Bill 040873

..Title Authorizing the extension of the term of the Center City District pursuant to the provisions of the Municipality Authorities Act until 2025; approving the plan, estimated costs and proposed method of assessment and charges of the Center City District for and concerning business improvements and administrative services to the central business district of the City of Philadelphia for 2005-2009; and approving estimated costs for debt service through 2025; all under certain terms and conditions. ..Body WHEREAS, Under the Municipality Authorities Act ("the Act"), the City authorized, in an ordinance approved on March 28, 1990 (Bill No. 727), the organization of an authority (originally known as the "Special Services District of Central Philadelphia") for the purpose of making business improvements and providing administrative services, as those terms are defined in the Act, to the central business district of the City of Philadelphia; and WHEREAS, Articles of Incorporation were filed with the Secretary of the Commonwealth and the Authority was incorporated on May 4, 1990; and WHEREAS, In accordance with the requirements of the Act, the Authority completed a plan for business improvements and administrative services to be made and provided through the 1995 fiscal year of the Authority to the central business district of the City of Philadelphia, and the Authority held public hearings respecting such plan; and WHEREAS, Legally sufficient written objections were not received from property owners and the City approved the Authority's plan to serve the central business district area (the "District") bounded and described in the ordinance approved on November 2, 1990 (Bill No. 1069), which boundaries were subsequently expanded by the ordinance approved on November 25, 1996 (Bill No. 960631); and WHEREAS, The Articles of Incorporation of the Special Services District of Central Philadelphia were amended on October 30, 1992 to change the name of the Authority to the "Center City District"; and WHEREAS, Under the Act the City authorized, in an ordinance approved on January 6, 1995 (Bill No. 940632), an extension of the term of the Authority from five (5) to twenty-five (25) years by approving an amendment to the Authority's Articles of Incorporation; and WHEREAS, An amendment to the Authority's Articles of Incorporation was filed with the Secretary of the Commonwealth on March 30, 1995, pursuant to which the Authority's term was extended from five (5) to twenty-five (25) years; and WHEREAS, In 1995 the Authority issued bonds (the "1995 Bonds") with a term ending in 2015, the proceeds of which were used to finance capital improvements and maintenance within the District; and WHEREAS, Current market interest rates provide the Authority an opportunity to refinance the 1995 Bonds at a lower interest rate, which would enable the Authority both to reduce the amount of its assessments for 2005 and to enhance the level of services provided to property owners located in the District; and WHEREAS, The Authority has proposed and City Council desires to extend the term of the Authority to December 31, 2025 by filing an amendment to the Authority's Articles of Incorporation to enable the Authority to refinance the 1995 Bonds; and WHEREAS, The Authority has recently completed a plan for fiscal years 2005 through 2009 to continue its services as well as to enhance evening cleaning and provide expanded landscape maintenance services, which will be financed by assessments and charges to be paid by property owners within the District (the "5-Year Operating Plan"); and WHEREAS, The first year of the 5-Year Operating Plan is a plan for the 2005 fiscal year of the Authority; and WHEREAS, The Authority mailed to each property owner in the District "The Plan and Budget for the Center City District", which includes a description of the 5-Year Operating Plan, the proposed method of assessment and charges, and the proposed refinancing of the bonds, all of which are herein collectively referred to as the "Plans"; and WHEREAS, After sending to each property owner and commercial tenant in the District the Plans and the cost to each property owner together with notice of public hearings respecting the Plans and after due advertisement of such public hearings, public hearings have been held by the Authority pursuant to the Act and legally sufficient written objections have not been received either from persons representing the ownership of one-third (1/3) of the properties in the District or from property owners within the District whose property valuation as assessed for taxable purposes amounts to more than one-third (l/3) of the total property valuation of the District; and WHEREAS, The Authority has submitted to City Council for review and approval the Plans, which are attached hereto as Exhibit "B," and City Council has held public hearings respecting the Plans; and WHEREAS, City Council desires to take appropriate action with respect to the Plans; NOW THEREFORE, THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS: SECTION 1. City Council hereby approves the following amendment to the Authority's Articles of Incorporation: That paragraph (e) of the Articles of Incorporation be deleted in its entirety and replaced with the following: (e) The Authority shall exist for a term which shall commence on the date a certificate of incorporation is issued, as required by the provisions of the Act, by the Secretary of the Commonwealth of Pennsylvania and shall terminate on December 31, 2025. SECTION 2. City Council hereby authorizes the Authority to advertise its intention to prepare and file with the Secretary of the Commonwealth, in the manner prescribed by the Municipality Authorities Act (53 Pa. C.S.A. § 5605), articles of amendment in substantially the form set forth in Exhibit "A" attached hereto. SECTION 3. It is hereby declared that the participation of the Authority in projects for and concerning business improvements and administrative services to the central business district area (the "District"), as contemplated in "The Plan and Budget for the Center City District," which includes a description of the Authority's 5-Year Operating Plan and Budget, and the proposed method of assessment and charges, all of which are herein collectively referred to as the "Plans" and are attached as Exhibit "B," is desirable for the entire City of Philadelphia to preserve and improve the economic vitality of the District and to generate jobs for residents of the City. The Plans, having been duly reviewed and considered, are approved. SECTION 4. Estimated costs for debt service in the amount of $1,262,200 for 2005, $1,260,200 for 2006, $1,260,200 for 2007, $1,257,600 for 2008, $1,262,600 for 2009 and estimated costs in the annual amount of $2,525,200 for the years 2010 through 2025, the estimated costs for 2010 through 2025 representing two times the amount of debt service on bonds to be issued to finance the capital improvements set forth in the Plans, pursuant to the method of assessment set forth in the Plans, are approved, pursuant to the Act. Notwithstanding the estimated costs for debt service set forth in the preceding sentence of this Section 4, the Authority is hereby authorized, and may so covenant for the benefit of the holders of its bonds, to fix, levy and collect its assessments in each fiscal year such that the available revenues of the Authority pledged to secure the Authority's bonds, including such assessments, shall never be less than 200% of the debt service requirement for that fiscal year. SECTION 5. The Authority is authorized to take such action as may be necessary to carry out the Plans, including, but not limited to, issuing or refinancing bonds, in conformance with the provisions of the Act, which had been issued to finance CCD capital improvements. City Council authorizes the Authority to proceed with minor changes in substantial conformity with the Plans. EXHIBIT "A" ARTICLES OF AMENDMENT EXHIBIT "B" PLAN AND BUDGET FOR THE CENTER CITY DISTRICT ..End ?? ?? ?? ??