Resolution 3626 - Awarding Sale of $2,100,000 Urban Renewal BondsI
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CERTIFICATE OF MINUTES RELATING TO
$2,100,000 Tax Increment urban Renewal Bonds
issuer: City of Kalispell, Flathead County, Montana
Governing Body: city Council
Kind, date, time and place of meeting: A regular meeting
held on November 18, 1985, at 7:30 p.m., in the City
Council Chambers, City Hall, Kalispell, montana.
members present: Councilmen Saverud, Ruiz, Nystul, Manning, Palmer,
Springer
Members absent: Councilmen Grainger, Schindler
Documents attached:
Minutes of said meeting (pages): 363-365
RESOLUTION NO. 3626
RESOLUTION AUTHORIZING THE ISSUANCE AND AWARDING
THE SALE OF $2,100,000 TAX INCREMENT URBAN
RENEWAL BONDS, SERIES 1985 FOR THE PURPOSE OF
FINANCING A PORTION OF THE COSTS OF VARIOUS
PUBLIC IMPROVEMENT PROJECTS DESIGNATED THE 1985
PROJECTS
I, the undersigned, being the duly qualified and
acting recording officer of the public corporation issuing
the obligations referred to in the title of this
certificate, certify that the documents attached hereto,
-....as described above, h ' ave been c axefully compared with the
original records of ' said corporation in my legal custody,
from which they have been transcribed; that said documents
are a correct and complete transcript of the.minutes of a
meeting of the governing body of said corporation, and
correct and complete copies of all resolutions and other
actions taken and of all documents approved by the
governing body at said meeting, so far as they relate to
said obligations; and that said meeting was duly held by
the governing body at the time and place and was attended
throughtout by the members indicated above, pursuant to
call and notice of such meeting given as required by law.
WITNESS my hand officially as such recording
officer this 18th day of November, 1985.
(SEAL)
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member Ruiz introduced the following
resolution and -moved its adoption -
RESOLUTION NO. 3� ;L�
RESOLUTION AUTHORIZING THE ISSUANCE AND AWARDING
THE SALE OF $2,100,000 TAX INCRrMENT URDAN
RENEWAL BONDS, SERIES 1985 FOR THE PURPOSE OF
FINANCING A PORTION OF THE COSTS OF VARIOUS
PUBLIC IMPROVEMENT PROJECTS DESIGNATED THE 1985
PROJECTS
BE IT RESOLVED by the City Council of the City of
Kalispell, Montana, as follows:
section 1. Recitals.
1.01. Authorization. Under the provisions of
the Act, the City is authorized to create urban renewal
areas, prepare and adopt a redevelopment plan thereforand
make amendments thereto, undertake urban renewal proje'cEs
therein, provide for the segregation and collectio ' n of tax
increment with respect to taxes collected in such areas,
issue its bonds to pay the costs of such projects and
pledge to the repayment of the bonds the tax increment and
other revenues derived from projects undertaken within the
urban renewal area.
1.02. Prior City Actions. Pursuant to the Act,
the city has determined that blighted property is located
within the Kalispell Downtown Redevelopment Project Area
created as an urban renewal area pursuant to ordinance No.
-'9733, adopted S ' epte-mber' 10, l979-"f'tHd Urban Renewal Area)r
and that the rehabilitationt redevelopment or a
combination thereof is necessary in the interest of the
public health, safety, morals or welfare of the residents
of the City, and has adopted the Kalispell Downtown
Redevelopment Plan (the urban Renewal Plan) which provides
-for the segregation and collection of Tax Increment with
respect to the Urban Renewal 2�rea. The Urban Renewal, Area
and the Urban Renewal Plan providing for the segregation
and collection of the Tax increment have been duly and
validly created and adopted in strict accordance with
applicable provisions of the Act.and are in full force and
effect. I
1.03. The"198'5 Projects * in accordance with
amendments to the Urban Renewal. Plan adopted November 4,
1985, by Ordinance No. 1065, after a public hearing duly
conducted on October 21, 1985, the City has determined t ' he
need to undertake the Parking Improvement Project, the
Westside Park Project, the Land Redevelopment Project and
the Fifth Avenue West Construction Project collectively
referred to as the 1985 Projects and as more fully
described below:
a) The Parking Improvements Project will consist
of the acquisition of land for and the construction of
off-street parking spaces in the Urban Renewal Area.
The cost of the Parking Improvements Project is
estimated to be $500,000. 1
b) The Westside Park Project will consist of the
acquisition of land for and the furnishing and
equipping of a neighborhood park adjoining the Elrod
Grade School within the Urban Renewal Area. The cost
of the Westside Park Project is estimated to be
$200,000.
c) The Land Redevelopment Project will consist
of the acquisition by the City of certain parcels of
land deemed "blighted" as defined by the Act within "
the Project Area and the undertaking of clearance and
demolition activities necessary to make the land
available for redevelopment by private enterprise.
The estimated cost of the Land Redevelopment Project
is $500,000.
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d) The Fifth Avenue west construction Project
consists of reconstruction of sewer and water mains
under Fifth Avenue West and the evidencing and
resurfacing of Fifth Avenue West from Center Street to
Sixth Street West. The cost of the Fifth Avenue West
Construction Project is estimated to be $800,000.
1.04. Use of Tax Increment Bonds to Fund the
1985 Projects. In approving the-lTB-5Projects, _Ch�eCity
has agreed to issue tax increment bonds of the City to
finance a portion of the cost of the 1985 Projects.
1.05. Findings and Determinations. it is hereby
found, determine-dand declaredby this Council as follows:
A. the 1985 Projects comprise urban renewal
projects under the Act and are located within the
Urban Renewal Area;
B. the Urban Renewal Area has been determined to
be blighted and.appropriate for such Projects;
C. t . he undertaking, acquisition, construction
and reconstruction of the Projects will provide
necessary public improvements, will encourage further
development and redevelopment within the urban Renewal
Area and are consistent with and will promote the
objectives and policies of the Urban Renewal Plan as
amended;
D. (i) a workable and feasible plan exists for
making available adequate housing for persons
whose housing or.businesses may be displaced by the
Projects;
(ii) the urban Renewal Plan As amended
conforms to the comprehensive plan or parts thereof
of the City as a whole;
(iii) the urban Renewal Plan as amended and
the Projects will afford maximum opportunity,
consistent with the sound needs of the city as a
whole, for the rehabilitation or redevelopment of the
Urban Renewal Area by private enterprise; and
(iv) a sound and adequate financial program
exists for the financing of the Project;
E. the estimated Tax Increment to be received by
the City from the Urban Renewal Area and to be pledged
to the payment of the Series 1985 Bonds will be
.sufficient to pay the principal thereof and interest
thereon when due; and
F. it is in the best interests of the city and
its residents to undertake and construct the 1985
Projects and to issue and sell the Series 1985 Bonds as
provided in the Resolution and this Resolution.
Section 2. Authorization -6f issuance of Bonds
and Award of Sale.
2.01. issuance of Bonds. Pursuant to the
�Clted the findings and determinations
Authority above and
set forth in section 1.05 hereoff it is hereby determined
that the City is authorized and intends to issue
$2,100,000 in aggregate principal amount of Tax Increment
urban Renewal Bonds (Series 1985) to finance a portion of
the costs of the 1985 Projects.
2.02. Sale of Bonds. Pursuant to MCA 7-15-#322
(a) the city has entered into a Bond Purchase Agreement
with Dain Bosworth (the Purchaser) for the sale of the
Series 1985 Bonds. The Purchaser has agreed to purchase
the Series 1985 Bonds at the price of $2,047,500 plus
interest accrued thereon to the date of delivery. The
bonds will bear interest payable semi-annually at the
annual rate set forth below on each January 1 and July 1,
commencing July 1, 1986 and shall mature on july 1,
subject to prior redemption and prepayment, in the
following respective years and amounts as follows:
Year
Amount
Interest Rate
1987
$ 60,000
6.25%
1988
65,000
6.75%
1989
75,000
7.25%
1990
80,000
7,75%
1991
90,000
8.00%
1992
95,000
8.20%
1993
.105,000
8.40%
1994
115,000
8.60%
1995
125,000
8.80%
1996
140,000
9.00%
1997
150,000
9.10%
1998
165,000
9.20%
1999
180,000
9.30%
2000
200,000
9.40%
2001
215,000
9.50%
2002
240,000
9.50%
In addition to the basic interest rate set forth
above, all Bonds shall bear additional interest at the
rate of .50% for the limited period from January 1, 1986
to January lt 1987. The net effective interest rate on
the Bonds is 9.153% per annum.
2.03. Confirmation of Sale. The City hereby
confirms the sale of the series 1985 Bonds to the
purchaser and ratifies the terms of the Bond Purchase
A.g-reement,, a copyof which shall be attached to this
Resolution as Exhibit i. -
section 3. Bond Resolution.
The form of the Series 1985 Bonds, covenants
respecting the payment thereof and other matters -
pertaining thereto shall be set forth in the Bond
Resolution to be adopted by th,is Council
on 6, Z
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE
CITY OF KALISPELL, MONTANA, on th.is LK day of Novemb-e-r,
1985.
ClerK
SEAL)
Tne motion for the adoption of the foregoing
resolution was duly seconded by Councilman Soringer and
upon vote being taken thereon, the following voted in
favor thereof: C uncilmen Ruiz, Nystul. Manninj palmer- SpriLiger
and Saverud
and the following voted against the same: Non
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whereupon said resolution was declared duly passed and
adopted. certify that the foregoing is a
1, the undersigned, city clerk of the City Of.KalisPell-' Montana
true copy of the Resolution passed -by the City Council of the City of_Kalispell,
at a regular meeting held December 1-6, 1985 �f-
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Montana
city clerk of the CitY Of Kali -spell,