#022 03-05-79 Provide Sale General Obligation Redevelopment BondsResolution #22 March 5, 1979
Member Johnson introduced and read the written resolution and moved its
adoption:
RESOLUTION RELATING TO $1,925,000
GENERAL OBLIGATION REDEVELOPMENT
BONDS; PROVIDING FOR PUBLIC SALE
THEREOF
BE IT RESOLVED by the City Council of Golden Valley, Minnesota (here-
inafter, the City), as follows:
Section 1. Authority
Pursuant to the provisions of Minnesota Statutes, Sections 462.581 and
462.585, and Chapter 475, the City Council of the City does authorize the issuance
and sale of an issue of general obligation Redevelopment Bonds (hereinafter, the
Bonds) of the City in the principal amount up to $1,925,000 for the purpose of
providing funds for the payment of the public redevelopment of a Project Area
designated as North Wirth Parkway Project Area and described as follows:
Beginning at the intersection of the Easterly line of France Avenue and the
Northerly right-of-way line of Minnesota Highway No. 55, also known as Olson
Memorial Highway; thence Northerly, along said Easterly line of France Avenue,
to the Southerly line of Minneapolis, Northfield, and Southern Railroad
right-of-way; thence Southwesterly or along said Minneapolis, Northfield, and
Southern Railroad right-of-way to the West line of Ardmore Drive North; thence
Northwesterly, along said Southerly line of Chicago Northwestern Railroad
right-of-way, to the intersection with a line that is parallel to and 455.00
feet distant from said West line of Ardmore Drive North; thence Southerly,
along said line, to the Northwesterly line of Railroad right-of-way, thence
Southwesterly, along said Northwesterly line of Railroad right-of-way, to said
Northerly right-of-way line of Minnesota Highway No. 55; thence Easterly,
along said Northerly right-of-way line of Minnesota Highway No. 55, to the
point of beginning.
in accordance with a redevelopment plan of the Housing and Redevelopment Authority
in and for the City of Golden Valley. The Council finds that the assistance of
the City is needed to complete the Project, for the orderly and economic development
of the City and for the development of additional real estate tax base. It
is enticipated that the tax increment resulting from the Project Area will be
segregated and pledged for the payment of the principal and interest on the
Bonds under an agreement with the Housing and Redevelopment Authority in and
for the City of Golden Valley, pursuant to Minnesota Statutes, Section 462.585,
Subdivision 4.
Section 2. Sale, Publication of Notice
This Council shall meet at the time and place set forth in the form of
notice herein prescribed for the purpose of considering bids for the purchase
of the Bonds. The City Finance Director -Clerk is authorized and directed to
cause a public notice of the time, place and purpose of the meeting to be
published once not less than 10 days before the date of meeting in the official
newspaper of the City and in Commercial West, published at Minneapolis, Minnesota,
which notice shall be in substantially the following form:
NOTICE OF BOND SALE
$1,925,000 GENERAL OBLIGATION REDEVELOPMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
BIDS FOR THESE BONDS WILL BE RECEIVED on Monday, April 16, 1979 until
2:30 o;clock P.M., C.S.T., at the City Hall, Golden Valley, Minnesota. Bids
will be considered by the City Council at 7:30 o'clock P.M., C.S.T., on the
same date, Dated May 1, 1979, the bonds will mature on February 1 in the
years and amounts as follows:
Year Amount Year Amount
1982 $10,000 1990 $145,000
1983 10,000 1991 160,000
1984 10,000 1992 175,000
1985 80,000 1993 195,000
1986 90,000 1994 215,000
1987 105,000 1995 235,000
1988 115,000 1996 250,000
1989 130,000
No rate of interest nor the net effective average rate of the issue may exceed
7% per annum. A legal opinion will be requested from Dorsey, Windhorst,
Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. The proceeds will
be used for payment of the public redevelopment costs needed for redevelopment
of a project area within the City. Copies of the detailed Terms: and Conditions
of Sale and additional information may be obtained from the undersigned or
from the bond consultants to the City, Evensen-Dodge, Inc., 1900 Midwest Plaza
Building, Minneapolis, Minnesota 55402. (Telephone: 612-338-3535)
BY ORDER OF THE CITY COUNCIL
J hn Murphy, Director- k
1
Section 3. Terms and Conditions.
The following shall constitute the terms and conditions for the sale
and issuance of the Bonds, and the bond consultants for the City are hereby
authorized and directed to cause the terms and conditions to be incorporated
in material distributed to prospective bidders for the Bonds:
TERMS AND CONDITIONS OF SALE
$1,925,000 GENERAL OBLIGATION REDEVELOPMENT BONDS,
CITY OF GOLDEN VALLEY, MINNESOTA
Sealed bids for the purchase of $1,925,000 general obligation Redevel-
opment Bonds, of the City of Golden Valley, Minnesota, will be received until
2:30 o;clock P.M., C.S.T., Monday, April 16, 1979, at the City Hall, Golden
Valley, Minnesota, at which time the bids will be opened and tabulated. The
bids will be acted upon by the City Counsil of the City at 7:30 o'clock P.M.,
C.S.T.. in the same date.
PURPOSE
The Bonds will be issued for the purpose of providing funds for the
acquisition and betterment of land and facilities needed for a redevelopment
project in the City, pursuant to the provisions of Minnesota Statutes, Sections
462.581 and 462.585 and Chapter 475.
DATE, TYPE, DENOMINATION AND MATURITIES
The Bonds will be dated as of May 1, 1979, will be issued as
negotiatable investment security with attached interest coupons, will be
in the denomination of $5,000 each, unless other denominations are designated
by the successful bidder within 48 hours of the sale, and will mature serially,
on February 1 in the following years and amounts:
Year
Amount
Year
Amount
1982
$10,000
1990
$145,000
1983
10,000
1991
160,000
1984
10,000
1992
175,000
1985
80,000
1993
195,000
1986
90,000
1994
215,000
1987
105,000
1995
235,000
1988
115,000
1996
250,000
1989
130,000
REDEMPTION FEATURE
Bonds maturing in 1992 and later years are subject to redemption and
prepayment at the option of the City, in inverse order of serial numbers on
February 1, 1991, and any interest payment date thereafter at a price equal
to the principal amount thereof, plus accrued interest.
�J
PAYING AGENT
Principal and interest will be made payable at a suitable banking
institution recommended by the successful bidder within 48 hours after award
of sale, subject to approval of the City Council, and the City will pay
the reasonable and customary charges of the paying agent. The City will
select the paying agent if the recommendation is not approved.
RATES, INTEREST PAYMENT DATES
The Bonds maturing in each year will bear interest at a single uniform
rate, not exceeding the rate specified for Bonds of any subsequent maturity,
designated by the successful bidder, expressed as an integral multiple of 5/100
of 1% per annum and represented.by a single set of coupons. No rate of interest
nor the net effective average rate of the issue may exceed 7% per annum.
Interest on the Bonds will be payable on February 1, 1980 and semiannually
thereafter on August 1 and February 1 in each year.
DELIVERY
Within 40 days after the sale, the City will furnish and deliver to
the purchase or, at the option of the purchaser, will deposit with a bank in
the United States selected by the purchase and approved by the City as its
agent to permit examination by and to deliver to the purchase, the printed
and executed Bonds, the opinion of bond counsel, and a certificate stating
that no litigation in any manner questioning their validity is then threatened
or pending. The charge of the delivery agent must be paid by the purchaser,
but all other costs; with the exception of the printing of CUSIP numbers as
indicated, will be paid by the City. The purchase price must be paid upon
delivery, or within five days after deposit with the delivery agent, in funds
available for expenditure by the City on the day of payment.
LEGAL OPINION
An opinion as to the validity of the Bonds and as to the exemption
of the Bonds and interest thereon from taxation will be requested from Dorsey,
Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. The
legal opinion will be printed on the Bonds at the request of the purchaser.
The legal opinion will state that the Bonds are valid and binding general
obligations of the City.
TYPE OF BID AND AWARD
Sealed bids must be mailed or delivered to the undersigned and
must be received prior to the time specified above for opening .bids. Each
bid must be unconditional and must be accompanied by a cashier's or certified
check or bank draft in the amount of $38,500, payable to the City Finance
Director -Clerk, to be retained as liquidated damages if the bid is accepted
and the bidder fails to comply therewith. The bid authorizing the lowest
net interest cost (total interest from date of Bonds to stated maturities,
less any cash premium or plus any amount less than $1,925,000 bid) will
be deemed the most favorable. No oral bid and no bid of less than $1,900,000
plus accrued interest will be considered, and the City reserves the right
to reject any and all bids and to waive any informality in any bid.
CUSIP NUMBERS
The City will assume no obligation for the assignment or printing
of CUSIP numbers on the Bonds or for the correctness of any numbers printed
thereon, but will permit such printing to be done at the expense of the
purchaser, if the purchaser waives any extension of time of delivery caused
thereby.
Information for bidders and bidding forms will be distributed by
Evensen-Dodge, Inc., 1900 Midwest Plaza Building, Minneapolis, Minnesota 55402.
(Telephone 612-338-3535)
BY ORDER OF THE CITY COUNCIL
JohnMur hy, Finance Director -Clerk
Section 4. Official Statement.
The City Finance Director -Clerk, in cooperation with Evensen Dodge,
Inc., Financial Consultants to the City, is hereby authorized and directed
to prepare on behalf of the City an official statement to be distributed to
potential purchasers of the Bonds. Such official statement shall contain
the Terms and Conditions of Sale set forth in Section 3 and such other
information as shall be deemed advisable and necessary to adequately
describe- the City and the security, terms and conditions of the Bonds.
Such official statement shall be examined and approved by the City
Finance Director -Clerk prior to its distribution to potential purchasers.
Mary An - r -son, Mayor Pro -tem
ATTEST:
John Mur y, City Clerk
The motion for the
adoption of
the foregoing resolution was duly seconded by
Member Stockman and
upon vote
being taken thereon, the following members voted
in favor thereof:
Anderson, Johnson,
Stockman and Thorsen and the following
voted against the same:
none,
whereupon said resolution was declared duly
passed and adopted,
signed by
the Mayor Pro -tem and her signature attested
by the City Clerk.