HomeMy WebLinkAbout1986-11-10 Resolution'r
Iowa City, Iowa, November 10, 1986..
The City Council of Iowa City, Iowa, met on the above date
in the Council Chambers, Civic Center in Iowa City, Iowa, at
8:00 A.M., in open special session, pursuant to law and the
rules of said City Council.
The meeting was called to order by William J. Ambrisco,
Mayor, presiding, and on roll call the following members of the
City Council were present:
Ambrisco
-Couriney ' ' '
. bk:Donald
'Strait
Zuber
Absent:
Baker'
Dickson
0
Matters were discussed relative to the request from
Mid -City Hotel Associates -Iowa City regarding the issuance of
not to exceed $8,500,000 in aggregate principal amount of the
City's Commercial Development Revenue Refunding Bonds (Mid -City
Hotel Associates -Iowa City Project) Series 1986. Following an
explanation of the proposed Project by representatives of said
Company and a discussion of the proposal, Council Member
Zuber introduced the following Resolution in written
form and moved its adoption. Council Member McDonald
seconded the motion to adopt. After due consideration of said
motion, the roll was called and the Resolution was adopted by
the following vote:
AYES: McDonald, StTait.:,_Zuber,Ambris Q
ABSTAINING: Courtney
ABSENT: Baker. Dickson
i
i
NAYS: None.
The Resolution was thereupon signed by the Mayor and in
evidence of approval was attested by the City Clerk and
declared to be effective. The Resolution is as follows:
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RESOLUTION NO. 86-332
A RESOLUTION REGARDING THE ISSUANCE OF NOT TO EXCEED
$8,500,000 IN AGGREGATE PRINCIPAL AMOUNT OF COMMERCIAL
DEVELOPMENT REVENUE REFUNDING BONDS (MID -CITY HOTEL
ASSOCIATES -IOWA CITY PROJECT) SERIES 1986, OF THE CITY
OF IOWA CI'rY, IOWA, DIRECTING PUBLICATION OF NOTICE OF
INTENTION TO ISSUE, CALLING A PUBLIC HEARING ON THE
PROPOSAL TO ISSUE SAID BONDS AND AUTHORIZING EXECUTION
OF A MEMORANDUM OF AGREEMENT.
WHEREAS, the City of Iowa City, Iowa (the "Issuer") is a
municipal corporation organized and existing under the
Constitution and laws of the State of Iowa, and is
authorized and empowered by Chapter 419 of the Code of Iowa
(the "Act"), to issue Commercial Development Revenue
Refunding Bonds and loan the proceeds from the sale of said
Bonds to one or more parties to be used to refund the
outstanding principal amount of any series of bonds issued
by the Issuer under the Act, to pay the accrued interest due
thereon and to pay any commissions, premiums or other
expenses to be paid in connection with such refunding for
the purpose of providing financial savings to the party
responsible for repaying the loan of the proceeds of said
bonds; and
WHEREAS, the Issuer has been requested by Mid -City Hotel
Associates -Iowa City, a sole proprietorship (the
"Borrower"), to authorize and issue its Commercial
Development Revenue Refunding Bonds pursuant to the
provisions of the Act for the purpose of defraying all or a
portion of the cost of refunding the outstanding principal
amount of and interest due on the Issuer's Lender -Assisted
Commercial Development Revenue Bonds (Mid -City Hotel
Associates -Iowa City Project) Series 1983 issued on December
27, 1983 in the aggregate principal amount of $8,105,000,
and paying certain commissions, premiums and expenses
incidental thereto (hereinafter referred to as the
"Project"); and
WHEREAS, the Issuer has determined that substantial
public benefits, including significant financial savings to
the Borrower, will result from the financing proposed by the
Borrower; and
WHEREAS the Issuer has determined that the amount
necessary to defray all or a portion of the cost of the
Project, including necessary expenses incidental thereto,
will require the issuance by the Issuer of not to exceed
$0,500,000 aggregate principal amount of its Commercial
Development Revenue Refunding Bonds pursuant to the
provisions of the Act, and it is proposed that the Issuer
loan said amount to the Borrower under a Loan Agreement
between the Issuer and Borrower pursuant to which loan
payments will be made by the Borrower in amounts
Wi
sufficient to pay the principal of, interest and premium, if
any, on said Bonds, as and when the same shall be due; and
WHEREAS, the Bonds, if issued, shall be limited
obligations of the Issuer, and shall not constitute nor
rise to a pecuniary liability of the Issuer or a charge
against its general credit or taxing powers, and the
principal of, interest and premium, if any, on the Bonds
shall be payable solely out of the revenues derived from
Project to be financed by the Bonds; and
give
the
WHEREAS, there has been presented to the City Council
(the "Governing Body") a Memorandum of Agreement, attached
hereto as Exhibit "A" which sets Eocth certain mutual
undertakings and agreements between the Issuer and the
Borrower, relating to the further processing and issuance of
said Bonds, and the Issuer believes it desirable and in its
best interest that said Memorandum of Agreement be executed
for and on behalf of the Issuer; and
WHEREAS, before the Bonds may be issued, it
to conduct a public hearing on the proposal to
Bonds, all as required and provided by Section
Act and Section 147(f) of the Code.
is necessary
issue the
419.9 of the
NOW, THEREFORE, Be It and It Is Hereby Resolved by the
Governing Body of the Issuer as follows:
Section 1. A public hearing shall be conducted on November
25, 1986, at 12:00 Noon, before this Governing Body in the
Council Chambers at the Civic Center on the proposal to issue
not to exceed $8,500,000 aggregate principal amount of the
Issuer's Commercial Development Revenue Refunding Bonds
(Mid -City Hotel Associates -Iowa City Project) Series 1986,
pursuant to the provisions of the Act, for the purpose of
defraying all or a portion of the cost of the Project and all
local residents who appear at said hearing shall be given an
opportunity to express their views for or against the proposal
to issue such Bonds; and at said hearing this Governing Body
shall adopt a Resolution determining whether or not to proceed
with the issuance of said Bonds and, if the Borrower and the
Issuer have reached mutually acceptable terms regarding the
Bonds and the loan from the sale thereof, shall also adopt a
Resolution authorizing the issuance, sale and delivery of the
Bonds.
Section 2. The City Clerk of the Issuer is hereby directed
to publish one time, not less than fifteen (15) days prior to
the date fixed for said hearing, in the Iowa City
Press -Citizen, a legal newspaper published and having a general
circulation within the Issuer, a Notice of Intention to issue
said Bond in substantially the following form:
"r
NOTICE OF PUBLIC HEARING ON I14TENTION
ISSUETO
COMMERCIAL DEVELOPMENT REVENUE REFUNDING BONDS
(MID -CITY HOTEL ASSOCIATES -IOWA CITY PROJECT)
Notice is hereby given that a public hearing will be
conducted before the City Council of the City of Iowa City,
Iowa (the "Issuer"), in the Council Chambers at the Civic
Center, 410 E. Washington Street, in said City at 12;00
Noon, on November 25, 1986, on the proposal to issue not to
exceed $8,500,000 principal amount of the City's Commercial
Development Revenue Refunding Bonds (Mid -City Hotel
Associates -Iowa City Project) Series 1986, pursuant
provisions of Chapter 419 of thto the
e Code of Iowa, for the
purpose of defraying all or a portion of the cost of
refunding the outstanding principal amount of and interest
due on the Issuer's Lender -Assisted Commercial Development
Revenue Bonds (Mid -City Hotel Associates -Iowa City Project)
Series 1983 issued on December 27, 1983 in the aggregate
principal amount of $8,105,000, and paying certain
commissions, premiums and expenses incidental thereto. The
Series 1983 Bonds were issued to finance the construction
of a multi -story hotel owned by Mid -City Hotel
Associates -Iowa City, a sole proprietorship (the
"Borrower") and located at 210 S. Dubuque Street, Iowa
City, Iowa. It is contemplated that a Loan Agreement will
be entered into between the Issuer and the Borrower, under
which the Issuer would loan to said Borrower the proceeds
from the sale of the Bonds in return for loan payments from
the Borrower sufficient to pay the principal of, interest
and premium, if any, on such Bonds as the same shall fall
due.
Such Bonds, if issued, and the interest thereon, will be
payable solely out of the revenues derived from the Loan
Agreement and shall never constitute an indebtedness of the
Issuer within the meaning of any state constitutional
provision or statutory limitation, and shall not constitute
nor give rise to a pecuniary liability of the Issuer or a
charge against its general credit or taxing powers.
All local residents who appear at the hearing shall be
given an opportunity to express their views for or against
the proposal to issue the Bonds, and at the hearing, or any
adjournment thereof, the City Council of the Issuer shall
adopt a resolution determining whether or not to proceed
with the issuance of the Bonds.
By Order of the City Council.
narran arr, ity er o th e
City of Iowa City, Iowa
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182R
Section 3. That in order to assure the issuance of the
Bonds by the Issuer with the resulting public benefits which
will flow from the operation thereof, it is deemed necessary
and advisable that the Memorandum of Agreement, in the form
attached hereto as Exhibit "A", be approved and that the
Mayor of the Issuer be and hereby is authorized and directed
to execute said Memorandum of Agreement and the City Clerk
of the Issuer be and hereby is authorized to attest the same
and to affix the seal of the Issuer thereto and said Memo-
randum of Agreement is hereby made a part of this
Resolution.
Section 4. That the Issuer hereby expresses its current
intention to issue the Bonds and loan the proceeds from the
sale thereof to the Borrower for the purpose of financing
the costs of the Project, all upon the Issuer and the
Borrower reaching mutually acceptable terms and conditions
regarding the Bonds and the loan from the sale thereof to
the Borrower.
Section 5. In order that the issuance of the Bonds by
the Issuer will not be unduly delayed, Borrower is hereby
authorized to make such commitments, expenditures and
advances toward the Project as it considers appropriate,
subject to reimbursement from the proceeds of the Bonds when
and if delivered, but otherwise without liability on the
part of the Issuer.
Section 6. That officials of the Issuer are hereby
authorized to take such further action as may be necessary
to carry out the intent and purpose of the Memorandum of
Agreement.
Section 7. All Resolutions and Orders or parts thereof,
in conflict herewith are, to the extent of such conflict,
hereby repealed, and this Resolution shall be in full force
and effect immediately upon its adoption.
Adopted and approved pproved November 10, 1986.
i
City of Iowa City, Iowa
(Seal), Q
W 1 am J,r sco, Mayor
Attest:'
f t�c1 -A
Marren arr, ity eI-
-6-
18209
CLERK'S CER'rIFICA'PF.
I, Marian K. Karr, being first duly sworn do hereby depose
and certify that I am the duly appointed, qualified, and acting
City Clerk of the City of Ioda City, State of Iowa; that as
such I have in my possession, or have access to, the complete
corporate records of said City 'and of its City Council and
officers; that I have carefully compared the transcript hereto
attached with the aforesaid corporate records; and that said
transcript hereto attached is a true, correct and complete copy
of all the corporate records showing the action taken by the
City Council of said City at a meeting open to the public on
November 10, 1986, regarding the issuance of not to exceed
$8,500,000 aggregate principal amount of Commercial Development
Revenue Refunding Bonds (Mid -City Hotel Associates -Iowa City
Project) Series 1986, of the City of Iowa City, Iowa, directing
publication of a notice of intention to issue, scheduling a
public hearing on the proposal to issue the Bonds and
authorizing execution of a Memorandum of Agreement; that said
proceedings remain in full force and effect and have not been
amended or rescinded in any way; that said meeting and all
action thereat was duly and publicly held, with members of the
public in attendance, in accordance with a notice of meeting
and tentative agenda, a copy of which was timely served on each
member of the City 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 City Council (a copy of the face sheet of said agenda being
attached hereto) pursuant to the local rules of the City
Council and the provisions of Chapter 21, Iowa Code, and upon
reasonable advance notice to the public and media at least
twenty-four hours prior to the commencement of the meeting as
required by said law.
Witness my hand and the Corporate Seal of said City hereto
affixed this 10th day of November, 1986.
r
(Seal)'' Ma ian K. Karr, City Clerk
State :of Iowa )
SS:
County of Johnson )
Subscribed and sworn to before me this day, the date last
above written.
.I Seal) Notary Public
J ,
Mr
(This Notice to be Posted)
NOTICE AND CALL OF MEETING
Governmental Body: The City Council of
Iowa City, Iowa
Date of Meeting: November 10, 1986
Time of Meeting: 8:00 A.M.
Place of Meeting: Council Chambers
Civic Center
Iowa City, Iowa
PUBLIC NOTICE IS HEREBY GIVEN that the above-mentioned
governmental body will meet at the date, time and place above
set out. The tentative agenda for said meeting is as follows:
1. Resolution Regarding the Issuance of Not to
Exceed $8,500,000 Aggregate Principal Amount of
Commercial Development Revenue Refunding Bonds
(Mid -City Hotel Associates -Iowa City Project)
Series 1986, of the City of Iowa City, Iowa,
Directing Publication of a Notice of Intention to
Issue, Calling a Public -Hearing on the Proposal to
Issue said Bonds and Authorizing Execution of a
Memorandum of Agreement.
2. Such additional matters as are set forth on
the additional 1 page(s) attached hereto
(attach copy of agenda).
This notice is given at the direction of the Mayor,
pursuant to Chapter 21, Iowa Code, as amended, and the local
rules of said governmental body.
all
Margan
K.
Karr,
City
clerk �f the
City
of
Iowa
City,
Iowa
all
EXHIHI•r "A"
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT is between the City of Iowa
City, Iowa, party of the first part (the "Issuer"), and
Mid -City Hotel Associates -Iowa City, a sole proprietorship,
party of the second part (the "Borrower").
1. Preliminary Statement. Among the matters of mutual
inducement which have resulted in the execution of this
Agreement are the following:
(a) The Issuer is an municipal corporation of the State of
Iowa, authorized and empowered by the provisions of Chapter 419
of the Code of Iowa (the "Act"), to issue Commercial
Development Revenue Refunding Bonds for the purpose of
defraying all or a portion of the cost of refunding the
outstanding principal amount of any series of bonds issued by
the Issuer under the Act, to pay accrued interest due thereon
and to pay any commissions, premiums or expenses to be paid in
connection with such refunding for the purpose of providing
financial savings to the party responsible for repaying the
loan of the proceeds of said bonds; and
(b) In order to provide. significant financial savings to.
the Borrower, the Issuer proposes to issue its Commercial
Development Revenue Refunding Bonds (the "Bonds"
to the Borrower the proceeds from the sale of the Bondsotooan
enable the Borrower to finance the cost of refunding the
outstanding principal amount of and interest due on the
Issuer's Lender -Assisted Commercial Development Revenue Bonds
(Mid -City Hotel Associates -Iowa City Project) Series 1983
issued on December 27, 1983 in the aggregate principal amount
of $8,105,000, and paying certain commissions, premiums and
expenses incidental thereto (the "Project"), and
i (c) commence It is considered essential that work relating to o
befretcommencingtheProject
athe
esthaBorrower desires
the sale of
rethe
date.However,
satisfactory assurances from the Issuer that the proceeds from
the Bonds of the Issuer will be made available in
an amount sufficient to finance all or a portion of the cost of
the Project, which cost is presently estimated not to exceed
$8,5b0,000,
(d) Representatives of the Issuer have indicated the
willingness of the Issuer to
financing and the Issuer has advised theroceed hBorrowerect that,�csubject
to due compliance with all requirements of law and the
obtaining of all necessary consents and approvals and to the
happening of all acts, conditions and things required to exist,
happen and be performed precedent to and in connection with
such financing in due time, form and manner as required by law,
the Issuer, by virtue of such statutory authority as may now
exist or may hereafter be conferred, will issue and sell its
Bonds in an amount sufficient to finance all or a portion of
the cost of the Project.
2. Undertakings on the Part of the Issuer. The Issuer
agrees as follows:
(a) That it will authorize, or cause to be authorized, the
iii issuance and sale of an issue of its Bonds, pursuant to the
terms of the Act as then in force, in an aggregate principal
amount sufficient to finance all or a portion of the cost of
the Project, which cost is presently estimated not to exceed
$8,500,000.
(b) That it will cooperate with Borrower to sell the Bonds
upon mutually agreeable terms, and it will adopt, or cause to
be adopted, such proceedings and authorize the execution of
such documents as may be necessary or advisable for the
authorization, issuance and sale of the Bonds and the financing
of the Project as aforesaid, and the entering into a Loan
Agreement with the Borrower with respect to the Project, all as
shall be authorized by law and mutually satisfactory to the
Issuer and the Borrower.
(c) That the aggregate basic payments (i.e. the payments
to be used to pay the principal of, premium, if any, and
interest on the Bonds) payable under the Loan Agreement shall
be such sums as shall be sufficient to pay the principal of,
interest and redemption premium, if any, on the Bonds as and
when the same shall become due and payable.
(d) That it will take or cause to be taken such other acts
and adopt such further proceedings as may be required to
implement the aforesaid undertakings or as it may deem appro-
priate in pursuance thereof.
3. Undertakings on the Part of the Borrower. The Borrower
covenants and agrees as follows:
(a) That it will cooperate with the Issuer to sell the
Bonds in an aggregate principal amount as above stated;
provided, however, that the terms of the Bonds and of the sale
and delivery thereof shall be mutually satisfactory to the
Issuer and the Borrower.
-2- loll.
W That contemporaneously with the sale of the Bonds it
will execute a Loan Agreement with the Issuer under the terms
of which the Borrower will obligate itself to pay to the Issuer
sums sufficient in the aggregate to pay the principal of,
interest and redemption premium, if any, on the Bonds as and
when the same shall become due and payable, such instrument to
contain other provisions required by law and such other
provisions as shall be mutually acceptable to the Issuer and
the Borrower.
(c) That it will take such further action and adopt such
further proceedings as may be required to implement its
aforesaid undertakings or as it may deem appropriate in
pursuance thereof.
4. General Provisions.
(a) All commitments of the Issuer under paragraph 2 hereof
and of the Borrower under paragraph 3 hereof are subject to the
condition that on or before December 31, 1986 (or such other
date as shall be mutually satisfactory to the Issuer and the
Borrower), the Issuer and the Borrower shall have agreed to
mutually acceptable terms for the Bonds and of the sale and
delivery thereof, and mutually acceptable terms and conditions
of the documents referred to in paragraph 3 and the proceedings
referred to in paragraphs 2 and 3 hereof.
this
paragraphWtake er or n
place within the ot the ntime ts eset oforth rth noraany fextension
thereof, the Borrower agrees that it will reimburse the Issuer
for l
-ocket expenses
which the eIssuer lmay nincur, including cbut unot flimited to, legal
fees, printing and publication costs and filing fees arising
from the execution of this Agreement and the performance, or
preparation to perform by the Issuer of its obligations here-
under, or done at the request of the Borrower.
(c) All commitments of the Issuer hereof are further
subject to the conditions that the Issuer, and its elected and
appointed officials, shall in no event incur any liability for
any act or omission hereunder, and that the Bonds described
i herein shall not constitute an indebtedness of the Issuer
within the meaning of any constitutional or statutory provision
and shall not constitute nor give rise to a pecuniary liability
of the Issuer or a charge against its general credit or taxing
powers.
(d) It is expressly understood by both parties to this
Memorandum of Agreement that its execution by the Issuer is
intended as an expression of the Issuer's current intention to
proceed with the issuance of the Bonds. The execution of
this Memorandum of Agreement by the Issuer is not intended to
nor does it create a binding commitment of the Issuer to
proceed with the issuance of the Bonds. It is further
understood that the issuance of the Bonds are subject to
further review by the City Council of the Issuer and is
conditioned upon, among other things, full compliance of all
provisions of the Industrial Revenue Bond Policy and Procedures
for the City of Iowa City, Iowa
(d) Preparation of all resolutions, agreements,
instruments, certificates or other documents in final form for
adoption and execution shall be the sole responsibility of Bond
Counsel.
IN WITNESS WHEREOF the parties hereto have entered into
this Agreement by their officers thereunto duly authorized as
of the 10th day of November, 1986.
City of Iowa City, Iowa
'(Seal of, City) oatl�
i
William J. Am i co, Mayor
Attest:,', j
i
Marian' K. Karr, city clerK
Mid -City Hotel Associates -Iowa City
f
i
Harry A. Johnson, Jr.
i
i
i
this
nor does citncreate agbinding commitmentuof thereement bthe Isser isnIssueretoed
to
Proceed with the issuance of the Bonds.
understood that the it is further
issuance of the Bonds are subject to
further review by the City Council of the Issuer and is
conditioned upon, among other things, full compliance of all
Provisions of the Industrial Raw&..,,. o__.
(d) Preparation of all resolutions, agreements,
instruments, certificates or other documents in final form for
adoption and execution shall be the sole
Counsel. responsibility of Bond
IN WITNESS WHEREOF the parties hereto have entered into
'this Agreement by their officers thereunto duly authorized as
Of the •1_0th. day of November, 1986.
�^
,..••"••.. City of Iowa City, Iowa
am
CO
AS
9C.
Marron arr, ty or
Mid -City Hotel Associates -Iowa City
arry o neon�r� �
12201
M
CITY OF IOWA CITY
CMC CENTER 410 E. WASHNGTON Si. IOWA CITY, IOWA 52240 (319) 356-5000
TO: BILL AMBRISCO, LARRY BAKER, DARREL COURTNEY, KATE DICKSON, JOHN
MCDONALD, GEORGE STRAIT, ERNEST ZUBER.
You and each of you are hereby notified that pursuant to the authority i
vested in the Mayor of the City of Iowa City, Iowa, or under State Law
and the Ordinances of the City of Iowa City, Iowa, as Mayor I hereby
call a special meeting on, 19 86 l
atg:00 o'clock M. to ab a el in t e r"'�, ;l
Chambers the Civic Center of Iowa City, Iowa.
The meeting.is called for the purpose of scheduling public hearing for
11/25; authorizing publication of notice; preliminary approval to issuance
OT bunds, ang authorizing execution of memorandum of agreement re Mid -City Hotel Assoc.
Dated at Iowa City, Iowa this 7th day of Nnvamhpr 1986 .
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/"'oj
4MAR w
ATTEST: 44"-a-624. ne J
CITY CLERK
11201