HomeMy WebLinkAbout4.b. Review of Resolution Authorizing Advertising of Bond Sale for Acquisition of the Abbott Property CITY OF ROSEMOUNT
EXECUTIVE SUN�!'ARY FOR ACTION
PORT AUTHORITY COMMISSION MEETING DATE: SEPTEMBER 21, 1993
AGENDA ITEM: RESOLUTION AUTHORIZING AGENDA SECTIONs
ADVERTISING OF BOND SALE FOR ABBOTT ACQUIS . OLD BUSINESS
PREPARED BY: JOHN MILLER, AGEND��� A �
ECONOMIC DEVELOPMENT COORDINATOR IVf �
ATTACHI�iENTS: RESOLUTION, BOND FINANCING AP
STRATEGY, RECOMMENDATIONS FROM SPRINGSTED INC.
As I indicated to you in a staff report for your September 7 meeting, the
port authority has three or four steps it must go through to get bond money
to pay Roy and Laura Abbott. The first of these is approval of a
resolution authorizing advertisement of the bond sale. That resolution has
been drafted and is attached for your consideration.
You will note that the bond amount is $575, 000, an amount that includes
about two years of capitalized interest, all of Springsteds costs to date,
and the usual fees associated with the sale. The bids would be received
Tuesday, October 5 .
David Drown from Springsted will be at the meeting to provide more specific
detail .
RECOI�IENDED ACTION: Motion to approve Resolution 1993 -
authorizing advertisement of a bond sale for purchase of land for the
Rosemount Business Park.
PORT AUTHORITY ACTION:
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� CITY OF ROSEMOUNT
�. �� EXECIITIVE SIIN�lARY FOR ACTION
PORT AUTHORITY COMMISSION MEETING DATE: SEPTEMBER 21, 1993
AGENDA ITEM: RESOLUTION AUTHORIZING AGENDA SECTION:
ADVERTISING OF BOND SALE FOR ABBOTT ACQUIS. OLD BUSINESS _
PREPARED BY: JOHN MILLER, AGENDA��� A � �
ECONOMIC DEVELOPMENT COORDINATOR ! IVI
ATTACffi�SSNTSz RESOLUTION, BOND FINANCING AP
STRATEGY, RECONIl��lENDATIONS FROM SPRINGSTED INC.
As I indicated to you in a staff report for your September 7 meeting, the .
port authority has�'three or four steps it must go through to get bond money
to pay Roy and Laura Abbott. �,The first of these is approval of a
resolution authorizing advertisement of the bond sale. That resolution has
been drafted and is attached for your consideration.
�You will note that the bond amount is $575, 000, an amount that includes
about two years of capitalized interest, all of 8pringsteds costs to date, ,
and the usual fees associated with the sale. The bids would be received ,
Tuesday, October 5.
David Drown from Springsted will be at the meeting to provide more specific
detail.
RECONIlKENDED ACTION: Motion to approve Resolution 1993 -
authorizing advertisement of a bond sale for purchase of lan.d for the
Rosemount Business Park.
PORT AUTHORITY ACTION:
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'VTA FACSIMILE
Ms. Susan M. Wa1sh '
Port A,uthority of the
C�ty of Rosemount
P.Q. Box 510
Rasemount, Minnesota 5506$-0510
R�: Rosemount Port Authority,Minnesota-$580,000 Taxable G�nerat Qbligation
� . Bonds, Series 199,�E
Dea�r Ms. WaIsh:
EncIosed is a copy of the l�esolution Providing for the Competitive Negotiated Sa1c
for the above referenced bonds. I understand that tlte resoIu�ion will be considcrtd at your
meeting on September 21, 199�. I have provided Nancy I,angness at Springsted
Incorparated with mult�ple execution copies of the resolution.
If you have any questions, please give me a call.
Very truzy yours
/
�i rly K. Cz ch
Par egal
KKC/crzag
Enclosure
cc: Nancy La.ngness
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. ROSEidOpDIT
PI�RT AUTHORITY
bAKOTA COUNTY� lLYNNEBQTA _
RES�LU'CI01�1 1993 -
A AE�OLOTION FRGVIDING FOR � COKPETITIPE I�tBGdTIA'rED BALS
O� $S8Q�000 TAXA$LE GENERAL OBLxGATZQN $ONDB�
BERIES 19938
�R$AB, the Board of Commis�iohers of the Rpsemaur�t Port
Authvrity, Minriesota, has her�tofore determined that it is
riecessary and eXpedient to issue its $580, 040 Taxable General
Obligatzon B�ns�s, Series �993E (the '�Bonds"j tv finance the casts
of land acquisition for developm�nt af � business park; and
i�E1��A8, the Aut�ority has xetained Sprinqsted Incvrporated, in
. Saint Pau�, Minnesota ("Springstedh) , as its independent
financial advisor and is therefore authorized to s�ll these
c�bligations by a coingetit�ve negotiated sale in accordance with
Minnesota St�tutes, Section 475. 60, Subdivision 2 (9) ; and "
NO�P, , TkYEREFORE, BS tT RESOLqED by the Board og Commission�rs of
the port Author�ty of the C'lty of Rosemount, Minnesota, as
follows:
1. Autho=iz�tioi'1; Findinas. The Board of Commiss�aners hereby
authariae� Springsted to soliait bids �or th� competitive
negotiated salc� oP the Bands.
2. Meet'n • Bid O enin . 'I'his Board of Conaxaissioners shall
meet at thE time and p2ace speaified in the Terms of
Proposal attached hereto as Exhibit A for the purpase Qf
cansid�ering sealed bids fvr, and awarding the sale o�, the
Bonds. Th� Executive Director, or his designee, shall open
bids at the time and place specified in �uch Terms o�
�rciposal.
3 . Terms of Propesal. The terms and canditiQns of th� Bdz�d�
and the negotiativn thereof a�� fully set forth in the
"Terms of Propossl" attached hereto as Exhibit A and h�reby
�pp�ov�d and made a part her�of.
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4. afficiaZ Statement. In connecti�n with said competi�ive
neqotiated sale, th� �xecutive Director and other afficers
or employe�s of the Authority are hereby authorized t� -
cooperate with Sp�ingsted and gartieipate in the preparation
of an of�icial statement for the Bonds, and ta execute and
ae7.iver it on behalf of the Authoritiy upon Yts completian.
ADOPT�D this�� day Qf Septemb�r, 2993.
z�
Chair
ATTEST:
Executive Director
Mati�n by: ---- �_ Seconded by:
vated �� favar:
vot�c3 Against:
24TB7S
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Exhibit A
THE AUTHaRITY HAS AUTtiOF1REp SPI�iNt�S1'�R7 INCt��PORATBp 7'O NEGOTu4TE Tiiis
ISSUE OiV ITS BEHALF. pROFGSA�S WtI.F..pE R�C�IVED aN THE FflLLOW1NG BAStS:
TERMS O�PROPCSAL
�58Q�t700
PORT�►1lTHOt�ITY dR THE CRY dP ROSEMQUNT, MINNEBQTA
TAXA�LE GENERAL C��l{GAt1�JN��NDS.S�RIES 1993E
Propos�ls tor the BondS w1il be r�e�v+�d on Tuesday, October S� �993� u�! 1:00 P.M., Certh'at
Time, at the aff�s of Spnngssted ir�corpareted. 8� East Seventh Pia�ce� Sutte �0�, S�tnt Paut,
i►tinnesot2�, after which#irne they witi be opened snd tabui�t�d. Cansiti6rati4n ft�2�ward of the
�nnds witi be by the Au�iority at�"3�f'.M.� Certtrat Ttme, of the same d�y.
. �D�i�tLS 4F THE B�NDS
Tl�ts Bonds will bQ dat�d November 1� 19�93, as the date af oriyina) issue, and wiA bea�irtterest
PaYable an Fearua�y 1 au,d August 1 ot eaan year, rx�mmer�dng August i� 1984. Ir�terest witi
be cornp�rted on the basis dt a 36o-day yeaz o! twvive �Isy monch�. The 6ands wNl be
issued in the dencaminatlon nf�5.00p each� ar In inte�ral mu�lples thareoi� as requ�ted by the
purchaser.and lully regisbered es to prinapa!and i�e�rsst. Pr�ncxps(wilt be payabte at the mal�
corparate a�Ce of the reglstrar anc3 irtte�eat ort each aond wlU be pay�tble� by thedc or draft 4t
� U1A tagislraz ma1(�d to tne regist�red t1o{der thereof att ttte ho(der's address as it appears on tt�e
books t�f tt�e reg'�strar as of ttte dose of buslness on the 15th day af#he irttm�di�y pr�oeding
morlt�t.
The�ands will matute Febru�ry 1 in the yeais and arnauttt�s as taqows:
i sss �o,aoa a.000 �,+�ao 2oaa �.000 2ov� �So.apo
1997 $�Q,Q00 2001 �35�OOQ 2005 ,000 a008 �000
1998 �3p,t7Q0 2002 �40�oC�0 20Q6 �50�000 2009 �,Q00
i 998 $35.AOQ 2G03 $40�904
QPIIONAI.p�OEMPTfON
Tha Autho� may etQot an February 1� 2�, and on any day thereafter, to prepay Bar�ds due
on or after Febf�u�ry 1� 2004. RadomR�� maY i�� in wClole or N� part and ff m part. a# the
option of the Auihocity �rid (n suc� otder as tho Authority sha{I de�terrnina artid witriin a matuwity
by lot as seiectad bY the reg'�trar. w� prepayment� �heit pe at a �ce ai par plurs arxr�,ad
�rrt�rast
SECURI'TYAND PUEtPCfSE
The 8ond5 Will be getteral obtigatlons of the Authority'hx'whictt the Gny wfll pEsdg�its tv)t falth
and credit and powrer to �ovy direGt gener�i ad vatorsm taxes, The proceeds will be used for
the purpose bf Iand a�equis�tion tor developmert!et e business parK.
T�IXABI1tTY C�F INTEREST
The frttarest ta ba paid an the Bonds Is i�Gudabte fn �ross income of tha reapient for United
States and �atste of Mi�nesvta income tax purpases, errd is subjact to M�nnesots Corp�rate
artd banEc exaise taxes m8asur�d by net ir�C�ome.
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7YFE�tJF F'ROPQSALS
Propo52�is 6haq bs for not tQss th�n ',C57'1,3� and aGcrued interest on tfie total princlpsl
amount of the Bonds. Propps�ls ,ahalf be accc�rnpanled by a Gc7od FaFth pepQsit("pepp,�it"y �n ^
tt�e furm of a certified or cashier's check ar a Finan�lal Surety Ba�d tn the smau� af S5�800,
payabla ta the o�der of tt,�Auti�orlty, tf a chedc is used. it must accompany each propasal. 1t
a Finsnd�!Surety 6ond is u�ed, �t must ba trom an ir�utance company ��eense� to �sue such
a bond in the State of Minnesota, and praapprovad by th� Autktority. Sucn bond must be
submitted to Springsted Incorporated pri�>t' to th� cpening ot the ptopos�ls. The FinanCial
Surety eortd must identity each ur�dennrrit�r whos� Deposit is guarsnte�d by such Fnar�cia!
Surety Band. If the Bands are awarded to an undervvriter using a Finar�cia) SureEy Band, ttlsn
tt�at purchaser Is raquired to subrnit its pepaslt to 5prin�sted Incorparated !n �e �iorm of a
cett'rfied or cashier's �tteck c�r wire tra�►sta� �s insUvcted by S�arfngstad lcx:�rporated not iat+ar
than 3:30 P.M., C�t'�tra!Tm'te, on th8 rlsxt bu¢Inegs d�y 100awlns the award. 1�$ud� Deppsit b
r�ot received by that t(mo, tha Fin�rtaal St,ksty �ond m�y C�e drawn by the Authority to satlsfy
� the depastt reQuirement me �arrty wm depasit the chedc ot the purcnaser�tfie amcwnt ot
whiah wit{ be dedc�ted at sett{ernent and no krterest vrOt �tacrua to the purc;fisser. 1n tho enrot7t
the purcFtsser isits tp Comply with the aCCept�sd Rr'opas�l� safd amourrt will bs retain�q C�y q1�
Authbrity. IVo propasai aan be witr►drawn or sm�nded after th�#me set far r�oeivir,g proposal�
uni+�ss the m�e�;ng of tha Authority sahedulsd for award t�tha pac►ds is adjoumed, recessed,
or continued to aryo�t�ter date wtthout award oi ths Sonds h2�vtnq been m�Ce. Rate� shafl be{r�
�rrtegr�l rt�ultipies ci 5J100 or 1/8 M 196. Rates must be it�ascendtng order. Bonds of tfte same
maturity shaA bear a single rate from the date of the Bonds ta the c3ate ot rrtafi�urity, No
candi�ona!p�oposets wilt be dCCBpt�d.
AWARD
The �onds wiil be awardad on tha pas;s of ihe law�st tntere�t rsts ta be determined or1 a true
tnteresc cost (�Icy basts, The aumar�lly�s compertation of the interest rate of each praposal, irr
accol'dsnce with custom�ry prectlee,wil{be aontrafling.
The Authority wili reserve the rlght ta: (ij wahre not�-substarltive Infatmat�ies of auiy propo�a! ar
of matters retat�ng to tt�e racelpt ot pfopos�ls �r�td aw�rd af tttg Bonds, ti�) reject a11 proposats
withaut c��rse. and, (ii� reject arly praposal wFuch the Authority detemlines to h21v� tatfed t0
compty with the t�rms herein.
REGISfRAR
The Auti�►ority wi[f name the �egis2rar whicn shmtl be subje�t ta appficabie SEC regutatio�s. The
Autharity wii) pay for ihe servicas ot the registrar,
CUS�P NUMBERS
(t tha Bonds qualffy fvr assignmertt ot CUS1P number,� such numbers wi!( be ptintod on tfte
Bonds� but neither the !a{ture ic? prtnt such numf�er5 on any 8and 11or arty errot with respect
tf'teretp will constitute t�uge 1or f�llure or re�fi.rsa] by the purchaser to �c�ept delivery of tt1e�
Bonds. Tha CUSIP SprviCe Bu�esu cha,rge 1p�the ass{gnmellt of GUSIP identtficatipt� �umbers
shaA be pafd by the purchaser.
SFtTt_EMENT
H'�rtt�ln 4o d�ys iollowing the da#�af their award. the 9onds witl be d�livered wlthaut cx,st;o ttle
purehaser at a p(aoe mutually satisfactory to the Autharity and the purchaser. Oelivery witf be
subject to receipt by the purchaser af an app�oving t�gal apinion of Briggs and Margan,
profession�l Associaticn, of Sai�t P�.►I �nd Minne�poiis� Minn9sQta, which opinion vr�l( be
p�nted on the Bor�c(s� and cf c�stQmary ctosing papers. incluatng a na�itig�tion cert'rfi�ate. ort
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ttte date of se#ttement payment for'the Bonds shail be made In federsl� or equivalent, iunds
which st�a11 be reoeived at the�ft'ices�f the qutt�orlty oc its des�gnee not later than t 2:00 Ndon,
Cenval T7me. F�ccwpt a,� compl'�ar►c� with the tem�e pf p�ymorrt for the Band� sY►�11 havo beo�
rnade Imposslbie by actian at the Authorlty, or its agQnts. the purcheser straA be lisble ta �e �
Authofiiy#t►r arry (oss suffered by th� Ae�thot'ity by raason of the purchaser's nan-compiianc�
witi�said tprms Tor payrnettt. •
OFFiCIA{.STAT�MENT
The Authorit�r has authar9ze� the prep,aration af on Official Etatement ero�taining pertinerrt
�rtformation rela�ve'tn the Bands, ar�d said 4tHci�t 8t�tarneM wiit senre as a ne�riy-ftna! Of(iciat
Statemant witfiin the meaning of Rule i 5c2-12 at the Securnies �t1d EkChange� CommlSstQt�.
Fot' COpleB af tfte Officia! Statement or for any addl�on�l irrformatkm prior to sa(e, ar,y
P�►�P��+e purcha�se� i$ reterred to the Flnsnciat AdvEsor to th� Authority, SprMgst�c(
incorporated, 85 East Sevqrnh Ptsce, Suite lot�, S�irrt P�►ul, Minnasota 55101, tele�hOne
(6't 2)22:i-30�Q.
The Cxficial St�tament,when futthar supplem�r�ted by an adrtandum or�►ddQnda specifjring t!�»�
ma#urity da�es, Principal �mounts end intvrest raba� of the Bvntfs, tt�gethar wfdti otFwr
ir�fom►ation requtr+�d by law, shalt constitute � "�'tnal OtfiCial S�tem�rtC' of #he Author with
respeGt t�a th� Borids, as tf'tat term is de6ned in Rule 15c2-12. By awardtng tha Bontls to any
underwrtter ar underwriting syneicate submlt�ng a proposa!therefvr. the Authority agr�es lhat,
no m�re than ssven b+�siness days atter the date oi such avYa►d� n shalt prc�ride vvithout cost to
iha seniar manag�ng unden�rt�iter af qte Syndicate to whiG�h the Bo�et��re awarded 25 aopie�s at
�e 4ff�Ctal Statemettt snd the addendum or add�anda desc�ib�d above. The Authority
desi$natas tha senior managir,g underwriter cf the syndicafe to which th� Bpnds ara �warded
as it� agent iar purposes at d',stributtng copies c�t the �artal Vfficiat Stat�meRt tv eactl
ParGcipati�g tficlerv+rrttar. N�y �ndermrriter detivering a proposal with respec� to the �ands
agrees thereby that N tts proposa! is xtccepted by the Autttorlty () it sl�ai{ aacept auch
des(9natlb� artd {m R shalt erner into a contractu�l retatfanship wit�t all Perticlp�tit�g
Undetunfters ot VtB 8onds far purposes of �ssuring the r�oeipt t�y each such Partidp�ting
Undervvriter of the Fitta!Ofttc�al Statemsnt
Dateci September 2i� 1993 BY pRpER O�'Y'HE PoRT AUTHQRtTY
/s���er�
Execu�ve D�rectac
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Recommendations
For
Rosemount Port Authority, Minnesota
$5$0,000
Taxable General Obligation Bonds, Series 1993E
�
,
Study No. R0704G3
SPRINGSTED Incorporated
September 17, 1993
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� � S P Fi 1 N GST E D i 2o so�m s�Xm st�eec
� � `, ; ,+ Suite 2507
�,�_-• PUBUC FINANCE ADVISORS Minneapolis, MN 55A02-1800
(612) 333•9177
Fax: (612) 349-5230
Home Office
85 East Seventh Place 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: t414) 782-2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
fax: (913) 345-1770
September 17, 1993 isoo K street rvw
Suite 831
Washington, DC 20006-2200
(202) 466•3344
Fax: (202) 223-1362
Chair Person Edmund Dunn
Board of Commissioners
Mr. John Miller, Executive Director
Rosemount Port Authority
Mayor Edward B. McMenomy
Members, City Council
Mr. Stephen Jilk,Administratar
Mr. Jeff May, Finance Director
City of Rosemount
2875 145th Street West
Rosemount, MN 55068
Re: Recommendations for the Issuance of $580,000 General Obligation Bonds,
Series 1993E
We respectfully request your consideration of the recommendations for the issuance of above-
mentioned Bonds in accordance with the attached Terms of Proposal. The Bonds are being
issued by the Port Authority pursuant of Minnesota Statutes, Chapters 469 and 475. These
recommendations will discuss the finance plan for the issuance of Bonds to finance the
acquisition of land. We will also discuss the plan for financing the public improvements, but
recommend the issuance of debt for improvements be accomplished at a later date.
a
,
The Business Park Plan of Developmerrt
The Rosemount Port Authority, with the approval of the City Council, proposes to acquire land
and proceed with phased development of a business park. The Authority has entered into an
agreement for the purchase of an 80-acre site located generally southeast of the intersection of
County Road 42 and Truck Highway 3. The land purchase is expected to close on or before
November 5, 1993. Installation of streets and utilities within the business park will be
accomplished in phases. The initial phase (Phase I-A) improvements will be limited to
extending sanitary sewer, water and drainage to that portion of the Park adjacent to County
Road 42, and constructing a short entrance roadway in the Park. The overaU plan for the Park
is currently being reviewed and refined, and adjustments in projected costs may be necessary.
It is intended for the overall project to be self-supporting, with combined revenues from land
sale and special assessments to be adequate fo�all debt service obligations.
Rosemount Port Authority, Minnesota
' September 17, 1993
Public Improvements
The "Business Park Concept Plan for Section 32 of the City of Rosemount," prepared by the
engineering consuiting of SEH and dated January 13, t 992, projects a total cost of completing
all public improvements within the Park of $6,855,000. SEH is in the process of revising this
plan and developing a phasing plan for the completion of improvements. By proceeding with
the improvements in smailer phases, with successive phases commenced only when most of
the parcels served by the prior phase have been sotd, the Authority will minimize total net debt
outstanding, and significantly reduce the likelihood that supplemental revenue support will be
necessary.
The initial phase (Phase i-A) improvements are planned to be limited to extending sanitary
sewer, water and drainage to that portion of the Park adjacent to County Road 42, and
constructing a short entrance roadway into the Park. Preiiminary costs for these
improvements, including City overhead costs are:
Sanitary Sewer $ 92,000
Watermain 101,000
Storm Drainage 136,000
Street facilities 1�,0�
Street Lighting 28,�
Landscaping 17,000
CSAH 42 improvements 84.0�
Totals $580,000
It is proposed that the costs of each phase of improvements serving fhe business park will be
assessed to benefding properties in accordance with the City's standard assessment policies.
Speci�c detaiis of the assessment methodology will be addressed in the overall phasing plan
for improvements, which is not available as of the date of these recommendations.
We recommend that the financing of Phase I-A improvements be accomplished through the
issuance of tax-exempt Generai Obligation Port Authority Bonds, Series 1994A, to be issued in
early 1994, when revised cost estimates and assessment methodology has been completed.
While the 1994 Bonds are intended to be payabie from special assessments levied upon
benefited property within the business park, we do not recommend that assessments be
specificaily pledged to the debt service fund for payment of the bonds. Since the Authoriiy will
be responsible for assessment payments on unsold lots within the business park, aliowing
prepaid assessment revenues generated at the time of land sale to accrue as a general
revenue to the Authority, rather than pied,�ing all prepayments to a specific debt service fund '
where they cannot be accessed, will m�ke these revenues availabls to make assessment
payments on unsold property. This approach wiit increase the flexibiliiy of the Authority in
meeting its averall debt obligations without supplementai sources of revenues. An assignment
of assessment agreement between the City and the Authority must be entered into at that time
since the Authority cannot levy special assessments.
The Bonds
The net proceeds of $500,000 wi8 finance the purchase of 80 acres of land for the business
park. The composition of the Issue is as follows:
Land Acquisition $500,000
Issuance Costs 28,400
Capitalized Interest (15 months) 42,900
Underwriter's Discount Allowance 8,700
Total $580,000
Page 2
r
� Rosemount Port Authority, Minnesota
t September 17, 1993
The Bonds wili be general obligations of the Authoriiy and the full faith and credit of the City will
be pledged to their payment. It is anticipated that the revenues necessary for debt service
payments on the Bonds will derive predominantly from the sale of land in the developed
portions of the business park. Appendix I provides a projection of the rate of land sale
necessary to generate revenue sufficient to cover annual debt service. Assuming unit land
prices of$.15 per square foot in 1993 and t994{which covers costs oniy), $.30 in 1995, $.40 in
1996, and $.50 thereafter, average annual land sales of 3.00 acres per year wiil generate
adequate revenues. This analysis also assumes that the sale of ponding easements serving
future residential development north of County Road 42 and other drainage areas wiil generate
an additional$50,000 in revenue by 1995.
The Authority will be required to certify future annual levies to the County for payment of the
debt service. These levies may be canceiled or abated annualty as land sales occur. Land
sale revenue is projected to be first available in 1995, in time to cancei the 1995/96 levy.
Therefore, the Authority wiil either have to spread a levy in 1994, payable in 1995, or use
availabie cash to cancel that levy.
Appendix II is our recommended maturity schedule for the Bonds. The Bonds wilt be dated
November 1, 1993 and will rnature annually on February 1, 1996 through 2009. Capitalized
interest has been included in the issue size to pay interest due through February 1, 1995,
which will eliminate the necessity of making a 19931� levy.
We have included an ailowance for underwriters' discount of $8,700, or $15 per $1,000 bond.
The discount provides the underwriters with ail 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 Bonds maturing February 1, 2004 through 2009 be cailable on or after
February 1, 2003. This will allow the Bonds to be redeemed early if land sales come in ahead
of projected or if other circumstances makes it desirable. �
We recommend an application be made to Moody's Investors Service of New York for a rating
of the Bonds. We wiil provide Moody's with the necessary data upon which they wiU make their
rating analysis and make the application on your behalf. The rating fee will be billed directly to
the Authority by Moody's.
We recommend this issue be offered for sale on Tuesday, October 5, 1993, with proposals to
be received in the offices of Springsted Incorporated at 1:00 P.M., whe�e they wili be verified
and checked for accuracy. The option o� Sure-Bid will again be available to vnderw�iters, as
described in the Terms of Proposai attached to these recommendations. A representative of
Springsted Incorporated wili be present at the Authority's 7:30 P.M. meeting that evening to
provide results and recommendations as to the acceptability of the proposals received.
Respectfully submitted,
..���
SPRINGSTED Incorporated
mmc
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. APPEND1X 1
R
Rosemount Port Authority
Business Park Development Project
Land Sale and Other Revenue Projections
(Excludes Special Assessment Revenue)
Land Sale Other
Projected Totai Ponding Local Total
Acres Square Ft Annuai Easement Effort Annual
Yr Sold ` Price Revenue Revenue "TIF" Revenue
19931 0.00 � 0.15 � 0 ' 01 0 ; 0 �
1994' 0.00 0.15 '� 0 ; 0 ; 0 ! 0 ;
t 995( 3.00 � 0.30 ' 39,204 � 50,000 I 0� 89,204 ;
1996 i 3.00 ; 0.40 : 52,272 ; ; 0 ! �^ 5 2
1997; 3.00 ! 0.50 ' 65,340 ; � � 0 ; r 65,34�
1998' 3.00 , 0.50 65,340 i ' 0 ! 65,340 i
1999 i 3.00 ; 0.50 : 65,340 ; 0 �' � 65,340 ;
2000; 3A0 ; 0.50� 65,340 ! 0 ; ; 65,340 :
2001 ; 3.00 i 0.50 i 65,340 � i � 0 i �_6
2002! 3.00 ' 0 5Q ; 65,340 I i ! 0 � 65,340 ;
2003! 3.00 ' 0. ; 65,340 ; 0 � '���65,340
2004� 3.00 I 0.50 65,340 � 0 i � 65,340�
2005 i 3.00 ! 0.50 65,340 ; � 0� ; 6�5,340 �
2006, 3.00 � 0.50 65,340 �-�_ 0 ! ; 65,340 i
2007I 3.00 i 0.50 65,340 ' � 0 ; 65,340 I
2008 i 3.00 I 0.50 65,340 ! ; 0 � 65,340
2009 i 3.00 ; 0.50 65,340 �-� 0 i� I W,340 i
2010 t 3.00 ( 0.50 65,340 � � i Q i I 65,340 �
2011 ; 3.00 i 0.50 65.340 � p j 65,340-; ,
20t2i 03 0 0.5Q� fi5,340 0 i 65,340 �
20 t 3� 3.00 i 0.54 65,340 , I 0 j 65,34Q
e
57.00 1,202,2�6 50,000 0 1,252,256
Prepared by SPRINGSTED,Inc.
9/t 6193
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__ _ _ .----- -..,_._._n.. __ __.�� .�
.�. _ ... __� w „ .._�.nT . ___�:.�r�:_.�r,.-�---...-... r...-.�_.�_.�
City af RosemouM Port Authority, Minnesota
�580,000 Generai Obligation Bonds, Series 1993 �
� For Land Acquisition
Dated: 11- 1-1993
Mature: 2- 1 Annual
Firstlnterest: 8- 1-1994 Projected Surplus
? Total Capital- Net Revenue (Deficit)
Year of Year of Principal ized Debt 105°k From Over
Levy Mat. Principal Rates Interest &Interest Interest Service of Total Appendix I Col.8
� (�) t2) (3) (4) (5) (6) !�) (e� �s> ��o> ���}
�
� 1993 1995 0 0.00°,6 42,840 42,840 42,900 0 0 0 60
� 1994 1996 30,000 4.20°�6 34,272 64,272 0 64,272 67,486 0 (64,272)
! 1995 1997 30,000 4.60°,6 33,012 63,012 0 63,012 66,163 89,204 28,192
1996 1998 30,000< 4.95°,6 31,632 61,632 0 61,632 64,714 52,272 (9,360)
; 1997 1999 35,000 5.25°,6 30,147 65,147 0 65,147 68,404 65,340 193
� 1998 2000 35,000 5.40°k 28,309 63,309 0 63,309 66,474 65,340 2,031
; 1999 2001 35,000 5.65°,6 26,419 61,419, 0 61,419 64,490 65,340 3,921
� 2000 2002 40,000 5.85°�6 24,441 64,441 0 64,441 67,663 65,340 899
� 2001 2003 40,000 6.05°,6 22,101 62,101 0 62,101 65,206 65,340 3,239
2002 2004 45,000 6.15% 19,681 64,681 0 64,681 67,915 65,340 659
2003 2005 45,OOI1> 625% 16,913 61,913 0 61,913 65,009 65,340 3,427
; 2004 2006 50,000 6.40°� 14,100 64,100 0 64,100 67,305 65,340 1,240
{ 2005 2007 50,000 6.50% 10,900 60,900 0 60,900 63,945 65,340 4,440
� 2006 2008 55,000 6,60°,6 7,650 62,650 0 62,650 65,783 65,340 2,690
2007 2009 60,000 6.70°� 4,020 64,020 0 6A,020 67,221 65,340 1,320
TOTA�S: 580,000 346,437 926,437 42,900 883,597 927,778 960,216
�
� Bond Years: 5,590.00 Annual Interest: 346,437 Composition of Issue:
Avg.Maturity: 9.64 Plus Discount: 8,700 Land Acquisition 500,000
Avg.Annual Rate: 6.197°h Net Interest; 355,137 Issuance Costs 28,400
T.I.C.Rate: 6.359� N.LC.Rate: - 6.353% Capitalized interest (15 m� 42,900
Underwriters Discount 8,700
Interest rates ate estimates;changes may cause significant alteratior►s of this schedule.
i The actual undervvriter's discount bid may also vary. 580 000
� ___
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� ' Prepared by:SPRINGSTED Incorporated F:�DATA�R�ROSEPA.WKt
�
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�
' THE AUTHORITY HAS AUTHORIZED SPRINGSTED 1NCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
5��,�
ROSEMOUNT PORT AUTHORIIY, MINNESOTA
TAXABLE GENERAL OBLIGATION BONDS, SERIES 1993E
Proposals for the Bonds will be received on Tuesday, October 5, t993, until 1:00 P.M., Centrai
Time, at the offices of Springsted incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they wili be opened and tabulated. Consideration for award of the
Bonds will be by the Authority at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds wili be dated November 1, 1993, as the date of original issue, and wili bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1994. interest will
be computed on the basis of a 360-day year of tweive 30-day months. The Bonds wili be
issued in the denomination of$5,�0 each, ar in integral multipies thereof, as requested by the
purchaser, and fuily registered as to principai 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 wili mature February 1 in the years and amounts as foilows:
1996 $30,000 2000 $35,000 2004 $45,000 2007 $50,000
1997 $30,000 2001 $35,�0 2005 $45,000 2008 $55,000
1998 $30,000 2002 $40,000 2006 $50,000 2009 $60,000
1999 $35,000 2003 $40,000 .
OPTIONAL REDEMPTION
The Authority may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due
on or afte� February t, 2004. Redemptipn may be in whole or in part and � in part, at the
option of the Authority and in such orde� as the Authority shali determine and within a maturity
by lot as selected by the registrar. All prepayments shail be at a price of par plus accrued
interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the Authority for which the City wili piedge its full faith
and credit and power to levy direc# general ad valorem taxes. The proceeds wili be used for
the purpose of land acquisition for development of a business park.
TAXABI�ITY OF INTEREST
The interest to be paid on the Bonds is inciudable in gross income of the recipient for United
States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate
and bank excise taxes measured by net income.
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,
t
TYPE OF PROPOSALS
Proposals shall be for not less than $571,300 and accrued interest on the total principal
amount of the Bonds. Proposais 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 amourrt of $5,800,
payable to the order of the Authoriiy. tf 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 proposais. The Financial
Surety Bond must identity each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an undenhrriter using a Financiai Surety Bond, then
that purchaser is required to submit its Deposit to Springsted incorporated in the form of a
certi�ed or cashier's check o� wire transfer as instructed by Springsted fncorporated not later
than 3:30 P.M., Central Time, on the next business day foilowing 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 wiil deposit the check of the pu�chaser, the amount of
which wiU be deducted at settlement and no interest wiil 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 adjoumed, recessed,
or continued to another date without award of the Bonds having been made. Rates shall be in
integrai muitiples of 5/100 or 1/8 of 196. 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 maturiiy. No
conditionai proposais wil! be accepted.
AWARD
The Bonds will be awarded on the basis of the {owest interest rate to be de#ermined on a true
interest cost (TIC) basis. The Authority's computation of the interest rate of each proposal, in
accordance with customary practice, wiil be controlling.
The Authority wiil reserve the right to: {i) waive non-substantive informalities of any proposai or
of matters relating to the receipt of proposais and award of the Bonds, (ii) reject ail proposais
without cause, and, (iii) reject any proposal which the Authori#y determir�es to have failed to
comply with the terms herein.
REGISTRAR
The Authority will name the registrar which shall be subject to applicabie SEC regulations. The
Authority will pay fo�the services of the registrar.
CUSIP NUMBERS
ff the Bonds qualify for assignment of CUSIP numbers such numbers wiil be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto wiil 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 piace mutually satisfactory to the Authority and tfie purchaser. Delivery wili 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 #he Bonds, and of customary closing papers, inciuding a no-litigation cert�cate. On
Page T
�
the date of settiement payment for the Bonds shaii be made in federal, or equivalent, funds
which shall be received at the o�ices 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 sha0 have been
made impossibie by action of the Authority, or its agents, the purchaser shall be liable to the
Authority for any loss suffe�ed by the Autho�ity by reason of the pu�chaser's non-compliance
with said terms for payment.
OFFICIAL STATEMENT I�
The Authority has authorized the preparation of an O�icial Statement containing pertinent '�
information rela#ive to the Bonds, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securi#ies 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 Piace, Suite 100, Saint Paul, Minnesota 551 Qi, telephone
(612) 223-3000.
The Official Statement,when further suppiemented 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 undervvriting syndicate submitting a proposal therefor, the Authority agrees that,
no more than seven business days after the date of such award, it shail provide without cost to
the senior managing undervvriter of the syndicate to which the Bands are awarded 25 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 Finai Official Statement to each
Pa►ticipating Underwriter. Any underwriter delivering a proposal with respect to the Bonds
agrees thereby that if its proposai is accepted by the Authority (i) ifi shall accept such
designation and (ii) it shall enter into a contractual relationship with ail Participating
Underwriters of the Bonds for purposes of assuring the receipt by each such Participating .
Underwriter of the Final Of�icial Statement.
Dated September 21, 1993 BY ORDER OF THE PORT AUTHORITY
Is/John Miiler
Executive Director
6
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