HomeMy WebLinkAboutResolution 5167 Authorizing the Issuance and Negotiated Sale of Midtown Urban Renewal TIF Bonds 1
RESOLUTION 5167
RESOLUTION RELATING TO UP TO $6,500,000 TAX INCREMENT URBAN
RENEWAL REVENUE BONDS (BOZEMAN MIDTOWN URBAN RENEWAL
DISTRICT), SERIES 2020; AUTHORIZING THE ISSUANCE AND PRIVATE
NEGOTIATED SALE THEREOF
BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman,
Montana (the “City”), as follows:
Section 1
Recitals.
1.01. Under the provisions of Montana Code Annotated, Title 7, Chapter 15, Parts 42 and
43 (the “Act”), the City is authorized to create an urban renewal area, prepare and adopt a
redevelopment plan therefor and amendments thereto, undertake urban renewal projects therein,
provide for the segregation and collection of tax increment with respect to taxes collected in such
area, issue its bonds to pay the costs of such projects and to refund bonds previously issued under
the Act 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. Pursuant to the Act and Ordinance No. 1685 adopted by the Commission on
November 27, 2006, as amended by Ordinance No. 1925, adopted by the City Commission on
December 16, 2015 (collectively, the “Ordinance”), the City has created the Bozeman Midtown
Urban Renewal District (the “District”) as an urban renewal district and has approved the Bozeman
Midtown Urban Renewal Plan (the “Plan”) for the District containing a tax increment financing
provision, all as set forth in the Ordinance and the Plan.
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1.03. The Plan details conditions of blight in the District, including physical deterioration
of public improvements, including with respect to streets, curbs, gutters, sidewalks, storm
drainage, lighting and landscaping. In addition, the Plan outlines goals and initiatives for the
District, including installing signage, lighting, landscaping and sidewalk, curb, gutter and street
improvements, to promote economic development, improve multi-modal transportation and
improve, maintain and support innovation in infrastructure.
1.04. On January 13, 2020, the Commission adopted Resolution No. 5125, calling a
public hearing to approve the design, engineering and construction of various public infrastructure
improvements within the District, including (i) development of Aspen Street as a “festival” street,
including sidewalk, street light and curb and gutter improvements, pedestrian crossing, street trees
and stormwater infrastructure improvements to Aspen Street between North 5th Avenue and North
7th Avenue; (ii) installation of angle parking infrastructure along the western edge of the Westlake
BMX Park; (iii) street, sidewalk, street light and curb and gutter improvements, pedestrian
crossing, street trees and stormwater infrastructure improvements to North 7th Avenue between
Durston Road and Mendenhall Street; and (iv) construction of a multi-use path, allowing
pedestrian and bike connectivity to the Westlake BMX Park, the Aspen Street improvements
described above and a new mixed-use development in the District known as the Aspen Crossing
Project (such public infrastructure improvements, collectively, the “Initial Project”) and the
expenditure of tax increment revenues or the issuance of tax increment revenue bonds to pay all
or a portion of the costs of the Initial Project.
1.05. On February 10, 2020, following a duly noticed public hearing, the Commission
adopted Resolution No. 5126, approving the Initial Project and the use of tax increment revenues
or the issuance of tax increment revenue bonds to pay or finance all or a portion of the costs of the
Initial Project, and making certain findings with respect to the Initial Project. Resolution No. 5126
also authorized officers of the City to pursue a negotiated sale of the City’s tax increment revenue
bonds with one or more banks. Such authorized officers have subsequently determined that it is
in the best interests of the City to instead proceed with a negotiated sale to an underwriter, as
described below. Section 4 of Resolution No. 5126 is therefore expressly superseded by this
resolution, and is of no further force or effect.
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1.06. The City has determined to make certain improvements to sewer lines or mains
serving North 5th Avenue in the District (the “Sewer Improvements”), and has determined to
finance the costs using tax increment revenues or the proceeds of tax increment revenue bonds.
The Sewer Improvements are an eligible urban renewal project under the Plan and the Act. The
Commission hereby finds with respect to the Sewer Improvements as follows:
a. no persons will be displaced from their housing by the Sewer
Improvements;
b. the Plan and the Sewer Improvements conform to the Bozeman
Community Plan or parts thereof for the City as a whole;
c. the Plan and the Sewer Improvements 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. there is expected to be a sound and adequate financial program for the
financing of the Sewer Improvements; and
e. the Sewer Improvements constitute an urban renewal project within the
meaning of the Act and the Plan.
Based on such findings, the Commission hereby determines to undertake the Sewer
Improvements in conjunction with the Initial Project (the Initial Project, together with the Sewer
Improvements, the “Project”), and to finance all or a portion of the Project through the issuance of
tax increment revenue bonds, as described below.
Section 2
Authorization; Sale of Bonds; Bond Purchase Agreement.
2.01. The Series 2020 Bonds. Pursuant to the authority and approvals recited above, it
is hereby determined that it is in the best interests of the City to offer for sale up to $6,500,000 in
principal amount of its Tax Increment Urban Renewal Revenue Bonds (Bozeman Midtown Urban
Renewal District), Series 2020 (the “Series 2020 Bonds”), to (i) pay all or a portion of the costs of
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the Project, (ii) fund a deposit to a reserve account or pay the premium of a surety bond to be
credited to a reserve account, if necessary or desirable, and (iii) pay costs associated with the sale
and issuance of the Series 2020 Bonds.
2.02. Parameters and Terms of Sale. Pursuant to Montana Code Annotated, Section 7-
15-4322, this Commission hereby determines that it is in the best interests of the City to sell the
Series 2020 Bonds through a private, negotiated sale. Stifel, Nicolaus & Company, Incorporated,
of Denver, Colorado (the “Underwriter”), will serve as underwriter of the Series 2020 Bonds.
The Series 2020 Bonds shall be sold on terms and at a purchase price within the following
limitations:
(a) Underwriter’s discount shall not exceed 0.75% of the principal amount of
the Series 2020 Bonds, exclusive of original issue premium or discount;
(b) The aggregate principal amount of the Series 2020 Bonds shall not exceed
$6,500,000;
(c) The true interest cost of the Series 2020 Bonds shall not exceed 5.50% per
annum; and
(d) The final maturity of the Series 2020 Bonds shall not be later than 25 years
after the date of issuance of the Series 2020 Bonds.
All costs of issuing the Series 2020 Bonds (including, without limitation, underwriter’s
discount, fees and expenses of underwriter’s counsel and bond counsel, fees of the paying agent
and registrar, rating agency fees and related costs, bond insurance fees (if any), Preliminary and
final Official Statement costs, Depository Trust Company fees, CUSIP costs, costs of printing the
Series 2020 Bonds, and miscellaneous expenses, if any) shall be paid by the City from proceeds
of the Series 2020 Bonds.
The Mayor, City Manager or Interim City Manager (the “City Manager”), City Finance
Director and Assistant City Manager are hereby authorized and directed to approve the principal
amounts, purchase price, maturity dates, interest rates and redemption provisions of the Series
2020 Bonds and conditions pertaining to the purchase and sale of the Series 2020 Bonds, subject
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to the limitations contained in this Section 2.02. Upon approving such terms, the Mayor, City
Manager, City Finance Director and Assistant City Manager are hereby authorized and directed to
approve, execute and deliver a bond purchase agreement (the “Bond Purchase Agreement”),
containing the agreement of the City to sell, and the agreement of the Underwriter to purchase, the
Series 2020 Bonds on the terms so approved, and containing such other provisions as such officers
shall deem necessary or appropriate. In the event of the absence or disability of any of the Mayor,
City Manager, City Finance Director or Assistant City Manager, another member or members of
this Commission shall make such approvals and execute and deliver the Bond Purchase
Agreement. The execution and delivery by not less than two appropriate officers of the City of
the Bond Purchase Agreement shall be conclusive as to the approval of such officers of the terms
of the Series 2020 Bonds and the agreement of the City to sell the Series 2020 Bonds on such
terms in accordance with the provisions thereof.
The form and details of the Series 2020 Bonds and the security therefor shall be prescribed
by a subsequent resolution to be adopted by this Commission.
Section 3
Preliminary Official Statement.
The Mayor, the City Manager, the City Finance Director, the Assistant City Manager, and
other officers of the City, in cooperation with the Underwriter, are hereby authorized and directed
to prepare a Preliminary Official Statement to be distributed to potential purchasers of the Series
2020 Bonds. The Preliminary Official Statement shall contain such information as shall be
advisable and necessary to accurately describe the City and the security for and terms and
conditions of the Series 2020 Bonds. Each of the Mayor, the City Manager, the City Finance
Director and the Assistant City Manager (or in the event of the absence or disability of any of the
Mayor, the City Manager, the City Finance Director or the Assistant City Manager, another
member of this Commission) is hereby authorized and directed on behalf of the City to approve
the Preliminary Official Statement, and to deem it final as of its date in accordance with paragraph
(b)(1) of Rule 15c2-12 (the “Rule”), promulgated by the Securities and Exchange Commission
under the Securities and Exchange Act of 1934, and to authorize the Underwriter to distribute the
Preliminary Official Statement.
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Section 4
Continuing Disclosure.
To permit the Underwriter and other participating underwriters in the primary offering of
the Series 2020 Bonds to comply with paragraph (b)(5) of the Rule, the City will covenant and
agree, for the benefit of the registered holders and beneficial owners from time to time of the
outstanding Series 2020 Bonds, to provide annual reports of specified information and notice of
the occurrence of certain events.
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 20th day of April, 2020.
___________________________________
CHRIS MEHL Mayor
ATTEST:
___________________________________ Tanya Andreasen Acting City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN City Attorney
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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
Resolution No. ________, entitled: “RESOLUTION RELATING TO UP TO $6,500,000 TAX
INCREMENT URBAN RENEWAL REVENUE BONDS (BOZEMAN MIDTOWN URBAN
RENEWAL DISTRICT), SERIES 2020; AUTHORIZING THE ISSUANCE AND
PRIVATE NEGOTIATED SALE THEREOF” (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 April 20, 2020, 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 Commissioners voted in favor thereof:
; voted against
the same: ; abstained from voting
thereon: ; or were absent: .
WITNESS my hand officially this 20th day of April, 2020.
MICHAEL MAAS City Clerk
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