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HomeMy WebLinkAbout26636-11.13.1979 RESOLUTION NO. 2 6 6 3 6 RESOLUTION APPROVING ENGINEERING CONTRACT WITH WAYNE CLAASSEN ENGINEERING & SURVEY- ING, INC. , FOR WAGNER ROAD GRADING, PAV- ING AND DRAINAGE IMPROVEMENT PROJECT, CON- TRACT NO. 177. WHEREAS, engineering services for Wagner Road Grading, Paving and Drainage Improvement Project , Contract No. 177 , in the City of Waterloo, Iowa, are needed , now, therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF WATERLOO, IOWA, that the Engineering Contract dated for the Wagner Road Grading , Paving and Drainage Improvement Project , Contract No. 177 , by and between Wayne Claassen Engineering & Surveying, Inc. , of Waterloo, Iowa , and the City of Waterloo, Iowa, be and the same is hereby approved, and the Mayor and City Clerk authorized to execute the same in behalf of the City of Waterloo, Iowa. Passed and adopted this 13th day of November, 1979. Leo P . Rooff,, Mayor ATTEST: Katherine Gibbs, City Clerk. RESOLUTION NO. a6 L it A RESOLUTION REGARDING THE ISSUANCE OF NOT TO EXCEED $900, 000 IN AGGREGATE PRINCIPAL AMOUNT OF MEDICAL CLINIC REVENUE BONDS (LUKE TAN PROJECT) OF THE CITY OF WATERLOO, IOWA, DIRECTING PUBLICATION OF NOTICE OF INTENTION TO ISSUE, AND CALLING A PUBLIC HEARING ON THE PROPOSAL TO ISSUE SAID BONDS AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT. WHEREAS, the City of Waterloo, Iowa (hereinafter referred to as the "City" ) is a municipal corporation organized and existing under the laws and the Constitution of the State of Iowa , and is authorized and empowered by Chapter 419 of the Code of Iowa (hereinafter referred to as the "Act" ) , to issue Medical Clinic Revenue Bonds and loan the proceeds from the sale of said Bonds to one or more parties to be used to defray all or a portion of the cost of acquiring , constructing , improving and equipping a "Project" as that term is defined in the Act, suitable for use as a medical clinic facility; and WHEREAS, the City has been requested by Luke Tan , a contracting party under Section 419. 1 ( 10 ) of the Act (hereinafter referred to as the "Company" ) , to authorize and issue its Medical Clinic Revenue Bonds pursuant to the provisions of the Act for the purpose of defraying all or a portion of the cost of acquiring , constructing , improving and equipping a medical clinic facility on land leased from The Kinder Corporation , an Iowa nonprofit corporation (hereinafter referred to as the "Project" ) , which Project will be owned and operated by Company; and -3- WHEREAS, the City has determined that there is a public need in the City and its surrounding environs for a medical clinic facility as proposed by Company to provide additional health care and medical services in the City which will add to the welfare and prosperity of the City and its inhabitants ; and WHEREAS the City has determined that the amount necessary to defray all or a portion of the cost of acquisition, con- struction , improving and equipping the Project, including necessary expenses incidental thereto, will require the issuance by the City of not to exceed $900, 000 aggregate principal amount of its Medical Clinic Revenue Bonds pursuant to the provisions of the Act, and it is proposed that the City loan said amount to Company under a Loan Agreement between the City and Company pursuant to which loan payments will be made by the Company in amounts sufficient to pay the principal of and interest and premium, if any, on said Bonds, as and when the same shall be due ; and WHEREAS, the Bonds, if issued , shall be limited obligations of the City, and shall not constitute nor give rise to a pecu- niary liability of the City or a charge against its general credit or taxing powers , and the principal of and interest and premium, if any, on the Bonds shall be payable solely out of the revenues derived from the Project to be financed by the Bonds; and -4- WHEREAS, regulations promulgated under Section 103 of the Internal Revenue Code of 1954, as amended , may require that the Issuer of such Bonds adopt a Resolution with respect to such Bonds or take "some other similar official action" toward the issuance of such Bonds prior to the commencement of construc- tion or acquisition relating to the proposed Project, and it is intended that this Resolution shall constitute "some other similar official action" toward the issuance of the Bonds within the meaning of said federal income tax regulations ; and WHEREAS, there has been presented to the Council a Memo- randum of Agreement, attached hereto as Exhibit "A" which sets forth certain mutual undertakings and agreements between the City and Company, relating to the further processing and issu- ance of said Bonds, and the City believes it desirable and in its best interest that said Memorandum of Agreement be executed for and on behalf of the City; and WHEREAS, before the Bonds may be issued , it is necessary to conduct a public hearing on the proposal to issue the Bonds, all as required and provided by Section 419. 9 of the Act. NOW, THEREFORE, Be It and It Is Hereby Resolved by the City Council of the City of Waterloo, Iowa , as follows : Section 1. A public hearing shall be conducted on December 3 , 1979, at 7 : 00 o' clock P.M. , before this City Council in the Council Chambers at the City Hall in the City -5- of Waterloo, Iowa , on the proposal to issue not to exceed $900, 000 aggregate principal amount of the City' s Medical Clinic Revenue Bonds (Luke Tan Project) , pursuant to the provisions of the Act , for the purpose of defraying all or a portion of the cost of acquiring , constructing , improving and equipping the Project, including necessary expenses incidental thereto, and all local residents who appear at said hearing shall be given an opportunity to express their views for or against the proposal to issue such Bonds; and at said hearing , or any adjournment thereof, this City Council shall adopt a resolution determining whether or not to proceed with the issuance of said Bonds. Section 2. The City Clerk of the City is hereby directed to publish one time, not less than fifteen (15 ) days prior to the date fixed for said hearing , in the Waterloo Courier , a legal newspaper published and having a general circulation within the City, a Notice of Intention to issue said Bonds in substantially the following form: -6- NOTICE OF PUBLIC HEARING ON INTENTION TO ISSUE MEDICAL CLINIC REVENUE BONDS (LUKE TAN PROJECT) Notice is hereby given that a public hearing will be con- ducted before the Council of the City of Waterloo , Iowa , in the Council Chambers at the City Hall in said City at 7 : 00 o' clock P.M. , on December , 1979, on the proposal to issue not to exceed $900, 000 principal amount of the City' s Medical Clinic Revenue Bonds (Luke Tan Project) , pursuant to the provisions of Chapter 419 of the Code of Iowa , for the purpose of defraying all or a portion of the cost of acquiring, constructing , improving and equipping a medical clinic facility within said City, on land leased from the Kinder Corporation. The proposed medical clinic facility will be owned by Luke Tan , a contracting party under Section 419 . 1 ( 10 ) of the Code of Iowa ( the "Company" ) . It is contemplated that a Loan Agreement will be entered into between the City and the Company under which the City would loan to said Company the proceeds from the sale of the Bonds in return for loan payments from the Company sufficient to pay the principal of and interest and premium, if any, on such Bonds as the same shall fall due . Such Bonds , if issued , and the interest thereon will be payable solely out of the revenues derived from the said Loan Agreement and shall never constitute an indebtedness of said City within the meaning of any state constitutional provision or statutory limitation , and shall not constitute nor give rise to a pecuniary liability of said City or a charge against its general credit or taxing powers . All local residents who appear at said hearing shall be given an opportunity to express their views for or against the proposal to issue said Bonds, and at said hearing , or any adjournment thereof , the Council of said City shall adopt a resolution determining whether or not to proceed with the issuance of said Bonds. By Order of the City Council . Katherine Gibbs , Clerk of the City of Waterloo, Iowa -7- Section 3 . The City recognizes that regulations promul- gated under Section 103 of the Internal Revenue Code of 1954, as amended , may require the taking by this City Council of official action or "some other similar official action" , if interest on Medical Clinic Revenue Bonds issued by the City and used to acquire, construct, improve and equip such medical cli- nic facility is to be exempt from federal income taxes . In order to preserve such exemption, this Resolution is intended to constitute solely for federal income tax purposes official action or "some other similar official action" with respect to the issuance of such Bonds. Section 4 . That in order to assure the acquisition, con- struction, improvement and equipping of this medical clinic facility in the City of Waterloo, Iowa , with the resulting public benefits which will flow from the operation thereof, it is deemed necessary and advisable that the Memorandum of Agree- ment, in the form attached hereto as Exhibit "A" , be approved and that the Mayor of the City be and hereby is authorized and directed to execute said Memorandum of Agreement and the City Clerk of the City be and hereby is authorized to attest the same and to affix the seal of the City thereto and said Memo- randum of Agreement is hereby made a part of this Resolution. Section 5. In order that the Project will not be unduly delayed , Company is hereby authorized to make such commitments , -8- expenditures and advances toward payment of the costs of the Project as it considers appropriate , subject to reimbursement from the proceeds of the Bonds when and if delivered , but otherwise without liability on the part of the City. Section 6. That officials of the City are hereby autho- rized to take such further action as may be necessary to carry out the intent and purpose of the Memorandum of Agreement . Section 7. All Resolutions and Orders or parts thereof , in conflict herewith are , to the extent of such conflict, hereby repealed , and this Resolution shall be in full force and effect immediately upon its adoption. Adopted and approved , this 13th day of November, 1979. City of Waterloo, Iowa Leo P. Rooff ,, Mayor Attest : Katherine Gibbs, City Clerk * * * * * * * * -9-