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HomeMy WebLinkAboutResolution - 80-227 - Relating to $18,500,000 General Obligation Tax Increment Bonds and Authorizing Issuance and Calling for Public Sale - 11/18/1980 Member introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $18,500,000 GENERAL OBLIGATION TAX INCREMENT BONDS; AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota, as follows: Section 1. Authorization and Findings. 1.01. This Council by Resolution No. 80-112, adopted June 3, 1980, activated a Housing and Redevelopment Authority in and for the City of Eden Prairie (the Authority) , pursuant to the Housing and Redevelopment Act, Minnesota Statutes , Sections 462. 411 to 462.711. The Authority has prepared a redevelopment plan and tax increment financing plan for that part of the City consisting of the undeveloped land within and in the vicinity of the Major Center Area. After appropriate proceedings conducted pursuant to Minnesota Statutes, Sections 462.515 and 462.521 under the Housing and Redevelopment Act and Section 273.74 of the Tax Increment Financing Act, Minnesota Statutes, Sections 273.71 through 273.78, this Council by Resolution No. R80-188, adopted October 7 , 1980, approved the redevelopment plan, the redevelopment projects proposed therein and the tax increment financing plan of the Authority. The proposed redevelopment projects consist of the improvement and construction of roads, bridges and ramps within the redevelopment area, including Valley View Road, Schooner Boulevard, U.S. Highway 169 and Mitchell Road, and the acquisition of necessary rights-of-way (the Projects) . 1.02. It is presently estimated that the Authority will expend the following amounts to construct the Projects: Construction: $ 13,ok-'-Ji Engineering: a11 `141 Interest during construction: �i �`'�"> 0� Contingency: /, / e, Total $ 1 1.03. Pursuant to the provisions of Minnesota • Statutes, Section 273.77 and Chapter 475, the Council hereby authorizes the issuance and sale of General Obligation Tax Increment Bonds of the City, in the principal amount of $18,500,000, of which $360,000 in principal amount represents interest pursuant to Minnesota Statutes, Section 475.56 (the Bonds) , for the purpose of providing funds for the payment of public redevelopment costs of the redevelopment projects described in Section 2.01 hereof and detailed in the redevelopment plan and tax increment financing plan of the Authority. The tax increment financing district (the District) includes the vacant and undeveloped land in the vicinity of the Major Center Area of the City, as further described in detail in the tax increment financing plan. It is anticipated that the tax increment revenue generated. from the District will be segregated and pledged for the payment of and principal interest on the Bonds under an agreement to be entered into between the Authority and the City, pursuant to Minnesota Statutes, Section 273.77(a) . The Council has found that the District is a redevelopment district within the meaning of Minnesota Statutes, Section 273.77, Subdivision 10, and thus the duration of the District may extend 25 years after the date of receipt by the Authority of the first tax increment generated. Section 2. Sale of Bonds. This Council shall meet at the time and. place specified in the form of notice hereinafter prescribed to receive, open and consider sealed bids and award the sale of the Bonds. The City Finance Director/Clerk is hereby authorized and directed to cause notice of the time, place and purpose of the meeting to be published once not less than ten days before the date of the meeting in the , a legal newspaper having general circulation in the City, and in Commercial West, which notice shall be in substantially the following form: -2- NOTICE OF SALE $18,500 ,000 General Obligation Tax Increment Bonds City of Eden Prairie, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above Bonds of the City of Eden Prairie, Minnesota will be received at the office of the City Finance Director/Clerk in the City Hall in Eden Prairie, Minnesota, until o'clock p.m. , December 9, 1980, at which time the bids will be opened and tabulated, and at 7 :30 p.m. that same day the City Council will meet to consider the bids and award the sale of the Bonds. The Bonds are being issued to finance the public redevelopment cost of certain redevelopment projects within the City to be undertaken by the Housing and Redevelopment Authority in and for the City. The Bonds will -be dated December 1, 1980, and will mature on January 1 in the following years and amounts: Year Amount Year Amount 1984 $325,000 1993 $1,025,000 1985 525,000 1994 1,100,000 1986 550,000 1995 1,225,000 1987 625,000 1996 1,300,000 1988 675,000 1997 1,450,000 1989 725,000 1998 1,550,000 1990 800,000 1999 1,700,000 1991 875,000 2000 1,850,000 1992 950,000 2001 1,250,000 Bonds maturing in the years 1992 to 2001 are each subject to redemption and prepayment, at the option of the City and in inverse order of serial numbers, on January 1, 1991 or on any interest payment date thereafter at a price equal to their principal amount and accrued interest to the date of redemption, plus a premium equal to one percent of their original amount. Interest will be payable on September 1, 1981 and semiannually thereafter. No rate of interest nor the net effective average rate of the issue may exceed 12% per annum. An opinion as to validity of the issue and tax exempt nature of the interest thereon will be requested from Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. Copies of a statement of Terms and Conditions for Receipt of Bids and Award of Sale and additional information may be obtained from the undersigned or from Ehlers and Associates, Inc. , 507 Marquette Avenue, Minneapolis, -3- Minnesota 55402; telephone (612) 339-8291, Financial Consultants to the City. BY ORDER OF THE CITY COUNCIL John D. Frane Finance Director/Clerk 8950 Eden Prairie Road Eden Prairie, Minnesota 55344 Dated: November 18, 1980. -4- r Section 3. Terms and Conditions for Receipt of Bids . and Award of Sale. The following shall constitute the terms and conditions for the sale and issuance of the Bonds, and the City Finance Director/Clerk and the financial consultants to the City are hereby authorized and directed to cause the following terms and conditions to be incorporated in material distributed to prospective bidders for the Bonds: • -5- TERMS AND CONDITIONS FOR RECEIPT OF BIDS AND AWARD OF SALE OF • $18,5001000 GENERAL OBLIGATION TAX INCREMENT BONDS CITY OF EDEN PRAIRIE, MINNESOTA Sealed bids for the purchase of $18,500,000 General Obligation Tax Increment Bonds (the Bonds) of the City of Eden Prairie, Minnesota, will be received at the office of the Finance Director/Clerk in the City Hall until o'clock P.M. , C.S.T. , Tuesday, December 9, 1980, at which time the bids will be opened and tabulated. The City Council will meet at 7 :30 o'clock P.M. that same day to consider the bids and award the sale of the obligations. DATE AND PURPOSE The Bonds are to be dated as of December 1, 1980, and are issued pursuant to Minnesota Statutes, Section 273.77 and Chapter 475, to finance the public redevelopment costs of certain redevelopment projects within the City to be undertaken by the Housing and Redevelopment Authority in and for the City. DENOMINATION, MATURITIES AND REDEMPTION • The Bonds will be numbered serially, will be in the denomination of $5,000 each, unless designated otherwise- by the purchaser within 48 hours of award of sale and will mature serially on January 1 in the following years and amounts: Year Amount Year Amount 1984 $325 ,000 1993 $1,025,000 1985 525,000 1994 1,100,000 1986 550 ,000 1995 1,225,000 1987 625,000 1996 1,300,000 1988 675,000 1997 1,450,000 1989 725,000 1998 11550,000 1990 800 ,000 1999 1,700,000 1991 875,000 2000 1,850,000 1992 950 ,000 2001 1,250,000 Bonds maturing in the years 1984 through 1991 are payable on their stated maturity dates without option of prior payment, but Bonds maturing in the years 1992 to 2001 are each subject to redemption and prepayment, at the option of the City and in inverse order of serial numbers, on January 1, 1991 or on any interest payment date thereafter -6- at a price equal to their principal amount and accrued • interest to the date of redemption, plus a premium equal to one percent of their principal amount. INTEREST PAYMENT DATES, RATES Interest on the Bonds will be payable semiannually on each March 1 and September 1, commencing September 1, 1981. Bonds maturing on the same date must bear interest at a single uniform rate from their date until their stated maturity, not exceeding 12% per annum, and represented by a single set of coupons. PAYING AGENT Principal and interest will be made payable at a suitable bank in the United States designated by the successful bidder within 48 hours after award of sale, subject to approval by the City Council. The Council will select the paying agent if it does not approve the designation of the purchaser. The City will pay reasonable and customary charges of the paying agent. 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 respective purchaser , if the purchaser waives any delay in delivery occasioned thereby. DELIVERY Within 40 days after award of sale, the City will furnish and deliver to the purchaser anywhere within the United States, the printed and executed Bonds, the opinion of bond counsel and customary closing papers, including a no-litigation certificate. Payment for the Bonds must be made in funds immediately available to the City on the date of delivery. LEGAL OPINION A legal opinion on the validity of the Bonds and the tax-exempt nature of the interest thereon will be requested from Dorsey, Windhorst, Hannaford, Whitney & Halladay, of Minneapolis, Minnesota. The legal opinion will be printed on the Bonds at the request of the purchaser. -7- CONSIDERATION OF BIDS . Seal•ed bids for the Bonds for not less than $18 ,140,000 and accrued interest on the principal sum of $18,500,000 must be mailed or delivered to the undersigned and must be received prior to the time set forth above. Each bid must be unconditional (except that each bid will be deemed to be conditioned on . receipt of the legal opinion referred to above) and must be accompanied by a cashier's check or a certified check or bank draft in the amount of $ , payable to the City Finance Director/Clerk, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid offering the lowest net interest cost, determined by the addition of any discount to and the deduction of any premium from the total interest on all Bonds from their da4e to their stated maturity, will be deemed the most favorable for the issue. The net effective rate of the issue may not exceed 12% per annum. The City reserves the right to reject any and all bids, to waive informalities and to adjourn the sale. Information for bidders and bidding forms may be obtained from the undersigned or from Ehlers and Associates, Inc. , 507 Marquette Aveneue, Minneapolis, Minnesota 55402; telephone (612) 339-8291, Financial Consultants to the City. Dated : November 18, 1980. BY ORDER OF THE CITY COUNCIL John D. Frane City Finance Director/Clerk Eden Prairie, Minnesota 55344 -8- Section 4. Official Statement. The City Finance Director/Clerk, in cooperation with Ehlers and Associates, Inc. , Financial Consultants to the City, is hereby authorized and directed to prepare on behalf of the City an official statement to be distributed to potential purchasers of the Bonds. Such official statement shall contain the statement of Terms and Conditions for Receipt of Bids and Award of Sale set forth in Section 3 hereof and such other information as shall be deemed advisable and necessary to describe adequately the City and the security, terms and conditions of the Bonds. f e2-'� Mayor Attest: n Director/Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following Members voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor and attested by the Finance Director/Clerk. -9-