HomeMy WebLinkAboutResolution - HRA 93-3 - Lease Revenue Bonds - City Hall Project, Series 1993A - 04/06/1993 Commissioner Harris introduced the following
resolution and moved its adoption:
RESOLUTION NO. 93-3
RESOLUTION RELATING TO $1, 415,000 LEASE REVENUE BONDS
(CITY HALL PROJECT) , SERIES 1993A; AWARDING THE SALE,
FIXING THE FORM AND DETAILS AND PROVIDING FOR THE
EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR
WHEREAS, pursuant to the authority granted by Sections
469 .034 and 469 .035 of the Housing and Redevelopment Act,
Minnesota Statutes, Section 469. 001 to 469.047, as amended (the
Act) , and Minnesota Statutes, Chapter 475, as amended, the Housing
and Redevelopment Authority in and for the City of Eden Prairie,
Minnesota (the Authority) is authorized to issue from time to time-
its revenue bonds for any of its authorized corporate purposes;
and
WHEREAS, the Authority has heretofore determined to
undertake a project (the Project) , consisting of the acquisition
• of certain real property in the City of Eden Prairie, Minnesota
(the City) and an existing building located thereon, a portion of
which (the Governmental Space) is being rehabilitated and leased
with an agreement to sell to the City pursuant to a Series B Lease
Agreement, dated as of December 1, 1992, between the Authority and
the City (the Series B Lease) for use as a city hall and City
offices, and the remainder of which (the Subleased Space) is being
leased with an agreement to sell to the City pursuant to a Series
C Lease Agreement, dated as of December 1, 1992, between the
Authority and the City, for sublease to certain private entities;
and
WHEREAS pursuant to a Trust Indenture, dated as of
December 1, 1992 (the Original Indenture) , between the Authority
and First Trust National Association, in St . Paul, Minnesota, as
Trustee (the Trustee) , the Authority has issued its Lease Revenue
Bonds (City Hall Project) , Series 1992B (the Series B Bonds) and
its Taxable Lease Revenue Bonds (City Hall Project) , Series 1992C
(the Series C Bonds) to finance the costs of the Project; and
WHEREAS, the City has requested that the Authority issue
its Lease Revenue Bonds (City Hall Project) , Series 1993A, in the
principal amount of $1, 415, 000 (the "Bonds") , to finance
completion of the rehabilitation of the Governmental Space; and
WHEREAS, the Bonds will be issued under the Original
• Indenture, as amended and supplemented by a First Supplemental
Trust Indenture, dated as of May 1, 1993 (the First Supplemental
Indenture) , by and between the Authority and the Trustee (the
• Original Indenture, as supplemented and amended by a First
Supplemental Trust Indenture, is referred to herein as the
Indenture) and will be secured by a pledge and assignment of the
Series B Lease, as supplemented and amended by a First Amendment
to Series B Lease Agreement, dated as of May 1, 1993 (the First
Amendment to Lease) , between the Authority and the City (the
Series B Lease, as supplemented and amended by the First Amendment
to Lease, is referred to herein as the Lease) , and of the
revenues, derived by the Authority from the Project, and said
bonds and the interest on said bonds shall be payable solely from
the revenue pledged therefor and no such bonds shall constitute a
debt of the Authority within the meaning of any constitutional or
statutory limitation nor shall contitute nor give rise to a
pecuniary liability of the Authority or a charge against its
general credit or taxing powers and shall not constitute a charge,
lien, or encumbrance, legal or equitable, upon any property of the
Authority other than its interest in said Project; and
WHEREAS, under the Lease, the City is to pay to the
Authority sufficient money each year to pay the principal of,
premium, if any, and interest on the bonds issued to finance the
Project, and City is to provide the cost of maintaining the
Project in good repair, the cost of keeping the Project properly
insured, and any payments required for taxes and any expenses
incurred by the Authority in connection with the Project; and
• WHEREAS, the Authority's financial consultant,
Springsted Incorporated, as an independent financial advisor
pursuant to Minnesota Statutes, Section 475. 60, subdivision 2,
paragraph (9) , has solicited bids for the Bonds on behalf of the
Authority, which bid has been opened and read and considered, and
the purchase price, interest rates and net interest cost under the
terms of such bid are as set forth in Exhibit A attached hereto.
NOW, THEREFORE, BE IT RESOLVED by the Board of
Commissioners of the Housing and Redevelopment Authority in and
for the City of Eden Prairie, as follows :
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• Section 1. Pursuant to the First Amendment to Lease,
the financing by the Authority of the completion of the
rehabilitation of the Governmental Space portion of the Project,
is hereby authorized.
Section 2 . For the purpose of paying the costs of
completing the Project, there is hereby authorized the issuance of
Lease Revenue Bonds (City Hall Project) , Series 1993A of the
Authority in the aggregate principal amount of $1, 415, 000 (the
Bonds) . The Bonds shall be issued in fully registered form, shall
be in such denominations, shall be payable on the dates and in the
principal amounts and shall be payable from the sources and in the
manner provided in the First Supplemental Indenture. -The Bonds
shall bear interest at the rates set forth in Section 6. This
Board hereby authorizes and directs the Chairman to execute and
the Secretary to attest under the corporate seal of the Authority
the First Supplemental Indenture in the name and on behalf of the
Authority and to deliver to the Trustee the First Supplemental
Indenture, and does hereby authorize and direct the execution of
the Bonds in accordance with the provisions of the Indenture.
All of the provisions of the First Supplemental
Indenture, when executed as authorized herein, shall be deemed to
be a part of this resolution as fully and to the same extent as if
incorporated herein. The Indenture shall be substantially in the
• form on file in the office of the Secretary with such necessary
and appropriate variations, omissions and insertions as the
Chairman, in his discretion, shall determine, and the execution
thereof by the Chairman shall be conclusive evidence of such
determination.
Section 3 . The Chairman and the Secretary are hereby
authorized and directed to execute and deliver the First Amendment
to Lease in the name and on behalf of the Authority. All of the
provisions of the Lease, when executed and delivered as authorized
herein, shall be deemed to be a part of this resolution as fully
and to the same extent as if incorporated herein. The First
Amendment to Lease shall be substantially in the form on file in
the office of the Secretary, with such necessary and appropriate
variations, omissions and insertions as the Chairman, in his
discretion, shall determine, and the execution thereof by the
Chairman shall be conclusive evidence of such determinations .
Section 4 . No covenant, stipulation, obligation or
agreement herein contained or contained in the Indenture, the
Bonds or the Lease shall be deemed to be a covenant, stipulation,
obligation or agreement of any member of this Board or any
officer, agent or employee of the Authority in that person's
individual capacity, and neither this Board nor any officer
executing the Bonds shall be liable personally on the Bonds or be
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subject to any personal liability or accountability by reason of
the issuance thereof.
Section 5 . The officers of the Authority are hereby
authorized to do all acts and things required of them by or in
connection with this resolution, the Indenture and the Lease for
the full, punctual and complete performance of all the terms,
covenants and agreements contained in the Bonds, the Indenture,
the Lease and this resolution, including the execution and
delivery of such closing certificates, arbitrage certifications
and similar documents as may be required by bond counsel in
connection with the issuance and delivery of the Bonds.
Section 6 . A proposal has been received for the
purchase of the Bonds, submitted by Cronin & Company, Inc. ,
of Minneapolis , Minnesota , and associates (the
Purchaser) , to purchase the Bonds at a price of $1 ,390 ,237. 50 ,
plus accrued interest to the date of closing, the Bonds maturing
in the following years to mature in the principal amounts and to
bear interest at ' the designated rates set forth below opposite
such years, respectively:
Principal Interest Principal Interest
Maturity Amounts Rate Maturity Amounts Rate
1997 $ 60, 000 4. 50% 2005 $ 85, 000 5. 70%
1998 65, 000 4. 70 2006 90, 000 5. 75
• 1999 65, 000 4. 90 2007 95, 000 5. 80
2000 70, 000 5.10 2008 100, 000 5. 85
2001 70, 000 5. 25 2009 110, 000 5. 90
2002 75, 000 5. 40 2010 115, 000 6 . 00
2003 80, 000 5. 50 2011 120, 000 6. 00
2004 85, 000 5. 60 2012 130, 000 6. 00
Said offer is hereby accepted and the Chairman and the Secretary
are hereby authorized and directed to execute a contract on the
part of the Authority for the sale of the Bonds to the Purchaser.
Section 7 . The Official Statement prepared and
distributed on behalf of the Springsted, Incorporated is hereby
approved. The officers of the Authority are hereby authorized and
directed to execute such certificates as may be appropriate
concerning the accuracy, completeness and sufficiency of the
Official Statement .
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. Section 8 . County Auditor Registration and
Certification of Proceedings .
The Secretary is hereby authorized and directed to file
a certified copy of this resolution with the County Auditor of
Hennepin County, together with such other information as the County
Auditor shall require, and to obtain from said County Auditor a
certificate that the Bonds have been entered on the County Auditor' s
bond register.
The officers of the Authority are authorized and
directed to prepare and furnish to the Purchaser, and to Dorsey &
Whitney, the attorneys rendering an opinion as to the-legality
thereof, certified copies of all proceedings and records of the
Authority relating to the authorization and issuance of the Bonds
and such other affidavits and certificates as may reasonably be
required to show the facts relating to the legality and
marketability of the Bonds as such facts appear from the officer' s
books and records or are otherwise known to them. All such
certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the
Authority as to the correctness of all -statements contained
therein.
Section 9 . Arbitrage Rebate. The Authority
acknowledges that the Bonds are subject to the rebate requirements
of Section 148 (f) of the Code. The Authority covenants and agrees
to retain such records, make such determinations, file such
reports and documents and pay such amounts at such times as are
required under said Section 148 (f) (C) of the Code and no "gross
proceeds" of the Bonds (other than amounts constituting a "bona
fide debt service fund") arise during or after the expenditure of
the original proceeds thereof. In furtherance of the foregoing,
the Chairman and the Secretary are hereby authorized and directed
to execute an Arbitrage and Rebate Certificate, in the form
prepared by Bond Counsel .
Section 10 . This resolution shall be in full force and
effect from and after its passage.
•
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Adopted by the Board of CN
' of the Housing and
Redevelopment Authority of the City rie, Minnesota,
this 6th day of April, 1993.
. /dig
Chairman
Attest :
Secretary
•
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The motion for the adoption of the foregoing resolution was
duly seconded by Commissioner Pidcock and, upon vote being taken
thereon, the following Commissioners voted in favor thereof:
Douglas Tenpas , H. Martin Jessen, Jean Harris, Patricia Pidcock
and the following voted against the same: none
whereupon the resolution was declared duly passed and adopted.
•
EXHIBIT A
P
SPRINGSTED
222 South t],nth Street
PUBLIC FINANCE ADVISORS r Suite 2825
dinneapol s. MN 55402-3368
(612) 333-9177
. Fax: (612) 333-2363
Home Office
85 East Seventh Place 16655 West Bluemound Road
Suite 100 Suite 290
Saint Paul,MN 55101-2143 Brookfield. WI 53005-5935
(612) 223-3000 (414) 782-8222
Fax: (612) 223-3002 Fax: (414) 782.2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
Fax: (913) 345-1770
1800 K Street NW
Suite 831
Washington, DC 20006-2200
(202) 466-3344
Fax: (202) 223-1362
$1,415,000
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF EDEN PRAIRIE, MINNESOTA
LEASE REVENUE BONDS
(CITY HALL PROJECT),SERIES 1993A
(CITY OF EDEN PRAIRIE, MINNESOTA LEASE-PURCHASE AGREEMENT)
AWARD: CRONIN & COMPANY, INCORPORATED
• SMITH BARNEY, HARRIS UPHAM &COMPANY INCORPORATED
SALE: April 6, 1993 Moody's Rating: A
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
CRONIN&COMPANY(, INCORPORATED 4.50% 1997 $1,390,237.50 $1,026,601.25 5.9208%
SMITH BARNEY, HARRIS UPHAM & 4.70% 1998
COMPANY INCORPORATED 4.90% 1999
5.10% 2000
5.25% 2001
5.40% 2002
5.50% 2003
5.60% 2004
5.70% 2005
5.75% 2006
5.80% 2007
5.85% 2008
5.90% 2009
6.00% 2010-2012
• (Continued)
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
DAIN BOSWORTH INCORPORATED 4.75% 1997 $1,391,652.50 $1,051,273.13 6.0621%�
PIPER JAFFRAY INC. 5.00% 1998
Craig-Hallum, Incorporated 5.10% 1999
5.25% 2000
5.40% 2001
5.50% 2002
5.60% 2003
5.75% 2004
5.90% 2005
6.00% 2006-2007
6.05% 2008-2009
6.10% 2010-2012
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These Bonds are being reoffered at par.
BBI: 5.86
Average Maturity: 12.32 Years
•
•
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
DAIN BOSWORTH INCORPORATED 4.75% 1997 $1,391,652.50 $1,051,273.13 6.0621%
PIPER JAFFRAY INC. 5.00% 1998
Craig-Hallum, Incorporated 5.10% 1999
5.25% 2000
5.40% 2001
5.50% 2002
5.60% 2003
5.75% 2004
5.90% 2005
6.00% 2006-2007
6.05% 2008-2009
6.10% 2010-2012
These Bonds are being reoffered at par.
BBI: 5.86
Average Maturity: 12.32 Years