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HomeMy WebLinkAbout2002-094 - Approval of the Issuance of $1,350,000 in Tax Increment Revenue BondsBILL NO. 2002-94 ORDINANCE NO. 2002-94 AN ORDINANCE OF THE CITY OF RIVERSIDE, MISSOURI, APPROVING THE ISSUANCE OF NOT TO EXCEED $1,350,000 TAX INCREMENT REVENUE BONDS, SERIES 2002 (L-385 LEVEE PROJECT); PLEDGING AND ASSIGNING TIF REVENUES FOR THE PURPOSE OF PAYING THE PRINCIPAL OF AND INTEREST ON THE BONDS; AND APPROVING RELATED MATTERS WHEREAS, the City of Riverside, Missouri (the `M'iry") 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 "Act"), to issue 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 bonds; and WHEREAS, the Board, by Ordinance No. 96-72 passed on July 16, 1996, classified the Redevelopment Arca as a "blighted area" and designated it as a redevelopment area under the Act; approved the L-385 Levee Redevelopment Plan, the Redevelopment Project I and the designation and approval of individual projects on aproject-by-project basis; and WHEREAS, Redevelopment Project I includes rivo levees to provide protection against an approximately 500-year flood to portions of the Redevelopment Area; and WHEREAS, the Board, by Ordinance Nos. 96-72, 97-11, 97-12, 97-13 and 97-95, approved Phases A, B, C, D and E, respectively, of the Redevelopment Project I; by Ordinance No. 99-37, approved Phases G, H and I of the Redevelopment Project I; and by Ordinance Nos. 99-94 and 2001-1 15, approved Phases J and L, respectively, of the Redevelopment Project I; and WHEREAS, the City has issued two series of tax increment revenue bonds: (i) by Ordinance No. 98-49, the City issued its Tax Increment Revenue Bonds (L-385 Levcc Project), Series 1998 in the principal amount of $1,000,000, payable from Incremental Tax Revenues ("Series 1998 Bonds") and by Ordinance No. 99-60, the City issued its Tax Increment Revenue Bonds (L-385 Levcc Project), Series 1999 in the principal amount of $1,400,000, payable from Incremental Tax Revenues ("Series 1999 Bonds"), both of which arc, and shall remain, issued at parity with the Bonds; and WHEREAS, to provide funds to pay a portion of the costs of the Levee Project, the Missouri Development Finance Board ("MDFB") issued its Infrastructure Facilities Revenue Bonds (Riversidc- Quindaro Bcnd Levee District of Platte County, Missouri L-385 Project), Scrics 2001 and the Levee District, in turn, issued its Levee District Improvement Bonds, Series 2001 ("Levee District Bonds"); and WHEREAS, the City, Platte County, Missouri, the Riverside-Quindaro Bend Levcc District of Platte County, Missouri (the "Levee District"), and UMB Bank, N.A. entered into a Cooperation Agreement dated as of December 1, 2001, relating to the Levee District Bonds ("Cooperation Agreement"); and WHEREAS, pursuant to the Cooperation Agreement, the Levcc District Bonds are secured, in part, by tax increment financing ("TIF") revenues; and Armstrong Tcasdale LLP WHEREAS, pursuant to the Cooperation Agreement, the City may issue up to $20,000,000 in bonds that are secured, in whole or in part, by and senior to the Levee District Bonds with respect to the TIF revenues derived from the Redevelopment Project I Area with the proceeds of such bonds being used solely to pay for Redevelopment Project T Costs under the Redevelopment Plan; and WHEREAS, the City hereby finds that it is necessary, desirable and in the best interests of the City to approve the issuance, pursuant to the Indenture, of its Tax Increment Revenue Bonds (L-385 Levee Project), Series 2002 (the "Bonds"), in a principal amount not to exceed $1,350,000, to (1) fund certain Redevelopment Project Costs, and (2) pay the costs of issuing the Bonds; which Bonds shall be senior to the Levee District Bonds; and WHEREAS, a copy of this Ordinance having been made available for public inspection prior to its adoption by the Board of Aldermen and this bill having been read by title in open meeting two times before final passage by the Board of Aldermen. 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 Trust Indenture dated as of August 1, 2002 by and between the City and the Trustee (the "Indenture "). Section 2. Issuance of the Bonds. The City hereby approves, authorizes and directs the issuance of the City's Tax Increment Revenue Bonds, Series 2002 (L-385 Levcc Project), the proceeds of which shall be used to (1) fund certain Redevelopment Project Costs, and (2) pay the costs of issuing the Bonds. The Bonds shall be (1) dated as of August 1, 2002, (2) issued in an aggregate principal amount not to exceed $1,350,000, (3) subject to prepayment, mature and expire on a date which is no more than 20 years from the date of issuance, and (4) shall bear interest at the rate not to exceed six and one-quarter percent (6.25.0%) per annum, the final terms, subject to the foregoing parameters, of which shall be approved in writing by the Authorized City Representative. The Bonds shall be issued on a parity with the Scrics 1998 Bonds and the Scrics 1999 Bonds and senior to the Levee District Bonds. Section 3. Pledging and Assigning the TIF Revenues. The City hereby pledges to transfer all Payments in Licu of Taxes and, subject to annual appropriation, Economic Activity Tax Revenues to the Trustee pursuant to the Indenture and the Cooperation Agreement and hereby consents to and authorizes the Trustee to disburse the TIF Revenues from the Special Allocation Fund pursuant to the Indenture and the Cooperation Agreement. Section 4. Authorization of Documents. The City is hereby authorized to enter into the following documents (collectively, the "City Documents "), in substantially the forms attached to this Ordinance (copies of which documents shall be filed in the records of the City) and to be dated as of August 1, 2002, with such changes therein as shall be approved by the officers of the City executing such documents and as may be necessary or desirable to carry out and comply with the intent of this Ordinance, such officers' signatures thereon being conclusive evidence of their approval thereof: (a) Trust Indenture (the "Indenture "), by and between the City and the Trustcc, attached hereto as Exhibit A; (b) Tax Compliance Agreement (the "Tax Compliance Agreement "), by and among the City and the Trustee, attached hereto as Exhibit B; and Armstrong Tcasdalc I,I,I' (c) Continuing Disclosure Certificate (the "Continuing Disclosure Certificate") by the City, attached hereto as Exhibit C. (d) Bond Purchase Agreement ("BPA") by and among the City and Kirkpatrick Pettis, attached here to as Exhibit D. Section 5. Execution of Documents. The Mayor of the City is hereby authorized and directed to execute and deliver the City Documents for and on behalf of and as the act and deed of the City. The City Clerk of the City is hereby authorized and directed to attest to such City Documents and other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 6. Approval of Preliminary and Final Official Statements. The City hereby approves the Preliminary Official Statement respecting the Bonds (the "Preliminary Official Statement ") in substantially the form presented to and reviewed by the City at this meeting and attached hereto as Exhibit E, and the final Official Statement respecting the Bonds in substantially the form of the Preliminary Official Statement with such changes and additions thereto as arc 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. For the purpose of enabling the Underwriter to comply with the requirements of Rule 15c2-12(6)(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(6)(1), and the appropriate officers of the City arc hereby authorized, if requested, to provide the Underwriter 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 Underwriter to comply with the requirements of such Rule. Section 7. Further Authority. All actions heretofore taken by the officials, agents and employees of the City in connection with the transaction contemplated by this Ordinance are hereby ratified and confirmed, and the City shall, and the officials, agents and employees of the City arc hereby authorized and directed to, take such further action, and execute and deliver such other documents and instruments 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 8. Designation of Trustee, Paying Agent and Certificate Registrar. The City hereby approves and consents to the designation of UMB Bank, N.A. as Trustee, Paying Agent and Bond Registrar under the Indenture. Section 9. Severability. The sections, paragraphs, sentences, clauses and phrases of this Ordinance shall be severable. In the event that any such section, paragraph, sentence, clause or phrase of this Ordinance is found by a court of competent jurisdiction to be invalid, the remaining portions of this Ordinance arc valid, unless the court finds the valid portions of the Ordinance are so essential to and inseparably connected with and dependent upon the void portion that it cannot be presumed that the City has enacted the valid portions without the void ones, or unless the court finds that the valid portions, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent. Section l0. Governing Law. This Ordinance shall be governed exclusively by and construed in accordance with the applicable laws of the State of Missouri. Armstrong Tcasdale LLP Section ll. Effective Date. This Ordinance shall take effect and be in full force immediately upon its passage by the City. Approved and Adopted this 20`h day of August, 2002. By: ~~ L~~' Betty B ch, Mayor (SEAL) n ~r~rr c'r. Armstrong Tcasdale LLP EXHIBIT A INDENTURE Annsvone "I~cusdalc LI.P EXHIBIT B TAX COMPLIANCE AGREEMENT Armsu~ong'fcasdulc LLP EXHIBIT C CONTINUING DISCLOSURE AGREEMENT Armstrone Tcasdulc LLP EXHIBIT D BOND PURCHASE AGREEMF,NT Armstrong Tcasd~lc LLP EXHIBIT E PRELIMINARY OFFICIAL STATEMENT Annstron~ Tcasdalc LLP