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88-7439R109 RESOLUTION N0. 7439 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $7,915,000 GENERAL OBLIGATION REFUNDING BONDS OF 1988 BE IT RESOLVED by the City Council of the City of Richfield, Hennepin County, Minnesota (City) as follows: 1. It is hereby determined that: (a) the City is authorized by the provisions of Minnesota Statutes, Chapter 475 (Act) and Section 475.67, Subdivisions 4 through 10 of the Act to issue and sell its general obligation bonds to refund outstanding bonds when determined by the City Council to be necessary and desirable for the reduction of interest cost and the adjustment of maturities of outstanding issues of bonds: (b) it is necessary and desirable for the reduction of interest cost and the adjustment of maturities of bonds that the City issue $4,465,000 General Obligation Refunding Improvement Bonds of 1988 and $3,450,000 General Obligation Refunding Redevelopment Bonds of 1988 (collectively, Bonds) to refund in advance of maturity certain outstanding general obliga- tions of the City: (c) the bonds to be refunded (Refunded Bonds) consist of out- standing principal balance of the following general obliga- tion bonds of the City: (i) $6,100,000 General Obligation Improvement Bonds of 1980, dated September 1, 1980, callable on February 1, 1993; and $825,000 General Obligation Improvement Bonds of 1983, dated December 1, 1983, callable on February 1, 1992 (Refunded Improvement Bonds); and (ii) $4,500,000 General Obligation Redevelopment Refunding Bonds of 1983, dated May 1, 1983, callable on February 1, 1993 (Refunded Redevelopment Bonds). 2. (i) To provide moneys to refund the Refunded Improvement Bonds in advance of maturity, the City will therefore issue and sell Improvement Refunding Bonds in the amount of $4,398,025. In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $66,975. The excess of the purchase price of the Bonds over the sum of $4,398,025 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on such additional Bonds. To provide moneys to refund the Refunded Redevelopment Bonds in advance of maturity, the City will therefore issue and sell Redevelopment Refunding Bonds in the amount of $3,412,050. (ii) In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $37,950. The excess of the purchase price of the Bonds over the sum of $3,412,050 will 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, sold and delivered in accordance with the respective terms of the following Official Notices of Sale: OFFICIAL NOTICE OF SALE $4,465,000 General Obligation Improvement Refunding Bonds of 1988 City of Richfield Hennepin County, Minnesota (*Subject to adjustment as described herein) NOTICE IS HEREBY GIVEN that be received until 1:00 p.m. on offices of City Manager, City Richfield, Minnesota, 55423, at and tabulated for consideration 7:00 p.m. C.T. on the same day. ing terms. sealed bids for the above bonds will Monday, September 12, 1988, in the Hall, 6700 Portland Avenue South, which time the bids will be opened by the City Council at a meeting at The bonds are offered on the follow- Purpose and Security The purpose of the bonds is to refund in advance of their respective maturities certain general obligation bonds of the City. The bonds will be general obligations of the City for which the full faith, credit and taxing powers of the City will be pledged. The bonds will be further secured by special assessments against benefitted properties. Date and Maturities The bonds will be issued in fully registered form, dated October 1, 1988, in denominations of integral multiples of $5,000 each, and will mature on February 1, in the years and amounts as follows: Year Amount Year Amount 1989 $ 65,000 1997 $485,000 1990 25,000 1998 510,000 1991 30,000 1999 535,000 1992 30,000 2000 540,000 1993 85,000 2001 565,000 1994 85,000 2002 590,000 1995 430,000 2003 15,000 1996 460,000 2004 15,000 Redemption The City may elect on February 1, 1997 or on any interest payment date thereafter to. redeem and prepay bonds of either issue of bonds maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Prepayment may be in whole or in part and will be in inverse order of maturities and by lot within maturities. Interest Interest on the bonds will be payable on February 1, 1989, and semiannually thereafter on each August 1 and February 1. Bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be in an integral multiple of 1/20 or 1/8 of 17. Registrar The City will name the Registrar which shall be subject to applicable SEC regulations. Principal will be payable at the princi- pal 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 will 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 40 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 no 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 unqualif ied legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa- tion, 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 required by law 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 for the combined issues (the issues of Bonds will not be sold separately) must be mailed or delivered to the undersigned and must be received prior to the time specified above. A bid must be unconditional. Immediately following the bid opening, the. bidder whose bid represents the lowest net interest cost to the City must wire immediately available funds in the amount of $89,300 to the City's designated depository. Wiring instructions will be provided on the date of sale prior to the time of sale. The good faith deposit will be deducted from the purchase price at the time of closing. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $4,465,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $4,398,025 for principal plus accrued interest on all of the bonds will be considered. The City reserves the right to reject any and all bids and to waive an informality in a bid. Adjustment of Principal The City reserves the right to adjust the size of the issue following bid opening. Such adjustment will not exceed $100,000 in total or $5,000 for any annual maturity in the years 1989 - 1994, $25,000 for any .annual maturity in the years 1995 - 2002, or $5,000 for any annual maturity in the years 2003 and 2004. If the issue size is adjusted as provided herein, the purchase price of the issue will be adjusted proportionately. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: August 22, 1988 OFFICIAL NOTICE OF SALE $3,450,000* General Obligation Redevelopment Refunding Bonds of 1988 City of Richfield Hennepin County, Minnesota (*Subject to adjustment as described herein) NOTICE IS HEREBY GIVEN that sealed bids for the above bonds will be received until 1:00 p.m. on Monday, September 12, 1988, in the offices of City Manager, 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 meeting at 7:00 p.m. C.T. on the same day. The bonds are offered on the following terms. Purpose and Security The purpose of the bonds is to refund in advance of their respective maturities certain general obligation bonds of the City. The bonds will be general obligations of the City for which the full faith, credit and taxing powers of the City will be pledged. The bonds will be further secured by tax increments from a redevelopment project area in the City. Date and Maturities The bonds will be issued in fully registered form, dated October 1, 1988, in denominations of integral multiples of $5,000 each, and will mature on February I, in the years and amounts as follows: Year Amount 1989 $ 50,000 1990 25,000 1991 25,000 1992 30,000 1993 30,000 1994 360,000 1995 400,000 1996 420,000 1997 455,000 1998 815,000 1999 840,000 Redemption The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay bonds of either issue of bonds maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Prepayment may be in whole or in part and will be in inverse order of maturities and by lot within maturities. Interest Interest on the bonds will be payable on February 1, 1989, and semiannually thereafter on each August 1 and February 1. Bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be in an integral multiple of 1/20 or 1/8 of 17. Registrar The City will name the Registrar which shall be subject to applicable SEC regulations. Principal will be payable at the princi- pal 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 will 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 40 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 no 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 on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa- tion, 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 required by law 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 for the combined issues (the issues of Bonds will not be sold separately) must be mailed or delivered to the undersigned and must be received prior to the time specified above. A bid must be unconditional. Immediately following the bid opening, the bidder whose bid represents the lowest net interest cost to the City must wire immediately available funds in the amount of $69,000 to the City's designated depository. Wiring instructions will be provided on the date of sale prior to the time of sale. The good faith deposit will be deducted from the purchase price at the time of closing. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium or plus any amount less than $3,450,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $3,412,050 for principal plus adcrued interest on all of the bonds will be considered. The City reserves the right to reject any and all bids and to waive an informality in a bid. Adjustment of Principal The City reserves the right to adjust the size of the issue following bid opening. Such adjustment will not exceed $75,000 in total or $10,000 for any annual maturity in the years 1989 - 1993 or $25,000 for any annual maturity in the years 1994 - 1999. If the issue size is adjusted as provided herein, the purchase price of the issue will be adjusted proportionately. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: August 22, 1988 Exhibit A NOTICE OF BOND SALE $4,465,000 GENERAL OBLIGATION REFUNDING IMPROVEMENT BONDS OF 1988 CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 1:00 p.m., C.T. on Monday, Septem- ber 12, 1988, in the office of the City Manager, 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 meeting at 7:00 p.m. C.T. on the same day. The purpose of the bonds is to refund in advance of their respective maturities certain general obligation bonds of the City. The bonds will be general obligations of the City for which the full faith, credit and taxing powers of the City will be pledged. The Bonds will be further secured by special assessments against benefitted properties. The bonds are offered on the following terms. The bonds will be dated October 1, 1988, will bear interest payable semiannually on each February I and August 1, commencing February 1, 1989, and will mature without option of prior payment on February 1 in the years and amounts as follows: Year Amount Year Amount 1989 $ 65,000 1997 $485,000 1990 25,000 1998 510,000 1991 30,000 1999 535,000 1992 30,000 2000 540,000 1993 85,000 2001 565,000 1994 85,000 2002 590,000 1995 430,000 2003 15,000 1996 460,000 2004 15,000 The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay bonds of the issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $4,398,025 plus accrued interest for the combined issues. 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 refund in advance of their stated maturity certain general obligation bonds of the City. Bidders should be aware that the Official Statement to be distributed for the Bonds will 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 bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: August 22, 1988 Exhibit B NOTICE OF BOND SALE $3,450,000 GENERAL OBLIGATION REFUNDING REDEVELOPMENT BONDS OF 1988 CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 1:00 p.m., C.T. on Monday, Septem- ber 12, 1988, in the office of the City Manager, 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 meeting at 7:00 p.m. C.T. on the same day. The purpose of the bonds is to refund in advance of their respective maturities certain general obligation bonds of the City. The bonds will be general obligations of the City for which the full faith, credit and taxing powers of the City will be pledged. The Bonds will be further secured by tax increments from a redevelopment project area in the City. The bonds are offered on the following terms. The bonds will be dated October 1, 1988, will bear interest payable semiannually on each February 1 and August 1, commencing February 1, 1989, and will mature without option of prior payment on February 1 in the years and amounts as follows: Year Amount 1989 $ 50,000 1990 25,000 1991 25,000 1992 30,000 1993 30,000 1994 360,000 1995 400,000 1996 420,000 1997 455,000 1998 815,000 1999 840,000 The City may elect on February 1, 1997 or on any interest payment date thereafter to redeem and prepay bonds of the issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1998 at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $3,412,050 plus accrued interest for the combined issues. 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 refund in advance of their stated maturity certain general obligation bonds of the City. Bidders should be aware that the Official Statement to be distributed for the Bonds will 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 bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: August 22, 1988 3. The 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 notices of sale attached hereto as Exhibit A and Exhibit B to be published in the manner required by law. The City Council will meet at 7:00 p.m. on Monday, September 12, 1988, to consider bids on the Bonds and take other appropriate action with respect to the Bonds. Passed and adopted this 22nd day of August //,~88, by the City Council of the City of Richfield. /, ~// tev~n Quam, Attest: Thomas Ferber, Clerk