#82-059 06-15-82 Issue Public Sale Tax Increment BondsResolution 82-59 June 15, 1982 331
Member Johnson introduced and read the following resolution and moved its
adoption:
RESOLUTION RELATING TO $360,000 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. The Golden Valley Housing and Redevelopment Authority (the Authority)
has prepared a tax increment financing plan for 8.5 acres of undeveloped land
southeast of the intersection of Medicine Lake Road with County Road 18 in
northwestern Golden Valley. The properties are designated as the Medley Park
Tax Increment Finance District (the District) and consist of premises in the
State of Minnesota, County of Hennepin, described as follows:
Galant Patio Townhouses 1st Addition Outlots A, B, C, D, E, F and G; and
that part of the south 151 05/100 feet of the north 656 05/100 feet of the west
26 2/3 rods of the northwest 1/4 of the northwest 1/4 of Section 30, Township
118, Range 21, lying south of the service road; and
the south 20 3/10 rods of the north 60 rods of the west 26 2/3 rods of the northwest
1/4 of the northwest 1/4 of Section 30, Township 118, Range 21, excluding the road.
After appropriate proceedings conducted pursuant to Minnesota Statutes, Sections
462.515 and 462.521 under the Housing and Redevelopment Act and Section 273.74
of the Tax Increment Financing Act; Minnesota Stautes, Section 273.71 through
273.78, this Council by resolution adopted March 16, 1982, approved the tax
increment financing plan of the Authority. This Council has approved the Medley
Park Tax Increment Financing Plan (the Plan). The Plan calls for the acquisition
of all properties within the District, site preparation work, installation of
site improvements and transfer of District properties to a developer for
construction of a quality housing project approved in accordance with City
ordinance (the Project).
1.02. The cost of the Project is estimated to be as follows:
Purchase of Land $208,000
Improvements, Other City Expenses 67,000
Capitalized Interest 63,000
Cost of Issuance 15,000
Discount 7,000
1.03. 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 $360,000,
of which $7,000 in principal amount represents interest pursuant to Minnesota
Statutes, Section 475.56 (the Bonds), for the purpose of providing funds for the
payment of costs of the Project. It is anticipated that the tax increment revenue
generated from the District will be segregated and pledged for the payment of
principal and interest on the Bonds under an agreement to be entered into between
the Authority and the City, pursuant to Minnesota Statutes Section 273.77(a).
332 Resolution 82-59 - Continued June 15, 1982
Section 2. Sale of Bonds. This Council shall meet at the time and place
specified in theorinotice hereinafter prescribed to receive, open and
consider sealed bids and award the sale of the Bonds. 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 Commercial West,
which notice shall be in substantially the following form:
NOTICE OF SALE
$360,000 General Obligation Tax Increment Bonds
City of Golden Valley, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above Bonds
of the City of Golden Valley, Minnesota will be received at the office of the
City Finance Director -Clerk in the City Hall, in Golden Valley, Minnesota until
2:00 o'clock PM, July 6, 1982, at which time the bids will be opened and tabulated.
The City Council will meet at the City Hall at 6:30 o'clock PM that same date to
consider the bids and award the sale of the Bonds. The Bonds will be dated July
1, 1982, and will mature on February 1 in the following years and amounts:
Year
Amount
Year
Amount
1985
$15,000
1992
$30,000
1986
15,000
1993
30,000
1987
15,000
1994
35,000
1988
20,000
1995
40,000
1989
20,000
1996
45,000
1990
20,000
1997
50,000
1991
25,000
Bonds maturing in the years 1993 through 1997 are each subject to redemption and
prepayment, at the option of the City and in inverse order of serial numbers, on
February 1, 1992 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, 1983 and semiannually thereafter. No rate of interest nor the net
effective average rate of the issue may exceed the maximum rate to be determined
in accordance with Minnesota Statutes, Section 475.55, Subdivision 4, for the
month of July, 1982. An opinion as to validity of the issue and tax exempt
nature of the interest thereon will be furnished by Dorsey & Whitney, 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 West Building, Minneapolis, Minnesota
55402; telephone (612) 338-3535, financial consultants to the City.
BY ORDER OF THE CITY COUNCIL
John F. Murphy
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:
Resolution 82-59 - Continued June 15, 1982
TERMS AND CONDITIONS OF SALE
$360,000 GENERAL OBLIGATION TAX INCREMENT BONDS
CITY OF GOLDEN VALLEY, MINNESOTA
Sealed bids for the purchase of $360,000 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 2:00
o'clock PM, Tuesday, July 6, 1982, at which time the bids will be opened and
tabulated. The City Council will meet at the City Hall in the City at 6:30
o'clock PM the same day to consider the bids and award the sale of the Bonds.
DATE AND PURPOSE
The Bonds are to be dated as of July 1, 1982, 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
Bonds maturing in the years 1985 through 1992 are payable on their stated maturity
dates without option of prior payment, but bonds maturing in the years 1993 through
1997 are each subject to redemption and prepayment, at the option of the City and
in inverse order of serial numbers, on February 1, 1982 or on any interest payment
date thereafter at a price equal to their principal amount and accrued interest.
INTEREST PAYMENT DATES, RATES
333
Interest on the Bonds will be payable semiannually on February 1 and August 1
in each year, commencing February 1, 1983. All Bonds of the same maturity must
bear interest at a single uniform rate from date of issue to maturity, not exceeding
the maximum rate to be determined in accordance with Minnesota Statutes, Section
475.55, Subdivision 4, for the month of July, 1982, expressed as an integral
multiple of 5/100 of 1% per annum, represented by a single set of coupons. The
difference between the highest and lowest rate specified may not exceed 3%.
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.
1985
$15,000
1992
$30,000
1986
1987
15,000
15,000
1993
1994
30,000
35,000
1988
20,000
1995
40,000
1989
20,000
1996
45,000
1990
20,000
1997
50,000
1991
25,000
Bonds maturing in the years 1985 through 1992 are payable on their stated maturity
dates without option of prior payment, but bonds maturing in the years 1993 through
1997 are each subject to redemption and prepayment, at the option of the City and
in inverse order of serial numbers, on February 1, 1982 or on any interest payment
date thereafter at a price equal to their principal amount and accrued interest.
INTEREST PAYMENT DATES, RATES
333
Interest on the Bonds will be payable semiannually on February 1 and August 1
in each year, commencing February 1, 1983. All Bonds of the same maturity must
bear interest at a single uniform rate from date of issue to maturity, not exceeding
the maximum rate to be determined in accordance with Minnesota Statutes, Section
475.55, Subdivision 4, for the month of July, 1982, expressed as an integral
multiple of 5/100 of 1% per annum, represented by a single set of coupons. The
difference between the highest and lowest rate specified may not exceed 3%.
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.
7 2 A Resolution 82-59 - Continued
CUSIP NUMBERS
June 15, 1982
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 numbers to be assigned and printed at the expense of the respective
purchaser, if the purchaser waives any delay in delivery occasioned thereby.
DELIVERY
Within 40 days after award of sale and without cost to the purchaser, the
City will furnish and deliver anywhere in the continental United States, 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 City reasonably expects to make such delivery by
July 29, 1982. All 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 of the Bonds, in funds available to the City on the date of delivery.
LEGAL OPINION
An opinion as to the validity of the Bonds and the exemption of the Bonds
and the interest thereon will be furnished by Dorsey & Whitney, 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 enforeability 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 $353,000 and accrued interest
on the principal sum of $360,000 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 $7,200, 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 the
maximum interest rate to be determined in accordance with Minnesota Statutes, Section
475.55, Subdivision 4, for the month of July, 1982. The City reserves the right
to reject any and all bids, to waive informalities and to adjourn the sale. No
bid may be altered or withdrawn after the time specified above for opening of bids.
Information for bidders and bidding forms will be distributed by Evensen-
Dodge, Inc., 1900 Midwest Plaza West Building, Minneapolis, Minnesota 55402;
telephone (612) 338-3535, financial consultants to the City.
Dated: June 15, 1982.
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Resolution 82-59 - Continued
June 15, 1982
BY ORDER OF THE CITY COUNCIL
John F. Murphy
City Finance Director -Clerk
Golden Valley, Minnesota
Section 4. Official Statement. The City Manager, in cooperation with
Evensen-Dodge, Inc., inancia 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.
osem ry o ayor
ATTEST:
Jon urp , C t VMr�
The motion for the adoption of the foregoing resolution was seconded by Member
Mitchell 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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