00-10 HRA Resolution
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Resolution 00-10
December 12, 2000
Commissioner Anderson introduced the following and moved its adoption:
RESOLUTION AUTHORIZING THE SOLICITATION OF BIDS
FOR THE SALE OF LEASE REVENUE BONDS, SERIES 2001
BE IT RESOLVED by the Commissioners of the Housing and
Redevelopment Authority in and for the City of Golden Valley, Minnesota (the
Authority), as follows:
SECTION 1. PURPOSE. To facilitate redevelopment within the Golden
Hills Redevelopment Project Area, and as authorized by Sections 469.034 and
469.035, and Chapter 475, Minnesota Statutes, the Authority proposes to issue
its revenue bonds to finance, along with certain other available funds of the
Authority, the acquisition of certain real estate within the Project Area and the
construction thereon of an approximately 24,000 square foot community center
and recreational facility (the Project), and to lease the Project to Independent
School District No. 270 (the District) pursuant to and in accordance with a Lease
Agreement between the Authority and the District (the Lease), which Lease has
been heretofore approved by the Board of Commissioners of the Authority
pursuant to Resolution 00-08, adopted November 14, 2000.
SECTION 2. FINANCING. To pay the costs of the Project, the Authority
will offer for sale its Lease Revenue Bonds, Series 2001, in the principal amount
of $3,390,000 (the Bonds), provided that the principal amount of Bonds sold may
be increased or decreased in an amount not to exceed $50,000 in accordance
with the provisions of the Terms of Proposal hereinafter referenced in Section 3
of this resolution. The Bonds will be payable solely from lease payments to be
made by the District pursuant to the Lease and other amounts derived
thereunder, and shall not constitute an indebtedness of the Authority or the City
of Golden Valley.
SECTION 3. TERMS OF PROPOSAL. Springsted Incorporated, financial
consultant to the Authority, has presented to this Board a form of Terms of
Proposal for the Bonds which is attached hereto and hereby approved and shall
be placed on file by the Director. 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. Pursuant to Minnesota Statutes, Section 475.60, Subdivision 2,
paragraph (9), Springsted Incorporated, as an independent financial advisor, is
hereby authorized to solicit proposals for the sale of the Bonds on behalf of the
Authority.
SECTION 4. SALE MEETING. This Board shall meet, at the time and
place specified in the Terms of Proposal, for the purpose of considering
proposals for the sale of the Bonds and of taking such action thereon as may be
deemed to be in the Authority's best interests,_
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Resolution 00-10 (Continued)
December 12, 2000
ATTEST:
Motion for e adoption of the foregoing resolution was seconded by
Commissioner Bakken; and upon a vote taken thereon, the following voted in
favor thereof: Anderson, Bakken, Johnson, LeSuer and Micks; and the following
voted against the same: none; whereupon said resolution was declared duly
passed and adopted, signed by the Chair and her signature attested by the
Director.
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Resolution 00-10 (Continued)
December 12, 2000
THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$3,390,000*
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF GOLDEN VALLEY, MINNESOTA
LEASE REVENUE BONDS, SERIES 2001
(INDEPENDENT SCHOOL DISTRICT 270 LEASE PROJECT)
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, January 9, 2001, until 11 :00 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 Authority Board at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to Springsted.
Signed Proposals, without final price or coupons, may be submitted to. Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. All bidders are advised that each Proposal
shall be deemed to constitute a contract between the bidder and the Authority to purchase the
Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated February 1, 2001, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2001. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2002
2003
2004
2005
2006
$ 45,000
$100,000
$105,000
$110,000
$120,000
$125,000
$130,000
$140,000
$150,000
$155,000
2017
2018
2019
2020
2021
2012 $165,000
2013 $175,000
2014 $185,000
2015 $200,000
2016 $210,000
2007
2008
2009
2010
2011
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$225,000
$240,000
$255,000
$270,000
$285,000
The Authority reselVes the right, after proposals 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 $50,000 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.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds, provided that no serial bond may mature on or after the first mandatory
sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory
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Resolution 00-10 (Continued)
December 12, 2000
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sinking fund redemption and must conform to the maturity schedule set forth above at a price of
par plus accrued interest to the date of redemption. In order to designate term bonds, the
proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the
spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each ye~r, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
TRUSTEE
The Authority will name the trustee which shall be subject to applicable SEC regulations. The
Authority will pay for the services of the trustee.
OPTIONAL REDEMPTION
. The Authority may elect on February 1, 2006, and on any day thereafter, to prepay Bonds due
on or after February 1, 2007. Redemption may be in whole or in part and if in part at the option
of the Authority and in such manner as the Authority shall determine. If less than all Bonds of a
maturity are called for redemption, the Authority will notify DTC of the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount of each participanfs interest in
such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed.
The Bonds are also subject to extraordinary redemption, at the option of the Authority, on any
date at a price of par plus accrued interest under certain circumstances described in the
Indenture. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be special obligations of the Authority payable solely from revenues to be
received from Independent School District 270, Minnesota, pursuant to a Lease Agreement and
shall not constitute a debt for which the faith and credit or taxing powers of the Authority will be
pledged. The proceeds will be used to finance the construction of a community center,
including a gymnasium and community meeting space, to be jointly used by the District and the
City of Golden Valley.
TYPE OF PROPOSALS
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Proposals shall be for not less than $3,344,235 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 $33,900,
payable to the order of the Authority. If a check is used, it must accompany the proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
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Resolution 00-10 (Continued)
December 12, 2000
bond in the State of Minnesota, and preapproved by the Authority. 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 Authority to satisfy
the Deposit requirement. The Authority 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
Authority. No proposal can be withdrawn or amended after the time set for receiving proposals
unless the meeting of the Authority 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 level or ascending order. Bonds of
the same maturity shall bear a single rate from the date of the Bonds to the date of maturity.
No conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The Authority's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The Authority 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, (Hi) reject any proposal which the Authority determines to have failed to
comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from' such purchase of
insurance shall be paid by the purchaser,. except that, if the Authority has requested and
received a rating on the Bonds from a rating agency, the Authority will pay that rating fee. Any
other rating agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
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 through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Dorsey &. Whitney LLP of Minneapolis, Minnesota,
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Kesolution 00-10 (Continued)
December 12, 2000
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 Authority 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 Authority, or its agents, the purchaser shall be liable to the Authority for any loss suffered
by the Authority by reason of the purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the Authority will undertake, pursuant to the
resolution awarding sale of the Bonds, to provide annual reports and notices of certain events.
A description of this undertaking is set forth in the Official Statement. The purchaser's
obligation to purchase the Bonds will be conditioned upon receiving evidence of this
undertaking at or prior to delivery of the Bonds.
OFFICIAL STATEMENT
The Authority has authorized the preparation of an Official Statement containing pertinent
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 Authority, Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone
(651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying 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 Authority 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 Authority 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 135 copies
of the Official Statement and the addendum or addenda described above. The Authority
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 Authority (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 December 12, 2000
BY ORDER OF THE HOUSING AND
REDEVELOPMENT AUTHORITY
Isl William S. Joynes
Director
12/5/00 3: 1 0 PM
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