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HomeMy WebLinkAbout2006-131 - Approval of Initial Request for Issuance of Industrial Revenue BondsBILL N0.2006-131 ORDINANCE N0.2006-131 AN ORDINANCE APPROVING THE APPLICATION OF INITIAL REQUEST FOR ISSUANCE OF INDUSTRIAL REVENUE BONDS TO THE INDUSTRIAL DEVELOPMENT AUTHORITY OF PLATTE COUNTY, MISSOURI; AUTHORIZING THE EXECUTION OF SAME; EXPRESSING THE OFFICIAL INTENT OF THE CITY TOWARDS THE ISSUANCE OF SUCH INDUSTRIAL REVENUE BONDS TO FINANCE INFRASTRUCTURE PROJECTS; AND APPROVING AND AUTHORIZING ACTIONS AND DOCUMENTS RELATED THERETO. WHEREAS, the City of Riverside, Missouri, is a Missouri fourth class city (the "City"); and WHEREAS, the City has approved the L-385 Levee Redevelopment Plan, as amended and supplemented, (the "TIF Plan") pursuant to the Real Properly Tax Increment Allocation Redevelopment Act, Missouri Revised Statutes, Sections 99.800 through 99.865, as amended (the "TIFAct"); and WHEREAS, the City has approved, pursuant to the TIF Plan, infrastructure projects as Redevelopment Project III, which projects include Horizons Parkway, a four lane north-south access street from the I-635 Interchange to 9 Highway, 9 Highway improvements including intersection improvements at 9 Highway and Northwood, new intersection at 9 Highway and Horizons Parkway and acceleration, deceleration and turn lanes and east-west connector roads, all together with stormwater, sanitary sewer, sanitary force main, pump station, water main, water connector, landscaping, gas and electric improvements, relocations, property acquisition, wetlands delineation and related improvements (collectively, the "ProjecP'); and WHEREAS, the City desires to request that the Industrial Development Authority of Platte County, Missouri ("the "Authority") issue its industrial development revenue bonds (the "Bonds") in an aggregate principal amount not to exceed $40 million to provide funds to pay the costs of the Project pursuant to Chapter 349, RSMo., as amended (the "Act"); and WHEREAS, the City has determined that it is necessary and desirable to declare the official intent of the City to fmance the costs of the Project from the proceeds of the Bonds for such purposes, subject to certain terms and conditions set forth in this Ordinance; NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS: Section 1. Finding of Public Benefit. The City hereby finds and determines that the Project will promote the economic well-being and industrial development of the City and the taxing districts within the area of the Project, and that the issuance of the Bonds to pay the cost of the Project will be in furtherance of the public purposes set forth in the Act and the TIF Act. ,~ .. ~ .._ ., T ~. Section 2. Application for Bond Issuance. The Application of Initial Request for Issuance of Industrial Revenue Bonds to the Industrial Development Authority of Platte County, Missouri, in the form presented with this Ordinance and on file at City Hall, requesting the issuance of the Bonds in a principal amount not to exceed $40 million, is approved, and the Mayor is hereby authorized and directed to execute such Application for and on behalf of the City and to file such Application with the Authority. Section 3. Declaration of Intent. The City hereby declazes the intent of the City to authorize and provide for the issuance of the Bonds in a principal amount not to exceed $40 million, to provide funds to finance the costs of the Project, subject to the conditions set forth in this Ordinance and the final bond documents. Section 4. Limited Obligations. The Bonds shall be limited special revenue obligations payable solely out of payments, revenues and receipts pledged therefore pursuant to the bond documents. The Bonds and the interest thereon shall not be a debt of the City or the State of Missouri, and neither the City nor the State shall be liable thereon, and the Bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. Section 5. Reimbursement for Project Costs. The City is hereby authorized to proceed with the purchase, construction and equipping of the Project, including the entering of contracts and purchase orders in connection therewith, and to advance such funds as may be necessary to accomplish such purposes and if the Bonds aze issued, the City may be reimbursed out of the proceeds thereof for expenditures paid or incurred in connection therewith. Section 6. Preparation of Documents. Counsel to the City, Armstrong Teasdale LLP, together with the officers and employees of the City, aze hereby authorized to work with the purchaser of the Bonds and the Authority and their respective counsel and others, to prepare for submission to and final action by the City all documents necessary to effect the authorization, issuance and sale of the Bonds and other actions contemplated hereunder in connection with the financing of the Project. Section 7. Further Authority. The City hereby authorizes and empowers the officers and representatives of the City to do all such acts and things and to execute, acknowledge and deliver all such documents as may in their discretion be deemed necessary or desirable in order to carry out or comply with the terms and provisions of this Ordinance in connection with the structure and sale of the Bonds. All of the acts and undertakings of such officers and representatives which are in conformity with the intent and purposes of this Ordinance, whether heretofore or hereafter taken or done shall be and the same aze hereby in all respects, ratified, confirmed and approved. Section 8. Effective Date. This Ordinance shall be in full force and effect from and after its adoption. 2 Passed and Approved this 17th day of October, 2006. Attestt~ Ka een L. Rose, Mayor THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PLATTE COUNTY, MISSOURI APPLICATION INITIAL REQUEST FOR ISSUANCE OF INDUSTRIAL REVENUE BONDS City of Riverside, Missouri September 11, 2006 APPLICANT (FIRM NAME DATE OF REQUEST 2950 NW Vivion Road Riverside, Missouri 64150 816-741-3993 FIRM ADDRESS CITY ST ZIP FIRM PHONE NUMBER David Blackburn, City Administrator 816-741-3993 OFFICIAL TITLE- RESPONSIBLE OFFICER PHONE NUMBER 2950 NW Vivion Road Riverside Missouri 64150 816-741-3993 ADDRESS CITY ST ZIP John McClelland, City Attorney 816-221-3420 ATTORNEY FOR/OR AUTHORIZED REPRESENTATIVE OF APPLICATION PHONE NUMBER 2345 Grand, Suite 2000 Kansas City, Missouri 64108 ADDRESS CITY ST ZIP Bond Counsel Armstrona Teasdale LLP 2345 Grand, Suite 2000, Kansas City, Missouri 64108 Phone: 816-221-3420 Approximate date proposed for issue of Industrial Revenue Bonds December 13, 2006 Estimated Amount of Issue $40 Million T .. i g T. ? Q.. Page 2 Industrial Development Authority Application 1. Financial Responsibilitx a. How many years has the applicant been in business? Fifty+ b. What portion of the project is being financed from other company funds (in addition to bond issue)? City Ten Million+ -Federal/State Eiaht Million+ c. What is the dollar value of capital expenditures your firm has made for plant and equipment in Platte County, Missouri, during the past three years? $7,537,842.26 for fye 6/2006, $7,232,000.57 for fye 6/2005 and $13,415,222.92 for fye 6/2004, for a total of $28,185,065.75. d. Who is your principal banker in the Greater Kansas City area; outside the Greater Kansas City Area? Various. 2. Tvge of Tenant a. What type of business is proposed by the tenant? Please describe in detail the precise nature of all activities your firm contemplates undertaking in the facility and outline the estimated percentage of space to be devoted to each activity. The City is constructingpublic infrastructure. streets, sanitary sewer improvements, water lines and related infrastructure to provide the backbone for commercial, retail and industrial development within the Redevelopment Area established by the Citespursuant to the L-385 Levee Redevelopment Plan. b. Does the tenant have a single or multiple plant operation? N A. c. Will the Platte County, Missouri plant be the main operation of the tenant? N A. If not, where? Will the products to be manufactured, assembled or processed and any services to be rendered? N A. d. What is your estimated target date to begin operations? N A. Page 3 Industrial Development Authority Application 3. Nature of Improvements. Amount requested for land and site preparation $40 million. Amount requested for buildings. N/A. Amount requested for equipment. N A. a. What type and size of building will be constructed? There are 500+ acres within the area to be served by the infrastructure. These 500+ acres are anticipated to be developed as commercial, retail and industrial. b. Name and address of engineer, contractor, and/or architect. TranSystem Corporation 2400 Pershina Rd Suite 400 Kansas City Missouri 64108. c. Do you contemplate that all improvements will be constructed at one time or will the project be constructed in stages? Over three year period. d. Is the land now either owned, controlled, or leased by your company? Partiallv. e. Does the project contemplate rehabilitation of any existing buildings? No. f. What type of equipment will be financed? N A. Page 4 Industrial Development Authority Application 4. Measure of Economic Growth and Benefits a. What dollar amount of annual sales is contemplated? N A. b. What percent of sales will be sold locally? Unknown. c. How many people will the tenant employ initially, N/A. Long term? N A. See L-385 Levee Redevelopment Plan on file at Riverside City Hall, 2950 NW Vivion Road, Riverside, Missouri for projections regarding commercial, retail and industrial development. d. How many of those employees will be new employees as a result of the project? Unknown. e. Briefly describe manpower requirements, including approximate numbers of persons within various categories, (e.g., top and middle management, supervisory, sales, skilled, semi-skilled and unskilled workers). Unknown at this time. f. Briefly describe average wage by categories and benefits for any existing employees of the applicant located in Platte County and the proposed average wage by categories and benefits of new employees anticipated in Platte County, (e.g., top and middle management, supervisory, sales, skilled, semi-skilled and unskilled workers). Construction Wages will be as required under the Prevailing Wage Statutes. g. Is the tenant industry, either through a home office or subsidiary, presently operating in another location? If so, state location and size of other operations. N A. h. Is the proposed move an expansion, replacement or relocation of another plant? N A. ~. .. n 1, _ T i. Page 5 Industrial Development Authority Application If this is a proposed expansion, state size of current operation. N A If this is a proposed relocation or replacement, state size and location of present operation. fv A 5. Location a. Is the proposed tenant presently located in Platte County, Missouri? City of Riverside, Missouri. b. Address of proposed location. N A c. Is the prospective location properly zoned? Property is zoned commercial, industrial and light industrial. d. What is the present zoning of the property? Property is zoned commercial, industrial and light industrial. e. If a zoning change is pending, site application number and present status. No. If application has not been made, briefly describe what change will be needed and plans for submitting application. N A 6. Marketing of Bonds Has the tenant an established relationship with an investment banking firm or firms? Yes the City is working with Stifel Nicolaus and Company Inc on this transaction. a. Has an investment banker prepared an analysis indicating that the tenants bonds are marketable? Yes. b. Have arrangements for the marketing of the bonds been made? Yes. c. Has the tenant investigated conventional financing? N A ~. ,. ~ g ~. - T i,. Page 6 Industrial Development Authority Application 7. Ownership and Management a. Is the applicant industry a proprietorship, partnership, limited liability company or corporation? Riverside is a fourth class city and aolitical subdivision of the State of Missouri. b. If proprietorship, partnership, limited liability company or closed corporation, list the names and the percentage owned. N A. c. List the names and titles of manager or officers of the applicant industry? Mayor Kathleen Rose Alderman Ward I Linda Jones Alderman Ward I Ron Super Alderman Ward II Bernie Bruns Alderman Ward II Ray Beard Alderman Ward III David Hurt Alderman Ward III Pam Darata City Clerk Louise Rusick d. Is your firm either a wholly owned or partially owned subsidiary of another firm? No. e. List the name of CPA or public accountant who has performed audits of the applicant in the last five years. Bruce Culley, CPA. 8. Financial Information Submit, with this application, audited financial reports (if available) for the last five years, profit and loss statements for the same years, plus the most recent copies of 10- K, 10-Q and 8-K (if applicable). ~. .. 9 T. .~ C' . ; CERTIFICATION OF APPLICANT The undersigned hereby represents and certifies that, to the best knowledge and belief of the undersigned, this Project Application contains no information or data, contained herein or in the exhibits or attachments, that is false or incorrect and that it is truly descriptive of the property which is intended as the security for the proposed bonds. A check in the amount of $2,500 representing the non-refundable application fee is enclosed. The issuance fee will be due to the Authority simultaneously with the issuance of the Bonds. DATED THIS ~~~~ DAY OF OCTOBER, 2006. CITY OF R VERSIDE, MISSOURI BY: KATHLEEN L. ROSE, MAYOR (Revised June 16, aoos~ .r .. - - ~ --- T' T