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HomeMy WebLinkAbout2004-112 - Authorization for the Issuance of $16,300,000 in Tax Increment Revenue BondsBILL NO. 2004-112 ORDINANCE NO. 2004-1 12 An Ordinance Authorizing the Issuance and Sale of $16,300,000 City of Riverside, Missouri L-385 Levee Redevelopment Plan Tax Increment Revenue Bonds (L-385 Levee Project) Series 2004 (the "Bonds") to Finance Certain Redevelopment Project Costs Relating to the L-385 Levee Redevelopment Plan and Redevelopment Project I Thereunder, Pay off the Temporary Notes, and Pay the Costs of Issuance of the Bonds and Establish a Debt Service Reserve Fund, for the General Welfare, Safety and Benefit of the Citizens of the City of Riverside, Missouri (the "City"); Authorizing and Directing the Officers of the City to Execute and Deliver a Trust Indenture, Tax Compliance Agreement, Continuing Disclosure Agreement, Bond Purchase Contract, Preliminary Official Statement and Final Official Statement for the Bonds; and Authorizing and Directing the Taking of Other Actions and Approval and Execution of Other Documents as Necessary or Desirable to Carry Out and Comply with the Intent Hereof. WHEREAS, the City is authorized and empowered under the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800 to 99.865, inclusive, of the Revised Statutes of Missouri, as amended (the "TIF Act"), to issue notes and bonds for the purpose of providing funds to finance the costs of certain redevelopment projects and to pay certain costs related to the issuance of such notes and bonds; and WHEREAS, a plan for redevelopment titled "L-385 Levee Redevelopment Plan" designating approximately 1,800 acres within the City as the redevelopment area (the "Redevelopment Area") was approved by the City after recommendation of the Tax Increment Financing Commission (as amended and supplemented, the "Redevelopment Plan"); and WHEREAS, Redevelopment Project I under the Redevelopment Plan is the construction of the L-385 Levee Project ("Levee Project'); and WHEREAS, the Riverside-Quindaro Bend Levee District of Platte County, Missouri (the "District") and the City have been working towards the completion of the Levee Project together with the U.S. Army Corps of Engineers; and WHEREAS, additional funding was needed for the local share portion of the Levee Project ("Additional Fiords"); and WHEREAS, to provide the Additional Funds, the City issued its L-385 Levee Redevelopment Plan Tax Increment Revenue Bond Anticipation Notes (L-385 Levee Project) Series 2003 (the "Notes"), pursuant to a Note Trust Indenture, as amended, (the "Indenture"), between the City and UMB Bank, N.A., as Trustee (the `°I'rustee"); and WHEREAS, the Notes are due January 1, 2005 and it is necessary to issue the Bonds to pay off the Notes, provide for funding for the Levee Project, establish a Debt Service Reserve Pund and pay the Costs of Tssuanee relating to the Bonds; and WHEREAS, the Board of Aldermen of the City hereby finds it is advisable, necessary and in the best interests of the City to authorize and direct the issuance of the Bonds pursuant to the Indenture; and NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF ALllERMEN OF THE CITY OF RIVERSIDE, MISSOIIRI AS FOLLOWS: Section I. Definitions. All capitalized terms not elsewhere defined herein shall have the meanings set forth in Section 101 of the Indenture. Section 2. Findings and Determinations. The Board of Aldermen hereby finds and determines that it is necessary and in the best interests of the City: a. to issue the Bonds to (i) pay off the Notes, (ii) pay, including the reimbursement of, a portion of the Redevelopment Project Costs of Redevelopment Project I, the Levee Project, under the Redevelopment Plan, (iii) establish a debt service reserve fund, and (ii) pay certain costs related to the issuance of the Bonds; and b. to enter into a negotiated sale of the Bonds pursuant to the Bond Purchase Contract Section 3. Authorization and Direction to Issue Bonds. The City hereby authorizes and directs the issuance of its L-385 Levee Redevelopment Plan Tax Increment Revenue Bonds (L-385 Levee Project) Series 2004, in an aggregate principal amount of $16,300,000 (the "Bonds") for the purposes set forth in the Indenture. The City hereby ratifies and confirms all prior actions taken in connection with the issuance of the Bonds. The Bonds shall contain a recital that they are issued pursuant to Sections 99.800 to 99.865, RMSo. The Bonds (i) shall have a final maturity not later than May 1, 2020, (ii) shall bear interest at the interest rates set forth in the Indenture. The terms and provisions of the Bonds shall be as provided in the Indenture. Section 4. Limited Obligations. The Bonds and the interest thereon are limited obligations of the City, payable solely from Bond proceeds, Net Revenues and funds held in the Debt Service Fund and the Debt Service Reserve Fund, as provided in the Indenture. In accordance with the Indenture and subject to annual appropriation, the portion of the Net Revenues consisting of Municipal Revenues of the City will be available for payment of the Bonds and the interest thereon. Under the Indenture, the City will pledge and assign moneys in the Special Allocation Fund (with respect to the PIL01's Account, the liATs Account, and the New State Revenues Account, subject to the requirements of the Senior T1F Bonds), the Debt Service Fund and the Debt Service Reserve Fund to the Bondowners as security for the payment of the Bonds and the interest thereon. Pursuant to the Indenture and the Cooperation Agreement, the City shall transfer Co the Trustee for deposit into the Special Allocation Fund, all Payments in Lieu of Taxes and, subject to annual appropriation, all Economic Activity Tax Revenues, all New State Revenues and, to the extent necessary and appropriated, Municipal Revenues. the Bonds do not constitute a debt or liability of the City, the State of Missouri or of any political subdivision thereof and arc not an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. 'The issuance of the Bonds does not obligate the City to levy any form of taxation or to make any appropriation for their payment. The terms and provisions of the Bonds shall be as provided for in the Indenture. Section 5. Authority and Direction to Sell the Bonds in a Negotiated Sale. In connection with the issuance of the Bonds, the City hereby authorizes and approves the negotiation of the sale thereof pursuant to the Bond Pw-chase Contract, subject to the provisions of this Ordinance. Section 6. Authority and Direction to Execute and Delivery City Documents. The following documents are hereby approved in substantially the forms presented with this Ordinance (copies of which documents are on file with the City Clerk), and the City is hereby authorized to enter 2 into, execute and deliver each of such documents (collectively, the "City Documents") with such changes therein as shall be approved by the oftcials of the City executing such documents, such officials' signatures thereon being conclusive evidence of their approval and the Ciry's approval thereof: a. the Indenture between the City and the Trustee, b. the Continuing Disclosure Agreement between the City and the Trustee, c. the Tax Compliance Agreement between the City, the District and the'I'rustee, d. the Bond Purchase Contract between the City and Oppenheimer & Co. Inc., c. Preliminary Official Statement; and f. Official Statement. The Mayor, City Clerk, City Administrator and such other officers of the City as are appropriate are hereby authorized and directed to execute, seal, attest and deliver, for and on behalf of and as the act and deed of the City, the City Documents and such other documents, certificates and instruments as may be necessary or desirable to facilitate the issuance of the Bonds and to carry out and comply with the intent of this Ordinance and the City Documents, with such documents being in such form as shall be approved by the appropriate officers of the City executing such documents, such officers' signatures thereon being conclusive evidence of their approval thereof. Section 7. Approval of Preliminary and Final Of£cial Statements. The City hereby approves the Preliminary Official Statement respecting the Bonds (the "Preliminar}~ O/Jicial Sratemen! ") in substantially the form presented with this Ordinance, and the tnal Official Statement respecting the Bonds in substantially the form of the Preliminary Official Statement with such changes and additions thereto as are necessary to conform to and describe the transaction, and the public distribution of the same by the Underwriter is hereby approved for use in connection with the sale of the Bonds. Por the purpose of enabling the Underwriter to comply with the requirements of Rule 15c2-12(b)(1) of the Secw~ities and Exchange Commission, the City hereby deems the information contained in the Preliminary Official Statement to be "final" as of its date, except for the omission of such information as is permitted by Rule 15c2-12(b)(1), and the appropriate officers of the City are hereby authorized, if requested, to provide the Underwriter a letter or certification to such effect and to take such ocher actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Underwriter to comply with the requirements of such Rule. Section 8. Further Authority. The City and the Mayor, the City Administrator, the Finance Officer and other appropriate officers and agents of the City are hereby authorized to take such further actions and execute such other documents as may be necessary or desirable to carry out and comply with the intent of this Ordinance, and to carry out, comply with and perform the duties of the City with respect to the City Documents. Section 9. Designation of Trustee, Paying Agent and Bond Registrar. The City hereby designates UMB Bank, N.A., as Trustee, Paying Agent and Bond Registrar under the Indenture. Section 10. Pledge of Remaining TIF Revenues and Municipal Revenues. The City assigns the Remaining TIF Revenues and the Municipal Revenues deposited into the Special Allocation Fund to the Trustee for the purpose of paying the principal of and interest on the Bonds. 3 Section 11. Certain Payments Reimbursable Project Costs Linder the Redevelopment Plan. The City may designate, with each payment of Municipal Revenues that it deposits with the Crustee, whether and to what extent such Municipal Revenues constitute an advance and Reimbursable Project Costs of Redevelopment Project I reimbursable to the City, from TIF Revenues after payment has been provided for the Senior TIF Bonds, the Bonds and the District Bonds, pursuant to and in accordance with the Redevelopment Plan and the Cooperation Agreement. Section 12. Appropriation for Debt Service Reserve Fund. The City hereby appropriates $815,000 (the "Funds") to be paid to UMB Bank, N.A. for deposit into the Debt Service Reserve Fund created by the Indenture for the Bonds. The Finance Officer is authorized and directed to prepare the Funds and the Mayor is authorized to execute such documents and take such actions as are required or desirable to deliver the Fiords on the date of closing on the Bonds. Section 13. Severability. It is hereby declared to be the intent of the Board of Aldermen that each and every part, section and subsection of this Ordinance shall be separate and severable from each and every other part, section and subsection hereof and that the Board of Aldermen intends to adopt each said part, section and subsection separately and independently of any other part, section and subsection. In the event that any part, section or subsection of this Ordinance shall be determined to be or to have been unlawful or unconstitutional, the remaining parts, sections and subsections shall be and remain in full force and effect, unless the court making such f nding shall determine that the valid portions standing alone are incomplete and are incapable of being executed in accord with the legislative intent. Section 14. Effective Date. This Ordinance shall take effect and be in full force immediately upon its passage by the City. 4 PASSED AND APPROVED THIS ~~~~ DAY OF DECEMBER, 2004. //~ ~~ Betty Bu c ,Mayor A"1"TES"I': [seal] I :l ~-«, ~ti ~ ~~~z~. , ~",~__ Rusick, City Clerk