HomeMy WebLinkAbout4.a.2. 1994(D) Bond Issue - Authorize Issuance and Set Bond Sale CITY OF ROSEMOUNT
EXECUTIVE SUNIlKARY FOR ACTION
PORT AUTHORITY MEETING DATE: JUNE 7, 1994
AGENDA ITEM: 1994 BOND ISSUE - AUTHORIZE AGENDA SECTION:
ISSUANCE AND SET SOND DALE (1994A) OLD BUSINESS
PREPARED BY: JOHN MILLER, AGENDA NO.
ECONOMIC DEVELOPMENT COORDINATOR 4 . A. (2)
ATTACHMENTS: RESOLUTION AND SPRINGSTED APPROVED BY:
RECOMMENDATION
Presently Springsted Inc. is working with the city' s bond counsel to
complete the documents necessary for the port authority to sell bonds and
to pay for the business park infrastructure. Included among these
documents will be a resolution authorizing the issuance of the bonds and
setting the date for the bond sale. In addition, there will be a longer
document of "recommendation" that will explain the uses of the bond
revenues and how the port authority intends to repay the debt. The bond
sale has been tentatively set for July 5 .
The Rosemount City Council will also be considering the business park bond
issue on the evening of June 7. If the council does not take specific
action to pledge the full faith and credit of the city to the bonds, they
cannot be sold. I can' t guarantee at this time that the council will take
that action. In that regard any port authority action in approving a bond
issue should be contingent upon city council action.
At this writing, I have not yet received the supporting documents including
the resolution. Hopefully they will arrive in time to be included in the
agenda packet . If they are not, I will attempt to have them delivered to
you on Monday afternaon.
RECOMb1ENDED ACTION: Motion to approve Resolution 1994-2 , A RESOL'UTION
PROVIDING FOR THE COMPETITIVE NEGOTIATED 5ALE OF $1, 630, 000 GENEunr,
OBLIGATION BONDS, SERIES 1994A, contingent upon action of the Rosemount
City Council to permit the sale of bonds .
PORT AUTHORITY ACTION:
FA�Iv� BAIGGS & N[OAGAN ST. PAUL 612-223-6645 (THU) 06. 02' 94 13: 10/ST, 13:OO�NO, 3560836172 F 19
Rd3EMOUNT pQRT AIITHOliITY
DAICOTA COUi�'1'Y, MINHESOTA
ttEsoLtrrza� 1994 -
14 R�SQLQTIGN PRG?IDING FOR TSE CpMPETITIVE NEGOTIATED BALE
QF $1,6�O,OQO GENEI�iL pBLIGATION SOND6, SERrEB 1994A
WSEREAB, '�he Board of Comzaissioners af the Rosemount Port
Authority, Mfnnesota, has heretofore d�tezmiz�ad that it is
necessary► �.nd �xp�edi�nt to issue it� $�, 630,aa0 Gen�ral
�bliqatian Bonds, Seri�s �9�4A (th� '+Bonds") to Pinanca th� costs
�£ public impraye�ents in connecta.on �,r,ith the creati�an of an
industrial park; and
��REAB, the Authority has retained Sprinqst�d Inco�cporatec3f in
S��.nt Pau7., Minnesata ("Sprfngsted") , as its independent
ffnancial �dvisdr and is therefor� author�.z�d ta s�Il these
obl�,gations by a campetitiwe neqotiat�d sal� in accdzdance with
Minn�sota Statutes, Section 475. 60, Subdivis�on 2 (�) ; aitd
NO'W, T�EREfi�RE, �E IT REBo�,Y�D ]ay the Board o�' Commissioners o�
the Rosemdunt Port Authari.ty, r�iinnesata, �s foi�o�s:
Y. ut iz i�on: Findings. The 8oazd of Commissioners hez�by
�uthor�zes springsted to sdlicit bids for the aomp�titiv�
negotiated sale Qf the Svnds.
2' in ' Bid ena.n . ThiB Boazci of Commissiax►ers sha7.1
meet at the time and pl�ce specif�ed in the Terms af
Praposal attached here�o as Exhfbit s for the purpose o�
considerinr� sea].�d bi.ds f�z, and aWardingr th+� sal� af, the
Bcnds. The Executi�re �ixectoz, ar his d�sign��, shail ap�n
bids �t thQ time and pTaca specified S.n such Terms of
Prapasal. ,
�. Tet�ms df Pra r�sa1 . The t�rms and conditicx�s of tYxe Bvnds
and the neqotiation thereof are fully set fort�i in the
"Te]�ms of Proposal.�� attached hereto �s Exhibit B and hereby
appz�aved and made a par� hereof.
�. �'o�.ice of �ond Sale. The notice, in substantially the form
attach�d ri.ereta as Exhib�.t A, setting £arth the time and
2653Sp.i
FkOM BkIGGS & �IOkGAN ST. PAUL 612-223-6b45 (THU) 06, 02' 94 13: 10/ST, 13:00/N0, 3560�36172 P 20
p�.ace for receiving bfds, shall. be pul�l�s�xed ance, at least
twc ��eks pziar to the sa7.e,
5. Qf�icfal Statement. �n corrnection r��th said competiitive
n�gatiatad sa].e, the Executive bfrector and �rther office=s
os e�aployees af the Authority �re hereby authozized to
co�operate with Springsted �nd participate in the preparation
of an official stat�merit for ti�e Bcnds, and t� execute and
deliver �t on behalf of the Autharity upo� its ccmpletfon.
AA�OPTLD thf s 7th day of J�tzne, ].9g4,
chair
A,T'z'EST:
Executive �ixecto�
1�Iotion by: S�conded b�r:
Voted in fawd�:
Vated Against:
265350.7 2
FA�M BAIGGS & MORGAN ST. PAUL �12-223-6645 (THU) 06, 02' 94 13: 11/ST. 13:00/N0. 3�60�361iL P 21
El�HIHIT 1ri
NOTICE QF S01tiI7 SAz,E
$1,630,000
ROSEMOLTt�J'�' PORT AUTHORxTY
D�xoTA catrx�t
MINNESOTA
GE�tERA.L OBLIGATIQN HONp3, SERIES x�94A
These bonds Will b� off�red July 5, 1994. Sealed 2�ids wi3J.
be op�ned by the Authority�s Executive �irea�vr, �z desigrrtce, at
11=U0 a•m. , Central Time, at the affic�s of Spring�ted
Zncarparated, 85 East Seventl� Place, Suite lOQ, S.n Sa�nt Paul,
Minnesota 55101-21.43. Considerati,an of the bids and award of
the �ale a£ the bonds wi.11 b� by the Board af cvmmissioners at
�he Cit� Hall in Rasemour�t, Minnesota, at 5:15 p.m: following the
opening of the bids_ The barrds will be dated, Augu,st 1, 1994, a�
the date of �riginal issue.
Da�ed: June 7, 199�4 BY THE d1�DER QF TH�
BO�ZD OF COMMISSIONERS
/sl Thoma� _8urt
Es�ecutiy� Director
Additional irtformation
may be obtafned f�om:
sprittqsted Incarp�rated
85 East Seventh Str�e�
s�fte ioa
St, paul, Mi,nnesota 55101��143
T�Ieptivne Number: (612) 223-3pp0
255350.9
FP�-0M BkIGGS & M4ffGAN ST. PAUL 612-22�-6645 (THU) 06. 02' 94 13: 1 I/ST, 13:00/N0, 356U�36172 P 22
$�I�IB�T B �
THE �4UTHORITY HAS AUTHORIZED SPRtNGSTED IWGORP�1R,AkTED T� NE�OTIATE
'rHls tssUE ot� Ir� BEHatF. PROPC15�kLS VI/ILL BE F�ECElVED ()N TH� FOLLaWING
BASIS:
7�RMS OF PROPOS�►L
$1�630,000
R�SEMpUNT PQR7�UTHORITY, MtNNESOTA
GE�IERAL.�BL1GATtON 60Nd�S, SERIES 1994a
Proposaf$ for the Bonds wi(( be r�ceived orr Tuesd�y, Jul� �, 9894, untip 11:00 A�.M., Central
Time, at thre o�ces �f Sprirrgsted Inoorpor�ted, 85 East SevenEh Place, Suite 1 Q0, Saint Pauf,
Minnesota, after which time they wiil be p�ened and tabul�ed. Cansideration for award of the
B�rrds �vif1 be by#h�Authority at 5:'i� P.M., Centr�l Time, aF fhe same day_
DE7AILS QF THE �QNDS
rhe Bands wi1! be dafed August 1, 1994, �s the date af original issue, �nd wifl be2r irrterest
payab(e orr �ebruary 'I and �ugust 1 of each �ear, commencing February 7, 19$5. Interest wifi
be computed an the basis af � 36Q-d�y year of twelve 30-day months. The Bends wilf be
issued irr the denvmin�tion of$5,Q00 eaeh, or in integral mUltipies #hereof, �s requested E�� the
pc,rchaser, and fulfy regisfered as�o pnnc�pal and inter�esf. Principaf wiJl be payab(e at the main
corpvrate office nf the registrar and interest on each Bond will be pay2bfe by check or dra{f of .
the registrar mailed to fhe r�gisfer�d halder thereof at the holde�s address as it appears an th�
boaks of the registrar as of the clos� of business an tFYe 15th day af the immediatety preceding
•month.
The Bands wil( mature February 1 in the y�ars and amounts as follaws:
1997 $75,QOQ 2001 $ 9Q,400 2005 $110,0(�0 2009 $940,000
1ssa �Sa,00� 2002 $ 95,OaQ 2006 $115,d00 201a $1�45,0�0
1999 $80,000 2003 $10Q Q00 2Oa7 �125,OQ0 2017 �T55,004
ZQ�� $$�,�QO 2004 5105,000 20�8 $130,OpQ
�PTIaNAL REpEMPTIQN
The Autharity may �lect an Febru�ry 1, 2pp3, and on any day ther�after, to prepay Bonds due
on or after February 'i, 2Q04. Redemption may be in whole or in part and if in part, at fhe option
of the Authority �nd in such or�ier as the Autharity sha(! det�rmine and within a matuRty by iot
as selected by the regisfrar. A!I prepayments shall be at a price of par p�us �ccrued interest.
SECUR(TY aND PURpOS�
The 6orrds +wifl be general ab(igations of the City af Rosemount for which the City of Rasemount
wilf pledge its fu!! fa�th and credit �nd pow�r �v letiy direct ger��ral ad vaforem taxes. The
proceeds wiN be used to finance site work improvements for developmenf of a business park.
TYPE OF PROPOSALS
Prvposals shaH be� for not less than �1,607,1p8 and accrued interesf on the tofal principal
amaunt of the 8onds. Proposals ghafl be eccompanied by a Gaod Faith Deposit ("'peposit"} in .
-i -
F��M BAIGGS � MOAGAN ST, PAUL 61L_LL�J-UV`TV (THU) 06. 0�' 94 13: 11/ST, 13;00/N0. 3560836172 P 23
the form of a certified vr r�shfer's cheCl� or a �inanGia( Surety Bor�d in the amaurtf af �16,3pp,
P�Y�b1����e arder of the Autl�ority_ If a cFreck is vsed, it must ac�omp�ny eaCh propos�(. If a
�inanciaf Surety Bond is used, it must be fram an insurance campany tir,ensed ta issue such a
bond irr the Sfate ,of Minnesata, 2nd pr�approved by t(�� Autharity, Such bond must be
submftted to Springsted Incorparated prior to the opening of the prapas�ls. The Fin�ncial
Surefy Bond must identify each underwvriter whase Dreposi� is guararrteed by such Financial
Surety Bond. !f the Bonds are� awarded to an underrNriter using a Fin�ncial Surety Bond, Xhen
that purchaser is requ'rr'ed to submit its Deposit to Springsted Incarporated in the form of a
certi�ed or cashier's check or wire traRsfer as instructed by 5pringsted I�carparate�d not fater
th�n 3:30 P,M., Centra! lime, on the next busirtess day following the �ward_ (f suC� Dep�sit is
not recei�ed by th�t time, the Fir�ancial Sur�ty Ba�d may be drawn by the Authority to satisfy
th� Deposit requirement_ TI�e A�uthori�y wif� deposit the check of the purchaser, the amount of
which wi!( be deducted a# sei�tement and no interest wifl accrue to the purchaser. In the ev�nt
the purchaser feils to comp(y wvith the accepted proposal, said amount will be retained by the
AuthonXy. No proposa! c.�n be withdrawn or amend�d ai�er the tim� set for receiv�ng propasals
unfess the meeting of the Acrthority scheduled for award of the Bonds is adjaumed, recessed, or
continued to another date witt�aut aw�rd af the Bonds having been made_ F�ates sha[I be in
in�egra( muitjpfes of 5/9Q0 or 9/8 of 1°fo. Rat�s must be irr asaending ord�r. �onds af the same
maturity shafl beat a singfe t�te from the date of the Band� to the date of maturity, No
,conditional praposa(s tivi�1 be aEcep#ed,
AWARD
The gonds wi!! f� awartfed an the basis of tf�e (owest inter�st rate �o be tfetermined on a true
inter�st cost (TIC) basis. Tf�e Authority's computation af the interest rate of e�ch proposaf, ;rr
accordance with customary practice, wif! be contr�(ling_
The Authorit�vuill r�se�ve the right to. (i)waPve non-substarrtiv� infarmalities of arry praposa! or
of matter�s relating to fhe receipt of propos�ls ant! award of the Bonds, (ii) rej�ct all propasafs '
withaut cause, and, (iii) reject any propasal which Yhe Authority deterrnines to have faifed ta
compfy v�rith the terrns herein.
REG f STRAR
The Autharity will name the registrar which shall be subject to applicable SEC r�gulations_ The
Authority will pay for�he services of the registrar.
CUStP t�UMBERS
If the Bands qual+fy far assigrrmer�t of GUSIP numbers such num�ers vvi(( be prir�ted vrt the
Bonds, but neither the failure fo print suc�t numbers on eny Bond nor arry errar with respect
thereto �rill constitute c�use for failure or refusaf by the purchaser ta accept de(ivery► of the
Bonds. The CUSIP Servioe Bureau �targe for the assignment af CUSIP identific.�tian numbers
sha(1 be paid by the pur�haser.
SETTLEM�(VT
V1r�fhin 40 �ays fol(owing thre �ate of their award, the Bonds wili be delivered wifhout cast to the
purchaser at a place mufuafly satisfactory to the Authority and th� purchaser, Delivery wifl be
subject to rece�pt by the purchaser of an approving legal opinicrn of Briggs and Morgan,
ProfessionaC Association, af Sairr�t Paul and Minneapolis, Minnesota, which apinian will f�e
printed on the Bonds, �rrd of customary cfasing papers, including a no-litigation certificate. Qn
the dafe of seft(ement payment for the Bonds ShaN be made in federal, or equivalent, funds
which shalf be received at the offices of the Auttrp�pty er its designee not later than 92:00 Naorr,
C�ntra( Time. Excepf as campliance with fhe terms qf paymen# for the Bonds shalf have been
made impossib(e by action of the Autihority, ar its agents, the purchaser shafl be liable fo th�
-If -
FA�O� BkIGGS & MORGAN ST, PAUL 612-223-6645 (THU) 06. 02' 94 13: 12/ST, 13:00/N�. 3560�36172 � 24
Authority f�r any lass suffered by the A�harity t�y reason of the purchraser's non-compfiance
vwrifh said terms far payment.
OFFlCfAL STiqTEhIIENT
The Authariiy has authonzeQ the preparation of arr O�cjal Statemertt containirrg pertinent
information ref�tirre ta the B�nd�, and said Official Staterrrent wril( serve as a nearly-finai �t{ciaf
Statement within the meaning of Ruie 15c2�12 of fhe Securities and E�change Commission.
For c�apies of the Officia! St�tement ot for any addition�( information prior t� sale, any
prospectiv� purchaser is referred to the Financia( Advisor f� the Auth�orify, Sprirtgsted
1nCorporated, $5 East Sevent�h Pface, Suite 100, S2int Pauf, Minn�sota 5�109, tetephone
(612� 223-�Q00_
Tfte �Jfficial St�tement, when further supplem�nted by an addendum ar addenda� specifyfng the
maturity dates, principa( amaunts �nd interest raYes of the Bonds, together wi#h arry oth�r
informat�on required by law, shai� constitute a "Final Qfficiai Statement" of the Auth�rity with
respect to the Bonds, as that term is defi�ed in Rule '15c2-12. By ewa�ding the Borrds to any
underwriter Qr underwriting syndicat� sul�mitting a propasal therefor, the R�uthority agr�es that,
no more than seven business days after the date of such award, it shaff provide withaut cost to
the senior managing und�rwriter of the syndicafe to which the Bpnds are awarded 90 cc�pies of
the OfFcial Statement and fhe adde�dum ar addend� described abave. The Authority
designafes the senior managing underwriter of the syndicate to which the Bands are awarded
as its agent far purposes of disfrif�uting copies af the Finaf G7�cial S#afement to each
Participating Un�lertivri#�r. Any undenn�riter detiv�ring a propos2l vrr�th respect to the Bands
agrees thereby th�t if its proposa! is accepted by the Authority (i) it shall accept such
designatian �nd (ii) it shal! e�nter into a confra�tual relatianship with a!! Participating
Un�derwri#ers of the Bonds for purpos�s of assuring the receipt by each such Particip2fin�
Underwriter�f the Finaf Officiaf Statement.
Dat�d June 7, 19�4 BY QRDEI� OF THE PORT AUTHQF�ITY
/s/Thamas 8urt
Execcrtive Director
- iii-
Recommendations
For
City of Rosemount, Minnesota
$1,605,000
General Obligation Improvement Bonds, Series 1994A
$335,000
General Obligation Storm Water Revenue Bonds,
Series 1994B
$700,000
General Obligation State Aid Street Bonds, Series 1994C
Rosemount Port Authority, Minnesota
$1,630,000
General Obligation Bonds, Series 1994A
Study No. R0704
SPRINGSTED Incorporated
June 1, 1994
SPRINGSTED i20 South Sixth Street
Suite 2507
PUBLIC FINANCE ADVISORS Minneapolis, MN 55402-1800
(612) 333-9177
Fax: (612) 349-5230
Home Office `+
85 East Seventh Place i 16655 West Bluemound Road
Suite 100 Suite 290
Saint Paul, MN 55101-2143 Brookfield, WI 53005-5935
(612) 223-3000 � (414) 782-8222
Fax: (612) 223-3002 Fax: (414) 782-2904
„ 6800 College Boulevard
Suite 600
Overiand Park, KS 66211-1533
� � (913) 345-8062
�.- Fax: (913) 345-1770
�e f,
� 1850 K Street NW
� June 1, 1994 � � s��te zi5
Washington, DC 20006-2200
� (202) 466-3344
4�`1 Fax: (202) 223-1362
f"� �
Mayor E. B. McMenomy � Chair Edmund Dunn�-'`"`
Members, City Council Board of Commissioners
Mr. Thomas Burt, City Administrator `�-•w_„�1IIr.,Thoma��Burt, Executive Director
Mr. Jeffrey May, Finance Director Rosemount Port Authority
City of Rosemount Rosemount City Hall
Rosemount City Hall 2875 - 145th Street West
2875 - 145th Street West Rosemount, MN 55068-0510
Rosemount, MN 55068-0510
Re: Recommendations for the Issuance of:
$1,605,000 General Obligation Improvement Bonds, Series 1994A
$335,000 General Obligation Storm Water Revenue Bonds, Series 1994B
$700,000 General Obligation State Aid Street Bonds, Series 1994C
$1,630,000 General Obligation Bonds, Series 1994A (Port Authority)
We respectfully request your consideration of our recommendations for the issuance of these
issues in accordance with the attached Terms of Proposals. The following is a brief discussion
of each bond issue. Appendix I summarizes each of the four bond issues and the project costs
comprising each issue.
$1,605,000 General Obligation Improvement Bonds, Series 1994A
(the Improvement Bonds")
The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and
475 and will be general obligations of the City. In addition, the City will pledge special
assessments against benefited property.
The proceeds of the Improvement Bonds will finance the construction of various street and
utility improvements. Appendix I is a description of the projects composing the Issue. A
summary of the composition of this Issue is as follows:
Project Costs $1,445,000
Cost of Issuance 16,900
Capitalized Interest 123,900
Allowance for Discount Bidding 22,470
Less: Estimated Investment Earnings (�.270)
Total Improvement Bonds $1,605.000
City of Rosemount, Minnesota
June 1, 1994
Appendix II is the projected assessment income schedule totaling $1,605,000 of principal.
Assessments are expected to be filed on or about October 1, 1995 for first collection in 1996,
and will be spread over ten years in even annual principal and interest payments. Interest will
be charged on the unpaid balance at a rate estimated to be 7.4%, which is approximately 2%
over the interest rate expected to be received on the Bonds when sold, consistent with the
City's assessment policy. The first collection of assessments will be received by the City with
taxes collected in 1996. The projection of assessment income does not take into account any
prepayments or delinquencies, thereby assuming that the City will receive 100% of
assessments filed.
Appendix III is our recommended maturity schedule for this Issue. The Bonds are dated
August 1, 1994 and will mature each February 1, 1997 through 2006. Columns 1 through 6
show the years and amounts of principal and estimated interest due and payable on the
Improvement Bonds. Interest rates shown in Column 4 are current market rates and are
subject to change befinreen now and the sale date. Column 7 is the capitalized interest included
in the Issue to pay the interest due on the Improvement Bonds through February 1, 1996 before
assessments are collected. The 105% overlevy required by State Statute is shown in Column
9. Column 10 is the projection of assessment income as developed in Appendix II. Eolumn 11
is the surplus of assessment income over the 105% total requirement and assumes the City will
receive 100% of assessments filed.
The interest payments due February 1, 1995, August 1, 1995, and February 1, 1996 will be paid
from capitalized interest to total $123,900. The August 1, 1996 interest payment will be paid
from assessments collected in the first half of 1996. The February 1, 1997 principal and
interest payment will be paid from assessments collected in the second half of 1996 and
surplus assessments collected in the first half. This cycle will continue through the life of the
Issue.
We have included an allowance for underwriter's discount of $22,470. The discount provides
the underwriters with all or part of their profit and/or working capital for purchasing the Issue
and permits them to reoffer the Improvement Bonds to the investing public at a price of par.
The City has successfully used the discount bidding approach in the past, and we recommend
its continued use herein.
We recommend the Improvement Bonds maturing on February 1, 2004 through 2006 be
callable on or after February 1, 2003 at a price of par. This will allow the City to pay some of
the issue early if significant prepayments of assessments are received. The call provision
should have no adverse impact on the marketability of the Issue.
$335,000 General Obligation Storm Water Revenue Bonds, Series 1994B
(the "Storm Water Bonds")
The Storm Water Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and
475. Proceeds of this Issue will be used to finance improvements to the City's storm water
system. The composition of the Storm Water Bonds is as follows:
Project Costs $325,000
Issuance Costs 9,100
Allowance for Discount Bidding 4,690
Less: Estimated Investment Earnings �3,790)
Total Storm Water Bonds 33
In addition to its general obligation pledge, the City pledges net revenues of the City's Storm
Water Utility for payment of the Storm Water Bonds.
. Page 2
City of Rosemount, Minnesota
June 1, 1994
Attached as Appendix IV is our recommended maturity schedule for this issue. The Storm
Water Bonds are dated August 1, 1994, and mature each February 1, 1996 through 2005. The
Storm Water Bonds were structured to allow for equal annual principal and interest payments
when combined with the existing debt requirements of the Storm Water Revenue Bonds of
1992. Column 6 of Appendix IV shows the total principal and interest due on the Storm Water
Bonds. Column 8 shows existing debt service on the Storm Water Revenue Bonds of 1992,
and Column 9 shows the total debt service to be pledged by the Storm Water Utility. The Issue
was structured to be repaid in 10 years as requested by City staff.
We have included an allowance for undennrriter's discount of $4,690. As with the Improvement
Bonds, the discount feature provides underwriters with all or part of their profit and/or working
capital for purchasing the issue and permits them to reoffer the Bonds to the investing public at
a price of par.
We recommend the Storm Water Bonds maturing February 1, 2004 through 2005 be callable
on or after February 1, 2003 at a price of par. This will allow the City to pay some of the issue
early if significant prepayments of fees or other income is received. The call provision should
have no adverse impact on the marketability of the Storm Water Bonds.
$700,000 State Aid Street Bonds, Series 1994C
(the "State Aid Bonds")
The State Aid Bonds are being issued pursuant to Minnesota Statutes, Chapters 162 and 475.
The proceeds of the Bonds will be used for street improvements. The composition of the Issue
is as follows
Project Costs $680,000
Costs of Issuance 12,300
Allowance for Discount Bidding 9,800
Less: Estimated Investment Earnings 2 1 )
Total State Aid Bonds $700.000
The State Aid Bonds will be secured by the City's pledge to appropriate and pledge to a sinking
fund sufficient money to pay the principal and interest due on the State Aid Bonds from the
City's allotment from its account in the municipal State Aid Street Fund.
The City may not issue State Aid Bonds unless the average annuaf principal and interest due in
all subsequent calendar years on the obligations, including similar outstanding debt, is not
greater than 50% of the amount of the last annual allotment of the construction account. Since
the City's estimated average annual obligation on the State Aid Bonds of $89,597 is less than
50% of the 1994 allotment of $385,738, no such restriction exists on the issuance of the State
Aid Bonds. The City has no existing State Aid Bonds outstanding.
Appendix V is the repayment schedule for the State Aid Bonds, which will be dated August 1,
1994, and will mature April 1, 1995 through 2004. The State Aid Bonds are structured in even
annual principal and interest payments to match the receipt of State allotments distributed to
municipalities on or around February 1.
The first payment for this Issue will be April 1, 1995 for the expected amount of$87,733 and will
be paid from State funds received in February 1995. The average annual payment on the State
Aid Bonds is expected to be $89,593.
Included in the bond size is a provision for discount bidding in the amount $9,800. As in the
above bond issues, the discount feature allows the underwriters to reoffer the State Aid Bonds
at or close to a par reoffering scale, enhancing the marketability of the State Aid Bonds.
Page 3
City of Rosemount, Minnesota
. June 1, 1994
We recommend the State Aid Bonds maturing April 1, 2004 be callable on or after April 1, 2003
at a price of par. The call provision should have no adverse impact on the marketability of the
Bonds.
Rosemount Port Authority, Minnesota
$1,630,000 General Obligation Bonds, Series 1994A
(the "Port Authority Bonds")
The Port Authority Bonds are being issued by the Rosemount Port Authority pursuant to
Minnesota Statutes, Chapter 475. The proceeds of the Port Authority Bonds will be used to
make improvements to the Rosemount Business Park. The composition of the Issue is as
follows:
Projects Costs, Engineering & Contingency $1,509,357
Cost of Issuance 18,200
Capitalized Interest (through August 1, 1995) 83,305
Allowance for Discount Bidding 22,820
Less: Estimated Investment Earnings (3.�$2)
Total Port Authority Bonds �1.630.000
The Port Authority Bonds will be general obligations of the City of Rosemount. Income received
from the sale of the improved sites in the Rosemount Business Park is expected to provide
adequate income to fund the debt service on the Port Authority Bonds without a general ad
valorem tax levy. Capitalized interest has been included in the Port Authority Bonds sufficient
to make interest payments through August 1, 1995, after which time revenues from land sales
are expected to be available.
All costs of the business park improvements will be specially assessed to benefited property
owners. CMC, which owns property north of County Road 42, will be assessed for a portion of
the County Road 42 modifications. Remaining costs will be assessed against the business park
land. As land is sold in future years, the Port Authority may allow the special assessment
obligation to be assumed by the purchaser and paid over time. As special assessment
payments are received by the City, they will be transferred to the Port Authority for payments on
the Bonds, as well as other obligations of the Port Authority.
Attached as Appendix VI is the projected maturity schedule for the Port Authority Bonds. The
Bonds are dated August 1, 1994 and will mature each February 1, 1997 through 2011.
Columns 1 through 6 show the years and amounts of principal and estimated interest due and
payable on the Port Authority Bonds. Please note that interest rates shown are current market
rates and are subject to change between now and the sale date. Column 7 is capitalized
interest included to pay interest costs prior to the receipt of income. Column 8 shows the tax
levy required to pay 100% of debt service, and Column 9 shows the 5% overlevy requirement.
Columns 10 and 11 show income expected through the life of the Issue.
The first interest payments due February 1, and August 1, of 1995 will be paid from capitalized
interest included in the Port Authority Bonds. Thereafter, income will cover the August 1
interest payment and February 1 principal and interest payment through the life of the Issue.
As in the above bond issues, we have included an allowance for underwriter's discount of
$22,820.
We recommend the Port Authority Bonds maturing February 1, 2004 through 2010 be callable
on or after February 1, 2003 at a price of par. This will allow the Rosemount Port Authority to
Page 4
City of Rosemount, Minnesota
► June 1, 1994
pay some of the Issue early if significant receipts of income are received. The call provision
should have no adverse impact on the marketability of the Port Authority Bonds.
Common to All Issues
For purposes of discussion, the City and the Authority are hereafter referred to as the City.
R in
We recommend that the City request a rating from Moody's for these issues. The City is
currently rated "A" by Moody's Investors Service. The rating fee for all issues, estimated at
$5,000, has been pro-rated in the issuance costs of each bond issue.
Federal Rebate -Arbitrage
All tax-exempt bonds are subject to federal arbitrage regulations, including �ebating arbitrage
profits to the U.S. Treasury. Generally speaking, all arbitrage profits (the yield difference
between the earnings on the investments and the yield on the obligations) must be rebated to
the U.S. Treasury. There are some exemptions to this rebate requirement which include:
(i) A small issuer exemption if the obligations are for governmental purposes and the issuer
reasonably expects to issue not more than $5,000,000 tax-exempt obligations during the
calendar year.
(ii) A six-month exemption if all of the proceeds of the obligations are expended within six
months of issuance of the obligations. -
(iii) An 18-month expenditure test if at least 15% of the proceeds are expended within
6 months, 60% within 12 months and 100% within 18 months.
(iv) A two-year expenditure test if at least 75% of the proceeds of the issue are used for
construction and if 10% is expended within six months, 45% within 12 months, 75%
within 18 months and 100% within two years.
For items (iii) and (iv), if it is reasonably required that a retainage be maintained to enforce the
completion of a contract, up to 5% of the proceeds may be retained for an additional 12
months. Net proceeds subject to these expenditure tests include investment earnings on the
original bond proceeds.
The City expects to meet the small issuer test (i) above, and will therefore be exempt from
reporting and rebate requirements.
Another potential source of rebate would stem from the creation of the debt service funds to
pay debt service on the new issues. Prior to the 1993 "final" arbitrage regulations released in
June 1993, the small issuer exemption also exempted any debt service funds from rebate
requirements. The 1993 regulations now permit only bona fide debt service funds to be exempt
from rebate. A bona fide debt service fund is defined as a fund for which there is an equal
matching of revenue to debt service expense with a carry over permitted equal to the greater of
the investment earnings in the fund during that year or 1/12 of the debt service of that year. A
debt service fund can lose its bona fide status if the issuer accumulates too much investment
earnings, prepayments of assessments or other sources of revenue in the debt service fund. It
is important to monitor the debt service fund for these issues to assure compliance with the
regulations.
Page 5
City of Rosemount, Minnesota
� June 1, 1994
Economic Life of Financed Projgcts
The 1993 "final" arbitrage regulations brought all tax-exempt issues into the calculation of
"economic life." Previously this requirement was only for private activity bonds. The intent of.
this requirement is that the U.S. Treasury does not want bonds outstanding longer than is
necessary, thus creating more tax-exempt bonds in the marketplace than are needed. The
general safe harbor for assuring that bonds comply with the regulations is if the average
maturity of the bonds does not exceed 120% of the economic life of the financed projects. The
bonds are issued for street and storm water and water main improvements, which, under the
U.S. Treasury guidelines have an economic life of 20 and 50 years, respectively. Therefore,
these Issues are in compliance with this regulation.
Federal Reimbursement Regulations
The U.S. Treasury has enacted reimbursement regulations to regulate issuers who wish to
issue tax-exempt bonds to recover costs of prior expenditures. The reimbursement regulations
require that if the issuer proposes to reimburse itself for expenses they paid prior to receipt of
bond proceeds, it must have made a declaration of that intent within 60 days of the actual
payment of the expense. There are exemptions for architectural and engineering fees and
miscellaneous start-up costs. It is our understanding the City is aware of these regulations and
will take whatever action is necessary, to comply with the federal reimbursement regulations in
regard to these Issues.
Bank-Qualified Obligations
The Tax Reform Act of 1986 restricts the ability of banks to deduct tax-exempt interest as a
carrying expense under certain circumstances in calculating their tax liability. However, the Act
allows certain bonds to be qualified bonds which can be included in a bank's calculation of
interest deduction. That qualification is reserved for municipalities that will issue less than
$10,000,000 of tax-exempt debt within a calendar year. The City does not expect to exceed
this $10,000,000 limit in 1994, and therefore these Issues will be bank-qualified. This
qualification will help the marketability of the Issues.
Sale Process
For your bond sale, you will most likely receive some bids which are accompanied by a good
faith check and some which are covered under "Sure-Bid," the surety bond service which the
City has used for previous issues. Springsted will be in constant touch with Capital Guaranty,
the provider of the surety bond service, to monitor the underwriters which have been admitted
to this program and, if Sure-Bid is used, Springsted will follow through after the sale, to make
sure you receive your good faith amount from the purchaser.
We recommend these bonds be offered for sale on Tuesday, July 5, 1994, with proposals
received at the offices of Springsted Incorporated at 11:00 A.M. Proposals will be verified,
checked for accuracy and presented that same evening to the City at 7:30 P.M., and to the Port
Authority at 5:15 P.M., for consideration of award. A representative of Springsted Incorporated
will attend your meetings to provide recommendations as to the acceptability of the proposals
received.
Respectfully submitted,
c—' - � �
���1.��r�l�r-r�'c���<'�''���x�'�'�
� tJ
SPRINGSTED Incorporated
P1p
Page 6
CITY OF ROSEMOUNT, MINNESOTA
Summary of Project Funding
Seriea 1994A Series 1994B Seri� 1994C Series 1994A
(the Improvement (the Storm Water (the State Rand— (the Part—
PfOjeCt Bonds) Bonds) Aid Bonda) Authority Bonds)
, 145th Street Reconstruction 55,000 39,000 680,000
Chili to Cameo
West Ridge 5th Addition 414,000
Shannon Pond 3rd Addition
Shannon Hills 6th Addition 405,000 70,000
O'Leary's 7th Addition 571,000
O'Leary's 8th Addition
Wachter 186A Outlet 216,000
Rosemount Business Park 1,509,357
Subtotal Project Costs: 1,445,000 325,000 680�000 1,509,357
Cost Of Issuance: 16,900 9,100 12,300 18,200
Capitalized Interest: 123,900 0 0 83,305
Allowance for Discount Bidding: 22,470 4,690 9,800 22,820
Less: Estimated Investment Earnings: (3,270) (3,790) (2,100) (3,682)
Total Bond Size: i,605,000 535,000 700,000 1,650,000
D
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01—Jun-94 Prepared by Springsted Incorporated
�
APPENDIX 11
City of Rosemount, Minnesota Pr�epared May 31 , 1994
$1 ,605,000 General Obligation Improvement Bonds By SPRINGSTED Incorporated
Series 1994A
PROJECTED ASSESSMENT INCOME
Filing Date: 10/ 1 /1995
Filing Collect Interest
Year Year Principal @ 7.400� Total
----- ------- - -------- -------- -----
1995 1996 88,095 148,707a 236,802
1996 1997 124,551 112,251 236,802
1997 1998 133,768 103,034 236,802
1998 1999 143,667 93,135 236,802
1999 2000 154,298 82,504 236,802
2000 2001 165,716 71 ,086 236,802
2001 2002 177,979 58,823 236,802
2002 2003 191 ,149 45,653 236,802
2003 2004 205,295 31 ,507 236,802
2004 2005 220,482 16,316 236,798
TOTALS 1 ,605,000 763,016 2,368,016
a) Includes interest f rom filing
date to 12/31/1996.
Page 8
City of Rosemount, Minnesota Prepared May 31 , 1994
$1 ,605,000 General Obligation Improvement Bonds By SPRINGSTED Incorporated
Series 1994A �
Dated: 8- 1 -1994
Mature: 2- 1
First Interest: 2- 1 -1995
Total Capital- Net Projected
Year of Year of Principal ized Levy 105� Assessment Cumulative
Levy Mat. Principal Rates Interest & Interest Interest Required of Total Income Surplus
(1 ) �2) �3) �4) �5) �6) ��) �$) �9) �10) ��� )
1994 1996 0 0.00� 123,878 123,878 123,900 0 0 0 22
1995 1997 130,000 4.60� 82,585 212,585 0 212,585 223,214 236,802 13,610
1996 1998 135,000 4.80� 76,605 211 ,605 0 211 ,605 222,185 236,802 28,227
1997 1999 140,000 4.90� 70,125 210,125 0 210,125 220,631 236,802 44,398
1998 2000 145,000 5.00� 63,265 208,265 0 208,265 218,678 236,802 62,522
1999 2001 155,000 5.10� 56,015 211 ,015 0 211 ,015 221 ,566 236,802 77,758
2000 2002 160,000 5.20� 48,110 208,110 0 208,110 218,516 236,802 96,044
2001 2003 170,000 5.30� 39,790 209,790 0 209,790 220,280 236,802 112,566
2002 2004 180,000 5.40� 30,780 210,780 0 210,780 221 ,319 236,802 128,049
2003 2005 190,000 5.40� 21 ,060 211 ,060 0 211 ,060 221 ,613 236,802 143,238
2004 2006 200,000 5.40� 10,800 210,800 0 210,800 221 ,340 236,798 158,696
TOTALS: 1 ,605,000 623,013 2,228,013 123,900 2,104,135 2,209,342 2,368,016
Bond Years: 11 ,882.50 Annual Interest: 623,013
Avg. Maturity: , 7.40 Plus Discount: 22,470
Avg. Annual Rate: 5.243� Net Interest: 645,483
T.I.C. Rate: 5.468� N.I.C. Rate: 5.432�
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
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City of Rosemount,Minnesota Prepared May 31 , 1994
General Obligation Storm Water Revenue Bonds By SPRINGSTED Incorporated
Series 19946
Dated: 8- 1 -1994
Mature: 2- 1
First Interest: 2- 1 -1995
Total Existing Total
Year of Year of Principal 105� Debt Debt
Revenue Mat. Principal Rates Interest & Interest of Total 19926 Bonds Service
�1 ) �2) �3) �4) �5) �s) ��) �8) (9)
1994 1996 60,000 4.40� 25,050 85,050 89,303 111 ,975 201 ,278
1995 1997 25,000 4.60� 14,060 39,060 41 ,013 155,950 196,963
1996 1998 25,000 4.80� 12,910 37,910 39,806 157,338 197,144
1997 1999 25,000 4.90� 11 ,710 36,710 38,546 158,288 196,834
1998 2000 30,000 5.00� 10,485 40,485 42,509 153,822 196,331
1999 2001 35,000 5.10� 8,985 43,985 46,184 154,167 200,351
2000 2002 30,000 5.20� 7,200 37,200 39,060 159,168 198,228
2001 2003 30,000 5.30� 5,640 35,640 37,422 158,558 195,980
2002 2004 35,000 5.40� 4,050 39,050 41 ,003 157,520 198,523
2003 2005 40,000 5.40� 2,160 42,160 44,268 156,040 200,308
2004 2006 0 5.40� 0 0 0 159,165 159,165
2005 2007 0 5.40� 0 0 0 156,605 156,605
2006 2008 0 5.40� 0 0 0 158,625 158,625
TOTALS: 335,000 102,250 437,250 459,114 1 ,997,221 2,456,335
Bond Years: 1 ,977.50 Annual Interest: 102,250
Avg. Maturity: 5.90 Plus Discount: 4,690
Avg. Annual Rate: 5.171� Net Interest: 106,940
T.I .C. Rate: 5.444� N.I.C. Rate: 5.408� D
�
Interest rates are estimates; changes may cause significant alterations of this schedule. �
� The actual underwriter's discount bid may also vary. Z
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APPENDIX V
City Of Rosemount, Minnesota Prepared May 31 , 1994
$700,000 General Obligation State Aid Street Bonds By SPRINGSTED Incorporated
Series 1994C
Dated: 8- 1 -1994
Mature: 4- 1
First Interest: 4- 1 -1995
Total
Year of Year of Principal
Revenue Mat. Principal Rates Interest & Interest
(1 ) �2) �3) �4) �5) �6)
1995 1995 65,000 3.60� 22,733 87,733
1996 1996 60,000 4.40� 31 ,760 91 ,760
1997 1997 60,000 4.60� 29,120 89,120
1998 1998 65,000 4.80� 26,360 91 ,360
1999 1999 65,000 4.90� 23,240 88,240
2000 2000 70,000 5.00� 20,055 90,055
2001 2001 75,000 5.10� 16,555 91 ,555
2002 2002 75,000 5.20� 12,730 87,730
2003 2003 80,000 5.30� 8,830 88,830
2004 2004 85,000 5.40� 4,590 89,590
TOTALS: 700,000 195,973 895-,973
Bond Years: 3,831 .67 Annual Interest: 195,973
Avg. Maturity: 5.47 Plus Discount: 9,800
Avg. Annual Rate: 5.115� Net Interest: 205,773
T.I.C. Rate: 5.404� N.I.C. Rate: 5.370�
Interest rates are estimates; changes may cause signif icant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Page 11
Port Authority of the City of Rosemount, Minnesota Prepared June 2, 1994
$1,630,000 General Obligation Bonds By SPRINGSTED Incorporated
Series 1994A
Dated: 8- 1-1994
Mature: 2- 1
First Interest: 2- 1-1995
Total Capital- Net Paid Paid
Year of Year of Principal ized Levy 105% By By Port
Levy Mat. Principal Rates Interest & Interest Interest Required of Total CMC Authority
�1) �2) �3) �4) �5) �6) ��) �8) �9) ���) �11)
1994 1996 0 0.00% 133,293 133,293 83,305 49,988 52,487 5,039 47,448
1995 1997 75,000 4.60% 88,862 163,862 0 163,862 172,055 16,517 155,538
1996 1998 50,�0 4.$0% 85,412 165,412 0 165,412 173,683 16,674 157,009
1997 1999 80,000 4.90% 81,572 161,572 0 161,572 169,651 16,286 153,365
1998 2000 85,000 5.00% 77,652 162,652 0 162,652 170,785 16,395 154,390
1999 2001 90,000 5.10% 73,402 163,402 0 163,402 171,572 16,471 155,101
2000 2002 95,000 5.20% 68,812 163,812 0 163,812 172,003 16,512 155,491
2001 2003 100,000 5.30°�6 63,872 163,872 0 163,872 172,066 16,518 155,548
2002 2004 105,000 5.40% 58,572 163,572 0 163,572 171,751 16,488 155,263
2003 2005 110,000 5.40% 52,902 162,902 0 162,902 171,047 16,421 154,626
2004 2006 115,000 5.55% 46,962 161,962 0 161,962 170,060 16,326 153,734
2005 2007 125,000 5.65% 40,579 165,579 0 165,579 173,858 16,690 157,168
2006 2008 130,000 5J5% 33,516 163,516 0 163,516 171,692 16,482 155,210
2007 2009 140,000 5.85% 26,041 166,041 0 166,041 174,343 16,737 157,606
2008 2010 145,000 5.95% 17,851 162,851 0 162,851 170,994 16,415 154,579
2009 2011 155,000 5.95% 9,223 164,223 0 164,223 172,434 16,554 155,880
TOTALS: 1,630,000 958,523 2,588,523 83,305 2,505,218 2,630,481 252,526 2,377,955
Bond Years: 17,070.00 Annual Interest: 958,523 y
Avg. Maturity: 10.47 Plus Discount: 22,820 �
-v
� Avg. Annual Rate: 5.615% Net Interest: 981,343 Z
� T.LC. Rate: 5.770% N.I.C. Rate: 5.749%0 0
� X
rv Interest rates are estimates; changes may cause significant alterations of this schedule. c
The actual undervvriter's discount bid may also vary.
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWINC BASIS:
TERMS OF PROPOSAL
$1,605,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994A
Proposals for the Bonds will be received on Tuesday, July 5, 1994, 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 City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1995. 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 registe�ed 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 wilt mature February 1 in the years and amounts as follows:
1997 $130,000 2001 $155,000 2004 $180,000
1998 $135,000 2002 $160,000 2005 $190,000
1999 $140,000 2003 $170,000 2006 $200,000
2000 $145,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or
after F�bruary 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 prepayments shall be at a price of par plus 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 special
assessments against benefitted property. The proceeds will be used for street improvements in
the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,582,530 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 $16,050,
Page 13
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 fo� 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 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 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 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 Briggs and Morgan,
Professional Association, of Saint 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 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
Page 14
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 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 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 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 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 65 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 ag�ees 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 June 7, 1994 BY ORQER OF THE CITY COUNCIL
/s/ Susan Walsh
City Clerk
Page 15
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$335,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION STORM WATER REVENUE
BONDS, SERIES 19946
Proposals for the Bonds will be received on Tuesday, July 5, 1994, 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 City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1995. 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:
1996 $60,000 2000 $30,000 2003 $30,000
1997 $25,000 2001 $35,000 2004 $35,000
1998 $25,000 2002 $30,000 2005 $40,000
1999 $25,000
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 prepayments shall be at a price of par plus 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 net
revenues of the storm water utility. The proceeds will be used to finance the costs of storm
water improvement projects within the City
TYPE OF PROPOSALS
Proposals shall be for not less than $330,310 and accrued interest on the total principal amount
of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form
Page 16
of a certified or cashier's check or a Financial Surety Bond in the amount of $3,350, 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 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 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 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 Briggs and Morgan,
Professional Association, of Saint 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 o�ces 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
� Page 17
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 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 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 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 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 15 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing undenNriter 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 undenNriter 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 June 7, 1994 BY ORDER OF THE CITY COUNCIL
/s/Susan Walsh
City Clerk
Page 18
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$700,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAt OBLIGATION STATE AID STREET BONDS,
SERIES 1994C
Proposais for the Bonds will be received on Tuesday, July 5, 1994, 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 City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest
payable on April 1 and October 1 of each year, commencing April 1, 1995. 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 �egistrar 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 April 1 in the years and amounts as follows:
1995 $65,000 1999 $65,000 2002 $75,000
1996 $60,000 2000 $70,000 2003 $80,000
1997 $60,000 2001 $75,000 2004 $85,000
1998 $65,000
OPTIONAL REDEMPTION
The City may elect on April 1, 2003, and on any day thereafter, to prepay Bonds due on or after
April 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 prepayments shall be at a price of par plus 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. The proceeds will be used for street
improvements.
TYPE OF PROPOSALS
Proposals shall be for not less than $690,200 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 $7,000, payable to
Page 19
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 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 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 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 Briggs and Morgan,
Professional Association, of Saint 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 12:00 Noon,
Central Time. Except as compEiance 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
Page 20
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 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 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 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 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 30 copies of the
Official Statement and the addendum or addenda desc�ibed 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 underuvriter 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 June 7, 1994 BY ORDER OF THE CITY COUNCIL
/s/ Susan Walsh
City Clerk
Page 21
THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$1,630,000
ROSEMOUNT PORT AUTHORITY, MINNESOTA
GENERAL OBLIGATION BONDS, SERIES 1994A
Proposals for the Bonds will be received on Tuesday, July 5, 1994, 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 at 5:15 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1995. 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 $75,000 2001 $ 90,000 2005 $110,000 2009 $140,000
1998 $80,000 2002 $ 95,000 2006 $115,000 2010 $145,000
1999 $80,000 2003 $100,000 2007 $125,000 2011 $155,000
2000 $85,000 2004 $105,000 2008 $130,000
OPTIONAL REDEMPTION
The Authority 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 Authority and in such order as the Authority shall determine and within a maturity by lot
as selected by the registrar. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City of Rosemount for which the City of Rosemount
will pledge its full faith and credit and power to levy direct general ad valorem taxes. The
proceeds will be used to finance site work improvements for development of a business park.
TYPE OF PROPOSALS .
Proposals shall be for not less than $1,607,108 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
. Page 22
c
,
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $16,300,
payable to the order of the Authority. 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 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 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, (iii) reject any proposal which the Authority determines to have failed to
comply with the terms herein.
REGISTRAR
The Authority will name the registrar which shall be subject to applicable SEC regulations. The
Authority 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 Authority and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint 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 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
Page 23
�
Authority for any loss suffered by the Authority by reason of the purchaser's non-compliance
with said terms for payment.
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
(612) 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 90 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 v�cith all Participating .
Underwriters of the Bonds for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
Dated June 7, 1994 BY ORDER OF THE PORT AUTHORITY
/s/Thomas Burt
Executive Director
Page 24
SPRINGSTED 12o south sixtn street
Swte 2507
PUBLIC FINANCE ADVISORS Minneapoiis, MN 55402-1800
i6I2) 333-9177
fax: (6121 349-5230
Home O�ce
85 East Seventh Pface 16655 West Bfuemound Road
Suite 100
Saint Paul, MN 55101-2143 Suite 290
(612) 223-3000 Brookfield, WI 53005-5935
Fax: (612) 223-3002 1414) 782-8222
Fax: (414) 782-2904
6800 College Boulevard
Suite 600
June 6, 1994 Overland Park, KS 66211-1533
(913) 345-8062
Fax: (913) 345-1770
Rosemount Port Authority i85o K Street NW
Suite 215
ROS@f110UC1t Clty COUt1CII Washington, DC 20006-2200
2875 145th Street West t2o2� a66-33aa
P.O. BOX 510 Fax: (202) 223•1362
Rosemount, MN 55068
Re: Special Assessment of Business Park improvement Costs
Dear Members of the Port Authority and City CounciL
The purpose of this letter is to briefly review the rationale for specially assessing the cost of the
public improvements serving the business park. In evaluating the preferred debt instrument for
financing the business park improvements, one alternative was the issuance of general
obligation improvement bonds - the type of bond issue the City normally issues for public
improvements. The problem with this altemative is the requirement that special assessment
payments must be pledged to the payment of the bonds and cannot be used for other purposes
of the Port Authority. In the event we experience a major land sale with a significant
prepayment of special assessments, that large sum of cash would be locked up in the
improvement bond fund. It would not be available for payment on the taxable bonds issued last
year to finance the land acquisition for the business park, for example. This lack of flexibility
and the difficulty in projecting future cash needs was cause to reject the use of improvement
bonds for the business park project.
By issuing the bonds as general obligation port authority bonds, there is no obligation to pledge
special assessment revenue to the payment of these bonds. However, the security that special
assessments offer to the City and the Port Authority is very desirable and should not be
rejected. In the future, it is likely the Port Authority will be asked by a purchaser to extend
financing terms for a portion of the sale price. If the Port Authority issues some form of no�e
evidencing this type of loan, it is very likely the proiect owner's primary lender will ask the Port
Authority to subordinate its interests to that lender's primary mortgage. Thus, the Port Authority
will have a second collateral position and is exposed to greater risk. If, however, the financing
terms are accomplished by allowing the purchaser to assume outstanding assessments against
the property, then the security for the "loan" is a tax lien on the property, which provides a very
secure position for the City and the Port Authority. For this reason, it is our recommendation to
specially assess the costs of the Phase I business park improvements by the City to the Port
Authority.
.--
Sincerely,;;=',r
,�' �' , .
David P. Drown
Vice President
plp
/Saint Paul Office
cc: John Miller, Economic Development Coordinator
Tom Burt, Administrator
Dan O'Neil, Springsted tncorporated