CITY COMMISSION ROOM
PIERRE, SOUTH DAKOTA
June 8, 2010
The City of Pierre regular session on June 8, 2010 at 5:30 PM with Commissioners Goodman, Harding, Huizenga, Mehlhaff, and Mayor Gill present for roll call. Gordon Koch, Toby Morris, Jim Protexter, and Dwayne Donaldson signed the guest register.
The Pledge of Allegiance was recited.
The agenda was approved as amended. Claims were added to the consent calendar.
Commissioner Goodman moved and Commissioner Mehlhaff seconded to approve the consent calendar which consisted of 1) Minutes of the Regular June 1, 2010 meeting; 2) New Hire Seasonal Street – Landon Starks $8.25 and Cameron Stutesman $8.25; 3) New Hire IT Intern – Andrew Olson $10.00; 4) Raffle Request – Pierre Area Chamber & Pierre Boys and Girls Club; 5) Monthly Financial Summary; 6) Claims. Unanimous approval.
DEPARTMENT OF REVENUE MALT BEVERAGE RENEWALS $5,700.00
DEPARTMENT OF REVENUE MALT BEVERAGE LICENSE PIER 347 $150.00
Sharon Pruess, City Planner, presented a summary of the ongoing process for considering the Tax Incremental Financing related to the proposed Clubhouse Inn & Suites to be constructed at 806 and 808 W Sioux Ave. Sharon explained that based on the current tax basis, the property taxes from this location is $42,000. The projected taxes after the new construction is completed is $176,000, creating $134,000 in positive tax increment that will be passed on to the purchaser of the bonds. Construction is set to begin in August 2010 and be completed in September 2011. Sharon explained that they are seeking approval of Resolution #2433 that approves the project plan for the TIF District #6. Toby Morris provided a brief overview of the financing process thus far. He explained that tonight they are presenting a resolution that will establish the parameters for the TIF. This will identify the maximum of the TIF is $1,500,000, the term will not exceed 18 years, and the interest rate will not exceed 6%. Mayor Gill asked if anyone was present from the public to comment. Lois Reis, from the Pierre Area Chamber of Commerce and Convention and Visitor’s Bureau, commented that the proposed TIF plan that includes the meeting space and additional hotel space, would be a great benefit to the Pierre Community. She indicated that the overflow that will be created by holding conferences here will benefit other hotels in the area and also the restaurants and local businesses. She stated that the Chamber and CVB are in support of the proposed project. Being no one else present to comment, Mayor Gill brought the discussion back to the Commission. Commissioner Harding moved and Commissioner Huizenga seconded to approve Resolution #2434. Unanimous approval. Commissioner Huizenga moved and Commissioner Goodman seconded to approve Resolution #2433 approving the project plan for TID #6.
RESOLUTION NO. 2434
RESOLUTION GIVING APPROVAL TO THE ISSUANCE AND SALE OF TAX INCREMENTAL REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $1,500,000 TO FINANCE LAND AND PUBLIC IMPROVEMENTS, AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Pierre as follows:
1. Declaration of Necessity. The City of Pierre (the "City") finds and declares a necessity to issue tax increment revenue bonds in connection with Tax Increment District Number Six (6) and use the proceeds therewith to pay for public improvements (the "Project") which Project has been approved and copies of the tax incremental plan is on file with the Finance Officer open to public inspection.
2. Authority. The City is authorized to issue its tax increment revenue bonds to finance project costs pursuant to Section 11-9-33 of the South Dakota Codified Laws. Pursuant to Chapter 11-9 of the South Dakota Codified Laws (the "Act") the City proposes to issue municipal tax incremental revenue bonds (as herein authorized, the Tax Incremental Revenue Bonds, or the "Bonds") to finance a portion of the Project costs. The City is authorized by the Tax Incremental Act to pledge a special fund into which the City will deposit the tax increment (as defined by the Act).
3. Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the state of South Dakota does pledge to and agree with the holders of any obligations issued under 11-9 that the state will not alter the rights vested in the bond holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.
4. Authorization to issue the Bonds. The City does hereby authorize the issuance of the tax increment revenue bonds in an amount not to exceed $1,500,000 (the “Bonds”) in one or more series upon such terms and in such amounts as are negotiated with the purchaser of the Bonds.
5. Developer Agreement. The City of Pierre (the "City") finds and declares a necessity and convenient to enter into a developer agreement with regard to Tax Increment District Number Six.
5.1. Authority. The City is authorized to enter into contracts or agreements determined by the governing body to be necessary or convenient to implement the provisions and effectuate the purposes of the Project Plan.
6. Authorization of other documents. The officers of the City are authorized and directed to enter into such documents, contracts or conveyances, including but not limited to a developer agreement, purchase agreement and quit claim deed, as may be necessary and required with regard to Tax Increment District Number Two and the Project Plan.
7. Negotiation and Sale of the Bonds. It is hereby determined to be necessary and in the best interests of the City and its inhabitants that this City Commission authorize, issue and sell the Bonds. The Finance Officer shall send out a request for proposal to any financial entity interested in making a proposal. The Mayor and Finance Officer are authorized to negotiate the sale and terms of the Bonds subject to the limitations of the law and this resolution.
8. No Election Required. The Bonds may be issued by the City without an election pursuant to SDCL 11-9-34.
9. Form of Bonds. The Bonds shall be prepared in substantially the form as filed with the Finance Officer and open to public inspection.
9.1. Terms of Bonds. The City Commission hereby authorizes the issuance of the Bonds. The principal amount of the Bonds shall not exceed any statutory or constitutional debt limitation and be in such amounts as will be retired with the tax increment revenues. The Bonds shall have maturities and interest rates as negotiated by the Mayor and Finance Officer. The Bonds shall be prepared under the direction of the Finance Officer and shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor and the Finance Officer and countersigned by the facsimile or manual signature of an attorney actually residing in the State of South Dakota and duly licensed to practice therein.
10. Registration. The City hereby appoints its Finance Officer as paying agent, registrar and transfer agent (the "Registrar") for the Bonds. The City reserves the right to appoint a financial institution as Registrar upon thirty (30) days’ notice. The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows:
10.1.1. Register. The Registrar shall keep at its office a register (the "Register") in which the Registrar shall provide for the registration of ownership of the Bonds and the registration of transfers and exchanges of the Bonds entitled to be registered, transferred or exchanged.
10.1.2. Transfer of Bonds. When a Bond is surrendered for transfer it shall be duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer in form satisfactory to the Registrar; duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner thereof. If the Bond is properly surrendered as provided above, the Registrar shall authenticate and deliver, in the name of the designated transferee, a new Bond of a like aggregate principal amount and maturity. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date.
10.1.3. Exchange of Bonds. Whenever a Bond is surrendered by the registered owner for exchange the Registrar shall authenticate and deliver the new Bond of a like aggregate principal amount and maturity, as required by the registered owner or the owner's attorney in writing.
10.1.4. Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City.
10.1.5. Improper or Unauthorized Transfer. When any Bond is presented the Registrar may refuse to transfer the same until satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfer which, in their judgment, are deemed improper or unauthorized.
10.1.6. Persons Deemed Owners. The City, Paying Agent and Registrar may treat the person whose name on any Bond is at any time registered in the Register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.
10.1.7. Taxes, Fees and Charges. For every transfer or exchange of Bond, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange.
10.1.8. Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory that such Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to the Registrar, in which the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by him and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost certificate has already matured or has been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment.
11. Security Provisions; Funds and Accounts and Other Covenants and Determinations.
11.1. Pledge Tax Increments. Pursuant to the Act, the City shall receive Tax Increments as defined by the Act. All Tax Increments shall be placed in the Tax Incremental Revenue Bond Fund Number Six (6) (the “Bond Fund”). The Bond Fund is irrevocably pledged and appropriated to, and shall be deposited to the Bond Fund. For purposes of this Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or hereafter issued pursuant to this Resolution. The Bond Fund shall be used and applied only in the manner and order hereinafter set forth. The holders of the Outstanding Bonds shall have a lien against the Bond Fund for payment of the principal and interest and may either at law or in equity protect and enforce the lien.
11.2. Bond Fund. The Finance Officer is hereby authorized and directed to establish and shall maintain a special account, the Bond Fund, as a separate and special fund in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Tax Increments, as hereinafter defined, shall be credited, as received, to the Bond Fund. Within the Bond Fund are various separate accounts to be maintained by the City.
11.2.1. Project Account. There is hereby created and established as an account of the Bond Fund, a "Project Account". There shall be credited to the Project Account the proceeds from the sale of the Bonds remaining after payment of the expenses of issuing the Bonds. All moneys credited to the Project Account shall be applied solely to the payment of the costs of the Project. For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing the Project including cost of labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Project, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Project. All sums derived from the investment of moneys in the Project Account shall remain in and become part of such account. Upon completion of the Project and when all costs of the Project have been paid, any balance remaining in the Project Account shall be credited to the Principal and Interest Account hereinafter established.
11.2.2. Principal and Interest Account. There is hereby created and established as an account of the Bond Fund, a "Principal and Interest Account." Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of any accrued interest received from the Purchaser. Periodically, as needed there shall be withdrawn from the Bond Fund Number Six (6) and credited to the Principal and Interest Account an amount which will equal at least the next principal and interest payment. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due.
11.2.3. Subordinate Lien Bonds. After making the above required payments, any remaining Tax Increment shall be used for the payment of the principal of and interest on any additional Tax Incremental revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds.
11.2.4. Deposit and Investment of Funds. The Finance Officer shall cause all moneys pertaining to the Fund to be deposited as received with one or more banks which are duly qualified public depositories under the provisions of Chapter 4-6A, South Dakota Codified Laws, in a deposit account or accounts, which shall be maintained separate and apart from all other accounts of the City, so long as any of the Bonds and the interest thereon shall remain unpaid. Any of such moneys not necessary for immediate use may be deposited with such depository banks in savings or time deposits. No moneys shall at any time be withdrawn from such deposit accounts except for the purposes of the Fund as authorized in this Resolution; except that moneys from time to time on hand in the Fund may at any time, in the discretion of this Council, be invested in securities permitted by the provisions of Section 4-5-6, South Dakota Codified Laws, maturing and bearing interest at the times and in the amounts estimated to be required to provide cash when needed for the purposes of the respective accounts. Income received from the deposit or investment of moneys shall be credited to the account from whose moneys the deposit was made or the investment was purchased, and handled and accounted for in the same manner as other moneys in that account.
11.3. Defeasance. When all the Bonds issued have been discharged as provided in this section, all pledges, covenants, and other rights granted by this resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by providing to the Paying Agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its liability with reference to all Bonds which are called for redemption on any date in accordance with their terms by depositing funds with the Paying Agent on or before that date in accordance with their terms by depositing funds with the Paying Agent on or before that date, in an amount equal to the principal, interest, and premium, if any, which are then due thereon, provided that notice of such redemption has been duly given. The City may also at any time discharge this issue of Bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or United States government obligations which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to provide funds (without an reinvestment) sufficient to pay all principal, interest and premiums, if any, to become due on all Bonds on and before maturity, or, if a Bond has been duly called for redemption, on or before the designated redemption date.
12. Certification of Proceedings. The officers of the City are authorized and directed to prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the City relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officer's books and records or are otherwise known to them. All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the correctness of the facts recited therein and the action stated therein to have been taken. The City does hereby declare its official intent to reimburse the capital expenditures made with respect to the Project with proceeds of the Bonds.
13. Retention of Professionals. The officers of the City are authorized to retain Meierhenry Sargent LLP as bond counsel for the Bonds and Northland Securities, Inc. as Placement Agent and such other professionals as they deem necessary to carry out the intent of this resolution.
ATTEST: ________________________________
Laurie R. Gill, Mayor
_____________________________
Twila Hight, Business Manager/Finance Officer
Resolution No. 2433
RESOLUTION APPROVING THE PROJECT PLAN FOR TAX INCREMENT DISTRICT SIX.
WHEREAS, the City Planning Commission has recommended the approval of the Tax Increment District Number Six Project Plan; and
WHEREAS, the City Commission finds that all requirements have been met in order to approve said Project Plan.
NOW THEREFORE, BE IT RESOLVED by the City COMMISSION
- Approval of Project Plan. The Tax Increment District Number Six Project Plan is hereby approved, a copy of which is on file with the City Finance Officer.
- Findings. All findings made in the tax increment plan are included herein by reference. The plan is feasible and in conformity with the master plan of the City.
- Creation of Tax Incremental Fund. There is hereby created, pursuant to SDCL 11-9-31, a City of Pierre Tax Incremental District Number Six Fund, a segregated asset account of the City. All tax increments collected pursuant to Tax Incremental District Number Six shall be deposited into the Tax Incremental District Number Six Fund. All funds in the Tax Incremental District Number Six Fund shall be used solely for those purposes expressly stated and reasonably inferred in SDCL Chapter 11-9.
- Effective 20 days after publication. This resolution shall become effective 20 days after publication and absent any challenge at law all findings and conclusions in the tax increment plan for Tax Increment District Number Six shall be final.
Dated this 8th Day of June 2010.
CITY OF PIERRE, SOUTH DAKOTA
BY:_________________________________
Laurie R. Gill, Mayor
ATTEST:
__________________________
Twila Hight, Business Manager/Finance Officer
This being the time and place set for a public hearing for the application for the Annual Malt Beverage License Renewals for the 2010-2011 year, Mayor Gill opened the meeting. Captain Dave Panzer commented that the Police Department has reviewed the list of license holders and does not have any issues or concerns with the business requesting renewal and recommended approval. Being no one else to comment, Mayor Gill closed the public portion of the hearing. Commissioner Huizenga moved and Commissioner Mehlhaff seconded to approve the Annual Malt Beverage License Renewals as presented and on file. Unanimous approval.
Tom Farnsworth, Park & Recreation Director, presented information on the upcoming Community Clean Up scheduled for Saturday June 12th. The event will begin at Steamboat Park and over 50 volunteers will be set out in groups to pick up litter and debris in the following areas: Pierre Street – upper, lower, City parking lots, and related alleys; Sioux Avenue from Garfield to Bridges and East to Golf Course; South of Sully Street on the City snow and dirt stockpile site; YMCA and Library; Airport Road; Beachfront LaFramboise to Down’s Marina; Steamboat Park. The event is part of the Mayor’s Go Clean and Green Campaign designed to help clean up our community and keep it looking clean. The event will be held in conjunction with the National Get Outdoor Day. The Get Outdoor Day was created to promote healthy living and address childhood obesity, diabetes, and getting kids away from the TV. The events begin at 9:00 with the last event at 2:00.
Commissioner Harding moved and Commissioner Huizenga seconded to adjourn. 6:25pm Unanimous approval.
______________________
Twila Hight
Business Manager
Published once at the total approximate cost of _________.