MIDA Cormont Public Infrastructure District Public Hearing and Notice of Bonds to be Issued

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 March 4, 2025, the Board of Trustees (the “Board”) of MIDA Cormont Public Infrastructure District (the “Issuer”) adopted a resolution (the “Resolution”) in which it authorizes the issuance of the Issuer’s Limited Tax General Obligation Bonds, Series 2025A-1 (the “2025A-1 Senior Bonds”), its Limited Tax General Obligation Convertible Capital Appreciation Bonds, Series 2025A-2 (the “2025A-2 Senior Bonds,” and together with the 2025A-1 Senior Bonds, the “2025A Senior Bonds”), and its Subordinate Limited Tax General Obligation Bonds, Series 2025B (the “2025B Subordinate Bonds” and collectively with the 2025A Senior Bonds, the “Bonds”) (to be issued in one or more series, under one or more indentures and with such other series or title designation(s) as may be determined by the Issuer) and hold a public hearing as described herein.

PURPOSE, TIME, PLACE AND LOCATION OF PUBLIC HEARING

The Issuer shall hold a public hearing on April 3, 2025 at the hour of 2:00 p.m. via electronic means.  The purpose of the hearing is to receive input from the public with respect to (a) the issuance of the Bonds and (b) any potential economic impact that the Project to be financed with the proceeds of the Bonds may have on the private sector. All members of the public are invited to attend and participate using the following web address: https://us06web.zoom.us/webinar/register/WN_a0AvVNaOQw6XB1-bAa03sg.

PURPOSE FOR ISSUING THE BONDS

The Bonds will be issued for the purpose of (a) financing all or a portion of the cost of public infrastructure as permitted under the Local District Act, Title 17B and the Military Installation Development Authority Act (“MIDA Act”), Title 63H, Chapter 1 (b) funding capitalized interest (with respect to the 2025A-1 Senior Bonds), (c) funding a reserve fund (with respect to the 2025A Senior Bonds), and (d) paying costs of issuance of the Bonds.

BOND CONSENT

On or before March 4, 2025, 100% of the surface property owners within the boundaries of the Issuer consented to the issuance of not to exceed $160,000,000 of limited tax bonds (the “Bond Consent”) for the purpose of paying all or a portion of the cost of public infrastructure as described above, and on such date there were no registered voters within the boundaries of the Issuer.  The Bond Consent provides that for any capital appreciation debt issued by the Issuer, the par amount of such debt at issuance (and not the value at conversion) would count against the limitation thereof.

REVENUES TO BE PLEDGED

The Bonds are limited tax general obligations of the Issuer payable from all or any portion of ad valorem property taxes of the Issuer, subject to a maximum rate of 0.020 per dollar of taxable value, payments in lieu of taxes, if any, and any permitted revenues under the MIDA Act (collectively, the “Pledged Revenues”).

PARAMETERS OF THE BONDS

The Issuer intends to issue the Bonds in the aggregate original principal amount of not more than One Hundred Sixty Million Dollars ($160,000,000) and upon conversion of the 2025A-2 Senior Bonds of not to exceed One Hundred Eighty-Five Million Dollars ($185,000,000). The Bonds shall mature in not more than forty (40) years from their date or dates, be sold at a price not less than ninety-six percent (96%) of the total principal amount thereof (except for capital appreciation bonds which shall just be limited to the maximum par amount as described herein), and bear interest at a rate or rates not to exceed ten percent (10.00%) per annum.  The Bonds are to be issued and sold by the Issuer pursuant to the Resolution, including as part of said Resolution, an Indenture of Trust (Senior) and an Indenture of Trust (Subordinate) (collectively, the “Indentures”).

OUTSTANDING BONDS SECURED BY REVENUES

Other than the proposed Bonds, the Issuer currently has $-0- principal amount of bonds outstanding secured by the Pledged Revenues.

TOTAL ESTIMATED COST OF BONDS

Based on the Issuer’s current plan of finance and a current estimate of interest rates, the total principal and interest cost is estimated at approximately $113,622,500 for the 2025A-1 Senior Bonds, approximately $210,271,300 for the 2025A-2 Senior Bonds and approximately $101,595,417 for the 2025B Subordinate Bonds.

A copy of the Resolution and the Indentures are on file at 15 W. South Temple, Suite 1400, Salt Lake City, Utah, where they may be examined during regular business hours from 9:00 a.m. to 4:00 p.m. for a period of at least thirty (30) days from and after the date of posting of this notice and are also available at https://midaut.org/. For office access, please call 801-364-5080 or email rtracy@gilmorebell.com.

NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the posting 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 Bond Consent, the Indentures (but only as it relates to the Bonds), or the Bonds, or any provision made for the security and payment of the 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 March 4, 2025.

LINKS TO DOCUMENTS

Parameters Resolution – MIDA Cormont PID Series 2025A-1, Series 2025A-2, and Series 2025B Bonds

Senior Indenture – MIDA Cormont PID Series 2025A-1 and 2025A-2 Bonds

Subordinate Indenture – MIDA Cormont PID Series 2025B Bonds

AGENDA

1. Welcome.
2. Consideration of March 4, 2025 meeting minutes.
3. Public hearing for Limited Tax General Obligation Bonds Series 2025A, Limited Tax General Obligation Convertible Capital Appreciation Bonds Series 2025A-2, and Subordinate Limited Tax General Obligation Bonds Series 2025B.
4. Executive Director Update and Board Member Comments
5. Adjourn.