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HomeMy WebLinkAbout1983-135 CCRMember Bill Hawes introduced the following resolution and moved its adoption: RESOLUTION NO. 83 -135 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $930,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 BE IT RESOLVED By the City Council of the City of Brooklyn Center, Hennepin County, Minnesota (City) as follows: Section 1. Findings. 1.01. The Housing and Redevelopment Authority of the City of Brooklyn Center (HRA) has established a housing development project (Project) and has proposed a housing development plan and program (Housing Plan) for the Project. 1.02. The HRA has also proposed and adopted a Tax Increment Financing Plan (TIF Plan) for a Housing Tax Increment District (TIF District) to provide financing for the Project. 1.03. The Housing Plan, the Project, the TIF Plan and the TIF District have been adopted by the HRA to provide assistance for a housing project in the City generally known as the Brookwood Division Housing Development District. 1.04. This Council has pursuant to Minnesota Statutes, Section 462.411 to 462.716, (Housing Act) and Minnesota Statutes, Section 273.71 to 273.78, (TIF Act) conducted the required public hearings and has approved the Project, the Housing Plan, the TIF Plan and the TIF District. 1.05. The HRA has requested the City to issue and sell its General Obligation Tax Increment Bonds of 1983 (Bonds) to provide all or a portion of the financing necessary for the Project. 1.06. It is hereby found that it is necessary and desirable to the sound financial management of the City and the achievement of its housing goals and those of the HRA that the City issue the Bonds. Section 2. Project Costs: Sale of Bonds. 2.01. The public development costs of the Project as identified in the TIF Plan are presently estimated to be as follows: Land Acquisition (net of resale) $338,460 Surveying 7,500 Legal 43,270 Public Utilities 316,600 Interim Interest 43,000 Miscellaneous 4,870 Capitalized Interest 140,000 Costs of Issuance 20,000 Total $913,700 2.02. In order to provide financing for the costs of the Project, the City shall therefore issue and sell Bonds in the amount of $913,700. In 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 $16,300. Any excess of the purchase price of the Bonds over the sum of $913,700 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 Bond Sale: RESOLUTION NO. 83 -135 2.03. The City Manager -Clerk is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Bond Sale 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, September 26, 1983, at 7:00 o'clock p.m. for the purpose of considering sealed bids on the Bonds and taking any other appropriate action. September 12, 1983 Date Mayor Ir r/ r ATTEST: Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 83 -135 EXHIBIT A NOTICE OF BOND SALE $930,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 CITY OF BROOKLYN CENTER, MINNESOTA HENNEPIN These bonds will be offered for sale on sealed bids on Monday, October 17, 1983. 1 Bidders should be aware that the Official Statement of Offering to be published in the the Official Statement for the Offering may contain additional bidding terms and information relative to the Issue. In the event of a variance between statements in this Notice of Bond Sale and said Official Terms of Offering, the provisions of the latter shall be those to be complied with. f BY 0 ER OF THE C Y C t /s/ GerAdkip inter City Manager -Clerk Bids will be accepted by the undersigned until 7:00 P.M., Central Time at the City Hall, when they will be opened and acted upon by the City Council. The Bonds will be dated November 1, 1983, will bear interest payable semiannually on each February 1 and August 1 to maturity, commencing February 1, 1984, and will mature on February 1 in the amounts and years as follows: YEAR AMOUNT YEAR AMOUNT 1986 5,000 1992 -1995 $100,000 1987 55,000 _1996 125,000 1988 60,000 1997 60,000 1989 -1991 75,000 Bonds maturing after February 1, 1992, will be subject to redemption and prepayment on that date and thereafter at par plus accrued inter- est. 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 $913,700 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 public development costs in a housing tax increment financing district in the City. Dated: September 12, 1983. Further Information: Springsted Incorporated 800 Osborn Building St. Paul, Minnesota (612) 222 -4241 RESOLUTION NO. 83 -135 OFFICIAL TERMS OF OFFERING $930,000 CITY OF BROOKLYN CENTER, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 Sealed bids for the Obligations will be opened by the City Council on Monday, October 17, 1983, at 7:00 P.M., Central Time, at the City Hall in Brooklyn Center. Consideration of the bids for award of the Obligations will immediately follow the opening of the bids. DETAILS OF THE OBLIGATIONS The Obligations will be dated November I, 1983 and will bear interest payable on February I and August I of each year, commencing February 1, 1984. The Obligations will be general obligations of the Issuer for which the Issuer will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the Issuer will pledge incremental taxes from the City's fax Increment Financing District for the Brookwood Division Housing Development District. The Obligations will be in integral multiples of $5,000, and fully registered as to principal and interest. The proceeds will be used to finance the public costs involved in the development of the City's above referenced Tax Increment Financing District. The Obligations will mature February I, in the amounts and years as follows: 5,000 1986 55,000 1987 60,000. 1988 100,000 1992 -1995 125,000 1996 60,000 1997 75,000 1989 -1991 1he Issuer may elect on February 1, 1992, and on any interest payment date thereafter, to prepay Obligations due on or after February I, 1993. Redemption may be in whole or in part of the Obligations subject to prepayment. If redemption is in part, those Obligations remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Obligations having a common maturity date are called for prepayment the specific Obligations to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. TYPE OF BID A sealed bid for not less than $913,700 and accrued interest on the total principal amount of the Obligations 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 $9,300, payable to the order of the Issuer, shall have been filed with the undersigned or SPRINGSTED Incorporated, the Issuer'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 Issuer as liquidated damages in the event the Purchaser fails to comply with the accepted bid. No bid shall be withdrawn after the time set for opening bids, unless the meeting of the Issuer scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Obligations having been made. Rates offered by Bidders shal I be in integral multiples of 5/ 100 or 1/8 of I No rate for a maturity shall exceed the rate specified for any subsequent maturity by more than 1.0 No rote nor the net effective rate for the entire Issue of the Obligations shall exceed the t oximum rate permitted by law. Obligations of the same maturity shall bear a single rate from e date of the Obligations to the date of maturity- F The Obligations will be awarded to the Bidder offering the lowest dollar interest cost to be r RESOLUTION NO. 83 -135 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF BROOKLYN CENTER 1 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, September 12, 1983, with the orig 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 $930,000 General Obli- gation Tax Increment Bonds of 1983, of the City. WITNESS My hand as such City Manager -Clerk and the corporate seal of the City this 12th 'day of September 1983. City l anag City of Bro lyn Center, Minnesota (SEAL)