HomeMy WebLinkAbout1982-264-06.21.1982 Waterloo, Iowa
June 21, 1982
The City Council of the City of Waterloo, Iowa met in regular session
at 7:00 o'clock P.M. at their regular meeting place in said City. The
meeting was called to order and there were present Leo P. Rooff, Mayor, in
the chair, and the following named Councilmen:
Bowers , Burton, Dowie, Getty, Penaluna, Roehr, Wilharm
Absent: None
* * * * * * * *
Councilman Dowie introduced and caused to be read Reso-
lution No. 1982-264 entitled, "A Resolution Authorizing the Execution of a
Memorandum of Agreement by and between the City of Waterloo, Iowa and David
J. Hershberger, doing business as Hershberger Development, regarding the
issuance of Qualified Urban Renewal Area Revenue Bonds" , and moved its
adoption; seconded by Councilman Penaluna . After due consideration
of said resolution by the City Council , the Mayor put the question on the
motion and upon the roll being called the following named Councilmen voted:
Aye: Burton, Bowers , Dowie, Getty, Penaluna,
Roehr, Wilharm
Nay: None
Whereupon, the Mayor declared said resolution duly adopted and signed
his approval thereto.
* * * * * * * *
Upon motion and vote the meeting adjourned.
Mayor Pro-Ym
Attest•
Jack L. Roehr
Clerk u. or
/tarry P. y�ger
RESOLUTION NO. 1982-264
A RESOLUTION AUTHORIZING THE EXECUTION OF A
MEMORANDUM OF AGREEMENT BY AND BETWEEN THE
CITY OF WATERLOO, AND DAVID J. HERSHBERGER
DOING BUSINESS AS HERSHBERGER DEVELOPMENT
REGARDING THE ISSUANCE OF FOR NOT TO EXCEED $200,000
QUALIFIED URBAN RENEWAL AREA REVENUE BONDS
* * * * * * * *
WHEREAS, the City of Waterloo, Iowa (the "City") a municipality of the
State of Iowa, is authorized by the laws of the State of Iowa, and specific-
ally Chapter 419, Code of Iowa, 1981 , as supplemented and amended (the
"Act") , to acquire, improve and equip all or any part of, or any interest in,
land, buildings or improvements suitable for the use of projects located
within a qualified urban renewal area; and
WHEREAS, the project to be completed by David J. Hershberger, doing
business as Hershberger Development is for land, buildings, and improvements
which are suitable for a commercial enterprise; i.e. , the construction of a
sales and warehouse building (the "Project") , and
WHEREAS, the Project is to be constructed in a qualified urban renewal
area, known as the Westfield-Virden Urban Renewal Area, designated as such
pursuant to Chapter 403 of the 1981 Code of Iowa prior to July 1, 1979, and
WHEREAS, the Project is consistent with the urban renewal plan for the
urban renewal area, and
WHEREAS, under the Act, the City is authorized to issue its revenue
bonds for the purpose of financing the costs of any such project; and
WHEREAS, so as to accomplish the purposes of the Act, the City pro-
poses to issue one or more issues of Qualified Urban Renewal Area Revenue
Bonds pursuant to the provisions of the Act as then in effect to finance the
costs of acquiring, improving and equipping certain real estate, buildings
and fixtures for use as a sales and warehouse building by the construction of
a building and adjacent parking area (hereinafter referred to collectively as
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the "Project") of David J. Hershberger, doing business as Hershberger Devel-
opment (the "Developer") , located in the City; and
WHEREAS, the location of the Project within the City will improve the
general welfare of the inhabitants of the City; and
WHEREAS, it is deemed necessary and advisable, to promote the general
welfare of the inhabitants of the City, that the Project be undertaken at the
earliest practicable date, and the Developer has requested satisfactory
assurances from the City that the proceeds of the sale of one or more issues
of Qualified Urban Renewal Area Revenue Bonds of the City in an aggregate
amount sufficient to finance the Project, currently estimated not to exceed
$200,000, will be made available; and
WHEREAS, the City deems it necessary and advisable that it take such
actions as may be required under the Act as then in effect to authorize and
issue one or more issues of Qualified Urban Renewal Area Revenue Bonds to
finance the cost of the Project; and
WHEREAS, a form of agreement, designated as a "Memorandum of Agree-
ment" , has been prepared under which the Developer has stated its willingness
to arrange for the acquisition, improvement and equipping of the Project and
to enter into contracts therefor and, at the time of delivery of the bonds,
to convey, grant or lease the Project and assign such contracts to the City,
or agree to complete the acquisition, improvement and equipping of the
Project, and to enter into a lease of the Project from the City, or a con-
tract to purchase the Project from the City, or a loan agreement with the
City with respect to the Project, or any combination of the foregoing, under
which the Developer will be obligated to make periodic payments sufficient to
pay the principal of and interest and redemption premium, if any, on the
bonds as and when the same shall become due and payable, and if necessary to
vest title to the Project in the Developer, the Developer shall be obligated
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to purchase the interest, if any, of the City in the Project for an addition-
al nominal amount and such lease, contract and agreement shall contain such
other provisions as may be required by the Act as then in effect and such
other provisions as shall be mutually acceptable to the City and the Devel-
oper;
NOW, THEREFORE, Be It Resolved by the City Council of the City of
Waterloo, Iowa, as follows:
Section 1 . That in order to insure the acquisition, improvement and
equipping of the Project, with the resulting public benefits which will flow
therefrom, it is deemed necessary and advisable that Qualified Urban Renewal
Area Revenue Bonds be issued in an amount sufficient to finance the cost of
the Project and that the Memorandum of Agreement hereinafter referred to be
approved and executed for and on behalf of the City.
Section 2. That the Memorandum of Agreement by and between the
Developer and the City, substantially in the form and with the contents set
forth in Exhibit A attached hereto, be and the same is hereby approved and
authorized.
Section 3. That the Mayor is hereby authorized and directed to
execute and the City Clerk is hereby authorized to attest and to affix the
seal of the City to the Memorandum of Agreement substantially in the form and
with the contents set forth in Exhibit A attached hereto.
Section 4. That the City will issue and sell Qualified Urban Renewal
Area Revenue Bonds in an amount sufficient to finance the costs of the
Project subject to the execution of the Memorandum of Agreement herein
authorized and upon the conditions specified in the Memorandum of Agreement.
Section 5. That the project is consistent with the urban renewal plan
for the area.
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Section 6. That all resolutions and parts thereof in conflict here-
with are hereby repealed to the extent of such conflict.
Adopted June 21, 1982.
Mayor Pro- em
Attest: Jack L. Roehr
ity rk/Audito
L y P. Burg
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EXHIBIT A
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT is between the City of Waterloo, Iowa, a
municipality of the State of Iowa (hereinafter referred to as the "City") ,
party of the first part, and David J. Hershberger, doing business as Hersh-
berger Developer,(hereinafter referred to as the "Developer") , party of the
second part;
1 . Preliminary Statement. Among the matters of mutual inducement
which have resulted in the execution of this agreement are the following:
(a) The City is authorized by the laws of the State of Iowa, and
specifically Chapter 419, Code of Iowa, 1981 , as supplemented and amended
(the "Act") , to acquire, improve and equip all or any part of, or any inter-
est in, land, buildings or improvements suitable for the use of projects
located within a qualified urban renewal area.
(b) Under the Act the City is authorized to issue its revenue bonds
for the purpose of financing the costs of any such project.
(c) So as to accomplish the purposes of the Act, the City proposes to
issue one or more issues of Qualified Urban Renewal Area Revenue Bonds pur-
suant to the provisions of the Act as then in effect to finance the costs of
acquiring, improving and equipping certain real estate, buildings and fix-
tures for use as a sales and warehouse building by the construction of a
building and adjacent parking area, (hereinafter referred to collectively as
the "Project") , located in the City, and to lease or sell , or both, the
Project to the Developer, or enter into a loan agreement with the Developer
with respect to the Project, or any combination of the foregoing pursuant to
the provisions of the Act as then in effect (any of the foregoing being
referred to herein as an "Agreement").
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(d) It is deemed necessary and advisable, to accomplish the purposes
of the Act, that the Project be undertaken at the earliest practicable date,
and the Developer has requested satisfactory assurances from the City that
the proceeds of the sale of one or m,Are issues of Qualified Urban Renewal
Area Revenue Bonds of the City will be made available to finance the Project.
(e) Representatives of the City have indicated the willingness of the
City to proceed with and effect such financing and have advised the Developer
that, subject to due compliance with all requirements of law and the obtain-
ing of all necessary consents and approvals and to the happening of all acts,
conditions and things required precedent to such financing, the City by vir-
tue of the Act or such other statutory authority as may now or hereafter be
conferred, will issue and sell one or more issues of its Qualified Urban
Renewal Area Revenue Bonds in an aggregate amount sufficient to finance the
Project.
2. Undertakings on the Part of the City. Subject to the conditions
above stated, the City agrees as follows:
(a) That it will authorize or cause to be authorized, the issuance
and sale of one or more issues of its Qualified Urban Renewal Area Revenue
Bonds, in an aggregate principal amount sufficient to finance the cost of the
Project.
(b) That it will adopt, or cause to be adopted, such proceedings and
authorize and direct the execution of such documents and take, or cause to be
taken such actions as may be necessary or advisable to effect the authori-
zation, issuance and sale of the bonds and the acquiring, improving and
equipping of the Project and the entering into and performance of an Agree-
ment with the Developer with respect to the Project all as then shall be
authorized by law and mutually satisfactory to the City and the Developer.
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(c) That the aggregate periodic payments to be used to pay the
principal of, and interest and premium, if any, on the bonds payable under
the Agreement with the Developer shall be such sums as shall be sufficient to
pay the principal of and interest and redemption premium, if any, on the
bonds as and when the same shall become due and payable, and, if necessary to
vest title to the Project in the Developer, the Developer shall have an
obligation to purchase the interest of the City, if any, in the Project for
an additional nominal amount.
(d) That it will take or cause to be taken such other acts and adopt
such further proceedings as may be required to implement the aforesaid under-
takings or as it may deem appropriate in pursuance thereof.
3. Undertakings on the Part of the Developer. Subject to the con-
ditions above stated, the Developer agrees as follows:
(a) That it will use all reasonable efforts to find one or more
purchasers for the bonds.
(b) That it will enter into a contract or contracts for the acquir-
ing, improving and equipping of the Project, and at the time of the delivery
of the bonds, it will convey, grant or lease the Project and assign such
contracts to the City or agree to complete the acquisition, improvement and
equipment of the Project.
(c) That contemporaneously with the delivery of the bonds, it will
enter into an Agreement with the City under the terms of which the Developer
will obligate itself to pay sums sufficient in the aggregate to pay the
principal of and interest and redemption premium, if any, on the bonds as and
when the same shall become due and payable, any such Agreement to contain
such other provisions as may be required by the Act as then in effect and
such other provisions as shall be mutually acceptable to the City and the
Developer.
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(d) That it will take such further action and adopt such further
proceedings as may be required to implement its aforesaid undertakings or as
it may deem appropriate in pursuance thereof.
4. General Provisions.
(a) All commitments of the City under Paragraph 2 hereof and of the
Developer under Paragraph 3 hereof are subject to the conditions that, on or
before two years from the date hereof (or such other date as shall be mutu-
ally satisfactory to the City and the Developer) , (i ) the City and the
Developer shall have agreed to mutually acceptable terms for the bonds and of
the sale and delivery thereof, and mutually acceptable terms and conditions
of the agreement referred to in paragraph 3, (ii ) the proceedings referred to
in paragraphs 2 and 3 hereof shall have been taken and (iii ) all regulatory
or other governmental approvals requisite to the execution of such documents
and the issuance and sale of the bonds shall have been obtained.
(b) If the events set forth in (a) of this paragraph do not take
place within the time set forth or any extensions thereof and the bonds are
not sold within such time, the Developer will reimburse the City for all
reasonable and necessary direct out-of-pocket expenses which the City may
incur at the Corporation's request arising from the execution of this Memo-
randum of Agreement and the performance by the City of its obligations here-
under, and this Memorandum of Agreement shall thereupon terminate.
IN WITNESS WHEREOF, the parties hereto have entered into this Memo-
randum of Agreement by their officers thereunto duly authorized as of the
14th day of June, 1982.
CITY O�F WATERLOO, IOWA
,
Mayor Pye,_ _-__.
ern
(SEAL) Jack L. Roehr
Attest:
.Ze---;)
.„-- ,/,, (-
Cit erk /Au it
ry P . Bur
-4-
David J. Hershberger
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I , Larry P. Burger, being first duly sworn do hereby depose and
certify that I am the duly appointed, qualified and acting City Clerk of the
City of Waterloo, Iowa; that as such I have in my possession, or have access
to, the complete records of the City Council of said City; that I have care-
fully compared the transcript hereto attached with the aforesaid corporate
records; and that said transcript hereto attached is a true, correct and
complete copy of all of the corporate records showing the action taken by the
City Council of said City on June 21 , 1982, to authorize the execution of a
Memorandum of Agreement by and between said City and David J. Hershberger,
doing business as Hershberger Development, regarding the issuance of Quali-
fied Urban Renewal Area Revenue Bonds.
WITNESS my hand and the corporate seal of said City hereto affixed at
Waterloo, Iowa, this 22nd day of June, 1982.
ity rk /Auditor
(SEAL) La P. Burge
STATE OF IOWA )
) ss.
COUNTY OF BLACK HAWK )
Subscribed and sworn to before me this day, the date last above
written,
Notary Public in and for the
State of Iowa
RESOLUTION NO. 1982-265
RESOLUTION FIXING A DATE FOR HEARING ON PRO-
POSED QUALIFIED URBAN RENEWAL AREA REVENUE BONDS,
NOT TO EXCEED $200,000
SERIES 1982 (HERSHBERGER DEVELOPMENT PROJECT)
* * * * * * * *
WHEREAS, the City of Waterloo, a municipality and political sub-
division in the County of Black Hawk, State of Iowa (the "City") is author-
ized by Chapter 419 of the Code of Iowa, 1981 , as amended (hereinafter
sometimes referred to as the "Act") to issue revenue bonds and loan the
proceeds to one or more contracting parties to be used to pay the cost of
land, buildings and improvements suitable for the use of projects located
within a qualified urban renewal area; and
WHEREAS, the project to be completed by David J. Hershberger, doing
business as Hershberger Development is for land, buildings, and improvements
which are suitable for a commercial enterprise; i.e. , the construction of a
sales and warehouse building (the "Project") , and
WHEREAS, the Project is to be constructed in a qualified urban renewal
area, known as the Westfield-Virden Urban Renewal Area, designated as such
pursuant to Chapter 403 of the 1981 Code of Iowa prior to July 1, 1979, and
WHEREAS, the Project is consistent with the urban renewal plan for the
urban renewal area, and
WHEREAS, the City proposes to make the necessary arrangements with
David J. Hershberger, doing business as Hershberger Development (the "Devel-
oper") , for the financing (as hereinafter described) , or the improvement of,
and purchase of equipment for a sales and warehouse . building by the con-
struction of a building and adjacent parking area, located in the City
(hereinafter sometimes referred to as the "Project"); and
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WHEREAS, the location of this Project within the City will improve the
general welfare of the inhabitants of the City; and
WHEREAS, in order to expedite the anticipated public benefits and
avoid delays which would otherwise occur pending the completion of the pro-
cedures necessary to be carried out by the City to make the required funds
available, and to enable the Developer to proceed with and complete the Pro-
ject, it is considered necessary and desirable that the City provide satis-
factory assurances that the proceeds of the sale of the proposed Qualified
Urban Renewal Area Revenue Bonds, when issued, will be made available to
finance the Project; and
WHEREAS, it is deemed necessary and advisable for the promotion of the
general welfare of the inhabitants of the City, that the Project be acquired,
improved and equipped, as aforesaid, and that the City take such action as
may be required under applicable statutory provisions to authorize and issue
the Series 1982 Bonds, as hereinafter defined, to finance the cost of the
Project; and
WHEREAS, the aggregate cost of the Project, has been estimated not to
exceed $200,000, and it is proposed to pay the cost of the Project, to that
amount, through the issuance of the Qualified Urban Renewal Area Revenue
Bonds, Series 1982 (Hershberger Development Project) (the "Series 1982
Bonds") but it is first necessary to conduct a public hearing on the proposal
to issue the Series 1982 Bonds, as required and provided by Section 419.9 of
the Act;
NOW, THEREFORE, Be It Resolved by the City Council of the City of
Waterloo, Iowa, as follows:
Section 1 . That this Council meet at the Council Chambers in the City
Hall in said City on the 12th day of July, 1982, at 7:00 o'clock P.M. , at
which time and place a public hearing shall be held on the proposal to issue
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to be derived by said City from a Loan Agreement, Mortgage and Security
Agreement between said City and said Developer.
At the time and place fixed for said public hearing, all local resi-
dents who appear will be given an opportunity to express their views for or
against the proposal to issue said bonds.
By order of the City Council June 21, 1982.
/7
' y Cle Auditor
Section 3. That the City hereby recogniz s that actions taken and to
be taken by the Developer in connection with the acquisition and construction
of the Project have been and will be taken in reliance upon the willingness
of the City to issue the Series 1982 Bonds.
Section 4. That all resolutions or parts thereof in conflict herewith.
be and the same are hereby repealed, and this resolution shall be effective
forthwith upon its passage and approval .
Passed and approved June 21, 1982.
9,e_,!1 /
Mayor ro-Tem
Jack L. Roehr
Attest:
C' Clerk/Au ' or
rry P. B er
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I , Larry P. Burger, being first duly sworn, do hereby depose and
certify that I am the duly appointed, qualified and acting City Clerk of the
City of Waterloo, in Black Hawk County, Iowa, and that as such I have in my
possession or have access to the official records of said City and of its
officials and that I have compared the transcript hereto attached with said
official records and that the same constitutes a true, correct and complete
copy of such official records showing the action taken by the City Council of
said City on June 14th, 1982, to fix a date for a public hearing on the
proposal to issue not to exceed $200,000 Qualified Urban Renewal Area Revenue
Bonds , Series 1982 (Hershberger Development Project) of said City.
WITNESS my official signature and the seal of said City at Waterloo,
Iowa, this 22nd day of June, 1982.
ity er /Auditor
L P. Burg
(SEAL)
STATE OF IOWA )
COUNTY OF BLACK HAWK
) ss.
Subscribed and sworn to before me this day, the date last above
written.
Notary ublic in and for the State of Iowa
My commission exp. res: '5? ` 0/(3
(Notarial Seal )