NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the “Act”), that on May 17, 2022, the City Council (the “Council”) of the City of Draper, Utah (the “Issuer”), adopted a resolution (the “Resolution”) in which it authorized the issuance of the Issuer’s Sales Tax Revenue Bonds, Series 2022 (the “Series 2022 Bonds”) (to be issued in one or more series and with such other series or title designation(s) as may be determined by the Issuer).
PURPOSE, TIME, AND LOCATION OF PUBLIC HEARING
The Issuer shall hold a public hearing on June 7, 2022, at the hour of 7:00 p.m., at 1020 E. Pioneer Road, Draper, Utah. The purpose of the hearing is to receive input from the public with respect to (a) the issuance of the Series 2022 Bonds and (b) any potential economic impact that the Project to be financed with the proceeds of the Series 2022 Bonds may have on the private sector. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING THE SERIES 2022 BONDS
The Series 2022 Bonds will be issued for the purpose of (i) financing the acquisition of land (collectively, the “Project”), (ii) funding a debt service reserve fund, if necessary, and (iii) paying costs of issuance of the Series 2022 Bonds.
PARAMETERS OF THE SERIES 2022 BONDS
The Issuer intends to issue the Series 2022 Bonds in the aggregate principal amount of not more than Seven Million Five Hundred Thousand Dollars ($7,500,000), to mature in not more than twenty-one (21) years from their date or dates, to be sold at a price not less than ninety-five percent (95%) of the total principal amount thereof, and bearing interest at a rate or rates not to exceed five percent (5.0%) per annum. The Series 2022 Bonds are to be issued and sold by the Issuer pursuant to the Resolution and a General Indenture of Trust, as supplemented by a Supplemental Indenture of Trust (collectively, the “Indenture”) which was before the Council at the time of the adoption of the Resolution and said Indenture shall contain such terms and provisions as shall be approved by the Issuer at the time of adoption of a final bond resolution.
PLEDGED REVENUES
The Issuer proposes to pledge 100% of the Local Sales and Use Tax received by the Issuer pursuant to Title 59, Chapter 12, Part 2, Utah Code Annotated 1953, as amended (the “Sales and Use Tax”) to the payment of the Series 2022 Bonds.
OUTSTANDING BONDS SECURED BY SALES AND USE TAXES
The Issuer has $11,440,000 of bonds currently outstanding that are secured by the Sales and Use Tax.
OTHER OUTSTANDING BONDS OF THE ISSUER
Additional information regarding the Issuer’s outstanding bonds may be found in the Issuer’s financial report (the “Financial Report”) at: https://reporting.auditor.utah.gov/searchreports/s/. For additional information, including any information more recent than as of the date of the Financial Report, please contact Bob Wylie, Finance Director at (801) 576-6500.
TOTAL ESTIMATED COST
Based on the Issuer’s current plan of finance and a current estimate of interest rates, the total principal and interest cost of the Series 2022 Bonds if held until maturity is $8,053,637.
A copy of the Resolution and the Indenture are on file in the office of the Draper City Recorder, at 1020 E. Pioneer Road, Draper, Utah, where they may be examined during regular business hours of the City Recorder from 8:00 a.m. to 5:00 p.m. Monday through Friday, for a period of at least thirty (30) days from and after the last date of publication of this notice.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the last date of the publication of this notice is provided by law during which any person in interest shall have the right to contest the legality of the Resolution, the Indenture (only as it relates to the Series 2022 Bonds) or the Series 2022 Bonds, or any provision made for the security and payment of the Series 2022 Bonds, and that after such time, no one shall have any cause to contest the regularity, formality or legality of the Resolution, the Indenture or the Series 2022 Bonds for any reason.
DATED this May 17, 2022.
/s/ Laura Oscarson
City Recorder