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Home My WebLink AboutRESOLUTION NO. 2011-58 nd Fairfax 419915-17/2 ½ Hrgs Only MINUTES TO HOLD HEARINGS ON LOAN AGREEMENTS 419915-17 Fairfax, Iowa August 30, 2011 The City Council of the City of Fairfax, Iowa, met on August 30, 2011, at 6:00 o’clock p.m., at the City Hall, at 525 Vanderbilt Street, Fairfax, Iowa. The meeting was called to order by the Mayor, and the roll was called showing the following members of the City Council present and absent: Present: Beer, Frieden, Otto, Wainwright, and Magers Absent: None. This being the time and place specified for holding a public hearing on the proposal to enter into an Essential Corporate Purpose Loan Agreement in a principal amount not to exceed $1,010,000, for the purpose of constructing storm drainage and water main improvements, the City Clerk announced that no written objections had been placed on file. Whereupon, the Mayor called for any written or oral objections, and the following persons made comments: Kenneth Selzer stated that he had talked to the land owners and that they won’t allow the trail until the drainage improvements meet their approval. He also stated that the East Cemetery Road area has always been wet and that development should not have been allowed in this area. He asked if the City Council has learned from the past. He asked if the City of Fairfax has ever put dye in the water to check flows or if the City ever uses a soil scientist. Shane Wicks, the City Engineer stated that the City has not placed dye. Shane also stated that geotechnical firms are used if the project and area warrant the additional cost. There being no further comments, the Mayor announced that the hearing was closed. This also being the time and place specified for a public hearing on the proposal to enter into a General Corporate Purpose Loan Agreement in a principal amount not to exceed $2,300,000, for the purpose of carrying out projects in the Fairfax Urban Renewal Area consisting of developing and constructing the Fairfax Athletics and Park Complex and constructing trail improvements, the City Clerk announced that no petition had been filed asking that the question of entering into the loan agreement be submitted to the registered voters of the City, and the Mayor called for any written or oral comments, and the following persons made comments: Kenneth Selzer asked what would happen to the City’s finances if TIF disappeared. He is concerned that the State of Iowa could take away this revenue source as they did the touch screen machines. Larry Berger, from Speer Financial, informed Mr. Selzer that the bonds are written as general obligation bonds, so the City of Fairfax would have the ability to levy taxes to meet debt -1- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA nd Fairfax 419915-17/2 ½ Hrgs Only obligations. Mr. Berger also stated that it was higher unlikely that the State of Iowa would eliminate TIF because there are millions of dollars of public debt issued using this financing tool. There being no further comments, the Mayor announced that the hearing was closed. After due consideration and discussion, Council Member Magers introduced the following resolution and moved its adoption, seconded by Council Member Beer. The Mayor put the question upon the adoption of said resolution, and the roll being called, the following Council Members voted: Ayes: Beer, Frieden, Otto, Wainwright, and Magers Nays: None Whereupon, the Mayor declared the resolution duly adopted, as hereinafter set out. -2- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA nd Fairfax 419915-17/2 ½ Hrgs Only • • • • At the conclusion of the meeting, and upon motion and vote, the City Council adjourned. Jason Rabe Mayor Attest: Cynthia Stimson City Clerk/Treasurer -3- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA nd Fairfax 419915-17/2 ½ Hrgs Only RESOLUTION NO. 2011-58 RESOLUTION EXPRESSING INTENT TO ENTER INTO LOAN AGREEMENTS WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City of Fairfax, in the County of Linn, State of Iowa (hereinafter referred to as the “City”) has heretofore proposed to contract indebtedness and enter into a loan agreement (the “Essential Corporate Purpose Loan Agreement”) in a principal amount not to exceed $1,010,000, for the purpose of paying the cost, to that extent, of constructing storm drainage and water main improvements, and has published notice of the proposed action and has held a hearing thereon; and WHEREAS, pursuant to the provisions of Section 384.24A of the Code of Iowa, the City has heretofore proposed to contract indebtedness and enter into a loan agreement (the “General Corporate Purpose Loan Agreement”) in a principal amount not to exceed $2,300,000, for the purpose of paying the cost, to that extent, of carrying out projects in the Fairfax Urban Renewal Area consisting of developing and constructing the Fairfax Athletics and Park Complex and constructing trail improvements, and, in lieu of calling an election upon such proposal, has published notice of the proposed action and has held a hearing thereon, and no petition has been filed with the City asking that the question of entering into the General Corporate Purpose Loan Agreement be submitted to the registered voters of the City; and WHEREAS, pursuant to Section 384.28 of the Code of Iowa, the City Council may combine the Essential Corporate Purpose Loan Agreement, and the General Corporate Purpose Loan Agreement into a single loan agreement; NOW, THEREFORE, It Is Resolved by the City Council of the City of Fairfax, Iowa, as follows: Section 1. The Essential Corporate Purpose Loan Agreement and the General Corporate Purpose Loan Agreement are hereby combined into a single loan agreement (the “Loan Agreement”), and the City Council hereby expresses its intent to enter into the Loan Agreement in the future and orders that general obligation bonds or notes be issued in evidence thereof. The City Council further declares that this resolution constitutes the “additional action” required by Section 384.24A of the Code of Iowa. Section 2. All resolutions and orders or parts thereof in conflict with the provisions of this resolution, to the extent of such conflict, are hereby repealed. Section 3. This resolution shall be in full force and effect immediately upon its adoption and approval, as provided by law. -4- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA nd Fairfax 419915-17/2 ½ Hrgs Only Passed and approved August 30, 2011. Jason Rabe Mayor Attest: Cynthia Stimson City Clerk/Treasurer -5- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA nd Fairfax 419915-17/2 ½ Hrgs Only STATE OF IOWA COUNTY OF LINN SS: CITY OF FAIRFAX I, the undersigned, City Clerk of the City of Fairfax, do hereby certify that attached hereto is a true and correct copy of the proceedings of the City Council relating to the hearings on the City Council’s intention to enter into an Essential Corporate Purpose Loan Agreement and a General Corporate Purpose Loan Agreement. I further certify that no petition was filed in my office asking that the question of entering into the General Corporate Purpose Loan Agreement be submitted to the registered voters of the City. th WITNESS MY HAND this 30 day of August, 2011. Cynthia Stimson City Clerk/Treasurer -6- DORSEY & WHITNEY LLP, ATTORNEYS, DES MOINES, IOWA August 26, 2011 Cynthia Stimson City Clerk/City Hall P.O. Box 337 Fairfax, Iowa 52228-0337 Re: $1,010,000 Essential Corporate Purpose Loan Agreement $2,300,000 General Corporate Purpose Loan Agreement Our File No. 419915-17 Dear Cynthia: We have prepared and enclose proceedings related to the hearings on the Essential Corporate Purpose Loan Agreement and the General Corporate Purpose Loan Agreement to be held at the August 30 City Council meeting. The proceedings enclosed include the following items: 1. Minutes of the meeting covering the hearings, followed by the resolution taking additional action in connection with the Loan Agreements. This resolution simply sets forth the City Council’s determination to enter into the Loan Agreements in the future, and its adoption constitutes the “additional action” required by the statute. After the details of the financing have been confirmed, we will prepare and forward additional proceedings to enable the City Council to approve the Loan Agreement. 2. Certificate attesting transcript. The minutes as drafted assume that no objections will be filed to the Essential Corporate Purpose Loan Agreement and that no petition will be filed asking that the question of entering into the General Corporate Purpose Loan Agreement be submitted to the registered voters of the City. As these proceedings are completed, please return one fully executed copy to our office. If you have any questions, please contact me. Very truly yours, Robert E. Josten cc by email: Maggie Burger