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HomeMy WebLinkAbout1991-002 CCR1 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 91 RESOLUTION PROVIDING FOR THE ISSUANCE AND PUBLIC SALE OF $6,050,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1991A OF THE CITY OF BROOKLYN CENTER. MINNESOTA It is hereby resolved by the City Council of the City of Brooklyn Center, Minnesota (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 to issue its general obligation tax increment bonds in order to provide funds to pay capital and administrative costs of the Earle Brown Farm Redevelopment Project (the "Project established pursuant to Minnesota Statutes, Sections 469.124 to 469.134. 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 pay certain capital costs for public improvements within the Project in accordance with the Plan, the Issuer shall issue its General Obligation Tax Increment Bonds, Series 1991A (the "Bonds in the principal amount of $6,050,000. Any excess of the purchase price of the Bonds over the sum of $5,960,000 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. Meeting. 3.1 The City Manager 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 Manager may determine to be suitable. Such advertisement for sealed bids shall be in substantially the form attached hereto as Appendix B. 3.2 Sealed bids for the Bonds will be opened by the City at the offices of the City's fiscal consultant, SPRINGSTED, Incorporated, 85 East 1 RESOLUTION NO. 91 -02 Seventh Place, Suite 100, Saint Paul, Minnesota 55101 -2143, on Monday, February 11, 1991, at 11:30 a.m., Central Time. Consideration for award of the Bonds will be by the City Council at 7 p.m., Central Time, of the same day. Adopted by the City Council of the City of Brooklyn Center, Minnesota, this 2nd day of January, 1991. January 2, 1991 Date ATTEST: _A J` 0.J Pc Deputy Clerk Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Jerry Pedlar and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Jerry Pedlar, and Dave Rosene; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. 1 1 1 RESOLUTION NO. 91 $6,050,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1991A Sealed bids for the Bonds will be received by the City Manager or his designee on Monday, February 11, 1991, until 11 :30 A.M., Central Time, at the offices of SPAINGSTED Incorporated, 65 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. The Bonds will be dated March 1, 1991, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1991. 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: 1992 $250,000 1993 $350,000 1994 $350,000 1995 $350,000 1996 $375,000 OFFICIAL TERMS OF OFFERING DETAILS OF THE BONDS 1997 $375,000 1998 $375,000 1999 $400,000 2000 $400,000 OPTIONAL REDEMPTION The City may elect on February 1, 2000, and on any day thereafter, to prepay Bonds due on or after February 1, 2001. Redemption may be in whole or In part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par and accrued interest. SECURITY AND PURPOSE TYPE OF BID 2001 425,000 2002 425,000 2003 550,000 2004 $1,425,000 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 increment income generated from Development District No. 1. The proceeds will be used to finance eligible public costs associated with the Earle Brown Farm Tax Increment Project. Bids shall be for not less than $5,960,000 and accrued interest on the total principal amount of the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $60,500, payable to the order of the City. No bid will be considered for which said check has not been received. The City will deposit the check of the purchaser, the amount of which will RESOLUTION NO. 91 -02 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 bo withdrawn after the time set for receiving bids unless the meeting of the City scheduled for award of the bids 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 1/6 of There is no limit on the interest rate spread if bid in ascending order; however, no rate for any maturity shall be more than 0.5% lower than any prior rate. 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 10 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 Tess 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 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 qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the bidder, 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. 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 It the Ponds 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, Charted 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 1 RESOLUTION NO. 91 -02 payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the elificas 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 reasons 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 as required by 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 lnccrperated, 35 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (61 2) 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 Bld 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 240 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 (1) 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 January 2, 1991 BY ORDER OF THE CITY COUNCIL /S /Patricia A. Page Deputy Clark RESOLUTION NO. 91 -02 APPENDIX B OFFICIAL NOTICE OF SALE $6,050,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1991A CITY OF BROOKLYN CENTER, MINNESOTA Notice is hereby given that the City of Brooklyn Center, Minnesota (the "City will open sealed bids at the offices of the City's fiscal consultant, SPRINGSTED, Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 -2143, on Monday, February 11, 1991, at 11:30 a.m., Central Time, for the purchase of its $6,050,000 General Obligation Tax Increment Bonds, Series 1991A (the "Bonds The bids will then be opened and recorded. The City Council will consider the award of the Bonds at 7 p.m., Central Time, of the same day. The Bonds will be dated March 1, 1991, will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1991. 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 in the amounts and years as follows: Year Amount Year Amount 1992 250,000 1998 425,000 1993 350,000 1999 400,000 1994 350,000 2000 400,000 1995 350,000 2001 425,000 1996 375,000 2002 425,000 1997 425,000 2003 550,000 2004 1,425,000 Bonds due 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 order of maturity as the City shall determine and by lot within a single maturity. 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 Manager or from SPRINGSTED, Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 -2143. Dated: (Date Published) BY ORDER OF THE CITY COUNCIL