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HomeMy WebLinkAbout5.a. Redemption of General Obligation Public Facility Refunding Bods EXECUTIVE SUMMARY Port Authority Meeting Date: December 17, 2019 AGENDA ITEM: Redemption of General Obligation Public Facility Refunding Bonds AGENDA SECTION: New Business PREPARED BY: Eric Van Oss, Economic Development Coordinator, Kim Lindquist, Deputy Director AGENDA NO. 5.a. ATTACHMENTS: Resolution Providing for the Redemption of the 2010B Bonds APPROVED BY: LJM RECOMMENDED ACTION: Approval of the Resolution BACKGROUND On December 10th, 2010 the Port Authority issued General Obligation Public Facility Refunding Bonds (Series 2010B Bonds) in amount of $1,355,000. These bonds were refunding bonds issued in 2001 for City Hall improvements. The 2010 bonds are scheduled to mature on February 1st, 2021 and February 1st, 2022, in the principal amount of $300,000. The Series 2010B Bonds can be prepaid and redeemed on February 1st, 2020. By calling the bonds early the City will save a little over $16,000 in interest payments. The funding is currently available for the earlier date payoff. The bonds were issued by the Port Authority and therefore this action completes the work necessary for the bond call. There is not City Council action required at this time. RECOMMENDATION Approve the Resolution. 625392v1RS125-13 ROSEMOUNT PORT AUTHORITY DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 2019-01 RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING GENERAL OBLIGATION PUBLIC FACILITY REFUNDING BONDS, SERIES 2010B OF THE ROSEMOUNT PORT AUTHORITY BE IT RESOLVED By the Board of Commissioners of the Rosemount Port Authority, Dakota County, Minnesota (the “Authority”) as follows: 1. The Authority has issued its General Obligation Public Facility Refunding Bonds, Series 2010B, dated December 1, 2010 (the “Series 2010B Bonds”) in the original aggregate principal amount of $1,355,000. The Series 2010B Bonds maturing on February 1, 2021 and February 1, 2022, in the principal amount of $300,000 (the “Series 2010B Callable Bonds”), are subject to redemption and prepayment on any date at a price of par plus accrued interest. 2. It is determined that it is in the sound financial management of the Authority that the Series 2010B Callable Bonds, be prepaid and redeemed on February 1, 2020, or such later date for which proper notice of redemption may be given, and such bonds are hereby called for redemption on such date. 4. The Executive Director is authorized and directed to request that U.S. Bank National Association, the paying agent and bond registrar (the “Registrar”) mail the Notice of the Call for Redemption in substantially the form attached hereto as EXHIBIT A to the registered owners of each Bond to be redeemed at the addresses shown on the registration books kept by the Registrar. (The remainder of this page is intentionally left blank.) 2 625392v1RS125-13 ADOPTED this 17th day of December, 2019. Chair ATTEST: ________________________ Executive Director CERTIFICATION I hereby certify that the foregoing is a true and correct copy of a resolution presented to and adopted by the Board of Commissioners of the Rosemount Port Authority at a duly authorized meeting thereof, held on the 17th day of December, 2019, as disclosed by the records of said Authority in my possession. (SEAL) Executive Director Motion by: Seconded by: Voted in favor: Voted Against: Members Absent: RESOLUTION 2019-____ 625392v1RS125-13 A-1 EXHIBIT A NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION PUBLIC FACILITY REFUNDING BONDS, SERIES 2010B ROSEMOUNT PORT AUTHORITY DAKOTA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the Board of Commissioners of the Rosemount Port Authority, Dakota County, Minnesota, there have been called for redemption and prepayment on February 1, 2020 all outstanding bonds of the Authority designated as General Obligation Public Facility Refunding Bonds, Series 2010B, issued in the original aggregate amount of $1,355,000 dated December 1, 2010, having stated maturity dates of February 1, 2021 and February 1, 2022, totaling $300,000 in principal amount, and with the following CUSIP numbers: Year of Maturity Amount CUSIP 2021 $145,000 777602 FK4 2022 155,000 777602 FL2 The bonds are being called at a price of par plus accrued interest to February 1, 2020, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the main office of U.S. Bank National Association, in St. Paul, Minnesota, on or before February 1, 2020. U.S. Bank National Association Attention: Corporate Trust Operations 60 Livingston Avenue, 3rd Floor EP-MN-WS3C St. Paul, MN 55107 Important Notice: In compliance with the Jobs and Growth Tax Relief Reconciliation Act of 2003, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. Dated: December 17, 2019. BY ORDER OF THE BOARD OF COMMISSIONERS OF THE ROSEMOUNT PORT AUTHORITY