NOTICE OF INTENT TO ENTER INTO INTERLOCAL AGREEMENT AND NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on September 15, 2015, the City Council (the “City Council”) of the City of Draper, Utah (the “City”) adopted a resolution (the “Resolution”) declaring its intent to enter into an Interlocal Sales Tax Pledge and Loan Agreement (the “Interlocal Agreement”) between the City and the Redevelopment Agency of the City of Draper, Utah (the “Agency”) whereby the City may grant or contribute funds to the Agency to assist in the refinance of certain outstanding obligations of the Agency, which refinance is to be accomplished through the Agency’s issuance of its Tax Increment and Sales Tax Revenue Bonds, Series 2015 (with such additional or other designation(s) as the Agency may determine) (the “Series 2015 Bonds”) issued pursuant to the Limited Purpose Local Government Entities—Community Development and Renewal Agencies Act, Title 176, Utah Code Annotated 9143, as amended, (the “Redevelopment Act”), the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the “Municipal Bond Act”), the Interlocal Cooperation Act (the “Interlocal Cooperation Act”) and other provisions of state law. Pursuant to an Interlocal Sales Tax Pledge and Loan Agreement (the “Interlocal Agreement”), by and between the City and the Agency, the City intends to pledge certain sales tax revenues (the “Sales Taxes”) to assist the Agency in connection with the issuance by the Agency of the Series 2015 Bonds and to call a public hearing to receive input from the public with respect to the use of the sales taxes in connection with the issuance of the Series 2015 Bonds.
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The City shall hold a public hearing on October 20, 2015, at the hour of 7:00 p.m. The location of the public hearing is at the City’s office at 1020 East Pioneer Road, Draper City, Utah. The purpose of the hearing is to receive input from the public with respect to the City’s pledge of the Sales Taxes in connection with the Agency’s issuance of the Series 2015 Bonds. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING SERIES 2015 BONDS
The Agency intends to issue the Series 2015 Bonds for the purpose of (i) refinancing certain development agreements with certain private property owners, (Boyer, Arbor and Kohl’s) (the “Project”) for savings, (ii) fund a debt service reserve fund, if necessary, and (iii) paying issuance expenses to be incurred in connection with the issuance and sale of the Series 2015 Bonds.
PARAMETERS OF THE SERIES 2015 BONDS
The Agency intends to issue the Series 2015 Bonds in the principal amount of not to exceed 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, plus accrued interest to the date of delivery.
SALES TAXES PROPOSED TO BE PLEDGED
The City proposes to pledge all or a portion of the Local Sales and Use Tax and City Option Sales and Use Tax revenues received by the City pursuant to Title 59, Chapter 12, Part 2, Utah Code Annotated 1953, as amended (the “Sales Tax Revenues”), pledged to the Agency for repayment of the Series 2015 Bonds pursuant the Interlocal Agreement.
The Series 2015 Bonds constitute special limited obligations of the Agency and are secured by a pledge of certain tax increment revenues and the Sales Taxes received from the City. Pursuant to the Interlocal Agreement expected to be entered into between the Agency and the City, the City will pledge the Sales Taxes to the Agency to assist in repaying the Series 2015 Bonds to the extent that the tax increment revenues pledged therefore are not sufficient.
Copies of the Interlocal Agreement are on file in the office of the City Recorder, 1020 East 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. for a period of at least thirty (30) days from and after the last date and 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 (i) any person in interest shall have the right to contest the legality of the Interlocal Agreement, or any provision made thereunder 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, and (ii) registered voters within the City of Draper, Utah may sign a written petition requesting an election to authorize the issuance of the Series 2015 Bonds. If written petitions which have been signed by at least 20% of the registered voters of the City of Draper, Utah, are filed with the City during said 30-day period, the City shall be required to hold an election to obtain voter authorization prior to entering into the Interlocal Agreement. If fewer than 20% of the registered voters of the City of Draper, Utah, file a written petition during said 30-day period, the City may proceed to enter into the Interlocal Agreement without an election.
DATED this September 15, 2015.
By: /s/Rachelle Conner