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HomeMy WebLinkAbout1298 2007 Refunding Bonds BILL NO.2014-025 ORDINANCE NO. /,5;19 d AN ORDINANCE AUTHORIZING THE BORROWING OF NOT TO EXCEED $9,500,000 FROM THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF RIVERSIDE, MISSOURI, IN CONNECTION WITH THE REFUNDING OF CERTAIN BONDS ISSUED TO FUND CERTAIN REDEVELOPMENT COSTS DESCRIBED IN A TAX INCREMENT FINANCING PLAN PREVIOUSLY APPROVED BY THE CITY; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION OF A FINANCING AGREEMENT WITH THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF RIVERSIDE, MISSOURI; PROVIDING FOR THE ADMINISTRATION OF THE SPECIAL ALLOCATION FUND PREVIOUSLY CREATED BY THE CITY; AND PROVIDING FOR THE EXECUTION OF CERTAIN DOCUMENTS AND PRESCRIBING OTHER MATTERS RELATING THERETO. WHEREAS, the City of Riverside, Missouri (the "City"), is a fourth class city and political subdivision of the State of Missouri duly created, organized and existing under the constitution and laws of the State of Missouri; and WHEREAS, the Real Property Tax Increment 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 September 12, 1995, establishing in accordance with the requirements of the Act the Tax Increment Financing Commission of Riverside, Missouri(the"Commission'); WHEREAS, the City has passed Ordinance No. 96-72 in connection with various findings and determinations required by the Act, including but not limited to: (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 2007-068 (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, 1997-11, 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 L-385 Levee Redevelopment Plan Tax Increment Revenue Bonds (L-385 Levee Project) Series 2004 in the original aggregate principal amount of$16,300,000 and which will be outstanding in the amount of $7,670,000 and the time the Bonds (defined below) are issued (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 $9,500,000 (the "Load') 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 the Bonds; and WHEREAS, 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 Section 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 corporation formed under Chapter 349 of the Revised Statutes of the State of Missouri. "Bonds" means the not to exceed $9,500,000 Tax Increment Refunding Revenue Bonds (L-385 Levee Project) Series 2014, 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 Activity Tax Account" means the Economic Activity Tax Account in the Special Allocation Fund described in Section 401 hereof. "Economic Activity Tax Revenues" means fifty percent (50%) of the total additional revenue from sales taxes which are imposed by the City or other taxing districts, and which are generated by economic 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 tax increment financing related to the applicable lot, block, tract or parcel, while tax -2- 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 Agreement"means the First Supplemental Financing Agreement dated as of the first day of the month that the Bonds are issued, by and between the Authority and the City pursuant to which the Authority will loan the proceeds of the Bonds to the City. "Incremental Tax Revenues" means, collectively, New State Revenues, Payments in Lieu of Taxes and, subject to annual appropriation as provided herein,the Economic Activity Tax Revenues. "Loan" 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, up to 50% of the increase in state income tax from net new jobs in the Redevelopment Area. "New State Revenues Account" 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 terms hereof. "Payments in Lieu of Taxes" means, when collected by the City, the payments in lieu of taxes attributable to the increase 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 financing 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 Section 401 hereof. "Redevelopment Area"means the area described as such in the Redevelopment Plan. "Redevelopment Costs" means the "redevelopment project costs," as defined 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. "Series 2011A Bonds" means the Authority's Tax Increment Refunding Revenue Bonds (L-385 Levee Project) Series 2011A issued in the original principal amount of$2,385,000. "Special Allocation Fund" means the fund by that name ratified and confirmed by Section 401 hereof. "State" means the State of Missouri. -3- 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 $9,500,000 in order to permit the City to (1) refund the Refunded Bonds, (2) fund an account in the debt service reserve fund for the Bonds, and (2) pay the costs of incurring the Loan and issuing the Bonds. Section 202. Authorization of Documents. In 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 Agreement") among the Authority, the 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 Agreement") between the City and the Trustee, as Dissemination Agent. (d) Escrow Trust Agreement between the City, the Authority and UMB Bank, N.A., as escrow agent related to the deposit of funds from proceeds of the Bonds and other moneys for the refunding of the Refunded Bonds. (e) Official Statement related to the offering for sale of the Bonds, in substantially the form of the Preliminary Official Statement presented to the Board of Aldermen. (f) Notice of Sale related to the sale of the Bonds by public sale. (the "City Documents") in substantially the form presented to and reviewed by the Board of Aldermen (copies of which documents shall be filed in the records of the City), with such changes therein as shall be approved by the officers executing such documents, such officers' signatures thereon being conclusive evidence of their approval thereof. In addition, the City approves the form of the First Supplemental Bond Trust Indenture related to the Bonds in substantially the form presented to and reviewed by the Board of Aldermen(a copy of which shall be filed in the records of the City). Section 203. Limited Oblieations. Except as provided herein in Article III hereof, the City obligation to make Loan Payments and Additional Payments under the Financing Agreement shall be 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 forth in the Financing Agreement or the Bond Trust Indenture, as amended, under which the Bonds are issued (the "Indenture"), the City shall make payments upon the Loan and shall be 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 further provided in the Financing Agreement. -4- 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) The maximum principal amount of the Bonds shall not exceed $9,500,000. (b) The True Interest Cost of the Bonds as computed by the Purchaser shall not exceed 4.0%. (c) The weighted average maturity of the Bonds shall not exceed 4 years. (d) The final maturity date of the Bonds shall be not later than the year 2020. (e) The Bonds shall be sold at public sale at not less than 95%of the par amount thereof. (f) The issuance of the Bonds, which is for the purpose of refunding the Refunded Bonds, shall result in a net present value savings of at least 3.0%. (g) The Bonds shall not be subject to optional redemption prior to maturity. 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 be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 206. Ratification of Approvals and Designations. The City hereby ratifies and confirms the approval 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. Refunding 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 documents and take such actions as are necessary to so redeem the Refunded Bonds. 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 the Special Allocation Fund are not subject to annual appropriation and are pledged by the City pursuant Section 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 payable from and secured as to the payment of principal and interest by (a) a pledge of the Payments in Lieu of Taxes deposited in the -5- PILOTS 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 Aldermen as provided in Section 403 hereof, the Economic Activity Tax Revenues deposited in the Economic Activity Tax 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, statutory 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 2011 A Bonds. Section 302. Pled¢e 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. In 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 the 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) the Trustee, (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. ARTICLE IV SPECIAL ALLOCATION FUND Section 401. Ratification of Special Allocation Fund. There is hereby ratified the Special Allocation Fund, and within the Special Allocation Fund, a PILOTS Account, an Economic Activity Tax 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 Special 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 2011A Bonds and the Cooperation Agreement The City hereby agrees to deposit into the Special Allocation Fund as received all Incremental Tax Revenues. The Incremental Tax 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 -6- Allocation Fund; subject to annual appropriation as provided in Section 303 hereof, all Economic Activity Tax Revenues shall, as and when received by the City, be 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 deposited into the New State Revenues Account of the Special Allocation Fund. ARTICLE V MISCELLANEOUS PROVISIONS Section 501. Further Authority. 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 this Ordinance and to make any changes or additions in this Ordinance and the foregoing agreements, 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 conclusive evidence of such determination. Section 502. Severability. 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. Governina Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State. Section 504. Effective 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. 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 I<— day of April, 2014. Kathleen L. Rose, Mayor ATTEST: , 2P Robin Littrell, CityJerk -7-