Loading...
87-004 - 01-06 Authorize $8,910,000 Tax Increment Refunding Bonds Series 1987AResolution 87-4 January 6, 1987 Member Bakken introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $8,910,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1987A BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the Issuer), as follows: 1. Authorization. The Issuer presently has outstanding the following issues of general obligation bonds issued pursuant to Minnesota Statutes, Chapters 273 and 475: Original Outstanding Title Date of Principal Principal Issue Amount Amount G.O. Tax Increment Bonds, Series 1985B 11-26-85 $6,101,871.98 $6,101,871.98 G.O. Tax Increment Bonds, Series 1985 2-01-85 $1,265,000.00 $1,265,000.00 G.O. Redevelopment Bonds of 1983 12-01-83 $780,000.00 $735,000.00 The Issuer presently estimates that it can effect a substantial debt service savings by refunding said outstanding bonds in advance of their maturity in accordance with Minnesota Statutes, Section 475.67; and the Issuer hereby authorizes the issuance and sale of $8,910,000 principal amount of general obligation tax increment refunding bonds, the proceeds of which, together with other moneys of the Issuer, shall be used for this purpose, pursuant to Minnesota Statutes, Section 475.52. 2. Terms of Bonds; Sale Meetin . Springsted Incorporated, bond consultants to the Issuer, have presented to this Council forms of an Official Terms of Offering, and a notice of sale for publication, which are attached hereto, and which are hereby approved and shall be placed on the file by the Clerk. Each and all of the provisions of the Official Terms of Offering are hereby adopted as the terms and conditions of said bonds and of the sale thereof; and this Council shall meet at the time and place specified therein for the purpose of considering sealed bids for the purchase of said bonds. 3. Publication of Notice. The Clerk is authorized and directed to cause the notice of sale to be published once in the official newspaper, which is a legal newspaper having a general circulation within the Issuer, and once in the Commercial West, a financial periodical published in Minneapolis, both publications to be at least ten days before the date of said meeting. 4. Public Approval. Prior to the issuance of the bonds, the Council shall hold a public hearing on their issuance as required by Section 1313(b)(3)(A) of the Tax Reform Act of 1986 and the Clerk is authorized to prepare and publish the required notice. Resolution 87-4 - Continued January 6, 1987 OFFICIAL TERMS OF OFFERING $8,910,000 CITY OF GOLDEN VALLEY, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1987A Sealed bids for the Bonds will be opened by the city on Tuesday, February 3, 1987, at 11:00 AM, Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143. Consideration for award of the Bonds will be by the City Council at 7:30 PM, Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated March 1, 1987, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1988. Interest wi l l 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 the denomination of $5,000 each, or in integral multiples thereof 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 to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February 1 in the amounts and years as follows: $335,000 1991 $360,000 1992 $430,000 $460,000 1995 1996 $550,000 1999 $585,000 2000 $705,000 2003 $380,000 1993 $405,000 1994 $490,000 $520,000 1997 1998 $625,000 2001 $750,000 2004 $800,000 2005 $665,000 2002 $850,000 2006 OPTIONAL REDEMPTION The City may elect on February 1, 1996, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1997. Redemption may be in whole or in part of the Bonds subject to prepayment. 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 revenues from the City's Valley Square Redevelopment Tax Increment District. The proceeds will be used to refund in advance of their stated maturity all of the City's outstanding Tax Increment Bonds of the following series: $1,265,000 Series 1985A, dated February 1, 1985; $6,101,871.98 Series 1985B, dated November 26, 1985 and $780,000 of 1983, dated December 1, 1983. Resolution 87-4 - Continued TYPE OF BID January 6, 1987 A sealed bid for not less than $8,776,350 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 $89,100, payable to the order of 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% lower than any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No bid may be conditioned upon award of any other offering of obligations by the City. 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 par, 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 practice, 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, (i i ) reject all bids without cause, and, (iii) reject any bid 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 regulations. 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. Resolution 87-4 - Continued January 6, 1987 NOTICE OF BOND SALE City of Golden Valley Hennepin County, Minnesota $8,910,000 General Obligation Tax Increment Refunding Bonds, Series 1987A Sealed bids for the purchase of these Bonds will be received at the offices of Springsted, Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota, until 11:00 o'clock A.M., Central Time, Tuesday, February 3, 1987. The Bonds will be dated March 1, 1987, will bear interest payable semiannually commencing February 1, 1988, and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1991 $335,000 1999 $550,000 1992 360,000 2000 585,000 1993 380,000 2001 625,000 1994 405,000 2002 665,000 1995 430,000 2003 705,000 1996 460,000 2004 750,000 1997 490,000 2005 800,000 1998 520,000 2006 850,000 The minimum price which may be bid for the Bonds is $8,776,350. No interest rate, nor the net effective average rate of the issue, may exceed the maximum then permitted by law. A legal opinion on the issue will be furnished by Dorsey & Whitney, of St. Paul and Minneapolis, Minnesota. The proceeds of the Bonds will be used to refund certain outstanding general obligation bonds of the City. Dated: January 6, 1987 BY ORDER OF THE CITY COUNCIL Shirley Nelson, City Clerk Resolution 87-4 - Continued SETTLE HENT January 6, 1987 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 Minneapolis and Saint Paul, 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 PrI, Central Time. Except as compliance with the 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 suffered by the City by reason of the Purchasers'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 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 obtain a 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 January 6, 1987 BY ORDER OF THE CITY COUNCIL /s/Shirley Nelson, City Clerk Resolution 87-4 - Continued ATTEST: Shirley Nelso Ci6y Clerk January 6, 1987 . QZhe-- Ray i Stockman, Mayor Pro Tem The motion for the adoption of the foregoing resolution was seconded by Member Thompson and upon a vote being taken thereon, the following voted in favor thereof: Bakken, Johnson, Stockman and Thompson; and the following was absent: Anderson; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor Pro Tem and his signature attested by the City Clerk.