HomeMy WebLinkAboutResolution - 83-270 - Providing for Issuance and Sale of $19,800,000 General Obligation Advance Refunding Tax Increment Bonds of 1983 - 11/01/1983 i
Extract of Minutes rf Meeting
of the City Council of the City
of Eden Prairie , Hennepin County , Minnesota
Pursuant to due call and notice thereof a _sp4w_!a_ -
meeting of the City Council of the City of Eden Prairie ,
Hennepin County, Minnesota , was held at the Eden Prairie
ael on the -4 t_ - day of rer , 1983 , commenc ing at
•-b-:�4-o ' clock P .M . , C.T .
The following Councilmembers were present :
<✓ �._-�i O�✓ �/�mot/ C= C=�./�
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and the following were absent :
The following resolution was presented by Councilmember
who moved its adoption :
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $19 , 800 ,000 GENERAL OBLIGATION
ADVANCE REFUNDING TAX INCREMENT BONDS OF 1983
BE IT RESOLVED by the City Council of the City of Eden
Prairie , Hennepin County , Minnesota as follows :
1 . The City has issued and sold its $ 18 , 500 , 000 Gen-
eral Obligation Tax Increment Bonds of 1982 , dated March 1,
1982 ( the "Outstanding Bonds") , to assist in financing cer-
tain public improvements within the City . The City ' s public
finance advisor , Ehlers and Associates , Inc . , has recom-
mended that the City issue and sell its $19 , 800 ,000 General
Obligation Advance Refunding Tax Increment Bonds of 1983
( the "Refunding Bonds " ) in order to refund the Outstanding
Bonds in advance of their maturity .
2 . It is hereby determined to be in the best interests
of the City to issue the Refunding Bonds , pursuant to Minne-
sota Statutes , Section 475 . 67 ,, to refund the Outstanding
Bonds in advance of their maturity .
3 . The amity shall therefore issue and sell its
$ 19 ,800 , 000 General Obligation Advance Refunding Tax Incre-
ment Bonds of 1983 , and $385 ,000 of such amount shall repre-
sent additional bonds issued pursuant to Minnesota Statutes ,
Section 475 .56 , as additional interest required to market
the Bonds at this time . The Bonds shall be issued and sold
in accordance with the following Official Notice of Sale:
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OFFICIAL
NOTICE OF SALE
$19 ,800 ,000 General Obligation Advance Refunding
Tax Increment Bonds of 1983
City of Eden Prairie
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the above
bonds will be received by the undersigned until 11: 00
o' clock , A.M. , Central Time , in the Eden Prairie City Hall
on Tuesday , November 13191983 , when they will be opened .
The City Council will meet at 7 : 30 o' clock , P .M. , Central
Time , on the same day to consider the bids for award of sale
of $19 , 800 , 000 fully registered , general obligation bonds of
the City on the following terms :
Purpose and Security
The purpose of the bonds is to refund the City ' s
$18 , 500 ,000 General Obligation Tax Increment Bonds of 1982 ,
dated March 1, 1982 , in advance of their maturity . The
bonds will be general obligations of the issuer for which
its Ball faith and credit and taxing powers will be pledged .
Date and Maturities
The bonds will be dated December 1, 1983 , will be in
denomination of $5 ,000 each , or integral multiples thereof ,
and will mature on March 1 in the following years and
amounts :
Year Amount Year Amount
1985 $ 300 ,000 1993 $ 1 ,350 ,000
1986 700 ,000 1994 1 ,425 ,000
1987 775 ,000 1995 1,450 ,000
1988 825 ,000 1996 1 ,525 ,000
1989 11000 ,000 1997 1, 550 ,000
1990 1 , 350 ,000 1998 1 ,550 ,000
1991 1, 350 ,000 1999 1 ,525 ,000
1992 1, 350 ,000 2000 1,775 ,000
Redemption Feature
All bonds of this issue maturing after March 1 , 1990 ,
will be subject to prior redemption at the option of the
City in inverse order of maturities on said date and any
interest payment date thereafter at a price of par plus
accrued interest to date of redemption .
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Interest
Interest on the bonds will be payable on September 1,
1984 , and semiannually thereafter on each March 1 and
September 1. All 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 mul-
tiple of 5/100 of 1% , and no rate of interest nor the net
effective interest rate of the issue may exceed the maximum
rate allowed by law on the date of sale .
Paying Agent/Bond Registrar
The City will select the Paying Agent/Bond Registrar for
the Bonds and will pay the customary charges for such ser-
vices . The Paying Agent/Bond Registrar will be S .E .C .
registered .
CUSIP Numbers
The City will assume no obligation for the assignment or
printing of CUSIP numbers on the bonds or for the correct-
ness of anv numbers printed thereon but will permit such
numbers to be assigned and printed at the expense of the
purchaser , provided 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
the purchaser and approved by the City as the purchaser ' s
agent to examine and take delivery of the bonds , the printed
and executed bonds , the unqualified legal opinion thereon of
O ' Connor & Hannan , bond counsel, and a certificate stating
that no litigation in any manner questioning the validity of
the bonds 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 , or within five days after
deposit of the bonds with the delivery agent , in funds
available for expenditure by the City on the day of payment .
Legal Opinion
An unqualified legal opinion on the bonds will be fur-
nished by O' Connor & Hannan , of Minneapolis , Minnesota . The
legal opinion will be printed on the bonds at the request of
the purchaser and will state that the bonds are valid and
binding general obligations of the City , payable from tax
increments derived from increased assessed valuations of
certain real property in the City , and that , if required for
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such purpose , the City is obligated to levy taxes for the
payment of principal of and interest on the bonds 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 under-
signed and must be received prior to the time they will be
opened . Each bid must be unconditional and must be accom-
panied by a cashier ' s or certified check or bank draft in
the amount of $396 ,000 , 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 there-
with . 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
$ 19 ,800 ,000 bid for principal) will be deemed the most
favorable . No oral bid and no bid of less than $ 19 ,415 ,000
for principal plus accrued interest on all of the bonds will
be considered, and the City reserves the right to reject any
and all bids and to waive any informality in any bid . The
City also reserves the right to reduce the size of the
issue , and to modify related terms of the issue accordingly ,
to comply with applicable state and federal regulations ,
provided the City notifies prospective bidders of such
changes at least five days prior to the day of sale .
BY ORDER OF THE CITY COUNCIL
/s/ John Frane
City Finance Director
Dated : eo:-eber , 1983 .
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4 . The City Clerk is authorized and directed to adver-
tise 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
Tuesday, November 15 , 1983 , at 7 : 30 o ' clock p .m. , C.T. , for
the purpose of considering sealed bids on the Bonds and
taking any other appropriate action.
The motion for the adoption of the foregoing resolution
was duly seconded by Counc ilmember and
upon vote dieing taken thereon , the following votedf in favor
thereof : to,P/rrT /�a✓O...�:�<.✓/ .rb ^'' ``y' �...p-[ cam'
and the following voted against the same • tiL��L
whereupon said .resolution was declared duly passed and
adopted .
Ar
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EXHIBIT "A"
NOTICE OF SALE
$ 19 , 800 ,000 General Obligation Advance Refunding
Tax Increment Bonds of 1983
City of Eden Prairie
Hennepin County, Minnesota
These bonds will be offered on Tuesday , November - 3-1
1983 . Bids will be accepted by the undersigned until 11: 00
o' clock a .m. , C. T. , at the City Hall in Eden Prairie , Minne-
sota, when they will be opened . The City Council will meet
at 7 : 30 o' clock p.m. , C. T. , on the same day to consider the
bids for award of sale . Dated December 1, 1983 , the bonds
will mature on March 1 in the years and amounts as follows:
Year. Amount Year Amount
1985 $ 300 ,000 1993 $1 ,350 ,000
1986 700 ,000 1994 1 ,425 ,000
1987 775 ,000 1995 1 ,450 ,000
1988 825 ,000 1996 1 ,525 ,000
1989 1 , 000 ,000 1997 1 ,550 ,000
1990 1 , 350 ,000 1998 1 ,550 ,000
1991 1, 350 ,000 1999 1 , 525 ,000
1992 1 , 350 ,000 2000 1 , 775 ,000
All bonds maturing after March 1, 1990 , will be subject to
prior redemption on said date and any interest payment date
thereafter at par plus accrued interest . Interest will be
payable on September 1 , 1984 , and semiannually thereafter .
Each rate must be in an integral multiple of 5/100 of 1% ,
and no rate may exceed the maximum rate permitted by law on
the date of sale . Minimum price , $19 ,415 ,000 . An unquali-
fied legal opinion will be furnished by O' Connor and Hannan ,
of Minneapolis , Minnesota . The purpose of the Bonds is to
refund in advance of maturity an issue of tax increment
bonds of the City .
BY ORDER OF THE CITY COUNCIL
/s/ John Frane
Finance Director
Dated : 1983 .
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