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HomeMy WebLinkAbout1995-201 CCR1 1 1 Extract of Minutes of Meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Brooklyn Center, Hennepin County, Minnesota, was held at the City Hall in the City on Monday, September 11, 1995, commencing at 7:00 o'clock P.M. The following members of the Council were present: Myrna Kragness, Kristen Mann, Debra Hilstrom, and Kathleen Carmody; and the following were absent: Barb Kalligher; The following written resolution was presented by Member Kathleen Carmc moved its adoption the reading of which had been dispensed with by unanimous consent: BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota, (City) as follows: =93848 BR291-:51 RESOLUTION NO. 95 201 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $4,560,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1995A 1. It is hereby determined that: (a) the City has duly established a Tax Increment District (District) pursuant to Minnesota Statutes, Sections 469.124 through 469.134 (Act) (b) the City has duly established tax increment financing district no. 3 (TIF District) within the District pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (TIF Act); 1 1 0.3793848 BR291 -151 RESOLUTION NO. 95 -201 (c) the City is authorized by section 469.178 of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development costs (Costs) related to the District as identified in the development plan (Plan) for the TIF District. (d) the Plan lists the following Costs to be financed by the general obligations: Public Improvements Development Costs Purchase of Commercial Sites (Highway 252) 900,000 Hotel /Restaurant Project Costs 200,000 Purchase of Commercial Sites (Brooklyn Boulevard) 2,500,000 Administrative Expenses 400,000 Subtotal $4,000,000 Allowance for Capitalized Interest 460,000 Allowance for Discount 54,720 Allowance for Issuance Costs 45,280 Total Tax Increment Bond Issue $4,560,000 (e) it is necessary and expedient to the sound financial management of the affairs of the City to issue $4,560,000 Taxable General Obligation Tax Increment Bonds, Series 1995A (Bonds) to provide financing for the Costs; 2. To provide financing for the Costs, the City will issue and sell Bonds in the amount of $4,505,280. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $54, 720. The excess of the purchase price of the Bonds over the sum of $4,505,280 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Proposal: RESOLUTION NO. 95 -201 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: 1999 $225,000 2000 $265,000 2001 $330,000 2002 $330,000 2003 $330,000 TERMS OF PROPOSAL $4,560,000 CITY OF BROOKLYN CENTER, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1995A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, October 10, 1995, 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 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223 -3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223 -3000 or fax (612) 223 -3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one -hour period prior to the time of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellevue, Washington 98004, telephone (206) 635 -3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated November 1, 1995, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1,1996. Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will mature February 1 in the years and amounts as follows: 2004 $350,000 2005 $360,000 2006 $360,000 2007 $385,000 2008 $385,000 2009 $400,000 2010 $415,000 2011 $425,000 Proposals for the Bonds may contain a maturity schedule providing for any combination of serial obligations and term obligations so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. 1 1 RESOLUTION NO. 95 -201 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Kray Co. as nominee of Midwest Securities Trust Company "MSTC Chicago, Illinois, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of MSTC and its participants. Principal and interest are payable by the registrar to MSTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of MSTC will be the responsibility of MSTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with MSTC. 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. OPTIONAL REDEMPTION The City may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due on or after February 1, 2006. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If Tess than all Bonds of a maturity are called for redemption, the City will notify MSTC of the particular amount of such maturity to be prepaid. MSTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. MANDATORY REDEMPTION Any term obligations issued shall be subject to mandatory sinking fund redemption in part prior to their scheduled maturity dates on February 1 of certain years, as more fully described in the Details of the Bonds section herein, at a price of par plus accrued interest to the date of redemption. 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 tax increment revenues from Tax Increment District Number 3. The proceeds will be used for various economic development projects within the City. TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable 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. TYPE OF PROPOSALS Proposals shall be for not less than $4,505,280 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 $45,600, 1 1 1 RESOLUTION NO. 95 -201 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 cashiers 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. In order to designate term obligations, the proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form. All principal payments scheduled to be made in and before the year specified as the "Last Year of Serial Maturities" shall be designated as maturity amounts of serial obligations; all principal payments scheduled to be made after the year specified as "Last Year of Serial Maturities" and through each year specified under "Years of Term Maturities" shall be designated as mandatory sinking fund redemptions of term obligations maturing in the year(s) so designated. 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. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. 1 1 1 RESOLUTION NO. 95 -201 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 Kennedy Graven, Chartered of Minneapolis, Minnesota, 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 any Toss suffered by the City by reason of the purchaser's non compliance with said terms for payment. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2- 12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds. OFFICIAL STATEMENT The 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 180 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 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 September 11, 1995 BY ORDER OF THE CITY COUNCIL Is/ Cam Andre Acting City Manager 1 1 1 RESOLUTION NO. 95 -201 3. Springsted Incorporated is authorized and directed to negotiate the Bonds in accordance with the foregoing Terms of Proposal. The City Council will meet at 7:00 o'clock P.M. on Tuesday, October 10, 1995, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Kristen Mann and upon vote being taken thereon the following members voted in favor of the motion: Myrna Kragness, Kristen Mann, Debra Hilstrom, and Kathleen Carmody; and the following voted against: none, whereupon the resolution was declared duly passed and adopted. DJ 93848 3R291 -151 1 1 RESOLUTION NO. 95 -201 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER I, the undersigned, being the duly qualified and Acting City Manager of the City of Brooklyn Center, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, September 11, 1995, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the issuance and sale of $4,560,000 Taxable General Obligation Tax Increment Bonds, Series 1995A of the City. WITNESS My hand as Acting City Manager and the corporate seal of the City this ll th day of September 1995. Acting City Manager City of Brooklyn Center, Minnesota DJR93848 3ZZ291 -151 (SEAL)