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HomeMy WebLinkAbout1997-10-15 97-410 ORDERCODNCIL ACTION Date: 10-15-97 Itm N09)-610 Item/Subject: ORDER Authorizing an Issue of up to $2,000,000 Aggregate Principal Amount of Bonds Plus up t0 38 of Principal Amount to Fund Costs of Issuance and a Tax Levy Therefor for the planing, design, construction, expansion, remodeling, renovation and equipping of a sports stadium. Responsible Department: plasmce Co®entary: The attached Order would authorize bonds Co fund the Construction of a multi-purpose stadium. The order is contingent upon three Conditions being me First, that by February 1 1998, nuf£i[ien[ funds... in addition to tme proceeds of the bonds he committed to pay for (project) oats... second, that by May 1, 1998, --the(se) %Wditionel Funds he amaissuance.lable .an agreement eement in escrow... ^; and third, that `...prior to agreement satisfactory to the City Council be entered into between eLMaCi[y and the Bangor Blue Ox regarding CM1¢ u9e Of the pro]ect" Further, the order also allows us to issue either tax-exempt or teratic debt for this project. This tax-exempt/taxable decision will depend on the terms and conditions contained in the agreement we negotiate with the Blue Ox. Should they be issued, the bonds will be a part of our next annual Capital harrowing, currently scheduled for September. 1998. Prior to formal action o this Order, a public hearing is required. Additionally, a two thirds majority Of the Council moat approve the issuance of this debt. �� DEPARTMENT HEADC Manager's Co®snts: �,(( Off ow, am 4-() Sous CITY�BNOGE C/ Few-wAAJA CITY —� Order,associated Pub is noticeoto Order, Public unties [o be posted and published Budget Approval: 44) Legal App[ovApproval,NAMOS DIR;g; lk,r{ CZ 30 ZCZTOR Introduced For Panaaga g First Reading Page_of_ g Referral to Pineme Cwmi free Aemgnad to Councilor Tyler October 15, 1997 CITY OF BANGOR (TITLE.) @rbtr AUTHORIZINGMEISSUANCE OF DP TO $2,000,000 AGGREGATE rPRINCIPAL-AMOUNTOF'GENElOkL OBLYOATION-BONDS AND/OR NOTES W ANTICIPATION THEREOF AND A TAX LEVY THEREFOR By the Oily Cuu ell of IM qty of Beeper: ORDERED, TEAT Pursuant to 30-A M.R.S.A. §5]]2, Section 8 of Article VI of the City Charter (Private and Special Laws of 1931, Chapter 56) and all amendments thereof and acts additional thereto, and all other authority thereto enabling, there is hereby authorized the issue and sale at one time and from more on time up to Two Million Dollars ($2,000,000) aggregate principal mount of general obligation bmWs of One City of pronoun, plus up to three percent (3%) of the principal amount of each issue or series to fiord issuance costs. The proceeds derived from the sale of said bonds, including premum, if any, shall be used and are hereby appropriated to pay a portion of the costs (as herein defined) of the following project (the "Pmjem"): ♦ Planning; design, construction, expansion, remodeling, renovation and equipping of a mulfi-purpose stadium. THAT the estimatM.weighted period of utility for the property constituting the Project m bei ed withthe proceeds of said bonds is hereby detemoined to be on least twenty (20)yeare. THAT the date, maturities, denominations, interest rate or rates, place of payment, and other details of each issue of said bouds, including the timing and provision for their sale and award and the selection of an underwriter, shall be determined by the Finance Director with the approval of the Finance Commiuee and the Chairman of the City Council. THAT the bonds hereby authorized may be made subject to call for redemption, with or without apremium, before the date fixed for final paymeut of the bonds, as provided in 30-A M.R.S.A. §5712(6), as amended, m shell be determined by the Finance Director with the approval of the Finance Committee. THAT said bonds shell be signed by the Finance Director, countersigned by the Chairman of the City Council, sealed with the seal of the City, attested by its Clerk, and sball be in such form and contain such from and provisions not inconsistent herewith as they may approve, their approval to be conclusively evidenced by their execution thereof Any issue of Foods may be consolidated with and issued at the more tlme as any other issue of bonds authorized prior to their issuance, and the bonds may be divided into multiple series and issued in separate plans of financing, with the approval of the Finance Commitee and the Chairman of the City Council. THAT pursuant to 30-A M.R.SA. §5]]2, Section 10 ofArticle VI of the City Charter and any other authority thereto enabling, the Finance Director, with approval of the Finance Committee and the Chanmam of the City Council, is hereby autlmfized to issue temporary, bonds of the City in anticipation of the forgoing bond issue, said bonds to be signed by the Finance Director, countersigned by the Clummin of the City Council, sealed with the seal of the City, attested by its Clerk, and otherwise to be in such form mrd contain such terms and provisions including, without limitation, maturities, denominations, interest rate Or rates, place of payment, and other details as they shall approve, thein approval to be conclusively evidenced by their execution thereof. THAT any temporary bonds (including bonds in renewed thrwf) amonzed to be issued under this order may be issued in combination with temporary boards (including bonds in coal thereof) and bonds wilmrized m ed issued by the City Council a any time prior to the date of issuance of the temporary bonds. THAT the Finance Director be and hereby is authorized to select the registrar, paying agent and number agent (the"Transfer AgenP) for the bands and to execute and deliver such contracts and agreements as may be necessary or appropriate to seers their services. THAT the bonds shall be awsferable only on the registration books of the City kept by the transfer agent, and said principal amount of the bonds of the same maturity (but not Of other maturity), upon surrender thereof at the principal office of the transfer agent, with a written instrument of transfer satisfactory to the transfer agent duly executed by the registered owner or his or her anomey duly authorized in writing. THAT the Finance Director and Chairman of the City Council from time to time shall execute such bonds as may be required to provide for exchanges or trarafers of bonds as heretofore authorized, at such bonds to bear the original signature of the Finanw Director and Chairman of the City Council, and in case any officer of the City whose signature appears on any boost shall cease to be such office before the deliver of said bond, such signature shall nevertheless be valid and sufficient for all proposes, the same as if such officer bad remained in office until delivery thereof. THAT upon each exchange or transfer of bonds, the City and transfer agent shall make a charge sufficient to cover any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange, and subsequent in the first exchange or transfer, the cost of which shall be home by the City, the wet of preparing new bonds upon exchanges or transfers thereof stand be paid by the person requesting the same. THAT the bonds and miles issued in anticipation thereof be issued an either a taxable or a tax-exempt basis, as detan diad by the Finance Director, with the approval of the Fhavw Committee. THAT, if the bonds are issued on a tax exempt basis, the officers executing the bonds be and hereby are individually authorized and directed m covenant and certify on behalf of the City that no part of the proceeds of the issue and sale of the bonds authorized to be issued hereunder sball be used d"vecdy or indirectly to acquire levy securities or obligations, the acquisition of which would cause such bonds be be "arbitrage bonds" within the meaning of Section 148 of doe Internal Revenue Code of 1986, as amended (the "Code'). 9J-410 THAT the Finance Director, Chairman of the City Council, Clerk, and other proper officials of the City be, and hereby are, aufariud and empowered in its name and on its behalf to do or cause to be done all such acts and things as may be necessary or desirable in order to elect the ismmm sale, and delivery of the bonds and notes as hereinbefore authorized. THAT if the Finance Director, Chairman of the City Council, or Clerk are for any reason unavailable to approve and execute the bonds or any related firmncing documems, the person or persons then acting in any such rapacity, whether as an assistant, a deputy, or otherwise, is authorized to act for such official with the same force and effect as if such official had himself or herself performed such out THAT in each of the years during which my of the bonds are outstanding there shall be levied a tax in an amount which, with other revenues, if my, available for that purpose, shall be sufficient to pay the interest on said bonds, payable th such years, and the principal of such bonds maturing in such years. THAT, if the bonds are issued on a tax exempt basis, this Order constitutes a Declaration of Official Intent by the City pursuant to Treasury Regulation Section 1.150-2 to reimburse any original expenditures made on the Project out of the General Fund or my other fund or aaount of the City. THAT the issuance of the bonds shall be contingent on the following conditions being accomplished to the satisfaction of the City Council. 1. That by February 1, 1998, sufficient funds and monies in addition to the proceeds of the bonds be committed to pay for costs of the Project in excess of those costs paid for with the proceeds of the bonds (the "Additional Funds"); 2. That by May 1,1998, or such later date as may be established by the City Council, the Additional Funds be available to he expended on the Project and be held in an escrow Cant established by the City or in such other fund and under such other terns as may be approved by the City Council; 3. That prior to issuance of the Bonds, an agie©vent satisfactory to the City Council be entered into between the City and the Bangor Blue Ox regarding the use of the Project. 9]-410 TEAT, if the bonds are issued on a tax exempt basis, the officers executing the bonds be and hereby are individually authorized to covenant good agree, on behalf of the City, fm the beueft of the holders of such bonds, that the City will file any required reports and take my other action that may be necessary to ensure that interest on the bonds will remain exempt from federal income Motion and thst the City will reform'from my action that would cause interest on the bonds to be subjectto federal income taxation. THAT the officers executing the bonds be and hereby are individually authorized to covenant, certify, and agree, on behalf of the City, for the benefit of the holders of such bonds, that the City will file my required reports, make my amoral financial or material event disclosure, and take my other action that may be necessaryto ensure that the disclosure requirements imposed by Rule 15c2-12 of the Securities and Exchange Commission, if applicable, are met. TEAT, if fire bonds are issued on alae exempt basis, the Furnace Director be and hereby is authorized and empowered to mice all such action as may be necessary to designate the bonds as qualified tax-exempt obligations for purposes of Saxon 265(6) of the Code; it being the City Council's intention that, to the extent pertained molar The Code, the bonds be Section 265(6 designated and that the Finance Director with advice of bond counsel, make the required Section 265(6) election with respect to each bonds to the extent that the election may be available and advimble as determined by the Finance Director. THAT the term "cost' or "costs" as used herein and applied to the Project, or my portion thereof, includes, but is not limited ro: (1) the purchase price or acquisition cost of all or my portion of the Project; (2) the cost of construction, building, alteratiory eNergement, reconstruction, renovation, improvement, and equipping of the Project (3) the cost of all appaneomces and other facilities either on, above or under the ground which are used or usable in connection with the Project; (4) the cost of landscaping, me preparation, and remodeling of my improvements or facilities; (5) the cost of all labor, materials, building systems, machinery and equipment; (6) the cost of land, structures, reel property interests, rights, easements, and framhises acquired in cermemion with the Project, (7) the cost of oil utility extensions and site improvements and development; (8) the war of planning, developing, preparation of specifications, surveys, engineering, feasibility studies, legal and other professiomal services associated with the Project; (9) the cost of environmental studies and assessments; (10) the cost offinancing charges and issuance costs, including premium; for insurance interest prior to and during construction, underwriters' fees and tens, legal and accounting fees nal costs, application fees, and other bass and expenses relating to the featuring transaction; and (11) the cost of all other financing authorized hereunder, whether related or mewed to the foregoing. THAT the investment earnings on the proceeds of the bonds, if my, and the excess proceeds of the bonds, if my, be and hereby as appropriated for the following purposes, such proceeds to be held and applied in the following order of priority: 1. Tomycosksof[ Projectinexwssoftheprincipalamomtofthebonds; 2. If the bonds are issued on a tax exempt basis, in accordance with applicable terms and provisions of the Arbitrage arm Use of Proceeds Certificate delivered in connection with the sale of the bonds including, to the extent permitted thereunder, to the City's Criminal Fund. IN CITY COUNCIL October 15, 1997 First Reading Referred to Finance Committee CLRM IN CITY COUNCIL October 27, 1997 - Public Hearing Opened: Members of the General Public spoke In support and in opposition of this issue. Public Hearing Closed. Motion, to Amend item 03 of the last para- graph [ read "tLa[ prior t the issuance of the Bonds, an agreement satisfactory to the City Council be entered into between the City and a organization satisfactory to the City Council regarding the a of the pro - jeer." Motion to Eased use Vote: 6 yes, 2 no, 1 absent Councilors voting yes: Aube, Baldacti, Leen, Soucy, Tyler and Woodcock. Councilors voting no: Blanchette 6 Farnbam,Motion 20 Pass as amended Failed Vote: 5 yes, 3 no, 1 absent ( 6 yes needed for passage) Councilors voting yes: ache, Baldacci, Blanchette. Leen and Woodcock Councilors voting no: Farnham, Saucy and Trlar. Councilor absent: Sullivan 9)-410 O RDCR Title,Authorizing the Issuance of up to $2,000,000 Aggregate Principal Amount of General Obligation Bonds and/or Nokee here 1'be�eo['6na a'Rha Levy ......o[ J�r ,gmdg:ed to .........V Councilmen an 9]-410 PUBLIC HEARING CITY OF BANGOR General Obligation Bonds Not to Exceed $2,000,000 For the Construction of a Multi -Purpose Stadium The Bangor City Council will hold a public hearing at its regular meeting at 7:30 PM on Monday, October 27, 1997 in the City Council Chambers, on the third floor of City Hall, 73 Harlow Street, Bangor, Maine, for the purpose of hearing public comment on a proposed general obligation bond of up to $2,000,000 to be issued as par[ of the City's annual capital bonowing, currently scheduled for September, 1998. Proceeds will be used to fund the planning, design, construction, expansion, remodeling, renovation, and equipping of a multi-purpose stadium. A copy of the entire order is available to the public in the City Clerk's Office at Bangor City Hall. The public is invired to address the Council on this proposed bond issue. Octcbee15,_ 1997 Gail E. CavP.�e' 11 city Clerk: