NOTICE TO ELECTORS OF THE CITY OF CHELSEA
OF INTENT TO ISSUE GENERAL OBLIGATION BONDS
PAYABLE FROM TAX INCREMENT REVENUES OF THE
CITY OF CHELSEA DOWNTOWN DEVELOPMENT AUTHORITY
AND OF RIGHT OF REFERENDUM RELATING THERETO
PLEASE TAKE NOTICE that the City Council of the City of Chelsea intends to authorize the issuance and sale of general obligation bonds pursuant to Act 197, Public Acts of Michigan, 1975, as amended, in the principal amount of not to exceed in total One Million Five Hundred Thousand Dollars ($1,500,000), for the purpose of paying part of the cost to acquire, construct, furnish and equip certain infrastructure improvements in the Development Area of the City of Chelsea Downtown Development Authority (the “Authority”), as more fully described in the Authority’s Downtown Development Plan and Tax Increment Financing Plan on file with the City, including the Palmer Lot Project which will improve an existing parking lot by adding a central community gathering space, downtown outdoor covered stage, storage and restroom building and various landscaping and site amenities.
The bonds will mature in annual installments not to exceed twenty (20) in number, with interest rates to be determined at public or private sale but in no event to exceed the maximum permitted by law on the unpaid balance from time to time remaining outstanding on said bonds.
SOURCE OF PAYMENT OF BONDS
THE PRINCIPAL OF AND INTEREST ON SAID GENERAL OBLIGATION BONDS shall be payable primarily from the tax increment revenues derived from the Development Area of the Authority received by the City from the Authority.
IN ADDITION, THE FULL FAITH, CREDIT AND RESOURCES OF THE CITY SHALL BE IRREVOCABLY PLEDGED TO THE PAYMENT OF SAID BONDS, and in case of insufficiency of the tax increment revenue payments for the payment of the principal of and interest on the bonds, the City shall be obligated to pay the same as a first budget obligation from its general funds or from any taxes which it may levy within applicable constitutional, statutory, or charter tax limitations.
RIGHT OF REFERENDUM
THE GENERAL OBLIGATION BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS UNLESS A PETITION REQUESTING AN ELECTION ON THE QUESTION OF ISSUING THE BONDS, SIGNED BY NOT LESS THAN 10% OF THE REGISTERED ELECTORS OF THE CITY, IS FILED WITH THE CITY CLERK WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. If such a petition is filed, the bonds cannot be issued unless approved by the majority vote of the electors of the City voting on the question of their issuance.
THIS NOTICE is given pursuant to the requirements of Section 5(g) of Act 279, Public Acts of Michigan, 1909, as amended.
ADDITIONAL INFORMATION will be furnished at the office of the City Clerk upon request.
Laura Kaiser, City Clerk, City of Chelsea