#194 04-15-80 Issue Redevelopment BondsMember Johnson introduced and read the following resolution and moved its adoption,
approving the form of the bonds:
RESOLUTION RELATING TO $1,825,000
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 $1,825,000 (including $30,000 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 redevelopment 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 the West, and
Kelly Drive /Glenwood Avenue/Pennsylvania Avenue North on
the East, all in Golden Valley, Minnesota,
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 develop-
ment of the City 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, 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 ten (10) days before the
date of the meeting in the official newspaper of the -City, in
Finance and Commerce and in Commercial West, both published at
Minneapolis, Minnesota, which notice shall be in substantially
the following form:
NOTICE OF BOND SALE
$1,825,000
GENERAL OBLIGATION REDEVELOPMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
BIDS FOR THESE BONDS WILL BE RECEIVED on Monday,
May 5, 1980, until 2:30 o'clock P.M., C.D.T., at the City
Hall, Golden Valley, Minnesota. Bids will be considered by
the City Council at 7:30 o'clock P.M., C.D.T., on the same
date. Dated June 1, 1980, the bonds will mature on February
1 in the years and amounts as follows:
Year Amount Year Amount
1984 $ 30,000 1992 $115,000
1985 40,000 1993 125,000
1986 50,000 1994 135,000
1987 65,000 1995 150,000
1988 70,000 1996 170,000
1989 85,000 1997 180,000
1990 100,000 1998 195,000
1991 105,000 1999 210,000
Neither the net interest cost nor any rate of interest may
exceed the maximum rate permitted by Minnesota law on the
date of delivery. 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 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
John F. Murphy
Finance Director -Clerk
Golden Valley, Minnesota
L
Section 3. Terms and Conditions.
The following shall constitute the terms and conditions
for the sale and issuance of the Bonds, and the financial con-
sultants 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:
1
I I
TERMS AND CONDITIONS OF SALE
$1,825,000
GENERAL OBLIGATION REDEVELOPMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
Sealed bids for the purchase of $1,825,000 general
obligation Redevelopment Bonds of the City of Golden Valley,
Minnesota, will be received until 2:30 o'clock P.M., C.D.T.,
Monday, May 5, 1980, at the City Hall, Golden Valley,-,--
Minnesota,
alley,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.D.T., on 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,
Section 273.77 and Chapter 475.
DATE, TYPE, DENOMINATION AND MATURITIES
The Bonds will be dated as of June 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 i -n the following years and amounts:
Year Amount Year Amount
1984 $ 30,000 1992 $115,000
1985 40,000 1993 125,000
1986 50,000 1994 135,000
1987 65,000 1995 150,000
1988 70,000 1996 170,000
1989 85,000 1997 180,000
1990 100,000 1998 195,000
1991 105,000 1999 210,000
REDEMPTION FEATURE
Bonds maturing in 1991 and later years are subject to
redemption and prepayment at the option of the City, in inverse
order of serial numbers on February 1, 1990, and any interest
payment date thereafter at a price equal to the principal amount
thereof, plus accrued interest.
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 the maximum rate permitted by
Minnesota law on the date of delivery of the Bonds. (As of
the date hereof, the maximum interest rate permitted by
applicable laws is 7%; various bills pending in the Minnesota
Legislature would, if enacted, increase or eliminate the
maximum rate.) Interest on the Bonds will be payable on
February 1, 1981, and semiannually thereafter on February 1
and August 1 in each year.
DELIVERY
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 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 bond counsel, and a certi-
ficate stating thatno 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 under-
signed 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 $36,500, 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 $1,825,000 bid) will be deemed the most favorable.
No oral bid and no bid of less than $1,795,000 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
John F. Murphy
Finance Director -Clerk
1
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 informa-
tion 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.
PASSED AND ADOPTED THIS 15TH DAY OF APRIL, 1980.
/s/Rosemary Thorsen
Mayor
Attest: /s/John Murphy
Finance Director -Clerk
The motion for the adoption
of the foregoing resolution was seconded by Member
Mitchell
and upon vote being
taken thereon, the following 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.
V
1