93-029 - 03-16 Authorize $6,770,000 Tax Increment Refunding Bonds Series 1993BResolution 93-29
March 16, 1993
Member Thompson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$6,770,000 GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 1993B
BE IT RESOLVED by the City Council of the City of Golden Valley,
Minnesota (the City), as follows:
Section 1. Authorization. The City presently has outstanding the
following issue of general obligation bonds issued pursuant to Minnesota
Statutes, Chapter 475:
Title Date of Issue Original Principal Amount
General Obligation Tax Increment
Refunding Bonds, Series 1987A March 1, 1987 $8,910,000
The City presently estimates that it can effect a substantial debt service
savings by refunding on February 1, 1996, the 1997 through 2006 maturities of
said outstanding bonds, which aggregate $6,540,000 in principal amount, in
advance of their maturity in accordance with Minnesota Statutes, Section 475.67.
The City hereby authorizes the issuance and sale of $6,770,000 principal amount
of General Obligation Tax Increment Refunding Bonds, Series 1993B (subject to
increase or decrease as provided in the attached Terms of Proposal) (the Bonds),
the proceeds of which, together with other moneys of the City as required, shall
be used for this purpose.
Section 2. Terms of Proposal. Springsted Incorporated, financial con-
sultant to the City, has presented to this Council a form of Terms of Proposal
for the Bonds, which is attached hereto and hereby approved and shall be placed
on file by the Clerk. Each and all of the provisions of the Terms of Proposal
are hereby adopted as the terms and conditions of the Bonds and of the sale
thereof. Springsted Incorporated, as independent financial advisers, pursuant
to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9) is hereby
authorized to solicit bids for the Bonds on behalf of the City on a negotiated
basis.
Section 3.
at 6:30 o'clock P.M,
of the Bonds, and of
of the City.
ATTEST:
Sale Meeting. This Council shall meet on April 20, 1993,
for the purpose of considering sealed bids for the purchase
taking such action thereon as may be in the best interests
Shirley J. Ne son, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member
Johnson; 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 93-29 - Continued
March 16, 1993
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON RS
BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$6,770,000*
CITY OF GOLDEN VALLEY, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993B
Proposals for the Bonds will be received by the City's Finance Director or his
designee on Tuesday, April 20, 1993, until 11:30 A.M., Central Time, at the
offices 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 6:30 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated May 1, 1993, as the date of original issue, and will
bear interest payable on February 1 and August 1 of each year, commencing
February 1, 1994. Interest will be computed on the basis of a 360 -day year of
twelve 30 -day months. 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 $545,000
1998 $570,000
1999 $595,000
2000 $620,000
2001 $655,000 2004 $755,000
2002 $685,000 2005 $795,000
2003 $715,000 2006 $835,000
* The Issuer reserves the right, after proposals are opened and prior to
award, to increase or reduce the principal amount of the Obligations
offered for sale. Any such increase or reduction will be in a total
amount not to exceed $100,000 and will be made in multiples of $5,000 in
any of the maturities. In the event the principal amount of the
Obligations is increased or reduced, any premium offered or any discount
taken will be increased or reduced by a percentage equal to the percen-
tage by which the principal amount of the Obligations is increased or
reduced.
OPTIONAL REDEMPTION
The City may elect on February 1, 2003, and on any day thereafter, to prepay
Bonds due on or after February 1, 2004. Redemption may be in whole or in part
and if in part, at the option of the City and in such order as the City shall
determine and within a maturity by lot as selected by the registrar. All pre-
payments shall be at a price of par plus accrued interest.
Resolution 93-29 - Continued March 16, 1993
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 income from its Valley Square
Redevelopment District. The proceeds will be used to refund the 1997-2006
maturities of the City's General Obligation Tax Increment Refunding Bonds,
Series 1987A, dated March 1, 1987.
TYPE OF PROPOSALS
Proposals shall be for not less than $6,702,300 and accrued interest on the
total principal amount of the Bonds. Proposals 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 $67,700, payable to the order of the
City. If a check is used, it must accompany each proposal. 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 proposals.
The Financial Surety Bond must identify each underwriter whose Deposit is
guaranteed by such Financial Surety Bond. If the Bonds are awarded to an
underwriter using a Financial Surety Bond, then that purchaser is required to
submit its Deposit to Springsted Incorporated 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 proposal, said amount will be
retained by the City. No proposal can be withdrawn or amended after the time
set for receiving proposals 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%. Rates must be in ascending order. Bonds of the same maturity shall
bear a single rate from the date of the Bonds to the date of maturity. No con-
ditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be deter-
mined on a true interest cost (TIC) basis. The City's computation of the
interest rate of each proposal, in accordance with customary practice, will be
controlling.
The City will reserve the right to: (i) waive non -substantive informalities of
any proposal or of matters relating to the receipt of proposals and award of the
Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal
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.
Resolution 93-29 - Continued March 16, 1993
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 pur-
chaser'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 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 a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide
without cost to the senior managing underwriter of the syndicate to which the
Bonds are awarded 270 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
Underwriter. Any underwriter delivering a proposal with respect to the Bonds
agrees thereby that if its proposal 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 16, 1993
BY ORDER OF THE CITY COUNCIL
/s/ Shirley Nelson
Clerk