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HomeMy WebLinkAboutResolution 4732 Call for Public Hearing for NEURD Bonding, and Reimbursement Declaration U GO RESOLUTION NO. 4732 RESOLUTION CALLING A PUBLIC HEARING TO APPROVE CERTAIN PUBLIC INFRASTRUCTURE PROJECTS IN THE NORTHEAST URBAN RENEWAL DISTRICT AS URBAN RENEWAL PROJECTS AND TO FINANCE THE PROJECTS THROUGH THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL BONDS; AND MAKING A REIMBURSEMENT DECLARATION IN THE EVENT THAT TAX- EXEMPT BOND PROCEEDS REIMBURSE ORIGINAL EXPENDITURES OF THE CITY BE IT RESOLVED by the City Commission(the"Commission")of the City of Bozeman, Montana(the "City"), as follows: Section 1. Recitals. 1.01. Pursuant to Resolution No. 3835, adopted on August 15, 2005, the Commission determined that blighted areas existed within the boundaries of the City and appointed an urban renewal planning committee to prepare an urban renewal plan. 1.02. The Commission, pursuant to Ordinance No. 1655 (the "Ordinance"), adopted on November 28, 2005, created the Northeast Urban Renewal District (the "District") and approved the Northeast Urban Renewal District Plan(the"Plan")for the District containing a tax increment financing provision, all as set forth in the Ordinance and the Plan. 1.03:. Pursuant to the Plan, tax increment financing is to be used to further the implementation goals in the Plan, which include ensuring the health, safety and security of the District by repairing or replacing outdated or insufficient infrastructure and by incorporating sidewalks, crosswalks, bike lanes and trails in the design for construction or reconstruction of streets and roadways. 1.04. In addition, the Plan created the Northeast Urban Renewal Board (the "Board") to exercise the powers of an urban renewal agency under the Act with respect to the District and to implement the Plan. Among other things,the Board is required to prepare an annual work program and budget for projects in the District, which program and budget are subject to review and approval by the Commission. Section 2. The Proj ects. On October 4,2016,the Board adopted Resolution No. 2017- 01, in which it prioritized the following projects,which were also identified in the Board's annual work plan for fiscal year 2017, in the following listed order of importance: Page 1 of 6 Resolution 4732, Call for a Public Hearing for NEURD Bonding;and Reimbursement Declaration • Reconstruction of East Tamarack Street(the "East Tamarack Project"); • Reconstruction of East Peach Street(the"East Peach Street Project"); • Reconstruction of North Ida Avenue (the "North Ida Avenue Project"); • Reconstruction of Front Street(the"Front Street Project"); and • Reconstruction of East Aspen Street and construction of a pedestrian bridge to cross Bozeman Creek and connect to the existing trail on the other side (the "East Aspen Street Project" and, collectively with the projects identified above,the "Projects"). The Board has worked with Kadrmas, Lee & Jackson, Inc. (the "Engineer") to determine approximate engineering and construction costs for the Projects. The Engineer estimates that engineering and construction of the East Tamarack Project will cost approximately$582,500; the East Peach Street Project will cost approximately $743,800; the North Ida Avenue Project will cost approximately $290,500; the Front Street Project will cost approximately $193,700 and the East Aspen Street Project will cost approximately $166,200, for a combined engineering and construction cost of the Projects of$1,976,700. Costs of issuance of the Bonds and other costs associated with the sale and issuance of the Bonds are not included in the foregoing costs. The City's Administrative Services Director has determined that the City can issue approximately $1,446,000 in principal amount of tax increment revenue bonds (the "Bonds"), based on the available tax increment revenues of the District, as calculated by using current information from the Department of Revenue of the State of Montana. The Projects are contemplated by and within the scope of the Plan, and are eligible for tax increment financing under the Act. The Board has,by its Resolution No. 2017-01,requested that the Commission approve the Projects as urban renewal projects under the Act and issue tax increment revenue bonds, payable from tax increment revenues of the District,to finance all or a portion of the Projects, as the bonding capacity of the District allows. The estimated maximum principal amount of Bonds the District can support($1,446,000)is not sufficient to finance in full the costs of all of the Projects, recognizing that future taxable values of taxable property in the District may allow the Bonds to be issued in a different principal amount. If the Projects are approved as urban renewal projects,the Commission will direct the Board to undertake the Projects only to the extent that funding is available to complete such Projects, from proceeds-of the-Bonds or otherwise. Section 3. Preliminary Findings. The Commission hereby finds, as a preliminary matter,with respect to the Projects as follows: a. no persons will be displaced from their housing by the Projects; b. the Plan and the Projects conform to the comprehensive plan or parts thereof for the City as a whole; Page 2 of 6 Resolution 4732, Call for a Public Hearing for NEURD Bonding;and Reimbursement Declaration C. the Plan and the Projects will afford maximum opportunity, consistent with the needs of the City as a whole, for the rehabilitation or redevelopment of the District by private enterprise; d. the issuance of the Bonds in the estimated principal amount of$1,446,000 is adequate to cover costs of a portion of the Projects;because the Commission will direct the Board to undertake the Projects only to the extent that funding is available to complete such Projects, whether from proceeds of the Bonds or otherwise, there is expected to be a sound and adequate financial program for the financing of such Projects; and e. the Projects constitute urban renewal projects within the meaning of the Act and the Plan. Section 4. Public Hearin. A public hearing is hereby called and shall be held on December 19,2016 at 6:00 p.m. in the City Commission Room at City Hall, 121 N.Rouse Avenue, Bozeman, Montana, on the approval of the Projects and the City's proposed issue of the Bonds. The Bonds will be payable from the tax increment collected within the District. Section 5. Notice. Notice of the public hearing shall be published in the Bozeman Daily Chronicle on December 4 and December 11, 2016, in substantially the form attached as Exhibit A hereto (which is incorporated by reference and made a part hereof). Section 6. Reimbursement Expenditures. 6.1. Regulations. The United States Department of Treasury has promulgated regulations governing the use of proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City for project expenditures paid by the City prior to the date of issuance of such bonds. Those regulations(Treasury Regulations, Section 1.150-2)(the"Regulations")require that the City adopt a statement of official intent to reimburse an original expenditure not later than 60 days after payment of the original expenditure. The Regulations also generally require that the bonds be issued and the reimbursement allocation made from the proceeds of the bonds within 18 months (or three years, if the reimbursement bond issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) after the later of(i) the date the expenditure is paid or (ii) the date the project is placed in service or abandoned,but(unless the issue qualifies for the "small issuer" exception from the arbitrage rebate requirement) in no event more than three years after the date the expenditure is paid. The Regulations generally permit reimbursement of capital expenditures and costs of issuance of the bonds. 6.2. Prior Expenditures. Other than(i)expenditures to be paid or reimbursed from sources other than the Bonds, (ii) expenditures constituting preliminary expenditures within the meaning of Section 1.150-2(f)(2) of the Regulations, or (iii) expenditures in a "de minimus" amount (as defined in Section 1.150-2(f)(1) of the Regulations), no expenditures for the Projects have been paid by the City before the date 60 days before the date of adoption of this Resolution. 6.3. Declaration of Intent. The City reasonably expects to reimburse the expenditures made for costs of the Projects out of the proceeds of Bonds in an estimated maximum aggregate principal amount of$1,446,000 after the date of payment of all or a portion of the costs of the Page 3 of 6 Resolution 4732, Call for a Public Hearing for NEURD Bonding;and Reimbursement Declaration Projects. All reimbursed expenditures shall be capital expenditures,a cost of issuance of the Bonds or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations. 6.4. Budgetary Matters. As of the date hereof,there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside)to provide permanent financing for the expenditures related to the Projects, other than pursuant to the issuance of the Bonds. The statement of intent contained in this Resolution,therefore,is determined to be consistent with the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. 6.5. Reimbursement Allocations. The City's Administrative Services Director shall be responsible for making the "reimbursement allocations" described in the Regulations, being generally the transfer of the appropriate amount of proceeds of the Bonds to reimburse the source of temporary financing used by the City to make prior payment of the costs of the Projects. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the Bonds or the Projects and shall specifically identify the actual original expenditure being reimbursed. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, this 21 st day of November, 2016. CARSON TAYLOR Mayor ATTEST: c r: O, ' ROBIN CROUCH, -A-* City Clerk APPROV AS TO FORM: GRE ULLIVAN City Attorney Page 4 of 6 Resolution 473Z Call for a Public Hearing for NEURD Bonding;and Reimbursement Declaration EXHIBIT A NOTICE OF PUBLIC HEARING TO APPROVE CERTAIN PUBLIC INFRASTRUCTURE PROJECTS IN THE NORTHEAST URBAN RENEWAL DISTRICT AS URBAN RENEWAL PROJECTS AND TO FINANCE THE PROJECTS THROUGH THE ISSUANCE OF TAX INCREMENT REVENUE BONDS NOTICE IS HEREBY GIVEN that the City Commission (the "Commission") of the City of Bozeman, Montana(the "City")will hold a public hearing on December 19, 2016 at 6:00 p.m. in the City Commission Room at City Hall, 121 N. Rouse Avenue, Bozeman, Montana on the approval of the following projects in the Northeast Urban Renewal District as urban renewal projects: reconstruction of East Tamarack Street; reconstruction of East Peach Street; reconstruction of North Ida Avenue; reconstruction of Front Street; and reconstruction of East Aspen Street and construction of a pedestrian bridge to cross Bozeman Creek and connect to the existing trail on the other side (collectively,the "Projects"). It is proposed that the City will issue and sell its urban renewal tax increment revenue bonds (the "Bonds") in an estimated principal amount of$1,446,000, to fund all or a portion of the Projects. The Commission will instruct the Northeast Urban Renewal Board to issue the Bonds only up to an amount for which sufficient tax increment is estimated to be available to repay the Bonds as and when due. Any interested persons may appear and will be heard or may file written comments with the City Clerk prior to such hearing. Dated:November 28, 2016. ROBIN URI) •x= City Clerk �t•., 1883 Publication Dates: December 4, 2016 �TiN co. to ,. December 11, 2016 A-1 Resolution 4732, Call for a Public Hearing for NEURD Bonding;and Reimbursement Declaration CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the "City"), hereby certify that the attached resolution is a true copy of a Resolution No. 4732 entitled: "RESOLUTION CALLING A PUBLIC HEARING TO APPROVE CERTAIN PUBLIC INFRASTRUCTURE PROJECTS IN THE NORTHEAST URBAN RENEWAL DISTRICT AS URBAN RENEWAL PROJECTS AND TO FINANCE THE PROJECTS THROUGH THE ISSUANCE OF TAX INCREMENT URBAN RENEWAL BONDS; AND MAKING A REIMBURSEMENT DECLARATION IN THE EVENT THAT TAX-EXEMPT BOND PROCEEDS REIMBURSE ORIGINAL EXPENDITURES OF THE CITY" (the "Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a regular meeting on November 21,2016,and that the meeting was duly held by the City Commission and was attended throughout by a quorum,pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that,upon vote being taken on the Resolution at said meeting,the following Commission members voted in favor thereof: rAnj qcy-t?jA a b( , T�!(A 116 l �Igy ✓iAt LQ%Aryi 5 RJnAe.l;a aAAak Vl W-W ; voted against the same: -( V=V4 uSS abstained from voting thereon: (2 or were absent: WITNESS my hand and seal officially this 22nd day of November, 2016. 13 (SEAL) -4 ROBIN CROUGH; A City Clerk A-2 `