City Council Resolution 1990-34CITY OF MONTICELLO, MINNESOTA
RESOLUTION NUMBER 90-34
RESOLUTION AUTHORIZING ISSUANCE AND PROVIDING FOR
THE PUBLIC SALE OF $305,000 GENERAL OBLIGATION TAXABLE
TAX INCREMENT BONDS, SERIES 1990D
BE IT RESOLVED by the City Council ("this Council") of the City of Monticello,
Minnesota (the "City"), as follows:
1. Findings, Authorization.
a. It is hereby found and determined that it is necessary and expedient
to the sound financial management of the City for the City to issue
its general obligation taxable tax increment bonds in order to provide
funds to pay certain capital and administrative costs of
Redevelopment District No. 1 (the "Project") established pursuant to
Minnesota Statutes, Sections 469.124 to 469.134.
b. The City, pursuant to Minnesota Statutes, Sections 469.174 through
469.179 has established Tax Increment Financing District 1-9 and Tax
Increment Financing District 1-10 within the Project pursuant to tax
increment financing plans (the "Plans") adopted on
August 13 , 1990 and August 13 , 19 90 ,respectfully.
The City is authorized by Minnesota Statutes, Section 469.178 to
issue its general obligation bonds for the purpose of financing
the Issuer's capital and administrative costs of a development district
pursuant to Minnesota Statutes, Sections 469.124 to 469.134.
2. Sale. The Bonds shall be offered for sale under a Notice of Bond Sale in the
form attached hereto as Exhibit A (the "Notice of Bond Sale"). This Council
shall meet at the time and place specified in the form of Notice of Bond
Sale for the purpose of opening and considering sealed bids for, and awarding
the sale of the Bonds. The Bonds shall mature on February 1 in the years
and amounts as follows:
Year Amount
1993 $30,000
1994 30,000
1995 35,000
1996 35,000
1997 40,000
1998 45,000
1999 45,000
2000 45,000
Notice of Bond Sale. The City Administrator of the City is directed to cause
notice of advertisement for sealed bids for the purchase of the Bonds to be
published in the official newspaper of the City, in Northwestern Financial
Review and any other publication at the option of the City Administrator, in
substantially the form of the Notice of Bond Sale, no fewer than ten days
before the date of the Council meeting referred to above. Each and all of
the terms and provisions set forth in the Notice of Bond Sale are adopted
and confirmed as the terms and conditions of the Bonds and the sale thereof.
4. Terms and Conditions of Bond Sale. The terms and conditions of sale in
substantially the form set forth in the Official Terms of offering attached
hereto as Exhibit B and incorporated herein by reference, shall constitute
the terms and conditions for the sale of the Bonds, and this Council hereby
authorizes the incorporation of such terms and conditions in the material to
be distributed to prospective bidders for the Bonds.
Adopted this 17th day of September, 1990.
-~~-z
Attest: Mayo
Ci Administrator
EXHHIBIT A
OFFICIAL NOTICE OF SALE
City of Monticello, Minnesota
X305,000 General Obligation Taxable Tax Increment Bonds
Series 1990D
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of $305,000
General Obligation Taxable Tax Increment Bonds, Series 1990D (hereinafter
referred to as the "Bonds") of the City of Monticello, Minnesota (the "City") will be
received until 11:00 a. m., Central Time, on the 15th day of October, 1990, at the
offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, at which time any bids received will be opened and tabulated. Bids of
not less than $301,185 plus accrued interest on the total principal amount of the
Bonds will be received for the Bonds. The bids will be considered and acted upon
by the City Council of the City at a meeting of the Council at 7:00 p. m., Central
Time on October 15, 1990.
The Bonds will be issued as fully registered bonds in denominations of
$5,000, or any authorized integral multiple thereof, will be dated November 1, 1990
and will mature serially on February 1 in the following years and amounts:
Year Amount
1993 $30,000
1994 30,000
1995 35,000
1996 35,000
1997 40,000
1998 45,000
1999 45,000
2000 45,000
Interest will be payable on August 1, 1991, and semiannually on each February 1
and August 1 thereafter. Bonds maturing on or after February 1, 1997 shall be
subject to redemption and prepayment on February 1, 1996 and any date
thereafter at a price equal to par plus accrued interest.
An approving legal opinion for the Bonds will be furnished by Holmes do
Graven, Chartered, of Minneapolis, Minnesota. Copies of the detailed Official
Terms of offering and additional information for the Bonds may be obtained from
the undersigned or from the financial consultants of the City:
A-1
SPRINGSTED Incorporated
85 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
Telephone: (612) 223-3000
Dated: Date of Publication) BY ORDER OF THE CITY COUNCIL
OF THE CITY OF MONTICELLO,
_ MINNESOTA
By
City Administrator
A-2
EXHIBIT B
OFFICIAL TERMS OF OFFERING
3305,000
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1990D
Sealed bids for the Bonds will be received by the City Administrator or his designee on
Monday, October 15, 1990, until 11:00 A.M., Central Time, at the offices of SPRINGSTED
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they
will be opened and tabulated. Consideration for award of the Bonds will be by the City Council
at 7:00 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated November 1, 1990, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1991. Interest will
be computed on the basis of a 360-day year of twelve 30-day months and will be rounded
pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each,
or in integral multiples thereof, as requested by the purchaser, and fully registered as to
principal and interest. Principal will be payable at the main corporate office of the registrar and
interest on each Bond will be payable by check or draft of the registrar mailed to the registered
holder thereof at the holder's address as it appears on the books of the registrar as of the
close of business on the 15th day of the immediately preceding month.
The Bonds will mature February 1 in the years and amounts as follows:
1993 $30,000 1996 $35,000 1999 $45,000
1994 $30,000 1997 $40,000 2000 $45,000
1995 $35,000 1998 $45,000
OPTIONAL REDEMPTION
The City may elect on February 1, 1996, and on any day thereafter, to prepay Bonds due on or
after February 1, 1997. Redemption may be in whole or in part and if in part, at the option of
the City and in such order as the City shall determine and within a maturity by lot as selected
by the registrar. All prepayments shall be at a price of par and accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax
increment income generated from Tax Increment Financing Districts contained in
Redevelopment District 1. The proceeds will be used to finance the public costs associated
with Tax Increment Financing Districts 1-9 and 1-10 located in Redevelopment District 1.
TAXABILITY OF INTEREST
The interest to be paid on the Bonds is includable in gross income of the recipient for United
States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate
and bank excise taxes measured by net income.
TYPE OF BID
Bids shall be for not less than $301,185 and accrued interest on the total principal amount of
the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $3,050,
payable to the order of the City. No bid will be considered for which said check has not been
received. The City will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser
fails to comply with the accepted bid, said amount will be retained by the City. No bid can be
withdrawn after the time set for receiving bids unless the meeting of the City scheduled for
award of the bids is adjourned, recessed, or continued to another date without award of the
Bonds having been made. Rates shall be in integral multiples of 5/100 or 1 /8 of 1 %. Rates
must be in ascending order. Bonds of the same maturity shall bear a single rate from the date
of the Bonds to the date of maturity. No conditional bid will be accepted.
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, 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.
BOND INSURANCE AT PURCHASER'S OPTION
ff the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the bidder, the purchase of any such insurance policy or the issuance
of any such commitment shall be at the sole option and expense of the purchaser of the
Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
CUSIP NUMBERS
H the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Holmes 8 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 12:00 Noon, Central Time. Except as
compliance with the terms of payment for the Bonds shall have been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by
the City by reasons of the purchaser's non-compliance with said terms for payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement as required by Rule 15c2-12 of the Securities and Exchange Commission. For
copies of the Official Statement and the Official Bid Form or for any additional information prior
to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone
(612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting an Official Bid Form therefor, the City agrees
that, no more than seven business days after the date of such award, it shall provide without
cost to the senior managing underwriter of the syndicate to which the Bonds are awarded
25 copies of the Official Statement and the addendum or addenda described above. The City
designates the senior managing underwriter of the syndicate to which the Bonds are awarded
as its agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid is accepted by the City (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Bonds for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
Dated September 17, 1990 BY ORDER OF THE CITY COUNCIL
/s/ Rick Wolfsteller
Administrator
CERTIFICATE OF MINDTBS
city:
County:
State:
Governing Body:
Monticello
Wright
Minnesota
City Council
Meeting: A meeting of the City Council (the "Council") of the City of
Monticello, Minnesota (the "City") held on the 17th day of September,
1990, at 7:00 p.m., at the Council Chambers, 250 Broadway,
Monticello, Minnesota.
Council Members
Present: Mayor Ken Maus, Frances Fair, Warren Smith
Council Members
Absent: Shirley Anderson, Daniel Blonigen
Documents: A copy of the Resolution Authorizing Issuance and Providing
for the Public Sale of $305,000 General Obligation Taxable
Tax Increment Bonds, Series 1990D
Certification:
I, the City Administrator of the City do hereby certify the following:
Attached hereto is a true and correct copy of a resolution on file and of
record in the offices of the City, which resolution was adopted by the Council at
the meeting referred to above. Said meeting was a regular meeting of the Council,
was open to the public, and was held at the place at which meetings of the Council
are regularly held. Council member smith moved the
adoption of the attached resolution. The motion for adoption of the attached
resolution was seconded by Council member Fair A vote
being taken on the motion, the following voted in favor of the resolution:
Maus, Fair and Smith
the following voted against the resolution: None
Whereupon said resolution was declared duly passed and adopted. The attached
resolution is in full force and effect and no action has been taken by the Council
which would in any way alter or amend the attached resolution.
Witness my hand officially as the acting City Administrator of the City, this
day of September, 1990.
City dministrator