HomeMy WebLinkAboutResolution 84-38COL UMBIA HEIGHTS
RESOLUTION NO.
MOTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,070,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1984
OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA
It is hereby resolved by the City Council of the City of Columbia Heights
(the 'qssuer") as follows:
1. Findings, Authorization.
1.1 It is hereby found and determined that it is necessary and
expedient to the sound financial management of the Issuer and The Housing
and Redevelopment Authority in and for the City of Columbia Heights,
Minnesota (the "Authority") for the Issuer to issue its general obligation tax
increment bonds in order to provide funds to pay public redevelopment costs
of a redevelopment project (the '~Project") established pursuant to Minnesota
Statutes Section 462.411 et seq. and the CBD Revitalization Plan, as
modified (the "Plan") pursuant to which was established a Tax Increment
Financing Redevelopment District.
1.2 The Issuer is authorized by Minnesota Statutes, Section 273.77
to (a) issue its general obligation bonds for the purpose of financing
expenditures of the Authority incurred pursuant to Minnesota Statutes,
Section 273.75, subd. 4; and (b) to provide for the issuance of such bonds in
the manner provided by, and subject to the limitations of, Minnesota
Statutes, Chapter 475.
1.3 The Issuer is further authorized by Minnesota Statutes, Section
475.56, to issue additional bonds in an amount not exceeding two percent of
the amount otherwise authorized to be issued, representing interest to assist
in marketing its bonds.
2. Sale of Bonds.
2.1 In order to provide funds to pay the publiee redevelopment
costs of the Project in accordance with the Plan, the Issuer shall issue its
General Obligation Tax Increment Bonds, Series 1984 (the '~Bonds") in the
principal amount of $1,050,000 and shall issue Bonds representing additional
interest in the amount of $20,000 for an aggregate principal amount of
Bonds equal to $1,070,000. Any excess of the purchase price of the Bonds
over the sum of $1,050,000 shall be credited to the debt service fund for the
Bonds to pay interest first due on the Bonds.
2.2 The Bonds shall be issued, sold and delivered in accordance
with the following Official Terms of Bond Offering:
OFFICIAL TERMS OF OFFERING
$1,070,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1984
CITY OF COLUMBIA HEIGHTS, MINNESOTA
Sealed bids for the Bonds will be opened on Monday, June 11, 1984, at i1:00
dclock a.m., Central Time, at the City Offices, 590 40th Avenue N.E., Columbia
Heights, Minnesota 55421. Consideration of the award of the Bonds will be by the
City Council on the same day, at 7:30 dclock p.m. Central Time.
DETAILS OF THE BONDS
The Bonds will be dated June 1, 1984 and will bear interest payable March 1
and September 1 of each year commencing on March 1, 1985. Interest will be
computed upon the basis of a 360-day year of twelve 30-day months and will be
rounded pursuant to the rules of the MSRB. The Bonds will be issued in registered
form in denominations of $5,000 and integral multiples thereof not exceeding a
Single maturity.
The Bonds will mature on March 1 in the following years and amounts:
Year Amount
1986 $ 90,000
1987 95,000
1988 100,000
1989 105,000
1990 115,000
1991 125,000
1992 135,000
1993 145,000
1994 160,000
Bonds maturing on or after March 1, 1992 are subject to redemption on March
1, 1991 and any interest payment date thereafter at a price equal to par plus
accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will
pledge certain collections of tax increment and its full faith and credit and power
to levy direct general ad valorem taxes. The proceeds will be used to pay the ec~ts
of a redevelopment project established pursuant to Minnesota Statutes Chapter
462. '
TYPE OF BID
A sealed bid for r{ot less than $1,050,000 and aeerued interest on the total
principal amount of the Bonds to the date of delivery shall be filed with the
undersigned prior to the time set for the .opening of bids. Also prior to the time set
for bid opening, a certified or cashier's check in the amount of $20,000 payable to
the order of the City shall have been filed with the undersigned or Miller &
Schroeder Municipals, Inc., the City's Financial Advisor. No bid will be considered
for which said check has not been filed. The check of the Purchaser will be
retained by the City as liquidated damages in the event the Purchaser fails to
comply with the accepted bid. No bid shall be withdrawn after the time set for
opening bids, unless the meeting of the City scheduled for consideration of the bids
is adjourned, recessed, or continued to another date without award of the Bonds
having been made. The rates offered by bidders shall be in integral multiples of
5/100 or 1/8 of 1%. No rate shall exceed, nor shall the net effective rate for the
entire Issue of the Bonds exceed the maximum rate permitted by law. Obligations
of the same maturity shall bear the same rate from the date of the Bonds to the
date of maturity, not exceeding the rate specified for any subsequent maturity by
more than 1%, and additional coupons shall not be used.
AWARD
The Bonds will be awarded to the Bidder offering the lowest dollar interest
cost to be determined by the deduction of the premium, if any, from, or the
addition of any amount less than par, to, the total dollar interest on the Bonds from
their date to their final scheduled maturity. The City's computation of the total
net dollar interest cost of each bid, determined in accordance with customary
practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of
any bid or of matters relating to the receipt of bids and award of the Bonds, (ii)
reject all bids without cause, and, (iii) reject any bid which the City determines to
have failed to comply with the terms herein.
REG~TRAR
The City shall name the Registrar and paying agent for the Bonds, which
shall be subject to appreciable SEC Regulations. The City shall pay the customary
charges for the service.
CUSIP 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 assignment and printing to be done at the expense of the
purchaser, if the purchaser waives any extension of the time of delivery caused
thereby.
SETTLE MENT
On or about forty days from the sale of the Bonds, the Bonds will be
delivered without cost to the Purchaser at a place mutually satisfactory to the
City and the Purchaser. Delivery will b~ subject to receipt by the Purchaser of an
approving legal opinion of Holmes & Graven, Chartered of Minneapolis, Minnesota,
which opinion will be printed on the Bonds, and of customary closing papers,
including a no-litigation certificate. On the date of settlement payment for the
Bonds shall be made in federal, or equivalent, funds which shall be received at the
offices of the City or its designee not later than 1:00 P.M., Central Time of the
date of settlement.
At settlement the Purchaser will be furnished with a certificate signed by
appropriate officers of the City to the effect that the Official Statement did not
as of the date of the Official Statement, and does not as of the date of settlement,
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
OFFICIAL STATE MENT
? Upon request to the City's Financial Advisor, Miller & Schroeder Municipals,
Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55431, prior to the bid
opening underwriters may obtain a copy of the Official Statement.
Dated
, 1984 BY ORDER OF THE CITY COUNCIL
City Manager
Award of Bonds~ Advertisement~ Meeting.
3o 1o
The City Manager of the Issuer is authorized and directed to
cause advertisement for sealed bids for the purchase of the
Bonds to be published in the manner required by Minnesota
Statutes, Chapter 475, and in any additional publications as
the City Manager .may determine to be suitable. Such
advertisement for sealed bids shall be in substantially the
following form:
OFFICIAL NOTICE OF SALE
$1,070,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1984
CITY OF COLUMBIA HEIGHTS, MINNESOTA
Notice is hereby given that the City of Columbia Heights, Minnesota (the
"County") will receive sealed bids at the City officers at 590 40th Avenue N.E.,
Columbia Heights, Minnesota on Monday, June 11, 1984, until 11:00 a.m., Central
Time, for the purchase of its $1,070,000 General Obligation Tax Increment Bonds,
Series 1984 (the "Bonds"). The City Manager will then open and record the bids.
The City Council will consider the award of the Bonds at 7:30 p.m. Central Time
the same day.
The Bonds will be dated June 1, 1984, will bear interest payable on March 1
and September 1 of each year, commencing March 1, 1985. The Bonds will be
issued in integral multiples of $5,000 as requested by the Purchaser, and will be
fully registered as to principal and interest.
The Bonds will mature March 1 in the amounts and years as follows:
Year Amount
1986 $ 90,000
1987 95,000
1988 100,000
1989 105,000
1990 115,000
199I 125,000
1992 135,000
1993 145,000
1994 160,000
Bonds due on or after March 1, 1992 will be subject to redemption, in whole
or in part at par plus accrued interest, at the City's option on March 1, 1991, and
on any interest payment date thereafter. If less than all of the Bonds are
redeemed, Bonds will be redeemed in reverse order of maturity and by lot within a
single maturity.
4
The City will furnish the approving legal opinion of Holmes & Graven,
Chartered, of Minneapolis, Minnesota. A copy of the legal opinion will be
reproduced on the printed Bonds. Copies of the detailed Official Terms of Offering
and additional information may be obtained from the City Manager of the City or
from Miller & Schroeder Municipals, Inc:, 7900 Xerxes Avenue South, Minneapolis,
Minnesota 55431.
Dated: May 21 , 1984
BY ORDER OF THE CITY COUNCIL
3.2. City Manager is directed to open bids for the Bonds at 11:00 a.m.
Central Time on June 11, 1984. The Issuer will meet at 7:30 p.m. on the
same day, to consider the award of the sale of the Bonds.
Adopted by the City Council of the City of Columbia Heights this 21st day
of May, 1984.
Offered by: Peterson
Seconded by: Carlson
Roll Call: All ayes
~'Studen%, CounciT~Secretary
Bruce . Nawrocki, ~yor