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HomeMy WebLinkAboutA002 - Resolution No. 24-091 adopted February 27, 2024 Ames/419370-75/Set I-Irg GO CP LA RESOLUTION NO. 24-091 Resolution setting the date for public hearing and additional action on proposal to enter into a General Obligation Loan Agreement and to borrow money thereunder WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa heretofore proposed to enter into a General Obligation Urban Renewal Loan Agreement(the"Urban Renewal Loan Agreement")pursuant to the provisions of Sections 384.24A and 384,24.3(q) of the Cade of Iowa, and to borrow money thereunder in a principal amount not to exceed $21,200,000 for the purpose of paying the costs, to that extent, undertaking a project in the Downtown Reinvestment District Urban Renewal Area consisting of constructing, furnishing and equipping an indoor aquatic center and associated grounds and facilities as further detailed in the urban renewal plan approved by the City Council on August 24, 2021 (the "Urban Renewal Project"), and in lieu of calling an election upon such proposal, has published notice of the proposed action, including notice of the right to petition for an election, and has held a hearing thereon, and as of September 14, 2021, no petition had been filed with the City asking that the question of entering into the Urban Renewal Loan Agreement be submitted to the registered voters of the City; and WHEREAS,the City has used a portion of its authority to borrow under the Urban Renewal Loan Agreement for the prior issuance of bonds,but has reserved the right to use the remainder of its authority thereunder for additional debt issuances; and WHEREAS,the City,pursuant to the provisions of Section 384.24A of the Code of Iowa, now proposes to enter into an additional loan agreement(the"Essential Purpose Loan Agreement") and to borrow money thereunder in a principal amount not to exceed $2,000,000 for the purpose of paying the costs, to that extent, of acquiring and installing. street/traffic system equipment; undertaking improvements to the Ada Hayden Heritage Park; and undertaking improvements to the municipal airport (the `Essential Purpose Project" and together with the Urban Renewal Project,the"Projects"), and it is necessary to fix a date of meeting of the City Council at which it is proposed to take action to enter into the Essential Purpose Loan Agreement and to give notice thereof as required by such law; NOW, THEREFORE, Be It Resolved by the City Council of the City of Ames, Iowa, as follows: Section 1. This City Council shall meet on March 26, 2024, at the City Hall Council Chambers, Ames, Iowa, at 6 o'clock p.m., at which time and place hearings will be held and proceedings will be instituted and action taken to enter into the Loan Agreement described in the preamble hereof. Section 2. The City Clerk is hereby directed to give notice of the proposed action on the Essential Purpose Loan Agreement setting forth the amount and purpose thereof,the time when and place where the said meeting will be held by publication at least once, not less than four (4) and not more than twenty (20) days before the date of said meeting, in a legal newspaper which has a general circulation in the City, The notice shall be in substantially the following form: -2- DORSEY&WHITNEY LLP,A7"fORNEYS,DES MOINES,IOWA Ames/419370-751 Set Hrg GO CP LA NOTICE Or PROPOSED ACTION TO INSTITUTE PROCEEDINGS TO ENTER INTO A LOAN AGREEMENT AND TO BORROW MONEY THEREUNDER IN A PRINCIPAL AMOUNT NOT TO EXCEED$2,000,000 (GENERAL OBLIGATION) The City Council of the City of Ames, Iowa(the "City"),will meet on March 26, 2024, at the City Hall Council Chambers, Ames, Iowa, at 6 o'clock p.m., for the purpose of instituting proceedings and taking action on a proposal to enter into a loan agreement(the"Loan Agreement") and to borrow money thereunder in a principal amount not to exceed $2,000,000 for the purpose of paying the costs, to that extent, of acquiring and installing street/traffic system equipment; undertaking improvements to the Ada Hayden Heritage Park; and undertaking improvements to the municipal airport. The Loan Agreement is proposed to be entered into pursuant to authority contained in Section 384.24A of the Code of Iowa and will constitute a general obligation of the City, At that time and place, oral or written objections may be filed or made to the proposal to enter into the Loan Agreement, After receiving objections, the City may determine to enter into the Loan Agreement, in which case, the decision will be final unless appealed to the District Court within fifteen(15) days thereafter. By order of the City Council of the City of Ames,Iowa. Renee Hall City Clerk -3- DORSEY&.WHITNEY LLP,ATTORNEYS,DES MOINES,IOWA Aires/419370-75/Set Hrg 00 CP LA Section 3. Pursuant to Section 1,150-2 of the Income Tax Regulations (the "Regulations") of the Internal Revenue Service, the City declares (a) that it intends to undertake the Projects which are reasonably estimated to cost approximately $2,000,000, (b) that other than (i) expenditures to be paid or reimbursed from sources other than the issuance of bonds, notes or other obligations(the"Bonds"),or(H)expenditures made not earlier than 60 days prior to the date of this Resolution or a previous intent resolution of the City, or(iii)expenditures amounting to the lesser of $100,000 or 5% of the proceeds of the Bonds, or (iv) expenditures constituting preliminary expenditures as defined in Section 1.15 0-2(f)(2) of the Regulations, no expenditures for the Projects have heretofore been made by the City and no expenditures will be made by the City until after the date of this Resolution or a prior intent resolution of the City, and (c) that the City reasonably expects to reimburse the expenditures made for costs of the City out of the proceeds of the Bonds. This declaration is a declaration of official intent adopted pursuant to Section 1.150-2 of the Regulations. Section 4. All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. Section 5. This resolution shall be in full force and effect immediately upon its adoption and approval, as provided by law. Passed and approved February 27, 2024. w Mayor Attest: e,4w- City Cle k -4- DORSEY&WHITNEY LLP,A'17ORNEYS,DES MOINES,IOWA