HomeMy WebLinkAboutResolution - 2009-59 - Capital Improvement Plan Amendment & Issuance of Bonds - 09/15/2009 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO.2009-59
RESOLUTION AUTHORIZING THE ADOPTION OF AMENDMENTS TO A
CAPITAL IMPROVEMENT PLAN AND ISSUANCE OF GENERAL
OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS
WHEREAS, the City of Eden Prairie, Minnesota(the"City")has published notice of its
intent to hold a hearing on the adoption of amendments to a Capital Improvement Plan(the
"Plan") and issuance of capital improvement plan bonds under Minnesota Statutes, Section
475.521 (the"Bonds") at least fourteen (14)but not more than twenty-eight(28)days prior to the
date hereof, pursuant to and in accordance with Minnesota Statutes, Section 475.521; and
WHEREAS,the City held a public hearing on the date hereof on the issuance of the Bonds
and adoption of amendments to the Plan;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City, as
follows, that:
1. Authorization. This City Council hereby hereby approves the Plan and authorizes the
issuance of the Bonds in the approximate principal amount of$1,450,000 for the purpose of
purchasing the City fire station (the"Project"),which Project is currently leased by the City from
the Housing and Redevelopment Authority in and for the City of Eden Prairie. The Project was
financed with proceeds of the$3,390,000 Public Facility Lease Revenue Bonds, Series 2000A
(City of Eden Prairie Lease Obligations) dated, as originally issued, as of November 1, 2000(the
"Refunded Bonds"). The Refunded Bonds are outstanding in the principal amount of
$1,900,000. Refunded Bonds maturing in the years 2011 and later are expected to be called for
redemption and prepayment on December 1, 2010 (the"Redemption Date").
2. Sale. Pursuant to Minnesota Statutes, Section 475.60, subdivision 2, paragraph (9),
the requirements as to public sale do not apply to the issuance of the Bonds. The Council desires
to proceed with the sale of the Bonds by direct negotiation with Northland Securities, Inc.
("NSI") and does hereby retain Sound Capital Management, Inc. to act as an independent
financial advisor to provide bond pricing opinion services for the issuance of the Bonds for the
purpose set forth in Minnesota Statutes, Section 475.60, Subdivision 2(9), as amended.
3. Refunding. The Redemption Date is the earliest date on which the Refunded Bonds
may be redeemed. The refunding of the Refunded Bonds is being carried out for the purpose
described in Minnesota Statutes, Section 475.67, subdivision 3, section (b)(2)(i) and in
compliance with Minnesota Statutes,Chapter 475.
4. Execution of Bond Purchase Agreement. The City Manager and Finance Manager are
hereby authorized to approve the sale of the Bonds in an aggregate principal amount not to
exceed $1,450,000 and to execute a bond purchase agreement for the purchase of the Bonds with
NSI, provided that the total debt service on the Bonds is lower by at least $ and the
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present value of this reduction in debt service is not less than 3% of the debt service on the
Refunded Bonds, exclusive of any premium, computed to their stated maturity dates, using the
yield of the Bonds as the discount rate.
5. Ratification. Upon approval of the sale of the Bonds by the City Manager and
Finance Manager, the City Council will take action at its next regularly scheduled or special
meeting thereafter to adopt the necessary approving resolutions as prepared by the City's bond
counsel.
G. Official Statement. NSI is authorized to prepare an Official Statement related to the
sale of the Bonds.
7. Sunset. If the City Manager and Finance Manager have not approved the sale of the
bonds to NSI and executed the related bond purchase agreement by December 31, 2009, this
resolution shall expire.
This resolution shall be in full force and effect from and after its passage.
ADOPTED by the Eden Prairie City Council on September 15,200 .
it Young,May
ATTEST: SEAL
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Kq&leen Porta, City Clerk
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