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88-7413RRESOLUTION N0. /41~ RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF 51,900,000 GENERAL OBLIGATION REDEVELOPMENT BONDS, SERIES 1988A BE IT RESOLVED By the City Council of the City of Richfield, Hennepin County, Minnesota, (City) as follows: 1. It is hereby determined: (a) The City has issued and sold its 518,675,000 General Obliga- tion Temporary Redevelopment Bonds, Series 1985 (Temporary Bonds) to provide funds to temporarily finance public redevelopment costs (Costs) incurred or to be incurred in the City's Interstate-Lyndale-Nicollet Redevelopment Project Area (Project Area). The Project Area is a Tax Increment Financing District within the meaning of Minnesota Statutes, Chapter 469 (Act). (b) The City is authorized by Section 469.178 of the Act to issue and sell its long-term .bonds to permanently finance Costs in the Project Area as identified in the redevelopment plan (Plan) for the Project Area. (c) The Housing and Redevelopment Authority of the City (Author-~ ity) has identified the following Costs to be permanently financed: Hampton Inn Development Project Costs $ 681,000 Discount on Temporary Bonds 168,000 Land Acquisition 1,000,000 Costs of Issuance 32,000 Discount 19,000 TOTAL 51,900,000 (d) The Authority has requested the City to issue and sell long term bonds to finance all or a portion of the Costs. (e) The Tax Increment Agreement between the Authority and the City, dated December 2, 1985, and filed with the Director of Property Taxation of Hennepin County is ratified and con- firmed. (f) That it is necessary and expedient to the sound financial management of the affairs of the City to issue 51,900,000 General Obligation Redevelopment Bonds, Series 1988A (Bonds) to provide financing for the Redevelopment Costs. (g) The Temporary Bonds are subject to redemption and prepayment on June 1, 1988. 2. In order to provide financing for the Costs, the City shall therefore issue and sell Bonds in the amount of 51,881,000. 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 519,000. Any excess of the purchase price of the Bonds. over the sum of $1,881,000 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 Notice of Sale: Resolution No. 74.13 Page 2 OFFICIAL CE OF SALE 51,900,1000 GENERAL OBLIGATION REDEVELOE~MENT BONDS, SERIES 1988A CITY OF RICHFIELD HENNE~IN COUNTY, MINNESOTA NOTICE above captioned April 25, 1988, Portland Avenue will be opened regular meeting on the following e and Se -The purpose of the bonds is to provide funds for the permanent financing of public redevelop~ent costs in a redevelopment project area in the City. The bonds will be general obligations to the City, for which its full faith, credit and taxing) powers are pledged together with tax incre- ments from the project area. I, to and Maturities The bonds will be issued in fully registered form, will be dated May 1, 1988, will be in inte~ral multiples of X5,000 each and will mature on February 1 in the following years and amounts: Year Amount II Year Amount 1989 X150,000 ~I 1994 $200,000 1990 150,000 ~ 1995 200,000 1991 150,000 ~'~, 1996 225,000 1992 175,000 II 1997 225,000 1993 175,000 I 1998 250,000 ~ Redemption The City may elect' on February 1, 1996, or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1997, at a price of par plus accrued interest to date of redemption. Interest Interest on the bon semiannually thereafter on ea ing on the same date must bear single, uniform rate, and nc specified for any subsequent ~ must be in an integral mult interest nor the net effects, maximum rate of interest perm: IS HEREBY GIVEN that sealed bids for the purchase of the bonds will ~e received until 1:00 p.m. C.T. on Monday, in the office of the City Manager at City Hall, 6700 South, Richfi~ld, Minnesota 55423, at which time the bids and tabulated for consideration by the City Council at a at 7:00 p.m. C.T. on the same day. The bonds are offered terms. [s will be payable on February 1, 1989, and h August 1 and February 1. All bonds matur- interest from date of issue until paid at a rate for any maturity may exceed the rate aturity by more than one percent. Each rate .p le of 1/20 or 1/8 of lZ, and no rate of e average rate of the issue. may exceed the tted by law on the day of sale. Resolution No. 7413 Page 3 Paying Agent .The City will name the Registrar which shall be subject to applicable SEC regulations. Principal will be payable at the principal office of the Registrar and interest will be payable by check or draft of the Registrar mailed to the registered holder of a bond. The City will pay the reasonable and customary charges for the services of the Registrar. CUSIP Numbers The City wi-11 assume no obligation for the assignment or printing of CUSIP numbers on the bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 30 days after sale, the City will furnish and deliver to the office of the purchaser or, at its option, will deposit with a bank in the United States selected by it and approved by the City as its agent to permit examination by and to deliver to the purchaser, the printed and executed bonds, the unqualified opinion thereon of bond counsel, and a certificate stating that ao litigation in any manner questioning their validity is then. threatened or pending. The charge. of the delivery agent must be paid by the purchaser, but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds in .funds available for expenditure by the City on the day of payment. . Legal Opinion An unqualified legal opinion oa the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the request of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City and that the City is obligated and required to levy taxes for the principal and interest thereon as the same become due without limit as to rate or amount. Type of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time established above for the opening of bids. Each bid must be unconditional. A good faith deposit in the amount of $42,900 must be submitted. with each bid prior to or immediately following bid opening. The good faith deposit must be in the form of a certified or cashier's check or bank draft payable to the City Finance Director or a wire transfer of funds to the City's designated depository. Wiring in- structions will be furnished on the day of sale prior to the time of award and sale. The good faith deposit will be deducted from the purchase price of the bonds at delivery. The good faith deposit will be retained by they°' City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost (total Resolution No. 7413 Page 4 interest from date of Bonds tb stated maturities less any cash premium or plus any amount less than ; 1 900,000) will be deemed the most favorable. No oral bid and no bid of less than X1,881,000 plus accrued interest on all of the Bonds will be consider d and the City reserves the right to reject any and all bids and to waive any informality in any bid. BY ORDER OF THE CITY COUNCIL /s/ Thomas Ferber City Clerk Dated: April I2, 1988. 3. The City Clerk is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Notice of Sale and to cause the abbreviated notice of sale attached hereto as Exhibit A, to be published in the manner requited by law. The City Council shall meet at 7:00 p.m. on Monday, April. 25, 1988,, to consider bids on the Bonds and take any other appropriate action. 4. The City Clerk is authorized and directed to take appropriate action in consultation with bond counsel to call the Temporary Bonds for redemption and prepayment on J~ne 1, 1988. Passed by the City Council of the City of Richfield this lath day of April, 1988 even J, yor ATTEST: ~~~~~~~~ Thomas P, Ferber City ~ erk i Resolution No. 7413 Page 5 NOTICE OF BOND SALE 51,900,000 GENERAL OBLIGATION REDEVELOPMENT BONDS, SERIES 1988A CITY OF RICHFIELD HENNEFIN COUNTY, MINNESOTA EXHIBIT A NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above captioned bonds will be received until 1:00 p.m., C.T. on Monday, April 25, 1988, in the office of the City Manager at City Hall, 6700 Portland .Avenue South, Richfield, Minnesota 55423, at which time the bids will be opened and tabulated for consideration by the city council at a regular meeting at 7:00 p.m., C.T. on the same day. The Bonds are offered on the following terms. The Bonds will be dated May 1, 1988, will bear interest payable semiannually on each February 1 and August 1, commencing February 1, 1988, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1989 5150,000 1994 5200,000 1990 150,000 1995 200,000 1991 150,000 1996 225,000 1992 175,000 1997 225,000 1993 175,000 1998 250,000 The City may elect on February 1, 1996 or on any. interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1997 at a price of par plus accrued interest to date of redemption. No rate of interest nor the net effective interest rate of the issue may exceed the maximum rate permitted by law. Bidders must specify a price of not less than 51,881,000 plus accrued interest. A legal opinion on .the Bonds-will be furnished by LeFevere, Lefler, Kennedy, O'Brien b Drawz, a Professional Association, Minneapolis, Minnesota. The proceeds of the bonds will be used to permanently finance public redevelopment costs related to a redevelopment project area in the City. Bidders should be aware that the Official Statement to be distributed 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 the Official Statement the provisions of .the latter shall be those with which to comply. BY ORDER OF THE CITY COUNCIL /s/ Thomas Ferber City Clerk Dated: April 12, 1988.