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HomeMy WebLinkAboutOrdinance 915Ordinance No. 915 BEING AN ORDINANCE PROVIDING FOR PUBLIC SALE OF $8,175,000 GENERAL OBLIGATION TAX INCREM-ENT BONDS OF 1980 The City of Columbia Heights does ordain: 1. It is hereby found, determined and declared that this City should issue $8,175,000 General Obligation Tax Increment Bonds of 1980 (the "Bonds") pursuant to Minnesota Statutes S 462.585, to defray the public redevelopment cost of Downtown C.B.D. Revitalization Project, a "redevelopment project" pursuant to Minnesota Statutes $ 462.411 et seq. 2. Ehlers and Associates, Inc., bond consultants to the City, has presented to this Council a form of Official Notice of Bond Sale for the Bonds to be sold and issued, and a form of abbreviated Notice of Bond Sale for publication, Which are attached hereto, and which are hereby approved. This Council shall meet at the time and place specified in the form of the Official Notice of Bond Sale hereinafter contained for the purp. ose of opening and considering sealed bids for, and awarding the sale of said $8,175,000 General Obligation Bonds of 1980. 3. Each and all of the terms and provisions of the following form of Official Notice of Bond Sale are hereby adopted as attached hereto as Exhibit A as the terms and conditions of said bonds and of the sale thereof. 4. This ordinance shall be in full force--and effect from after thirty (30) days after its passage. /~ I// . First Reading: June 25, 1980 Second Reading: July 7, 1980 Offered by: Logacz Seconded by: Hentges Roll Call: I. ogacz, Heintz, Hentges, No rberg--abs ta i n Date o~ Passage: July 7, 1980 Nawrocki--aye -f;ecretary to the'F~ouncil EXHIBIT A TERMS AND CONDITIONS FOR RECEIPT OF BIDS AND AWARD OF SALE $8,175,000 GENERAL OBLIGATION TAX INCREME~IT BONDS, SERIES 1980 CITY OF COLUMBIA HEIGHTS, MINNESOTA The City Council of the City of Columbia Heights, Minnesota, will meet at City Hall in Columbia Heights, Minnesota, on the llth day of August, 1980, at 7:00 p.m., C~D.T., to receive, open and consider bids for and award the sale of $8,175,000 General Obligation Tax Increment Bonds, Series 1980 (the "Bonds"). No bids will be opened and no bonds will be sold in the event that the Ordinance Providing for Public Sale of $8,175,000 General Obligation Tax Increment Bonds of 1980, to be adoPted July 7, 1980 does not become effective on August 6, 1980. PURPOSE The Bonds will be issued for the purpose of providing funds for a redevelopment project within the City, in accordance with the provisions of Minnesota Statutes, Chapters 273,462 and 475. DATEr TYPE~ DENOMINATION~ MATURITIES AND REDEMPTION The Bonds will be dated September 1, 1980, will be issued as negotiable investment securities, in bearer form, with attached interest coupons, will be in the denomi- nation of $5,000 each unless designated otherwise by the purchaser within 48 hours of award of sale, and will mature on March i in the following years and amounts: Year Amount Year Amount 1983 $ 10,000 1991 $425,0Q0 1984 $ 10,000 1992 475,000 1985 --- 1993 525,000 1986 140,000 1994 550,000 1987 190,000 1995 650,000 1988 250,000 1996-2001 700,000 1989 300,000 2002 100,000 1990 350,000 Bonds maturing in 1991 and later years will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers on March 1, 1990, and any interest payment date thereafter, at the following prices plus accrued interest to the date of redemption: Redemption Date Redemption Priee March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter par plus 2% par plus 1.5% par PAYING AGENT Principal and interest will be made payable at a suitable bank in the United States recommended by the purchaser and approved by the City Council, and the City will pay the customary charges for this service provided that such re_commendation is received within 48 hours after the sale, and the City Council will select the paying agent if the recommendation is not approved, o INTEREST PAYMENT DATES~ RATES Interest will be payable semiannually on each March 1 and September 1, com- mencing March 1, 1981. Ail bonds of the same maturity must bear interest at a single uniform rate from date of issue to maturity, not exceeding 12% per annum, expressed as an integral multiple of 5/100 of 1% per annum, represented by a single set of coupons. No rate of any maturity may be lower that the highest rate carried by any of the preceding maturities. DELIVERY The City will furnish without cost to the purchaser and within 40 days after award of sale, the printed and executed Bonds, the legal opinion referred to below, and the usual no-litigation certificate. Delivery will be made without cost to the purchaser at the place of the purchaser's choice. Payment of the Bonds must be made in funds immediately available to the City on the date of delivery. LEGAL OPINION An opinion as to the validity of the Bonds and the tax exempt nature of the interest thereon will be furnished by Holmes & Graven, Chartered, of Minneapolis, Minnesota. The legal opinion will be printed on the Bonds at the request of the purchaser. The legal opinion will state that the Bonds are valid and binding general obligations of the City. TYPE OF BID AND AWARD Sealed bids for not less than $8,060,000 and accrued interest on the principal sum of $8,175,000 must be mailed or delivered to the undersigned and must be received prior to the time of said meeting. Bidders must bid for all or none of the Bonds. Each bid. must be unconditional and must be accompanied by a cashier's check or bank draft in the amount of $163,500, payable to the City Clerk-Treasurer, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost, determined by the addition of any discount to and the deduction of any premium from the total interest on all Bonds from their date to their stated maturity, will be deemed the most favorable. The net effective rate on all Bonds may not exceed 12% per annum. In the event that two or more bids state the lowest net interest cost, the sale of the Bonds will be awarded by lot. The City reserves the right to reject any and all bids, to waive informalities in any bid, and to adjourn the sale. 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 printing to be done at the expense of the [~urchaser, if the purchaser waives any extension of the time of delivery caused thereby. Information for bidders and bidding forms may be obtained from the undersigned or -from Ehlers and Associates, Inc., 507 Marquette Avenue, Minneapolis, Minnesota 55402, telephone 612-339-8291, Financial Specialists. BY ORDER OF THE CITY COUNCIL NOTICE OF BOND SALE $8,175,000 GENERAL OBLIGATION TAX INCREMENT, SERIES 1980 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE IS HEREBY GIVEN that the City.Council of the City of Columbia Heights, Minnesota, w}ll meet in Columbia Heights, Minnesota, on the llth day of -August, 1980, at 7:00 p.m., C.D.T., to receive, open and consider sealed bids for and award the sale of $8,175,000 General Obligation Tax Increment Bonds, Series 1980 (the "Bonds"). In the event that the Ordinance Providing for Public Sale of $8.,175,000 General Obligation Tax Increment Bonds of 1980 adopted July 7, 1980 does not become effective on August 6, 1980, no bids will be opened and no bonds will be sold. The Bonds will be issued for the purpose of providing funds for a redevelopment project within the City. The Bonds will be issued as bearer bonds, in the donomination of $5,000 each, will be dated as of September 1, 1980, and will mature serially on March 1 in the following years and amounts: Year Amount Year Amount 1983 $ 10,000 1991 $425,000 1984 $ 10,000 1992 475,000 1985 --- 1993 525,000 1986 140,000 1994 550,000 1987 190,000 1995 650,000 1988 250,000 1996-2001 700,000 1989 300,000 2002 100,000 1990 350,000 Interest will be payable semiannually on each March 1 and September 1, com- mencing March 1, 1981. Bonds maturing in 1991 and later years shall be subject to redemption and prepayment on March 1, 1990, and any interest payment date thereafter at the following prices plus accrued interest: Redemption Date Redemption Price March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter par plus 2% par plus 1.5% par An opinion as to the validity of the Bonds and the tax-exempt nature of the interest thereon will be furnished by Holmes & Graven, Chartered, of Minneapolis, Minnesota. Copies of a statement of Terms and Conditions for Receipt of Bids and Award of Sale and additional information may be obtained from the undersigned or from Eh]ers and Associates, Inc., 507 Marquette Avenue, Minneapolis, Minnesota 55402, telephone: 612-339-8291, Financial Specialists. Dated: , 1980. BY ORDER OF THE CITY COUNCIL