HomeMy WebLinkAboutResolution - HRA 92-04 - Issuance of Lease Revenue Bonds for Community Center Project, Series 1992A - 07/07/1992 Commissioner H-M- Jessen introduced the following
resolution and moved its adoption:
RESOLUTION NO. 92-04
RESOLUTION RELATING TO $2, 640, 000 LEASE REVENUE BONDS
(COMMUNITY CENTER PROJECT) , SERIES 1992A; AUTHORIZING
THE ISSUANCE, AWARDING THE SALE AND PRESCRIBING THE FORM
THEREOF AND AUTHORIZING THE EXECUTION OF AN INDENTURE OF
TRUST AND A LEASE-PURCHASE AGREEMENT
WHEREAS, the Authority is considering a project (the
"Project") , to be undertaken pursuant to Minnesota Statutes,
Section 469.012, Subdivision 1 (7) , consisting of the construction
of an addition and improvements to a community center facility
(the "Facility") located on certain real property (the "Land") in
the City of Eden Prairie, Minnesota;
WHEREAS, there is a need for providing the public
facilities comprising the Project and it is desirable and in the
best interest of the Authority to encourage and assist in the
Project; and
WHEREAS, it is proposed that the Authority issue its
revenue bonds pursuant to Minnesota Statutes, Sections 469.034 and
469 .035, and Chapter 475, as amended, and pursuant to a Trust
Indenture, dated as of August 1, 1992 (the "Indenture") , between
the Authority and First Trust Natiminal Assnninf-inji,as Trustee
(the "Trustee") , to provide funds to finance the Project, and
lease and agree to sell the Project so acquired and constructed to
the City of Eden Prairie, Minnesota (the "City") , pursuant to a
Lease-Purchase Agreement, dated as of August 1, 1992 (the
"Lease") , between the Authority, as lessor, and City, as lessee;
WHEREAS, all bonds issued under the Indenture will be
secured by a pledge and assignment of the Lease and of the
revenues derived by the Authority from the Project, and the bonds
and the interest thereon shall be payable solely from the revenues
pledged thereto and no bonds shall constitute a debt of the
Authority within the meaning of any constitutional or statutory
limitation nor shall the full faith, credit and taxing powers of
the Authority be pledged thereto; 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, by resolution adopted May 19, 1992, this Board
authorized the issuance of such bonds and directed that an
Official Statement be prepared to be used in the sale of the
bonds; and
WHEREAS, forms of the Lease and the Indenture and a form
of the Official Statement, dated June 24, 1992, have been
presented to this Board and are hereby ordered to be placed on
file in the office of the Secretary.
NOW, THEREFORE, BE IT RESOLVED by the Board of
Commissioners of the Housing and Redevelopment Authority in and
for the City of Eden Prairie, Minnesota (the "Authority") , as
follows :
Section 1 . This Board hereby finds that the Project is
an undertaking of the Authority authorized under Section 469.012,
Subdivision 1 (7) .
Section 2 . This Board acknowledges, finds, determines
and declares that it is in the best interests of the Authority to
finance the Project by the acquisition and construction thereof by
the Authority and lease thereof to the City since the Project will
provide needed public facilities .
Section 3 . For the purpose of paying certain of the
• costs of the- acquisition and construction of the Project, there is
hereby authorized the issuance of Public Facilities Revenue Bonds,
Series 1992A of the Authority in the aggregate principal amount of
$2, 640, 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 Indenture. The
Bonds shall bear interest at the rates set forth in Section 7 .
This Board hereby authorizes and directs the Chairman to execute
and the Secretary to attest under the corporate seal of the
Authority the Indenture in the name and on behalf of the Authority
and to deliver to the Trustee the 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 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 shall determine to be
necessary or appropriate, and the execution thereof by the
Chairman shall be conclusive evidence of such determination.
Section 4 . The Chairman and the Secretary are hereby
authorized and directed to execute and deliver the Lease in the
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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 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 shall determine to be necessary or
appropriate, and the execution thereof by the Chairman shall be
conclusive evidence of such determination.
Section 5 . 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
subject to any personal liability or accountability by reason of
the issuance thereof.
Section 6 . 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 7 . Pursuant to the resolution adopted May 19,
1992, Springsted Incorporated, as financial advisors to the
Authority, have prepared a form of Terms of Proposal for the
purpose of soliciting bids on the Bonds . Such form of Terms of
Proposal is hereby ratified and confirmed. The Authority has
received and opened bids for the Bonds and has publicly considered
the bids received. The bids received are summarized in the
bidding summary attached hereto. It is hereby found and
determined that the most favorable of said bids is that submitted
by Cronin & Co. , Inc. , of Minneapolis , Minnesota ,
and associates (the "Purchaser") , to purchase the Bonds at a price
of $ 2 ,600,400. 00 , 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:
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Principal Interest Principal Interest
Maturity Amounts Rate Maturity Amounts Rate
1994 $40,000 4.00% 2004 $125,000 6.00%
1995 50,000 4.20% 2005 135, 000 6.10%
1996 55,000 4.40% 2006 150,000 6.10%
1997 60, 000 4. 60% 2007 165, 000 6.15%
1998 70, 000 4. 80% 2008 175, 000 6.15%
1999 75, 000 5. 00% 2009 190, 000 6. 20%
2000 85, 000 5. 25% 2010 210, 000 6 .20%
2001 95, 000 5. 50% 2011 225, 000 6 . 25%
2002 105, 000 5. 70% 2012 245, 000 6 . 25%
2003 115, 000 5. 90% 2013 270,000 6 . 25%
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 8 . The Official Statement prepared and
distributed on behalf of the Authority by Springsted Incorporated
is hereby approved and the determination of the Secretary that the
Official Statement has been deemed final for purposes of SEC Rule
15c2-12 (b) (1) is hereby ratified and confirmed. 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 and to
deliver to the Purchaser within seven business days after the date
of adoption of this resolution copies of the Official Statement in
accordance with the Terms of Proposal, supplemented so as to
contain the terms of the Bonds as set forth in this resolution and
the reoffering and other information provided by the Purchaser for
inclusion in the Official Statement.
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 Commissioners of the Housing and
Redevelopment Authority in and for t City o Eden Prairie,
Minnesota, this 7th day of July, 19 2 .
l
Chairman
Attest:
Secretary
•
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The motion for the adoption of the foregoing resolution was
duly seconded by Commissioner R. Andersonand, upon vote being taken
thereon, the following Commissioners voted in favor thereof:
D. Tenpas, R. Anderson, H.M. Jessen, J. Harris, P. Pidcock
and the following voted against the same: none
whereupon the resolution was declared duly passed and adopted.
SPRINGSTED
222 South N"nth Street
PUBLIC FINANCE AD`OSORS Suite 2825
',l nneapolis, MN 55402-3368
x: (61 ) 333-23
-9177
Fax: (b12) 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
$2,640,000 Washington, DC 20006-2200
(202) 466-3344
HOUSING AND REDEVELOPMENT AUTHORITY
Fax: (202) 223-1362
IN AND FOR THE CITY OF EDEN PRAIRIE, MINNESOTA
LEASE REVENUE BONDS
(COMMUNITY CENTER PROJECT), SERIES 1992A
AWARD: CRONIN &COMPANY, INCORPORATED
SMITH BARNEY, HARRIS UPHAM, &COMPANY INCORPORATED
SALE: July 7, 1992 Moody's Rating: A
Interest Net Interest True Interest
udder Rates Price Cost Rate
CRONIN&COMPANY, INCORPORATED 4.00% 1994 $2,600,400.00 $2,348,200.00 6.1885%
SMITH BARNEY, HARRIS UPHAM& 4.20% 1995
COMPANY INCORPORATED 4.40% 1996
4.60% 1997
4.80% 1998
5.00% 1999
5.25% 2000
5.50% 2001
5.70% 2002
5.90% 2003
6.00% 2004
6.10% 2005-2006
6.15% 2007-2008
6.20% 2009-2010
6.25% 2011-2013
NORWEST INVESTMENT SERVICES, 4.00% 1994 $2,600,400.00 $2,355,142.50 6.2056%
INCORPORATED 4.25% 1995
JURAN&MOODY, INCORPORATED 4.40% 1996
MERRILL LYNCH&CO. 4.60% 1997
Moore,Juran and Company, Incorporated 4.90% 1998
5.10% 1999
5.30% 2000
5.50% 2001
5.70% 2002
5.90% 2003
6.00% 2004-2005
6.10% 2006-2007
6.20% 2008-2009
6.25% 2010-2011
6.30% 2012-2013 (Continued)
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
JOHN G. IUNNARD&COMPANY 4.00% 1994 $2,603,568.00 $2,357,477.00 6.2142%0
INCORPORATED 4.40% 1995
Park Investment Corporation 4.70% 1996
Miller&Schroeder Financial, Inc. 4.90% 1997
Dougherty, Dawkins,Strand& 5.10% 1998
Bigelow, Incorporated 5.30% 1999
5.50% 2000
5.70% 2001
5.80% 2002
5.90% 2003
6.00% 2004
6.10% 2005-2006
6.15% 2007
6.20% 2008-2009
6.25% 2010-2013
PIPER JAFFRAY, INC. 4.00% 1994 $2,597,760.00 $2,403,451.25 6.3454%
Robert W. Baird&Company, 4.50% 1995
Incorporated 4.75% 1996
Craig-Hallum, Incorporated 5.00% 1997
5.25% 1998
5.50% 1999
5.75% 2000
5.90% 2001
6.00% 2002-2003 •
6.10% 2004-2005
6.20% 2006
6.25% 2007-2008
6.30% 2009-2010
6.375% 2011-2013
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These Bonds are being reoffered at par.
BBI: 6.38
Average Maturity: 14.41 Years
0
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
JOHN G.KINNARD&COMPANY 4.00% 1994 $2,603,568.00 $2,357,477.00 6.2142%
INCORPORATED 4.40% 1995
Park Investment Corporation 4.70% 1996
Miller&Schroeder Financial, Inc. 4.90% 1997
Dougherty, Dawkins,Strand& 5.10% 1998
Bigelow, Incorporated 5.30% 1999
5.50% 2000
5.70% 2001
5.80% 2002
5.90% 2003
6.00% 2004
6.10% 2005-2006
6.15% 2007
6.20% 2008-2009
6.25% 2010-2013
PIPER JAFFRAY, INC. 4.00% 1994 $2,597,760.00 $2,403,451.25 6.3454%
Robert W. Baird&Company, 4.50% 1995
Incorporated 4.75% 1996
Craig-Hallum, Incorporated 5.00% 1997
5.25% 1998
5.50% 1999
5.75% 2000
5.90% 2001
6.00% 2002-2003
6.10% 2004-2005
6.20% 2006
6.25% 2007-2008
6.30% 2009-2010
6.375% 2011-2013
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These Bonds are being reoffered at par.
BBI: 6.38
Average Maturity: 14.41 Years