11. Ordinance 1247 - Repealing Ord 1243 (Urban Renewal Plan)ORDINANCE NO. . 24 7
AN ORDINANCE REPEALING ORDINANCE ND. 1243 RELATING To THE
MODIFICATION THE KAL I SPELL , MONTANA URBAN RENEWAL PLAN.
WHEREAS, on July 15, 1996, the City Council of the City of
Kalispell approved ordinance No. 1243 entitled: AN
ORDINANCE RELATING TO THE MODIFICATION OF THE KALISPELL,
MONTANA URBAN RENEWAL PLAN THE URBAN RENEWAL PLAN) TO
APPROVE CERTAIN PROJECTS AS URBAN RENEWAL PROJECTS, and
WHEREAS, it now appears that the city may be able to undertake
certain projects included within the modification without
relying on bonding to fund the projects.
NOW, THEREFORE, HE IT ORDAINED BY THE CITY COUNCIL OF THE CITY of
KAL I S PE LL , MONTA.NA► AS FOLLOWS
SECTION I. That Ordinance No. 1243, (An Ordinance Relating to
the Modification of the Kalispell, Montana Urban
Renewal Plan (the urban Renewal Plan) to Approve
certain Projects as urban Renewal. Projects) i.s
hereby repealed.
SECTION II . This Ordinance shall take effect from and after
thirty days of its passage by the city Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND MAYOR of THE CITY of
AL I S P E LL THIS DAY of AUGUST, 19960
Douglas D. Rauthe - Mayor
Attest:
DORSEY & WHITNEY LLP
MINNEAK-31-IS
127 EAST FRONT STREET
NEW YOKK
WA.SHINGTON, D.C.
SUITE 310
DENVER
LONDON
MISSOULA. MONTANA 59802
SEATZ'LE
13RUSSEL.S
TELEPHONE: (406) 721-6025
FARGO
HONG KONG
FAX: (406) 543--0863
BILLINGS
LIES MOWES
FLOCHESTEFL
MISSOULA
RE NAN ELLINGSON
COSTA MESA
GREAT FALLS
MEMORANDUM
TO: Attached Distribution List
FROM: Mae Nan Ellingson
DATE: August 9, 1996
RE: Kalispell Tax increment Bonds, Series 1996
Enclosed is a slightly revised draft Resolution authorizing the issuance
of these Bonds. A few comments on the draft Resolution and the underlying
concept and assumptions.
1. There will have to be inserted in Section 2.8 an estimate of the
amount of Tax Increment to be received in each Fiscal Year during the term of the
Series 1996 Bonds. similar estimates in 1985 were based on a report by Clark &
Torgerson, which we mentioned in the earlier memo.
2. we have assumed. the Series 1985 Bonds will not be refunded but
will remain outstanding. This means that in order to issue the series 1996 Bonds
payable from Tax Increment on a parity with the series 1985 Bonds, the City must
rneet the conditions specified in section 6 of the Original Resolution, which
authorized issuance of the Series 1985 Bonds. These conditions include certificates
of the Mayor and City Clerk -Treasurer, confirmed by the City Council, as provided
in Section 2.9G of the enclosed draft. This requires a determination of the Principal
and Interest Requirements of the Series 1996 Bonds. The .actual interest rate
applicable to the Series 1996 Bonds will not be known until the Conversion Date.
Consequently, we have provided for a Maxi l.-.um Rate (to be inserted in the
definition in Section 1). The Principal and Interest Requirement can then be
calculated using the Maximum Rate. (We assume the Maximum Rate will be
calculated by Davidson and the City as the highest rate within the 125% coverage
which the Original Resolution requires.)
DORSLY & WHITNEY LLB'
Distribution List
August 9, 1996
Page 2
3. If a sufficient petition for a referendum on ordinance No. 1243 is
filed within 30 days of its second reading (July 15), ordinance No. 1243 does not
become effective until and unless approved by the electors at the referendum, so the
Series 1996 Bonds could not be issued as proposed. If no sufficient petition for a
referendum is filed by August 14, ordinance No. 1243 is then effective until and
unless a sufficient petition for a referendum is submitted and its repeal is approved
by the electors at a referendum, which is the situation contemplated by the enclosed
draft Resolution. Accordingly, the draft Resolution provides for an Escrow Account
into which the proceeds of the Series 1996 Bonds are credited, to be held until the
Conversion Date, as defined. on the Conversion Date the Series 1996 Bonds will
either be remarketed to new Bondholders (if the Conversion Conditions, as defined,
are satisfied) or redeemed (if the Conversion Conditions are not satisfied).
4. The Series 1996 Bonds will bear interest from their date of issue to
the Conversion Date at a fixed rate, to be negotiated by the City and Davidson, as
initial purchaser, appropriate to the relatively short term to the Conversion Date.
From the Conversion Date to their maturity the Series 1996 Bonds will bear interest
at new rates to be established by Davidson as Remarketing Agent appropriate to the
rnarl<et as it exists when the rates are determined but not exceeding the Maximum
Date. If the Series 1996 Bonds cannot be remarketed at par at rates at or below the
Maximum Rate, the remarketing fails and the Series 1996 Bonds are to be redeemed
at par on the Conversion Date.
5. The draft Resolution contemplates that when adopted a Bond
Purchase Agreement will have been submitted by Davidson, providing for the
purchase and remarketing of the Series 1996 Bonds.
If you have any questions or comments on these matters or the
enclosed draft Resolution, please call.
NINE:Irnc
Enclosure
CITY of KALISPELL
TAX INCREMENT URBAN RENEWAL BONDS
BELIES 1996
Distribution List
ISSUER.
City of Kalispell
312 1st Avenue East
Kalispell, MT 59903-1997
Facsimile: (406) 758-7758
Al Thelan
Acting City Manager
Telephone: (406) 758-7700
Larry Gallagher
Community Development Director
Telephone: (406) 758-7741
Facsimile: (406) 758-7739
Glen Neier
City Attorney
Telephone: (406) 758-7700
UNDERWRITER:
D.A. Davidson & co.
8 Third Street North
Great Falls, MT 59401
Facsimile: (406) 791- 7315
reg Jones
Senior Vice President
Telephone: 406) 71-7212
BOND COUNSEL:
Dorsey & Whitney LLP
127 Fast Front Street, Suite 310
Missoula, MT 59802
Facsimile: (406) 543-0863
Mae Nan Ellingson
Telephone: (406) 7 1-6025
Dorsey & VVhitney L.LP
Pillsbury center South
220 South Sixth. Street
Minneapolis, MN 55402-1498
Facsimile: (612) 340-2865
Joe Gonnella
Telephone: (612) 340-8712