#092 10-06-81 Issue Tax Increment Bonds14
p Resolution #92
October 6, 1981
Member Johnson introduced and read the following resolution and moved its
adoption:
RESOLUTION RELATING TO $560,000 GENERAL OBLIGATION TAX INCREMENT BONDS;
AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota,
as follows:
Section 1. Authorization and Findings.
1.01. Pursuant to the provisions of Minnesota Statutes, Section 273.77 and
Chapter 475, the Council hereby authorizes the issuance and sale of General
Obligation Tax Increment Bonds of the City, in the principal amount of $560,000,
of which $10,000 in principal amount represents interest pursuant to Minnesota
Statutes, Section 475.56 (the Bonds), for the purpose of providing funds for the
payment of public redevelopment costs in connection with 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. The tax increment financing district (the District) includes
the land described above, and as more fully described in the tax increment
financing plan. It is anticipated that the tax increment revenue generated from
the Project Area will be segregated and pledged for the payment of and principal
interest on the Bonds under an agreement to the entered into between the Housing
and Redevelopment Authority in and for the City of Golden Valley and the City,
pursuant to Minnesota Statues, Section 273.77(a).
Section 2. Sale of Bonds. This Council shall meet at the time and place
specified in the form of notice hereinafter prescribed to receive, open and
consider sealed bids and award the sale of the Bonds. The Council hereby rati-
fies, confirms and affirms the action of the City Finance Director -Clerk shall
cause notice of the time, place and purpose of the meeting to be published once
not less than ten days before the date of the meeting in the Golden Valley Post,
the official newspaper of the City, and in Commerical West, which notice shall
be in substantially the following form:
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Resolution #92 - Continued
NOTICE OF SALE
$560,000 General Obligation Tax Increment Bonds
City of Golden Valley, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids
of the City of Golden Valley, Minnesota will
City Finance Director -Clerk in the City Hall,
7:30 o'clock PM, November 17, 1981, at which
tabulated, and the City Council will meet to
be dated December 1, 1981, and will mature on
and amounts:
Year Amount
October 6, 1981 14 9
for the purchase of the above Bonds
be received at the office of the
in Golden Valley, Minnesota, until
time the bids will be opened,
consider the bids. The Bonds will
February 1 in the following years
Year Amount
1984
$25,000
1990
$45,000
1985
25,000
1991
50,000
1986
30,000
1992
55,000
1987
35,000
1993
65,000
1988
40,000
1994
70,000
1989
40,000
1995
80,000
Bonds maturing in the years 1991 to 1995 are each subject to redemption and
prepayment, at the option of the City and in inverse order of serial numbers, on
February 1, 1990 or on any interest payment date thereafter at a price equal to
their principal amount and accrued interest. Interest will be payable on
February 1, 1982 and semiannually thereafter. No rate of interest nor the net
effective average rate of the issue may exceed 12% per annum. An opinion as to
validity of the issue and tax exempt nature of the interest thereon will be
furnished by Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis,
Minnesota. Copies of a statement of Terms and Conditions of Sale and additional
information may be obtained from the undersigned or from Evensen-Dodge, Inc.,
1900 Midwest Plaza Building, Minneapolis, Minnesota 55402; telephone (612)
338-3535, financial consultants to the City.
BY ORDER OF THE CITY COUNCIL
John F. Murhpy
City Finance Director -Clerk
Golden Valley, Minnesota
Section 3. Terms and Conditions of Sale. The following shall constitute
the terms and conditions for the sale and issuance of the Bonds, and the City
Finance Director -Clerk and the financial consultants to the City are hereby
authorized and directed to cause the following terms and conditions to be
incorporated in material distributed to prospective bidders for the Bonds:
TERMS AND CONDITIONS OF SALE
$560,000 GENERAL OBLIGATION TAX INCREMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
Sealed bids for the purchase of $560,000 General Obligation Tax Increment
Bonds (the Bonds) of the City of Golden Valley, Minnesota, will be received at
the office of the City Finance Director -Clerk in the City Hall until 7:30 o'clock
PM, C.D.T., Tuesday, November 17, 1981, at which time the bids will be opened,
tabulated and the City Council will consider the bids.
150 Resolution #92 - Continued October 6, 1981
DATE AND PURPOSE
The Bonds are to be dated as of December 1, 1981, and are issued pursuant
to Minnesota Statutes, Section 273.77 and Chapter 475, to finance the public
redevelopment costs of a redevelopment project within the City to be undertaken
by the Housing and Redevelopment Authority in and for the City.
DENOMINATION, MATURITIES AND REDEMPTION
The Bonds will be numbered serially, will be in the denomination of $5,000
each, unless designated otherwise by the purchaser within 48 hours of award of
sale and will mature serially on February 1 in the following years and amounts:
Year
Amount
Year
Amount
1984
$25,000
1990
$45,000
1985
25,000
1991
50,000
1986
30,000
1992
55,000
1987
35,000
1993
65,000
1988
40,000
1994
70,000
1989
40,000
1995
80,000
Bonds maturing in the years 1984 to 1990 are payable on their stated maturity
dates without option of prior payment, but Bonds maturing in the years 1991 to
1995 are each subject to redemption and prepayment, at the option of the City
and in inverse order of serial numbers, on February 1, 1990 or on any interest
payment date thereafter at a price equal to their principal amount and accrued
interest.
INTEREST PAYMENT DATES, RATES
Interest on the Bonds will be payable semiannually on each February 1 and
August 1, commencing February 1, 1982. Bonds maturing on the same date must
bear interest at a single uniform rate from their date until their stated
maturity, expressed as a integral multiple of 5/100 of 1%, not exceeding 12% per
annum, and represented by a single set of coupons.
PAYING AGENT
Principal and interest will be made payable at a suitable bank in the
United States designated by the successful bidder within 48 hours after award of
sale, subject to approval by the City Council. The Council will select the
paying agent if it does not approve the designation of the purchaser. The City
will pay reasonable and customary charges of the paying agent.
CUSIP NUMBERS
The City wil 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 numbers to be assigned and printed at the expense of the
respective purchaser, if the purchser waives any delay in delivery occasioned
thereby.
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Resolution #92 - Continued
DELIVERY
October 6, 1981 1.5 1
Within 40 days after award of sale, the City will furnish and deliver at
the office of the purchaser or at his option, will deposit with a bank in the
United States selected by the purchaser and approved by the City to permit
examination by and to deliver to the purchaser, the printed and executed Bonds,
the opinion of bond counsel and customary closing papers, including a no -litigation
certificate. The charge of the delivery agent must be paid by the purchaser,
but all other costs, with the exception of printing of CUSIP numbers as indicated,
will be paid by the City. Payment for the Bonds must be made in funds immediately
available to the City on the date of delivery.
LEGAL OPINION
A legal opinion on the validity of the Bonds and the tax-exempt nature of
the interest thereon will be furnished by 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 enforceable in
accordance with their terms, except to the extent enforceability may be limited
by State of Minnesota or United States, laws relating to bankruptcy, reorganization,
moratorium or creditors' rights generally.
CONSIDERATION OF BIDS
Sealed bids for the Bonds for not less than $550,000 and accrued interest
on the principal sum of $560,000 must be mailed or delivered to the undersigned
and must be received prior to the time set forth above. Each bid must be
unconditional (except that each bid will be deemed to be conditioned on receipt
of the legal opinion referred to above) and must be accompanied by a cashier's
check or a certified check or bank draft in the amount of $11,200, payable to
the City Finance Director -Clerk, to be retained by the City as liquidated
damages if the bid is accepted and the bidder fails to comply therewith. The
good faith check of the successful bidder will be deposited at the time of award
and deducted from the purchase price at the time of delivery. The bid offering
the lowest net interest cost, determined by the addition of any discount to and
the deduction of any premium from the total interest on all Bonds from their
date to their stated maturity, will be deemed the most favorable for the issue.
In the event two or more bids state the lowest net interest cost, the sale of
the Bonds will be awarded by lot. The net effective rate of the issue may not
exceed 12% per annum. The City reserves the right to reject any and all bids,
to waive informalities and to adjourn the sale.
Information for bidders and bidding forms will be distributed by Evensen-
Dodge, Inc., 1900 Midwest Plaza Building, Minneapolis, Minnesota 55402; telephone
(612) 338-3535, financial consultants to the City.
Dated: October 6, 1981.
BY ORDER OF THE CITY COUNCIL
John F. Murphy
City Finance Director -Clerk
Golden Valley, Minnesota
152 Resolution #92 - Continued October 6, 1981
Section 4. Official Statement. The City Manager, 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 statement of Terms and Conditions of Sale set forth in Section 3
hereof and such other information as shall be deemed advisable and necessary to
describe adequately the City and the security, terms and conditions of the Bonds.
Such official statement shall be examined and approved by the City Manager prior
to its distribution to potential purchasers.
Ros ary Thors , Mayor
G
ATTEST:
ohn u y, City erk
The motion for the adoption of the foregoing resolution was seconded by Member
Stockman and upon a 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 City
Clerk.
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