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85-7106R51 RESOLUTION N0. 7106 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $18,675,000 GENERAL OBLIGATION TEMPORARY REDEVELOPMENT BONDS, SERIES 1985 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 Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) has prepared and submitted to this Council a redevelopment project plan (Plan) for a redevelopment project (Project Area) and a related tax increment financing plan (TIF Plan) for a redevelopment tax increment financing district (TIF District) within the Project Area, all pursuant to Minnesota Statutes, Sections 462.411 go 462.705 and 273.71 to 273.78 (Act). The Plan, the Project Area, the TIF Plan and the TIF District are described in a document entitled "Interstate Lyndale Nicollet Redevel- opment and Tax Increment Financing Plan" dated October 21, 1985. (b) After public hearing this date upon duly published notice thereof as required by the Act, this Council has approved the Plan and the TIF Plan and established the Project Area and the TIF District. (c) The HRA has duly requested the City to issue and sell its general obligations to provide financing for all or a portion of the public redevelopment costs (Costs) in the Project Area and has presented this Council with a proposed Tax Increment Agreement (Agreement) pursuant to Section 273.77 of the Act. The form of the Agree- ment is approved and the Mayor and City Manager are authorized and directed to execute and deliver the Agreement on behalf of the City. (d) The City is authorized by Section 277.77, Clauses (a) and (d) to issue and sell its general obligations pursuant to those sections and Minnesota Statutes, Chapter 475 to provide temporary and definitive financ- ing for the Costs. (e) It is necessary and expedient to the sound financial management of the affairs of the City to issue and sell $18,675,000 General Obligation Temporary Redevelopment Bonds, Series 1985 (Bonds) to provide temporary financ- ing for the Costs as more fully identified in the TIF Plan. 2. In order to provide temporary financing for the Costs,' the City shall therefore issue and sell Bonds in the amount of $18,534,937. 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 $140,063. Any excess of the purchase price of the Bonds over the sum of $18,534,937 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: OFFICIAL NOTICE OF SALE $18,675,000 General Obligation Temporary Redevelopment. Bonds, Series 1985 City of Richfield Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that the sealed bids for the purchase of the above bonds will be received until 11:30 A.M. C.T. on Monday, December 2, 1985 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 special meeting at 5:30 P.M. on the same day. The bonds are offered on the following terms: Purpose and Security The purpose of the bonds is to provide funds for the tempo- rary financing of the public redevelopment costs connected with a redevelopment tax increment financing district in the City. The bonds will be general obligations of the issuer, for which its full faith, credit and taxing powers are pledged. Date and Maturities The bonds will be issued in fully registered form, will be dated December 1, 1985, will be in denominations of $5,000 or integral multiples thereof and will mature December 1, 1988. Redemption Feature Bonds of this issue will be subject to redemption and. prepayment in whole or in part at the option of the City on December 1, 1986 and on any interest payment date thereafter at a price of par plus accrued interest to date of redemption. If redemption is in part the specific bonds to be redeemed will be selected by the Registrar. Interest Interest on the bonds will be payable on June 1, 1986, and semiannually thereafter on each December 1 and June 1. All bonds maturing on the same date must bear interest from date of issue until maturity at a single, uniform rate. Rate specified must be in an integral multiple of 1/100 of 17 or 1/8 of 1~, and neither the rate of interest nor the net effective average rate of the issue may exceed the maximum rate of interest permitted by law on the day of sale. Paying Agent The City will name the Registrar which shall be subject to applicable SEC regulations. Principal will be payable at the prin- cipal 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 25 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. Delivery is expected to be made on or about December 30, 1985. Legal Opinion An unqualified legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa- tion of 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, payable from tax increments from a redevelopment tax increment financing district in 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 specified above. Each bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $186,750, payable to the City Finance Director, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The good faith check of the successful bidder will be deposited at the time of award and deducted from the purchase price at delivery. 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 $18,675,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $18,.534,937 for principal plus accrued interest on all of the bonds will be con- sidered, 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 P. Ferber City Clerk Dated: November 12, 1985. 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 required by law. The City Council shall meet on Monday, December 2, 1985, at 5:30 p.m. for the purpose of considering bids on the Bonds and taking any other appro- EXHIBIT A NOTICE OF BOND SALE $18,675,000 GENERAL OBLIGATION TEMPORARY REDEVELOPMENT BONDS, SERIES 1985 CITY OF RICHFIELD, MINNESOTA HENNEPIN COUNTY NOTICE IS HEREBY GIVEN that the sealed bids for the purchase of the above bonds will be received until 11:30 A.M. C.T. on Tuesday, December 3, 1985 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 special meeting at 5:30 P.M. on the same day. The Bonds will be dated December 1, 1985, will bear interest payable semiannual- ly on each June 1 and December 1 to maturity, commencing June 1, 1986, and will mature on December 1, 1988. Bonds of .this issue will be subject to redemption in whole or in part on December 1, 1987 and on at any interest payment date thereafter at par plus accrued interest. Neither the rate of interest specified 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 $18,534,937 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 temporarily finance a portion of the public redevelopment costs connected with a redevelopment tax increment financing district in the City. Bidders should be aware that the Official Statement to be published 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 said Official Statement, the provi- sions of the latter shall be those to be complied with. BY ORDER OF THE CITY COUNCIL /s/ Thomas P. Ferber City Clerk Dated: November 12, 1985.