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84-129 - 12-04 - General Obligation Tax Increment BondsResolution 84-129 December 4, 1984 Member Johnson introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $1,265,000 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 the Valley Square Redevelopment Project Area (the District) in Golden Valley. After appropriate proceedings, this Council by resolution approved the tax increment financing plan of the Authority. The Plan calls for the acquisition of certain properties within the district, payment of relocation expenses and other associated rede- velopment costs and sale of District properties to a developer for construction of improvements in Area "D" of the District (the Project). 1.02. The cost of the Project is estimated to be as follows: Land Acquisition Costs $1,127,000 Relocation Expenses 90,000 Administrative and Legal Costs 40,500 City's Share of Performance Bonds 17,000 Total Project Expenditures $1,274,500 Less: Land Sale Proceeds (394,500) Net Project Costs $ 880,000 Plus: Capitalized Interest (Net of Reinvestment) 24,700 Bond Discount Allowance 25_,300 Net Bond Issue Requirements $1,265,000 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, Series 1985, of the City, in the principal amount of $1,265,000, of which $24,700 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). 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 con- sider sealed bids and award the sale of the Bonds. The City 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: Resolution 84-129 - Continued December 4, 1984 NOTICE OF SALE $1,265,000 General Obligation Tax Increment Bonds, Series 1985 City of Golden Valley, Minnesota NOTICE IS HEREBY GIVEN that sealed bids fc of the City of Golden Valley, Minnesota will be City Clerk in the City Hall, in Golden Valley, noon, January 15, 1985, at which time the bids The City Council will meet at the City Hall at to consider the bids and award the sale of the February 1, 1985, and will mature on February 1 amounts: Year Amount Year r the purchase of the above Bonds received at the office of the Minnesota, until 12:00 o'clock will be opened and tabulated. 6:30 o'clock p.m. that same date Bonds. The Bonds will be dated in the following years and Amount 1990 $25,000 2000 $ 65,000 1991 25,000 2001 70,000 1992 30,000 2002 75,000 1993 35,000 2003 85,000 1994 35,000 2004 95,000 1995 40,000 2005 100,000 1996 45,000 2006 110,000 1997 50,000 2007 125,000 1998 55,000 2008 140,000 1999 60,000 Bonds maturing in the years 1996 through 2008 are each subject to redemption and prepayment, at the option of the City and in inverse order of maturity dates, on February 1, 1995, 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, 1986 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. An opi- nion 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 an Official Terms of Offering and Additional information may be obtained from the undersigned or from Springsted Incorporated, 800 Osborn Building, St. Paul, Minnesota 55102; telephone (612) 222-4241, financial consultants to the City. BY ORDER OF THE CITY COUNCIL Shirley Nels p, City Clerk Golden Valley, Minnesota Section 3. Terms and Conditions of Sale. The following Official Terms of Offering shall constitute the terms and conditions for the sale and issuance of the Bonds, and the City Finance Director and the financial consultants to the City are hereby authorized and directed to cause the following terms and con- ditions to be incorporated in material distributed to prospective bidders for the Bonds: Resolution 84-129 - Continued December 4, 1984 OFFICIAL TERMS OF OFFERING $1,265,000 CITY OF GOLDEN VALLEY, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985 Sealed bids for the Bonds will be opened by the Finance Director on Tuesday, January 15, 1985, at 12:00 Noon, Central Time, at the offices of Springsted Incorporated, 800 Osborn Building, St. Paul, Minnesota, 55102. Consideration for award of the Bonds will be by the City Council at 6:30 PM, Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated February 1, 1985 and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1986. Interest will be computed upon the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in integral multiples of $5,000, as requested by the Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed the last business day prior to the interest payment date to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th of the calendar month next preceding the interest payment. The Bonds will mature February 1 in the amounts and years as follows: $25,000 1990-1991 $50,000 1997 $75,000 2002 $125,000 2007 $30,000 1992 $55,000 1998 $85,000 2003 140,000 2008 $35,000 1993-1994 $60,000 1999 $95,000 2004 $40,000 1995 $65,000 2000 $100,000 2005 $45,000 1996 $70,000 2001 $110,000 2006 The City may elect on February 1, 1995, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1996. Redemption may be in whole or in part of the Bonds subject to prepayrient. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax increment revenue from the City's Valley Square Redevelopment Project. The proceeds will be used to finance public rede- velopment costs within the Valley Square Redevelopment Project area. TYPE OF BID A sealed bid for not less than $1,240,300 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $12,650, payable to the order of Resolution 84-129 - Continued December 4, 1984 the City, shall have been filed with the undersigned or Springsted Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids, unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of 1%. No rate for any maturity shall be more than 1.5% lower than any prior rate. No rate or the net effective rate for the entire Issue of the Bonds shall exceed the maximum rate permitted by law. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than part, to, the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary prac- tice, will be controlling. The city will reserve the right to: (i) waive non -substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bids which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the Registrar which shall be subject to applicable SEC regu- lations. The City will pay for the services of the Registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the Purchaser at a place mutually satisfactory to the City and the Purchaser. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Dorsey & Whitney of St. Paul and Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City, or its designee, not later than 1:00 P.M., Central Time of the day of settlement. Except as compliance with the Resolution 84-129 - Continued December 4, 1984 terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suf- fered by the City by reason of the Purchaser's non-compliance with said terms for payment. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the City, to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. OFFICIAL STATEMENT Underwriters may obtaina copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 15 copies of the Official Statement. Dated December 4, 1984 BY ORDER OF THE CITY COUNCIL /s/ Shirley Nelson, City Clerk Section 4. Official Statement. The City Finance Director and City Manager, in cooperation with Springsted Incorporated, financial consultants to the City, are hereby authroized and directed to prepare on behalf of the City an official statement to be distrubuted to potential purchasers of the Bonds. Such official statement shall contain the Official Terms of Offering set forth in Section 3 hereof and such other information as shall be deemed advisalbe and necessary to describe adequately the City and the security, terms and conditions of the Bonds. Such official statement shall be examned and approved by the City Finance Director and City Manager prior to its distribution to potential purchasers. Mary E. nderson, Mayor ATTEST: ally, Deputyl Ci ty Cl e The motion for the adoption of the foregoing resolution was seconded by Member Bakken and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Bakken, Johnson, Stockman and Thompson; 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 Deputy City Clerk.