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HomeMy WebLinkAbout2015-084 CCR Member Lin Myszkowski introduced the following resolution and moved its adoption: RESOLUTION NO. 2015-84 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $6,830,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2015B BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1. Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Brooklyn Center, Minnesota (the "City"), should issue $6,830,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2015B, to refund the February 1, 2017 through February 1, 2020 maturities of the City's Taxable General Obligation Tax Increment Bonds, Series 2004D, dated December 1, 2004. 2. Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Bonds. 3. Competitive Negotiated Sale. The City has retained Springsted Incorporated as an independent municipal advisor, and the City Council hereby determines to sell the Bonds by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Bonds which are not published in any newspaper or journal. 4. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby made a part hereof. 5. Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Springsted Incorporated in the preparation of an official statement for the Bonds. May 11, 2015 Date Mayor ATTEST: &W Aw—km. City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member April Graves and upon vote being taken thereon,the following voted in favor thereof: Tim Willson, April Graves, Lin Myszkowski, and Dan Ryan; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2015-84 STATE OF MINNESOTA ) CITY OF BROOKLYN CENTER ) HENNEPIN COUNTY ) I, the undersigned, being the duly qualified and acting Clerk of the City of Brooklyn Center (the "City"), DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council called and held on the date therein indicated which are on file and of record in my office, and the same is a full, true and complete transcript there from insofar as the same relates to the City's $6,830,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2015B. WITNESS my hand as such Clerk of the City this day of , 2015. Clerk RESOLUTION NO. 2015-84 EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED" ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $6,830,000* CITY OF BROOKLYN CENTER,MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,SERIES 2015B (BOOK ENTRY ONLY) Proposals for the Series 2015B Bonds will be received on Monday, June 8, 2015, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the Series 2015B Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Series 2015B Bonds regardless of the manner in which the proposal is submitted. (a) Sealed Bidding Proposals may be submitted in a sealed envelope or by fax (651)223-3046 to Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and coupons, by telephone (651)223-3000 or fax (651)223-3046 for inclusion in the submitted proposal. OR (b) Electronic Bidding Notice is hereby given that electronic proposals will be received via PARITY . For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible for making necessary arrangements to access PARITY®for purposes of submitting its electronic proposal in a timely manner and in compliance with the requirements of the Terms of proposal. Neither the City, its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a RESOLUTION NO. 2015-84 communication mechanism to conduct the electronic bidding for the Series 2015B Bonds, and PARITY8 is not an agent of the City. If any provisions of this Terms of proposal conflict with information provided by PARITY®, this Terms of proposal shall control. Further information about PARITY®, including any fee charged,may be obtained from: PARITY®, 1359 Broadway, 2"d Floor,New York,New York 10018 Customer Support: (212) 849-5000 DETAILS OF THE SERIES 2015B BONDS The Series 2015B Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2016. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Series 2015B Bonds will mature February 1 in the years and amounts* as follows: 2017 $1,665,000 2018 $1,675,000 2019 $1,735,000 2020 $1,755,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2015B Bonds or the amount of any maturity in multiples of$5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2015B Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public. Proposals for the Series 2015B Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must specify "Years of Term Maturities" in the spaces provided on the proposal form. BOOK ENTRY SYSTEM The Series 2015B Bonds will be issued by means of a book entry system with no physical distribution of Series 2015B Bonds made to the public. The Series 2015B Bonds will be issued in fully registered form and one Series 2015B Bond,representing the aggregate principal amount of the Series 2015B Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Series 2015B Bonds. Individual purchases of the Series 2015B Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Series 2015B Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial RESOLUTION NO. 2015-84 owners. The purchaser, as a condition of delivery of the Series 2015B Bonds, will be required to deposit the Series 2015B Bonds with DTC. 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. OPTIONAL REDEMPTION The Series 2015B Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Series 2015B 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 tax increment revenue collections from the City's Tax Increment District No. 3, located in the City's Economic Development District. The proceeds will be used to refund the February 1, 2017 through February 1, 2020 maturities of the City's Taxable General Obligation Tax Increment Bonds, Series 2004D, dated December 1, 2004. TAXABILITY OF INTEREST The interest to be paid on the Series 2015B Bonds is included in gross income of the recipient for United States and State of Minnesota income tax purposes, and is subject to Minnesota corporate and bank excise taxes measured by income. BIDDING PARAMETERS Proposals shall be for not less than $6,797,558 plus accrued interest, if any, on the total principal amount of the Series 2015B Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Series 2015B Bonds is adjourned, recessed, or continued to another date without award of the Series 2015B Bonds having been made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity must be 98.0% or greater.Series 2015B Bonds of the same maturity shall bear a single rate from the date of the Series 2015B Bonds to the date of maturity. No conditional proposals will be accepted. GOOD FAITH DEPOSIT To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to the City in the amount of $68,300 (the "Deposit") no later than 1:00 P.M., Central Time on the day of sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier's check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the timely delivery of their Deposit whether by check or wire transfer. Neither the City nor Springsted Incorporated have any liability for delays in the receipt RESOLUTION NO. 2015-84 of the Deposit. If the Deposit is not received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder. Certified or Cashier's Check. A Deposit made by certified or cashier's check will be considered timely delivered to the City if it is made payable to the City and delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time. Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission of a federal wire reference number by the specified time. Wire transfer instructions will be available from Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must send an e-mail including the following information: (i) the federal reference number and time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies. Once an award has been made, the Deposit received from the lowest bidder (the "purchaser") will be retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be deducted at settlement from the purchase price. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. AWARD The Series 2015B Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Series 2015B Bonds, (ii)reject all proposals without cause, and (iii)reject any proposal that the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance with respect to the Series 2015B Bonds. If the Series 2015B Bonds qualify for municipal bond insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must be set forth on the bidder's proposal. The City specifically reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs associated with the issuance and administration of such policy and associated ratings and expenses (other than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2015B Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the Series 2015B Bonds. RESOLUTION NO. 2015-84 CUSIP NUMBERS If the Series 2015B Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Series 2015B Bonds, but neither the failure to print such numbers on any Series 2015B Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Series 2015B Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT On or about July 9, 2015, the Series 2015B Bonds will be delivered without cost to the purchaser through DTC in New York,New York. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the Series 2015B Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the Series 2015B Bonds has 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. CONTINUING DISCLOSURE In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding sale of the Series 2015B Bonds, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the Series 2015B Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Series 2015B Bonds. OFFICIAL STATEMENT The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative to the Series 2015B Bonds, and said Preliminary 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 Preliminary Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000. A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the maturity dates, principal amounts and interest rates of the Series 2015B Bonds, together with any other information required by law. By awarding the Series 2015B Bonds to an underwriter or underwriting syndicate, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the sole underwriter or to the senior managing underwriter of the syndicate (the "Underwriter" for purposes of this paragraph) to which the Series 2015B Bonds are awarded up to 25 copies of the Final Official Statement. The City designates the Underwriter of the syndicate to which the Series 2015B Bonds are awarded as its RESOLUTION NO. -2015-84 agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Such Underwriter agrees that if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Series 2015B Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement.