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City Council Resolution 1987-08MONTICELLO RESOLUTION NO. 87-g RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $365,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1987A OF THE CITY OF MONTICELLO, MINNESOTA It is hereby resolved by the City Council of the City of Monticello (the "Issuer") 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 for the Issuer to issue its general obligation tax increment bonds for the purpose of providing funds to pay public redevelopment costs associated with the Issuer's Tax Increment Financing Redevelopment District Number 5 (the "Project") undertaken by the Issuer pursuant to Minnesota Statutes, Sections 273.71 to 273.78. 1.2 The Issuer is authorized by Minnesota Statutes, Section 273.77 to (a) issue its general obligation bonds for the purpose of providing funds to meet the costs of the Project; 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. 2. Sale of Bonds. 2.1 In order to provide funds to pay the public redevelopment costs of the Project, the Issuer shall issue its General Obligation Tax Increment Bonds, Series 1987A (the "Bonds") in the principal amount of $ 365, 000. Any excess of the - purchase price of the Bonds over the sum of $358,480 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 Official Terms of Bond Offering, attached hereto as Appendix A. 3. Award of Bonds, Advertisement, Meeting. 3.1 The Clerk-Administrator 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 gublications as the Clerk-Administrator may determine to be suitable. Such advertisement for sealed bids shall be in substantially the following form: OFFICIAL NOTICE OF SALE $365,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1987A CITY OF MONTICELLO, MINNESOTA Notice is hereby given that the City of Monticello, Minnesota (the "City") will receive sealed bids on Monday, April 27, 1987. Bids will be received by the City Administrator or his designee until 12:30 P.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143, at 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. The Bonds will be dated June 1, 1987, will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1988. The Bonds will be issued in integral multiples of $5,000 of a single maturity, as requested by the Purchaser, and will be fully registered as to principal and interest. The Bonds will mature February 1 in the amounts and years as follows: Year Amount 1990-1992 $30,000 1993-1995 $35,000 1996-1997 $40,000. 1998-1999 $45,000 Bonds due on or after February 1, 1996, will be subject to redemption, in whole or in part at par plus accrued interest, at the City's option on February 1, 1995 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. The City will furnish the approving legal opinion of Holmes be 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 Administrator of the City or from Springsted Incorporated. Dated: March 23, 1987 BY ORDER OF THE CITY COUNCIL 2 3.2. Sealed bids for the Bonds will be opened by the Clerk-Administrator or his designee on Monday, April 27, 1987, at 12:30 P.M., Central Time, at the offices of Springsted Incorporated, in Saint Paul, Minnesota. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time of the same day. Adopted by the City Council of the City of Monticello this 23rd day of March, 1987. Offered by: Seconded by: Roll Call: i Clerk-A inistrator Mayor 3 Appendix A OFFICIAL TERMS OF OFFERING $365,000 CITY OF MONTICELLO, MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1987A Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, April 27, 1987, at 12:30 P.M., Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143. 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 June I, 1987, as the date of original issue, and will bear interest payable on February I and August I of each year, commencing February 1, 1988. Interest will be computed upon 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 his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February I in the amounts and years as follows: $30,000 1990-1992 $40,000 1996-1997 $45,000 1998-1999 $35,000 1993-1995 OPTIONAL REDEMPTION The City may elect on February I, 1995, and on any interest payment date thereafter, to prepay Bonds due on or after February I, 1996. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot 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 its Tax Increment Redevelopment Financing District Number 5. The proceeds will be used to finance the public costs associated with the City's Tax Increment Redevelopment District Number 5. TYPE OF BID A sealed bid for not less than $358,480 and accrued interest on the total principal amount of the Bonds 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 $3,650, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, 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. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. 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. Rates offered by Bidders shall be in integral multiples of 5/ 100 or I /8 of I.0%. No rate for any maturity shall be more than I .S% 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. AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the remium if an from or the addition of any amount less than par, to, the total p ~ Y> > 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 fail for theeassi I nment ofu CUSIPr dent f icat on' numbershshallnbe pad byUthe Service Bureau charge 9 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 & 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 I:00 P.M., 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 reason of the Purchaser's non-compliance with said terms for payment. 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 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 20 copies of the Official Statement. Dated March 23, 1987 BY ORDER OF THE CITY COUNCIL /s/ Thomas A. Eidem Administrator