city. It calls for innovative solutions and/or reuse of funds that now may go elsewhere. I'd look
forward to hearing how this council approaches this problem in a way that benefits the population that truly
needs the support.
Best regards,
Garry Klein
628 2nd Ave.
Late Hando
(Date)
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Marian Karr
From: Harry03 <Harry03@aol.com>
Sent: Monday, August 15, 2016 8:48 PM
To: robin-clark-bennett@uiowa.edu; Rockne Cole; Charlie Eastham; Jim Throgmorton
Cc: Marian Karr; Tracey Achenbach; Geoff Fruin; Simon Andrew
Subject: Rose Oaks
Robin: As much as I support the Iowa City Council assisting Rose Oaks residents with $250.00 towards moving
expenses experience by residents of Rose Oaks when they received an unexpected notice to vacate their
apartment. I am concerned if former residents of Rose Oaks moved out of the city or moved elsewhere in Iowa,
or out of state are they eligible for the $250.000 city program and should they be. I support the stipend given
only to residents that continue to reside in Iowa City.
Harry Olmstead
1951 Hannah Jo CT
Iowa City, IA 52240
319-338-2930
Marion: please distribute to City Council.
Sent from my Galaxy Tab® A
Late Handouts Distributed
$ \�6 \\�
(Date)
M
ITEMS TO INCLUDE ON AGENDA FOR AUGUST 16, 2016
CITY OF IOWA CITY, IOWA
$12,805,000 Taxable Urban Renewal Revenue Capital Loan Notes, Series 2016E.
• Resolution approving and authorizing Loan Agreements and authorizing and providing
for the issuance of Taxable Urban Renewal Revenue Capital Loan Notes and providing
for a method of payment of the Notes.
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
August 16, 2016
The City Council of the City of Iowa City, State of Iowa, met in regular
session, in the Emma J. Harvat Hall, City Hall, 410 E. Washington, Iowa City, Iowa, at
7 o'clock P .M., on the above date. There were present Mayor Pro tem
Botchway , in the chair, and the following named Council Members:
Botchway, Dickens, Mims,Taylor, Thomas
ABSTAIN: Cole, Throgmorton
Absent:
Mayor Throgmorton and Council Member Cole previously announced they would be
abstaining from consideration of this resolution. At the beginning of
consideration of this resolution Mayor Throgmorton and Council Member Cole
left the meeting and returned after consideration of this resolution.
-1-
Council Member Mims introduced the following Resolution entitled
"A RESOLUTION APPROVING AND AUTHORIZING LOAN AGREEMENTS AND
AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SECURING THE
PAYMENT OF $12,805,000 TAXABLE URBAN RENEWAL REVENUE CAPITAL LOAN
NOTES, SERIES 2016E, OF THE CITY OF IOWA CITY, STATE OF IOWA, UNDER THE
PROVISIONS OF THE CITY CODE OF IOWA, AND PROVIDING FOR A METHOD OF
PAYMENT OF THE NOTES ", and moved its adoption. Council Member
Dickens seconded the motion to adopt. The roll was called and the vote was:
AYES: Botchway, Dickens, Mims, Taylor, Thomas
ABSTAIN: Cole, Throgmorton (left meeting for consideration)
NAYS:
Whereupon the Mayor declared the following Resolution duly adopted:
Resolution No. 16-255
A RESOLUTION APPROVING AND AUTHORIZING LOAN
AGREEMENTS AND AUTHORIZING AND PROVIDING FOR
THE ISSUANCE AND SECURING THE PAYMENT OF
$12,805,000 TAXABLE URBAN RENEWAL REVENUE
CAPITAL LOAN NOTES, SERIES 2016E, OF THE CITY OF
IOWA CITY, STATE OF IOWA, UNDER THE PROVISIONS OF
THE CITY CODE OF IOWA, AND PROVIDING FOR A
METHOD OF PAYMENT OF THE NOTES
WHEREAS, the City Council of the City of Iowa City, Iowa, sometimes hereinafter
referred to as "Issuer", did heretofore adopt an urban renewal plan by Resolution No. 2157,
passed and approved October 2, 1969 for the City -University Project I Urban Renewal Plan, as
amended. Said plan, as amended, authorizes the undertaking of urban renewal projects in
accordance therewith and Chapter 403 of the Code of Iowa, including the Project outlined
herein; and
WHEREAS, the City did, on December 11, 2001, adopt Ordinance No. 01-3391 under
which the taxes levied on the taxable property in the Urban Renewal Area shall be divided, and
a special fund created under the authority of Section 403.19(2) of the Code of Iowa, as amended,
(which special fund is hereinafter referred to as the "Urban Renewal Tax Revenue Fund" or the
"Revenue Fund") which fund is created in order to pay the principal of and interest on loans,
monies advanced to or indebtedness whether funded, refunded, assumed, or otherwise, including
bonds issued under the authority of Section 403.9 of the Code of Iowa, as amended, incurred by
the City to finance or refinance in whole or in part authorized urban renewal projects in the City-
-2-
University Project I Urban Renewal Plan Urban Renewal Area ( the "Urban Renewal Area"), and
pursuant to which Ordinances such Revenue Fund may be irrevocably pledged by the City for
the payment of principal and interest on such indebtedness; and
WHEREAS, the cost of carrying out the purposes and provisions of the Project, the
purposes set forth in Section 3 hereof is $12,805,000 and provision must now be made by the
City to provide for the payment of such costs payable solely and only from incremental taxes
under Iowa Code Section 403.19 produced by the City -University Project I Urban Renewal Plan;
and
WHEREAS, pursuant to the provisions of Iowa Code Chapter 403, bonds issued under
said Chapter are not subject to any other law relating to the authorization, issuance or sale, and
are declared to be issued for an essential public purpose; and
WHEREAS, the notice of intention of the City to take action for the issuance of bonds
pursuant to Iowa Code Section 403.9 was duly published on June 1, 2015 a hearing was held on
June 8, 2015, and the City Council took additional action for the sale and issuance of not to
exceed $14,200,000 Urban Renewal Tax Increment Revenue Bonds; and
WHEREAS, Iowa Code Section 403.17(3) defines "Bonds" as used in Chapter 403 to
include "notes" and "other obligations"; and
WHEREAS, Iowa Code Section 403.9(4) provides that bonds sold under Iowa Code
Section 403.9 may be sold at public or private sale; and
WHEREAS, the City has obtained proposals for the private sale of Taxable Urban
Renewal Revenue Capital Loan Notes, pursuant to Iowa Code Chapter 403.9 and has determined
necessary and advisable that the notes be issued in the amount of $12,805,000 in accordance
with the terms of this Resolution; and
WHEREAS, it is now necessary and advisable that provisions be made for the issuance
of Notes in the amount of $12,805,000 Taxable Urban Renewal Revenue Capital Loan Notes,
Series 2016E, pursuant to the provisions of Section 403.9 of the Code of Iowa, payable solely
from Net Revenues of the Urban Renewal Area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF IOWA CITY, IN THE COUNTY OF JOHNSON, STATE OF IOWA:
Section 1. Definitions. The following terms shall have the following meanings in this
Resolution unless the text expressly or by necessary implication requires otherwise:
• "Additional Obligations" shall mean any urban renewal revenue notes or bonds
issued on a panty with the Notes in accordance with the provisions of this Resolution.
-3-
• "Clerk" shall mean the City Clerk, or such other officer of the successor
Governing Body as shall be charged with substantially the same duties and
responsibilities.
• "Fiscal Year" shall mean the twelve-month period beginning on July 1 of each
year and ending on the last day of June of the following year, or any other consecutive
twelve-month period adopted by the Governing Body or by law as the official accounting
period of the Urban Renewal Area. Requirements of a Fiscal Year as expressed in this
Resolution shall exclude any payment of principal or interest falling due on the first day
of the Fiscal Year and include any payment of principal or interest falling due on the first
day of the succeeding Fiscal Year.
• "Governing Body" shall mean the City Council of the City, or its successor in
function with respect to the operation and control of the Urban Renewal Area.
• "Independent Auditor" shall mean an independent firm of Certified Public
Accountants or the Auditor of State.
"Issuer" and "City" shall mean the City of Iowa City, State of Iowa.
• "Loan Agreements" shall mean the Loan Agreements between the Issuer the
Original Purchasers, respectively, in substantially the form attached to and approved by
this Resolution.
• "Net Revenues" of the Urban Renewal Area or Urban Renewal Area shall mean
the Tax Increment Revenues available as are derived from or held in connection with the
Urban Renewal Area.
• "Notes" shall mean $12,805,000 Taxable Urban Renewal Revenue Capital Loan
Notes, Series 2016E, authorized to be issued by this Resolution, to be issued as two
separate Notes in the amount of $9,805,000 and $3,000,000 respectively.
"Ordinance" shall mean Ordinance No. 01-3991, as amended, of the City.
• "Original Purchasers" shall mean MidWestOne Bank of Iowa City, Iowa and
First National Bank, Ames, Iowa of Ames, Iowa.
• "Outstanding Obligations" shall mean the Taxable Urban Renewal Revenue
Bonds, Series 2012D, dated November 29, 2012, part of which obligation id still
outstanding and unpaid and remain a lien on the Net Revenues of the Urban Renewal
Area.
• "Parity Obligations" shall mean urban renewal revenue notes, bonds or other
obligations payable solely from the Net Revenues of the Urban Renewal Area on an equal
basis with the Notes herein authorized to be issued, and shall include the Outstanding
M
Obligations and Additional Obligations as authorized to be issued under the terms of this
Resolution.
• "Paying Agent" shall mean the City Controller of, or such successor as may be
approved by Issuer as provided herein and who shall carry out the duties prescribed
herein as Issuer's agent to provide for the payment of principal of and interest on the
Notes as the same shall become due.
"Permitted Investments" shall mean:
■ direct obligations of (including obligations issued or held in book entry
form on the books of) the Department of the Treasury of the United States of
America;
■ obligations of any of the following federal agencies which obligations
represent full faith and credit of the United States of America, including:
— Export - Import Bank
— Farm Credit System Financial Assistance Corporation
— USDA Rural Development
— General Services Administration
— U.S. Maritime Administration
— Small Business Administration
— Government National Mortgage Association (GNMA)
— U.S. Department of Housing & Urban Development (FHA's)
— Federal Housing Administration
■ reloan agreements whose underlying collateral consists of the investments
set out above if the Issuer takes delivery of the collateral either directly or
through an authorized custodian. Reloan agreements do not include reverse
reloan agreements;
■ senior debt obligations rated "AAA" by Standard & Poor's Corporation
(S&P) or "Aaa" by Moody's Investors Service Inc. (Moody's) issued by the
Federal National Mortgage Association or the Federal Home Loan Mortgage
Corporation;
■ U.S. dollar denominated deposit accounts, federal funds and banker's
acceptances with domestic commercial banks which have a rating on their short-
term certificates of deposit on the date of purchase of "A-1" or "A-1+" by S&P or
"P-1 " by Moody's and maturing no more than 360 days after the date of purchase
(ratings on holding companies are not considered as the rating of the bank);
■ commercial paper which is rated at the time of purchase in the single
highest classification, "A-1+" by S&P or "P-1" by Moody's and which matures
not more than 270 days after the date of purchase;
-5-
■ investments in a money market fund rated "AAAm" or "AAAm-G" or
better by S&P, or "AAA" or "AA" by Moody's Investors Services, Inc.;
■ pre -refunded municipal obligations, defined as any bonds or other
obligations of any state of the United States of America or of any agency,
instrumentality or local governmental unit of any such state which are not
callable at the option of the obligor prior to maturity or as to which irrevocable
instructions have been given by the obligor to call on the date specified in the
notice; and (a) which are rated, based on an irrevocable escrow account or fund
(the "escrow"), in the highest rating category of S&P or Moody's or any
successors thereto; or (b)(i) which are fully secured as to principal and interest
and redemption premium, if any, by an escrow consisting only of cash or direct
obligations of the Department of the Treasury of the United States of America,
which escrow may be applied only to the payment of such principal of and
interest and redemption premium, if any, on such bonds or other obligations on
the maturity date or dates thereof or the specified redemption date or dates
pursuant to such irrevocable instructions, as appropriate; and (ii) which escrow is
sufficient, as verified by a nationally recognized independent certified public
accountant, to pay principal of and interest and redemption premium, if any, on
the bonds or other obligations described in this paragraph on the maturity date or
dates specified in the irrevocable instructions referred to above, as appropriate;
■ tax exempt bonds as defined and permitted by section 148 of the Internal
Revenue Code and applicable regulations and only if rated within the two highest
classifications as established by at least one of the standard rating services
approved by the superintendent of banking by rule adopted pursuant to chapter
17A Code of Iowa;
■ an investment contract rated within the two highest classifications as
established by at least one of the standard rating services approved by the
superintendent of banking by rule adopted pursuant to chapter 17A Code of
Iowa; and
Iowa Public Agency Investment Trust.
• "Project Fund" shall mean the fund required to be established by this Resolution
for the deposit of the proceeds of the Notes.
• "Registrar" shall mean the City Controller of Iowa City, Iowa, or such successor
as may be approved by Issuer as provided herein and who shall carry out the duties
prescribed herein with respect to maintaining a register of the owners of the Notes.
Unless otherwise specified, the Registrar shall also act as Transfer Agent for the Notes.
"Resolution" shall mean this resolution authorizing the issuance of the Notes.
• "Revenue Fund" shall mean the special fund Under Iowa Code Section 403.19
into which all Tax Increment Revenues of the Urban Renewal Area shall be deposited.
• "Tax Increment Revenues" shall mean the revenues received into the special tax
fund created by the Ordinance and authorized by Section 403.19(2) of the Code of Iowa
derived from the Urban Renewal Area.
• "Treasurer" shall mean the Finance Director of the City of Iowa City, Iowa, or
such other officer as shall succeed to the same duties and responsibilities with respect to
the recording and payment of the Notes issued hereunder.
• "Yield Restricted" shall mean required to be invested at a yield that is not
materially higher than the yield on the Notes under section 148 (a) of the Internal
Revenue Code or regulations issued thereunder.
Section 2. Authority. The Loan Agreements and the Notes authorized by this Resolution
shall be issued pursuant to Section 403.9, of the City Code of Iowa, and in compliance with all
applicable provisions of the Constitution and laws of the State of Iowa. The Loan Agreements
shall be substantially in the form attached to this Resolution and is authorized to be executed and
issued on behalf of the Issuer by the Mayor Pro Tem and attested by the City Clerk. In any suit,
action or proceeding involving the validity or enforceability of the Notes or the security therefor,
the Notes shall be conclusively deemed to have been issued for such purpose and such project
shall be conclusively deemed to have been planned, located and carried out in accordance with
the provisions of Iowa Code Chapter 403.
Section 3. Authorization and Purpose. There are hereby authorized to be issued,
negotiable, two Revenue Notes of the City of Iowa City, in the County of Johnson, State of Iowa,
in the amounts of $9,805,000 and $3,000,000, for the purpose of paying costs of aiding in the
planning, undertaking, and carrying out of an urban renewal project for the redevelopment of real
property, including one or more grants to a redeveloper, The Chauncey, L.L.C., in connection
with the construction of Class A office space, workforce housing, a hotel, a bowling alley and
movie theatre at the northeast corner of College and Gilbert Streets.
Section 4. Source of Payment. Nothing in this Resolution shall be construed to impair
the rights vested in the Outstanding Obligations. The amounts herein required to be paid into the
various funds named in this Resolution shall be inclusive of payments required in respect to the
Outstanding Obligations. The provisions of the resolution or resolutions referred to in Section 1
of this Resolution and the provisions of this Resolution are to be construed wherever possible so
that the same will not be in conflict. In the event such construction is not possible, the provisions
of the resolution first adopted shall prevail until such time as the Obligations authorized by the
earlier resolution have been paid in full or otherwise satisfied as therein provided at which time
the provisions of this Resolution shall again prevail. The Notes herein authorized and Parity
Notes and Parity Obligations and the interest thereon shall be payable solely and only out of the
net earnings of the Urban Renewal Area and shall be a first lien on the future Net Revenues of
the Urban Renewal Area. The Notes shall not be general obligations of the Issuer nor shall they
be payable in any manner by taxation and the Issuer shall be in no manner liable by reason of the
-7-
failure of the net revenues to be sufficient for the payment of the Notes. The Notes are hereby
declared to be issued for essential public and governmental purposes for a qualified urban
renewal project.
Section 5. Note Details. Taxable Urban Renewal Revenue Capital Loan Notes, Series
2016E, of the City in the amount of $9,805,000 and $3,000,000 respectively, shall be issued to
evidence the obligations of the Issuer under Loan Agreements pursuant to the provisions of
Section 403.9 of the City Code of Iowa for the aforesaid purpose. The Notes shall be designated
"TAXABLE URBAN RENEWAL REVENUE CAPITAL LOAN NOTES, SERIES 2016E", be
dated September 15, 2016, and bear interest from the date thereof, until payment thereof, at the
office of the Paying Agent, such interest payable on December 1, 2016, and semiannually
thereafter on the 1 st day of June and December in each year until maturity at the rates hereinafter
provided.
The Notes shall be executed by the manual or facsimile signature of the Mayor Pro Tem
and attested by the manual or facsimile signature of the City Clerk, and impressed or printed
with the seal of the City and shall be fully registered as to both principal and interest as provided
in this Resolution; principal, interest and premium, if any, shall be payable at the office of the
Paying Agent by mailing of a check to the registered owner of the Note. The Notes shall be in
the denomination of $9,805,000 and $3,000,000, respectively.
Two Notes will be issued and shall mature on June 1, 2036 and will be payable as
follows:
Note No. 1 (MidWestOne Bank, Purchaser) in the amount of $9,805,000
WE
After Payment
Interest
Mandatory
Payment
Remaining
Rate
Call Amounts
Dates
Principal
3.000%
$738,916
2022
$9,066,084
3.000%
$735,088
2023
$8,330,996
3.000%
$731,259
2024
$7,599,737
3.000%
$727,431
2025
$6,872,306
3.000%
$727,431
2026
$6,144,875
3.000%*
$631,716
2027
$5,513,159
3.000%*
$555,144
2028
$4,958,015
3.000%*
$566,630
2029
$4,391,385
3.000%*
$578,116
2030
$3,813,269
3.000%*
$593,430
2031
$3,219,839
3.000%*
$608,745
2032
$2,611,094
3.000%*
$624,059
2033
$1,987,035
3.000%*
$643,202
2034
$1,343,833
3.000%*
$662,345
2035
$ 681,488
3.000%*
$681,488
2036
$ -0-
WE
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.aov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Note No. 2 (First National Bank, Ames, Iowa, Purchaser) in the amount of $3,000,000
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Section 6. Redemption. Each Note is subject to redemption in whole or in part at par on
June 1, 2026, June 1, 2029, June 1, 2032 and June 1, 2035 from any funds regardless of source.
After Payment
Interest
Mandatory
Payment
Remaining
Rate
Call Amounts
Dates
Principal
3.000%
$226,084
2022
$2,773,916
3.000%
$224,912
2023
$2,549,004
3.000%
$223,741
2024
$2,325,263
3.000%
$222,569
2025
$2,102,694
3.000%
$222,569
2026
$1,880,125
3.000%*
$193,284
2027
$1,686,841
3.000%*
$169,856
2028
$1,516,985
3.000%*
$173,370
2029
$1,343,615
3.000%*
$176,884
2030
$1,166,731
3.000%*
$181,570
2031
$ 985,161
3.000%*
$186,255
2032
$ 798,906
3.000%*
$190,941
2033
$ 607,965
3.000%*
$196,798
2034
$ 411,167
3.000%*
$202,655
2035
$ 208,512
3.000%*
$208,512
2036
$ -0-
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Section 6. Redemption. Each Note is subject to redemption in whole or in part at par on
June 1, 2026, June 1, 2029, June 1, 2032 and June 1, 2035 from any funds regardless of source.
Thirty days' written notice of redemption shall be given to the registered owner of the
Note. Failure to give such notice to any registered owner of the Notes or any defect therein shall
not affect the validity of any proceedings for the redemption of the Notes. All Notes or portions
thereof called for redemption will cease to bear interest after the specified redemption date,
provided funds for their redemption are on deposit at the place of payment.
Section 7. Registration of Notes; Appointment of Registrar; Transfer; Ownership
Delivery; and Cancellation.
(a) Registration. The ownership of Notes may be transferred only by the making of
an entry upon the books kept for the registration and transfer of ownership of the Notes,
and in no other way. The City Controller is hereby appointed as Note Registrar under the
terms of this Resolution. Registrar shall maintain the books of the Issuer for the
registration of ownership of the Notes for the payment of principal of and interest on the
Notes as provided in this Resolution. All Notes shall be negotiable as provided in Article
8 of the Uniform Commercial Code subject to the provisions for registration and transfer
contained in the Notes and in this Resolution.
(b) Transfer. The ownership of any Note may be transferred only upon the
Registration Books kept for the registration and transfer of Notes and only upon
surrender thereof at the office of the Registrar together with an assignment duly executed
by the holder or his duly authorized attorney in fact in such form as shall be satisfactory
to the Registrar, along with the address and social security number or federal employer
identification number of such transferee (or, if registration is to be made in the name of
multiple individuals, of all such transferees). In the event that the address of the
registered owner of a Note (other than a registered owner which is the nominee of the
broker or dealer in question) is that of a broker or dealer, there must be disclosed on the
Registration Books the information pertaining to the registered owner required above.
Upon the transfer of any such Note, a new fully registered Note, of any denomination or
denominations permitted by this Resolution in aggregate principal amount equal to the
unmatured and unredeemed principal amount of such transferred fully registered Note,
and bearing interest at the same rate and maturing on the same date or dates shall be
delivered by the Registrar.
(c) Registration of Transferred Notes. In all cases of the transfer of the Notes, the
Registrar shall register, at the earliest practicable time, on the Registration Books, the
Notes, in accordance with the provisions of this Resolution.
(d) Ownership. As to any Note, the person in whose name the ownership of the same
shall be registered on the Registration Books of the Registrar shall be deemed and
regarded as the absolute owner thereof for all purposes, and payment of or on account of
the principal of any such Notes and the premium, if any, and interest thereon shall be
made only to or upon the order of the registered owner thereof or his legal representative.
All such payments shall be valid and effectual to satisfy and discharge the liability upon
such Note, including the interest thereon, to the extent of the sum or sums so paid.
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(e) Cancellation. All Notes which have been redeemed shall not be reissued but shall
be cancelled by the Registrar. All Notes which are cancelled by the Registrar shall be
destroyed and a Certificate of the destruction thereof shall be furnished promptly to the
Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled
Notes to the Issuer.
(f) Non -Presentment of Notes. In the event any payment check representing payment
of principal of or interest on the Notes is returned to the Paying Agent or if any note is
not presented for payment of principal at the maturity or redemption date, if funds
sufficient to pay such principal of or interest on Notes shall have been made available to
the Paying Agent for the benefit of the owner thereof, all liability of the Issuer to the
owner thereof for such interest or payment of such Notes shall forthwith cease, terminate
and be completely discharged, and thereupon it shall be the duty of the Paying Agent to
hold such funds, without liability for interest thereon, for the benefit of the owner of such
Notes who shall thereafter be restricted exclusively to such funds for any claim of
whatever nature on his part under this Resolution or on, or with respect to, such interest
or Notes. The Paying Agent's obligation to hold such funds shall continue for a period
equal to two years and six months following the date on which such interest or principal
became due, whether at maturity, or at the date fixed for redemption thereof, or
otherwise, at which time the Paying Agent, shall surrender any remaining funds so held
to the Issuer, whereupon any claim under this Resolution by the Owners of such interest
or Notes of whatever nature shall be made upon the Issuer.
(g) Registration and Transfer Fees. The Registrar may furnish to each owner, at the
Issuer's expense, one note for each annual maturity. The Registrar shall famish
additional Notes in lesser denominations (but not less than the minimum denomination)
to an owner who so requests.
Section 8. Reissuance of Mutilated, Destroyed, Stolen or Lost Notes. In case any
outstanding Note shall become mutilated or be destroyed, stolen or lost, the Issuer shall at the
request of Registrar authenticate and deliver a new Note of like tenor and amount as the Note so
mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Note to
Registrar, upon surrender of such mutilated Note, or in lieu of and substitution for the Note
destroyed, stolen or lost, upon filing with the Registrar evidence satisfactory to the Registrar and
Issuer that such Note has been destroyed, stolen or lost and proof of ownership thereof, and upon
furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other
reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as the
Issuer may incur in connection therewith.
Section 9. Record Date. Payments of principal and interest, otherwise than upon full
redemption, made in respect of any Notes, shall be made to the registered holder thereof or to
their designated Agent as the same appear on the books of the Registrar on the 15th day of the
month preceding the payment date. All such payments shall fully discharge the obligations of
the Issuer in respect of such Notes to the extent of the payments so made. Payment of principal
shall only be made upon surrender of the Notes to the Paying Agent.
21M
Section 10. Execution, Authentication and Delivery of the Notes. Upon the adoption of
this Resolution, the Mayor Pro Tem and Clerk shall execute and deliver the Notes to the
Registrar, who shall authenticate the Notes and deliver the same to or upon order of the Original
Purchasers. No Note shall be valid or obligatory for any purpose or shall be entitled to any right
or benefit hereunder unless the Registrar shall duly endorse and execute on such Note a
Certificate of Authentication substantially in the form of the Certificate herein set forth. Such
Certificate upon any Note executed on behalf of the Issuer shall be conclusive evidence that the
Note so authenticated has been duly issued under this Resolution and that the holder thereof is
entitled to the benefits of this Resolution.
Section 11. Right to Name Substitute Paving Agent or Re isg tray. Issuer reserves the
right to name a substitute, successor Registrar or Paying Agent upon giving prompt written
notice to each registered Noteholder.
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Section 12. Form of Note. Notes shall be printed in substantial compliance with
standards proposed by the American Standards Institute substantially in the form as follows:
(6 (6)
(1)
0 3 (4)(5
(9)
(9a)
(10)
(Continued on the back of this Note)
(11)(12)(13) (14) (15)
FIGURE 1
Front
-13-
(10) (16)
(Continued)
FIGURE 2
(Back)
NCE
The text of the Notes to be located thereon at the item numbers shown shall be as
follows:
Item 1, figure 1= "STATE OF IOWA"
"COUNTY OF JOHNSON"
"CITY OF IOWA CITY"
"TAXABLE URBAN RENEWAL REVENUE CAPITAL
LOAN NOTE"
"SERIES 2016E"
Item 2, figure I
Item 3, figure 1
Item 4, figure 1
Item 5, figure 1
Item 6, figure 1
Item 7, figure I
Item 8, figure 1
TAXABLE FOR FEDERAL INCOME TAX PURPOSES
Rate: _
Maturity:
Note Date: September 15, 2016
CUSIP No.:
_ "Registered"
Note No.
Principal Amount: $
Item 9, figure 1= The City of Iowa City, State of Iowa, a municipal corporation
organized and existing under and by virtue of the Constitution and laws of the State of Iowa (the
"Issuer"), for value received, promises to pay from the source and as hereinafter provided, on the
maturity date indicated above, to
Item 9A, figure 1 = (Registration panel to be completed by Registrar or Printer with
name of Registered Owner).
Item 10, figure 1 = or registered assigns, the principal sum of (PRINCIPAL
AMOUNT WRITTEN OUT) THOUSAND DOLLARS in lawful money of the United States of
America, on the maturity date shown above, only upon presentation and surrender hereof at the
office of the City Controller, Paying Agent of this issue, or its successor, with interest on such
sum from the date hereof until paid at the rate per annum specified above, payable on December
1, 2016, and semiannually thereafter on the Ist day of June and December in each year.
Interest and principal shall be paid to the registered holder of the Note as shown on the
records of ownership maintained by the Registrar as of the 15th day of the month preceding the
payment date.
THE HOLDERS OF THE NOTES SHOULD TREAT THE INTEREST AS SUBJECT
This Note is issued pursuant to the provisions of Section 403.9 of the City Code of Iowa,
for the purpose of paying costs of aiding in the planning, undertaking, and carrying out of an
urban renewal project for the redevelopment of real property, including one or more grants to a
redeveloper, The Chauncey, L.L.C., in connection with the construction of Class A office space,
-15-
workforce housing, a hotel, a bowling alley and movie theatre at the northeast corner of College
and Gilbert Streets, and in order to evidence the obligations of the Issuer under a certain Loan
Agreements dated September 15, 2016, in conformity to a Resolution of the City Council of the
City duly passed and approved. In any suit, action or proceeding involving the validity or
enforceability of the Notes or the security therefor, the Notes shall be conclusively deemed to
have been issued for such purpose and such project shall be conclusively deemed to have been
planned, located and carried out in accordance with the provisions of Iowa Code Chapter 403.
For a complete statement of the revenues and funds from which and the conditions under which
this Note is payable, a statement of the conditions under which additional Notes or Bonds of
equal standing may be issued, and the general covenants and provisions pursuant to which this
Note is issued, reference is made to the above described Loan Agreements and Resolution.
The Note is subject to redemption in whole or in part at par on June 1, 2026, June 1,
2029, June 1, 2032 and June 1, 2035, from any funds regardless of source, in whole or from time
to time in part.
Thirty days' written notice of redemption shall be given to the registered owner of the
Note. Failure to give such notice to any registered owner of the Notes or any defect therein shall
not affect the validity of any proceedings for the redemption of the Notes. All Notes or portions
thereof called for redemption will cease to bear interest after the specified redemption date,
provided funds for their redemption are on deposit at the place of payment.
Ownership of this Note may be transferred only by transfer upon the books kept for such
purpose by the City Controller, the Registrar. Such transfer on the books shall occur only upon
presentation and surrender of this Note at the office of the Registrar as designated below,
together with an assignment duly executed by the owner hereof or his duly authorized attorney in
the form as shall be satisfactory to the Registrar. Issuer reserves the right to substitute the
Registrar and Paying Agent but shall, however, promptly give notice to registered Noteholders of
such change. All Notes shall be negotiable as provided in Article 8 of the Uniform Commercial
Code and subject to the provisions for registration and transfer contained in the Note Resolution.
This Note and the series of which it forms a part and any Additional Obligations which
may be hereafter issued and outstanding from time to time on a parity with the Notes, as
provided in the Note Resolution and Loan Agreements of which notice is hereby given and
which are hereby made a part hereof, are payable from and secured by a pledge of the Net
Revenues of the Urban Renewal Area, as defined and provided in the Resolution. This Note is
not payable in any manner by taxation and under no circumstances shall the City be in any
manner liable by reason of the failure of the Net Revenues to be sufficient for the payment
hereof.
And it is hereby represented and certified that all acts, conditions and things requisite,
according to the laws and Constitution of the State of Iowa, to exist, to be had, to be done, or to
be performed precedent to the lawful issue of this Note, have been existent, had, done and
performed as required by law.
-16-
IN TESTIMONY WHEREOF, the City by its City Council has caused this Note to be
signed by the facsimile signature of its Mayor Pro Tem and attested by the facsimile signature of
its Clerk, with the seal of the City printed hereon, and authenticated by the facsimile signature of
an authorized representative of the Registrar, the City Controller, Iowa City, Iowa.
Item 11, figure 1 = Date of Authentication:
Item 12, figure 1 = This is one of the Notes described in the within mentioned
Resolution, as registered by the City Controller
CITY CONTROLLER, Registrar
By:
Authorized Signature
Item 13, figure I = Registrar and Transfer Agent: City Controller
Paying Agent: City Controller
SEE REVERSE FOR CERTAIN DEFINITIONS
Item 14, figure 1 = (Seal)
Item 15, figure 1 = (Signature Block)
CITY OF IOWA CITY, STATE OF IOWA
By: (facsimile signature)
Mayor Pro Tem
ATTEST:
Un
Item 17, figure 1 = (Assignment Block)
(Information Required for Registration)
-17-
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No.
within Note and does hereby irrevocably constitute and appoint
attorney in fact to transfer the said Note on the books kept for registration of the within Note,
with full power of substitution in the premises.
Dated this day of 12016.
SIGNATURE
GUARANTEED
the
(Person(s) executing this Assignment sign(s)
here)
IMPORTANT - READ CAREFULLY
The signature(s) to this Power must correspond with the name(s) as written upon
the face of the Certificate(s) or Note(s) in every particular without alteration or
enlargement or any change whatever. Signature guarantee must be provided in
accordance with the prevailing standards and procedures of the Registrar and
Transfer Agent. Such standards and procedures may require signature to be
guaranteed by certain eligible guarantor institutions that participate in a
recognized signature guarantee program.
INFORMATION REQUIRED FOR REGISTRATION OF TRANSFER
Name of Transferee(s)
Address of Transferee(s)
Social Security or Tax Identification
Number of Transferee(s)
Transferee is a(n):
Individual*
Partnership
Corporation
Trust
If the Note is to be registered in the names of multiple individual owners, the names of all
such owners and one address and social security number must be provided.
The following abbreviations, when used in the inscription on the face of this Note, shall
be construed as though written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with rights of survivorship and not as tenants in common
lA UNIF TRANS MIN ACT - .......... Custodian ..........
(Cust) (Minor)
Under Iowa Uniform Transfers to Minors Act ...................
(State)
ADDITIONAL ABBREVIATIONS MAY ALSO BE USED
THOUGH NOT IN THE ABOVE LIST
Section 14. Equality of Lien. The timely payment of principal of and interest on the
Notes and Parity Obligations shall be secured equally and ratably by the Net Revenues of the
Urban Renewal Area without priority by reason of number or time of sale or delivery; and the
revenues of the Urban Renewal Area are hereby irrevocably pledged to the timely payment of
both principal and interest as the same become due.
Section 15. Application of Note Proceeds — Project Fund. Proceeds of the Notes shall be
applied as follows:
♦ An amount equal to accrued interest shall be deposited in the Sinking Fund for
application to the first payment of interest on the Notes.
♦ The balance of the proceeds shall be deposited to the Project Fund and expended
therefrom for the purposes of issuance.
The Project Fund shall be invested in accordance with Section 18 of this Resolution.
Earnings on investments of the Project Fund shall be deposited in and expended from the Project
Fund. Any amounts on hand in the Project Fund shall be available for the payment of the
principal of or interest on the Notes at any time that other funds of the Urban Renewal Area shall
be insufficient to the purpose, in which event such funds shall be repaid to the Project Fund at
the earliest opportunity. Any balance on hand in the Project Fund and not immediately required
for its purposes may be invested not inconsistent with limitations provided by law, the Internal
Revenue Code and this Resolution.
Section 16. Debt Certification. It is hereby certified that subject to such limitations as
provided by in Section 403.19 of the Code of Iowa, the annual amount to be certified on or
before December 1 each year for collection in incremental taxes pursuant to Section 403.19(2) of
the Code of Iowa, shall be not less than the maximum amount set forth in Section 5 of this
Resolution.
Section 17. Application of Revenues. The provisions in the Outstanding Obligations
heretofore adopted are hereby ratified and confirmed, and all such provisions inure to and
constitute the security for the payment of the principal and interest on Notes hereby authorized to
be issued; provided, however: a) that the amounts to be set aside and paid into the Sinking Fund
in equal monthly installments from the earnings shall be sufficient to pay the principal and
9KW
interest due each year, not only on the Outstanding Obligations, but also the principal and
interest of the Notes herein authorized to be issued and to maintain a reserve therefor, and b) the
Reserve Fund provided therein shall apply only to the Outstanding Obligations and shall not
secure the Notes.
Nothing in this Resolution shall be construed to impair the rights vested in the
Outstanding Obligation. The amounts herein required to be paid into the various funds named in
this Section shall be inclusive of payments required in respect to the Outstanding Obligations.
The provisions of the legislation authorizing the Outstanding Obligations and the provisions of
this Resolution are to be construed wherever possible so that the same will not be in conflict. In
the event such construction is not possible, the provision s of the resolution first adopted shall
prevail until such time as the notes or bonds authorized by said resolution have been paid in full
or otherwise satisfied as therein provided at which time the provisions of this Resolutions shall
again prevail.
From and after the Outstanding Obligations have been paid in full or defeased, and from
and after the delivery of any Notes, and as long as any of the Notes or Parity Obligations shall be
outstanding and unpaid either as to principal or as to interest, or until all of the Notes and Parity
Obligations then outstanding shall have been discharged and satisfied in the manner provided in
this Resolution, the entire income and revenues of the Urban Renewal Area shall be deposited as
collected in a fund to be known as the Urban Renewal Revenue Fund (the 'Revenue Fund"), and
shall be disbursed only as follows:
(a) Sinking Fund. Money in the Revenue Fund shall next be disbursed to make
deposits into a separate and special fund to pay the principal and interest
requirements of the Fiscal Year on the Notes and Panty Obligations. The fund
shall be known as the Urban Renewal Revenue Note and Interest Sinking Fund
(the "Sinking Fund"). The required amount to be deposited in the Sinking Fund
in any month shall be the equal monthly amount necessary to pay in full the
installment of interest coming due on the next interest payment date on the then
outstanding Notes and Parity Obligations, plus the equal monthly amount
necessary to pay in full the installment of principal coming due on such Notes on
the next succeeding principal payment date until the full amount of such
installment is on hand. If for any reason the amount on hand in the Sinking Fund
exceeds the required amount, the excess shall forthwith be withdrawn and paid
into the Revenue Fund. Money in the Sinking Fund shall be used solely for the
purpose of paying principal of and interest on the Notes and Parity Obligations as
the same shall become due and payable.
(b) Subordinate Obligations. Money in the Revenue Fund may next be used to pay
principal of and interest on (including reasonable reserves therefor) any other
obligations which by their terms shall be payable from the revenues of the Urban
Renewal Area, but subordinate to the Notes and Parity Obligations.
(c) Surplus Revenue. All money thereafter remaining in the Revenue Fund at the
close of each month may be deposited in any of the funds created by this
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Resolution, or may be used to pay or redeem the Notes or Parity Obligations, or
for any lawful purpose.
Money in the Revenue Fund shall be allotted and paid into the various funds and
accounts hereinbefore referred to in the order in which the funds are listed, and if in any month
the money in the Revenue Fund shall be insufficient to deposit or transfer the required amount in
any of the funds or accounts, the deficiency shall be made up after payments into all funds and
accounts enjoying a prior claim to the revenues shall have been met in full. The provisions of
this Section shall not be construed to require the Issuer to maintain separate bank accounts for
the funds created by this Section; except the Sinking Fund shall be maintained in a separate
account but may be invested in conjunction with other funds of the City but designated as a trust
fund on the books and records of the City.
Section 18. Investments. All of the funds provided by this Resolution may be invested
only in Permitted Investments or deposited in financial institutions which are members of the
Federal Deposit Insurance Corporation or its equivalent successor, and the deposits in which are
insured thereby and all such deposits exceeding the maximum amount insured from time to time
by FDIC or its equivalent successor in any one financial institution shall be continuously secured
in compliance with Chapter 12C of the Code of Iowa, 2015, as amended, or otherwise by a valid
pledge of direct obligations of the United States Government having an equivalent market value.
All such interim investments shall mature before the date on which the moneys are required for
the purposes for which the fund was created or otherwise as herein provided but in no event
maturing in more than three years in the case of the Reserve Fund.
All income derived from such investments shall be deposited in the Revenue Fund and
shall be regarded as revenues of the Urban Renewal Area. Investments shall at any time
necessary be liquidated and the proceeds thereof applied to the purpose for which the respective
fund was created.
Section 19. Covenants Regarding the Urban Renewal Area. The Issuer hereby covenants
and agrees with each and every holder of the Bonds and Parity Obligations:
(a) Maintenance in Force. The Issuer will maintain the Urban Renewal Area and the
Ordinance in force and will annually certify indebtedness for the Project and
cause the Tax Increment Revenues of the Urban Renewal Area to be collected and
applied as provided in this Resolution. Provided, however, that to the extent that
amounts are on hand and are sufficient to meet the payments required to be made
and to maintain a sufficient balance in each fund as required by this Resolution,
the Issuer may adjust the certification for incremental taxes in any year.
(b) Accounting and Audits. The Issuer will cause to be kept proper books and
accounts of the Issuer adapted to the Urban Renewal Area and in accordance with
generally relating accounting practices, and will cause the books and accounts to
be audited as a part of the issuers general audit annually after the end of each
Fiscal Year by an independent auditor and will make generally available to the
holders of any of the Bonds and Parity Obligations, the balance sheet and the
-21-
operating statement of the Issuer as certified by such auditor. The Original
Purchaser shall have at all reasonable times the right to inspect the Urban
Renewal Area records, accounts and data of the Issuer relating thereto. It is
further agreed that if the Issuer shall fail to provide the audits and reports required
by this subsection, the Original Purchaser may cause such audits and reports to be
prepared at the expense of the Issuer. The audit reports required by this Section
shall include, but not be limited to, the following information:
(i) A statement of Net Revenues collected in the special fund of the Urban
Renewal Area;
(ii) Analyses of each fund and account created hereunder, including
deposits, withdrawals and beginning and ending balances;
(iii) The minutes of the governing body of the Issuer for the Fiscal
Year; and
(iv) A general statement covering any events or circumstances which are
perceived to affect the financial status of the Bonds.
(c) State Laws. The Issuer will faithfully and punctually perform all duties with
reference to the Bonds required by the Constitution and laws of the State of Iowa,
including the certification and collecting of indebtedness as above provided, and
will segregate the Net Revenues of the Urban Renewal Area and apply said
revenues to the funds specified in this Resolution.
(d) The Issuer reserves the right to amend the Urban Renewal Area in its lawful
discretion. Provided, the Issuer may amend the Urban Renewal Area by merging
or combining with another such urban renewal area, but if urban renewal areas
being combined with the Urban Renewal Area have obligations outstanding
payable from the Incremental Tax Revenues of the Net Revenues available to pay
the Bonds and all other obligations of the merged area in the Fiscal Year in which
the action takes place, computed on the same basis as provided in Section 20(b)(i)
of this Resolution, shall be at least equal to 1.25 times the maximum combined
debt service of the urban renewal areas in any Fiscal Year. The terms of merger
of urban renewal areas may provide that the obligations of the combined urban
renewal area, having the same lien position as existed in the separate urban
renewal areas. In no event shall obligations resulting from a merger have any
priority over the Bonds or Panty Obligations.
Section 20. Prior Lien and Parity Obligations. The Issuer will issue no other notes,
bonds or obligations of any kind or nature payable from or enjoying a lien or claim on the
property or revenues of the Urban Renewal Area having priority over the Notes or Panty
Obligations.
-22-
Additional Obligations may be issued on a parity and equality of rank with the Notes
with respect to the lien and claim of such Additional Obligations to the revenues of the Urban
Renewal Area and the money on deposit in the funds adopted by this Resolution, for the
following purposes and under the following conditions, but not otherwise:
(a) For the purpose of refunding any of the Notes or Parity Obligations which shall
have matured or which shall mature not later than three months after the date of delivery
of such refunding obligation and for the payment of which there shall be insufficient
money in the Sinking Fund;
(b) For the purpose of aiding in the planning or undertaking of an urban renewal
project in the Urban Renewal Area, refunding any outstanding Notes, Parity Obligations
or general obligation notes, if all of the following conditions shall have been met:
(i) before any such Additional Obligations ranking on a parity
are issued, there will have been procured and filed with the City Clerk, a
statement of an Independent Auditor, independent financial consultant or a
consulting engineer, not a regular employee of the Issuer, reciting the
opinion based upon necessary investigations that the Net Revenues of the
Urban Renewal Area for the preceding Fiscal Year (with adjustments as
hereinafter provided) were equal to at least 1.25 times the maximum
amount that will be required in any Fiscal Year prior to the longest
maturity of any of the Notes or Parity Obligations for both principal of and
interest on all Notes and Parity Obligations then outstanding which are
payable from the net earnings of the Urban Renewal Area and the
Additional Obligations then proposed to be issued.
For the purpose of determining the Net Revenues of the Urban Renewal
Area for the preceding Fiscal Year as aforesaid, the amount of the gross
revenues for such year may be adjusted by an Independent Auditor,
independent financial consultant or a consulting engineer, not a regular
employee of the Issuer, so as to reflect any changes in the amount of such
revenues which would have resulted had the full tax increment available
for the Urban Renewal Area been certified or had additional taxable value
realized since that time been in effect during all of such preceding Fiscal
Year.
(ii) the Additional Obligations must be payable as to principal
and as to interest on the same month and day as the Notes herein
authorized.
(iii) for the purposes of this Section, principal and interest
falling due on the first day of a Fiscal Year shall be deemed a requirement
of the immediately preceding Fiscal Year.
-23-
(iv) for purposes of this Section, "preceding Fiscal Year" shall
be the most recently completed Fiscal Year for which audited financial
statements prepared by a certified public accountant are issued and
available, but in no event a Fiscal Year which ended more than eighteen
months prior to the date of issuance of Additional Obligations.
Section 21. Not Qualified Tax -Exempt Obligations. The Notes shall not be designated
as qualified tax-exempt obligations as defined by Section 265(b) of the Internal Revenue Code of
the United States, as amended.
Section 22. Discharge and Satisfaction of Notes. The covenants, liens and pledges
entered into, created or imposed pursuant to this Resolution may be fully discharged and
satisfied with respect to the Notes and Parity Obligations, or any of them, in any one or more of
the following ways:
(a) By paying the Notes or Parity Obligations when the same shall become due and
payable; and
(b) By depositing in trust with the Treasurer, or with a corporate trustee designated by
the Governing Body for the payment of the obligations and irrevocably appropriated
exclusively to that purpose an amount in cash or direct obligations of the United States
the maturities and income of which shall be sufficient to retire at maturity, or by
redemption prior to maturity on a designated date upon which the obligations may be
redeemed, all of such obligations outstanding at the time, together with the interest
thereon to maturity or to the designated redemption date, premiums thereon, if any, that
may be payable on the redemption of the same; provided that proper notice of redemption
of all such obligations to be redeemed shall have been previously published or provisions
shall have been made for such publication.
Upon such payment or deposit of money or securities, or both, in the amount and manner
provided by this Section, all liability of the Issuer with respect to the Notes or Parity Obligations
shall cease, determine and be completely discharged, and the holders thereof shall be entitled
only to payment out of the money or securities so deposited.
Section 23. Resolution a Contract. The provisions of this Resolution shall constitute a
contract between the Issuer and the holder or holders of the Notes and Parity Obligations, and
after the issuance of any of the Notes no change, variation or alteration of any kind in the
provisions of this Resolution shall be made in any manner, except as provided in the next
succeeding Section, until such time as all of the Notes and Parity Obligations, and interest due
thereon, shall have been satisfied and discharged as provided in this Resolution.
Section 24. Amendment of Resolution Without Consent. The Issuer may, without the
consent of or notice to any of the holders of the Notes and Parity Obligations, amend or
supplement this Resolution for any one or more of the following purposes:
-24-
(a) to cure any ambiguity, defect, omission or inconsistent provision in this
Resolution or in the Notes or Parity Obligations; or to comply with any application
provision of law or regulation of federal or state agencies; provided, however, that such
action shall not materially adversely affect the interests of the holders of the Notes or
Parity Obligations;
(b) to grant to or confer upon the holders of the Notes or Parity Obligations any
additional rights, remedies, powers or authority that may lawfully be granted to or
conferred upon the holders of the Notes;
(c) to add to the covenants and agreements of the Issuer contained in this Resolution
other covenants and agreements of, or conditions or restrictions upon, the Issuer or to
surrender or eliminate any right or power reserved to or conferred upon the Issuer in this
Resolution; or
(e) to subject to the lien and pledge of this Resolution additional pledged revenues as
may be permitted by law.
Section 25. Amendment of Resolution Requiring Consent. This Resolution may be
amended from time to time if such amendment shall have been consented to by holders of not
less than two-thirds in principal amount of the Notes and Parity Obligations at any time
outstanding (not including in any case any Notes which may then be held or owned by or for the
account of the Issuer, but including such refunding obligations as may have been issued for the
purpose of refunding any of such Notes if such refunding obligations shall not then be owned by
the Issuer); but this Resolution may not be so amended in such manner as to:
(a) Make any change in the maturity of interest rate of the Notes, or modify the terms
of payment of principal of or interest on the Notes or any of them or impose any
conditions with respect to such payment;
(b) Materially affect the rights of the holders of less than all of the Notes and Parity
Obligations then outstanding; and
(c) Reduce the percentage of the principal amount of Notes, the consent of the
holders of which is required to effect a further amendment.
Whenever the Issuer shall propose to amend this Resolution under the provisions of this
Section, it shall cause notice of the proposed amendment to be filed with the Original Purchasers
and to be mailed by certified mail to each registered owner of any Note as shown by the records
of the Registrar. Such notice shall set forth the nature of the proposed amendment and shall state
that a copy of the proposed amendatory Resolution is on file in the office of the City Clerk.
Whenever at any time within one year from the date of the mailing of the notice there
shall be filed with the City Clerk an instrument or instruments executed by the holders of at least
two-thirds in aggregate principal amount of the Notes then outstanding as in this Section defined,
which instrument or instruments shall refer to the proposed amendatory Resolution described in
-25-
the notice and shall specifically consent to and approve the adoption thereof, thereupon, but not
otherwise, the Governing Body of the Issuer may adopt such amendatory Resolution and such
Resolution shall become effective and binding upon the holders of all of the Notes and Parity
Obligations.
Any consent given by the holder of a Note pursuant to the provisions of this Section shall
be irrevocable for a period of six months from the date of the instrument evidencing such consent
and shall be conclusive and binding upon all future holders of the same Note during such period.
Such consent may be revoked at any time after six months from the date of such instrument by
the holder who gave such consent or by a successor in title by filing notice of such revocation
with the City Clerk.
The fact and date of the execution of any instrument under the provisions of this Section
may be proved by the certificate of any officer in any jurisdiction who by the laws thereof is
authorized to take acknowledgments of deeds within such jurisdiction that the person signing
such instrument acknowledged before him the execution thereof, or may be proved by an
affidavit of a witness to such execution sworn to before such officer.
The amount and numbers of the Notes held by any person executing such instrument and
the date of his holding the same may be proved by an affidavit by such person or by a certificate
executed by an officer of a bank or trust company showing that on the date therein mentioned
such person had on deposit with such bank or trust company the Notes described in such
certificate.
Section 26. Severability. If any section, paragraph, or provision of this Resolution shall
be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any of the remaining provisions.
Section 27. Repeal of Conflicting Ordinances or Resolutions and Effective Date. All
other ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this
Resolution are, to the extent of such conflict, hereby repealed; and this Resolution shall be in
effect from and after its adoption.
-26-
ADOPTED AND APPROVED this 16th day of August, 2016.
ATTEST:
z
City k
4�
Mayr ro ei
-27-
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF JOHNSON )
I, the undersigned City Clerk of the City of Iowa City, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the corporate records of the City
showing proceedings of the City Council, and the same is a true and complete copy of the action
taken by the Council with respect to the matter at the meeting held on the date indicated in the
attachment, which proceedings remain in full force and effect, and have not been amended or
rescinded in any way; that meeting and all action thereat was duly and publicly held in
accordance with a notice of public hearing 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 the agenda being attached hereto) pursuant to the local
rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable advance
notice to the public and media at least twenty-four hours prior to the commencement of the
meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the City hereto affixed this 16th day of
August 12016.
City Nerk, City of Iowa City, State of Iowa
(SEAL)
01265928-1\10714-120
LOAN AGREEMENT
The City of Iowa City, Iowa (the "City") hereby agrees to sell, and MidWestOne Bank
(the "Bank") hereby agrees to purchase the Iowa City, Iowa Taxable Urban Renewal Revenue
Capital Loan Note, Series 2016E (the "Note"), in the principal amount of $9,805,000, to be dated
September 15, 2016 (the "Dated Date"). The Note will be secured solely and only by a first lien
on the net revenues of the City -University Project I Urban Renewal Area, as amended, (the
"Urban Renewal Area") certified by and paid to the City pursuant to Iowa Code Section 403.19.
No reserve fund shall be required.
The Note will mature on June 1, 2036, and will be payable as follows:
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Interest will be payable December 1, 2016, and semiannually thereafter on the first day of
June and December.
After Payment
Interest
Mandatory
Payment
Remaining
Rate
Call Amounts
Dates
Principal
3.000%
$738,916
2022
$9,066,084
3.000%
$735,088
2023
$8,330,996
3.000%
$731,259
2024
$7,599,737
3.000%
$727,431
2025
$6,872,306
3.000%
$727,431
2026
$6,144,875
3.000%*
$631,716
2027
$5,513,159
3.000%*
$555,144
2028
$4,958,015
3.000%*
$566,630
2029
$4,391,385
3.000%*
$578,116
2030
$3,813,269
3.000%*
$593,430
2031
$3,219,839
3.000%*
$608,745
2032
$2,611,094
3.000%*
$624,059
2033
$1,987,035
3.000%*
$643,202
2034
$1,343,833
3.000%*
$662,345
2035
$ 681,488
3.000%*
$681,488
2036
$ -0-
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Interest will be payable December 1, 2016, and semiannually thereafter on the first day of
June and December.
The Note is subject to redemption in whole or in part at par on June 1, 2026, June 1,
2029, June 1, 2032 and June 1, 2035.
The Bank acknowledges that concurrent with the sale of the Note, it will sell an
additional Note to First National Bank, Ames, Iowa, in the principal amount of $3,000,000 which
Note shall rank on parity with the Note.
The City agrees that it will not enter into any agreement, nor issue any additional
obligations, pledging the net revenue of the Urban Renewal Area unless it has first obtained a
certificate from an independent financial advisor or certified public accountant finding that the
net revenues of the Urban Renewal Area are sufficient to cover 125% of principal and interest on
both, all outstanding obligations, including the Note, to which the net revenues have been
pledged, and the new proposed obligation.
The Bank hereby agrees to perform under the terms of this Agreement, and to purchase
the Note from the City on the Dated Date, or such other date as shall be agreed to in writing, at a
price of $9,805,000 upon delivery of the Note to the Purchaser together with an opinion
approving and certifying the legality of the Note by the firm of Ahlers & Cooney, P.C.,
Attorneys, Des Moines, Iowa.
The Bank hereby represents, certifies and agrees as follows:
1. The business of the Bank is banking. As an institutional investor, the Bank has
sufficient knowledge and experience in financial and business matters, including the purchase
and ownership of limited security municipal obligations, to be able to evaluate the risks and
merits of the investment represented by its purchase of the Note. The Bank has not relied upon
the City or its officers, Council members, employees, City's financial advisor, attorneys or agents
as to the accuracy or completeness of any such information. As a sophisticated investor the Bank
has made its decision to purchase the Note based solely upon such information, inquiry and
analysis. The Bank is able to bear the economic risks represented by its purchase of the Note.
2. Neither the City nor its officers, Council members, employees, attorneys, City's
financial advisor or agents has made any representation or warranty concerning the future
financial position of the Urban Renewal Area, or future business conditions in the Urban
Renewal Area; the likelihood that tax increments collected by the City pursuant to Iowa Code
Section 403.19 from the Urban Renewal Area will be sufficient to pay principal and interest on
the Note, nor have any of them represented or warranted the correctness of any materials
furnished to the Bank by any third party.
3. The Bank acknowledges it has, independently and without reliance upon the City,
its officers, Council members, employees, City's financial advisor, attorneys or agents, and based
on the financial statements and such other documents and information as it deems appropriate,
made its own credit analysis and decision to enter into this Agreement. The Bank also
acknowledges that it will, independently and without reliance upon the above parties and based
on such documents and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement.
4. The Bank understands that the Note is payable solely and only from the
incremental taxes collected by the City pursuant to Iowa Code Section 403.19 with respect to the
Urban Renewal Area. The Bank acknowledges that the sufficiency of said incremental taxes to
pay the Note will depend upon the continual levy and payment of taxes against properties in the
Urban Renewal Area by third parties, and may be affected by changes in the provisions of State
law governing the collection of taxes and the division of revenue under Iowa Code Section
403.19 for the Urban Renewal Area property tax classifications and valuations, financial
conditions for properties in the Urban Renewal Area, and other factors outside the control of the
City.
5. The Bank acknowledges that no offering statement, prospectus, offering circular
or other comprehensive offering statement containing material information with respect to the
City, the Urban Renewal Area or the Note, is being provided by the City and that, in due
diligence, the Bank has sought such advice as it has deemed necessary and have made its own
inquiry and analysis with respect to the City, the Note and the security therefor.
6. The Bank acknowledges that it obtained such independent legal and financial
information it deems adequate for a reasonable investor in making investment decisions from
knowledgeable individuals of its choosing concerning the City, the Urban Renewal Area and the
Note.
7. The Bank is acquiring the Note for its own account, or for resale to other
sophisticated investors. If the Bank sells or otherwise disposes any or all of the Note, it will
comply with all applicable state and federal laws, rules, regulations, including but not limited to
all required disclosure. The Bank agrees that should it sell or transfer all or any portion of the
Note, such sale or transfer shall be limited to Institutional Investors. Such sale or transfer will
not be made, and no transfer and registration will be completed, until an Investment Letter in the
form attached hereto as Exhibit A has been executed by such Institutional Investor, such letter is
furnished to the Registrar and the Transfer Agent for the Note, and the conditions of the
Investment Letter and this Agreement are satisfied.
8. The Bank understands that the Note (a) is not being registered under the Securities
Act of 1933 and is not being registered or otherwise qualified for sale under the laws of Iowa or
the "Blue Sky" laws and regulations of any other state, (b) will not be listed on any stock or other
securities exchange, (c) will carry no rating from any rating service, and (d) will not be readily
marketable. No opinion relating to the registration of the Note will be issued by or on behalf of
the City. The Bank agrees not to offer, sell or transfer the Note or make any change in
registration of the Note without having first determined that the sale or transaction which
necessitates or prompts the transfer to change of registration may be made without violating the
Iowa Uniform Securities Act or any other applicable law, rule or regulation.
9. The Bank acknowledges this transaction is exempt from SEC Rule 15c2-12
because the Bank is a sophisticated investor, any transfer is restricted to other sophisticated
investors, and the Note will be in one or more denominations of $100,000 or more.
Dated this 23rd day of August , 2016.
MIDWESTONE BANK
Iowa City, Iowa
Accepted on behalf of the City Council, City of Iowa City, Iowa.
By:
Kingsley Botchway Mayor Pro Tem
ATTEST:
,LCikuz".j . ��
Manan Karr, City Clerk
(SEAL)
0YII9iZ.VfiL OWC36dn
Exhibit "A"
(Form of Investment Letter)
Ahlers & Cooney, P.C. City of Iowa City, Iowa
100 Court Avenue, Suite 600 410 E. Washington Street
Des Moines, IA 50309 Iowa City, Iowa 52240
RE: Iowa City, Iowa - $9,805,000 Taxable Urban Renewal Revenue Capital
Loan Note, Series 2016E
Ladies and Gentlemen:
This letter is to provide you with certain representations and agreements with respect to our
participation in the purchase of the $9,805,000 Taxable Urban Renewal Revenue Capital Loan
Note, Series 2016E, in the aggregate principal amount of $9,805,000 referred to above (the
ANote"), dated September 15, 2016, issued by the City of Iowa City, Iowa (the AIssuer@).
The business of the undersigned is banking. As an Institutional Investor, as hereinafter
defined, the bank has sufficient knowledge and experience in financial and business matters,
including the purchase and ownership of municipal obligations, to be able to evaluate the risks and
merits of the investment represented by its purchase of the Note. It is able to bear the economic
risks represented by its purchase of the Note.
The bank has made inquiry and analysis with respect to the Issuer and other material
factors affecting the credit of the Issuer and the likelihood of the payment of the Note. It
acknowledges that it has been furnished with copies of all legal documents pertaining to this issue.
It further acknowledges that it has been offered access to all information relating to the financial
data and business of the Issuer, as well as such other information as the undersigned deems
necessary or appropriate as a prudent and knowledgeable investor in evaluating the purchase of the
Note.
Neither the Issuer nor its officers, Council members, or employees or agents has made any
representation or warranty concerning the financial position or business condition of the Issuer,
nor have any of them represented or warranted the correctness of any offering materials furnished
by the Issuer in connection with its purchase of the Note. The bank has not relied upon the Issuer
or its officers, Council members, or employees or agents as to the accuracy or completeness of
such information. Asa sophisticated investor, the bank has made its decision to purchase the
Note based solely upon such information and its own inquiry and analysis.
The bank is familiar with the federal and state (including, but not limited to the state of
Iowa) legislation, rules, regulations, and case law pertaining to the transfer and distribution of
securities, including, but not limited to, disclosure obligations of the seller incident to any such
transfer or distribution. It acknowledges that the Note have not been registered under the
securities laws of the United States or any state thereof, and hereby covenants and agrees that it
City of Iowa City, Iowa
$9,805,000 Taxable Urban Renewal Revenue Capital
Loan Note, Series 2016E
Page 2
will not sell, offer for sale, pledge, transfer, convey, hypothecate, mortgage, or dispose of the Note
or any interest therein in violation of applicable federal or state law.
The bank represents it is purchasing the Note for its own account (or related subsidiary or
affiliate corporation) for Investment (and not on behalf of another) and has no present intention of
reselling the Note or dividing its interest therein, either currently or after passage of a fixed or
determinable period of time or upon the occurrence or nonoccurrence of any predetermined event
or circumstance; but the undersigned reserves the right to sell, offer for sale, pledge, transfer,
convey, hypothecate, mortgage, or dispose of the Note at some future date determined by it,
subject to the provisions of the Note Purchase Agreement which is attached hereto and
incorporated herein by reference. It has not and will not pay any commission, compensation, or
fee to any person or entity in connection with its purchase of the Note and it is not aware of, and is
not purchasing the Note pursuant to, any form of general solicitation or advertising with respect to
the Note.
The bank agrees that it will not furnish to any third person information furnished to it by or
on behalf of the Issuer and designated as confidential except as permitted and provided in the Note.
This letter shall be binding upon the undersigned and its successors and assigns.
Very Truly Yours,
01263120-1\1o71n-120
LOAN AGREEMENT
The City of Iowa City, Iowa (the "City") hereby agrees to sell, and First National Bank,
Ames, Iowa (the "Bank") hereby agrees to purchase the Iowa City, Iowa Taxable Urban Renewal
Revenue Capital Loan Note, Series 2016E (the "Note"), in the principal amount of $3,000,000, to
be dated September 15, 2016 (the "Dated Date"). The Note will be secured solely and only by a
first lien on the net revenues of the City -University Project 1 Urban Renewal Area, as amended,
(the "Urban Renewal Area") certified by and paid to the City pursuant to Iowa Code Section
403.19. No reserve fund shall be required.
The Note will mature on June 11 2036, and will be payable as follows:
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Interest will be payable December 1, 2016, and semiannually thereafter on the first day of
June and December.
After Payment
Interest
Mandatory
Payment
Remaining
Rate
Call Amounts
Dates
Principal
3.000%
$226,084
2022
$2,773,916
3.000%
$224,912
2023
$2,549,004
3.000%
$223,741
2024
$2,325,263
3.000%
$222,569
2025
$2,102,694
3.000%
$222,569
2026
$1,880,125
3.000%*
$193,284
2027
$1,686,841
3.000%*
$169,856
2028
$1,516,985
3.000%*
$173,370
2029
$1,343,615
3.000%*
$176,884
2030
$1,166,731
3.000%*
$181,570
2031
$ 985,161
3.000%*
$186,255
2032
$ 798,906
3.000%*
$190,941
2033
$ 607,965
3.000%*
$196,798
2034
$ 411,167
3.000%*
$202,655
2035
$ 208,512
3.000%*
$208,512
2036
$ -0-
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Year
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve Rates
are commonly referred to as "Constant Maturity Treasury" rates, or
CMTs. These market yields are calculated from composites of
quotations obtained by the Federal Reserve Bank of New York.)
Interest will be payable December 1, 2016, and semiannually thereafter on the first day of
June and December.
The Note is subject to redemption in whole or in part at par on June 1, 2026, June 1,
2029, June 1, 2032 and June 1, 2035.
The Bank acknowledges that concurrent with the sale of the Note, it will sell an
additional Note to MidWestOne Bank in the principal amount of $9,805,000 which Note shall
rank on parity with the Note.
The City agrees that it will not enter into any agreement, nor issue any additional
obligations, pledging the net revenue of the Urban Renewal Area unless it has first obtained a
certificate from an independent financial advisor or certified public accountant finding that the
net revenues of the Urban Renewal Area are sufficient to cover 125% of principal and interest on
both, all outstanding obligations, including the Note, to which the net revenues have been
pledged, and the new proposed obligation.
The Bank hereby agrees to perform under the terms of this Agreement, and to purchase
the Note from the City on the Dated Date, or such other date as shall be agreed to in writing, at a
price of $3,000,000 upon delivery of the Note to the Purchaser together with an opinion
approving and certifying the legality of the Note by the firm of Ahlers & Cooney, P.C.,
Attorneys, Des Moines, Iowa.
The Bank hereby represents, certifies and agrees as follows:
1. The business of the Bank is banking. As an institutional investor, the Bank has
sufficient knowledge and experience in financial and business matters, including the purchase
and ownership of limited security municipal obligations, to be able to evaluate the risks and
merits of the investment represented by its purchase of the Note. The Bank has not relied upon
the City or its officers, Council members, employees, City s financial advisor, attorneys or agents
as to the accuracy or completeness of any such information. As a sophisticated investor the Bank
has made its decision to purchase the Note based solely upon such information, inquiry and
analysis. The Bank is able to bear the economic risks represented by its purchase of the Note.
2. Neither the City nor its officers, Council members, employees, attorneys, City's
financial advisor or agents has made any representation or warranty concerning the future
financial position of the Urban Renewal Area, or future business conditions in the Urban
Renewal Area; the likelihood that tax increments collected by the City pursuant to Iowa Code
Section 403.19 from the Urban Renewal Area will be sufficient to pay principal and interest on
the Note, nor have any of them represented or warranted the correctness of any materials
furnished to the Bank by any third party.
3. The Bank acknowledges it has, independently and without reliance upon the City,
its officers, Council members, employees, City's financial advisor, attorneys or agents, and based
on the financial statements and such other documents and information as it deems appropriate,
made its own credit analysis and decision to enter into this Agreement. The Bank also
acknowledges that it will, independently and without reliance upon the above parties and based
2
on such documents and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement.
4. The Bank understands that the Note is payable solely and only from the
incremental taxes collected by the City pursuant to Iowa Code Section 403.19 with respect to the
Urban Renewal Area. The Bank acknowledges that the sufficiency of said incremental taxes to
pay the Note will depend upon the continual levy and payment of taxes against properties in the
Urban Renewal Area by third parties, and may be affected by changes in the provisions of State
law governing the collection of taxes and the division of revenue under Iowa Code Section
403.19 for the Urban Renewal Area property tax classifications and valuations, financial
conditions for properties in the Urban Renewal Area, and other factors outside the control of the
City.
5. The Bank acknowledges that no offering statement, prospectus, offering circular
or other comprehensive offering statement containing material information with respect to the
City, the Urban Renewal Area or the Note, is being provided by the City and that, in due
diligence, the Bank has sought such advice as it has deemed necessary and have made its own
inquiry and analysis with respect to the City, the Note and the security therefor.
6. The Bank acknowledges that it obtained such independent legal and financial
information it deems adequate for a reasonable investor in making investment decisions from
knowledgeable individuals of its choosing concerning the City, the Urban Renewal Area and the
Note.
7. The Bank is acquiring the Note for its own account, or for resale to other
sophisticated investors. If the Bank sells or otherwise disposes any or all of the Note, it will
comply with all applicable state and federal laws, rules, regulations, including but not limited to
all required disclosure. The Bank agrees that should it sell or transfer all or any portion of the
Note, such sale or transfer shall be limited to Institutional Investors. Such sale or transfer will
not be made, and no transfer and registration will be completed, until an Investment Letter in the
form attached hereto as Exhibit A has been executed by such Institutional Investor, such letter is
furnished to the Registrar and the Transfer Agent for the Note, and the conditions of the
Investment Letter and this Agreement are satisfied.
8. The Bank understands that the Note (a) is not being registered under the Securities
Act of 1933 and is not being registered or otherwise qualified for sale under the laws of Iowa or
the 'Blue Sky" laws and regulations of any other state, (b) will not be listed on any stock or other
securities exchange, (c) will carry no rating from any rating service, and (d) will not be readily
marketable. No opinion relating to the registration of the Note will be issued by or on behalf of
the City. The Bank agrees not to offer, sell or transfer the Note or make any change in
registration of the Note without having first determined that the sale or transaction which
necessitates or prompts the transfer to change of registration may be made without violating the
Iowa Uniform Securities Act or any other applicable law, rule or regulation.
9. The Bank acknowledges this transaction is exempt from SEC Rule 15c2-12
because the Bank is a sophisticated investor, any transfer is restricted to other sophisticated
investors, and the Note will be in one or more denominations of $100,000 or more.
Dated this 23rd day of August , 2016.
FIRST NATIONAL BANK, AMES, IOWA
Ames, Iowa
Lo
Accepted on behalf of the City Council, City of Iowa City, Iowa.
By: —
KinAsley Botchway Mayor Pro Tem
ATTEST:
A"4el2u2 k�4�
Manhn Karr, City Clerk
(SEAL)
01265995-1\10714-120
Exhibit "A"
(Form of Investment Letter)
Ahlers & Cooney, P.C. City of Iowa City, Iowa
100 Court Avenue, Suite 600 410 E. Washington Street
Des Moines, IA 50309 Iowa City, Iowa 52240
RE: Iowa City, Iowa - $3,000,000 Taxable Urban Renewal Revenue Capital
Loan Note, Series 2016E
Ladies and Gentlemen:
This letter is to provide you with certain representations and agreements with respect to our
participation in the purchase of the $3,000,000 Taxable Urban Renewal Revenue Capital Loan
Note, Series 2016E, in the aggregate principal amount of $3,000,000 referred to above (the
ANote"), dated September 15, 2016, issued by the City of Iowa City, Iowa (the AIssuer®).
The business of the undersigned is banking. As an Institutional Investor, as hereinafter
defined, the bank has sufficient knowledge and experience in financial and business matters,
including the purchase and ownership of municipal obligations, to be able to evaluate the risks and
merits of the investment represented by its purchase of the Note. It is able to bear the economic
risks represented by its purchase of the Note.
The bank has made inquiry and analysis with respect to the Issuer and other material
factors affecting the credit of the Issuer and the likelihood of the payment of the Note. It
acknowledges that it has been furnished with copies of all legal documents pertaining to this issue.
It further acknowledges that it has been offered access to all information relating to the financial
data and business of the Issuer, as well as such other information as the undersigned deems
necessary or appropriate as a prudent and knowledgeable investor in evaluating the purchase of the
Note.
Neither the Issuer nor its officers, Council members, or employees or agents has made any
representation or warranty concerning the financial position or business condition of the Issuer,
nor have any of them represented or warranted the correctness of any offering materials furnished
by the Issuer in connection with its purchase of the Note. The bank has not relied upon the Issuer
or its officers, Council members, or employees or agents as to the accuracy or completeness of
such information. As a sophisticated investor, the bank has made its decision to purchase the
Note based solely upon such information and its own inquiry and analysis.
The bank is familiar with the federal and state (including, but not limited to the state of
Iowa) legislation, rules, regulations, and case law pertaining to the transfer and distribution of
securities, including, but not limited to, disclosure obligations of the seller incident to any such
transfer or distribution. It acknowledges that the Note have not been registered under the
City of Iowa City, Iowa
$3,000,000 Taxable Urban Renewal Revenue Capital
Loan Note, Series 2016E
Page 2
securities laws of the United States or any state thereof, and hereby covenants and agrees that it
will not sell, offer for sale, pledge, transfer, convey, hypothecate, mortgage, or dispose of the Note
or any interest therein in violation of applicable federal or state law.
The bank represents it is purchasing the Note for its own account (or related subsidiary or
affiliate corporation) for Investment (and not on behalf of another) and has no present intention of
reselling the Note or dividing its interest therein, either currently or after passage of a fixed or
determinable period of time or upon the occurrence or nonoccurrence of any predetermined event
or circumstance; but the undersigned reserves the right to sell, offer for sale, pledge, transfer,
convey, hypothecate, mortgage, or dispose of the Note at some future date determined by it,
subject to the provisions of the Note Purchase Agreement which is attached hereto and
incorporated herein by reference. It has not and will not pay any commission, compensation, or
fee to any person or entity in connection with its purchase of the Note and it is not aware of, and is
not purchasing the Note pursuant to, any form of general solicitation or advertising with respect to
the Note.
The bank agrees that it will not furnish to any third person information furnished to it by or
on behalf of the Issuer and designated as confidential except as permitted and provided in the Note.
This letter shall be binding upon the undersigned and its successors and assigns.
Very Truly Yours,
01266015-1\10714-120
r s
CITY OF IOWA CITY
5z'mwMEMORANDUM
Date: August 10, 2016
To: Geoff Fruin, City Manager
From: Dennis Bockenstedt, Director of Finance
Re: TIF Revenue Bonds — Chauncey Building
Introduction
On June 8, 2015, the City Council approved a development agreement for the private
redevelopment of the northeast corner of the College and Gilbert Street intersection. The
development agreement was for the construction of a $49 million, 15 -story mixed use building,
known as the Chauncey Building, that included Class A office space, condominiums, a hotel, a
bowling alley, two movie theatres, public housing, and other site improvements. Also approved
on June 8, 2015 was a resolution to institute proceedings for the issuance of tax increment
revenue bonds of not to exceed $14.2 million for the purpose of funding a grant to facilitate the
construction of the Chauncey Building.
As per the approved development agreement, the City's contribution to the project is
$14,187,250. Of this amount, $2,090,000 is expected to be financed through the sale of City
owned property and easements at the corner of the College and Gilbert Street intersection. The
remaining balance of $12,097,250 will be financed through the issuance of tax increment
revenue bonds. The City has negotiated a $12,805,000, 20 -year tax increment revenue bond
agreement with Midwest One Bank and First National Bank, Ames, Iowa for the purpose of
financing the grant to construct the Chauncey Building. (The difference between the bond
amount and the grant amount is $707,750; these funds will pay for the cost of issuing the bonds
and the interest payments during construction.)
Discussion of Solution
The financing structure for the Chauncey is tax increment revenues bonds. Tax increment
revenue bonds are more complex that the City's typical general obligation bond sale; this bond
structure is not pledged by the City's full -faith -and -credit but is instead pledged by the tax
increment revenues from the City -University TIF District. In addition, this project has a long
construction period. Due to this bond structure type, coupled with the long construction period,
the interest cost is higher and the disclosure requirements are more complicated.
At the time the bond resolutions were approved, the financing plan for the Chauncey Building
was for the City to issue a 4 -year construction note that would be refunded by 25 -year tax
increment revenue bonds. Since the City Council approval of the bond resolutions, there has
been a downward shift in long-term municipal bond rates. In addition, we have shifted our
financing strategy for this particular bond issue from a competitive sale to a private placement
sale. A private placement sale provides the City some relief from the legal and financial
burdens of a competitive sale. Some advantages of a private placement over a competitive sale
include 1) no debt reserve requirement, 2) no Moody's bond rating or expense, 3) no expense
for an underwriter's discount or fee, and 4) no annual bond disclosure requirements or official
statement disclosures. The primary disadvantage of a private placement is that the bond's
interest rates are negotiated versus competitively bid.
The new proposed bond structure is a 20 -year tax increment revenue bond that will be privately
placed with Midwest One Bank and First National Bank, Ames, Iowa. The proposed bond issue
will have a fixed rate for the first ten years. After ten years, the interest rate resets for the
remaining life of the bonds. Overall, the newly proposed structure provides the City with shorter
term debt, a very attractive interest rate, and fewer regulatory burdens.
Financial Impact
The proposed bond issue for the Chauncey Building is a 20 -year, taxable, tax increment
revenue bond of $12,805,000. Midwest One Bank will being loaning $9,805,000 of the bond
and First National Bank, Ames, Iowa will be loaning $3,000,000 of the bond. The bond will bear
an interest rate of 3.00% for the first 10 years, and on June 1, 2016, the rate of the bonds will
reset at the rate of the 10 -year U.S. Treasury plus 1.65%. The reset rate based on current
interest rates would be 3.23%; however, the highest reset rate allowed under this agreement
would be 6.00%. At the time of the reset, the City has the option of refinancing the bonds. The
estimated cost of the debt service over the next 20 years ranges from $16,774,193 to
$18,028,172 depending on the reset rate. The original estimated cost of the debt service for the
City's grant was $23,556,067. This debt service cost will be fully funded from the tax increment
revenues generated by the Chauncey Building.
The developer of the Chauncey Building has agreed to a minimum assessment agreement that
is expected to generate sufficient tax increment financing receipts to the City to repay the entire
financing cost of the bonded debt. The Chauncey Building will have a partial minimum
assessment of $16,345,771 in fiscal year 2021 which is expected to generate TIF revenue of
$500,346. Starting in fiscal year 2022, the Chauncey Building will have a full minimum
assessment of $30,128,234 which is expected to generate annual TIF revenues of $922,229.
Under the proposed bond financing, the estimated payback period ranges from 18.95 years to
20.31 years. The original estimated payback period was 26 years. The estimated debt service
schedules are attached.
Recommendation
The proposed authorizing resolution is for the issuance of a 20 -year, taxable, tax increment
revenue bond to be privately placed with Midwest One Bank and First National Bank, Ames,
Iowa for the purpose of providing a construction grant for the Chauncey Building. A minimum
assessment agreement has been executed with the building's developer to recover the entire
cost of the bond financing from the tax increment revenues generated by the Chauncey
Building. By approving the authorizing bond resolution presented, the City Council enters into
an agreement with Midwest One Bank for the issuance of $9,805,000 tax increment revenue
bonds and with First National Bank, Ames, Iowa for the issuance of $3,000,000 tax increment
revenue bonds.
F Uhe Mcro,�
NET DEBT SERVICE
City of Iowa City, Iowa
Taxable Urban Renewal Revenue Capital Loan Notes, Series 2016E
Assumes Reset at Current 10 -Yr CMT Rate
Period
Ending
Total
Debt Service
General
Fund
Capitalized
Interest Fund
Project Fund
Net
Debt Service
06/01/2017
273,173.33
-100,887.11
273,173.33
100,887.11
06/01/2018
384,150.00
-106,404.37
384,150.00
106,404.37
06/01/2019
384,150.00
207,291.48
59,113.55
117,744.97
06/01/2020
384,150.00
11,822.71
372,327.29
06/01/2021
384,150.00
384,150.00
06/01/2022
1,349,150.00
1,349,150.00
06/01/2023
1,315,200.00
1,315,200.00
06/01/2024
1,281,400.00
1,281,400.00
06/01/2025
1,247,750.00
1,247,750.00
06/01/2026
1,219,250.00
1,219,250.00
06/01/2027
1,084,207.50
1,084,207.50
06/01/2028
957,560.00
957,560.00
06/01/2029
949,142.50
949,142.50
06/01/2030
940,240.50
940,240.50
06/01/2031
935,854.00
935,854.00
06/01/2032
930,821.50
930,821.50
06/01/2033
925,143.00
925,143.00
06/01/2034
923,818.50
923,818.50
06/01/2035
921,686.50
921,686.50
06/01/2036
918,747.00
918,747.00
17,709,744.33
0.00
657,323.33
278,227.74
16,774,193.26
Aug 1, 2016 5:00 pm Prepared by Public Financial Management, Inc. Page 6
The PFM Group
NET DEBT SERVICE
City of Iowa City, Iowa
Taxable Urban Renewal Revenue Capital Loan Notes, Series 2016E
Assumes Max Reset Rate
Period
Ending
Total
Debt Service
General
Fund
Capitalized
Interest Fund
Project Fund
Net
Debt Service
06/01/2017
273,173.33
-100,887.11
273,173.33
100,887.11
06/01/2018
384,150.00
-106,404.37
384,150.00
106,404.37
06/01/2019
384,150.00
207,291.48
59,113.55
117,744.97
06/01/2020
384,150.00
11,822.71
372,327.29
06/01/2021
384,150.00
384,150.00
06/01/2022
1,349,150.00
1,349,150.00
06/01/2023
1,315,200.00
1,315,200.00
06/01/2024
1,281,400.00
1,281,400.00
06/01/2025
1,247,750.00
1,247,750.00
06/01/2026
1,219,250.00
1,219,250.00
06/01/2027
1,306,500.00
1,306,500.00
06/01/2028
1,157,000.00
1,157,000.00
06/01/2029
1,128,500.00
1,128,500.00
06/01/2030
1,099,100.00
1,099,100.00
06/01/2031
1,073,800.00
1,073,800.00
06/01/2032
1,047,300.00
1,047,300.00
06/01/2033
1,019,600.00
1,019,600.00
06/01/2034
995,700.00
995,700.00
06/01/2035
970,300.00
970,300.00
06/01/2036
943,400.00
943,400.00
18,963,723.33
0.00
657,323.33
278,227.74
18,028,172.26
Aug 1, 2016 2:39 pm Prepared by Public Financial Management, Inc. Page 6
I
Council Member introduced the following Resolution entitled
"A RESOLUTION APPROVING AND AUTHORIZING LOAN AGREEMENTS AND
AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SECURINGITHE
PAYMENT OF $12,805,000 TAXABLE URBAN RENEWAL REVENUE CAAITAL LOAN
NOTES, SERIES 2016E, OF THE CITY IOWA CITY, STATE OF IOWA, UNDER THE
PROVISIONS OF THE CITY CODE OF OWA, AND PROVIDING FOR A IIETHOD OF
PAYMENT OF THE NOTES", and mov its adoption. Council Member 1/m/
seconded the mo 'on to adopt. The roll was called d the vote was:
AYES:
NAYS:
Whereupon the Mayor declared the
A RESOLUTION APPROVING
AGREEMENTS AND AUTHO IN
THE ISSUANCE AND SEC G TB
$12,805,000 TAXABLE AN RENI
CAPITAL LOAN NOTES. ERIES 201
IOWA CITY, STATE OF OWA, U
THE CITY CODE OF I WA, AND
METHOD OF PA NT OF THE
WHEREAS, the City
referred to as "Issuer", did he
passed and approved October
amended. Said plan, as amen
accordance therewith and tJ
herein; and
duly adopted:
.UTHORIZING LOAN
AND PROVIDING FOR
PAYMENT OF
AL REVENUE
OF THE CITY OF
i THE PROVISIONS OF
DING FOR A
ij�bil of the City of Iowa C
ore adopt an urban renew
1969 for the City-Universi
1, authorizes the undertaking
x 403 of the Code of Iowa, i
Iowa, sometimes hereinafter
plan by Resolution No. 2157,
Project I Urban Renewal Plan, as
iiVf urban renewal projects in
luding the Project outlined
WHEREAS, the ity did, on December 11, 2001, adopt dinance No. 01-3391 under
which the taxes levied n the taxable property in the Urban Rene al Area shall be divided, and
a special fund created der the authority of Section 403.19(2) of a Code of Iowa, as amended,
(which special fund hereinafter referred to as the "Urban Renew T
' ax Revenue Fund" or the
"Revenue Fund") v#ch fund is created in order to pay the principal ;of and interest on loans,
monies advanced or indebtedness whether funded, refunded, assumed, or otherwise, including
bonds issued und# the authority of Section 403.9 of the Code of Iowa, as amended, incurred by
the City to e or refinance in whole or in part authorized urban renewal projects in the City-
-2-
University Project I Urban Renewal Plan Urban Renewal Area ( the "Urban Renewal Area"), and
pursuant to which Ordinances such Revenue Fund may be irrevocably pledged by the City for
the payment of principal and interest on such indebtedness; and
WHEREAS, the cost of carrying out the purposes and provisions of the Project, the
purposes set forth in Section 3 hereof is $12,805,000 provision must now be made by the
City to provide for the payment of such costs pays a solely and only from incremental taxes
under Iowa Code Section 403.19 produced by the ity-University Project I Urban Renewal Plan;
and
WHEREAS, pursuant to the provisions of wa Code Chapter 403, bonds issued under
said Chapter are not subject to any other law rel
a ' to the authorization>ssuance or sale, and
are declared to be issued for an essential public p ose; and
WHEREAS, the notice of intention of the Ci to take action fo the issuance of bonds
pursuant to Iowa Code Section 403.9 was duly publi ed on June 1, 2 15 a hearing was held on
June 8, 2015, and the City Council took additional ac 'on for the sal and issuance of not to
exceed $14,200,000 Urban Renewal Tax Increment R venue Bond , and
WHEREAS, Iowa Code Section 403.17(3) defies `Bons" as used in Chapter 403 to
include "notes" and "other obligations'; and
WHEREAS, Iowa Code Section 403.9(4) provides t�fit bonds sold under Iowa Code
Section 403.9 may be sold at public or private sale; and I /
WHEREAS, the City has obtained proposals for a private sale of Taxable Urban
Renewal Revenue Capital Loan Notes, pursuant to Io de Chapter 403.9 and has determined
necessary and advisable that the notes be issued in th am unt of $12,805,000 in accordance
with the terms of this Resolution; and
WHEREAS, it is now necessary and ad able that trovisions be made for the issuance
of Notes in the amount of $12,805,000 Taxable,4Jrban Ren al Revenue Capital Loan Notes,
Series 2016E, pursuant to the provisions of Section 403.9 othe Code of Iowa, payable solely
from Net Revenues of the Urban Renewal Area.
NOW, THEREFORE, BE IT RESOLVED BY THE gITY COUNCIL OF THE CITY
OF IOWA CITY, IN THE COUNTY OF JOHNSON, STATI�OF IOWA:
I
Section 1. Definitions. The following terms shall have'the following meanings in this
Resolution unless the text expressly,Or by necessary implication requires otherwise:
• "Additional Obligations" shall mean any urban renewal revenue notes or bonds
issued on a parity with t$e Notes in accordance with the provisions of this Resolution.
-3-
• "Clerk" shall mean the City Clerk, or such other officer of the successor
Governing Body as shall be charged with substantially the same duties and
responsibilities.
• "Fiscal Year" shall mean the twelve-month period beginning on July 1 of each
year and ending on the last day of June of the following year, or any other consecutive
twelve-month period adopted by the Governing Body or by law as the official accounting
period of the Urban Renewal Area. Requirements of a Fiscal Year as expressed in this
Resolution shall exclude any payment of principal or interest falling due on the first day
of the Fiscal Year and include any payment of principal or interest falling due on the fust
day of the succeeding Fiscal Year. /
"Governing Body" shall m the City Council of the City,its successor in
function with respect to the operation od control of the Urban R ewal Area.
• "Independent Auditor" shall m an independent of Certified Public
Accountants or the Auditor of State.
• "Issuer" and "City" shall mean City of Iowa' rty, State of Iowa.
• "Loan Agreements" shall mean th Loan A ements between the Issuer the
Original Purchasers, respectively, in subst tially a form attached to and approved by
this Resolution.
• "Net Revenues" of the Urban Ren
the Tax Increment Revenues available as
Urban Renewal Area.
• "Notes" shall mean $12,805,000 a
Notes, Series 2016E, authorized tc be , sue
separate Notes in the amount of $9,8 ,00(
• "Ordinance" shall mean inance
• "Original Purchasers" s I mean N
First National Bank, Ames, Io a of Ames,
or Urban Renewal Area shall mean
I from or held in connection with the
Urban Renewal Revenue Capital Loan
this Resolution, to be issued as two
$3,000,000 respectively.
No. p1-3991, as amended, of the City.
Bank of Iowa City, Iowa and
• "Outstanding Obli ions" shall mean the Taxable Urban Renewal Revenue
Bonds, Series 2012D, dat November 29, 2012, p of which obligation id still
outstanding and unpaid remain alien on the N Revenues of the Urban Renewal
Area.
• "Parity Oblig ' ns" shall mean urban renew revenue notes, bonds or other
obligations payable o ely from the Net Revenues of Urban Renewal Area on an equal
basis with the Not erein authorized to be issued, an hall include the Outstanding
-4-
Obligations and Additional Obligations as authorized to be issued under the terms of this
Resolution.
• "Paying Agent" shall mean the City Controller of , or such successor as may be
approved by Issuer as provided herein and who shall carry out the duties prescribed
herein as Issuer's agent to provide for the payment of principal of and interest on tete
Notes as the same shall become due. /
"Permitted Investments"
■ direct obligations (
form on the books of) the
America;
■ obligations of any
represent full faith and a
icluding obligations issued or held . book entry
)artment of the Treasury of the U ted States of
ie following federal agenci which obligations
of the United States of erica, including:
— Export -Impo
Bank
— Farm Credit S
tem Financial
— USDA Rural
velopment
— General Servi
Administrati
— U.S. Maritime AI
— Small Business E
— Government Nat
— U.S. Department
— Federal Housing
■ reloan agreements
set out above if the Issuer
through an authorized cus
reloan agreements;
■ senior debt c
(S&P) or "Aaa" by
Federal National M
Corporation;
■ U.S. dollar
acceptances
term certific
"P -l" by M(
(ratings on I
■ co
highest c
not more
Corporation
age Association (GNMA)
& Urban Development (FHA's)
ng collateral consists of the investments
of the collateral either directly or
L agreements do not include reverse
os rated " " by Standard & Poor's Corporation
Investors ervice Inc. (Moody's) issued by the
Association r the Federal Home Loan Mortgage
6enominated deposit a ants, federal funds and banker's
lomestic commercial b s which have a rating on their short-
Fdeposit on the date of p chase of "A-1" or "A-1+" by S&P or
and maturing no more Ylt 360 days after the date of purchase
companies are not consid ed as the rating of the bank);
paper which is rated at the a of purchase in the single
on, "A-1+" by S&P or "P-1" Moody's and which matures
270 days after the date
-5-
■ investments in a money market fund rated "AAAm" or "AAAm-G" or
better by S&P, or "AAA" or "AA" by Moody's Investors Services, Inc.;
■ pre -refunded municipal obligations, defined as any bonds or other
obligations of any state of the United States of America or of any agency,
instrumentality or local governmental unit of any such statewhic are not
callable at the option of the obligor prior to maturity or as to w ch irrevocable
instructions have been given b e obligor to call on the date ecified in the
notice; and (a) which are ratA based on an irrevocable esc w account or fund
(the "escrow"), in the high t rating category of S&P or ody s or any
successors thereto; or (b)(i),,
and redemption premium, t
obligations of the Departmel
which escrow may be applie
interest and redemption I
the maturity date or dates thi
pursuant to such irrevocable
hich are fully secured as t principal and interest
any, by an escrow
t of the Treasury i
only to the payor
ri m, if any, on su
.r f or the soecifi
nsis g only of cash or direct
:h nited States of America,
f such principal of and
bonds or other obligations on
redemption date or dates
)priate; and (ii) which escrow is
sufficient, as verified bya natio Uy recd 'zed independent certified public
accountant, to pay principal of aninter t and redemption premium, if any, on
the bonds or other obligations des 'b in this paragraph on the maturity date or
dates specified in the irrevocable in ctions referred to above, as appropriate;
■ tax exempt bonds as defin d permitted by section 148 of the Internal
Revenue Code and applicable la ons and only if rated within the two highest
classifications as established b at I t one of the standard rating services
approved by the superintend t of b ng by rule adopted pursuant to chapter
17A Code of Iowa;
■ an investment co ct rated wi ' the two highest classifications as
established by at least a of the stan rating services approved by the
superintendent of b ing by rule adopt pursuant to chapter 17A Code of
Iowa; and
Iowa PubliA Agency Investment
• "Project Fund" all mean the fund required o be established by this Resolution
for the deposit of the ceeds of the Notes.
• "Registrar" all mean the City Controller of I wa City, lows, or such successor
as may be approv by Issuer as provided herein and o shall carry out the duties
prescribed herein ith respect to maintaining a register f the owners of the Notes.
Unless otherwis specified, the Registrar shall also act Transfer Agent for the Notes.
shall mean this resolution
the issuance of the Notes.
• "Revenue Fund" shall mean the special fund Under Iowa Code Section 403.19
into which all Tax Increment Revenues of the Urban Renewal Area shall be deposited.
• "Tax Increment Revenues" shall mean the revenues received into the special tax
fund created by the Ordinance and authorized by Section 403.19(2) of the Code of Iowa
derived from the Urban Renewal Area.
• "Treasurer" shall mean the Finance Director of the City of Iowa City, Iowa, or
such other officer as shall succeed the same duties and responsibilities with respect to
the recording and payment of the N�tes issued hereunder. I
• "Yield Restricted" shall m required to be invested ata ell that is not
materially higher than the yield on a Notes under section 148 ) of the Internal
Revenue Code or regulations issued ereunder.
Section 2. Authority.The Loan A cements and the No authorized by this Resolution
shall be issued pursuant to Section 403.9, o e City Code of wa, and in compliance with all
applicable provisions of the Constitution an laws of the Sta of Iowa. The Loan Agreements
shall be substantially in the form attached to 's Resoluti and is authorized to be executed and
issued on behalf of the Issuer by the Mayor attested y the City Clerk. In any suit, action or
proceeding involving the validity or enforceab ity of a Notes or the security therefor, the
Notes shall be conclusively deemed to have b is ed for such purpose and such project shall
be conclusively deemed to have been planned, l ted and carried out in accordance with the
provisions of Iowa Code Chapter 403.
Section 3. Authorization and P o . '
negotiable, two Revenue Notes of the Ci of Iowa i
in the amounts of 59,805,000 and $3,00 ,000, for th
planning, undertaking, and carrying o of an urban
property, including one or more gr s to a redevele
with the construction of Class A o ce space, workI
movie theatre at the northeast co er of College and
are hereby authorized to be issued,
ty, in the County of Johnson, State of Iowa,
urpose of paying costs of aiding in the
ewal project for the redevelopment of real
The Chauncey, L.L.C., in connection
ce ousing, a hotel, a bowling alley and
nlb Streets.
Section 4. Soe of ent. Nothing in this Res ution shall be construed to impair
the rights vested in th'T ding Obligations. The amounts herein required to be paid into the
various funds named in Resolution shall be inclusive of payments required in respect to the
Outstanding Obligations The provisions of the resolution or resolutions referred to in Section 1
of this Resolution and a provisions of this Resolution are to be construed wherever possible so
that the same will not a in conflict. In the event such construction is not possible, the provisions
of the resolution adopted shall prevail until such time as the Obligations authorized by the
earlier resolution ve been paid in full or otherwise satisfied as therein provided at which time
the provisions of 's Resolution shall again prevail. The Notes herein authorized and Parity
Notes and Pari Obligations and the interest thereon shall be payable solely and only out of the
net earnings o the Urban Renewal Area and shall be a first lien on the future Net Revenues of
the Urban R ewal Area. The Notes shall not be general obligations of the Issuer nor shall they
be payable " any manner by taxation and the Issuer shall be in no manner liable by reason of the
-7-
failure of the net revenues to be sufficient for the payment of the Notes. The Notes are hereby
declared to be issued for essential public and governmental purposes for a qualified urban
renewal project.
Section 5. Note Details. Taxable Urban Renewal Revenue Capital Loan Notes, Series
2016E, of the City in the amount of $9,805,000 and $3,000,000 respectively, shall be issued to
evidence the obligations of the Issuer under Loan Agreements pursuant to the provisions of
Section 403.9 of the City Code of Iowa for the aforesaid purpose. The Notes shall be designated
"TAXABLE URBAN RENEWA REVENUE CAPITAL LOAN NOTES, SERIES 2016E", be
dated September 15, 2016, and b ar interest from the date thereof, until pa ent thereof, at the
office of the Paying Agent such terest payable on December 1, 2016, d semiannually
thereafter on the 1 st day of June abd December in each year until mato ' at the rates hereinafter
provided.
The Notes shall be executed
attested by the manual or facsimile
seal of the City and shall be fully re
Resolution; principal, interest and p
Agent by mailing of a check to the i
denomination of $9,805,000 and $3
Two Notes will be issued and
follows:
Note No. 1 (MidWestOne Bank,
Interest
Rate
the manual or facsimile si afore of the Mayor and
tature of the City Clerk d impressed or printed with the
Bred as to both princi and interest as provided in this
=owner
any, shall be a)able at the office of the Paying
�[ered owner of th ote. The Notes shall be in the
3.000%
$7 8,916
3.000%
35,088
3.000%731,259
$7,599,737
3.000%
$727,431
3.000%
$727,431
3.000%*
$631,716
3.000%*
$555,144
3.000%*
$566,630
3.000°/"*
$578,116
3.000%*
$593,430
3.000%*
$608,745
3.000%*
$624,059
3.000%*
$643,202
3.000%*
$662,345
3.000%*
$681,488
1, 2036 and will be payable as
the amount of $9,805,000
After Payment
Payment Remaining
Dates Principal
2022
$9,066,084
2023
$8,330,996
2024
$7,599,737
2025
$6,872,306
2026
$6,144,875
2027
$5,513,159
2028
$4,958,015
2029
$4,391,385
2030
$3,813,269
2031
$3,219,839
2032
$2,611,094
2033
$1,987,035
8034 $1,343,833
2035 $ 681,488
2 6 $ -0-
*The Interest Rate on the Note will be adjusted on June 1, 2026, at
which time the unpaid principal from 2027 through 2036 shall
commence to bear interest at a rate per annum equal to the 10 Y
Treasury Yield Curve Rate plus 1.65% for June 1, 2026, as
reported on said date at www.ustreas.gov. (Treasury Curve tes
are commonly referred to as "Constant Maturity Treasury" r es, or
CMTs. These market yields are calculated from composit of
quotations obtained );y the Federal Reserve Bank of New ork.)
Note No. 2 (First National
Interest
Rate
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
*The Interest
which time tl
commence
Treasury
reported
are co
CMTs.
Ames, Iowa, Purchaser) in the)(mount of $3,000,000
$224,91%
$223,741
$222,569
$222,569
$193,284
$169,856
$173,370
$176,884
$181,570
$186,2
$196, 8
$190,9
12
fate on the Note will b)
unpaid principal from
ear interest at a rate ve
After Payment
Remaining
Principal
2022
$2,773,916
2023
$2,549,004
2024
$2,325,263
2025
$2,102,694
2026
$1,880,125
2027
$1,686,841
2028
$1,516,985
2029
$1,343,615
2030
$1,166,731
2031
$ 985,161
2032
$ 798,906
2033
$ 607,965
2034
$ 411,167
2035
$ 208,512
2036
$ -0-
adjusted on June 1, 2026, at
!027 through 2036 shall
Y old Curve Rate plus 1.65%
said date at www.ustreas.Q
only referred to as "Constant
ese market yields are calcul
obtained by the Federal Res
um equal to the 10 Year
June 1, 2026, as
(Treasury Curve Rates
ftuity Treasury" rates, or
from composites of
Bank of New York.)
Section 6. ftedemption. Each Note is subject to re
June 1, 2026, Jun 1, 2029, June 1, 2032 and June 1, 2035
i9D
:ion in whole or in part at par on
any funds regardless of source.
Thirty days' written notice of redemption shall be given to the registered owner of the
Note. Failure to give such notice to any registered owner of the Notes or any defect therein shall
not affect the validity of any proceedings for the redemption of the Notes. All Notes or portions
thereof called for redemption will cease to bear interest after the specified redemption date,
provided funds for their redemption are on deposit at the place of payment.
Section 7.
(a) Registration. The ownership of Notes may be transferred only by a making of
an entry upon the bo ks kept for the registration and transfer of ownersbi of the Notes,
and in no other way. e City Controller is hereby appointed as Note R gistrar under the
terms of this Resolutio . Registrar shall maintain the books of the Iss er for the
registration of ownershi of the Notes for the payment of principal and interest on the
Notes as provided in this esolution. All Notes shall be negotiab as provided in Article
8 of the Uniform Commer 'al Code subject to the provisionsfo registration and transfer
contained in the Notes and r this Resolution.
(b) Transfer. The ownershV of any Note may be tra ferred only upon the
Registration Books kept for the gistration and transf of Notes and only upon
surrender thereof at the office of a Registrar
by the holder or his duly author iz attome
to the Registrar, along with the add' sand
identification number of such transfer a (or
multiple individuals, of all such trarisf
registered owner of a Note (other than g
broker or dealer in question) is that o a b
Registration Books the informatio pertaim
m
Upon the transfer of any such e, a new hq
denominations permitted by s Resolution v
unmatured and unredeem principal amount
and bearing interest at same rate and mato
delivered by the Regi r.
:t with an assignment duly executed
in such form as shall be satisfactory
security number or federal employer
istration is to be made in the name of
In the event that the address of the
:eyed owner which is the nominee of the
r or dealer, there must be disclosed on the
to the registered owner required above.
ly registered Note, of any denomination or
ggregate principal amount equal to the
such transferred fully registered Note,
riiV on the same date or dates shall be
(c) ReRe istrati�of Transferred Notes Transferred Notes. In all es of the transfer of the Notes, the
Registrar shallgister, at the earliest practicable ti , on the Registration Books, the
Notes, in ace dance with the provisions of this Resolution.
(d) ginegrship. As to any Note, the person in whosname the ownership of the same
shall b registered on the Registration Books of the Regi trar shall be deemed and
reg ed as the absolute owner thereof for all purposes, payment of or on account of
th rincipa] of any such Notes and the premium, if any, an interest thereon shall be
ade only to or upon the order of the registered owner thereof or his legal representative.
All such payments shall be valid and effectual to satisfy and discharge the liability upon
such Note, including the interest thereon, to the extent of the sum or sums so paid.
lulls
(e) Cancellation. All Notes which have been redeemed shall not be reissued but shall
be cancelled by the Registrar. All Notes which are cancelled by the Registrar shall be
destroyed and a Certificate of the destruction thereof shall be furnished promptly to the
Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the cancelled
Notes to the Issuer.
(f) Non -Presentment qf Notes.
of principal of or interest 64 th No
not presented for payment o p ' ci
sufficient to pay such principal o
the Paying Agent for the benefit o
owner thereof for such interest or
and be completely discharged, and
hold such funds, without liability f
Notes who shall thereafter be restri
whatever nature on his part under
or Notes. The Paying Agents Whig
equal to two years and six months f
became due, whether at maturity, o
otherwise, at which time the Paying
to the Issuer, whereupon any claim
or Notes of whatever nature shall b
In the event any payment check representing payment
Not is returned to the Paying Agent or if any note is
pal at the maturity or redemption date, if funds
r interest on Notes shall have been made available to
the owner thereof, all liability of the Issuer to the
yment of such Notes shall forthwith cease, terminate
ereupon it shall be the duty of the Paying Agent to
interest thereon, for the ben fit of the owner of such
ed exclusively to such fun s for any claim of
s Resolution o/ssuer. respect to, such interest
on to hold suall continue for a period
0 owing the dah such interest or principal
r a the date fixeption thereof, or
A ent, shall soy remaining funds so held
I
this Resohe Owners of such interest
e m upon the
(g) Registration and Transfer Fees. T
Issuer's expense, one note for each annual
additional Notes in lesser denominations
to an owner who so requests.
Section 8. Reissuance of Mutilated D o ed
outstanding Note shall become mutilated or b destroye
request of Registrar authenticate and deliver new Note
mutilated, destroyed, stolen or lost, in clAnge and sub;
Arar may furnish to each owner, at the
y. The Registrar shall furnish
less than the minimum denomination)
olen or Lost Notes. In case any
stolen or lost, the Issuer shall at the
Registrar, upon surrender of such m.0 Hal e, or in lie of
destroyed, stolen or lost, upon filing wi)6 the Registrar evid
Issuer that such Note has been Fewilth.
, stolen or lost and p
furnishing the Registrar and Isssatisfactory indemnit
reasonable regulations as the Isagent may prescribe
Issuer may incur in connection
e tenor and amount as the Note so
m for such mutilated Note to
and substitution for the Note
x satisfactory to the Registrar and
)of of ownership thereof, and upon
and complying with such other
Vr paying such expenses as the
Section 9. Record Dat . Payments of principal and int t,
redemption, made in respect f any Notes, shall be made to there 's
their designated Agent as t same appear on the books of the Regi
month preceding the pa t date. All such payments shall fully d
the Issuer in respect of s ch Notes to the extent of the payments so
shall only be made upo surrender of the Notes to the Paying Agent.
-11-
otherwise than upon full
ter ed holder thereof or to
trar on the 15th day of the
charge the obligations of
e. Payment of principal
Section 10. Execution. Authenticatioi
this Resolution, the Mayor and Clerk shall ex
shall authenticate the Notes and deliver the s
Note shall be valid or obligatory for any pu
hereunder unless the Registrar shall duly end
Authentication substantially in the form of th
any Note executed on behalf of the Issuer shs
authenticated has been duly issued under this
the benefits of this Resolution.
and Delivery of the Notes. Upon the
ute and deliver the Notes to the Regi
ie to or upon order of the Original Pu
e or shall be entitled to any right or
3e and execute on such Note a Ceq.
.
certificate herein set forth. Such el
be conclusive evidence that theNot(
Section 11. Right to Name Substitute Pa,
right to name a substitute, successor Registrar or
notice to each registered Noteholder.
-12-
and that the holder
option of
r, who
hasers. No
enefit
,ate of
ificate upon
so
s entitled to
ent or Registrar Issuer reserves the
Agent upon gKing prompt written
Section 12. Form of Note. Notes shall be printed in substantial compliance with
standards proposed by the American Standards Institute substantially in the form as follows:
(6 6
(1)
2) 3 4 0
(9)
a
(10)
(Contin/edon the back of is Note)
I1 12 13) (14) 15
FIGURE 1
Front
-13-
The text of the Notes to be located thereon at the item numbers shown shall be as
follows:
Item 1, figure 1=
Item 2, figure 1 =
Item 3, figure 1 =
Item 4, figure 1 =
Item 5, figure 1 =
Item 6, figure 1 =
Item 7, figure 1 =
Item 8, figure 1 =
"STATE OF IOWA"
"COUNTY OF JOHNSON"
"CITY OF IOWA CITY"
"TAXABLE URBAN RENEWAL REVENUE CAPITAL
AN NOTE"
"gFXIES 2016E"
FOR FEDERAL INCOME TAX PURPOSES
Rate:
Note DatN September 15, 2016
CUSIP No :
Note No.
Principal
Item 9, figure 1= The City of Io City, State of Iowa, a municipal corporation
organized and existing under and by virtue of t e Constitution and laws of the State of Iowa (the
"Issuer"), for value received, promises to pay fr the source and as hereinafter provided, on the
maturity date indicated above, to
Item 9A, figure 1 = (Registration panel te completed by Registrar or Printer with
name of Registered Owner).
Item 10, figure I = or regi
AMOUNT WRITTEN OUT) THOU
America, on the maturity date shown
office of the City Controller, Paying
sum from the date hereof until paid
1, 2016, and semiannually thereaft
Interest and principal
records of ownership mainta
payment date.
THE HOLDERS
TO FEDERAL INCOM]
This Note is
for the purpose of p
urban renewal proje
redeveloper, The Cl
sten assigns, principal sum of (PRINCIPAL
S DOLL in lawful money of the United States of
a ove, only upon resentation and surrender hereof at the
gent of this issue or its successor, with interest on such
the rate per ann specified above, payable on December
on the 1st day of Ju a and December in each year.
I be paid to the registered
by the Registrar as of the
THE NOTES SHOULD
s ed pursuant to the provisions of Secti
g costs of aiding in the planning, undi
for the redevelopment of real property,
mcey, L.L.C., in connection with the cc
-15-
er of the Note as shown on the
day of the month preceding the
THE INTEREST AS SUBJECT
403.9 of the City Code of Iowa,
�in.F, and carrying out of an
udmg one or more grants to a
ction of Class A office space,
workforce housing, a hotel, a bowling alley and movie theatre at the northeast comer of College
and Gilbert Streets, and in order to evidence the obligations of the Issuer under a certain Loan
Agreements dated September 15, 2016, in conformity to a Resolution of the City Council of the
City duly passed and approved. In any suit, action or proceeding involving the validity or
enforceability of the Notes or the security therefor, the Notes shall be conclusively+ deemed to
have been issued for such purpose and such project shall be conclusively deem 'to have been
planned, located and carried out m accordance with the provisions of Iowa Cod Chapter 403.
For a complete statement of the re nues and funds from which and the cond' ons under which
this Note is payable, a statement of t e conditions under which additional N res or Bonds of
equal standing may be issued, and the eneral covenants and provisionsp suant to which this
Note is issued, reference is made to the Lo
bove described an Agreeme and Resolution.
The Note is subject to redemption'n whole or in part at par o June 1, 2026, June 1,
2029, June 1, 2032 and June 1, 2035, from\bear
ds regardless of ource, in whole or from time
to time in part.
Thirty days' written notice of redemall be giv to the registered owner of the
Note. Failure to give such notice to any reowner the Notes or any defect therein shall
not affect the validity of any proceedings fdemp ' n of the Notes. All Notes or portions
thereof called for redemption will cease to eres fter the specified redemption date,
provided funds for their redemption are onat a place of payment.
Ownership of this Note may be tryezer,
purpose by the City Controller, the Regipresentation and surrender of this Note atogether with an assignment duly executthe form as shall be satisfactory to the RRegistrar and Paying Agent but shall, ho
r by transfer upon the books kept for such
nsfer on the books shall occur only upon
the Registrar as designated below,
-r hereof or his duly authorized attorney in
reserves the right to substitute the
t give notice to registered Noteholders of
such change. All Notes shall be negoti le as provided Article 8 of the Uniform Commercial
Code and subiect to the provisions fn gistration and fer contained in the Note Resolution.
This Note and the series of,*Mch it forms a part an any Additional Obligations which
may be hereafter issued and outs ding from time to time a parity with the Notes, as
provided in the Note Resolutio and Loan Agreements of w ich notice is hereby given and
which are hereby made a part ffereof, are payable from ands ured by a pledge of the Net
Revenues of the Urban Renewal Area, as defined and provide4 in the Resolution. This Note is
not payable in any manner by taxation and under no circumst
manner liable by reason of the failure of the Net Revenues to
hereof.
And it is hereKy represented and certified that all acts, conc
according to the laws and Constitution of the State of Iowa, to exis
be performed preg6dent to the lawful issue of this Note, have been
performed as required by law.
r`
-16-
shall the City be in any
Tiicient for the payment
ions and things requisite,
to be had, to be done, or to
�istent, had, done and
IN TESTIMONY WHEREOF, the City by its City Council has caused this Note to be
signed by the facsimile signature of its Mayor and attested by the facsimile signature of its Clerk,
with the seal of the City printed hereon, and authenticated by the facsimile signature of an
authorized representative of the Registrar, the City Controller, Iowa City, I wa.
Item 11, figure 1 NRe
e of Authentication:
Item 12, figure 1 s is one of the Notes described in the wi 'n mentioned
olution, as registered by the City Contrller
Registrar
LE
Item 13, figure 1 = Registrar kd Transfer Agent: City Controller
Paying AgVFOR-
City Controller
SEE REVIN DEFINITIONS
Item 14,figure 1 = (Seal)
Item 15, figure 1 = (SignatureCITY OF TE OF IOWA
U-1
ATTEST:
ffm
Item 17, figure 1 = (Ass ent Block)
(In rmation Required
-17-
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
(Social Security or Tax Identification No. ) the
within Note and does hereby irrevocably constitute and appoint
attorney in fact to transfer the s id Note on the books kept for registration of the within Note,
with full power of substitution ir�the premises.
Dated this
SIGNATURE
GUARANTEED
ul'Ot :►Y
The signature(s) to this Power must coi
the face of the Certificate(s) or Note(s)
enlargement or any change whatever.
accordance with the prevailing standan
Transfer Agent. Such standards and p
guaranteed by certain eligible gua o
recognized signature guarantee p
IZ1 •N55krItol2
Name of Transferee(s)
Address of Transferee(s)
Social Security or Tax Id
Number of Tran
Transferee is a(n):
Individual*
Partnership
2016.
Y
ld with the name(s) as written upon
ry particular without alteration or
ire guarantee must be provided in
procedures of the Registrar and
:es may require signature to be
utions that participate in a
Trust
OF TRANSFER
* If the Note is to hk registered in the names of multiple inlividual owners, the names of all
such owner7gh
one address and social security number ust be provided.
The followibreviations, when used in the inscription o� the face of this Note, shall
be construed as thowritten out in full according to applicable laws or regulations:
TEN COM -%s tenants in common
I"
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with rights of survivorship and not as tenants in common
IA UNIF TRANS MIN ACT - .......... Custodian ..........
(Cult) (Minor)
Under Iowa Uniform Transfers to Minors Act. .). .............
(State)
ADDITIONAL
Section 14. Equality of Lien. TI(
Notes and Parity Obligations shall be sec
Urban Renewal Area without priority by
revenues of the Urban Renewal Area are
both principal and interest as the same bt
Section 15.
applied as follows:
MAY ALSO BE
NOT IN THE ABOVE LIST
timely payment of principal ofAnd interest on the
red equally and ratably by th et Revenues of the
�ason of number or time of ale or delivery; and the
ceby irrevocably pled g to the timely payment of
o c due.
♦ An amount equal to accrued int
application to the first payment
♦ The balance of the proceeds shall
therefrom for the purposes of iss)
The Project Fund shall be invested i ccordan
Earnings on investments of the Project F shall be d p
Fund. Any amounts on hand in the Proj t Fund shall t
principal of or interest on the Notts at y time that oth
be insufficient to the purpose, in whi event such funds
the earliest opportunity. Any bal a on hand in the Pro
for its purposes may be invested t inconsistent with lir
Revenue Code and this Resoluti n.
Proceeds of the Notes shall be
be deposited in the Sinking Fund for
on the Notes.
to the Project Fund and expended
with Section 18 of this Resolution.
osited in and expended from the Project
available for the payment of the
r funds of the Urban Renewal Area shall
all be repaid to the Project Fund at
t Fund and not immediately required
provided by law, the Internal
Section 16. Debt Cert cation. It is hereby certified at subject to such limitations as
provided by in Section 403 9 of the Code of Iowa, the annu amount to be certified on or
before December 1 each y ar for collection in incremental tax pursuant to Section 403.19(2) of
the Code of Iowa, shall a not less than the maximum amount t forth in Section 5 of this
Resolution.
Section 17. lication of Revenues. The provisions in the Outstanding Obligations
heretofore adopt are hereby ratified and confirmed, and all such provisions inure to and
constitute the se rity for the payment of the principal and interest on Notes hereby authorized to
be issued; pro 'ded, however: a) that the amounts to be set aside and paid into the Sinking Fund
in equal mon installments from the earnings shall be sufficient to pay the principal and
-19-
interest due each year, not only on the Outstanding Obligations, but also the prindpal and
interest of the Notes herein authorized to be issued and to maintain a reserve the for, and b) the
Reserve Fund provided therein shall apply only to the Outstanding Obligation and shall not
secure the Notes.
Nothing in this Resoluti shall be construed to impair the rights 'ested in the
Outstanding Obligation. The am is herein required to be paid into a various funds named in
this Section shall be inclusive of pa ents required in respect to the utstanding Obligations.
The provisions of the legislation auth 'zing the Outstanding Obli tions and the provisions of
this Resolution are to be construed wh ever possible so that the ame will not be in conflict. In
the event such construction is not possib ,the provision s of a resolution first adopted shall
prevail until such time as the notes or bon authorized by s 'd resolution have been paid in full
or otherwise satisfied as therein provided at hich time th rovisions of this Resolutions shall
again prevail.
From and after the Outstanding Obligati
and after the delivery of any Notes, and as long
outstanding and unpaid either as to principal or
Obligations then outstanding shall have been di
this Resolution, the entire income and revenue
collected in a fund to be known as the Urban
shall be disbursed only as follows:
p4e been paid in full or defeased, and from
y of the Notes or Parity Obligations shall be
interest, or until all of the Notes and Parity
Md satisfied in the manner provided in
n Renewal Area shall be deposited as
evenue Fund (the "Revenue Fund"), and
(a) Sinking Fund. Money in a Revenue Fun shall next be disbursed to make
deposits into a separate d special fund to kay the principal and interest
requirements of the Fis al Year on the Note and Parity Obligations. The fund
shall be known as the rban Renewal Revere Note and Interest Sinking Fund
(the' Fund" .The required amount to a deposited in the Sinking Fund
in any month shall a the equal monthly amo necessary to pay in full the
installment of int est coming due on the next ' crest payment date on the then
outstanding Not and Parity Obligations, plus th equal monthly amount
necessary to �,Iing
in full the installment of princip coming due on such Notes on
the next succ principal payment date until th full amount of such
installment i on hand. If for any reason the amoun on hand in the Sinking Fund
exceeds the equired amount, the excess shall forth Rh be withdrawn and paid
into the R enue Fund. Money in the Sinking Fund s 11 be used solely for the
purpose o paying principal of and interest on the Not and Parity Obligations as
the saThall become due and payable.
(b) Subordinate Obligations. Money in the Revenue Fund m y next be used to pay
princi al of and interest on (including reasonable reserves herefor) any other
obligations which by their terms shall be payable from the enues of the Urban
Renewal Area, but subordinate to the Notes and Parity Ob1i tions.
(c) 51#plus Revenue. All money thereafter remaining in the Revenue Fund at the
clbse of each month may be deposited in any of the funds creator by this
-20-
Resolution, or may be used to pay or redeem the Notes or Parity Obligations, or
for any lawful purpose.
Money in the Revenue Fund shall be allotted and paid int the various funds and
accounts hereinbefore referred o in the order in which the funds a e listed, and if in any month
the money in the Revenue Fun hall be insufficient to deposit or sfer the required amount in
any of the funds or accounts, the eficiency shall be made up aft payments into all funds and
accounts enjoying a prior claim to he revenues shall have been et in full. The provisions of
this Section shall not be construed require the Issuer to main in separate bank accounts for
the funds created by this Section; ex t the Sinking Fund sha be maintained in a separate
account but may be invested in conj tion with other funds f the City but designated as a trust
fund on the books and records of the C
Section 18. Investments. All offunds provid9b by this Resolution may be invested
only in Permitted Investments or deposited 'n financial ' sututions which are members of the
Federal Deposit Insurance Corporation or its
insured thereby and all such deposits exceedi
by FDIC or its equivalent successor in any one
in compliance with Chapter 12C of the Code of
pledge of direct obligations of the United States
All such interim investments shall mature before
the purposes for which the fund was created or/
maturing in more than three years in the case f
All income derived from such
shall be regarded as revenues of the U
necessary be liquidated and the procet
fund was created.
Section 19. Covenants 1
and agrees with each and every
rivale successor, and the deposits in which are
'hemi
amount insured from time to time
in cia, institution shall be continuously secured
a, 2015, as amended, or otherwise by a valid
ovemment having an equivalent market value.
t e date on which the moneys are required for
)thise as herein provided but in no event
the eserve Fund.
Invents shale deposited in the Revenue Fund and
Renewal Ar Investments shall at any time
.ereof applied o the purpose for which the respective
ing the Urban RenewW Area. The Issuer hereby covenants
of the Bonds and PanV Obligations:
(a) Maintenance in F ce. The Issuer will maintai the Urban Renewal Area and the
Ordinance in for and will annually certify end tedness for the Project and
cause the Tax Irl0brement Revenues of the Urban enewal Area to be collected and
applied as pro ded in this Resolution. Provided, owever, that to the extent that
amounts are op hand and are sufficient to meet the ayrn required to be made
and to mainton a sufficient balance in each fund as equired by this Resolution,
the Issuer y adjust the certification for increment taxes in any year.
(b) Accountirig and Audits. The Issuer will cause to be k t proper books and
accounts f the Issuer adapted to the Urban Renewal A#a and in accordance with
general] relating accounting practices, and will cause t books and accounts to
be audi as a part of the issuers general audit annually after the end of each
Fiscal Year by an independent auditor and will make gcne�ally available to the
holders of any of the Bonds and Parity Obligations, the balagtce sheet and the
-21 -
operating statement of the Issuer as certified by
Purchaser shall have at all reasonable times the
Renewal Area records, accounts and data of the
finther agreed that if the Issuer shall fail to prov
by this subsection, the Original Purchaser may 4
prepared at the expense of the Issuer. The all it
shall include, but not be limited to, the folio in
su h auditor. The Original
igbt to inspect the Urban
suer relating thereto. It is
de the audits and reports required
ause such audits and reports to be
reports required by this Section
__ information:
(i) A statement of Net Revenues col]iEcted in the special fund of the Urban
Renewal Area;
(ii) Analyses of eAeh fund and a unt created hereunder, including
deposits, withdrawals and be g and ing balances;
(iii) The minutes of th gove g body of the Issuer for the Fiscal
Year; and
(iv) A general statement ver
any events or circumstances which are
perceived to affect the finan ' status of the Bonds.
(c) State Laws. The Issuer w 1 fai Ily and punctually perform all duties with
reference to the Bonds r uired the Constitution and laws of the State of Iowa
including the certificati n and col ting of indebtedness as above provided, and
will segregate the Net evenues o e Urban Renewal Area and apply said
revenues to the funds vecifred in s Resolution.
(d) The Issuer reserves he right to amen the Urban Renewal Area in its lawful
discretion. Provid , the LSsuer may end the Urban Renewal Area by merging
or combining wi another such urban rknewal area, but if urban renewal areas
being combined 'th the Urban Renew Area have obligations outstanding
payable from Incremental Tax Reven es of the Net Revenues available to pay
the Bonds and 1 other obligations of the erged area in the Fiscal Year in which
the action tak place, computed on the s e basis as provided in Section 20(b)(i)
of this Resol 'on, shall be at Ieast equal to .25 times the maximum combined
debt service f the urban renewal areas in an Fiscal Year. The terms of merger
of urban r wal areas may provide that the o ligations of the combined urban
renewal ar having the same lien position as xisted in the separate urban
renewal ar . In no event shall obligations r ]ting from a merger have any
priority o er the Bonds or Parity Obligations.
Section 20. Prior Lien and Pant Obligations. The Issuer will issue no other notes,
bonds or obligations o any kind or nature payable from or enjoyin alien or claim on the
property or revenues of the Urban Renewal Area having priority over the Notes or Parity
Obligations.
_22_
Additional Obligations may be issued on a parity and equality of rank with the Notes
with respect to the lien and claim of such Additional Obligations to the revenues of the Urban
Renewal Area and the mo y on deposit in the funds adopted by this Resolution, for the
following purposes and funder the following conditions, but not otherwise:
(a) For the pu ose of refunding any of the Notes or Parity Obligations which shall
have matured or w 'ch shall mature not later than three months after the date of delivery
of such refunding obligation and for the payment of which there shall be insufficient
money in the Sinking und;
(b) For the purpose o aiding in the planning or undertaking of an urban renewal
project in the Urban Rene al Area, refunding any outstanding Notes, Parity Obligations
or general obligation notes, all of the following conditions shall have been met:
(i) before y such Additional Obligations ranking on a parity
are issued, there will h0f been procured and filed with the City Clerk, a
statement of an lndepend t Auditor, independent financial consultant or a
consulting engineer, not alar
employee of the Issuer, reciting the
opinion based upon necess investigations that the Net Revenues of the
Urban Renewal Area fore receding Fiscal Year (with adjustments as
hereinafter provided) were eq to at least 1.25 times the maximum
amount that will be required ' y Fiscal Year prior to the longest
maturity of any of the Notes/or ity Obligations for both principal of and
interest on all Notes and Panty O igations then outstanding which are
payable from the net earnings of th Urban Renewal Area and the
Additional Obligations then propos to be issued.
For the purpose of determining the Ne Revenues of the Urban Renewal
Area for the preceding Fiscal Year as a resaid, the amount of the gross
revenues for such year may be adjusted an Independent Auditor,
independent financial consultant or a co Iting engineer, not a regular
employee of the Issuer, so as to reflect any hanges in the amount of such
revenues which would have resulted had th I tax increment available
for the Urb enewal Area been certified o
realized sin that time been in effect during
Year.
('i) the Additional Obligations must
and as td interest on the same month and day as
d additional taxable value
of such preceding Fiscal
/ (iii) for the purposes of this Section, prin
falIirfg due on the first day of a Fiscal Year shall be
of the immediately preceding Fiscal Year.
-23-
Table as to principal
otes herein
and interest
ted a requirement
(iv) for purposes of this Section, "preceding Fiscal Year" hall
be the most recently completed Fiscal Year for which audited fin tial
statements prepared by a certified public accountant are issued d
available, but in no event a Fiscal Year which ended more tha eighteen
months prior to the date of issuance of Additional Obligatio
Section 21. Not ual fled Tax -Exempt Obli ations. The Note shall not be designated
as qualified tax-exempt oblig tions as defined by Section 265(b) of t e Internal Revenue Code of
the United States, as amended.
Section 22. Dischaz e Ad Satisfaction of Notes. The 96venants, liens and pledges
entered into, created or imposed] ursuant to this Resolution ay be fully discharged and
satisfied with respect to the Notes nd Parity Obligations, any of them, in any one or more of
the following ways:
(a) By paying the Notes o? )arity Obligatj6ns when the same shall become due and
payable; and
(b) By depositing in trust wi
the Governing Body for the pay
exclusively to that purpose an ai
the maturities and income of wk
redemption prior to maturity on
redeemed, all of such obligation
thereon to maturity or to the d
may be payable on the rede ti
of all such obligations to b reds
shall have been made for ch p
the T asurer, or with a corporate trustee designated by
t o the obligations and irrevocably appropriated
in cash or direct obligations of the United States
all be sufficient to retire at maturity, or by
les\gnated date upon which the obligations may be
lutskriding at the time, together with the interest
rate edemption date, premiums thereon, if any, that
of th same; provided that proper notice of redemption
ned sh l have been previously published or provisions
Upon such payment or eposit of money or kcurities, or both, in the amount and manner
provided by this Section, all ability of the Issuer wi respect to the Notes or Parity Obligations
shall cease, determine and completely discharged, kd the holders thereof shall be entitled
only to payment out of th oney or securities so depo 'ted.
Section 23. Res6lution a Contract. The provision of this Resolution shall constitute a
contract between the I suer and the holder or holders of th Notes and Parity Obligations, and
after the issuance of y of the Notes no change, variation o alteration of any kind in the
provisions of this olution shall be made in any manner, a pt as provided in the next
succeeding Sectio , until such time as all of the Notes and P Obligations, and interest due
thereon, shall ha a been satisfied and discharged as provided in 's Resolution.
Sectio 24. Amendment of Resolution Without Consent, a Issuer may, without the
consent of or notice to any of the holders of the Notes and Parity Obligations, amend or
supplement this Resolution for any one or more of the following purposes:
-24-
(a) to cure any ambiguity, defect, omission or inconsistent provision in this
Resolution or in the Notes or Parity Obligations; or to comply with an application
provision of law or regulation of federal or state agencies; provided, h ever, that such
action shall not materially adversely affect the interests of the holders f the Notes or
Parity Obligations;
(b) to grant tA or confer upon the holders of the Notes or Pant Obligations any
additional rights, 1priedies, powers or authority that may lawfull be granted to or
conferred upon the olders of the Notes;
(c) to add to the Nvenants and agreements of the Issue contained in this Resolution
other covenants and a eements of, or conditions or restri ions upon, the Issuer or to
surrender or eliminate right or power reserved toor nferred upon the Issuer in this
Resolution; or
(e) to subject to the lien tdpd pledge of this Resolution additional pledged revenues as
may be permitted by law. \
Section 25. Amendment of Reso
amended from time to time if such amend
less than two-thirds in principal amount of
outstanding (not including in any case any
account of the Issuer, but including such r(
purpose of refunding any of such Notes if
the Issuer); but this Resolution may not be
(a) Make any change in theaturity of'
of payment of principal of or mi st on the
conditions with respect tosue payment;
(b) Materially affect th rights of the ho
Obligations then outstand' g; and
aiy(np Consent. This Resolution may be
ave been consented to by holders of not
s and Parity Obligations at any time
hick may then be held or owned by or for the
obligations as may have been issued for the
ending obligations shall not then be owned by
ded in such manner as to:
t rate of the Notes, or modify the terms
or any of them or impose any
less than all of the Notes and Parity
(c) Reduce the per)Uentage of the principal amou t of Notes, the consent of the
holders of which is reAuired to effect a further amen ent.
Whenever the Issu shall propose to amend this Resoloon under the provisions of this
Section, it shall cause no ce of the proposed amendment to be filed with the Original Purchasers
and to be mailed by eery fled mail to each registered owner of any,lote as shown by the records
of the Registrar. Suc otice shall set forth the nature of the proposed amendment and shall state
that a copy of the proposed amendatory Resolution is on file in the office of the City Clerk.
Whenever ji any time within one year from the date of the mailing of the notice there
shall be filed witX the City Clerk an instrument or instruments executed by the holders of at least
two-thirds in aggregate principal amount of the Notes then outstanding as in this Section defined,
which instrument or instruments shall refer to the proposed amendatory Resolution described in
-25-
the notice and shall specifically consent to and approve the adoption thereof, thereupon, but not
otherwise, the Governing Body of the Issuer may adopt such amendatory Resolution and such
Resolution shall become effective and binding upon the holders of all of tete Notes and Parity
Obligations. /
Any consent given y the holder of a Note pursuant to the p sions of this Section shall
be irrevocable for a period six months from the date of the ins ent evidencing such consent
and shall be conclusive and b ding upon all future holders /:theerne Note during such period.
Such consent may be revoked t any time after six months frdate of such instrument by
the holder who gave such conse t or by a successor in title bnotice of such revocation
with the City Clerk.
The fact and date of the ex ution of any rostrum t under the provisions of this Section
may be proved by the certificate of y officer in any j 'sdiction who by the laws thereof is
authorized to take acknowledgmentsVe
ithin ch jurisdiction that the person signing
such instrument acknowledged beforxec on thereof, or may be proved by an
affidavit of a witness to such executib ore such officer.
The amount and numbers of td by any person executing such instrument and
thedateofhisholdingthesamemayby an affidavit by such person orby a certificate
executed by an officer of a bank or trny showing that on the date therein mentioned
such person had on deposit with sucust company the Notes described in such
certificate.
Section 26. Severability. If an secti , paragraph, or provision of this Resolution shall
be held to be invalid or unenforceable or any on, the invalidity or unenforceability of such
section, paragraph or provision shall of affect y of the remaining provisions.
Section 27. Reneal of Conilictinia OrdinaAces or Resolutions and Effective Date. All
other ordinances, resolutions anorders, or parts t eof, in conflict with the provisions of this
Resolution are, to the extent of uch conflict, hereb repealed; and this Resolution shall be in
effect from and after its adopt n.
-26-
ADOPTED AND APPROVED this 16th day of August, 2016.
LOAN AGREEMENT
The City of Iowa City, Iowa (the "City") hereby agrees to sell, and MidWestOne Bank
(the "Bank") hereby agrees to purchase the Iowa City, Iowa Taxable Urban Renewal Revenue
Capital Loan Note, Series 2016E (the "Note"), in the principal amount of $9,805,000, to be dated
September 15, 2016 (the "Dat ate"). The Note will be secured solely and only by a first lien
on the net revenues of the Ci -University Project 1 Urban Renewal Area, as am ed, the
"Urban Renewal Area") certffied by and paid to the City pursuant to Iowa Code ction 403.19.
No reserve fund shall be req 'red.
The Note will mature on June 1, 2036, and will be payable as
June and
Interest
Rate
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
3.000%*
*The]
which
are
Mandatory
Call Amounts
$738,916
$735,088
$731,259
$727,431
727,431
631,716
M
erate on the Note ii
Vunpaid principal c
bear interest at a ra
Yield Curve Rate plus 1.
on said date at www.ustre
monly referred to as "Cons
These market yields are oa
ns obtained by the Federal
After Payment
Payment Remaining
Date Principal
22
$9,066,084
023
$8,330,996
2024
$7,599,737
2025
$6,872,306
2026
$6,144,875
2027
$5,513,159
2028
$4,958,015
2029
$4,391,385
2030
$3,813,269
2031
$3,219,839
2032
$2,611,094
2033
$1,987,035
2034
$1,343,833
2035
$ 681,488
2036
$ -0-
be adjusted on June 1, 2026, at
m 2027 through 2036 shall
per annum equal to the 10 Year
,5% for June 1, 2026, as
gov. (Treasury Curve Rates
t Maturity Treasury rates, or
Ic ated from composites of
Re a Bank of New York.)
will be payable December 1, 2016, and
1
thereafter on the first day of
The Note is subject to redemption in whole or in part at par on June 1, 2026, June 1,
2029, June 1, 2032 and June 1, 2035.
The Bank acknowledges that concurrent with the sale of the Note, it will sell an
additional Note to First National Bank, Ames, Iowa, in the principal amount of $3,000,000 which
Note shall rank on parity with the Nofe
The City agrees that it will i
obligations, pledging the net revem
certificate from an independent fins
net revenues of the Urban Renewal
both, all outstanding obligations, in
pledged, and the new proposed obli
t enter into any agreement, nor issue any additional
of the Urban Renewal Area unless it has first obtained a
pial advisor or certified public accountant finding that the
�ea are sufficient to cover 125% of principal and interest on
uding the Note, to which the net revenues have been
The Bank hereby agrees to perform under the terms of this
the Note from the City on the Dated Date, r such other date as sh
price of $9,805,000 upon delivery of the N�te to the Purchaser t
approving and certifying the legality of the j�I\lote by the firm o
Attorneys, Des Moines, Iowa.
The Bank hereby represents, certifies skid agrmXs follows:
1. The business of the Bank is barilA
sufficient knowledge and experience in financial,
and ownership of limited security municipal ob X
merits of the investment represented by its p111111
the City or its officers, Council members, plot
as to the accuracy or completeness of an such in
has made its decision to purchase the ote based
analysis. The Bank is able to bear t economic:
�reement, and to purchase
be agreed to in writing, at a
ier with an opinion
s & Cooney, P.C.,
/As an institutional investor, the Bank has
I business matters, including the purchase
ons, to be able to evaluate the risks and
of the Note. The Bank has not relied upon
y City's financial advisor, attorneys or agents
`nation. As a sophisticated investor the Bank
ly upon such information, inquiry and
� represented by its purchase of the Note.
2. Neither the Cityyfor its officers, Councilmembers, employees, attorneys, City's
financial advisor or agents ha
,vmade any representationr warranty concerning the future
financial position of the Urjkn Renewal Area, or future usiness conditions in the Urban
Renewal Area; the likelilj od that tax increments colleetkd by the City pursuant to Iowa Code
Section 403.19 from the Urban Renewal Area will be sufkcient to pay principal and interest on
the Note, nor have ar# of them represented or warranted a correctness of any materials
finnished to the Bc by any third party.
3. a Bank acknowledges it has, independent]
its officers, ouncil members, employees, City s financial a
on the fin cial statements and such other documents and inf
made its n credit analysis and decision to enter into this A
acknow edges that it will, independently and without reliance
2
and without reliance upon the City,
isor, attorneys or agents, and based
ation as it deems appropriate,
ement. The Bank also
U on the above parties and based
on such documents and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement.
4. The Bank understands that the Note is payable solely and only from the
incremental taxes collected by the City pursuant to Iowa Code Section 403.19 with respect to e
Urban Renewal Area. The Bank acknowledges that the sufficiency of said incremental tax to
pay the Note will depend upon the continual levy and payment of taxes against propertie the
Urban Renewal Area by third parties, and may be affected by changes in the provisions incremental/
State
law governing the collection of taxes and the division of revenue under Iowa Code S tion
403.19 for the Urban Renewal Area property tax classifications and valuations, fm tial
conditions for properties in the Urban Renewal Area, and other factors outside th control of the
City.
5. The Bank acknowleqges that no offering statement, prospec9, offering circular
or other comprehensive offering staNment containing material informatign with respect to the
City, the Urban Renewal Area or the Note, is being provided by the Ci# and that, in due
diligence, the Bank has sought such ad 'ce as it has deemed necessa# and have made its own
inquiry and analysis with respect to the C4y, the Note and the secipity therefor.
6. The Bank acknowledges that 't obtained such ' ependent legal and financial
information it deems adequate for a reasonab investor in g investment decisions from
knowledgeable individuals of its choosing co ng the ity, the Urban Renewal Area and the
Note.
7. The Bank is acquiring the Note fo i own account, or for resale to other
sophisticated investors. If the Bank sells or oth 'se disposes any or all of the Note, it will
comply with all applicable state an/thimitedt
w , es, regulations, including but not limited to
all required disclosure. The Bank oul it sell or transfer all or any portion of the
Note, such sale or transfer shall be stitu 'onal Investors. Such sale or transfer will
not be made, and no transfer and rewill be ompleted, until an Investment Letter in the
form attached hereto as Exhibit A xecuted y such histitutional Investor, such letter is
furnished to the Registrar and the Tgent for a Note, and the conditions of the
Investment Letter and this ARreemisfied.
8. The Bank
Act of 1933 and is not being
the 'Blue Sky" laws and reg
securities exchange, (c) will
marketable. No opinion re
the City. The Bank agre n
registration of the Note ith
ds that the Note (a) i not being registered under the Securities
ter or otherwise qua l fled for sale under the laws of Iowa or
ions of any other state, (b will not be listed on any stock or other
rry no rating from any ratin service, and (d) will not be readily
ig to the registration of the to will be issued by or on behalf of
to offer, sell or transfer the to or make any change in
t having first determined that a sale or transaction which
necessitates or promp the transfer to change of registration ay be made without violating the
Iowa Uniform Securi es Act or any other applicable law, rule regulation.
9. The Bank acknowledges this transaction is exempt from SEC Rule 15c2-12
because the Bank is a sophisticated investor, any transfer is restricted to other sophisticated
investors, and the Note will be in one or more denominations of $100,000 or Afore.
Dated this day 2016.
MIDWESTONE BANK
Iowa City, Iowa /
Um
Accepted on behalf of the City CAuncil, City ofjlowa City, Iowa.
Jim Throgmorton, Mayor
ATTEST:
Marian Karr, City Clerk
(SEAL)
01262847-1\10714-120
Exhibit "A"
(Form of Investment Letter)
Ahlers & Cooney, P.C.
100 Court Avenue, Suite 600
Des Moines, IA 50309
RE: Iowa City, Iowa - $9,805
Loan Note, Series 2016E
Ladies and Gentlemen:
This letter is to provide you with cer
participation in the purchase of the $9,805,1
Note, Series 2016E, in the aggregate princi,
ANotc"), dated September 15, 2016, issued
The business of the undersigned is b�
defined, the bank has sufficient knowledge ai
including the purchase and ownership of mun
merits of the investment represented by its pt
risks represented by its purchase of the Note.
City of Iowa City, Iowa
410 E. Washington Street
Iowa City, Iowa 52240
Urban Renewal Revenue
i representations and
Taxable Urban Ren
amount of $9,805,0(
the City of Iowa Cid
The bank has made inquiry and analysi?
factors affecting the credit of the Issuer and the
acknowledges that it has been furnished with
It further acknowledges that it has been offer
data and business of the Issuer, as well as ch
necessary or appropriate as a prudent and owl
Note.
Neither the Issuer nor its
representation or warranty conc
nor have any of them represente
by the Issuer in connection with
or its officers, Council mcmb
such information. As a sop st
Note based solely upon suc inf
The bank is f
Iowa) legislation, rul
securities, including,
transfer or distributie
securities laws of tht
with respect to our
ie Capital Loan
.feferred to above (the
Iowa (the AIssuer®).
ing. As antutional Investor, as hereinafter
experience financial and business matters,
nal oblige ' ns, to be able to evaluate the risks and
Note. It is able to bear the economic
t respect to the Issuer and other material
lihood of the payment of the Note. It
of all legal documents pertaining to this issue.
;as to all information relating to the financial
r information as the undersigned deems
;able investor in evaluating the purchase of the
rrwai
Counembers, or employees or agents has madeany
e financia position or business condition of the Issuer,
ented the rrectness of any offering materials furnished
is purchase of the ote. The bank has not relied upon the Issuer
or employees or a ents as to the accuracy or completeness of
sated investor, the has made its decision to purchase the
rmation and its o inquiry and analysis.
miUkr with the federal and state i
s; iegulations, and case law p
blit not limited to, disclosure obli
i. It acknowledges that the Note
United States or any state thereof,
ding, but not limited to the state of
to the transfer and distribution of
is of the seller incident to any such
not been registered under the
hereby covenants and agrees that it
City of Iowa City, Iowa
$9,805,000 Taxable Urban Renewal Revenue Capital
Loan Note, Series 2016E
Page 2
will not sell, offer for sale, pledge, transfer, convey, hyp hecate, mortgage,
or any interest therein in violation of applicable federal Or state law.
The bank represents it is purchasing the Note fo4 its own account (or
affiliate corporation) for Investment (and not on behalf Of another) and hasft
reselling the Note or dividing its interest therein, either
determinable period of time or upon the occurrence or n
or circumstance; but the undersigned reserves the right t
convey, hypothecate, mortgage, or dispose of the Note a
subject to the provisions of the Note Purchase Agreemer
incorporated herein by reference. It has not and will no
fee to any person or entity in connection with its purchas
not purchasing the Note pursuant to, any form of general
the Note.
The bank agrees that it will not furnish to
on behalf of the Issuer and designated as
This letter shall be binding upon the
01263120-1\10714-120
or
of the Note
Slated subsidiary or
present intention of
we of a fixed or
noccurrence any predetermined event
sell, offer r sale, pledge, transfer,
some fu a date determined by it,
whic s attached hereto and
pay y commission, compensation, or
of a Note and it is not aware of, and is
icitation or advertising with respect to
Very
arson information famished to it by or
as permitted and provided in the Note.
its successors and assigns.
Yours,
LOAN AGREEMENT
The City of Iowa City, Iowa (the "City") hereby agrees to sell, and First National Bank,
Ames, Iowa (the 'Bank") hereby ees to purchase the Iowa City, Iowa Taxable Urban Renewal
Revenue Capital Loan Note, Series 016E (the "Note"), in the principal amount of $3,000,000, to
be dated September 15, 2016 (the "D ed Date"). The Note will be secured solely and only by a
first lien on the net revenues of the Cit University Project 1 Urban Renewal Area, as amended,
(the "Urban Renewal Area") certified by'gnd paid to the City pursuant to Iowa Code Section
403.19. No reserve fund shall be required.`
The Note will mature on June 1, 2016, and will be payable as
Interest Mandatory
Rate Call Amounts
After Payment
Remaining
Principal
3.000%
$226,084
0
$2,773,916
3.000%
$224,912
/2202223
$2,549,004
3.000%
$223,741
2024
$2,325,263
3.000%
$222,569
2025
$2,102,694
3.000%
$222,569
2026
$1,880,125
3.000%*
$193,284
2027
$1,686,841
3.000%*
$169,856
2028
$1,516,985
3.000%*
$173,370
2029
$1,343,615
3.000%*
$176,88
2030
$1,166,731
3.000%*
$181,570
2031
$ 985,161
3.000%*
$186,255
2032
$ 798,906
3.000%*
$190,941
2033
$ 607,965
3.000%*
$196,798
2034
$ 411,167
3.000%*
$202,655
2035
$ 208,512
3.000%*
$208,512
036
$ -0-
*The Interest Rate on the Note will be adjon June 1'2026, at
which time the unpaid principal from 2027 t ough 2036 shall
commence to bear interest at a rate per annum ua1 to the 10 Year
Treasury Yield Curve Rate plus 1.65% for Jun ] , 2026, as
reported on said date at www.ustreas.gov. (Tr Curve Rates
are commonly referred to as "Constant Maturity reasury" rates, or
CMTs. These market yields are calculated from mposites of
quotations obtained by the Federal Reserve Bank o New York.)
Interest will be payable December 1, 2016, and semiannually hereafter on the first day of
June and December.
The Note is subject to redemption in whole or in part at par on June 1, 2026, June 1,
2029, June 1, 2032 and June 1, 2035.
The Bank acknowledges that concurrent with tqe sale of the Note, it will sell an
additional Note to MidWestOne Bank in the principalount of $9,805,000 which Note shall
rank on parity with the Note.
The City agrees that it will not enter into any ao
obligations, pledging the net revenue of the Urban Rene
certificate from an independent financial advisor or cert
net revenues of the Urban Renewal Area are sufficient 1
both, all outstanding obligations, including the Note, to
pledged, and the new proposed obligation.
The Bank hereby agrees to perform under the to
the Note from the City on the Dated Date, or such other
price of $3,000,000 upon delivery of the Note to the Pu
approving and certifying the legality of the Note by the
Attorneys, Des Moines, Iowa.
The Bank hereby represents, certifies and
1. The business of the Bank is b As
sufficient knowledge and experience in financial d bu
and ownership of limited security municipal o gations
merits of the investment represented by its p chase of 1
the City or its officers, Council members, ployees, C
as to the accuracy or completeness of an ch informat
has made its decision to purchase the to based solely
analysis. The Bank is able to bear th economic risks rt
2. Neither the City n its officers, Council
financial advisor or agents has a any representation c
financial position of the Urb enewal Area, or future 1
Renewal Area; the likelihoo at tax increments collect
Section 403.19 from the Ur an Renewal Area will be su1
the Note, nor have any of em represented or warranted
furnished to the Bank by y third party.
ement, nor issue any additional
,al Area unless it has first obtained a
ied public accountant folding that the
cover 125% of principal and interest on
the net revenuO have been
of this AV6ement, and to purchase
e as sha be agreed to in writing, at a
ser t9gether with an opinion
i ofAhlers & Cooney, P.C.,
follows:
institutional investor, the Bank has
ess matters, including the purchase
i be able to evaluate the risks and
Note. The Bank has not relied upon
s financial advisor, attorneys or agents
.. As a sophisticated investor the Bank
on such information, inquiry and
seated by its purchase of the Note.
:tubers, employees, attorneys, City's
warranty concerning the future
siness conditions in the Urban
I by the City pursuant to Iowa Code
tient to pay principal and interest on
le correctness of any materials
3. The B96k acknowledges it has, independen y and without reliance upon the City,
its officers, Counci embers, employees, City's financialvisor, attorneys or agents, and based
on the financial st ements and such other documents and i ormation as it deems appropriate,
made its own credit analysis and decision to enter into this Agreement. The Bank also
acknowledges that it will, independently and without relianck upon the above parties and based
N
on such documents and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under this Agreement.
4. The Bank understands that the Note is payable solely and only from#e
incremental taxes collected by the City pursuapt-to Iowa Code Section 403.19 with espeet to the
Urban Renewal Area. The Bank
pay the Note will depend upon the continual ld
Urban Renewal Area by third parties, and may
law governing the collection of taxes and the d.
403.19 for the Urban Renewal Area property to
conditions for properties in the Urban Renewal
City.
that the sufficiency of said incre ntal taxes to
y and payment of taxes against p operties in the
)e affected by changes in the p visions of State
Vision of revenue under Iowa ode Section
ilclassifications and valuati s, financial
kea, and other factors o side the control of the
5. The Bank acknowledgesthat no o eni'ng mng statement, rospectus, offering circular
or other comprehensive offering statement contai aterial in rmation with respect to the
City, the Urban Renewal Area or the Note, is bein4 provided b the City and that, in due
diligence, the Bank has sought such advice as it ha deemed p6cessary and have made its own
inquiry and analysis with respect to the City, the N to and the security therefor.
6. The Bank acknowledges that it obtai ed uch independent legal and financial
information it deems adequate for a reasonable inve r in making investment decisions from
knowledgeable individuals of its choosing concern the City, the Urban Renewal Area and the
Note.
7. The Bank is acquiring the Not�,for its wn account, or for resale to other
sophisticated investors. If the Bank sells or ptherwis4 disposes any or all of the Note, it will
comply with all applicable state and
all required disclosure. The Bank aj
Note, such sale or transfer shall be 1
not be made, and no transfer and re€
form attached hereto as Exhibit A h;
furnished to the Registrar and the Y,
Investment Letter and this Aereeme
Aer# laws, rule', regulations, including but not limited to
:es:tltat should i sell or transfer all or any portion of the
i�*d to Institutic al Investors. Such sale or transfer will
tration will be pleted, until an Investment Letter in the
been executed b such Institutional Investor, such letter is
tsfer Agent for th Note, and the conditions of the
are satisfied.
8. The Bank und9tstands that the Note (a) islr
Act of 1933 and is not bein&/iegistered or otherwise qual:
the "Blue Sky" laws and regulations of any other state, (b{
securities exchange, (c) voll carry no rating from any ratin
marketable. No opino4relating to the registration of the
the City. The Bank a0ees not to offer, sell or transfer the
registration of the Note without having fust determined th
necessitates or pror$pts the transfer to change of registrati
Iowa Uniform Segtrrities Act or any other applicable law,
of being registered under the Securities
ied for sale under the laws of Iowa or
will not be listed on any stock or other
g service, and (d) will not be readily
Mote will be issued by or on behalf of
�ote or make any change in
it the sale or transaction which
q may be made without violating the
ule or regulation.
9. The Bank acknowledges this transaction is exempt from SEC Rule 15c2-12
because the Bank is a sophisticated investor, any transfer is restricted to other sophisticated
investors, and the Note will be in one or more denominations of $100,000 or more.
Dated this day of 12016.
Acceptei
ATTEST:
Marian Karr, Ci
(SEAL)
01265995-1\10714120
4
Ahlers & Cooney, P.C.
100 Court Avenue, Suite 600
Des Moines, IA 50309
RE: Iowa City, Iowa -
Loan Note, Series
Ladies and Gentlemen:
Exhibit "A"
(Form of Investment Letter)
16E
This letter is to provide you
participation in the purchase of the
Note, Series 2016E, in the aggregate
ANote"), dated September 15, 2016,
City of Iowa City, Iowa
410 E. Washington Street
Iowa City, Iowa 52240
,000 Taxable Urban Renewal Revenue Capital
certain representations and agreements with respect to our
30,000 Taxable Urban Renewal Revenue Capital Loan
ncipal amount of $3,000,000 referred to above (the
ied by the City of Iowa..City, Iowa (the Alssuer@).
The business of the undersigned i banking. As an institutional Investor, as hereinafter
defined, the bank has sufficient knowledg and experience in financial and business matters,
including the purchase and ownership of to 'cipal obligations, to be able to evaluate the risks and
merits of the investment represented by its p chase ofthe Note. It is able to bear the economic
risks represented by its purchase of the Note.
The bank has made inquiry and analysis ith respect to the Issuer and other material
factors affecting the credit of the Issuer and the i elihood of the payment of the Note. It
acknowledges that it has been furnished with eopi of all legal documents pertaining to this issue.
It further acknowledges that it has been offered ac s to all information relating to the financial
data and business of the Issuer, as well as such othe information as the undersigned deems
necessary or appropriate as a prudent and knowledge le investor in evaluating the purchase of the
Note.
Neither the Issuer nor its officers, Council mem 1
representation or warranty concerning the financial poli
nor have any of them represented or warranted the correc
by the Issuer in connection with its purchase of the Note.
or its officers, Council members, or employees or agents
such information. As a sophisticated investor, the bank
Note based solely upon such information and its own inc
The bank is
Iowa) legislation, n
securities, including
transfer or distribut
with the federal and state
or employees or agents has made any
or business condition of the Issuer,
ss of any offering materials furnished
he bank has not relied upon the Issuer
to the accuracy or completeness of
made its decision to purchase the
and analysis.
regulations, and case law pertaining t(
t not limited to, disclosure obligations
It acknowledges that the Note have r
but not limited to the state of
e transfer and distribution of
the seller incident to any such
)een registered under the
City of Iowa City, Iowa
$3,000,000 Taxable Urban Renewal Revenue Capital
Loan Note, Series 2016E
Page 2
securities laws of the United States or any state thereof, and hereby covenants and agrees that it
will not sell, offer for sale, pledge, transfer, convey, hypothecate, mortgage, or dispose of the Note
or any interest therein in violation of applicable federal or state law.
The bank represents it is purchasi
affiliate corporation) for Investment (and
reselling the Note or dividing its interest
determinable period of time or upon the (
or circumstance; but the undersigned resp
convey, hypothecate, mortgage, or dispo
subject to the provisions of the Note Pur(
incorporated herein by reference. It has
fee to any person or entity in connection
not purchasing the Note pursuant to, any
the Note.
the Note for its own account (or related subsidiary or
t on behalf of another) and has no present intention of
rein, either currently or after passage of a fixed or
urrence or nonoccurrence of any predetermined event
es the right to sell, offer for sale, pledge, transfer,
)f the Note at some fugice date determined by it,
se Agreement whiclis attached hereto and
t and will not pay any commission, compensation, or
toits purchase of the Note and it is not aware of, and is
of general socitation or advertising with respect to
The bank agrees that it will not furnish
on behalf of the Issuer and designated as confit
third person information f imisbed to it by or
except as permitted and provided in the Note.
This letter shall be binding upon the upd�rsigned and its successors and assigns.
Very Truly Yours,
City of Iowa City
MEMORANDUM
Date: August 10, 2016
To: City Council
From: Eleanor M. Dilkes, City Att,RSne)�(/e
Marian Karr, City Clerk
Re: Proposed Amendment to City Charter
On August 8 a petition containing 751 signatures was filed with the City Clerk proposing
an amendment to Section 7.03(A) of the City Charter to change the number of signatures
required for a valid initiative or referendum petition under the City Charter from eligible
electors (residents of Iowa City) equal in number to at least twenty-five percent (25%) of
the number of persons who voted at the last regular city election, but not less than three
thousand six hundred (3610), to eligible electors equal in number to at least ten percent
(10%) of the number of persons who voted at the last regular city election, but not less
than ten (10)
Pursuant to Iowa Code Section 372.11, the language of which is also found at Section
8.01 of the City Charter, amendments to the City's Charter can be proposed by a petition
that is valid pursuant to Section 362.4 of the Iowa Code. Section 362.4 provides that the
petition "is valid if signed by eligible electors of the city equal in number to ten percent of
the persons who voted at the last preceding city election, but not less than ten persons".
The petition must include "the signatures of the petitioners, a statement of their place of
residence, and the date on which they signed the petition." "If the petition appears valid
on its face it shall be accepted for filing."
The number of persons who voted at the last city election was 6,865, such that the petition
requirement for a charter amendment is 686 signatures. After examining the petition on
its face the City Clerk determined that it includes the dated signatures of more than 686
persons with an address within the city limits, and therefore, the petition was accepted by
the Clerk for filing. After acceptance by the Clerk there is a five (working) day period
within which written objections may be filed with the Clerk. Objections must be received in
the Office of the City Clerk by Monday, August 15 at 5:00 p.m. and may relate only to
whether the petition contains the requisite number of signatures of eligible electors
[residents of Iowa City], including their place of residence and the date on which they
signed. Objections may not relate to the subject matter of the proposed amendment. If
objections are filed the objection process in Iowa Code Section 44.8 is followed — hearing
set for consideration by the Mayor, City Clerk and one member of the Council chosen by
Council ballot; a majority decision is final.
If no objections are filed, or if filed objections are rejected by the committee, the Council
must forward the proposed amendment to the voters. A resolution directing and
authorizing the Council Auditor to place the proposed amendment on the November 8,
2016 ballot has been placed on Council's agenda for August 16, 2016.
Cc: Geoff Fruin, City Manager
City of Iowa City
M E M O RA N D U Me Handouts Distribute.
s k t SWb
Date: August 15, 2016 (Date)
To: City Council
From: Eleanor M. Dilkes, City Attorne
Re: Council Action on Petition Prop sing to Amend the Charter to Decrease Number of
Signatures on Initiative and Referendum Petitions
Question
After a valid petition proposing to amend the Charter has been filed may the petition be
withdrawn by the persons who led the effort to allow Council to adopt the proposed amendment
by ordinance and avoid the election.
Answer
No. Once a valid petition has been filed proposing an amendment to the Charter the Council
must place the proposal before the voters at a special city election.
Discussion
Section 372.11 of the state code and section 8.01 of the City Charter allow the Charter to be
amended by "one of the following methods":
1. The council, by resolution, may submit a proposed amendment to the voters
at a special city election, and the proposed amendment becomes effective when
approved by a majority of those voting.
2. The council, by ordinance, may amend the charter. However, within thirty (30)
days of publication of the ordinance, if a petition valid under the provisions of
section 362.4 of the code of Iowa is filed with the council, the council must
submit the amending ordinance to the voters at a special city election, and the
amendment does not become effective until approved by a majority of those
voting.
3. If a petition valid under the provisions of section 362.4 of the code of Iowa is
filed with the council proposing an amendment to the charter, the council must
submit the proposed amendment to the voters at a special city election, and the
amendment becomes effective if approved by a majority of those
voting. (emphasis added)
Method #3 is what we have here - a resident petition proposing an amendment. Once a valid
petition is filed proposing an amendment, the Council "must" submit the proposal to the voters
at a special election. "Must" is mandatory. Section 4.1 of the state code ("Construction of
statutes") provides certain rules for the construction of state statutes. "Unless otherwise
specifically provided by the general assembly..... the word 'must' states a requirement." Iowa Code
Section 4.1(30).
August 15, 2016
Page 2
There is no mechanism for withdrawal of the petition by the persons who led the effort to collect
the signatures. The "petitioners" are the 700 plus people who signed the petition. 362.4 of the
Iowa Code states:
The petition shall include the signatures of the petitioners, a statement of their
place of residence, and the date on which they signed the petition. (emphasis
added)
It is important to distinguish between the charter amendment process and the initiative and
referendum process. While they both involve "petitions" with signatures of Iowa City residents,
the procedure is different for initiative and referendum petitions under Article 7 of the City
Charter than it is for petitions to amend the Charter under Article 8. Charter amendments are
governed by state law. Initiative and referendum petitions are purely a creature of City law.
With initiative and referendum the "petitioners" are the one or more qualified electors
(registered voters) who file the initial affidavit to commence the process. Section 7.02(A) of the
Charter states:
Commencement. One or more qualified electors, hereinafter referred to as the
"petitioners," may commence initiative or referendum proceedings by filing with the
city clerk an affidavit stating they will supervise the circulation of the petition and
will be responsible for filing it in proper form, stating their names and addresses and
specifying the address to which all relevant notices are to be sent, and setting out in
full the proposed initiative measure or citing the measure sought to be reconsidered.
In addition, after an initiative or referendum petition is determined valid, the Council has the option of
adopting the proposed measure and avoiding an election by doing so. City Charter, Section 7.05. This
is not an option after the filing of a valid petition proposing a charter amendment.
Please contact me if you have questions.
Cc: Geoff Fruin, City Manager
Marian Karr, City Clerk
CITY O F IOWA CITY
MEMORANDUM
Date: August 16, 2016
To: Mayor and City Council Members
From: Marian K. Karr, City Clerk
Re: Election Costs
-fe� ;7
Late Handouts Distributed
(Date)
On August 3, 1 requested an estimate from the Johnson County Auditor / Elections Office for a
ballot question to be added to the 2016 presidential election ballot. An estimate was provided
between $60,000 -$70,000. This represented 50% of the costs associated with the election in
the 24 Iowa City precincts that would feature the ballot question. This was a rough estimate
based on current anticipated turnout, early voting locations, etc. to be. At that time the County
stated that "we may revisit our current policy regarding division of costs for shared election such
as this".
After further discussion with the office I received word today that they have "decided to adjust
our policy by including a cap. The new policy will continue to split the costs equally between the
county and the city for that city's precincts, however, the amount assessed to the city will not
exceed the costs billed for the last regular city election. This would be effective with the
upcoming general election. For Iowa City, that would mean the maximum amount we would bill
back to the city would be $31,043.16 for a public measure on the November 8, 2016 ballot."
I
Prepared by: Eleanor M. Dilkes, City Attorney, 410 E. Washington St., Iowa City, IA 52240 (319) 356-5030
RESOLUTION NO. 16-256
RESOLUTION AUTHORIZING AND DIRECTING THE JOHNSON COUNTY AUDITOR TO
PLACE A PROPOSED AMENDMENT TO THE CITY'S HOME RULE CHARTER TO AMEND
SECTION 7.03(A)(NUMBER OF SIGNATURES) OF ARTICLE VII (INITIATIVE AND
REFERENDUM) TO CHANGE THE NUMBER OF SIGNATURES REQUIRED ON INITIATIVE
AND REFERENDUM PETITIONS BEFORE THE QUALIFIED ELECTORS OF THE CITY OF
IOWA CITY, IOWA AT A SPECIAL CITY ELECTION ON NOVEMBER 8, 2016.
WHEREAS, a petition pursuant to Article VIII of the Home Rule Charter of Iowa City and section
372.11 of the Code of Iowa proposing to amend the City's Home Rule Charter to amend Section
7.03(A) to change the number of signatures required on initiative and referendum petitions from
eligible electors equal in number to at least twenty-five percent (25%) of the number of persons
who voted at the last regular city election, but not less than three thousand six hundred (3,600),
to eligible electors equal in number to at least ten percent (10%) of the number of persons who
voted at the last regular city election, but not less than ten (10); and,
WHEREAS, said petition is valid under the provisions of Section 362.4 of the Iowa Code, and
therefore, the Council must submit the proposed amendment to the voters at a special city
election.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, THAT:
The Johnson County Auditor is hereby authorized and directed to place the following
question before the qualified electors of the City of Iowa City, Iowa at the next regular
city election on November 8, 2016
Shall the following public measure be adopted? Yes No
AMENDMENT. Section 7.03(A) of Article VII (Initiative and Referendum) of the Iowa City
Charter shall be amended to comply with Iowa Code § 362.4 as follows (underline denotes
additions; stdkethFeugh denotes deletions):
Section 7.03. Petitions; Revocation of Signatures.
A. Number of Signatures. Initiative and referendum petitions must be signed by
eligible electors equal in number to at least twenty five pFesent (26%) ten percent
of the number of persons who voted in the last regular city election, but such
signatures of eligible electors shall be no fewer than three theusand sixhdaa
ten.
Passed and approved this 16th day of August .. 2016
MAWOR
,/ Ap roved b
ATTEST: AdjzeacJ e. 8
CITY-61LERK City Attorney's Office
Resolution No. 16-256
Page 2
It was moved by Botchway and seconded by
Resolution be adopted, and upon roll call there were:
AYES:
NAYS: ABSENT: ABSTAIN:
Thomas
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
the
Utl-'I b=10
9
Prepared by: Susan Dulek, Asst. City Attorney, 410 E. Washington Street, Iowa City, IA 52240; 319-356-5030
RESOLUTION NO. 16-257
RESOLUTION ADOPTING A PUBLISHERS' BOX MAINTENANCE CODE
PERMIT POLICY
WHEREAS, City Council passed Ordinance No. 16-4673 that requires a publishers' box
maintenance code permit policy be adopted by resolution; and
WHEREAS, the attached policy should be adopted.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CITY,
IOWA THAT:
The attached Publishers' Box Maintenance Code Permit Policy is adopted.
Passed and approved this 16th day of August , 2016.
-MAVOR
ATTEST: 1/lam e - 7Uai11/
CITY CtERK
Approved by
Ls�tU-�C
City Attorney's Office
Resolution No.
Page 2
16-257
It was moved by Mims and seconded by Botchway the
Resolution be adopted, and upon roll call there were:
AYES: NAYS
ABSENT: ABSTAIN:
Botchway
Cole
Dickens
Mims
Taylor
Thomas
Throgmorton
PUBLISHERS' BOX MAINTENANCE CODE PERMIT POLICY
(Adopted in Res. 16-257)
Definitions Person means any natural person, corporation, association or other entity including,
but not limited to, a partnership, a sole proprietorship, a political subdivision, a public or private
agency of any kind, a utility, or any other legal entity.
Publishers' Box means any machine or other enclosed box used for distributing newspapers or
other printed material while offering or displaying the material for sale or free distribution and
capable of operation by pedestrians without the assistance of an attendant.
Permit Required No person shall place or maintain any publishers' box on public right of way or
on City Plaza without first obtaining a permit.
Application An application for a permit shall be filed with the Public Works Dept. on a form
provided by the City.
Issuance The Public Works Director or designee shall issue a revocable permit to maintain a
publishers' box after:
a. receipt of a completed application that includes the name of the publisher, the
name of the publication, and a mailing address for the publication; and
b. the applicant provides a telephone number and electronic mail address at
which a contact person can be reached; and
c. the applicant provides assurance that it shall comply with all conditions of the
City ordinances and the permit system.
Duration Regardless of when the permit is issued, the permit shall expire on the following
September 30. Notwithstanding any other provision, any permit issued prior to September 30,
2016 will expire on September 30, 2017. The City will provide a notice of renewal via electronic
mail.
Conditions of Permit/Maintenance Requirements The maintenance conditions of the permit are:
a. The box shall be marked with the name of the publisher and/or publication.
b. The box shall be maintained in good working order at all times including no
broken or missing parts.
c. If the box is malfunctioning, vandalized or otherwise damaged, it shall be
repaired within 7 calendar days of City notification of any such damage.
d. The box shall be kept clean and free of graffiti and refuse, pasted handbills,
and debris of any description, including ruined or out -dated publications
(defined as any publication with a cover date more than 45 days past).
e. The box shall be placed or maintained no closer than three feet from a fire
hydrant.
f. The box shall be placed or maintained no closer than 15 feet of a crosswalk
as defined in Section 9-1-1 of the City Code.
g. The box shall be placed or maintained in a manner that allows at least 5 feet
of unobstructed walkway.
h. The box shall not be locked or affixed to a pole, bicycle rack, bench, or any
other public amenity.
i. Except for the name or branding of the publication, the box shall not contain
any third -party advertising or any display of the type and name of a product,
good or service of a third -party.
Assignment The sale or assignment of a publishers' box permit is expressly prohibited unless
approved in writing by the Public Works Director or designee.
Revocation and Suspension If the Public Works Director or designee finds that a city ordinance,
state law, federal law, or a provision of the "Publishers' Maintenance Code Permit Policy" has
been violated, any permit may be revoked or suspended. The Public Works Director or
designee shall notify the permit holder of the violation by notifying the permit holder of the
violation, in writing, at the physical and electronic addresses listed on permit application. The
notice of violation shall state the following:
a. The City's intent to revoke or suspend the publishers' box permit.
b. A description and a photograph of the reason for the revocation or suspension
with reference to the applicable City ordinance, state law, federal law, or permit
provision.
c. Actions that must be taken by the permit holder to remedy the violation.
d. The place and time of a hearing at which the permit holder will be given the
opportunity to present a written or oral statement to the City Manager or
designee if the permit holder believes that there are not grounds for revocation or
suspension. The City Manager or designee will provide the permit holder with a
written decision if the permit holder presents written or oral statements.
e. A statement that the publishers' box will be promptly removed by the City without
further notice to the permit holder if the permit is revoked or suspended.
Removal If the publishers' box permit is revoked or suspended, the City may remove the
publishers' box without further notice to the permit holder. If the publishers' box is removed, the
City shall store it for 30 days. If the permit holder does not claim the publishers' box within 30
days of its removal, it will be considered abandoned, and the City may dispose of it.