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1f. Hearing Date for Sale of Bonds of 1989 CITY OF --�I-P - 4i0 CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 • FAX (612) 937-5739 iMEMORANDUM TO: Mayor and City Council iFROM: Don Ashworth, City Manager DATE: November 20, 1989 iSUBJ: Approve Resolution Setting Hearing Date for the Sale of Bonds of 1989 i The attached resolutions should be consistent with documents i reviewed by the City Council at our worksession on November 14, 1989 . Approval of setting the proposed Bond Sale date for December 4, i1989 is recommended. i i i i i i i i /I I Extract of Minutes of Meeting of the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota ' Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at the City Hall in the City on Monday, November 20, 1989, com- mencing at 7:30 P.M. The following members of the Council were present: and the following were absent: *** *** *** ' The following resolution was presented by Councilmember who moved its adoption: RESOLUTION NO. RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $6,650,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1989A BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota (City) as follows: 1. It is hereby determined that: (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of Minnesota Statutes, Chapter 429 (Act); 1 1 NUV 15 '8' 15: HULML5 tzkHV'L11 F.? I/ Project Designation & Description: Total Project Cost Downtown Redevelopment; Lake Drive/ 1 Market Blvd., North Side: Combined Costs: Construction Costs $3,141,240 Land Acquisition 2,885,014 Administration 1,974,557 Capitalized Interest 426,938 Issuance Costs 114,854 Discount 86,450 (Less: Reinvestment earnings) 4,496 Total Bond Issue: $6,650,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $6,650,000 General Obligation Improvement Bonds, Series 1989A (Bonds) pursuant to the Act to provide financing for the Improvements. 2, To provide financing for the Improvements, the City will issue and sell Bonds in the amount of $6,563,550. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $86,450. The excess of the purchase price of the Bonds over the sum of $6,563,550 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Offering: • 1 1 1 1 NO7 16 '89 1E:28 HOLPMES & GRAVEN P.8 I . 3. The City Manager is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of ' Offering and to publish the abbreviated notice of sale attached hereto as Exhibit A in the manner required by law. The City Council will meet at 7:30 p.m. on Monday, December 4, 1989, to consider bids on the Bonds and take any other appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: ' whereupon the resolution was declared duly passed and adopted. I 1 .. 0 OFFICIAL TERMS OF OFFERING $6,650,000 - I CITY OF CHANHASSEN, MINNESOTA - GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1989A I Sealed bids for the Bonds will be received by the City Manager or his designee on Monday, I December 4, 1989, until 2:00 P.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 7:30 P.M., I Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1989, as the date of original issue, and will bear interest I payable on February 1 and August 1 of each year, commencing August 1, 1990. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded I 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 I 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. 1 1992 $300,000 1995 $300,000 1998 $750,000 2001 $925,000 1993 $300,000 1996 $675,000 1999 $825,000 2002 $700,000 I 1994 $300,000 1997 $700,000 2000 $675,000 OPTIONAL REDEMPTION I The City may elect on February 1, 1995, and on any day thereafter, to prepay Bonds due on or j after February 1, 1998. Redemption may be in whole or in part and if in part, in inverse order of I ( 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 IThe 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 I special assessments against benefited property. The proceeds will be used to finance the public costs of various projects within the City. TYPE OF BID I Bids shall be for not less than $6,563,550 and accrued interest on the total principal amount of I the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $66,500, 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 tails 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 1 • . i _ award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/5 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 IThe Bonds will be awarded to the bidder offering the lowest dollar interest cost t to be determined by the deduction of the premium, if any, from, or the addition of any amount less I 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. IThe 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, (if) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. I REGISTRAR I 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 I If the Bonds uali assignment q fy for assi g ent 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 Ithereto 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. ISETTLEMENT I Prior to December 31, 1989, 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, I 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 I 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 ;' Y q ty cal Advisor prior to the bid opening. The purchaser will be provided with 200 copies of the Official ( Statement. Dated November 20, 1989 BY ORDER OF THE CITY COUNCIL i 111 /s/Donald W. Ashworth City Manager ,' 1 ii - P >! 1V L- 1 `r' IIL'Lfi V[ VI'.CIYLIl r.v Exhibit A I NOTICE OF BOND BO SALE $6,650,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1989A CITY OF CHANHASSEN, CARVER AND HENNEPIN COUNTIES, MINNESOTA • NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 2:00, p.m., C.T. on Monday, December 4, 1989, in the offices of Springeted, Incorporated, 85 East Seventh Street, Suite 100, St. Paul, Minnesota, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7:30 p.m. on the same day. The bonds are offered on the following terms. The bonds will be dated December 1, 1989, will bear interest payable semiannually on each February 1 and August 1, commencing August 1, 1990, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount , 1992 $300,000 1998 $750,000 1993 300,000 1999 825,000 1994 300,000 2000 875,000 1995 300,000 2001 925,000 1996 675,000 2002 700,000 1997 700,000 The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1996 at a price of par plus accrued interest to date of redemption, Bidders must specify a price of not less than $6,563,550 plus accrued interest. A legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, Minneapolis, Minnesota. The proceeds of the bonds ' will be used to finance a portion of the costs of various assessable public improvements in the City. Bidders should be aware that the Official Statement to be distributed ' for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. BY ORDER OF THE CITY COUNCIL ' /s/ Donald W. Ashworth City Manager ' Dated: November 20, 1989. ' I Extract of Minutes of Meeting of the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota I Pursuant to due call and notice thereof a regular meeting of the City ' Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at the City Hall in the City on Monday, November 20, 1989, com- mencing at 7:30 P.M. I The following members of the Council were present: and the following were absent: I *** *** *** 1 The following resolution was presented by Member who moved its adoption: RESOLUTION NO. RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $835,000 GENERAL OBLIGATION ' CORPORATE PURPOSE BONDS, SERIES 1989C BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota (City) as follows: 1. It is hereby determined that: ' (a) at a duly called and regularly held special election on February 24, 1988, the voters of the City approved the issuance and sale by the City of $2,000,000 general obligation bonds of the City pursuant to Minnesota Statutes Chapter 475 (Act); (b) the purpose of the bonds as approved by the voters is to provide financing for the various capital acquisitions by the City ' (Costs); 1 NOV 1E '89 15:ZE HOLM ES & GRAVEN P.3 11 (c) the City has issued and sold its $1,200,000 General Obligation Y igation Bonds of 1988 to provide for a portion of the Costs; (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $835,000 General Obligation Corporate Purpose Bonds, Series 1989C (Bonds) to provide financA ing for additional Costs. 2. To provide financing for the Project, the City will therefore issue and sell its Bonds in the amount of $824,145. To provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $10,855. The excess of the purchase price of the Bonds over the sum of $824,145 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Offering: 4 II i 1 UY i, L a. VI-1-1,Ll9 p.4 1 I 3. The City Manager is authorized and directed to advertise the ' Bonds for sale in accordance with the foregoing Official Terms of Offering and to publish the abbreviated notice of sale attached hereto as Exhibit A in the manner required by law. The City Council will meet at 7:30 p.m. on Monday, December 4, 1989, to consider bids on the Bonds and take any other ' appropriate action with respect to the Bonds. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember , and upon vote being taken thereon the following members voted in favor of the motion: ' and the following voted against: 1 whereupon the resolution was declared duly passed and adopted. 1 1 1 i 1 i 1 1 1 i 3 f OFFICIAL.TERMS OF OFFERING $835,000 CITY OF CHANHASSEN, MINNESOTA , GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1989C Sealed bids for the Bonds will be received by the City Manager or his designee on Monday, I December 4, 1989, until 2:00 P.M., Central 'Mime, 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 7:30 P.M., I Central Time, of the same day. DETAILS OF THE BONDS ' The Bonds will be dated December 1, 1989, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 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 I 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: 1991 $10,000 1995 $50,000 1999 $65,000 2002 $80,000 I 1992 $40,000 1996 $55,000 2000 $70,000 2003 $85,000 1993 $45,000 1997 $60,000 2001 $75,000 2004 $90,000 1994 $50,000 1996 $60,000 OPTIONAL REDEMPTION The City may elect on February 1, 1995, and on any day thereafter, to prepay Bonds due on or I after February 1, 1996. 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 I 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. The proceeds will be used for the acquisition and betterment of parks and to acquire fire equipment. ' TYPE OF BID Bids shall be for not less than $624,145 and accrued interest on the total principal amount of 1 the Bonds, and shall be accompanied by a certified or cashier's check in the amount of$8,350, payable to the order of the City. No bid will be considered for which said check has not been I 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 I award of the bids is adjourned, recessed, or continued to another date without award of the -vii- ' 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 bass 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 tight 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, (ill) reject any bid which the City determines to have failed to comply with the terms herein. REGISTRAR rThe 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 ' Prior to December 31, 1989, 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 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 50 copies of the Official Statement. ; I Dated November 20, 1989 BY ORDER OF THE CITY COUNCIL ' /sl Donald W. Ashworth City Manager I I : ii . NO lb '�:( I >:cr HOLMES & GRAVEN P.5 II Exhibit A II NOTICE OF BOND SALE $835,000 ' GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1989C CITY OF CHANHASSEN, II CARVER AND HENNEPIN COUNTIES, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the II above bonds will be received until 2:00 p.m. , C.T. on Monday, December 4, 1989 by the City Manager, in the offices of Springsted, Incorpo- rated, 85 East Seventh Street, Suite 100, St. Paul, Minnesota, at II which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7:30 p.m. on the same day. The bonds are offered on the following terms. The bonds will be dated December 1, 1989, will bear interest payable semiannually on each February 1 II and August 1, commencing August 1, 1990, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount II 1991 $10,000 1998 $60,000 II 1992 40,000 1999 65,000 1993 45,000 2000 70,000 1994 50,000 2001 75,000 1995 50,000 2002 80,000 II 1996 55,000 2003 85,000 1997 60,000 2004 90,000 II The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in II part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1996 at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $824,145 plus accrued II interest. A legal opinion on the bonds will be furnished by Holmes & Graven, Chartered, Minneapolis, Minnesota. The proceeds of the bonds II will be used to finance various capital acquisitions it the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information II relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. I BY ORDER OP THE CITY COUNCIL /s/ Donald W. Ashworth I City Manager Dated: November 20, 1989. i, 1 1 . Extract of Minutes of Meeting of the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota Pursuant to due call and notice thereof a regular meeting of the City ' Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at the City Hall in the City on Monday, November 20, 1989, com- mencing at 7:30 P.M. The following members of the Council were present: and the following were absent: *** *** *** The following resolution was presented by Member who moved its adoption: RESOLUTION NO. RESOLUTION PROVIDING FOR THE ISSUANCE ' AND SALE OF $725,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1989B ' BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, (City) as follows: 11 1. It is hereby determined that: (a) the City has duly established a Downtown Redevelopment Project Area and Tax Increment Financing District No. 1 (TIF District) pursuant to Minnesota Statutes, Chapter 469 (Act); (b) the City is authorized by section 469.178 of the Act to issue and sell its general obligations to pay all or a portion of the public redevelopment costs (Costs) related to the TIF District as identified in the tax increment financ- ing plan (Plan) for the TIF District. . v ry .. ,...•�... .� .�v �-. v....r-,. •11 I (c) the Plan lists the following Costs to be financed by the 11 general obligations: Public Improvements Total Development Costs I Project Budget: Grocery/Retail $ 490,000 Hotel 150,000 Subtotal $ 640,000 Capitalized Interest 46,400 Bond Discount at 1.3% 9,425 Costs of Issuance 21,000 Insurance at 1.2% 8,700 Total $ 725,525 ' Less: Investment Earnings (525) New Bond Issue $ 725,000 I (d) it is necessary and expedient to the sound financial man- agement of the affairs of the City and the TIF District to issue $725,000 Taxable General Obligation Tax Increment Bonds, Series 1989B (Bonds) to provide financing for the Costs; 1 2. To provide financing for the Costs, the City will issue and sell Bonds in the amount of $715,575. To provide in part the additional inter- est required to market the Bonds at this time, additional Bonds will be issued in the amount of $9,425. The excess of the purchase price of the Bonds over the sum of $715,575 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accor- dance with the terms of the following Official Terms of Offering: I I I I I I 1 I • 3. The City Manager is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Offering and to publish the abbreviated notice of sale attached hereto as Exhibit A in the manner required by law. The City Council will meet at 7:30 p.m. on Monday, December 4, 1989, to consider bids on the Bonds and take any other appropriate action with respect to the Bonds. r The motion for the adoption of the foregoing resolution was duly seconded by Councilmember ,, and upon vote being taken thereon the following members voted in favor of the motion: • and the following voted against: • whereupon the resolution was declared duly passed and adopted. • i i I • • OFFICIAL TERMS OF OFFERING $725000 I CITY OF CHANHASSEN, MINNESOTA TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 19898 Sealed bids for the Bonds will be received by the City Manager or his designee on Monday,' December 4, 1989, until 2:00 P.M., Central Time, at the offices of SPRiNGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota after which time they will be opened and tabulated, Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated December 1, 1989, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1990. interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded -, 1 pursuant to rules of the M$RB. 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 $75,000 1993 $150,000 1994 $200,000 1995 $300,000 ' OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. ' 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. The proceeds will be used to finance non-public costs of projects within the Tax Increment Financing District. 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 $715,575 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$7,250, 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 - iv- --�-r— -�- I award of the bids is adjourned, recessed, or continued to another date without award of the I 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. IAWARD The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be I 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 Iwith 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, I (iii) reject any bid which the City determines to have failed to comply with the terms herein. REGISTRAR IThe City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. ICUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the I 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 Ishall be paid by the purchaser. SETTLEMENT IPrior to December 31, 1989, 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 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 Ipurchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT I 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 50 copies of the Official Statement. 1 Dated November 20, 1989 BY ORDER OF THE CITY COUNCIL I /s/Donald W. Ashworth City Manager 1 . !_, -v-