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HomeMy WebLinkAboutOrdinance 1012ORDINANCE NO. 1012 ORDINANCE PROVIDING FOR PUBLIC SALE OF $t~50,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1982, $2,550,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS OF 1982 The City Council of the City of Columbia Heights, Minnesota does ordain as follows: I. Authorization of Sale. (a) It is hereby found, determined and declared that this City should issue Sql0,000 General Obligation Tax Increment Bonds of 1952 (the !'Tax Increment Bonds") pursuant to Minnesota Statutes, Section 273.77, to defray certain public redevelopment costs of the Downtown C.B.D. Revitalization Pro}ect, a "redevelopment proiect", pursuant to Minnesota Statutes, Section q62.#I 1 et seq. (b) This Council has heretofore ordered or will order certain local improvements (the "Improvements") to be constructed in the City, and has contracted or will contract for the construction of the Improvements, pursuant to Minnesota Statutes, Chapter 429. It is hereby determined to be necessary and expedient for the City to sell and issue its General Obligation Permanent Improvement Revolving Fund Bonds (the "Improvement Bonds"), in the principal amount of $2,550,000 to defray the expense incurred in making the Improvements, including every item of cost of the kinds authorized in Minnesota Statute. S, Section 47~.65. 2. Sale. This Council shall meet at the time and place specified in the form of Official' Notice of Bond Sale for the Tax Increment Bonds, and the Official Notice of Bond Sale for the Improvement Bonds contained herein, for the purpose of opening and considering sealed bids for, and awarding the sale of said $#50,000 General Obligation Tax Increment Bonds of 1982, and said $2,550,000 General Obligation Permanent Improvement Revolving Fund Bonds of 1982. 3. Notice of Sale. The City Manager is hereby authorized and directed to cause notice of the time, place and purposes of said meeting to be published in the official newspaper of the City, and in Commercial West, published in Minneapolis, Minnesota, and in such other publications as he shall determine, at least once not less than ten days before the date of said meeting, in substantially the following forms: -1- NOTICE OF BOND SALE $t~50,000 GENERAL OBLIGATION TAX INCREMENT BONDS, CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE I$ HEREBY GIVEN that sealed bids for the purchase of these bonds will be received until I 1:00 a.m., C.D.T., on the 25th day of October, 1982, in the office of the City Manage~ of the City of Columbia Heights, Minnesota, at which time the bids will be opened and tabulated. Bids ot not less than $~t43,250 and accrued interest on the principal sum of $050,000 will be accepted lot the $~50,000 General Obligation Tax Increment Bonds (the "Tax Increment Bonds"). The bids will be considered and acted upon by the City Gouncil at g:00 p.m., C.D.T. on the same date. The Tax Increment Bonds will be issued tot the purpose of providing funds for a redevelopment project within the City in accordance with the' provisions of Minnesota Statutes, Chapters 273, l~62 and 1~75. The Tax Increment Bonds will be in the denomiriation of $5,000, will be dated December 1, 1982, and will mature on December 1, 1985. Interest will be payable on December 1, 1983~ and semiannually on each 3une I and December I thereafter. All Tax Increment Bonds shall be subject to redemption and prepayment on December 1, 1983, at a price equal to 100.596 of their principal amount and accrued interest to the date of redemption, and on any interest payment date thereafter at a price equal to 10096 of their principal amount and accrued interest. No rate of interest nor the net effective rate of the issue may exceed the statutory limitation. An approving legal opinion for the bonds will be furnished by Holmes & Graven of Minneapolis, Minnesota. Copies of the detailed Terms and Conditions of Sale and additional information for the bonds may be obtained irom the undersigned or from the financial consultants to the City: MILLER & SCHROEDER MUNICIPALS, INC. Northwestern Financial Center 7900 Xerxes Avenue South Minneapolis, Minnesota 55831 (612) 831-1500 Dated: BY ORDER OF THE CITY COUNCIL City Manager -2- NOTICE OF BOND SALE $2,550,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS OF 1982 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of these bonds will be received until I1:00 a.m., C.D.T., on the 25th day of October, in the office of the City Manager of the City of Columbia Heights, Minnesota, at which time the bids' will be opened and tabulated. Bids of not less than $2~§II,7§0 and accrued interest on the principal sum of $2,550,000 will be accepted for the $2~550,000 General Obligation Permanent Improvement Revolving Fund Bonds of 1982 (the "Improvement Bonds"). The bids will be considered and acted upon by the City Council at 8:00 p.m., C.D.T. on the same date. The Improvement Bonds will be issued for the purpose of financing various improvement projects within the City. The Improvement Bonds will be in the denomination of $5,000, will be dated December I, 1982, and will mature on December 1, 1985. Interest will be payable on December 1, 1983, and semiannually on each June I and December 1 thereafter. All Improvement Bonds shall be subiect to redemption and prepayment on December 1, 1983 at a price equal to 100.5% of their principal amount and accrued interest, and on any interest payment date thereafter at a price equal to 10096 of their principal amount and accrued interest. No rate of interest nor the net effective rate of the issue may exceed the statutory limit. An approving legal opinion for the bonds will be furnished by Holmes & Graven of Minneapolis, Minnesota. Copies of the detailed Terms and Conditions of Sale and additional information for the bonds may be obtained from the undersigned or from the financial consultants to the City: MILLER & SCHROEDER MUNICIPALS, INC. Northwestern Financial Center 7900 Xerxes Avenue South Minneapolis, Minnesota 55#31 (612) 831-1500 Dated: BY ORDER OF THE CITY COUNCIL City Manager -3- 4. Terms and Conditions of Sale. The followin§ statements of Terms and Conditions of Sale shall constitute the terms and conditions for the sale and issuance o! the Tax Increment Bonds and the improvement Bonds, respectively, and such terms and conditions are hereby authorized to be incorporated in material distributed to prospective bidders for each issue of bonds: OFPICIAL TERMS OF BOND SALE $~;~0,000 GENERAL OBLIGATION TAX INCREMENT BONDS CITY OF COLUMBIA HEIGHTS~ MINNESOTA Sealed bids for the purchase of these bonds will be received until 11:00 a.m., C.D.T, on the 25th day of 'October, I952, in the office of the City Manager of the City of Columbia Heights, at which time the bids will be opened and tabulated. The'bids will be considered and acted upon by the City Council at 5:00 p.m.s C.D.T. on the same date. PURPOSE The Tax Increment 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. DATEt TYPE~ DENOMINATION~ AND SECURITY The Tax Increment Bonds will be dated December I, 1982, will be issued as negotiable investment securities, will be non-registrable in bearer form with attached interest coupons and unless designated otherwise by the purchaser within 45 hours after award of sale will be in the denomination of $5,000 each. The Tax Increment Bonds will be general obligations of the Issuer for which its full faith and credit and unlimited taxing powers will be pledged in addition to the pledge of certain tax increment. MATURITIES AND REDEMPTION The Tax Increment Bonds will mature on December 1, 1955. All Tax Increment Bonds will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers, on December 1, 1983, at a price equal to 100.5% of their principal amount and accrued interest to the date of redemption, and on any interest payment date thereafter at a price equal to 100% of their principal amount and accrued interest to the date of redemption. PAYING AGENT Principal and interest will be made payable at any suitable bank in the United States recommended by the purchaser and approved by the City Council, and the City will pay customary and reasonable charges for this service provided that such recommendation is received within 45 hours after the sale. The City Council will select the paying agent if the recommendation is not approved. INTEREST PAYMENT DATES~ RATES Interest will be-payable on December 1, 1983, and semiannually thereafter on each 3une 1 and December 1. All Tax Increment Bonds must bear interest from date of issue until paid at a singles uniform rate. The rate must be in an integral multiple of 5/100 of 196. No rate of interest nor the net effective rate of the issue may exceed the statutory limitation. -5- DELIVERY Within ~0 days after sale and without cost to the purchaser the Issuer will furnish and deliver, at a place mutually satisfactory to the Issuer and the Purchaser, the printed and executed Tax Increment Bonds. Delivery will be 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 Tax Increment Bonds, and of a certificate stating that no litigation in any manner questioning the validity o! the Tax Increment Bonds is then threatened or pending. The charge of the delivery agent must be paid by the purchaser, but all other costs, with the exception of the printing of CUSIP numbers as indicated, will be paid by the City. The purchase price must be paid upon delivery of the Tax Increment Bonds, in funds available for expenditure by the City on the date of payment. TYPE OF BID AND AWARD Sealed bids for not less than $##3,250 must be mailed or delivered to the City Clerk and must be received prior to the time of said deadline. Each bid must be unconditional and must be accompained by a cashier's check, certified check, or bank draft in the amount of $9,000, payable to the City Treasurer to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid offering the lowest net interest cost, (total interest on all Tax Increment Bonds from date thereof to their maturities, less any cash premium or plus any amount less than $#50,000 bid for principal) will be deemed the most favorable. In the event that two or more bids state the lowest net interest cost, the sale of the Tax Increment Bonds will be awarded by lot. No oral bid and no bid of less than $##3,250 for principal, plus accrued interest on all of the Tax Increment Bonds, will be considered. The City reserves the right to reject any and all bids, to waive any informality 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 Tax Increment 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. Information for bidders and bidding forms may be obtained from the undersigned or from Miller & Schroeder Municipals, Inc., Northwestern Financial Center, 7900 Xerxes Avenue South, Minneapolis, Minnesota 55#31; teJephone: (612) 831-1500, financial consultants to the City. Dated: BY ORDER OF THE CITY COUNCIL City Manager -6- OFFICIAL TERMS OF BOND SALE $2,550,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS OF 1982 CITY OF COLUMBIA HEIGHTS, MINNESOTA Sealed bids ior the purchase of these Improvement Bonds will be received until 11:00 a.m., C.D.T., on the 25th day of October, 1982, in the office of the City Manager of the City of Columbia Heights, Minnesota, at which time the bids will be Opened and tabulated. The bids will be considered and acted upon by the City Council at 8:00 p.m., C.D.T. on the same date. PURPOSE The Improvement Bonds will be issued for the purpose of financing the cost of constructing various improvement projects within the City, in accordance with the provisions of Minnesota Statutes, Chapters 429 and 475. DATEr TYPE~ DENOMINATION~ AND SECURITY The Improvement Bonds will be dated December 1, 1982, will be issued as negotiable investment securities, will be non-registrable in bearer form with attached interest coupons and unless designated otherwise by the. purchaser within 48 hours after award of sale will be in the denomination of $5,000 each. The Improvement Bonds will be general obligations of the Issuer for which its full faith and credit and unlimited taxing powers will be pledged in addition to special assessments against benefited property. MATURITIES AND REDEMPTION The Improvement Bonds will mature on December 1, 1985. All Improvement Bonds will be subiect to redemption and prepayment at the option of the City in inverse order of serial numbers, on December 1, 1983, at a price equal to 100.5% of their principal amount and accrued interest to the date of redemption, and on any interest payment date thereafter at a price equal to 100% of their principal amount and accrued interest to the date of redemption. PAYING AGENT Principal and interest will be made payable at any suitable bank in the United States recommended by the purchaser and approved by the City Council, and the City will pay customary and reasonable charges for this service provided that such recommendation is received within 48 hours after the sale and the City Council will select the paying agent if the recommendation is not approved. INTEREST PAYMENT DATESt RATES Interest will be' payabJe on December 1, 1983, and semiannually thereafter on each 3une 1 and December 1. All Improvement Bonds must bear interest from date of issue until paid at a single, uniform rate. The rate must be in an integral multiple of 5/100 of 196. No rate of interest nor the net effective rate of the issue may exceed the statutory limit. -7- DELIVERY Within 40 days after sale and without cost to the purchaser the Issuer will furnish and deliver, at a place mutually satisfactory to the Issuer and the Purchaser, the printed and executed Improvement Bonds. Delivery will be 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 Improvement Bonds, and of a certificate stating that no litigation in any manner questioning the validity of the Improvement Bonds is then threatened or pending. The charge of the delivery agent must be paid by the purchaser, but all other costs, with the exception of the printing of CUSIP numbers as indicated, will be paid by the City. The purchase price must be paid upon delivery of the Improvement Bonds, ha funds available for expenditure by the City on the date of payment. TYPE OF BID AND AWARD Sealed bids for not less than $2,511,750 must be mailed or delivered to the City Clerk and must be received prior to the time of said deadline. Each bid must be unconditional and must be accompained by a cashier's check or certified check or bank draft in the amount of $51,000, payable to the City 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, (total interest on all Improvement Bonds from date thereof to their maturities, less any cash premium or plus any amount less than $2,550,000 bid for principal) will be deemed the most favorable. In the event that two or more bids state the lowest net interest cost, the sale of the Improvement Bonds will be awarded by lot. No oral bid and no bid of less than 82,511,750 for principal, plus accrued interest on all of the Improvement Bonds, will be considered. The City reserves the right to reject any and all bids, to waive any informality 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 Improvement 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. Information for bidders and bidding forms may be obtained from the undersigned or from Miller & Schroeder Municipals, Inc., Northwestern Financial Center, 7900 Xerxes Avenue South, Minneapolis, Minnesota 55~31; telephone: (612) 831-1500, financial consultants to the City. Dated: BY ORDER OF THE CITY COUNCIL City Manager -8- 5. Official Statement. The City Manager, in cooperation with Miller & Schroeder Municipals, Inc., financial consultants to the City, is hereby authorized and directed to prepare on behalf of the City an official statement to be distributed to potential purchasers of the Tax Increment Bonds and the Improvement Bonds or either of them. Such official statement shall contain the statements of Terms and Conditions of Sale for each issue of bonds set forth in paragraph ~ and such other-information as shall be deemed advisable and necessary to adequately describe the City and the security, terms and conditions of the Tax Increment Bonds and the Improvement Bonds. At settlement the purchaser or purchasers will be furnished with a certificate signed by appropriate officers of the Issuer on behalf of the Issuer to the effect that the Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact neceisary in order to make statements therein, in light of the circumstances ~def f~hich they, were Mayor First Reading: August 23, 1982 Second Reading: September I3~ 1982 Offered by: Hentges Seconded by: Hovland Roll Call: Hovland, Pekkoff, Hentges, Nawrocki--aye Norberg--nay Date of Passage: September 13, 1982 f- Secretary to-'l'i~e ~OunCil -9-