NOTICE OF BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of the Limited Purpose Local Government Entities Community Development and Renewal Agencies Act, Title 17C, Chapters 1-4, Utah Code Annotated 1953, as amended (the “Redevelopment Act”) and the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the “Bond Act” and collectively with the Redevelopment Act, the “Act”), that on September 15, 2015, the Board of Directors (the “Board”) of the Redevelopment Agency of the City of Draper, Utah (the “Agency”) adopted a resolution (the “Resolution”) authorizing the issuance of the Agency’s Tax Increment and Sales Tax Revenue Bonds, Series 2015 (to be issued in one or more series from time to time and with such other series or title designation as may be determined by the Agency) (the “Series 2015 Bonds”).
PURPOSE FOR ISSUING THE SERIES 2015 BONDS
The Series 2015 Bonds will be issued for the purpose of (a) refinancing certain development agreements with private property owners (Boyer, Arbor and Kohl’s) (the “Project”) for savings, (b) funding a debt service reserve fund, if necessary, and (c) paying costs associated with the issuance of the Series 2015 Bonds.
PARAMETERS OF THE SERIES 2015 BONDS
The Agency intends to issue its Series 2015 Bonds in the aggregate principal amount of not more than Seven Million Dollars ($7,000,000), to mature in not more than twelve (12) years from their date or dates, to be sold at a price not less than ninety-seven percent (97%) of the total principal amount thereof, and to bear interest at a net effective rate of not to exceed five percent (5.0%) per annum. The Series 2015 Bonds are to be issued and sold by the Agency pursuant to the Resolution, including as part of said Resolution, one or more of an Indenture of Trust (the “Indenture”) which was before the Board and attached to the Resolution in substantially final form at the time of the adoption of the Resolution, and said Indenture is to be executed by the Board in such form and with such changes thereto as shall be approved by the Chair or Chair pro tem; provided that the principal amount, interest rate or rates, maturity, and discount from par of the Series 2015 Bonds shall not exceed the maximums set forth above.
OUTSTANDING BONDS SECURED BY REVENUES
Other than the proposed Series 2015 Bonds, the Agency currently has $0 of bonds outstanding secured by the pledged tax increment revenues of the Agency (as more fully described in the Indenture). Furthermore, other than the proposed Series 2015 Bonds, the City currently has $22,950,000 of bonds outstanding secured by the Sales Tax Revenues.
Information regarding all of the Agency’s outstanding bonds may be found in the Agency’s audited financial report (the “Financial Report”) at: http://auditor.utah.gov/audit_reports/financial-reports-of-local-governments/. For additional information, including any more recent than as of the date of the Financial Report please contact Bob Wylie, City Finance Director at (801) 576-6500.
TOTAL ESTIMATED COST
Based on an estimate of the current interest rate and financing plan, the estimated total debt service cost of the Series 2015 Bonds, if held until maturity is $6,429,166.
A copy of the Resolution and the Indenture are on file in the office of the Agency, at 1020 East Pioneer Road, Draper, Utah, where they may be examined during regular business hours of the Agency, Monday through Friday from 8:00 a.m. to 5:00 p.m., for a period of at least thirty (30) days from and after the date of publication of this notice.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the 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, or the Series 2015 Bonds, or any provision made for the security and payment of the Series 2015 Bonds, and that after such time, no one shall have any cause of action to contest the regularity, formality, or legality thereof for any cause whatsoever.
DATED this September 15, 2015.
REDEVELOPMENT AGENCY OF
THE CITY OF DRAPER, UTAH
/s/ Troy Walker
Chair