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HomeMy WebLinkAbout1985-190 CCRMember Rich Theis introduced the following resolution and moved its adoption: RESOLUTION NO. 85-190 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $5,250,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985A BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: 1. It is hereby determined: (a) The City has duly approved the establishment of a redevelopment project area (Project Area) by the Housing and Redevelopment Authority of the City of Brooklyn Center (HRA) pursuant to the provisions of Minnesota Statutes, Section 462.411 to 462.716 (Housing Act). (b) The City has duly approved a redevelopment plan (Plan) for the Project Area and a tax increment financing plan (TIF Plan) for redevelopment project (Project) in the Project Area and established a tax increment financing district (TIF District) within the Project Area, all pursuant to Minnesota Statutes, Sections 273.71 to 273.77 (TIF Act). (c) The TIF Plan identifies certain public redevelopment Project Costs (Costs) to be financed within the TIF District which costs are presently estimated to be as follows: Project Designation 6 Description Acquisition Redevelopment Maintenance Fund Administration Consultant /Legal Contingencies Subtotal Area -wide Streetscape Area -wide Improvements Subtotal Total Project Cost $2,920,000 2,000,000 500,000 239,000 30,000 501,900 $6,190,900 500,000 1,300,000 $7,990,900 5 d RESOLUTION NO. 85 -190 I Financing Costs: Issuance 40,000 Discount $19 per $1,000 99,750 Capitalized Interest 509,617 Total Costs $8,640,267 Less: Land Sales 650,000 CDBG 680,000 Assessments /MSA 1,300,000 Subtotal $6,010,267 Less: Investment Earnings/ Other 760,267 Total Bond Financing $5,250,000 (d) The HRA has requested the City to issue and sell its general obligation bonds (Bonds) to finance all or a portion of the Costs and has undertaken to enter into a tax increment agreement (TIF Agreement) with the City to provide revenue to pay debt service on the Bonds pursuant to Section 273.77, Subdivision 1 of the TIF Act. (e) It is necessary and desirable for the sound financial management of the City and the successful redevelopment of the Project Area that the City issue and sell the Bonds as requested by the HRA. (f) That it is necessary and expedient to the sound finan- cial management of the affairs of the City to issue $5,250,000 General Obligation Tax Increment Bonds, Series 1985A (Bonds) to provide financing for the Improvements. 2. In order to provide financing for the Improvements, the Citv shall therefore issue and sell Bonds in the amount of $5,150,250. Ir_ order to provide in part the additional interest required to market the Bonds at this time, additional Bonds shall be issued in the amount of $99,750. Any excess of the purchase price of the Bonds over the sum of $5,150,250 shall be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on such additional Bonds. The Bonds shall be issued and sold in accordance with the terms of the following Official Terms of Offering: RESOLUTION NO. 85 -190 3. The City Clerk- Manager is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Offering and to cause the abbreviated notice of sale attached hereto as Exhibit A, to be published in the manner required by law. The City Council shall meet on Monday, November 18, 1985, at 7:30 o'clock p.m. for the purpose of considering sealed bids on the Bonds and taking any other appropriate action. October 21, 1985 Date Mayor ATTEST: 6lerk The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 85 -190 OFFICIAL TERMS OF OFFERING $5,250,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985A Sealed bids for the Bonds will be opened by the City Manager or his designee on Monday, November 18, 1985, at 12:00 Noon, Central Time, at the offices of SPRINGSTED Incorporated, 800 Osborn Building, St. Paul, Minnesota. Consideration for award of the Bonds will be by the City Council at 7 :30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December I, 1985, as the date of original issue, and will bear interest payable on February I and August I of each year, commencing August I, 1986. 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 integral multiples of $5,000 of a single maturity, 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 of the calendar month next preceding the interest payment. The Bonds will mature February I in the amounts and years as follows: 50000 60,000 199 0 $185,000 1994 $430,000 1998 �7 2x02 1995 $510,000 1999 $100,000 1992 $295,000 1996 $595,000 2000 $800,000 2003 $140,000 1993 $360,000 1997 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 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. In addition the City will pledge anticipated tax increment income from the City's Earle Brown Farm Tax Increment Financing District. The proceeds will be used To finance the public costs associated with the Earle Brown Farm Redevelopment Project. TYPE OF BID A sealed bid for not less than $5,150,250 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, a certified or cashier's check in the amount of $52,500, 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 PE5OLUTION NO. 85 -190 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 for any maturity shall be more than 1.5% lower than any prior rate. No rate nor the net effective rate for the entire Issue of the Bonds shall exceed the maximum rate permitted by law. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. 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 bids without cause, 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 LeFevere, Lefler, Kennedy, Obrien Drawz, a Professional Association of Minneapolis, 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 of the day of settlement. 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. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the City, to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 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 50 copies of the Official tatement. ated October 21, 1985 BY ORDER OF THE CITY COUNCIL /s/ Gerald G. Splinter City Manager RESOLUTION NO. 85 -190 EXHIBIT A NOTICE OF BOND SALE $5,250,000 GENERAL OBLIGATION TAX INCREMENT BONDS,SERIES 1985A CITY OF BROOKLYN CENTER, HENNEPIN COUNTY, MINNESOTA These bonds will be offered for sale on sealed bids on Monday, November 18, 1985. Bids will be received by the City Manager until 12:00 noon at which time they will be opened and tabulated for consideration and award by the City Council at a regular meeting of the Council at 7 :30 P.M. on that date. The Bonds will be dated December 1, 1985, will bear interest payable semiannually on each February 1 and August 1 to maturity, commencing August 1, 1986, and will mature on February 1 in the amounts and years as follows: 1 Year Amount Year Amount 1990 50,000 1997 $360,000 1991 60,000 1998 430,000 1992 100,000 1999 510,000 1993 140,000 2000 595,000 1994 185,000 2001 690,000 1995 240,000 2002 795,000 1996 295,000 2003 800,000 Bonds maturing after February 1, 1996 will be subject to redemption on that date at par. No rate of interest nor the net effective rate of the issue may exceed the maximum rate permitted by law. Bidders must specify a price of not less than $5,150,250 plus accrued interest. A legal opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien Drawz, a Professional Association, Minneapolis, Minnesota. The proceeds of the Bonds will be used to finance a portion of the public redevelopment costs in a redevelopment tax increment financing district in the City. Bidders should be aware that the Official Statement to be published for the Bonds may contain additional bidding terms and information relative to the Bonds. In the event of a variance between statements in this Notice of Bond Sale and said Official Statement, the provi- sions of the latter shall be those to be complied with. BY ORDER OF THE CITY COUNCIL Dated: October 21, 1985. /s/ Gerald G. Splinter City Manager -Clerk RESOLUTION NO. 85 -190 L STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER I, the undersigned, being the duly qualified and acting City Manager -Clerk of the City of Brooklyn Center, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of a regular meeting of the City Council of said City held on Monday, October 21, 1985, with the original thereof on file in my office and the same is a full, true and correct copy thereof, insofar as the same relates to the issuance and sale of $5,250,000 General Obligation Tax Increment Bonds, Series 1985A, of the City. WITNESS My hand as such City Manager -Clerk and the corporate seal of the City this 25th day of October 1985. City Mdn Clerk City of l�klyn Center, Minnesota (SEAL)