HomeMy WebLinkAbout~Master - Hearing to Enter into a Loan Agreemen and to Borrow Money thereunder for an Esential Purpose Loan, and General Purpose Loans for the Downtown Plaza and Municipal Fire Station Ames/419370-68/Hres(part rr),Combine&Prelevy GO CP LAs
RESOLUTION NO. 22-119
Resolution taking additional action on proposals to enter into General Obligation
Loan Agreements, providing for the combination of certain General Obligation
Loan Agreements and providing for the levy of taxes to pay the same
WHEREAS, the City of Ames (the "City"), in Story County, State of Iowa has 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 Code 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, 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, pursuant to the provisions of Section 384.24A of the Code of Iowa,
heretofore proposed to enter into a loan agreement(the"Essential Purpose Loan Agreement")and
to borrow money thereunder in a principal amount not to exceed $11,225,000 for the purpose of
paying the costs, to that extent, of (1) constructing street, alley, bridge, sidewalk, storm water
drainage and incidental infrastructure improvements; (2) acquiring and installing street lighting,
signage and signalization improvements; and (3) acquiring vehicles and equipment for the
municipal fire department, and pursuant to law and a notice duly published, the City Council has
held a public hearing on such proposal on March 8, 2022; and
WHEREAS, the City also proposed to enter into a loan agreement (the "General Purpose
Loan Agreement I") and to borrow money thereunder in a principal amount not to exceed
$700,000, pursuant to the provisions of Section 384.24A of the Code of Iowa, for the purpose of
paying the costs, to that extent, of undertaking Downtown Plaza improvements and in lieu of
calling an election upon such proposal, has published notice of the proposed action and has held a
hearing thereon, and as of March 8, 2022, no petition had been filed with the City asking that the
question of entering into the General Purpose Loan Agreement 1 be submitted to the registered
voters of the City; and
WHEREAS,the City further proposed to enter into a loan agreement(the"General Purpose
Loan Agreement 2"and together with the Urban Renewal Loan Agreement, the Essential Purpose
Loan Agreement and the General Purpose Loan Agreement 1, the "Loan Agreements") and to
borrow money thereunder in a principal amount not to exceed$350,000,pursuant to the provisions
of Section 384.24A of the Code of Iowa, for the purpose of paying the costs, to that extent, of
undertaking concrete surfacing improvements for a municipal fire station and in lieu of calling an
election upon such proposal, has published notice of the proposed action and has held a hearing
thereon, and as of March 8,2022, no petition had been filed with the City asking that the question
of entering into the General Purpose Loan Agreement 2 be submitted to the registered voters of
the City; and
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Ames/419370-68/Hras(part rr).Combine g Prelevy GO CP LAs
WHEREAS, pursuant to the provisions of Section 384.28 of the Code of Iowa, the City
intends to combine its authority under the Loan Agreements and to enter into a single loan
agreement (the "Loan Agreement"), and to issue General Obligation Corporate Purpose Bonds,
Series 2022 (the "Bonds") in evidence of its obligation thereunder and anticipates that principal
and interest will come due on the Bonds before July 1, 2023; and
WHEREAS, it is now necessary to make provision for the levy of a debt service property
tax in the 2022-2023 fiscal year for the payment of such anticipated principal and interest;
NOW, THEREFORE, It Is Resolved by the City Council of the City of Ames, Iowa, as
follows:
Section 1. The Loan Agreements are hereby combined into the Loan Agreement. The
City Council hereby determines to enter into the Loan Agreement in the future and orders that the
Bonds be issued at such time, in evidence thereof. The City Council further declares that this
resolution constitutes the "additional action"required by Section 384.24A of the Code of Iowa.
Section 2. For the purpose of providing for the levy and collection of a direct annual
tax sufficient to pay the principal of and interest on the Bonds as the same become due, there is
hereby ordered levied on all the taxable property in the City the following direct annual tax:
For collection in the fiscal year beginning July 1, 2022,
sufficient to produce the net annual sum of$1,511,628.
provided, however, that at the time the Bonds are issued, the actual tax levy amounts required to
pay the principal of and interest on the Bonds in each year shall be determined based upon the
interest rate or rates at which the Bonds are issued, and this resolution shall be supplemented by a
resolution of the City Council to provide for such actual and necessary tax levy amounts.
Section 3. A certified copy of this resolution shall be filed with the Story County
Auditor, and said Auditor is hereby instructed to enter for collection and assess the tax hereby
authorized. When annually entering such taxes for collection, the County Auditor shall include
the same as a part of the tax levy for Debt Service Fund purposes of the City, and when collected,
the proceeds of the taxes shall be converted into the Debt Service Fund of the City and set aside
therein as a special account to be used solely and only for the payment of the principal of and
interest on the Bonds hereby authorized and for no other purpose whatsoever.
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.
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DORSEY & WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA
Ames/419370-68/Hros(part rr).Combine&Prelevy GO CP LAs
Passed and approved March 8, 2022.
Mayor -
Attest:
City Clerk
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DORSEY & WHITNEY LLP,ATTORNEYS, DES MOINES, IOWA