HomeMy WebLinkAbout1983-162 CCRMember Rich Theis introduced the following resolution and
moved its adoption:
RESOLUTION NO. 83 -162
RESOLUTION AWARDING THE SALE OF $930,000 TAX INCREMENT BONDS
OF 1983 FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR
EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED BY THE CITY COUNCIL of the City of Brooklyn Center, (City),
Minnesota, as follows:
1. Sale of Bonds.
1.01. The bid of Norwest Securities
(Purchser) to purchase $930,000 General Obligation Tax Increment Bonds of 1983,
(Bonds) of the City described in the notice of sale thereof is hereby found and
determined to be the highest and best bid received pursuant to duly advertised
notice of sale and shall be and is hereby accepted, such bid being to purchase the
Bonds at a price of $913,725.00 plus accrued interest to date of delivery, all
Bonds to bear interest as follows:
Year of Maturity Interest Rate
1986 6.50%
1987 6.75%
1988 7.00%
1989 7.20%
1990 7.40%
1991 7.70%
1992 7.90%
1993 8.10%
1994 8.30%
1995 8.50%
1996 8.75%
1997 9.00%
The sum of $25.00, being the amount bid in excess of $913,700, shall be credited
to the Debt Service Fund hereinafter created. The City Finance Officer is directed
to retain the good faith check of the Purchaser pending completion of the sale and
delivery of the Bonds and is directed to return the checks of the unsuccessful
bidders forthwith.
1.02. The City shall forthwith issue and sell the Bonds in the principal
amount of $930,000 dated November 1, 1983, the Bonds being fully registered and
issued in the denomination of integral multiples of $5,000, numbered no. 1 and upward,
bearing interest as above set forth, all interest payable February 1, 1984, and
semi annually thereafter on August 1 and February 1 in each year, and which Bonds
mature serially on February 1 in the years and amounts as follows:
RESOLUTION NO.
r�
83 -162
Year Amount
1986
5,000
1987
55,000
1988
60,000
1989
75,000
1990
75,000
1991
75,000
1992
100,000
1993
100,000
1994
100,000
1995
100,000
1996
125,000
1997
60,000
The City may elect on February 1, 1992 and on any interest payment date
thereafter, to prepay Bonds due on or after February 1, 1993. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemp-
tion 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 named in Section 2. All
prepayments shall be at a price of par and accrued interest.
Section 2. Form: Registration.
2.01. Registered Form. The Bonds shall be issuable only in
fully registered form. The interest thereon and, upon surrender of
each Bond, the principal amount thereof shall be payable by check or
draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond shall be dated
as of the last interest payment date preceding the date of authenti-
cation to which interest on the Bond has been paid or made available
for payment, unless (i) the date of authentication is an interest
payment date to which interest has been paid or made available for
payment, in which case such Bond shall be dated as of the date of
authentication, or (ii) the date of authentication is prior to
February 1, 1984, in which case such Bond shall be dated as of
November 1, 1983. The interest on the Bonds shall be payable on
February 1 and August 1 in each year, commencing February 1, 1984, to
the owner of record thereof as of the close of business on the
fifteenth day of the immediately preceding month, whether or not such
day is a business day.
2.03. Registration. The City shall appoint, and shall maintain,
a bond registrar, transfer agent, authenticating agent and paying
agent (Registrar). The effect of registration and the rights and
duties of the City and the Registrar with respect thereto shall be as
follows:
(a) Register. The Registrar shall keep at its principal
corporate trust office a bond register in which the Registrar
shall provide for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be
registered, transferred or exchanged.
RESOLUTION NO. 83 -162
(b) Transfer of Bonds. Upon surrender for transfer of any
Bond duly endorsed by Lite registered owner thereof or accompanied
by a written instrument of transfer, in form satisfactory to the
Registrar, duly executed by the registered owner thereof or by an
attorney duly authorized by Lite registered owner in writing, the
Registrar shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a
like aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however, close the books for
registration of any transfer after the fifteenth day of the month
preceding each interest payment date and until such interest
payment date.
(c) Exchange of Bonds. Whenever any Bonds are surrendered
by the registered owner for exchange the Registrar shall authen-
ticate and deliver' one or more new Bonds of a like aggregate
principal amount and maturity, as requested by the registered
owner or the owner's attorney in writing.
(d) Cancellation. All Bonds surrendered upon any transfer
or exchange shall be promptly cancelled by the Registrar and
thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is
presented to the Registrar for transfer, the Registrar may refuse
to transfer the same until it is satisfied that the endorsement
on such Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized.
The Registrar shall incur no liability for the refusal, in good
faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may
treat the person in whose name any Bond is at any time registered
in the bond register as the absolute owner of such Bond, whether
such Bond shall be overdue or not, for the purpose of receiving
payment of, or on account of, the principal of and interest on
such Bond and for all other purposes, and all such payments so
made to any such registered owner or upon the owner's order shall
be valid and effectual to satisfy and discharge the liability
upon such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or
exchange of Bonds, the Registrar may impose a charge upon the
owner thereof sufficient to reimburse the Registrar for any tax,
fee or other governmental charge required to be paid with respect
to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroved Bonds. In case
any Bond shall become mutilated or be destroyed, stolen or lost,
the Registrar shall deliver a new Bond of like amount, number,
maturity date and tenor in exchange and substitution for and upon
cancellation of any such mutilated Bond or in lieu of and in
substitution for any such Bond destroyed, stolen or lost, upon
RESOLUTION NO. 83 -162
the payment of the reasonable expenses and charges of the Regis-
trar in connection therewith; arid, in the case of a Bond
destroyed, stolen or lost, upon filing with the Registrar of
evidence satisfactory to it that such Bond was destroyed, stolen
or lost, and of the ownership thereof, and upon furnishing to the
Registrar of an appropriate bond or indemnity in form, substance
and amount satisfactory to it, in which both the City and the
Registrar shall be named as obligees. All Bonds so surrendered
to the Registrar shall be cancelled by it and evidence of such
cancellation shall be given to the City. If the mutilated,
destroyed, stolen or lost Bond has already matured or been called
for redemption in accordance with its terms it shall not be
necessary to issue a new Bond prior to payment.
2.04. Appointment of Initial Registrar. The City hereby appoints
First National Bank of Minneapolis, Minneapolis, Minnesota, as the initial
Registrar. The Mayor and the Manager are authorized to execute and
.deliver, on behalf of the City, a contract with said Registrar. Upon
merger or consolidation of the Registrar with another corporation, if
the resulting corporation is a bank or trust company authorized by law
to conduct such business, such corporation shall be authorized to act
as successor Registrar. The City agrees to pay the reasonable and
customary charges of the Registrar for the services performed. The
City reserves the right to remove the Registrar upon 30 days' notice
and upon the appointment of a successor Registrar, in which event the
predecessor Registrar shall deliver all cash and Bonds in its posses-
sion to the successor Registrar and shall deliver the bond register to
the successor Registrar. 'On or before each principal or interest due
date, without further order of this Council, the Finance Director
shall transmit to the Registrar moneys sufficient for the payment of
all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds shall
be prepared under the direction of the Manager and shall be executed
on behalf of the City by the signatures of the Mayor and the Manager,
provided that all signatures may be printed, engraved or lithographed
facsimiles of the originals. In case any officer whose signature or a
facsimile of whose signature shall appear on the Bonds shall cease to
be such officer before the delivery of any Bond, such signature or
facsimile shall nevertheless be valid and sufficient for all purposes,
the same as if he had remained in office until delivery. Notwith-
standing such execution, no Bond shall be valid or obligatory for any
purpose or entitled to any security or benefit under this Resolution
unless and until a certificate of authentication on such Bond has been
duly executed by the manual signature of an authorized representative
of the Registrar. Certificates of authentication on different Bonds
need not be signed by the same representative. The executed certifi-
cate of authentication on each Bond shall be conclusive evidence that
it has been authenticated and delivered under this Resolution. When
the Bonds have been so prepared, executed and authenticated, the
Manager shall deliver the same to the Purchaser thereof upon payment
of the purchase price in accordance with the contract of sale hereto-
fore made and executed, and the Purchaser shall not be to
see to the application of the purchase price.
RESOLUTION NO. 83 -162
2.06. Form of Bonds. The Bonds shall be printed in substan-
tially the following form:
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF BROOKLYN CENTER
GENERAL OBLIGATION TAX INCREMENT BOND OF 1983
Date of
Rate Maturity Original Issue CUSIP
November 1, 1983
No.
KNOW ALL MEN BY THESE PRESENTS that the City of Brooklyn Center,
a duly organized and existing municipal corporation in Hennepin County,
Minnesota (City), acknowledges itself to'be indebted and for value received
hereby promises to pay to
or registered assigns, the principal sum of on the maturity date
specified above, with interest thereon from the date hereof at the annual
rate specified above, payable February 1 and August 1 in each year, com-
mencing February 1, 1984, to the person in whose name this Bond is regis-
tered at the close of business on the 15th day (whether or not a business
day) of the immediately preceding month. The interest hereon and, upon
presentation and surrender hereof, the principal hereof are payable in
lawful money of the United States of America by'check or draft by
Minnesota, as Bond Registrar,
Authenticating Agent and Paying Agent, or its designated successor under
the Resolution described herein. For the prompt and full payment of such
principal and interest as the same respectively become due, the full faith
and credit and taxing powers of the City have been and are hereby irrevoc-
ably pledged.
The City may elect on February 1, I992, and on any interest payment
date thereafter, to prepay Bonds of this issue due on or after .February 1,
1993. Redemption may be in whole or in part of the Bonds subject to pre-
payment. 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.
RESOLUTION NO. 83 -162
(Additional provisions of this Bond are contained on the reverse
hereof and such provisions shall for all purposes have the same effect as
though fully set forth in this place.)
This Bond shall not be valid or become obligatory for any purpose or
be entitled to any security or benefit under the Resolution until the
Certificate of Authentication hereon shall have been executed by the Bond
Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Brooklyn Center, Hennepin County,
Minnesota, by its City Council, has caused this Bond to be executed on its
behalf by the facsimile signatures of the Mayor and City Manager and has
caused this Bond to be dated as of the date set forth below.
Dated: October 17, 1983
CITY OF BROOKLYN CENTER, MINNESOTA
pity a r Mayor,
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution
mentioned within.
By
Authorized Representative
[Reverse of the Bond]
This Bond is one of an issue in the aggregate principal amount of
$930,000, all of like original date and tenor, except as to serial number,
maturity date, interest rate and redemption privilege, issued pursuant to
Resolution No. adopted by the City Council on October 17, 1983 (the
Resolution), for the purpose of providing money to finance the public costs
of the development of a Housing Development Project in a Tax Increment
Financing District in the City, pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota
Statutes, Sections 273.71 to 273.78, the Minnesota Tax Increment Financing
Act, and the Home Rule Charter of the City, and is payable primarily from
tax increments resulting from increases in assessed valuation of real prop-
erty in the District pursuant to a tax increment agreement executed by the
City and the Housing and Redevelopment Authority of the City of Brooklyn
Center, but constitutes a general obligation of the City and, to provide
moneys for the prompt and full payment of said principal and interest as
RESOLUTION NO. 83 -162
the same become due, the full faith and credit of the City is hereby
irrevocably pledged, and the City Council will levy ad valorem taxes, if
required for such purpose, which taxes may be levied on all of the taxable
property in the City without limitation as to rate or amount. The bonds of
this series are issued only as fully registered bonds in denominations of
$5,000 or any integral multiple thereof, of single maturities.
As provided in the Resolution and subject to certain limitations set
forth therein, this Bond is transferable upon the books of the City at the
principal office of the Bond Registrar, by the registered owner hereof in
person or by his attorney duly authorized in writing upon surrender hereof
together with a written instrument of transfer satisfactory to the Bond
Registrar, duly executed by the registered_ owner or his attorney; and may
also be surrendered in exchange for Bonds of other authorized denomina-
tions. Upon such transfer or exchange the City will cause a new' Bond or
Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any tax, fee or
governmental charge required to be paid with respect to such transfer or
exchange.
The.City and the Bond Registrar may deem and treat the person in whose
name this Bond is registered as the absolute owner hereof, whether this
Bond is overdue or not, for the purpose of receiving payment and for all
other purposes, and neither the City nor the Bond Registrar shall be
affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of
Minnesota and the Home Rule Charter of the City to be done, to exist, to
happen and to be performed preliminary to and in the issuance of this Bond
in order to make it a valid and binding general obligation of the City in
accordance with its terms, have been done, do exist have happened and have
been performed as so required, and that the issuance of this Bond does not
cause the indebtedness of the City to exceed any constitutional, statutory
or charter limitation of indebtedness.
(Form of certificate to be printed on the reverse side of each Bond,
following a full copy of the legal opinion.)
I certify that the above is a full, true and correct copy of the legal
opinion rendered by bond counsel on the issu.� of Bonds of the City of
Brooklyn Center, Minnesota, which includes th yvi in and dated as of the
x
date of delivery of and payment for the Bond d
Ci. Tanager
RESOLUTION NO. 83 -162
The following abbreviations, when used in the inscription of the
face of this Bond, shall 'be construed as though they were written out in
full according to applicable laws or regulations:
TEN COM as tenants UNIF GIFT MIN ACT Custodian
in common (Cust) (Minor)
TEN ENT as tenants
by entireties under Uniform Gifts to Minors
JT TEN as joint tenants with
right of survivorship and Act
not as tenants in common (State)
Additional abbreviations may also be used though not in the
above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and
transfers unto
the within Bond and all rights thereunder, and
does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept for registration of
the within Bond, with full power of substitution in the premises.
Dated:
Notice: The assignor's signature to this assignment must
correspond with the name as it appears upon the
face of the within Bond in every particular, with-
out alteration or any change whatever.
Signature Guaranteed:
f
Signature(s) must be guaranteed by a national bank or trust company or by a
brokerage firm having a membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless
the information concerning the assignee requested below is provided.
13
RESOLUTION NO. 83 -162
Name and Address:
(Include information for all joint owners if
the Bonds are held by joint account)
Please insert social security or
other identifying number of assignee
Section 3. Security: Payment.
3.01. The Bonds or additional bonds similarly authorized
and issued shall be payable from the General Obligation Tax Increment
Bonds of 1983 Debt Service Fund "Debt Service Fund hereby created,
and the proceeds of any general taxes hereafter levied, and all tax
increments from the Tax Increment Financing District (the "Housing
District in which the Housing Development Project financed by the
Bonds is located received by the City from the Housing and Redevelop-
ment Authority of the City of Brooklyn Center pursuant to the Tax
Increment Agreement executed by the City and the Authority; and said
tax increments are hereby irrevocably appropriated and pledged to the
Debt Service Fund. If any payment of principal or interest on the
Bonds shall become due when there is not sufficient money in the Debt
Service Fund to pay the same, the City Finance Director shall pay such
principal or interest from the general fund of the City and such fund
may be reimbursed for such advances out of proceeds of said tax
increments when received.
3.02. It is hereby found and determined that the estimated
tax increments from the Housing District are sufficient to provide
funds equal to at least S in excess of the amount needed to pay
principal and interest when due on the Bonds. In this resolution the
terms "Housing Development Project" and "Tax Increment Financing Dis-
trict" have the meanings given them by the council resolution of
September 12, 1983 authorizing the sale of the Bonds.
Section 4. Authentication of Transcript.
4.01. The City Manager shall obtain a copy of the proposed
approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien Drawz,
a Professional Association, Minneapolis, Minnesota, which shall be
complete except as to dating thereof and shall cause said opinion to
be printed on each Bond, together with a certificate to be signed by
the facsimile signature of the City Manager in substantially the form
stated above.
The City Manager is hereby authorized and directed to execute such
certificate in the name of the City upon receipt of such opinion and
to file the opinion in the City offices.
RESOLUTION NO. 83 -162
The Bonds when fully executed, shall be delivered by the City Finance
Officer to the Purchaser thereof upon receipt of the purchase price,
and the Purchaser shall not be obligated to see to the proper appli-
cation thereof.
4.02. The officers of the City are hereby authorized and
directed to prepare and furnish to the purchaser of the Bonds and to
the attorneys approving the same, certified copies of proceedings and
records of the City relating to the Bonds and to the financial condi-
tion and affairs of the City, and such other certificates, affidavits
and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and
under their control, relating to the validity and marketability of the
Bonds and such instruments, including any heretofore furnished, shall
be deemed representations. of the City as to the facts stated therein.
1
4.03. The Mayor and City Manager are hereby authorized and
directed to certify that they have examined the Official Statement
prepared and circulated in connection with the issuance and sale of
the Bonds and that to the best of their knowledge and belief said
statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement
or prospectus as it relates to the City.
4.04. The City Manager
certified copy of this resolution
tion of Hennepin County, and to
Minnesota Statutes, Section 475.63
Ls authorized and directed to file a
with the Director of Property Taxa-
obtain the certificate required by
October 17, 1983
Date
ATTEST:
Mayor
The motion for the adoption of the foregoing resolution was duly seconded by
member Gene Lhotka, and upon vote being taken thereon, the following voted
in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, Rich
Theis; and the following voted against the same: none, whereupon said resolution
was declared duly passed and adopted.
1
RESOLUTION NO. 83 -162
STATE OF MINNESOTA
)e
COUNTY OF HENNEPIN SS.
CITY OF BROOKLYN CENTER
I, the undersigned, being the duly qualified and acting
Manger
]MA§VX of the City of Brooklyn Center, Minnesota do hereby certify that
I have carefully compared the attached and foregoing extract of
minutes of a regular meeting of the City Council held on Monday,
October 17, 1983, with the original thereof on file in my office and
the same is a full, true and complete transcript therefrom insofar as
the same relates to the issuance and sale of $930,000 General Obliga-
tion Tax Increment Bonds of 1983, of the City.
Manager
WITNESS My hand as (alwqi� and the corporate seal of the City
this day of r�) `mot/ 1 83 j
C#Vi
.M
C ity of Br 0
(SEAL)
.ager
yn Center, Minnesota
V
'7
RESOLUTION NO. 83 -162
EXHIBIT A
i SPRINGSTED
INCORPORATED
/'PUBLIC FINANCE
ADVISORS
$930,000
GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983
CITY OF BROOKLYN CENTER, MINNESOTA
AWARD: NORWEST SECURITIES
And Associates
SALE:
October 17, 1983 Moody's Rating: A -1
Net Interest
Bidder
Couoons Price
Cost Rate
NORWEST SECURITIES
6.50% 1986 $913,725.00
$678,162.50
Moore, Juran and Company, Inc.
6.75% 1987
(8.3956
M. H. Novick Company, Inc.
7.00% 1988
Robert S. C. Peterson, Inc.
7.20% 1989
7.40% 1990
7.70% 1991
7.90% 1992
8.10% 1993
8.30% 1994
8.50% 1995
8.75% 1996
9.00% 1997
PIPER, JAFFRAY HOPWOOD INC.
6.50% 1986 $914,283.00
$678,542.00
Allison- Williams Company
6.75% 1987
(8.4003%)
Juran Moody, Incorporated
7.00% 1988
7.25% 1989
7.50% 1990
•7.75% 1991
7.90% 1992
8.10% 1993
8.30% 1994
8.50% 1995
8.75% 1996
9.00% 1997
THE FIRST NATIONAL BANK OF
6.50% 1986 $916,050.00
$681,440.62
SAINT PAUL
6.75% 1987
(8.43628
i First Notional Bank of Minneapolis
7.00% 1988
Robert W. Baird Company, Inc.
7.25% 1989
American National Bank Trust Co.
7.50% 1990
of Saint Paul
7.75% 1991
8.00% 1992
8.20% 1993
8.40% 1994
8.60% 1995
8.80% 1996
9.00% 1997
DAIN BOSWORTH INCORPORATED
6.50.% 1986 $915,120.00
$682,370.63
MERRILL LYNCH WHITE WELD
6.75% 1987
(8.4477
CAPITAL MARKETS GROUP
7.00% 1988
Cronin Marcotte, Incorporated
7.25% 1989
Dougherty, Dawkins, Strand Yost Inc.
7.50% 1990
7.75 1991
8.00% 1992
8.20% 1993
8.40% 1994
8.60% 1995
8.80% 1996
9.00% 1997
These Bonds are being reoffered at Par.
BBi: 9.67
Average Maturity: 8.69 Years
800 Osborn Building,
Saint Paul, Minnesota 55102 (612) 222 -4241
250 North Sunnyslooe Road, Brookfield, Wisconsin 53005 (414) 782 -8222