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91-028 - 03-05 Authorize $5,110,000 Tax Increment Refund Bonds Series 1991A• • • Resolution 91-28 March 5, 1991 Member Stockman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $5,110,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A AND CALLING A PUBLIC HEARING 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 oobligation bonds issued pursuant to Minnesota Statutes, Chapter 475: Title Original Principal Date of Issue Amount General Obligation Tax Increment December 1, 1985 $6,700,000 Bonds, Series 1985C The Issuer presently estimates that it can effect a substantial debt service savings by refunding the 1997-2006 maturities of said outstanding bonds, which aggregate $4,995,000 in principal amount, in advance of their maturity in accor- dance with Minnesota Statutes, Section 475.67; and the Issuer hereby authorizes the issuance and sale of $5,110,000 principal amount of general obligation refunding bonds (subject to increase or decrease as provided in the attached Official Terms of Offering), the proceeds of which, together with other moneys of the Issuer as required, shall be used for this purpose, pursuant to Minnesota Statutes, Section 475.52. 2. Terms of Bonds; Sale Meeting. Springsted Incorporated, bond con- sultants 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; Public Hearing. 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 Northwestern Financial Review, a financial periodical published in Minneapolis, both publications to be at least ten days before the date of said meeting. In order to meet the requirements of Section 1313(b) of the Tax Reform Act of 1986, the Council shall hold a public hearing on April 8, 1991 prior to considering bids for the purchase of the bonds and the Clerk is Resolution 91-28 - Continued March 5, 1991 • authorized, in consultation with bond counsel for the City, to prepare and publish notice of hearing, said publication to be made once in the official newspaper at least 14 days prior to the scheduled hearing date. • ATTEST: i rl ey e on, City Clerk- --- 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, Russell, 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 his signature attested by the City Clerk. • • Resolution 91-28 - Continued March 5, 1991 OFFICIAL TERMS OF OFFERING $5,110,000 * CITY OF GOLDEN VALLEY, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A Sealed bids for the Bonds will be received by the City's Finance Director or his designee on Monday, April 8, 1991, until 12:00 Noon, Central Time, at the offi- ces of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time, they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 4:30 P.M, Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated May 1, 1991, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1992. Interest will be computed on 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, 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 to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month, The Bonds will mature February 1 in the years and amounts as follows: 1997 $380,000 2001 $485,000 2004 $585,000 1998 $405,000 2002 $515,000 2005 $625,000 1999 $430,000 2003 $550,000 2006 $675,000 2000 $460,000 * The City reserves the right, after bids are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $75,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. OPTIONAL REDEMPTION The City may elect on Februray 1, 2000, and on any day thereafter, to prepay Bonds due on or after February 1, 2001. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par and accrued interest. Resolution 91-28 - Continued March 5, 1991 • 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 Golden Hills Redevelopment Project Area and Tax increment District. The proceeds will be used to refund in advance of their stated maturities all of the bonds maturing in the years 1997-2006 of the City's General Obligatlon Tax Increment Bonds, Series 1985C. TYPE OF BID Bids shall be for not less than $5,058,900 and accrued interest on the total principal amount of the Bonds. Bids shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $51,100, payable to the order of the City. If a check is used, it must accompany each bid. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incor- porated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M. Central Time on the next business day following the award. If such Deposit is not received by . that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. There is no limit on the interest rate spread if bid in ascending order; however, no rate for any maturity shall be more than 1.5% 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 conditional bid will be accepted. 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, • (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. Resolution 91-28 - Continued March 5, 1991 • REGISTRAR The City wiil 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. 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 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 12:00 Noon, 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 purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing per- tinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement and the Official Bid Form or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda spe- cifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting an Official Bid Form therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 205 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of • distributing copies of the Final Official Statement to each participating Resolution 91-28 - Continued March 5, 1991 • Underwriter. Any underwriter executing and delivering an Official Bid Fora with respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated March 5, 1991 BY ORDER OF THE CITY COUNCIL /s/ Shirley J. Nelson, City Clerk • �J Resolution 91-28 - Continued March 5, 1991 0 NOTICE OF SALE $5,110,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A CITY OF GOLDEN VALLEY, MINNESOTA These Bonds will be offered for sale on sealed bids on Monday, April 8, 1991. Bids will be accepted at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota until 12:00 Noon, Central Time, that day. Consideration for award of the Bonds will be by the City Council at 4:30 P.M., Central Time, of the same day. The Bonds will be dated May 1, 1991, will bear interest payable semiannually commencing February 1, 1992, and will mature on February 1 in the following years and amounts: Year Amount 1997 $380,000 1998 405,000 1999 430,000 2000 460,000 2001 485,000 2002 515,000 2003 550,000 2004 585,000 2005 625,000 • 2006 675,000 Bidders must specify a price of not less than $5,058,900 plus accrued interest. A legal opinion will be furnished by Dorsey & Whitney, of Minneapolis, Minnesota. The proceeds will be used to refund in advance of their stated maturities all of the bonds maturing in the years 1997-2006 of the City's $6,700,000 General Obligation Tax Increment Bonds, Series 1985C, dated December 1, 1985. The principal amount of Bonds actually sold is subject to adjustment, upon the opening of the bids, in accordance with the Official Terms of Offering. Dated March 5, 1991 BY ORDER OF THE CITY COUNCIL /s/ Shirley J. Nelson, City Clerk Further information may be obtained from the Financial Advisor, SPRINGSTED INCORPORATED, 85 East 7th Place, Suite 100, St. Paul, Minnesota 55101, 612/223-3000. •