City Council Resolution 1989-17CITY OF MONTICELLO, MINNESOTA
RESOLUTION NUMBER 1989-17
RESOLUTION AUTHORIZING ISSUANCE OF $260,000
GENERAL OBLIGATION TAXABLE TAX INCREMENT
BONDS, SERIES 1989A OF THE CITY OF
MONTICELLO
BE IT RESOLVED by the City Countil (the "Council") of the City of
Monticello, Minnesota (the "City"), as follows:
1. Bond Purpose and Authorization Sale.
a. Pursuant to the provisions of Minnesota Statutes, Chapters 469
and 475, the City is authorized to issue bonds for the purposes of providing
funds to finance certain public redevelopment costs of a project (the
"Project") undertaken pursuant to Minnesota Statutes, Chapter 469.
b. It is hereby found, determined and declared that (i) the
issuance of the Series 1989A Bonds is necessary and desireable to provide
funds to finance certain public redevelopment costs of the Project in the
City; and (ii) to provide for issuance costs thereof; and that the City should
issue, and the City hereby authorizes and directs the issuance and sale of,
its General Obligation Taxable Tax Increment Bonds, Series 1989A in the
aggregate principal amount of $260,000 (the "Bonds").
2. Sale. This Council shall meet at the time and place specified in the
form of the Official Notice of Sale for the Bonds attached hereto as Exhibit A for
the purpose of opening and considering sealed bids for, and awarding the sale of the
Bonds.
3. Notice of Bond Sale. The Council hereby authorizes the publication
of notice of advertisement for sealed bids for the Bonds in the official newspaper
of the City, and in Commercial West, in substantially the form attached hereto as
Exhibit A. Each and all of the terms and provisions set forth in such notice are
adopted and confirmed as the terms and conditions of the Bonds and the sale
thereof.
4. Official Terms of Offering. The Official Terms of Offering of the
Bonds in substantially the form attached hereto as Exhibit B shall constitute the
terms and conditions for the sale of the Bonds, and the Council hereby authorizes
the incorporation of such terms and conditions in the material to be distributed to
prospective bidders for the Bonds.
Information and bidding forms may be obtained from the undersigned or
from Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul,
Minnesota 55101-2143; telephone 612-223-3000, financial consultants to the City.
Dated this 12th day of June, 1989.
~ ~.~_
Mayor
Attest:
_,t-~_~
Ad inistrator
EXHIBIT A
OFFICIAL NOTICE OF SALE
City of Monticello, Minnesota
=260,000 General Obligation Taxable Taa Increment Bonds
Series 1989A
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of $260,000
General Obligation Taxable Tax Increment Bonds, Series 1989A (hereinafter
referred to as the "Bonds") of the City of Monticello, Minnesota (the "Issuer") will
be received until 12:00 noon, Central Time, on the 10th day of July, 1989, at the
offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota 55101-2143, at which time any bids received will be opened and
tabulated. Bids of not less than $255,320 and accrued interest on the Bonds will be
considered. The bids will be considered and acted upon by the City Council (the
"Council") at a meeting of the Council at ?:30 p. m., Central Time, of the same day.
The Bonds will be issued pursuant to Minnesota Statutes, Chapters 475 and
469, for the purpose of financing certain public redevelopment costs within the
City of Monticello. The Bonds will be issued as fully registered bonds in
denominations of $5,000, or any integral multiples thereof as requested by the
purchaser, will be dated August 1, 1989, and will mature serially on February 1 in
the following years and amounts:
YEAR AMOUNT YEAR AMOUNT
1992 $ 5,000 2000 $ 15,000
1993 5,000 2001 20,000
1994 5,000 2002 20,000
1995 10,000 2003 20,000
1996 10,000 2004 25,000
1997 10,000 2005 25,000
1998 15,000 2006 30,000
1999 15,000 2007 30,000
Interest will be payable on each February 1 and August 1, commencing February 1,
1990. The Bonds maturing on or after February 1, 2000, will be subject to
redemption and prepayment on February 1, 1999 and any interest payment date
thereafter, at a price equal to par plus accrued interest.
Exhibit B
OFFICIAL TERMS OF OFFERING
5260,000
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1989A
Sealed bids for the Bonds will be received by the City on Monday, July 10, 1989, until
12:00 Noon, Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place,
Suite 100, Saint Paul, Minnesota 551 01-21 43 after which time they will be opened and
tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated August 1, 1989, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1990. 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:
1992 $ 5,000 1996 $10,000 2000 $15,000 2004 $25,000
1993 $ 5,000 1997 $10,000 2001 $20,000 2005 $25,000
1994 $ 5,000 1998 $15,000 2002 $20,000 2006 $30,000
1995 $10,000 1999 $15,000 2003 $20,000 2007 $30,000
OPTIONAL REDEMPTION
The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or
after February 1, 2000. Redemption may be in whole or in part and if in part, in inverse order
of maturity 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 from the City's Tax Increment Financing District No. 1-2. The proceeds will
be used for the acquisition of property and site improvements.
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 $255,320 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 $2,600,
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 /S of 1 %. There is
no limit on the interest rate spread 'rf bid in ascending order; however, no rate for any maturity
shall be more than 1 % lower than any prior rate. 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.
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
If 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
Underwriters may obtain a copy of the Official Statement by request to the City's Financial
Advisor prior to the bid opening. The purchaser will be provided with 25 copies of the Official
Statement.
Dated June 12, 1989
BY ORDER OF THE CITY COUNCIL
/s/ Rick Wolfsteller
Administrator
_ CERTIFICATION OF MINUTES
Issuer: The City of Monticello
Governing body: City Council
Meeting: A meeting of the City Council of the City of Monticello,
Minnesota held on the 12th day of June, 1989, at 7 : oo p . m . at
the City Hall in the City of Monticello, Minnesota.
Council Members
present: Kenneth Maus, Shirley Anderson, Dan Blonigen, Frances Fair
and Warren Smith
Council Members
absent: None
Documents: A copy of a resolution adopted by the City Council of the City
of Monticello at said meeting.
Certification:
I, Rick Wolfsteller, Administrator of the City of Monticello 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 of Monticello, which resolution was adopted by the
City Council, at the meeting referred to above. Said meeting was a
reQUlar meeting of the City Council, was open to the public, and was held
at the time and place at which meetings of the City Council are regularly held.
Member Fair moved the adoption of the attached resolution. The
motion for adoption of the attached resolution was seconded by Member
Smith A vote being taken on the motion, the following voted in favor of
the resolution: Maus, Anderson, Blonigen, Fair and Smith
and the following voted against the resolution: None
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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 City
Council of the City of Monticello which would in any way alter or amend the
attached resolution.
Wi ness my hand officially as the Administrator of the City of Monticello
this 1~~ay of June , 1989.
City , dministrator
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