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Home My WebLink AboutA003 - Email dated April 21 from Finance Diane Voss From: Duane Pitcher Sent: Tuesday, April 21, 2020 4:37 PM To: Steve Schainker; Diane Voss; Mark Lambert Subject: RE: [EXTERNAL] City of Ames 427B Industrial Abatement To all, I spoke to Bob Josten (Mark and I discussed earlier) and 427E does require that city's set a term, however he is of the opinion that the term can be whatever the council decides including an indefinite term. The council can always repeal. Bob has sent a confirming e-mail. https://www.legis.iowa.gov/docs/ico/chapter/427B.pdf Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 From:Josten.Robert@dorsey.com <Josten.Robert@dorsey.com> Sent:Tuesday, April 21, 2020 4:02 PM To: Duane Pitcher<Duane.Pitcher@cityofames.org> Subject: RE: [EXTERNAL] City of Ames 427E Industrial Abatement Please call me on my cell phone (515-556-8186 1 have a question and several thoughts Robert E.Josten Partner DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515 283,1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient Use or distribution by an unintended recipient is prohibited,and may be a violation of law If you believe that you received this e-mail in error,please do not read this e-mail or any attached items Please delete the e-mail and all attachments including any copies thereof,and inform the sender that you have deleted the e-mail.all attachments and any copies thereof Thank you From: Duane Pitcher<Duane.Pitcher@cityofames.org> Sent: Tuesday, April 21, 2020 3:50 PM To:Josten, Robert<Josten.Robert@dorsey.com> 1 Cc: Steve Schainker<Steve.Schainker@cityofames.org>; Diane Voss<diane.voss@cityofames.or6>; Mark Lambert <Mark.Lambert@cityofames.org> Subject: [EXTERNAL] City of Ames 427B Industrial Abatement Bob, The City of Ames is in the process of renewing our Industrial Abatement Ordinance per 427B of the Iowa Code. Diane looked back and found that we had used different numbers of years when we have adopted these ordinances, the last being 10 years. It looks to me that Cities are still required to set a length of time that the ordinance is effective. We'd like to know if you know of any strategies for setting a longer or shorter term or is it purely a council decision on supporting economic development. Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 z Diane Voss From: Josten.Robert@dorsey.com Sent: Tuesday, April 21, 2020 4:32 PM To: Duane Pitcher Cc: Steve Schainker; Diane Voss; Mark Lambert Subject: RE: [EXTERNAL] City of Ames 427B Industrial Abatement Confirming our conversation, it is my opinion that a city may comply with the statutory requirement in Chapter 427E that the "length of time for eligibility" be stated in the ordinance by declaring that the ordinance will continue until repealed, or will continue "indefinitely," or something similar. It is my sense that most cities do not have an expiration date in their 427B ordinances. Robert E.Josten Partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515.283.1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited,and may be a violation of law If you believe that you received this e-mail in error,please do not read this e-mail or any attached items Please delete the e-mail and all attachments, including any copies thereof and inform the sender that you have deleted the e-mail. all attachments and any copies thereof Thank you From: Duane Pitcher<Duane.Pitcher@cityofames.org> Sent: Tuesday, April 21, 2020 3:50 PM To:Josten, Robert<Josten.Robert@dorsey.com> Cc: Steve Schainker<Steve.Schainker@cityofames.org>; Diane Voss<diane.voss@cityofames.org>; Mark Lambert <Mark.Lambert@cityofames.org> Subject: [EXTERNAL] City of Ames 427E Industrial Abatement Bob, The City of Ames is in the process of renewing our Industrial Abatement Ordinance per 427E of the Iowa Code. Diane looked back and found that we had used different numbers of years when we have adopted these ordinances, the last being 10 years. It looks to me that Cities are still required to set a length of time that the ordinance is effective. We'd like to know if you know of any strategies for setting a longer or shorter term or is it purely a council decision on supporting economic development. Thanks, Duane 1 Diane Voss From: Josten.Robert@dorsey.com Sent: Tuesday, April 21, 2020 4:34 PM To: Duane Pitcher; gerlachs@pfm.com Cc: Roger Wisecup; Tina Stanley; Steve Schainker; Diane Voss; Mark Lambert Subject: RE: [EXTERNAL] Summer 2020 Bond Issue This would qualify as an "essential corporate purpose," and, accordingly, could be incorporated into your proposed GO bond issue after the Council sets a date for and holds a public hearing on the maximum amount or "not to exceed" amount to be borrowed. I can put together the initial resolution setting the hearing whenever you are ready for it. Robert E.Josten Partner DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 P: 515.283.1000 F: 515.283.1060 C: 515.556.8186 . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient Use or distribution by an unintended recipient is prohibited.and may be a violation of law If you believe that you received this e-mail in error,please do not read this e-mail or any attached items Please delete the e-mail and all attachments, including any copies thereof and inform the sender that you have deleted the e-mail.all attachments and any copies thereof Thank you From: Duane Pitcher<Duane.Pitcher@cityofames.org> Sent: Tuesday, April 21, 2020 4:19 PM To:Josten, Robert<Josten.Robert@dorsey.com>; Susanne Gerlach - Public Financial Management (gerlachs@pfm.com) <gerlachs@pfm.com> Cc: Roger Wisecup<Roger.Wisecup@cityofames.org>; Tina Stanley<Tina.Stanley@cityofames.org>; Steve Schainker <Steve.Schainker@cityofames.org>; Diane Voss<diane.voss@cityofames.org>; Mark Lambert <Mark.Lambert@cityofames.org> Subject: [EXTERNAL] Summer 2020 Bond Issue Bob and Susanne, We've had some bids come in on a project to extend sanitary sewer lines to an industrial area east of 135. The bids have come in high and we are considering other funding options. The amount of funding needed will be $2.5M-$2.7M and we are considering adding this to our planned 2020 GO Bond issue as debt to be abated by sewer revenues. Please let us know the steps we would need to take and timing to add this to our bond issue. For Susanne—we are considering issuing this portion with a 20 year maturity and the rest with a 12 year. Can you go over some of the plus/minus and having a part of the issue out 20 years? As I recall when we did this with a Resource Recovery abated amount several years back, the bids on the longer part of a larger 12 year schedule were not very favorable. I have some concerns in the current environment that there may not be much demand for the 20 year paper. t Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114