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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 PAGE 1 Riverdale/WellSpire,Hrg Only Error!Unknown document property name. 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 PAGE 2 Riverdale/WellSpire,Hrg Only Error!Unknown document property name.