#141 01-21-80 Issue Redevelopment BondsResolution #141 January 21, 1980
Member Stockman introduced and read the following resolution and moved its adoption:
RESOLUTION RELATING TO $1,500,000
GENERAL OBLIGATION REDEVELOPMENT
BONDS; PROVIDING FOR PUBLIC SALE
THEREOF
BE IT RESOLVED BY the City Council of Golden Valley, Minnesota (hereinafter
the City), as follows:
Section 1. Authority.
Pursuant to the provisions of Minnesota Statutes, Sections 462.581 and
462.585, Section 273.77 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 of $1,500,000 (including $25,000
principal amount of Bonds representing interest pursuant to Minnesota Statutes,
Section 475.56) for the purpose of providing funds for the payment of the public re-
development of a Project Area designated as Valley Square Project Area and described
as follows:
The Valley Square Area, bounded by Minnesota State Highway 55 on
the South, the Chicago and Northwestern Railroad tracks on the
North, Boone Avenue North on theWest, and Kelly Drive/Glenwood
Avenue/Pennsylvania Avenue North on the East, all in Golden Valley,
Minnesota,
in accordance with the 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
theCity and for the development of additional real estate tax base. It is anticipated
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, pu,rsuant
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
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 ten (10) days before the date of the 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:
1
NOTICE OF BOND SALE
$1,500,000
GENERAL OBLIGATION REDEVELOPMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
BIDS FOR THESE BONDS WILL BE RECIEVED on Monday, March 3, 1980,
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 February 1, 1980, the bonds will mature on February 1 in
the years and amounts as follows:
YEAR
AMOUNT
YEAR
AMOUNT
1983
$45,000
1992
$80,000
1984
45,000
1993
85,000
1985
50,000
1994
95,000
1986
55,000
1995
100,000
1987
60,000
1996
105,000
1988
60,000
1997
115,000
1989
65,000
1998
120,000
1990
70,000
1999
130,000
1991
8o,000
2000
140,000
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 & Hallady, of Minneapolis, Minnesota. The procees 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 financial consultants
to the City, Evensen-Dodge, Inc., 1900 Midwest Plaza Building, Minneapolis, Minnesota
55402. (Telephone: 612-338-3535)
BY ORDER OF THE CITY COUNCIL
/s/John F. Murphy
JOHN F. MURPHY
FINANCE DIRECTOR -CLERK
GOLDEN VALLEY, MINNESOTA
1
Resolution #141 (continued)
January 21, 1980
Section 3. Terms and Conditions.
The following shall constitute the terms and conditions for the sale and
issuance of the Bonds, and the financial 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
$1,500,000
GENERAL OBLIGATION REDEVELOPMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
Sealed bids for the purchase of $1,500,000 general obligation Redevelopment
Bonds of the City of Golden Valley, Minnesota will be received until 2:30 o'clock
P.M., C.S.T., Monday, March 3, 1980 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 Council of the City at 7:30 o'clock P.M., C.S.T., on the same date.
PURPOSE
The Bonds will be issued for the purpose of providing funds for the acquis-
ition 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, Section 273.77 and Chapter 475.
DATE, TYPE, DENOMINATION AND MATURITIES
The Bonds will be dated as of February 1, 1980, will be issued as negotiable
investment securities 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
1983
$45,000
1992
$80,000
1984
45,000
1993
85,000
1985
50,000
1994
95,000
1986
55,000
1995
100,000
1987
60,000
1996
105,000
1988
60,000
1997
115,000
1989
65,000
1998
120,000
1990
70,000
1999
130,000
1991
80,000
2000
140,000
REDEMPTION FEATURE
Bonds maturing in 1991 and later years are subject to redemption and pre-
payment at the option of the City, in inverse order of serial numbers on February
1, 1980, and any interest payment date thereafter at a price equal to the principal
amount thereof, plus accrued interest.
Resolution #141 (continued)
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 August 1, 1980, and seimiannually thereafter on Feburary 1 and
August 1 in each year.
DFI I VERY
Within 40 days after the sale, the City will furnish and deliver to the
purchaser or, at the option of the purchaser, will deposit with a bank in the
United States as selected by the purchaser and approved by the City as its agent
to permit examination by and to deliver to the purchaser, the printed and executed
Bonds, the opinion of the 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
will state that the Bonds are valid and binding general obligation bonds to 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 $30,000, 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 it plus
any amount less than $1,500,000 bid) will be deemed the most favorable. No oral
bid and no bid of less than $1,475,000 plus accrued interest will be considered,
and the City reserves the right to reject any and all bids and to waive any in I E
formality in any bid.
Resolution #141 (continued)
CUSIP NUMBERS
The City will assume no obligation for the assignment or printing of CUSIP
numbers on the Bonds or for the correctness of any numbers printed thereon, but
will permit such printing to be done at the expense of the purchaser, if the pur-
chaser waives any extension of time of delivery caused thereby.
Information for bidders and bidding forms will be distributed by Evensen-
Dodge, Inc., 1900 Midwest Plaza Building, Minneapolis, Minnesota 55402.
(Telephone 612-33$-3535)•
BY ORDER OF THE CITY COUNCIL
/s/John Murphy
JOHN MURPHY,
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.
ROSEMARY THORSEN, MAYOR
ATTEST:
JOHN MURP , CITY CLERK
The motion for the adoption of the foregoing resolution was seconded by Member Johnson
and upon vote being taken thereon, the following members voted in favor thereof:
Anderson, Johnson, Mitchell, Stockman and Thorsen and the following voted against
the same: none, whereupon said resolution was declared duly passed and adopted,
signed by the Mayor and her signature attested by the Clerk.