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HomeMy WebLinkAbout95-086 e CERTIFICATION OF MINUTES RELATING TO • $2,350,000 GENERAL OBLIGATION TEMPORARY TAX IlVCREMENT BONDS, SERIES 1995B Issuer: City of Lakeville, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on May 1, 1995, at 7 : oo p.m. at the City Hall. Members present: Zaun, Harvey,. Johnson, Mulvihill, Sindt Members absent: None Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 9 5 - 8 6 RESOLUTION RELATIlVG TO $2,350,000 GENERAL OBLIGATION TEMPORARY TAX INCREMENT BONDS, SERIES 1995B; AUTHORIZING THE ISSUANCE AND SALE THEREOF • TERMS OF PROPOSAL I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this / '~"~day of May, 1995. ! ~ , .Charlene Frie s, City Clerk • u Councilmember Harvey introduced the following resolution and • moved its adoption, which motion was seconded b Councilmember Mulvihill Y RESOLUTION NO. 9 s - s 6 RESOLUTION RELATING TO $2,350,000 GENERAL OBLIGATION TEMPORARY TAX INCREMENT BONDS, SERIES 1995B; AUTHORIZIl~TG THE ISSUANCE AND SALE THEREOF BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the "City"), as follows: Section 1. The Redevelopment Project. The Housing and Redevelopment Authority in and for the City of Lakeville has heretofore established a redevelop- ment project within the City, denominated I-35W Redevelopment Project No. 1 (the "Project"), and has established therein a redevelopment tax increment financing district encompassing the Fairfield Business Park (the "District") to finance certain public redevelopment costs of the Project. Section 2. Purpose of Bonds. It is hereby determined to be in the best interests of the City to issue, and the City is authorized to issue and sell, its general obligation temporary tax increment bonds in the aggregate principal amount of • $2,331,200, pursuant to Minnesota Statutes, Sections 469.174 to 469.179 and Cha ter 475, as amended, to finance certain public redevelopment costs of the Project a s more fully described on Appendix I attached hereto, and to issue $18,800 in principal amount of bonds of such series representing interest pursuant to Minnesota Statutes, Section 475.56. Such bonds shall be designated "General Obligation Temporary Tax Increment Bonds, Series 1995B" and be issued in the aggregate principal amount of $2,350,000 (the "Bonds"). Section 3. Terms of Proposal. Springsted Incorporated, financial consultant to the City, has presented to this Council a form of Terms of Proposal for the Bonds which is attached hereto and hereby approved and shall be placed on file by the Clerk. Each and all of the provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Bonds and of the sale thereof. Springsted Incorporated, as an independent financial adviser, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), is hereby authorized to solicit bids for the Bonds on behalf of the City on a negotiated basis. Section 4. Sale Meeting. This Council shall meet at the time and place shown in the Terms of Proposal, for the purpose of considering sealed bids for the purchase of the Bonds and of taking such action thereon as may be in the best interests of the City. • Approved and adopted this 1st day of May, 1995. CITY OF AKEVILLE By: ane Zaun, a r Attest: Charlene Fri ges, City Clerk Upon vote being taken thereon, the following voted in favor thereof: Zaun, Harvey, Johnson, Mulvihill, Sindt and the following voted against the same: None • whereupon the resolution was declared duly passed and adopted. • THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS • ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $2:,350,000 CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION TEMPORARY TAX INCREMENT BONDS, SERIES 19956 (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, May 15, 1995, until 1:00 P.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 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 (612) 223-3000 or fax (612) 223-3002 for inclusion in the • submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within aone-hour period prior to the time of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated June 1, 1995, as the date of original issue, and will bear interest payable on June 1 and December 1 of each year, commencing December 1, 1995. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature June 1, 1998. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each .year, will be • registered in the name of Kray & Co. as nominee of Midwest Securities Trust Company ("MSTC"), Chicago, Illinois, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof -i- of a single maturity through book entries made on the books and records of MSTC and its . participants. Principal and interest are payable by the registrar to MSTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of MSTC will be the responsibility of MSTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with MSTC. REGISTRAR First Trust National Association, St. Paul, Minnesota will serve as registrar. OPTIONAL REDEMPTION The City may elect on June 1, 1997, and on any day thereafter to prepay Bonds due on June 1, 1998. Redemption may be in whole or in part and if in part, the City will notify MSTC of the particular amount to be prepaid. MSTC will determine by lot the amount of each participant's interest to be redeemed and each participant will then select by lot the beneficial ownership interests to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be genera! 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 increments from the appropriate tax increment district. The proceeds will be used to finance eligible project costs within the City's Fairfield Industrial Park. TYPE OF PROPOSALS Proposals shall be for not. less than $2,331,200 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $23,500, payable to the order of the City. If a check is used, it must accompany each proposal. if a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with. the accepted proposal, said amount will be retained by the City. 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 Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. A single rate of interest shall be specified. No conditional proposals will be accepted. AWARD • The Bonds will be awarded on the basis of the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, if any, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The -ii- City's computation of the total net dollar interest cost 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 Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City determines to have failed to comply with the terms herein. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the • Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Dorsey & Whitney P.L.L.P. of Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall beJiable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said 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 Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. • The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any - iii - e underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 100 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent . for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept. such designation and. (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated May 1, 1995 BY ORDER OF THE CITY COUNCIL /sl Charlene Friedges Clerk • • -iv- J } • APPENDIX I Public Redevelopment Costs To Be Financed By Bonds Campus New Morning Windows fmorovements Tax Exemot Sanitary Sewer $ 259,500 5 31,500 Water 276, 300 37, 700 Storm Sewer 190.200 38.800 Streets 382, 476 119, 524 Grading 274.400 0 Subtotal 81.382.876 5227, 524 Plus: Entry Monument 20.000 0 Title insurance 5.000 0 Platting 10,000 0 Street Lights 86.100 0 Subtotal 81.503.976 8227., 524 Plus: Phase II 365.500 0 • Land 0 0 Capitalized interest 188,,550 22.950 Discount @ 0.8% 16,760 2.040 Costs of Issuance 23.000 3.000 Subtotal 82.097,786 8255.514 Less: Investment Earnings (2.786) 14) Total Bond Issue 52.095,000 5255.000