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HomeMy WebLinkAbout5.a. Set Bond Sale / Tax Increment Project.� • � S©G.JTia EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA HELD: APRIL 19, 1988 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Rosemount, Dakota County, Minnesota, was duly called and held at the City Hall in said City on the 19th day of April, 1988, at 7:30 o'clock P.M. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION 1988 - RESOLUTION PROVIDING FOR PUBLIC SALE OF $1,100,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1988A BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as follows: 1. It is hereby determined: (a) That the Housing and Redevelopment Authority in and for the City of Rosemount, Minnesota (the "Authority"), has undertaken or will undertake the following public improvements (the "Improvements") within or for the benefit of the Authority's Rosemount Redevelopment Project, pursuant to and in full conformity with Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469..174 to 469.179, inclusive: Estimated Project Costs Construction $1,050,000 Architectural, Administrative and Legal Fees 235,000 Total Cost $1,285,000 (b) That the Authority has requested that the City issue its bonds to provide financing for the improvements and that the Authority and the City enter into the tax increment pledge agreement respecting such bonds required by Minnesota Statutes, Section 469.178, Subdivision 2. (c) That it is necessary and expedient to the sound financial management of the affairs of the City and the Authority that the City issue its bonds pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, and Chapter 475, to provide financing for the Improvements. 2. It is hereby found, determined and declared that this City should issue $1,100,000 Taxable General Obligation Tax Increment Bonds, Series 1988A (the "Bonds"), to finance eligible project costs within the Rosemount Redevelopment Project, and $16,500 of such amount shall represent additional bonds issued pursuant to Minnesota Statutes, Section 475.56, as additional interest required to market the Bonds at this time: 3 This Council shall meet at the time and place specified in the form of notice hereinafter contained for the purpose of opening and considering sealed bids for, and award- ing the sale of, the Bonds. 4. The City Administrator -Clerk is herebyaifi-hor. i zed and directed to cause notice of the sale of the Bonds to be published in the official newspaper of the City and in Commercial West not less than ten days in advance of date of sale, as provided by law, which notice shall be in substantially the form set forth in Exhibit A attached hereto. 2 0 • 5. The terms and conditions of the Bonds and the sale thereof are fully set forth in the "Official Terms of Offering" attached hereto as Exhibit B and incorporated herein by reference. Adopted this 19th day of April, 1988. Rollan Hoke, Mayor ATTEST Stephan Jilk, Administrator -Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same; Whereupon said resolution was declared duly passed and adopted. 3 EXHIBIT A NOTICE OF BOND SALE $1,100,000 CITY OF ROSEMOUNT DAKOTA COUNTY MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1988A These Bonds will be offered Tuesday, May 17, 1988, at 7:30 P.M., Central Time, at the Rosemount City Hall in Rosemount, Minnesota. Consideration for award of the Bonds by the City Council will immediately follow the opening of bids. The Bonds will have a date of original issue of June 1, 1988, and interest will be payable February 1, 1989, and semiannually thereafter. The Bonds will be general obligations of the Issuer for which its unlimited taxing powers will be pledged. The Bonds will mature on February 1 in the amounts and years as follows: Years Amounts Years Amounts 1990 $ 75,000 1995 $110,000 1991 80,000 1996 120,000 1992 85,000 1997 130,000 1993 95,000 1998 145,000 1994 100,000 1999 -160,000 All bonds maturing on or after February 1, 1997, are subject to prior payment on February 1, 1996, and any interest payment date thereafter at a price of par and accrued interest. Sealed bids for not less than $1,083,500 and accrued interest on the principal sum of $1,100,000 will be accepted. An approving legal opinion will be furnished by Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota. The proceeds will be used to finance public redevelopment costs in the Rosemount Redevelopment Project of the Rosemount HRA. A-1 Bidders should be aware that the Official Terms of Offering to be published in the Official Statement for the Offering may contain additional bidding terms and information relative to the Issue. In the event of a variance between statements in this Notice of Bond Sale and said Official Terms of Offering the provisions of the latter shall be those to be complied with. Dated: April 19, 1988. BY ORDER OF THE CITY COUNCIL /s/ Stephan Jilk City Administrator -Clerk Further information may be obtained from the Issuer's Financial Advisor, SPRINGSTED INCORPORATED 85 East Seventh Place St. Paul, Minnesota 55101 (612) 223-3000 A-2 �xnit�t'r is FFICIAL TERMS, OF OFFERING $1,100,000 CITY OF ROSEMOUNT, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1988A Sealed bids for the Bonds will be opened by the City on Tuesday, May 17, 1988, at 7:30 P.M., Central Time, at the Rosemount City Hall in Rosemount, Minnesota. Consideration for award of the Bonds will immediately follow the opening of bids. DETAILS OF THE BONDS The Bonds will be dated June I, 1988, as the date of original issue, and will bear interest payable on February I and August I of each year, commencing February 1, 1989. Interest will be computed upon the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof as requested by the Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February I in the amounts and years as follows: 1990 95,000 1993 $120,000 1996 $160,000 1999 J75,000 80,000 1991 100,000 J 1994 $130,000 1997 85,000 1992 110,000 1995 $145,000 1998 OPTIONAL REDEMPTION The City may elect on February I, 1996, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1997. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. if only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shadI be at a price of par and 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 annual lease income and tax increment revenues from the City's Tax Increment Financing District within Development District No. 1. The proceeds will be used to finance eligible project costs within Development District No. 1. TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in gross income of the recipient for the United States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and bank excise taxes measured by net income. TYPE OF BID A sealed bid for not less than $1,083,500 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, aOrtified or cashier's check in the amount of .$11,000, payable to the order of the City, shall have been filed with the undersigned or SPRiNGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of 1%. No rate specified for a maturity shall exceed the rate specified for any subsequent maturity. Bonds of the some maturity shall bear a single rate from the date of the Bonds to the date of maturity. AWARD The Bonds will , be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non -substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bidswithoutcause, and, (iii) reject any bid 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 1:00 P.M., Central Time. Except as compliance with the " terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 25 copies of the Official Statement. Dated April 19, 1988 BY ORDER OF THE CITY COUNCIL /s/ Stephan Jilk Administrator -Clerk r STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT I, the undersigned, being the duly qualified and acting Administrator -Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council duly called and held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to calling a public sale for taxable general obligation tax increment bonds. WITNESS my hand as such Administrator -Clerk and the official seal of the City this day of April, 1988. City Administrator -Clerk (SEAL)