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, that on October 16, 2023, the City Council (the 'City Council') of Lindon City, Utah (the 'City'), adopted a resolution (the 'Resolution') in which it authorizes (i) the form of an Interlocal Sales Tax Agreement (the 'Sales Tax Agreement') by and between the City and the Lindon City Redevelopment Agency, Utah (the 'Agency') for the repayment of Agency's Tax Increment and Sales Tax Revenue Bonds, Series 2023 (the 'Bonds'), (ii) the creation of an obligation of the City under the Sales Tax Agreement (the 'City Obligation'), and (iii) holding a public hearing to receive input from the public with respect to (a) the Sales Tax Agreement and in connection therewith the issuance of the City Obligation and (b) any potential economic impact that the Project described herein to be financed with the proceeds of the Bonds (repayment of which is secured by the City Obligation) may have on the private sector.
PURPOSE, TIME, PLACE AND LOCATION OF PUBLIC HEARING
The City shall hold a public hearing on November 20, 2023, at the hour of 5:15 p.m. at 100 North State Street, Lindon, Utah. The purpose of the hearing is to receive input from the public with respect to (a) the Sales Tax Agreement and in connection therewith, the issuance of the City Obligation and (b) any potential economic impact that the Project to be financed with the proceeds of the Bonds (repayment of which is secured by the City Obligation) may have on the private sector. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING THE BONDS
The Bonds (repayment of which is secured by the City Obligation) will be issued by the Agency for the purpose of (a) financing certain costs and improvements, including the purchase of land and all related improvements within the 700 North Community Development Area (the 'CDA Project') as permitted under the Limited Purpose Local Government Entities Community Development and Renewal Agencies Act, Title 17C, Utah Code Annotated 1953, as amended, (b) funding a reserve fund, if necessary, and (c) paying costs of issuance. The City Council of the City has elected to treat the City Obligation as a bond for purposes of Title 11, Chapter 14 of the Utah Code.
PARAMETERS OF THE OBLIGATION
City intends that the aggregate principal amount of the City Obligation shall not exceed $5,000,000. The City Obligation shall mature in not more than twenty (20) years from its date or dates and shall bear interest at a rate or rates of not to exceed six and one-half percent (6.50%) per annum, as shall be approved by the Designated Officer, all within the parameters set forth herein. The Bonds (repayment of which is secured by the City Obligation) shall be sold at a price not less than ninety-seven percent (97%) of the total principal amount thereof. The City Obligation is to be issued pursuant to the Resolution, including as part of said Resolution, the Sales Tax Agreement, a General Indenture of Trust dated as of May 1, 2005, as amended and supplemented, and as further supplemented by a Supplemental Indenture of Trust (collectively, the 'Sales Tax Indenture') which were before the Council at the time of the adoption of the Resolution and said Sales Tax Indenture is to be executed by the City in such form and with such changes thereto as shall be approved by the City; provided that the principal amount, interest rate or rates, maturity, and discount of the Series 2023 Bonds will not exceed the maximums set forth above.
REVENUES TO BE PLEDGED
The City proposes to pledge 100% of the sales and use tax revenues received by the City pursuant to the Local Sales and Use Tax Act, Title 59, Chapter 12, Part 2 of Utah Code Annotated 1953, as amended, to the payment of the City Obligation.
OUTSTANDING BONDS SECURED BY REVENUES
Other than the proposed City Obligation, the City currently has $5,235,000 principal amount of bonds outstanding secured by Revenues.
OTHER OUTSTANDING BONDS OF THE CITY
Information regarding all of the City's outstanding bonds may be found in the City's audited 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 Kristen Colson Aaron, Finance Director (801) 785-5043
TOTAL ESTIMATED COST OF BONDS
Based on the Agency's current plan of finance and a current estimate of interest rates, the total principal and interest cost of the 2023 Bonds is estimated at approximately $7,637,422.50. Due to the nature of the City Obligation under the Sales Tax Agreement, which is being issued by City for repayment of the Bonds, the total principal and interest cost thereof is expected to correspond with the total principal and interest cost of the Bonds described in the foregoing sentence.
A copy of the Resolution, the Indenture, and the Sales Tax Agreement are on file at 100 North State Street, Lindon, Utah, where they may be examined during regular business hours from 9:00 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 first 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 Sales Tax Indenture, the Sales Tax Agreement (but only as it relates to the City Obligation), or the City Obligation, or any provision made for the security and payment of the City Obligation, 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 October 16, 2023.
/s/ Kathy Moosman
Notice of Special Accommodations (ADA)
The City of Lindon, in compliance with the Americans with Disabilities Act, provides accommodations and auxiliary communicative aids and services for all those citizens in need of assistance. Persons requesting these accommodations for City-sponsored public meetings, services programs or events should call Kathy Moosman at 801-785-5043, giving at least 24 hours notice.