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HomeMy WebLinkAbout1991-105 CCR Member Celia Scott moved and Member _Philip Cohen seconded the motion that following resolution be adopted this 25th day of March, 1991. RESOLUTION NO. 91 -105 RESOLUTION PROVIDING FOR THE ISSUANCE AND PUBLIC SALE OF GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991B OF THE CITY OF BROOKLYN CENTER, MINNESOTA It is hereby resolved by the City Council of the City of Brooklyn Center (the "Issuer") as follows: 1. Findings, Authorization 1.1 It is hereby found and determined that it is necessary and expedient to the sound financial management of the Issuer for the Issuer to issue its general obligation tax increment refunding bonds in order to provide funds to refund a portion of the outstanding principal amount of the Issuer's General Obligation Tax Increment Bonds, Series 1985 (the "Prior Bonds the proceeds of which were used to pay public redevelopment costs of the Earle Brown Farm Redevelopment Project (the "Project 1.2 The Issuer, pursuant to Minnesota Statutes, Sections 469.174 through 469.179 has established a tax increment financing district within the Project pursuant to a tax increment financing plan (the "Plan"). The Issuer is authorized by Minnesota Statutes, Section 469.178 to (a) issue its general obligation bonds for the purpose of financing expenditures of the Issuer incurred pursuant to Minnesota Statutes, Section 469.176, subd. 4 for certain public improvements within the Project; and (b) to provide for the issuance of such bonds in the manner provided by, and subject to the limitations of, Minnesota Statutes, Chapter 475. 2. Sale of Bonds 2.1 In order to provide funds to refund the Prior Bonds, the Issuer shall issue its General Obligation Tax Increment Refunding Bonds, Series 1991B (the "Bonds") in the principal amount of approximately $3,915,000. The Issuer reserves the right to reduce or increase the principal amount of the Bonds as provided in the Official Terms of offering. Any excess of the purchase price of the Bonds over the minimum bid amount shall be credited to the debt service fund for the Bonds to pay interest first due on the Bonds. 2.2 The Bonds shall be issued, sold and delivered in accordance with the Official Terms of Bond Offering, attached hereto as Appendix A. 3. Award of Bonds, Advertisement, Public Hearin 3.1 The City Clerk of the Issuer is authorized and directed to cause advertisement for sealed bids for the purchase of the Bonds to be published in the manner required by Minnesota Statutes, Chapter 475, and in any additional publications as the City Clerk may determine to be suitable. Such advertisement for sealed bids shall be in substantially form attached hereto as Appendix B. RESOLUTION NO. 91 -105 3.2 The City Clerk is authorized to and directed to cause the notice of public hearing relating to the Issuance of the Bonds to be published in a newspaper of general circulation in the City on or before April 9, 1991. Such notice of public hearing shall be in substantially the form attached hereto as Appendix C. 3.3. Sealed bids for the Bonds will be received by the City Manager or his designee on Monday, April 22, 1991, at 10:30 a.m., Central Time, at the offices of Springsted, Incorporated, the Issuer's fiscal consultant. A public hearing regarding the issuance of the Bonds shall be held on April 22, 1991, at 7:00 p.m. Consideration for award of the Bonds will be by the City Council following such public hearing on the same date. Adopted by the City Council of the City of Brooklyn Center, Minnesota, this 25th day of March, 1991. Offered by: Celia Scott Seconded by: Philip Cohen Roll Call: Ayes'-Todd Paulson, Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Coher. Nays: none, Absent: none, Todd Paulson ayor City Manager (SEAL) I I III RESOLUTION NO. 91 -105 APPENDIX A OFFICIAL TERMS OF OFFERING $3,915,000* CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991 B Sealed bids for the Bonds will be received by the City Manager or his designee on Monday April 22, 1991, until 10:30 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. DETAILS OF THE BONDS The Bonds will be dated May 1, 1991, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1992. Interest will be computed on 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 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 30,000 2000 $610,000 2002 $795,000 1998 $460,000 2001 $700,000 2003 $785,000 1999 $535,000 The City reserves the right, after bids are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any increase will be in a total amount not to exceed $35,000; any reduction will be in a total amount not to exceed $54,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. OPTIONAL REDEMPTION The City may elect on February 1, 2000, and on any day thereafter, to prepay Bonds due on or after February 2001. Redemption may be in whole or in art and f in a at option of rY the o P Y part, P p P the City and in such manner as the City shall determine and within a maturity b lot as selected Y by the registrar. All prepayments shall 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. The proceeds will be used to refund the 1998 through 2003 maturities of the City's $5,250,000 General Obligation Tax Increment Bonds, Series 1985A. -i- RESOLUTION NO. 91 -105 TYPE OF BID Bids shall be for not less than $3,875,850 and accrued interest on the total principal amount of the Bonds. Bids 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 $39,150, payable to the order of the City. If a check is used, it must accompany each bid. If a Financial Sure Bond is P Y 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 bids. The Financial Surety Bond must identity each bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder 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 bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids 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 bid will be accepted. 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: (1) waive non substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds ual' q dy for issuance of any policy P oli of municipal bond insurance or commitment therefor at the option of the bidder, the purchase of an P p 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 oli after Bonds have been to the purchaser shall not constitute cause for failure or refusal n awarded by the purchaser to accept delivery on the Bonds. 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. i RESOLUTION NO. 91 -105 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 Holmes Graven, Chartered of 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 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 and the Official Bid Form 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 an Official Bid Form 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 160 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 executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid 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 March 25,1991 BY ORDER OF THE CITY COUNCIL /s/ Patti Page Deputy City Clerk RESOLUTION NO. 91 -105 APPENDIX B OFFICIAL NOTICE OF SALE $3,915,000* GENERAL OBLIGATION TAR INCREMENT REFUNDING BONDS, SERIES 19918 CITY OF BROOKLYN CENTER, MINNESOTA Notice is hereby given that sealed bids will be received at the offices of Springsted, Incorporated on Monday, April 22, 1991, until 10:30 a.m., Central Time, for the purchase of the City of Brooklyn Center, Minnesota (the "City") $3,935,000 General Obligation Tax Increment Refunding Bonds, Series 1991B (the "Bonds The bids will then be opened and recorded at such time. The City Council will consider the award of the Bonds at its meeting at 7:00 p.m. Central Time on the same date. The Bonds will be dated May 1, 1991, will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1992. The Bonds will be issued in integral multiples of $5,000 as requested by the Purchaser, and will be fully registered as to principal and interest. The Bonds will mature February 1 as follows: Year Amount Year Amount 1997 30,000 2001 $700,000 1998 460,000 2002 795,000 1999 535,000 2003 785,000 2000 610,000 *The City reserves the right, after bids are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any increase will be in a total amount not to exceed $35,000; any reduction will be in a total amount not to exceed $50,000; and any increase or reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. The Bonds maturing on or after February 1, 2001 will be subject to redemption, in whole or in part at par plus accrued interest, at the City's option on February 1, 2000, and on any date thereafter. If less than all of the Bonds are redeemed, Bonds will be redeemed in such manner as the City shall determine, and within a maturity by lot as selected by the registrar. The City will furnish the approving legal opinion of Holmes Graven, Chartered, of Minneapolis, Minnesota. A copy of the legal opinion will be reproduced on the printed Bonds. Copies of the detailed Official Terms of Offering and additional information may be obtained from the City Clerk or from Springsted, Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota. Dated: March 25 1991. BY ORDER OF THE CITY COUNCIL RESOLUTION NO. 91 -105 APPENDIX C CITY OF BROOKLYN CENTER, MINNESOTA NOTICE OF PUBLIC HEARING REGARDING ISSUANCE OF $3,915,000 GENERAL OBLIGATION TAR INCREMENT REFUNDING BONDS, SERIES 1991B Notice is herby given that the governing body of the City of Brooklyn Center, Minnesota (the "City will meet on April 22, 1991, at 7:00 p.m. at the City offices at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota, for the purpose of conducting a public hearing on a proposal that the City issue its General Obligation Tax Increment Refunding Bonds, Series 1991B (the "Bonds') to refund the outstanding principal amount of the Issuer's General Obligation Tax Increment Bonds, Series 1985 (the "Prior Bonds'). The proceeds of the Prior Bonds were used to pay public redevelopment costs of the Earle Brown Farm Redevelopment Project (the "Project") established by the Housing and Redevelopment Authority in and for the City of Brooklyn Center (predecessor to the Economic Development, Authority of Brooklyn Center (the "EDA")) pursuant to the Minnesota Municipal Housing Redevelopment Authority Act. Proceeds of the Prior Bonds were used specifically to finance the acquisition and rehabilitation of the Earle Brown Heritage Center and Inn on the Farm, owned an managed by the EDA, as to which Omega Foods, Incorporated, a South Dakota corporation, is, by contract, the exclusive caterer. The Earle Brown Heritage Center and the Inn on the Farm are located at 6155 Earle Brown Drive All persons interested may appear and be here at the time and place set forth above. Dated: Nbrc h 2 5 1991. BY ORDER OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER By /s/ Patti Page Deputy City Clerk i