HomeMy Public PortalAboutResolution 2019-39, Holding Of Public Hearing & Approving Proceedings For Issuance & Sale Of Revenue Bonds Or Notes (Wellspire Project) In Aggregate Principal Amount Not To Exceed $10,000,000 RESOLUTION NO. 2019-39
RESOLUTION RELATING TO THE HOLDING OF A PUBLIC HEARING AND
APPROVING PROCEEDINGS FOR THE ISSUANCE AND SALE OF
REVENUE BONDS OR NOTES (WELLSPIRE PROJECT)IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000
WHEREAS,the City of Riverdale, State of Iowa(the"Issuer"), is a municipal corporation
and political subdivision of the State of Iowa authorized and empowered by the provisions of
Chapter 419 of the Code of Iowa, as amended (the "Act"), to issue revenue bonds or notes for a
project located within, or within eight miles of, the Issuer for the purpose of financing the cost of
acquiring, by construction or purchase, land, buildings, improvements and equipment, or any
interest therein, suitable for the use of any facility for an organization described in Section
501(c)(3) of the Internal Revenue Code (the "Code") which is exempt from federal income tax
under Section 501(a) of the Code (a"Tax Exempt Organization") and to refund any bonds issued
pursuant to the Act; and
WHEREAS, the Issuer has been requested by WellSpire, LLC or an affiliate thereof(the
"Borrower"), a Tax Exempt Organization, to issue revenue bonds or notes, in one or more series,
in an aggregate principal amount not to exceed$10,000,000 (the"Bonds")pursuant to the Act for
the purpose of providing funds to the Borrower(a)to finance a portion of the costs of constructing,
equipping and furnishing facilities of a senior living campus consisting of approximately 100
independent living apartments, 32 assisted living suites and a 40 bed nursing facility to be located
at the intersection of 53rd Avenue and Middle Road, Bettendorf, Iowa and (b) to pay costs of
issuance of the Bonds; and
WHEREAS, it is proposed to finance the foregoing through the issuance of the Bonds and
to loan the proceeds from the sale of the Bonds to the Borrower under one or more loan agreements
(the "Loan Agreement") between the Issuer and the Borrower, the obligations of which will be
sufficient to pay the principal of,premium, if any, and interest on the Bonds as and when the same
shall be due and payable; and
WHEREAS, the Bonds, if and when issued, shall be limited obligations of the Issuer, and
shall not constitute nor give rise to a pecuniary liability of the Issuer or a charge against its general
credit or taxing powers, and the principal of and interest and premium, if any, on the Bonds shall
be payable solely out of the revenues derived from the aforementioned Loan Agreement; and
WHEREAS, notice of intention to issue the Bonds has, as directed by the City Council of
the Issuer, been duly given in compliance with the Act and Section 147(f) of the Internal Revenue
Code, and a public hearing has been held on the proposal to issue the Bonds at the time and place
as specified in said notice and all objections or other comments relating to the issuance of the
Bonds have been heard;
NOW, THEREFORE, Be It Resolved by the City Council of the City of Riverdale, Iowa,
as follows:
CITY OF RIVERDALE, IOWA RESOLUTION NO. 2019-39
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Riverdale/WellSpire,Hrg Only
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Section 1. It is hereby determined it is necessary and advisable that the Issuer proceed
with the issuance of the Bonds, as authorized and permitted by the Act, and loan the proceeds of
the sale of the Bonds to the Borrower, all upon terms and conditions mutually satisfactory to the
Issuer and the Borrower. The Council shall proceed with the necessary proceedings relating to the
issuance of the Bonds as soon as the required documentation has been prepared by Bond Counsel.
Section 2. At the public hearing conducted by the Council, pursuant to published
notice, all persons who appeared were given an opportunity to express their views for or against
the proposal to issue the Bonds.
Section 3. The Bonds, if issued, and the interest and premium, if any, thereon, will be
payable solely out of the revenues derived from the Loan Agreement, and shall never constitute
an indebtedness of the Issuer within the meaning of any state constitutional provision or statutory
limitation and shall not constitute nor give rise to a pecuniary liability of said Issuer or a charge
against its general credit or taxing powers. All costs and expenses incident to the issuance and
sale of the Bonds, including, but not limited to, accounting, legal, and Bond Counsel and Issuer's
Counsel fees, Issuer's fee, printing fees and filing fees, shall be paid from Bond proceeds or
directly by the Borrower.
Section 4. The sale of the Bonds pursuant to one or more purchase agreements (the
"Purchase Agreement") is approved and the Mayor and the City Clerk are hereby authorized to
execute and deliver the Purchase Agreement on behalf of the Issuer in a form approved by counsel
to the Issuer, Bond Counsel and the Borrower.
Section 5. All resolutions and orders or parts thereof, in conflict herewith are, to the
extent of such conflict, hereby repealed, and this resolution shall be in full force and effect
immediately upon its adoption.
Passed and approved October 8, 2019. , ...:.ac..&
Michael Bawden, Mayor
Attest:
77' e e.�` ', �
M Lees Blevins, City Clerk
CITY OF RIVERDALE, IOWA RESOLUTION NO. 2019-39
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