City Council Resolution 1985-25MONTICELLO
RESOLUTION NO. 1985-25
MOTION PROVIDING FOR THE ISSUANCE AND SALE OF $350,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985
OF THE CITY OF MONTICELLO, MINNESOTA
It is hereby resolved by the City Council of the City of Monticello (the
"Lssuer") 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 and The Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota (the
"Authority") for the Issuer to issue its general obligation tax increment bonds in
order to provide funds to pay capital and administrative costs of a Development Project
(the "Project") established pursuant to Minnesota Statutes section 472A.
1.2 The Issuer pursuant to Minnesota Statutes, Sections 273.71 through
273.78 has established Tax Increment Financing Redevelopment District No. 6
within its Tax Increment Development District No. 1 and pursuant to a Tax
Increment Financing Plan (the "Plan") adopted as of November 12, 1985. The
Issuer is authorized by Minnesota Statutes, Section 273.77 to (a) issue its general
obligation bonds for the purpose of financing expenditures of the Authority
incurred pursuant to Minnesota Statutes, Section 273.75, subd. 4; 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 in accordance with the Plan, the Issuer shall issue its General Obligation
Tax Increment Bonds, Series 1985 (the "Bonds") in the principal amount of
$350,000. Any excess of the purchase price of the Bonds over the sum of $343,350
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
publications 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
$350,000
GBNERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985
CITY OF MONTICELLO, MINNESOTA
Notice is hereby given that the City of Monticello, Minnesota (the
"City") will receive sealed bids on Monday, December 9, 1985. Bids will
be received by the City Administrator or his designee until 12:00 Noon,
Central Time, at the offices of Springsted Incorporated, at which time
they will be opened and tabulated for consideration and award by the City
Council at a regular meeting of the Coucnil at 7:30 P.M., Central Time,
on that date.
The Bonds will be dated December 1, 1985, will bear interest payable on
February 1 and August 1 of each year, commencing August 1, 1986. The Bonds will
be issued in integral multiples of $5,000 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 Year Amount
1989 10,000 1998 20,000
1990 10,000 1999 20,000
1991 10,000 2000 20,000
1992 10,000 2001 25,000
1993 10,000 2002 25,000
1994 15,000 2003 30,000
1995 15,000 2004 30,000
1996 15,000 2005 35,000
1997 15,000 2006 35,000
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 & 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 Clerk-Administrator of the
City or from Springsted, Incorporated, 800 Osborn Building, St. Paul, Minnesota
55102.
Dated: November 12, 1985
BY ORDER OF THE CITY COUNCIL
3.2. Sealed bids for the Bonds will be opened by the City Council on
Monday, December 9, 1985, at 7:30 p.m., Central Time, at the City Municipal
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Building. Consideration for award of the Bonds will immediately follow the
opening of bids.
Adopted by the City Council of the City of Monticello this 12th day of
November, 1985.
Offered by: J. Maxwell
Seconded by: W, Fair
Roll Call: Grimsmo, Blonigen, W. Fair, F. Fair & Maxwell
Mayor
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Appendix A
OFFICIAL TERMS OF OFFERING
$350,000
CITY OF MONT (CELLO, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985
Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday,
December 9, 1985, at 12:00 Noon, Central Time, at the offices of Springsted Incorporated, 800
Osborn Building, Saint Paul, Minnesota. Consideration for award of the Bonds will be by the City
Council at 7:30 P.M., Central T ime, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated December I, 1985, as the date of original issue, and will bear interest
payable on February I and August I of each year, commencing August I, 1986. 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 integral multiples of $5,000 of a single
maturity, 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 of the calendar month next
preceding the interest payment.
The Bonds will mature February I in the amounts and years as follows:
$10,000 1989-1993 $20,000 1998-2000 $30,000 2003-2004
$15,000 1994-1997 $25,000 2001-2002 $35,000 2005-2006
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 Financing District Number 6. The proceeds will be
used to finance eligible project costs within Tax Increment Development District Number I.
TYPE OF BID
A sealed bid for not less than $343,350 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 $3,500, 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/l00 or I/8 of I %. No rate for
any maturity shall be more than 196 lower than any prior rate. No rate nor the net effective rate
IFor the entire Issue of the Bonds shall exceed the maximum rate permitted by law. 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 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 & 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 of the day of settlement. 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 I fable 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 15 copies of the Official
Statement.
Dated November 12, 1985
BY ORDER OF THE CITY COUNCIL
/s/Thomas A. Eidem
Clerk-Administrator