HomeMy WebLinkAboutResolution - 88-241 - Relating to $9,800,000 General Obligation Improvement Bonds, Series 1988; Calling for the Public Sale Thereof - Member Pidcock introduced the following resolution and
moved its adoption :
Resolution No . 88-241
RESOLUTION RELATING TO $9 , 800, 000 GENERAL
OBLIGATION IMPROVEMENT BONDS , SERIES 1988 ;
CALLING FOR THE PUBLIC SALE THEREOF
BE IT RESOLVED by the City Council of the City of
Eden Prairie, Minnesota ( the City) , as follows :
3. . Authorization_ . It is hereby determined that it is
necessary for the City to issue and sell its General Obligation
Tmprovement Bonds , Series 1988 in the principal amount of
$9, 800 , 000 ( the Bonds) to finance various local improvement
projects being undertaken by the City pursuant to Minnesota
Statutes , Chapter 429 . $147 , 000 of the principal amount of the
Bonds represents interest as provided in Minnesota Statutes ,
Section 475 . 56 .
It is hereby determined that the City Finance
Director/Clerk shall receive and open sealed bids for the
purchase of the Bonds on December 13 , 1988 , at 4 :00 o ' clock
r P .M. , and this Council shall meet at 4 : 00 o ' clock P . M . that
same date to award the sale .
2 . Sale . The City Finance Director/Clerk is hereby
authorized and directed to cause notice of the time , place and
purpose of said sale to be published at least ten days in
advance of the bid opening in the Eden Prairie News , a legal
newspaper having general circulation in the City, and in a
periodical published in Minneapolis , Minnesota , giving
financial news and of general circulation throughout the State ,
which notice shall be in substantially the following form :
i
NOTICE OF BOND SALE
$9 , 800 , 000 GENERAL OBLIGATION IMPROVEMENT BONDS , SERIES 1988
CITY OF EDEN PRAIRIE, MINNESOTA
NOTICE IS HEREBY GIVEN that the City of Eden Prairie ,
Minnesota , will receive sealed bids for the purchase of
$9 ,800 , 000 General Obligation Improvement Bonds , Series 1988 , of
the City (the Bonds ) , at the City Hall in Eden Prairie,
Minnesota , until 4 : 00 p . m . on Tuesday, December 13 , 1988 , at
which time the bids will be opened and tabulated . The City
Council will meet at 4 : 00 p .m. the same day to consider such
bids and award the sale of the Bonds . The Bonds will be issued
for the purpose of financing local improvements within the
City. The Bonds will be issuable as fully registered bonds of
single maturities , in denominations of $5 , 000 or any integral
multiple thereof , will be dated , as originally issued, as of
December 1 , 1988 , and will mature on February 1 in the following
years and amounts :
Year Amount Year Amount
1990 $1 , 000 , 000 1998 $600 , 000
1991 950 , 000 1999 550 , 000
1992 900 1000 2000 500 , 000
1993 850 , 000 2001 450 , 0 0 G
1994 800 , 000 2002 400 , 0()0
1995 750 , 000 2003 350 , 000
1996 700 , 000 2004 350 , 000
1997 650 , 000
The City will select a bank, financial institution or trust
company to act as Bond Registrar, Transfer Agent and Paying
Agent . Interest will be payable on each February 1 and
August 1 , commencing August 1 , 1989 , to the registered owners
of the Bonds appearing of record in the Bond Register as of the
15th day of the immediately preceding month . A legal opinion
will be furnished by Dorsey & Whitney, of Minneapolis,
Minnesota. Copies of a statement of Terms and Conditions of
Sale and additional information may be obtained from
Spri.ngsted , Inc . , 85 E . 7th Place, Suite 100 , St . Paul ,
Minnesota 55101 ; telephone 6 12-223-3 000 , financial consultants
to the City .
Dated : November 1 , 1988 .
BY ORDER OF THE CITY COUNCIL
John Frane
City Finance Director/Clem
City of Eden Prairie , Minnesota
-2-
3 . Terms and Conditions of Sale . The following
statement of Terms and Conditions of Sale shall constitute the
terms and conditions for the sale and issuance of the Bonds and
such terms and conditions are hereby authorized to -De
incorporated in material distributed to prospective bidders for
the Bonds :
-J_
TERMS AND CONDITIONS OF SALE
$9 , 800 , 000 GENERAL OBLIGATION IMPROVEMENT BONDS , SERIES 1988
CITY OF EDEN PRAIRIE, MINNESOTA
Sealed bids for the purchase of $9 , 800 , 000 General
Obligation Improvement Bonds , Series 1988 (the Bonds) of the
City of Eden Prairie, Minnesota (the City) will be received at
the office of the City Finance Director/Clerk , until 4 : 00 p .m. ,
on Tuesday, December 6 , 1988 , when they will be opened, read
and tabulated . The bids will be presented to the City Council
for consideration at a meeting to be held at the City Hall at
4 : 00 P. M . on the same date . This is a statement of the terms
and conditions upon which the bids for the Bonds will be
received , the sale thereof awarded and the Bonds issued .
PURPOSE
The Bonds will be issued for the purposa of financing
the cost of construction of local improvements within the City,
in accordance with the provisions of Minnesota Statutes ,
Chapters 429 and 475 .
TYPE , DENOMINATION AND MATURITIES
The Bonds will bear a date of original issue as of
December 1 , 1988 , will be in fully registered form and in
denominations of $5 , 000 or any integral multiple thereof , of
single maturities , and will mature on February 1 in the
following years and amounts :
Year Amount Year Amount
1990 $1 , 000 , 000 1998 $600 , 000
1991 950 , 000 1999 550 , 000
1992 900 , 000 2000 500 , 000
1993 850 , 000 2001 450 , 000
1994 8001000 2002 400 , 000
1995 750 , 000 2003 350 , 000
1996 700 , 000 2004 350 , 000
1997 650 , 000
-4-
INTEREST PAYMENT DATES AND RATES
Interest will be payable on August 1 , 1989 and
semiannually thereafter on each February 1 and August 1 , to the
registered owners of the Bonds appearing of record in the bond
register as of the close of business on the 15th day (whether
or not a business day) of the immediately preceding month. All
Bonds of the same maturity must bear interest from date of
original issue until paid at a single, uniform rate , not
exceeding the rate specified for Bonds of any subsequent
maturity . Each rate must be expressed in an integral multiple
of 5/100 or 1/6 of 1% , not exceeding the rate specified for
Bonds of any subsequent maturity .
BOND REGISTRAR, TRAINSFER AGENT
AND PAYING AGENT
The City will designate and contract with a bank,
financial institution or trust company to act as Bond
Recistrar , Transfer Agent and Paying Agent ( the Registrar ) .
The Bond Register will be kept , principal and interest will be
paid to the registered owner of each Bond and transfers of
ownership will be effected by the Registrar . The City will. pay
the reasonable and customary charges of the Registrar for such
services . The City reserves the right to remove the Registrar
and appoint a successor .
DELIVERY
Within 40 days after the sale , the City will deliver
to the Registrar the printed Bonds ready for completion and
authentication. The original purchaser of the Bonds must
notify the Registrar , at least five business days before
delivery of the Bonds , of the persons in whose names the Bonds
will be initially registered and the authorized denominations
of the Bonds to be originally issued . If notification is not
received by that date , the Bonds will be registered in the name
of the original purchaser and will be issued in denominations
corresponding to the principal maturities of the Bonds . On the
day of closing, the City will furnish to the purchaser the
opinion of bond counsel hereinafter described , an arbitrage
certification and a certificate verifying that no litigation in
any manner questioning the validity of the Bonds is then
pending or , to the best knowledge of c f f icers of the City,
threatened . Payment for the Bcnds must be received by the City
at its designated dencs itarry on the date of closing in
immediately available funds .
-5—
LEGAL OPINION
An opinion as to the validity of the Bonds and the
exemption from taxation of the interest thereon will be
furnished by Dorsey & Whitney, of Minneapolis , Minnesota and
will be printed on the Bonds . The legal opinion will state
that the Bonds are valid and binding general obligations of the
City enforceable in accordance with their terms , except to the
extent to which enforceability may be limited by state or
United States laws relating to bankruptcy, reorganization,
moratorium or creditors ' rights .
QUALIFIED TAX-EXEMPT OBLIGATIONS
The Bonds will be designated by the City as "Qualifi: d
Tax-Exempt Obligations" within the meaning of Section
265 ( b) (3 ) of the Internal Revenue Code of 1986 , as amended .
TYPE OF B I D AND AWARD
Sealed bids must be mailed or delivered to the
undersigned and must be received prior to the time established
above for the opening of bids . Each bid must be unconditional .
A good faith deposit in the amount of $98 , 000 must be submitted
with each bid . The good faith deposit must be in the form of a
certified or cashier ' s check or bark draft payable to the City
Finance Director/Clerk . The good faith deposit will be
retained by the City as liquidated damages if the bid is
accepted and the bidder fails to comply therewith . The good
faith deposit will be returned to the purchaser at the closing
for the Bonds . The bid authorizing the lowest net interest
cost (total interest from date of Bonds to stated maturities
less any cash premium or plus any discount) will be deemed the
most favorable . No oral bid and no bid of less than $9 , 653 , 000
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 .
CUS I P 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 delay in delivery
occasioned thereby.
-6-
Information for bidders and bidding forms may be
obtained from the undersigned or from Springsted , Inc . , 85
E . 7th Place, Suite 100 , St . Paul , Minnesota 55101 ; telephone
612-223-3000 , financial consultants to the City .
Dated : November 1988 .
BY ORDER OF THE CITY COUNCIL
John F r ane
City Finance Director/Clerk
City of Eden Prairie , Minnesota
-7-
i
4 . Official Statement . The City Finance
Director/Clerk and other officers of. the City, in cooperation
with Springsted, Inc . , financial consultants to the City, are
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 of Sale set forth in paragraph
3 hereof and such other information as shall be deemed advisable
and necessary to describe accurately the City and the security
for , and terms and conditions of , the Bonds .
/ M oz
Attest : -4&L
�Ay-Finance Director/Clerk
The motion for the adoption of the foregoing resolution
was duly seconded by Member and upon vote
being taken thereon , the following voted in favor thereof :
and the following voted against the same :
whereupon said resolution was declared passed and adopted,
t
signed by the Mayor and his signature attested by the City
i
Finance Director/Clerk .
-9-