HomeMy WebLinkAbout1074 Refunding Bonds BLLL NO. 2011-022 ORDINANCE NO. �� 7"7
AN ORDINANCE AUTHORIZING THE BORROWING OF NOT TO EXCEED
$2,620,000 FROM THF. INDUSTRIAL DEVELOPMENT AUTHORITY OF THE
CITY OF RIVERSIDE, MISSOURI, IN CONNF.CTION WITH THE
REFUNDING OF CERTAIN RONDS ISSUEll TO FUND CERTAIN
REDEVELOPMENT CO5T5 DESCRIBED IN A TAX INCRF,MENT
FINANCING PLAN PREVIOUSLY APPROVED BY THE CITY; AI'PItOVING
THE FORM OF AND AUTHORIZING THE EXECUTION OF A FINANCING
AGI2EEMENT WITH THE INDUSTRiAL DEVELOPMENT AUTH012ITY OF
THE CITY OF RIVERSIDF, MIS50U12I; PROVIDING FOR THE
ADMINISTRATION OF THE SPECIAL ALLOCATION FiTNI) PRF.ViOUSLY
CREATED BY THE CITY; AND PROVII)iNG FOR THE EXECUTION OF
CFRTAiN DOCUMENTS ANll PItESCKIBING OTHER MATTERS RELATING
THERETO.
WHEREAS, the City of Riverside, Missouri (the "City"), is a fourth class city and political
subdivision of fhe State of Missouri duly created, organized and existing under the constitution and laws
of the State of M issouri; and
WHEREAS, tlie Real Property Tax Inerement Allocation Redevelopment Act, Sections 99.800
to 99.865 of the Revised Statutes of Missouri, as amended (the "Act"), authorizes municipalities to form
tax increment financing commissions, and to undertake redevelopment projects in blighted, conservation
or economic development areas, as defined in the Act; and
WHEREAS, the City passed Ordinance No. 95-64 on Seplember 12, 1995, establishing in
accordance with the requirements of the Act the Tax Increment Financing Commission of Riverside,
Missouri (the "Commissiod');
WHEREAS, the City has passed Ordinance No. 96-72 in connection with various findings and
determination required by the Act, including but not limited t« (i) designation of a"redevelopment area,"
as defined in the Act (as subsequently amended pursuant to ordinances 1999-34 and 2007-068, the
"Redevelopment Area"), and (ii) approval of a redevelopment plan, as subsequently amended by
ordinances 1997-10, 1999-34, 1999-61, 2002-130, 2006-093 and 2007-0G8 (as amended, the
"Redevelopment Plan"); and
WHEREAS, the City has previously adopted tax increment financing with respect to portions of
the Redevelopment Area through the passage of ordinances 1996-72, 1997-I 1, 1997-12, 1997-13, 1997-
95, 1998-41, 1999-34, 1999-94, 2001-115, 2002-130, 2005-154, 2006-10 and 2006-093; and
WHEREAS, the City has previously issued its Tax Increment Revenue Bonds (L-385 Levec
Project), Series 1998, issued in the original principal amount of $1,000,000 and currently outstanding in
the amount of $285,000, Tax Increment Revenuc Bonds (L-385 Levee Project), Series 1999, issued in the
original principal amount of $1,400,000 and currently outstanding in the amount of $730,000, and Tax
Inerement Revenue Bonds (I,-385 Levee Yroject), Scries 2002, issued in the original principal amount of
$1,300,000 and currently outstanding in the amount of $1,300,000 (collectively, the "Refunded Bonds");
and
WHEREAS, the City has determined that it is necessary and desirable, to adopt this Ordinance in
order to provide for the refunding of the Refunded Bonds by obtaining a loan from The Industrial
Development Authority of the City of Riverside, Missouri (the "Authority"), in the principal amount of
not to exceed $2,620,000 (the "Loan") pursuant to the terms of the Financing Agreement dated as of the
first day of the month that the hereinafter defined Bonds are issued and between the City and the
Authority;
WHEREAS, the City will apply the proceeds of the Loan to (1) refund the Refunded Bonds, and
(2) pay the costs of incurring the Loan and issuing tlie Sonds; and
WHFRF,AS, it is hereby found and determined that it is necessary and advisable and in the best
interest of the City and of its inhabitants that the City obtain the Loan from the Authority in the form and
manner as hereinafter provided to provide funds for the above-described purpose and to provide for the
repayment of said Loan all as more fully described herein;
NOW, THEREFORE, BE IT ORDAiNED BY THE BOARD OF ALDERMEN OF THE
CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS:
ARTICLE I
DEFINITIONS
Sectioo 101. Definitions of Words and Terms. in addition to words and terms defined
elsewhere in this Ordinance, the following capitalized words and terms as used in this Ordinance shall
have the following meanings:
"Act" means the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to
99.865, inclusive, of the Revised Statutes of Missouri, as amended.
"Additional Payments" shall have the meaning set forth in the Financing Agreement.
"Authority" means The Industrial Development Authority of the City of Riverside, Missouri, an
industrial development c�rporation formed under Chapter 349 of the Revised Statutes of the State of
Missouri.
`Bonds" means the not to exceed $2,620,000 Tax Increment Refunding Revenue Bonds (L-385
Levee Project) Series 201 1 A, issued by the Authority.
`Business Day" means a day other than a Saturday, Sunday or holiday on which the Trustee is
scheduled in the normal course of its operations to be open to the public for conduct of its banking
operations.
"City" means the City of Riverside, Missouri, and any successors or assigns.
"Economic AeNvity Tax Aeeount" means the Economic Activity Taac Account in the Special
Allocation Fund described in Section 401 hereof.
"Economic Activity Tax Revenues" means fifty percent (50°/a) of the total additional revenue
from sales taxes which are imposed by the City or other taxing districts, and which are generated by
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ewnomic activities within the Redevelopment Area on a lot, block, tract or parcel over the amount of
such taxes generated by economic activities within the Redevelopment Area in the calendar year prior to
the adoption of taac increment financing related to the applicable lot, block, tract or parcel, while tax
increment financing remains in effect, but excluding (i) taxes imposed on sales or charges for sleeping
rooms paid by transient guests of hotels and motels, licenses, fees or special assessments and (ii) personal
property taxes, other than Payments in Lieu of Taxes, all as determined in accordance with the Act.
"Financing AgreemenY' means the Financing Agreement dated as of the first day of the month
that the Bonds are issued, by and between the Aulhority and the City pursuant to which the Authority will
loan the proceeds of the Bonds to the City.
"Incremental Tas Revenues" means, collectively, New State Revenues, Payments in Lieu of
Taxes and, subject to annual appropriation as provided herein, the Economic Activity Tax Revenues.
�°Lodn" means the loan from the Authority to the City made pursuant to the Financing
Agreement.
"Loan Payments" shall have the meaning set forth in the Financing Agreement.
"New State Revenues" means, subject to annual appropriation each year by the General
Assembly of the State of Missouri, one-half of the incremental increase in tlie general revenue portion of
state sales tax revenues received pursuant to Section 144.020 of the Revised Statutes of Missouri, as
amended, excluding sales taxes that are constitutionally dedicated, laxes deposited to the school district
trust fund in accordance with Section 144.701 of the Revised Statutes of Missouri, as amended, sales and
❑se taxes on motor vehicles, trailers, boats and outboard motors and future sales taxes earmarked by law.
"New State Revenues Accaunt" means the New State Revenues Account in the Special
Allocation Fund described in Section 401 hereof.
"Ordinance" means this Ordinance as from time to time amended in accordance with the tenns
hereof.
"Payments in Lieu of Ta�ees" means, when collected by the City, [he payments in lieu of taxes
attributable to the inerease in the current equalized assessed valuation of each taxable lot, block, tract, or
parcel of real property in the Redevelopment Area over and above the certified total initial equalized
assessed value of each such unit of property in the Redevelopment Area on the date that tax increment
f nancing was adopted for such lot, block tract or parcel, all as determined in accordance with the Act.
"PiLOTS Account" means the PILOTS Account in the Special Allocation Fund described in
Secfion 40l hereof.
"Redevelopment Area" means the area described as such in the Redevelopment Plan.
"Redevelopment Costs" means the "redevelopment project costs," as deFned in the Act, that
may be paid through tax increment financing.
"Redevelopment Plan" shall have the meaning set forth in the recitals hereof.
"Refunded Bonds" has the meaning set forth in the recitals hereto.
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"Series 2004 Bonds" means the City's $16,300,000 L-385 Levee Redevelopment Plan Tax
Increment Revenue Bonds (L-385 Levee Project) Series 2004.
"Special Allocation Fund" means the fund by that name ratified and confirmed by Section 401
hereof.
"State" means the State of Missouri.
ARTICLE II
AUTHORIZATION FOR LOAN
Section 201. Authorization for Loan. The City is hereby authorized to borrow from the
Authority a sum of not to exceed $2,620,000 in order to permit the City to (1) refund the Refunded
Bonds, and (2) pay the costs of incurring the Loan and issuing the Bonds.
Section 202. Authorization of Documents. 1n connection with the Loan the City is hereby
authorized to execute and deliver the following documents:
(a) Financing Agreement.
(b) Tax Compliance Agreement dated as of the first day of the month that the Bonds are
issued (the "Tax Compliance AgreemenP') among the Authority, tlie City and UMB
Bank, N.A., as trustee (the "Trustee").
(c) Continuing Disclosure Agreement dated as of the first day of the month that the Bonds
are issued (the "Continuing Disclosure AgreemenP') between the City and the 7'rustee, as
Dissemination Agent.
(d) Bond Purchase Agreement (the "Purchase AgreemenP') between the City, the Authority,
and D.A. Davidson & Co. (the "Purchaser").
(e) Cooperation Agreement dated as of June 1, 2011 between the City, the Authority, UMB
Bank, N.A., Platte County, Missouri and the Riverside-Quindaro [3end Levee District of
Platte County, Missouri (the "Cooperation AgreemenY').
( fl First Supplemental Indenture dated the first day of the month that the Bonds are issued
between the City and iJMB Bank, N.A., as Trustee, which amends and supplements a
Trust indenture dated as of December l, 2004 under which the Series 2004 Bonds were
issued.
(g) Official Statement related to the offering for sale of tlie Bonds, in substantially form of
the Preliminary Official Statcment presented to the Board of Aldermen.
(the "City Documents") in substantially the fonn presented to and reviewed by the Board of Aldermen
(copies of which document shall be tiled in the records of the City), with such changes therein as shall be
approved by ehe officers executing such documents, such officers' signatures thereon being conclusive
evidence of their approval thereof.
SecNon 203. Limited Obli�ations. rxcept as provided herein in Article III hereof, the City
obligation to make Loan Payments and Additional Payments under the Financing Agreement shall be
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subject to annual appropriation and shall not constitute a debt, liability or indebtedness within the
meaning of any constitutional, statutory or charter debt limitation or restriction, all as more fully provided
in the Financing Agreement. Notwithstanding any schedule of payments upon the Loan set foRh in the
Financing Agreement or the Bond Trust Indenture under which the Bonds are issued (the "Indenture"), _
the City shall make payments upon tf�e Loan and shall Ue liable therefor at the times and in the amounts
(including interest, principal, and redemption premium, if any) equal to the amounts to be paid as interest,
principal and redemption premium, if any, whether at maturity or by optional or mandatory redemption
upon all Bonds from time to time outstanding under the Indenture, as turther provided in the Financing
Agreement.
Section 204. Approval of Issuance of Bonds. The City hereby approves the issuance of the
Bonds by the Authority, subject to the following restrictions:
(a) "I'he maximum principal amount of the Bonds shall not exceed $2,620,000.
(b) The True Interest Cost of the Bonds as computed by the Purchaser shall not exceed
4.50%.
(c) The weighted average maturity of the Bonds as computed by the Purchaser shall be
between 3.0 years and 5.0 years.
(d) The final maturity date of the Bonds shall be not later than May 1, 201.
(e) The Purchaser's discount shall not exceed 2.0% of the principal amount of the Bonds.
(fl The issuance of the Bonds, which is for the purpose of refunding the Refunded Bonds,
shall result in a Net Present Value Savings as computed by the Purchaser of at least 5.0%.
(g) The Bonds shall be subject to optional redemption not later than May l, 2015.
Section 205. Execution of Documents. The Mayor, City Administrator, Finance Director and
the City Clerk are hereby authorized and directed to execute and deliver the City Documents such other
documents, certificates and instruments as may 6e necessary or desirable to carry out and comply with the
intent of this Ordinance.
Section 206. Ratificatiun of Apurovals and Desi¢nations. The City hereby ratifies and
confirms the approva) of the Redevelopment Plan, including all amendments thereto, the designation of
the Redevelopment Area, including all amendments thereto, and the approval of tax increment financing
for portions of the Redevelopment Area as described in the recitals hereto.
Section 207. Refundin� of Refunded Bonds. The City hereby authorizes the refunding and
redemption of the Refunded Bonds on the earliest practical date, and the officers of the City, including the
Mayor, City Administrator, Finance Director and the City Clerk, are hereby authorized to execute such
documen[s and take such actions as are necessary to so redeem the Refunded Bonds.
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ARTICLE III
SECURITY FOR THE LOAN
Section 301. Security for the Loan.
(a) Except as provided in the following paragraph, the City's obligation to make Loan
Payments and Additional Payments pursuant to the Financing Agreement shall be subject to annual
appropriation as provided in Section 3.5 of the Financing Agreement.
Notwithstanding the foregoing, Payments in Lieu of Taxes and New State Revenues deposited
into die Special Allocation Fund are not subject to annual appropriation and are pledged by the City
pursuant SecNon 302 of this Ordinance to secure the Loan Payments and Additional Payments.
(b) As additional security for the City's obligation to make Loan Payments and Additional
Payments pursuant to the Financing Agreement, such payments shall be payaUle from and secured as to
the payment of principal and interest Uy (a) a pledge of the Payments in Lieu of Taxes deposited in the
P[LOTS Account of the Special Allocation Fund, (b) a pledge of the New State Revenues deposited in the
New State Revenues Account of the Special Allocation Fund and (c) subject to annual appropriation by
the Board of Aldern�en as provided in Section 403 hereof, the Gconomic Activity Taac Revenues
deposited in the Economic Activiry 7'ax Account of the Special Allocation Fund. The taxing power of the
City is not pledged to the payment of the Loan either as to principal or interest. The Loan shall not
constitute a general obligation of the City, nor shall it constitute an indebtedness of the City within the
meaning of any constitutional, stalutory or charter provision, limitation or restriction.
(c) The obligation of the City to make Loan Payments shall be on a parity with the obligation
of the City to make payments with respect to the Series 2004 Bonds.
Section 302. Pledee of Certain Funds. The moneys and securities held in, and moneys and
securities to be deposited in, the Special Allocation Fund are hereby pledged to the payment of the Loan;
provided, however Economic Activity Taxes deposited therein shall remain subject to annual
appropriation as described in Section 303 hereof.
Section 303. Annual Appropriation of Economic Activity Taxes. The City currently
intends to appropriate in each year the Economic Activity Tax Revenues in the Special Allocation Fund to
the repayment of the Loan. ln preparing the City's annual budget the City Administrator or such other
office of the City at any time charged with the responsibility of formulating budget proposals shall
include or cause to be included in each budget submitted to the Board of Aldermen such appropriation.
Notwithstanding the foregoing, the decision of whether or not to appropriate is solely within tlte
discretion of the Board of Aldermen. In the event the Board of Aldermen votes to not appropriate the
Economic Activity Tax Revenues, the City shall immediately notify in writing the following persons of
such Event of Nonappropriation: (i) the Authority, (ii) UMB Bank, N.A., as trustee for the Bonds, (iii)
each nationally recognized municipal securities repository, and (iv) each nationally recognized rating
agency which currently maintains a rating on any of the City's bonds.
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ARTICLE IV
SPECIAL ALLOCATION FUND
Section 401. Ratification of Special Allocation Fund. There is hereby ratified the 5pecial
Allocation Fund, and within the Special Allocatinn Fund, a PILOTS Account, an Economic Activity T�
Account and a New State Revenues Account as previously created therein.
Said fund and accounts shall be segregated and kept separate and apart from all other moneys,
revenues, funds and accounts of the City and shall not be commingled with any other moneys, revenues,
funds and accounts of the City. The funds and accounts referred to above shall be maintained and
administered by the City solely for the purposes and in the manner as provided in this Ordinance and the
Cooperation Agreement so long as any portion of the Loan remains Outstanding and unpaid.
Section 402. Administration of Snecial Allocation Fund. The moneys in the Special
Allocation Fund shall be administered and applied solely for the purposes and in the manner provided in
this Ordinance, the Financing Agreement, the documents related to the Series 2004 Bonds and the
Cooperation Agreement
The City hereby agrees to deposit into the Special Allocation �und as received all Incremental
Tax Revenues. The Incremental 'I'ax Revenues shall be determined, collected and applied in the manner
provided by law. Payments in Lieu of Taxes shall be deposited into the PILOTS Account of the Special
Allocation Fund; subject to annual appropriation as provided in 5ection 303 hereof, all Economic
Activity Tax Revenues shall, as and when received by the City, be paid deposited into the Economic
Activity Tax Account of the Special Allocation Fund; and all New State Revenues as and when received
by the City, be paid deposited into the New State Kevenues Account of the Special Allocation Fund.
ARTICLE V
MISCELLANEOUS PROVISIONS
Section 501. Further Authoritv. The officers of the City, including the Mayor, City
Administrator, Finance Director and the City Clerk, are hereby authorized and directed to execute all
documents, and take such actions as they may deem necessary or advisable in order to carry out and
perform the purposes of lhis Ordinance and to make any changes or additions in this Ordinance and the
foregoing agrecments, statements, instruments and other documents herein approved, authorized and
confirmed which they determine to be in the City's best interest, and the execution or taking of such
action shall be conclusivic evidence of such detern�ination.
Section 502. Severabilitv. If any section or other part of this Ordinance, whether large or
small, is for any reason held invalid, the invalidity thereof shall not affect the validity of the other
provisions of this Ordinance.
Section 503. GoveroinQ Law. This Ordinance shall be governed exclusively by and
construed in accordance with the applicable laws of the State.
Section 504. Effeetive Date. This Ordinance shall take effect and be in full force from and
after its passage by the Board of Aldermen and approval by the Mayor.
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BE IT REMEMBERED that the above was read two times by heading only, passed and
approved by a majority of the Board of Aldermen and APPROVED by the Mayor of the City of
Riverside, Missouri, this 21st day of June, 20l 1.
�r����
Kat leen L. Rose, Mayor
ATTEST:
c= � �°ki.�-t�-� �•�
Robin Littrell, Cify Clerk
,
APPROV-� AS TO FORM:
,
an homps , City Attorney
i
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-w-r-? ��Pl: -r
CITY OF
- RIVERSI�?�
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Upstreom from ordinory.
2950 NW Vivion Road
Riverside, Missouri 64150
MEMO DATE: June 14, 201 I
AGENDA DATE: June 16, 201 I
TO: Industrial Development Authority
FROM: Nancy Thompson, City Attorney
RE: Bond Refunding Resolution
BACKGROUND: Adoption of this resolution allows for the consolidation and refinancing of bonds
issued by the City in 1998, 1999 and 2002 for infrastructure improvements
within the Horizons redevelopment area. The current status of the original
issuances is as follows:
Issue Original Principal Amount Current OutstandinQ
Series I 998 $ I ,000,000 $285,000
Series I 999 $ I ,400,000 $730,000
Series 2002 $ I ,300,000 $ I ,300,000
The refinancing is estimated to result in a savings of $100,000 to the City. The
transaction is being handled by Gary Anderson and Rick McConnell with the law
firm of Gilmore & Bell in cooperation with Charles Zitnik with the underwriting
firm of D.A. Davidson. Gary and Charles will be present at the meeting to
explain the transaction in greater detail and answer any questions you may have.
FISCAL IMPACT: Savings of approximately $100,000.
RECOMMENDATION: Staff recommends approval of the resolution.
I