HomeMy WebLinkAbout2016-01-18-Resolutions 16-023_Bonds - Golf Course Revenue Refunding CLN Series 2016 - Accept Purchase ProposalRESOLUTION 16-023
RESOLUTION DIRECTING THE ACCEPTANCE OF A
PROPOSAL TO PURCHASE $572,339 GOLF COURSE
REVENUE REFUNDING CAPITAL LOAN NOTES,SERIES
2016
WHEREAS,the City of Waukee,sometimes hereinafter referred to as the City,is a
municipal corporation duly incorporated,organized and existing under and by virtue of the
Constitution and laws of the State of Iowa;and
WHEREAS,it is deemed necessary that the City should enter into a Loan Agreement and
borrow the amount of $572,339 as authorized by Sections 384.24A and 384.83,Code of Iowa as
amended;and
WHEREAS,a proposal has been received from Charter Bank of Waukee,Iowa;and
WHEREAS,it is the intention of this City Council to enter into a Loan Agreement in
accordance with said proposal dated January 8,2016.
NOW THEREFORE,BE IT RESOLVED,BY THE CITY COUNCIL OF THE CITY
OF WAUKEE,STATE OF IOWA:
Section 1.That this City Council does hereby accept the attached proposal of Charter
Bank of Waukee,Iowa,and takes additional action to permit the entering into of a Loan
Agreement.
Section 2.The Mayor and City Clerk are authorized and directed to proceed on behalf of
the City to enter into such Loan Agreement,to negotiate the final terms of a Loan Agreement to
take all action necessary to permit the entering into of a Loan Agreement on a basis favorable to
the City and acceptable to the Purchaser,and to proceed to meet the conditions of this accepted
proposal.
PASSED AND APPROVED this 18'day of January,2016.
ayor
ATTEST
City Clerk
(Attach Copy of Terms of Proposal)
ROLL CALL VOTE
Shane Blanchard
Brian Harrison
Shelly Hughes
Larry R.Lyon
Rick Peterson
AYE
X
X
X
X
NAY ABSENT ABSTAIN
X
Janiinrv S,20161
Citv ot Waukee
Mr.Tim Moerma;I,Cib Mana er
230 V
'Hickman Road
Waukec.IA 50263
Dc.r Mir.Moerman:
Thank you for your con;inued bankin relationship with Charter Bank.As you know.we modified the GO
and Revenue notes on thc golf course in 2015 to eztcnd both notes for 2 years and reduce d)c interest rates
by 0.25%.At the time of modification.the anticipation for both notes were to revisit the continued tax
cscmpt status in 2016 based on the amount of bank qualitied debt issued by the Ciry.Based on our
undcrstandin that we can rztend the loans out I'or a lon cr period oi'time and keep the tan ezempt status.
wc ayee to reduce the interest rates down lumber Io thc agreed upon amount &om our mectin in 2015.
1'he general tewns and conditions arc as follows:
TERIVI NOTF ¹I:Rcvcnue Bond
Original Loan Amount:
Current Principal Balance:
Accrued Interest thru 2/19/16:
Maturity Dote:
Current Pavment Schedule:
$925,000.00
$572,339.13
SC,S07.65
June I,2017
Semi-annual installments of $36,937.51 due on June I"and
Deccmbm I"beginnin 12/I/2013 with final payment ol'all
remaining principal and interest duc on 6/I /2017.Payments
based upon a 10 year arnortization with a 2 year balloon.
Ncw Intel l'St Rlllc
Collaterah
Prepayment Penalty:
Estendcd i)ilaturity Date:
Estended Paynicnt Schmiulc:
3.50%tax.cxcnlpt )site
Rights a ainst the revenue protits generated by Sugar Crack
Golf Course operations and cash resru vc account held at
Clmrter Bank.
None
December I,2020
Semi-annual insmllmems of $35,399.2S due on June I"and
Decmnbcr I"beginning 6/I /2016 with tinal payment of all
rcmainin principal and interest duc on 12!I/2020.Payments
based upon a remaining 9.5 yca"mnomization with a 5 year
balloon.
TFRM NOTF ¹1:General Obligation iNotc
Original Loan Amount:
Current Principlll Balance:
Accrued Interest thru 2/19/16:
IMaturity Date:
Current Payment Schcdulcl
$700.000 00
S279,9S9.64
$1,959.93
Junc I,2017
Semi-annual installments of $33,925.IS duc 011 JUI1c I"and
Dccmnbcr I"bc innin 12/I,'2015 with final payment of all
Ivmaining principal and interest clue on 6/I 2017.Payments
basr:d upon a 5 year aniortization lvith a 2 year balloon.
cj';X.IS 11,I,.igral,r I 0 I;,,i 15,
WI,k'...3:1 15 "61
ij'j)oci-I 'PI'
:-'15:)vi-11:)
Niew Interest Rate:
Collaterak
Prepayment Penalty:
Estendcd ivlaturity Date:
Estcnded Payment Schedule:
2.75%tas-escmpt rare
iNone
N0iic
Junc I,2020
Semi-annual instalhnents oF S33.0$9.55 duc on June I"and
Decembr.r I"be innin 6/I/20 I 6 with final payment of all
remaining principal and interest due on 6/I/2020.Payments
baser!upon a remainin"4.5 year amortization.
Conditions of the Commitmcnt:
Thc Bank slmll have rcccivcd such othim instruments.documents.and opinions as Bank shall reasonably
require to evidence and secure the loan and to comply with the provisions hcrcof and thc requirements of
rc ulatory au:horitics to vvhich the bank is subject.Included in other documents:
1.Coo i oi the Waukcc City Council bleating minutes showing the approvai and acceptance of
said financing terms.
2.Coiporate resolution desi nating who has thc authoritv to si n the promissory notes and/or
note modifications to bind thc City of Waukec.
In order to qualify f'o r tlm tas esmnpt note.Chador Bank requires an opinion icttcr from the
City Attorney statin said loan will qualify as a tasescmpt loan asset for tlm bank in
accordance with the internal revenue service codrn
-I.Subject
touche
receiptandrcvicw ofcopics of the General Obli ation Note and Revenue Notr.
by Charter Bank legal counsel prior to csccut!on.
Thc intent ofthis lcttcr is to communicate the general terms and conditions oFtlhe r financing of'ezisting
notes to thc City ol'Wau!'ee.Additional loan covenants,agreements.and conditions considered to be
standard for a loan to a municipality vvi it bc required as pan oF the final loan documentation and closing.
This summarizes our financin proposal for you.Please Ict mc know oF any questions or comments that
you might have rr ardin this proposal.Once the proposal is acceptable to you.vv.ask that you indicate
by si ning below and rctuniing the ori inal copy of this leuer to us.
Sincerely.~Q m
Greg Grote
Vice Pr sident
Accepted on this l~day of OH&,20I6
)ate/Ol/08/20/6 Charter Sank Page 1
'unding Date:02/19/2016
'irst Payment Date:06/01/2016
Compounding:U.S,Rule Principal:279,989.64
Period:30/360 Initial Interest Rate:0.000'r'o
Pmt Schedule:Semi-Annually Interest Rate:2.750'/o
Pmt Amount:33,089.55
'ayment Payment
lumber Date
Payment
Amount
Interest Principal Outstanding
Amount Reduction Balance
Equity
Built
O6/OlnO16
2 12/01/2016
3 06/01/2017
4 12/01/2017
5 06/01/2018
6 12/01/2018
7 06/01/2019
8 12/01/2019
9 06/01/2020
$33,089.55
$33,089.55
$33,089.55
$33,089.55
$33,089.55
$33,089.55
$33,089.55
$33,089.55
$33,089.55
2,1 60.20
3,424.58
3,0 1 6.69
2,603.1 8
2,1 84.00
1,75 9.04
1,328?5
891.53
448.81
30,929.35
29,664.97
30,072.86
30,486.37
30,905.55
31,330.51
31,761.30
32,198.02
32,640.74
249,060,29
219,395.32
189,322.46
158,836.09
127,930.54
96,600.03
64,838.73
32,640,71
-.03
$30,929.35
$60,594.32
$90,667.18
$121,153.55
$152,059.10
$183,389.61
$215,150.91
$247,348.93
$279,989.67
2020 Totals:
Grand Totals:
297,805.95 17,816.28 279,989.67
297,805.95 17,816.28 279,989.67
'Itis amortizadon scftedule is provided to you for your convenience.The amortlzarlon may inc/ada estlmtuer based upon infonrtadon provided by you.victual terms of
edit offered by us may vary from tltis amortization sdtedule.Tire ountanding balance a/town above will vary from your actual outstanding balance owed to tire Bank
cause af tire timittg ofpayments.
Page 1 of 1
CHARTER BANK
5526 NW 86TH ST
IOHNSTON,IOWA 50131
CITY OF WAUKEE
230 W HICKMAN RD
WAUKEE IA 50263-5004
Loan Payoff Statement
Loan Payoff for:
CITY OF WAUKEE
230 W HICKMAN RD
WAUKEE IA 50263-5004
Loan Number:
Date Quoted:
Payoff Good To:
Method:
4000500863
Ian 08,2016
Feb 19,2016
6/2
Collateral:REFI GENERAL OBLIGATION GOLF COURSE NOTE ¹-441857
Principal:
Interest To Feb 19,2016:
Net Amount Due:
8279,989.64
1 959.93
5281,949.57
Additional Znformation
One Day's Interest:527.22
https://mwranav.fmwrdc.corn/CLC CLC1151/CLC115Laspxo&Action=PAYOFFSTATE...1/g/2016