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HomeMy WebLinkAbout2003-102 - Authorization of the Issuance of $16,300,000 in Tax Increment Revenue Bond Anticipation NotesBILL NO. 2003-102 ORDINANCE NO. 2003-102 An Ordinance Authorizing the Issuance and Sale of $16,300,000 City of Riverside, Missouri L-385 Levee Redevelopment Plan Tax Increment Revenue Bond Anticipation Notes (L-385 Levee Project) Series 2003 (The "Notes") to Finance Certain Redevelopment Project Costs Relating to the L-385 Levee Redevelopment Plan and Redevelopment Project I Thereunder and Pay the Costs of Issuance of the Notes, 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 Note Trust Indenture, Tax Compliance Agreement, Continuing Disclosure Agreement, Note Purchase Contract, Preliminary Official Statement and Final Official Statement for the Notes; 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 "T1F 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 is needed for the local share portion of the Levee Project ("Additional Funds"); and WHEREAS, the City intends to issue 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 (the "Indenture"), between the City and UMB Bank, N.A., as Trustee (the "Trustee"); and WHEREAS, the proceeds of the Notes will be used to provide Additional Funds to finance the Levee Project; 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 Notes pursuant to the Indenture; and NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI AS FOLLOWS: Section 1. 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 Notes to (i) pay, including the reimbursement of, a portion of the Redevelopment Project Costs of Redevelopment Project I, the Levee Project, under the Redevelopment Plan, and (ii) pay certain costs related to the issuance of the Notes; and b. to enter into a negotiated sale of the Notes to the Original Purchaser. Section 3. Authorization and Direction to Issue Notes. The City hereby authorizes and directs the issuance of its L-385 Levee Redevelopment Plan Tax Increment Revenue Bond Anticipation Notes (L-385 Levee Project) Series 2003, in an aggregate principal amount not to exceed $16,300,000 (the "Notes") for the purposes set forth in the Tndenture. The City hereby ratifies and confirms all prior actions taken in connection with the issuance of the Notes. The Notes (i) shall have a final maturity not later than July 1, 2004, (ii) shall bear interest at an interest rate of 1.55% per annum (based upon the actual number of days elapsed over a year of 365 or 3G6 days, whichever is applicable). The terms and provisions of the Notes shall be as provided in the Indenture. Section 4. Limited Obligations. The Notes, the interest thereon and the City's obligations to make Note payments and additional payments described in the Indenture shall be limited, special obligations of the City payable (except to the extent paid out of Note proceeds or the income from the temporary investment thereof) solely from, and secured by, a pledge of, subject to annual appropriation by the City, all general fund revenues of the City, as provided in the Indenture. The taxing power of the City is not pledged to the payment of the Notes either as to principal or interest. The Notes and interest thereon shall not be deemed to constitute a debt or liability of the City, within the meaning of any state constitutional provision or statutory limitation, and shall not constitute a pledge of the full faith and credit of the City but shall be payable solely from the funds provided for in this Indenture. The obligation of the City to make payments under the Indenture is subject to annual appropriation as provided therein. The terms and provisions of the Notes shall be as provided for in the Indenture. Section 5. Authority and Direction to Sell the Notes in a Negotiated Sale. In connection with the issuance of the Notes, the City hereby authorizes and approves the negotiation of the sale thereof with the Original Purchaser, 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 into, execute and deliver each of such documents (collectively, the "City Documents") with such changes therein as shall be approved by the officials of the City executing such documents, such officials' signatures thereon being conclusive evidence of their approval and the City'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 Trustee, d. the Note Purchase Contract between the City and Oppenheimer & Co. Inc., and 2 e. Preliminary 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 maybe necessary or desirable to facilitate the issuance of the Notes 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 Official Statements. The City hereby approves the Preliminary Official Statement respecting the Notes (the 'Preliminary Official Statement ") in substantially the form presented with this Ordinance, and the final Official Statement respecting the Notes 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 Original Purchaser is hereby approved for use in connection with the sale of the Notes. For the purpose of enabling the Original Purchaser to comply with the requirements of Rule 15c2-12(b)(1) of the Securities 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 Original Purchaser a letter or certification to such effect and to take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Original Purchaser 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, agents and employees 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 Note Registrar. The City hereby designates UMB Bank, N.A., as Trustee, Paying Agent and Note Registrar under the Indenture. Section 10. 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 finding shall determine that the valid portions standing alone are incomplete and are incapable of being executed in accord with the legislative intent. Section 11. Effective Date. This Ordinance shall take effect and be in full force immediately upon its passage by the City. 3 PASSED AND APPROVED THIS ~~DAY OF OC"I'OBER, 2003. ~~ ~~ Y~.r ~) .. 7 ~ ~i Betty Burch, ayor ATTEST: [se 1] C L ise Rusick, City Clerk