HomeMy WebLinkAbout19- RFP - Tax Increment Urban Renewal Revenue Bonds (Midtown Urban Renewal District), Series 2019Request for Proposals
FOR TAX INCREMENT URBAN RENEWAL REVENUE BONDS
(MIDTOWN URBAN RENEWAL DISTRICT), SERIES 2019
CITY OF BOZEMAN, MONTANA
Proposals must be received no later than:
Tuesday, May 21, 2019 at 5:00 pm MST
Deliver hard copies of the proposal to:
Robin Crough, City Clerk PO Box 1230 121 North Rouse Ave, Suite 200 Bozeman, MT 59771
NOTICE IS HEREBY given that the City of Bozeman (“City”) is requesting proposals from lending
institutions willing to issue a loan evidenced by a bond to its Midtown Urban Renewal Tax Increment
Financing District (the “District”). The District has annual tax increments available to make loan
payments. For the current tax year, the District increment revenue was $651,949. The District currently
has no other debt. All proposals must be in the format specified, enclosed in a sealed envelope and
clearly identified with RFP title, company name and due date.
Deliver proposals by Tuesday, May 21, 2019 at 5:00 p.m. MST. It is the sole responsibility of the
proposing firm to ensure that proposals are received prior to the closing time as late submittals will not
be accepted and will be returned.
The physical address is:
City Clerk’s Office, Suite 200, (upstairs) City Hall, 121 N. Rouse Avenue, Bozeman, Montana.
The mailing address is:
City Clerk’s Office, City Hall, P.O. Box 1230, Bozeman, Montana, 59771
(USPS only, if using a shipping company please send to the physical address)
DISCRIMINATION
The City of Bozeman is an Equal Opportunity Employer.
Discrimination in the performance of any agreement awarded under this RFP on the basis of race, color,
religion, creed, sex, age, marital status, national origin, or actual or perceived sexual orientation, gender
identity or disability is prohibited. This prohibition shall apply to the hiring and treatment of the
awarded entity’s employees and to all subcontracts.
As such, each entity submitting under this notice shall include a provision wherein the submitting entity,
or entities, affirms in writing it will not discriminate on the basis of race, color, religion, creed, sex, age,
marital status, national origin, or because of actual or perceived sexual orientation, gender identity or
disability and which also recognizes the eventual contract will contain a provision prohibiting
discrimination as described above and that this prohibition on discrimination shall apply to the hiring
and treatment of the submitting entity’s employees and to all subcontracts.
Failure to comply with the above shall be cause for the City to deem the submittal non- responsive.
For additional information on this RFP, contact Kristin Donald, Finance Director, 406-582-2318,
kdonald@bozeman.net.
DATED at Bozeman, Montana, this 1st day of May, 2019.
Robin Crough
City Clerk
City of Bozeman
For publication on:
Sunday, May 5, 2019
Sunday May 12, 2019
REQUEST FOR PROPOSALS FOR TAX INCREMENT URBAN RENEWAL REVENUE BONDS (MIDTOWN URBAN RENEWAL DISTRICT), SERIES 2019
CITY OF BOZEMAN, MONTANA
NAME OF SOLICITING GOVERNMENT:
City of Bozeman
P O Box 1230
Bozeman, MT 59771-1230
Phone (406) 582-2325
Location:
121 N Rouse Avenue
Bozeman, MT 59771
PURPOSE OF REQUEST:
The City of Bozeman (City) is requesting proposals ”) is requesting proposals from lending institutions willing to
issue a loan evidenced by a bond to its Midtown Urban Renewal Tax Increment Financing District (the “District”).
The District has annual tax increments available to make loan payments. For the current tax year, the District
increment revenue was $651,949. The District currently has no other debt.
The District is seeking a fixed rate loan in the estimated amount of $1,059,000, payable in equal semi-annual
installments over a period of 25 years to fund infrastructure improvements in the District in FY19/20.
Mendenhall to Beall Streetscape Construction
The proposed streetscape project includes the installation of wide sidewalks, paver boulevards, street trees and
new decorative luminaries along two blocks of North 7th Avenue between Mendenhall Street and Beall Street.
A major goal of the District and the Midtown Urban Renewal Plan is to improve pedestrian safety and
connectivity, and improving the aesthetics of the North 7th Avenue Corridor. The project is fully designed and
has received approval from the Montana Department of Transportation.
The successful firm will be required to coordinate work with the City’s Bond Counsel, Dorsey & Whitney, LLP,
Missoula, MT.
INSTRUCTIONS TO PROPOSERS:
1.All firms must include an original executed copy of Addendum A, found on the last page of this Request.
No proposals will be considered without this document.
2.Deadline: Proposals must be RECEIVED, at the address below, no later than 5:00 pm, Tuesday, May 21,
2019.
3.All proposals should be submitted to:
City of Bozeman
Attn: City Clerk
P O Box 1230
Bozeman, MT 59771-1230
4.Any questions must be directed to: Kristin Donald, Finance Director, P.O. Box 1230, Bozeman, MT.
59771-1230, kdonald@bozeman.net with a subject line of: “URBAN RENEWAL BOND RFP QUESTION”
SELECTION CRITERIA:
The City will select the proposal from the lowest most responsible bidder. This will be determined by the
following factors:
1.Interest rate
2.Fees
3.Other terms and conditions
Basic Terms:
2.Purpose and Security: The Bonds will be issued for the purpose of financing the cost of construction
of certain projects to be undertaken within the City’s Midtown Urban Renewal District (the “District”).
The Bonds are payable solely from and secured by a first lien upon and pledge of the Tax Increment to
be received from the District in accordance with the Act and amounts on hand in the debt service
reserve related to the Bonds.
3.Date and Type: The Bonds will be dated, as originally issued, on the date of issuance and delivery
thereof by the City, and will be issued in registered form as to both principal and interest.
4.Maturities and Form: The Bonds are expected to be sold as amortization bonds, meaning, upon
amortization of principal and interest, they will bear a fixed rate of interest with equal or substantially
equal installments of principal and interest on each semiannual payment date. Principal and interest
shall be paid on each January 1 and July 1, commencing July 1, 2019 (provided that if the Bonds are
issued as draw-down Bonds under Paragraph 6 below, the initial installment payment date may be after
July 1, 2019) through and including January 1, 2044, absent prepayment.
5.Interest Payment Dates, Rate: Interest will be payable each January 1 and July 1, commencing July 1,
2019 (provided that if the Bonds are issued as draw-down Bonds under Paragraph 6 below, the initial
installment payment date may be after July 1, 2019), to the registered owners of the Bonds as such
appear in the bond register as of the close of business on the 20th day (whether or not a business day)
of the immediately preceding month. All Bonds for purposes of the proposal would be expected to bear
interest from date of original issue until paid at a single, uniform rate.
Issuer of Bonds: City of Bozeman, Montana
Estimated Principal Amount: $1,059,000.00
Closing Date: On or about May 21, 2019, on a date to be selected by the City
The purchase price of the Bonds will be 100% of the principal amount there
of.
For purposes of your proposal, principal and interest will be paid
semiannually on January 1 and July 1, commencing July 1, 2019 and ending
January 1, 2044, absent prepayment or redemption. Note that if the Bonds
are issued as draw-down bonds at the election of the City in accordance
with Paragraph 6 below, the initial installment payment date may be after
July 1, 2019.
Amortization Bonds: The Bonds will bear interest at a single, uniform interest rate throughout the
term of the Bonds and semiannual principal and interest installments (the sum
of principal and interest) will be equal or substantially equal on each payment
date. As described in Paragraph 6 below, the Bonds, at the election of the City,
may be issued as draw-down bonds, which could affect the preceding
sentence, but not your proposal.
Fixed interest rate throughout the term of the Bonds assuming the full
principal amount of the Bonds is advanced on the Closing Date. As
described in Paragraph 6
Par Purchase:
Semiannual Installments:
Interest Rates:
1.Summary of Terms and Conditions:
6. Draw-Down Bonds at Election of City: The City, at its election, may determine that the Bonds are to
be issued as draw-down bonds. The successful proposer based on the interest rate submitted on the
Bonds on the basis of all proceeds of Bonds being advanced on the Closing Date shall, prior to entering
into the Bond Purchase Agreement, negotiate with the City any effect on the interest rate or rates on
the Bonds assuming the principal amount of the Bonds is advanced in amounts over time during
construction of the financed Projects. If those negotiations fail to result in terms that are acceptable to
the City, the City, in its sole and absolute discretion, may reject the proposal of the initial successful
proposer and proceed to negotiate the terms of draw-down bonds with other proposers or others. The
City expects to notify the successful proposer approximately 10 days before the Closing Date whether
the Bonds will be issued as bonds as to which the full principal amount is advanced on the Closing Date
or whether the Bonds are issued as draw-down bonds.
7. No Book Entry: The Bonds will be issued in certificated form and delivered to the successful purchaser
at closing.
8. Bond Registrar, Transfer Agent and Paying Agent: The City Finance Director will act as bond registrar,
transfer agent and paying agent (the “Registrar”) in connection with the Bonds, provided that the City
may subsequently appoint and pay a fee to another qualified Registrar. The bond register will be kept,
transfers of ownership will be effected and principal of and interest on the Bonds will be paid by the
Registrar. The City reserves the right to remove any Registrar and to appoint a successor.
9. Delivery: The City will deliver to the Registrar the Bonds ready for completion and authentication. The
Bonds will be registered in the name of the original purchaser thereof. On the day of closing and delivery
of the Bonds and following payment of the purchase price thereof by the successful proposer, the City
will furnish to the purchaser a copy of the Bond Resolution, the opinion of Bond Counsel hereinafter
described, a tax certificate in respect of the Bonds and a certificate stating that no litigation questioning
the validity of the Bonds is then pending or, to the knowledge of the applicable officers of the City,
threatened. The purchaser shall submit to the City Finance Director not later than the day of closing a
certificate, in form satisfactory to Bond Counsel, as to the intention of the purchaser to purchase the
Bonds with intent to hold and various certifications as to its financial sophistication and net worth. Such
certificate shall be in the form attached hereto as
Schedule 2.
10. Qualified Tax-Exempt Obligations: The Bonds will be designated by the City as “qualified tax-exempt
obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
11. Legal Opinion: An opinion as to the validity of the Bonds and the exclusion of the interest on the
Bonds from gross income for federal income tax and State of Montana individual income tax purposes
will be furnished by Dorsey & Whitney LLP, of Missoula, Montana, and Minneapolis, Minnesota, as Bond
Counsel, subject to customary limitations. The legal opinion will state that the Bonds are valid and
binding special, limited obligations of the City enforceable in accordance with their terms, except to the
extent to which enforceability thereof may be limited by customary matters, such as the exercise of
judicial discretion or by state or federal laws relating to bankruptcy, reorganization, moratorium or
creditors’ rights.
12. Submission of Proposal:
(A) You are encouraged to submit a proposal to purchase the Bonds. Any proposal must be for
the purchase of all of the Bonds. Proposers may participate the loan to other qualified financial
institutions at their discretion; however, the financial institution submitting the winning
proposal will be the only contact and will speak for the other participating financial institutions.
(B) At a minimum, you must submit an amortization schedule for the Bonds that clearly shows
the single, uniform interest rate in respect of the Bonds and the substantially level dollar
amounts of the semiannual installments of principal and interest due on July 1, 2019 through
and including January 1, 2042. You must also specify the total dollar interest cost over the term
of the Bonds. For purposes of the amortization schedule, please use May 21, 2019 as the date
on which interest will commence on all principal advanced, recognizing the City, in its discretion,
may elect to close on a date other than May 21, 2019. For purposes of submitting the
amortization schedule, you must assume the entire principal amount of the Bonds will be
advanced on the Closing Date.
(C) As provided under Paragraph 6 above, the initial successful proposer based primarily on the
interest rate set forth in the amortization schedule submitted under the foregoing subparagraph
(B) will negotiate with the City terms that govern the Bonds issued as draw-down bonds. If those
negotiations fail to result in terms that are acceptable to the City, the City may reject the
proposal of the initial successful proposer and proceed to negotiate the terms of draw-down
bonds with other proposers or others.
(D) Proposals must be delivered to the City Clerk, 121 N. Rouse, P.O. Box 1230, Bozeman,
Montana 59771-1230, so that the proposal is received by no later than 5:00 p.m.
MT on May 21, 2019, in order to be considered. You are instructed to mark the outside of the
envelope containing the proposal with the words “Proposal for Purchase of Tax Increment
Bonds.”
(E) The City reserves the right to reject any and all proposals, to accept any proposal, or to
negotiate further in respect of any proposal or proposals. The interest rate provided by the
proposers will be the primary basis for determining whether to proceed with a proposal.
The successful proposer must, in addition to the terms governing the Bonds with all the principal
advanced on the Closing Date, negotiate with the City terms of the Bonds as draw-down bonds, and,
provided that there is mutual agreement regarding terms of the Bonds must enter into a bond purchase
agreement on or before 5:00 p.m. MT on June 24, 2019.
TERMS AND CONDITIONS:
1. RESERVATION OF RIGHTS; LIABILITY WAIVER - All proposals submitted in response to this RFP
become the property of the City and public records and, as such, may be subject to public
review.
The City reserves the right to accept or reject any and all proposals; to add or delete items and/or
quantities; to amend the RFP; to waive any minor irregularities, informalities, or failure to conform
to the RFP; to extend the deadline for submitting proposals; to postpone award for up to 30 days;
to award one or more contracts, by item or task, or groups of items or tasks, if so provided in the
RFP and if multiple awards or phases are determined by the City to be in the public interest; and
to reject, without liability therefore, any and all proposals upon finding that doing so is in the
public interest.
The City of Bozeman reserves the right to reject the proposal of any person/firm who previously
failed to perform properly to the satisfaction of the City of Bozeman, or complete on time
agreements of similar nature, or to reject the proposal of any person/firm who is not in a position
to perform such an agreement satisfactorily as determined by the City of Bozeman.
The City of Bozeman reserves the right to determine the best qualified consultant and negotiate
a final scope of service and cost, negotiate a contract with another consultant if an agreement
cannot be reached with the first selected consultant, or reject all proposals. The professional
services contract between the City of Bozeman and the successful consultant will incorporate the
consultant’s scope of service and work schedule as part of the agreement (see Attachment 2 for
form of professional services agreement).
This RFP does not commit the City to award a contract. The City assumes no liability or
responsibility for costs incurred by firms in responding to this request for proposals or request for
interviews, additional data, or other information with respect to the selection process, prior to
the issuance of an agreement, contract or purchase order. The proposer, by submitting a
response to this RFP, waives all right to protest or seek any legal remedies whatsoever regarding
any aspect of this RFP.
The City reserves the right to cancel, in part or in its entirety, this RFP including, but not limited
to: selection procedures, submittal date, and submittal requirements. If the City cancels or revises
this RFP, all proposers who submitted proposals will be notified using email.
2. CONFIDENTIALITY AND DISCLOSURE OF INFORMATION - Upon completion of negotiations or a
determination that no proposals will be pursued, one copy of each submitted proposal shall be
retained for the official files of the City and will be considered a public record.
3. NO PARTNERSHIP/BUSINESS ORGANIZATION - Nothing in this RFP or in any subsequent
agreement, or any other contract entered into as a result of this RFP, shall constitute, create, give
rise to or otherwise be recognized as a partnership or formal business organization of any kind
between or among the City and respondent proposer.
4. EMPLOYMENT RESTRICTION AND INDEMNITY - No person who is an owner, officer, employee,
contractor, or consultant of a proposer shall be an officer or employee of the City. No rights of
the City’s retirement or personnel rules accrue to a proposer, its officers, employees, contractors,
or consultants. Proposers shall have the responsibility of all salaries, wages, bonuses, retirement,
withholdings, worker’s compensation and occupational disease compensation, insurance,
unemployment compensation other benefits and taxes and premiums appurtenant thereto
concerning its officers, employees, contractors, and consultants. Each proposer shall save and
hold the City harmless with respect to any and all claims for payment, compensation, salary,
wages, bonuses, retirement, withholdings, worker’s compensation and occupational disease
compensation, insurance, unemployment compensation other benefits and taxes and premiums
in any way related to each proposer’s officers, employees, contractors and consultants.
5. ACCESSIBILITY - Upon reasonable notice, the City will provide assistance for those persons with
sensory impairments. For further information please contact the ADA Coordinator Mike Gray at
406-582-3232 or the City’s TTY line at 406-582-2301
6. GOVERNING LAW - This RFP and any disputes arising hereunder or under any future agreement
for the sale and purchase of shares, interests, or rights shall be governed hereafter and construed
and enforced in accordance with the laws of the State of Montana, without reference to principles
of choice or conflicts of laws.
7. MISCELLANEOUS - No conversations or agreements with any officer, employee, or agent of the
City shall affect or modify any term of this RFP. Oral communications or any written/email
communication between any person and the designated contact City staff shall not be considered
binding.
Statement of Non-discrimination – Attachment 1
__________________________________(name of entity submitting) hereby affirms it will not
discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or
because of actual or perceived sexual orientation, gender identity or disability and acknowledges and
understands the eventual contract will contain a provision prohibiting discrimination as described above
and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees
and to all subcontracts.
______________________________________
Name and title of person authorized to sign on behalf of submitter