1d Approve Resolutions Detting Date to Sell 1998 Bonds
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CITY OF
CHANHASSEN
MEMORANDUM
TO:
Mayor and City Council
;90 City Center Drive, PO Box 147
Chanhassen, Minnesota 55317
Phone 612.937.1900 DATE:
General Fax 612.937.5739
Engineering Fax 612.937.9152 SUBJ:
Public Silfe~y Fax 612.934.2524
FROM:
Don Ashworth, City Manager
----:'xt ~ ..: [ \.
\'-;0"
May21,1998
Approve Resolution Setting Date to Sell 1998 Bonds,
Series D & E
Web 1l'U'U'. ci.chanhassen. /tin. liS
Attached please find resolutions setting the bond sale date for the 1998 Bonds,
Series D & E. After meeting with Dave MacGillivrary from Springsted on
Thursday, May 21 sr, it is possible that the council may decide to issue another
series of refunding bonds. If this is the case, Mr. MacGillivrary will present
another resolution, similar to those attached, on Monday evening.
Approval of establishing June 22, 1998 as the bond sale date is recommended.
May-21-98 12:08pm From-KENNEDY & GRAVEN
6123379310
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Extract of Minutes of Meeting
of the City Council of the City
of Chanhassen, Carver and Hennepin Counties. Minnesota
Purswmt 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 Tuesday. May 26. 1998. commencing at 6:30 P.M.
The following members of the Council were present:
and the following were absent:
....'"
...1j;
....
The following resolution was presented by Councilmember
who moved
its adoption:
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,225,000 GENERAL OBLIGATION
TAX INCREMENT BONDS, SERlES 1998D
BE IT RESOLVED By the CitY Council of the City of Chanhassen. Carver and Hennepin
Counties, Minnesota (City) as follows;
1. It is hereby det~rrnined that:
(a) the City has duly established certain tax increment financing districts Cflf
District) pursuant to Minnesota Statutes, Section 469.174 to 469.179 (TIf
Act);
ClJ,,:'43n3
C:'{lE-2f>
May-21-98 12:08pm From-KENNEDY & GRAVEN
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(b) the CitY is authorized by Section 469.178 of the TIF Act 10 issue and sell
its general obligations to pay all or a ponion of the public development
coStS (Costs) idemified in the tax incremem fmancing plans (Plan) for the
TIF Districts;
(c) the following CostS to be flnanced by the Bonds are authorized by the
Plans:
Public T mprovements:
City Recreation Center - Road Construction
Development Cost
Project Costs
Costs of Issuance
Allowance for Discount Bidding
Less: Investment Earnings
$1,200,000
18,600
9,800
P.1Qill
Total Bond Issue
$1,225,000
(e) it is necessary and expediem to the sound financial managemt:m of th~
affairs of the City to issue $1,225,000 General Obligation Tax
Increment Bonds, Series 19980 (Bonds) to provide financing for the
Costs.
2. In order to provide financing for the CostS, the City will th~refore issue and
sell Bonds in the amount of $1,215,200. In order to provide in part the additional interest
required 10 market the Bonds at this time, additional Bonds will be issued in the amount of
$9,800. The excess of the purchase price of the Bonds over the swn of $1,215,200 will be
credited to the dt:bt service fund for the Bonds for the purpose of paying interest tirst coming
due on the additional Bonds. The Bonds will be issued. sold and delivered in accordance
with the terms of the following Terms of Proposal:
i)JICH 3 12 3
C:i13S~2St
May-21-98 12:09pm From-KENNEDY & GRAVEN
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CITY HAS AUTHORllell SPRlNGSTEO INCQ~POAA TliO TO NEGOT\P. TE THIS
~UE ON ITS BEHALF- PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL.
$1,225,000
CITY OF CHANH,\SSEN, MINNESOTA
G~NEAAL OBI.IGA T,ON TAX INCREMENT BONDS, SERieS 19980
{aOQK ENTRY aNL- Y}
proposals for \he llondS win be f6"'ived on Monday. June 22. 1998, UnIl112:30 P,M." Central
Time. at the offices of springsted Incorporated, 85 East Seventh Pla~, S~ite 100, Samt paul,
Minnesota, after which time they will be opened and tabulated. consIderation for award of the
Bonds will pe by the City Council at 6~30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted-
Signect Proposals, witho\..lt final price or coupons, may ne submitted to splingsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. All bIdders are advtsed that each proposal
shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds
regardless of the manner gf the Proposal sulJmitted.
DETAILS OF THE BONDS
The Bonds will be dated July 1, 1998, as the date of original issue. and will bear interest
payable on February 1 and AugLlst 1 of each year, commencing February 1, 1999 Interest will
be computed on the basis of a SSQ-day year of twelve 30~day months.
The Bonds will mature February 1 in the yean; and amounts as follows:
1999 $ 85,000 2002 $265,000
2000 $ 60,000 2003 5295,000
2001 $ HO,ooa 2.004 $360,000
aOOK ENTRY SYSTEM
The Sonds will be issued by means of a booJc entry system with no physical distriIJution of
aonds made to the pUblic. The aonds will be issued in fully registered form and one BondS,
representing the aggragate principal amount cf the Bonds maturing in each year, wUI be
registered in the name of Cede & Co. as nominee gf The Depository Trust Company ("DTC"),
New York, New York, wnich will act as securities depository of the Bonets. Individual purchases
of the.Eiands may be made in the principal amount of $5,000 or any multiple thereof of a single
m~tu~ thro~gh book entries made on the books and records of OTe and its participants.
Pnnclp~' and Interest are payable by the registrar to OTe or its nominee as registered owner of
the l3onQs. Transfer of pnnclpal and interest payments to participants of OTC will be: the
responsibility of OTC; transfer of principal and interest payments to ben@ncial owners by
participants will be the responsibilitY of 5ych participants and other nominees of beneficial
owners. The p\.lrchaser. as a condition of delivery of the aondi, will be required to deposit the
Sonds with OTC.
May-21-98 12:10pm From-KENNEDY & GRAVEN
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REGIST~
The City will n~me !he registrar w.hich shall be supject to applicable SEC regulations. The City
will pay for the services of the registrar-
OPTIONAL RED5MPTION
The CII'f may elect on February 1.2002. and on any day thereafter, t~ prepay Bonds due on or
after FeblUary " 2003. Redemption may be In whole or \1\ part and If on part at the optlon'll the
City and in such manner as .the City shaU delermil\e. If I~s than all Bonds of a mstunt)' are
called fOr redemption, tt.e CIIY WIll notofy DTC of the particu,:,r ",!,o!ffit of s~ matUnIY III be
prepaia. aTe will dl!lt8rmil\fl by \at tt.e amount of each parllClpanl s \I1t8rest on such .maMitY to
be recleemeQ and each participant will then select by lot the benefiCIal ownersh,p In\7fests In
such maturity to be redeemed. All prepaylllents shall be at a price of par plus accrued Interest
SECURITY AND PURPOSE
The !londs will be general Obligations of the City for which the city .will p1edl\e its .full faith and
",edit and power to \e1lY direel general ad wlorsm \lll<8S. In addil10n the CIty WIll pledge lall
Increment revenues fmm me City'. Tax In<;tement District NO.2. The proceeds will be used to
finance the con~truction of the road servicing the City'S recreation center-
TYPE: OF PROPOSALS
proposalS shall be for not 100S tnan $1.215,200 and aCCflled interest on the total prinCipal
amount of the Bonds. proposals shall be accompanied by a Good Faith Deposill"Deposif') in
\he form of a certified or """hia(. checl< or a Financial SuretY Bend in the amount of $12,250.
payable to ma order of the City. If a checl< is u_ed. it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved bY the CiW- Such bond must be submitted to
Spring51ed InCO'l'orated prior to the opening of the proposalS. The Financial Surely Bond mUSt
Identify each undetWfiter whose Deposit is guaranteed by 6uch Flnancial Sun>ty Band. If the
Bond$ are awarded to al" underwriter using a Financial SlJrety Bond, then that purchaser is
requIred to 6ubmil tt. Qepostt to Springsted Incorporated in the form of a certified or cashiers
chec\( or wire transfer as instructed by Spnngsted incorporated not later than 3:30 P.M., Central
Time, on the next buslness day following the award- If such Deposit is not received by that
time, the Financial Surety Bond may ~e drawn by tt1e City to satisfy the Deposit requirement.
The City will deposit the chec\( of the purchaser, the amount of which will be deducted at
settlement and no Interest will accrue to the purchaser. In me event the purchaser faU$ to
comply wittl the accepted proposal, said amount will be retained py the City. No proposal can
be withdraWn or amended afler the ~me set for receiving proposals unless the meeting of the
CIIY scheduled for awar<l of the Sonlls is adjoumed; recessed, or continued to another date
without award of the Bonds naving been made. Rates shall be in integral m\.lttip\es of 5/100 or
1/8 of 1 Ch, .Rates must be in ascending order. Bonds of the same maturity ~hall bear a single
rate from the data Qf the Bonds to the date of maturity. No conditional proposalS will be
accepted. -
AWARD
The acnds will be awarded on the basis of the lowest lnterest rate to be det8rmined on a true
intere::it cost (TIC) basis. The City's computation of the interest rate of eacn proposal. in
accordance wnh customary practice, wUl be c::ontrolling.
The City wUl reserve tne rig~t to: (i) waive non-substantive informalities of any proposal or of
m.alters relating to ~~ receopt of prapo_als and award of the Band., liiJ reject all proposals
Without cause, and. (IIi) reject any proposal which tne City determines to nave faileCl to comply
with the terms herein.
May-21-98 12:10pm From-KENNEDY & GRAVEN
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BOND lNSURANce AT PURCHASER'S OPTION
'I the \londs qualifY for issuance of any pofiOV of municipal bOnd insurance or cammilnl~t
I th 0 tion of the underwritllr. the pur<:hase of any such Insurance poliCY or e
~:~~~6e ~f a~y :uch cammilment snail be attne sole opuon and expense of the pur<:haser 0;
the \londs Any increase<l costs of iSSuance of the aonds resulllng from such pur<:hase 0
insurance Shalll>e pail! by Ihe purchaser. llltcepll!'at. ~ the City has .requested and recelV~ a
rating on Ihe Sonds \I'OlII a rating agenov. the City WIll pay tI1at rallng fee. Any other ra~n8
agency tees shall be the responsibility of the purchaser.
fallure of the munIcipal bOnd insurer to Issue lIIe policy after \landS have be"n awarli~ to the
purchaser shall not conslilUte cause for failure or refusal by the purchaser to accepl delivery on
the ~onds.
If the aondS qualifY tor a5signment of CUSIP numbers such num~ers will be plin~ed on the
l3onds. ~ut nei1l\er the failure \0 prtnt such numl>ers on any aands nor any error WIth respect
thereto will consliluw cause for failu'" or refusal by th~ pUrchaser to accept delivery of lIIe
\lood8. llle CUSI P Service aureau charge for Ihe a5signment of CUS1P i<lenlifi""~"" numbers
shall os paid by me purchaser.
CUSIP NUMBERS
se.TT\..EMENT
WilIIln 40 days fOIlowinglhe date of their award. toe Bonds will be deliverell without cost to the
purchaser at a place mutuallY satisfaclOl'Y to the CItY and 1l\e purt:haser. Delivery will be
suDject to rec;elpt by the purchaser of an approving legal opinion of Kennedy & Graven.
Cnarterell of Minneapolis. Minnescla. and of custOmary closing papers. including a no-litigation
certificate. On the date of settlement payment for the Ilonds shall ~e made in federal. or
equiVOlenl, fund$' whillh shalll>e received at ll1e officeS of the City or Its designee not later than
12:00 Noon, Cemrallime. except as compliance witn the termS of payment for the Bonds shall
have peen made impossible by action of the City, or its agents, the purchaser shan be "able to
the City fer any lOSS suffered by the City l>Y reason of ll1e purcl1a5e(S non-compr.anc:e with said
terms for payment.
CONTINUING DISCLOSURe
In accordance with SIOC Rule 15c2-12(b)(5l, the City will undertake. pur.;uant \0 the ",solullon
awarding sale of the Bond.. to provide annual reports and notices of certain B\lents. A
deScription of this undellaking is set follh in Ihe Official Slatement. llle purC\'lllS"(S obligation
to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or
prior to delivery of the Bonds-
OFFICIAL STATEMENT
:rhe City has al4Mrized the preparation of an Official Statement ""nlaining pertinent
Information relative to the eonds, and said Official S1at~ment will serve as a nearty-final Official
Statement within the meaning of Rule 15c2.12 of the Securities and Exchange Commission.
For copi~s of the Official Statement or for any additional information prior to sale, any
prospecttve purchaser is referred to the Financial AdvisOr 10 tile city. Springsted In""rporated.
65 East Seventh Place, Suite 100, Saint Paul, Minne~ota 55101, telephone (612) 223-3000.
llle ~oIal State~e'!l. when fullher supplemented by an addenclUm or addenda specifYing the
matunty. daleS. pnnClpal amounlS and intele$l raleS of the llonel>;. together with any other
Information ~qulred by laW, s~all ccnstit~ a "Final Official Statement'. of the City with respect
to me Bonds. as that term IS defined In RlJle 15c2-12. By awarding tne BondS to any
May-21-98 12:11pm
From-KENNEDY & GRAVEN
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unde""rtter or unde""riliTl9 synllicato< sul>mming a proposal therefor. ll1e City agrees that. no
more \han s""an bllSin"'s daY" alter tile date of su<l1 award. it shall provide without east to tile
seniDr managing underwriter of tile syndicate tD ..hiell the Bonds are awarded 50 copies of \he
Official Statement anti the a<ldendum or addenda descril>ed above. The City designateS tile
seniOr managlTl9 underwriter of the syndicate to ..hi<l1 the Bonlls are awardell as ItS agent for
purposas of distributing copies of !he final Officlal Statement to aacl1 participating Underwriter.
MY un<lerwriter delNering a proposal with respect to the Bonds agrees tharellY that if itS
proposal is ac;eepted bY the City (i) it shall aocept suc:l1 designatiDn and (ii) it shall enter intD a
contractual relatlDnship with all Participating UnclerwritefS Df the BDnds for purpDses of assuring
the r""elpt by eacl1 such Participating Underwriter Df the Final Official Statement.
Dated May 26. 1998 I'lY ORDER OF ThE CI1Y COUNCIL
Is} Donald W. Ashwarth
City Manager
May-21-98 12:12pm From-KENNEDY & GRAVEN
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3. Springsted Incorporated is authorized and directed to negotiate the Bonds in
accordance with the foregoing Terms of Proposal. The CitY Council will meet at 6:30 p.m.
on Monday, June 22. 1998, to consider proposals on the Bond::. 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 lhe following vOt:ed against:
whereupon the resolution was declared duly passed and adopted.
PJl\.H3'723
Cp':!-35-29
May-21-98 12:12pm From-KENNEDY & GRAVEN
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STATE OF MINNESOTA )
)
COUNTIES OF CARVER AND )
HENNEPIN )
)
CITY OF CHANHASSEN )
I, the un4ersign~d, being the duly qualified and acting Ci{)' Manager of the City of
Chanhassen, Minnesota, hereby certify that 1 have carefully compared the anached and foregoing
extraCl of minules of a regular meeting of the Ci{)' Council of the City held on Tuesday, May 26,
1998, with the original minutes on tile in my office and the extract is a full, true and correct copy
of the minutes, insofar as they relate to the issuance and sale of $1,225,000 General ObligaTion
Tax Increment Bonds, Series 1998D of the City.
WITNESS My hand as City Manager and the corporate seal of the City this _ day
of
, 1998.
City Manager
City of Chanhassen, Minnesota
(SEAL)
PJl<H3"/23
C:"';'135-25:
May-21-98 12:13pm From-KENNEDY & GRAVEN
6123379310
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Extract of Minutes of Meeting
of the CilY 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 Tuesday, May 26, 1998. commencing at 6:30 P.M.
The tollowing members of me Council were present:
and the follomng were ab:sent:
."''''
...
...
The following resolution was presented by Councilmember
who moved
its adoption:
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1.720,000 GENERAL OBLIGATION
TAX INCREMENT BONDS, SERIES 1998E
BE IT RESOLVED ay the City Council of the City of Chanhassen, Carver and Hennepin
Counties, Minnesota (City) as follows:
1- It is hereby determined that:
(a) The City has duly established certain ta.x increment financing districts (TlF
District) pursuant to Mirmesota Statutes, Section 469.174 to 469.179 (TIF
Act);
OJI<ltl3725
CP':35-29
May-21-98 12:13pm From-KENNEDY & GRAVEN
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(c) the City is authorized by Section 469.178 of the TIF Act to issue and sell
its gen~al opligations to pay all or a portion of the public development
costs (Costs) identified in the tax increment financing plans (Plan) for the
TIF Districts;
(d) me following CostS to be financed by the Bonds are authorized by the
Plans:
Public Imorovements:
Ta.x lncrem~nt District No.1 - Road Improvements
Development Cost
Total :Bond Issue
$1,690,000
20.150
13,7 60
(3.9l.Ql
$1.720,000
Project Costs
COStS of Issuance
Allowance for Discount "Bidding
Less: Investment Earnings
(e) it is necessary and expedient to me sound financial management of the
affairs of the City to issue $1,720,000 General Obligation Tax
lncrement Bonds. Series 1998B (Bonds) to provide financing for the
Costs.
2. In order to provide financing for the Costs. the City will therefore issue and
sell Bonds in th~ amount of $1.706,240. In order to provide in pan the additional interest
required to market the Bonds at this time. additional Bonds will be issued in the amount of
$13,760. The exce::;s of the purchase price of the Bonds over the sum of $1,706,240 will be
credited to the debt service fund for the Bonds for the purpose of paying interest tirst coming
due on the additional Bonds. The Bonds will be issut:d. sold and delivered in accordance
with the tenns of the following Temls of Proposal:
DJIU<l372S
C,,:l.3s-2,
May-21-98 12:14pm From-KENNEDY & GRAVEN
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THE CITY HAS ~l.ITHORllEO SPRlNGSTEO INCORPORATED TO NE:GOTIA'fE THIS
ISSUE: ON ITS \!lE:HALF. PROPOSALS WILL BE: RE:Cf.Mm ON TilE FOLLOWING \!l~SIS:
TER.MS OF PROPOSAL
$1,720,000
CITY OF CHANHASSEN, MINNESOTA
GEN~RAL OBUGA nON TAX INCR.eM~NT PONDS, SERIeS 1998E
(600K f:NTRY ONLY)
proposals for \1le llonds will be receivllll on Monday. June 22. 1998, until ~2:30 P.M.,. Central
Time. at \1le offices of Springsted Incorporated. 85 East S_nth Pia,:". Suite 100, SaInt Paul,
Minnesota. after which time they will be opened and tabulated. Consideration far IlWllrd of \1le
Sends will be by the City COlJ.noil at 6:30 P - M-. Central Time. of the same day-
SUBMISSION OF PROPOSALS
proposals may be submitted in a sealed envelope or by fa. (612) 223-3002 to Spnngsted.
Signed Proposals. withouf final price or coupons, may be submined '" Springsll'd prtor to lIle
lime of sale. The bidder shall be responsible for submitting to Springsted ltle final Proposal
price and coupons. by telephone (612) 2Zl-3000 or faX (612) 223-3002 for inclusion in the
submittlod proposal. Springote<! will assume no liability fa' the inabirolY of the bidder to reach
Springsted prior'" 1I1e time of sale speciliod above. All bidders are advised that each proposal
shall be deemed to coll$liMe a c:antract betWeen the blddef and lIle City to purchase the Bonds
regaraless of the manner of the Proposal 5upmitted-
OE:TAH-S OF THE BONDS
The Bonds will be dated July 1, 1998, as the date of original iss~e. and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1999. Interest will
. ," be computed on the basis of a S60-day year of twelve 30-day months.
The Bonds will matllre February 1 in the years and amQunts as followS:
2001 $350,000
2002 $345,000
2003 $345,000
2004 $340,000
2005 $340,000
The Bonds will be iSSued by means of a bool< entry system with no physical di:;tlibotion of
aonds made'" the pubflC. The Bondll will be js&ued in fully registered form and one aonds.
representing the aggregate prtncipal ","ount of ltle Bondo maturing in each year. will be
te9istered In the name of Cede & Co. as nominee of The Cepooitory Trust Company rOTC'1.
New Yo"" New YorK. which will act as securities depository af me Sonds. \ndivldual purchases
of ltle. BondS may be made .in the plincipa' amount of $5,000 or any multiple th""'of of a single
matunty 1hro~gh bOOk entn... made on th,: bool<S and rec:ards of OTC and itS participantS.
Pnnclpal and Interest are payable by the rll9iotrar to OTC or its nominee as registered owner of
the Bonds: Transf.... of principal and Interest payments to participants of PTC will be the
resl"'!",lblllly ~f PTC; transfer of principal and interest payments to beneficial owne'" by
partICIpants will be the responsibilitY of such participants and oltler nominees of beneficial
Baal< ENTRY SYSTEM
May-21-96 12:15pm From-KENNEDY & GRAVEN
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owners. 111e p"rchaser. as a condition of delivery of tile Bonds, will be r~uired to depasn the
Bonds with DTC.
RE.G1STAAR
Tne City will name \he registrar which shall be subject to applioable SEC regulations. The City
wi\l pay fer the services of the regIstrar.
OPT10NA\.. REOEMPTION
11110 City may eleel on FebrUary 1, 2002. and on any day. ther..aflef. .to pl10pay Bonds ~ue on or
after February 1. 2003. ~emption may be in whole or In part and ,f In part at \hIl opnon .of \hIl
City and in such manner as the City shall determine. If I!'5S then all BondS of a m3l!lnty are
""lied for redemption. \he City WIll notify PTC of \he palllr;u~r amoulll of such matu!i\y 1;<> be
prepaid. PlC will determine by 101 the amount of each partiClpan~s I'!terest ,n such matulilY ~
be redeemed and each participant Will \hen select by lot the ~enefic'al "",n""'hIP InI7rests In
such maturity to be redeemed. All prepayments shall be at a pnca of par plus a""Ned .lIIerest.
SECURITY AND PURPOSE
The BondS will be general ol>llgatlans of the City for which tile City WIll pledge itS MI faith and
credit and power to leVY direct general ad valorem taxes. In addition the City will pledge tax
increment revenue fmm me City's Tax Increment District No.1. TIle proceeds will be used to
finance various public Impro"ements wi1l1ln \hIl City's T"" Increment District No.1.
TYpe OF PROPOSAL.S
Proposals shall be for not less tIlan $1,706,240 and ac:GlUed interest on fl1e total principal
amount of tile Bonds. Proposals shall be accompanied bY a Good Failll Deposit C'Deposit"l in
the form of a certified or cashier's chat!< or a Financial Surety Bond in \hIl amount of $17,200,
payable to the order of \hIl City. If a chat!< is used, it must accompany each proposal. If a
finanCIal Surety Bond is used, it must be fmm an insurance company licensed to issue such a
bond in the State of Minnesota. and preapproved by tile CIty. Suoh bond must be sUbmitted to
Splingsted Inoorporated prtorto the opening of the proposals. The Financial SuretY Sand must
identify each undetWli\e1' whoae Deposit is guaranteed bY such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Sul10lY Bond. then that purchaser is
required to submh its Oapoait to sprtngsted Incorporated in the form of a certified or cashie~s
check or wire transfer as inS\ltlcted l>Y Springste<! 'noorparated not later than 3:30 P.M.. Central
TIme. on the next business day following the ewatd. If such Deposit is not recaNed by tIlat
time. the FInancial Surety Sand may be drawn by the City to satisfy Ute peposll requirement.
The City will deposit tile cI1ec1< nf the purcl1aser, the amount of .mich WIll be deducted at
settlement and no interest Will aCCl\le to the purchaser. In the e""nt the purchaser fails to
comply with the accepted proposal. said amount will be retained by 1"" City. No proposal ""n
be withdrawn or amended after the dme set for receiving proposals unleSS the meedng of the
C!tY scheduled for award nf Ille Bonds is adi""med, _ed. Of condnue<l to another date
WithOut award of me Bends having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. RateS must be in ascending or<ler. BondS of the same maturity shall bear a .ingle
rate from the date of the Sonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The aonds will be awarded on the basis of the lowest Interest rate to be detennined on a true
interest cost [TICl basis. TIle City's computatiOn of the Interest rate of each proposal, in
accordance with customary practice, will pI! controlling.
May-21-98 12:16pm From-KENNEDY & GRAVEN
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---- .---- ----
TIle City will reserve tn.. light 10: 0) waiv" nan""ub.tanti... infa(l11a\i~'" of any Pl1l1'asal or of
matlef$ ,elating 10 tne """,ipt elf proposals and ilWiInl elf the Band', Oil reject. all propOSal6
wilhout ClIu.e, and, OiO reject anY proposal which the CitY determin"" to hav.. failed 10 complY
with the terms herein.
SOND 'NSU~ce AT PURCHASER'S oPTION
If \he lIOndS quallfy (Qr issuan'" of any policy of municipal DCfld insurance or commitment
therefor at \he option of the IlIldelWliter, the pIlrchaSe of any such insurance palIcy or the
issuance of any such commillllenl shall be at the 60le opuon and expense of the pun;naser of
\he Bond'. My increased co5\S of isSU"nce of the Bonds reoulting frOm 6uch pun:llase of
in.urance shall be paid by \tie pIlrdlaser, except that W the CiI'f nas reques\lld and recei.ed a
rating on tne Bonds frOm a rating agell"Y, the City will pay Inat rating tee. MY ather rating
agenCY fees shall be the responsibilitY af the purcnaser.
Failure of lhe municipal bend insurer to is."" \he policy after Bonds have """I' awanled to \he
purchaser shall net consti\1lte ClIl1Sll fQr failure or refusal by the pIlrchaser Ie accepl d.liv...... an
the Bonds.
If the llonds qualify fo, as.isnmenl of CUSIP numbelS such nllO'\belS ..,11I be I"inted on the
llonds, but neilher \tie failure to plintsuch numbers on any IlOna. nor any error ..,rth respect
tt1erelO will constilUte cause far failure or refu6al by th.. purchaser 10 accepl deli.e.... of the
Bond.. TIle CUSIP Service Bur.au charg. for the ....ignment of CUSIP identification numbers
shall be paid by the purchaser.
CUSIP NuMBERS
Within 40 days follclNing lite date of ll'Ieir alNlilrd, me Bonds will be deli.ered withoul cast to lhe
pu,q,aser al a plaee mutUlllIY .atisfaetClIY 10 the City and th. purchaser. DeliVery will be
subj.ct to receipt by 1IIe purchaser of an approving tegal opinion of i<ennedy & Graven,
Cha/t8red elf Minneapolis, Mlnn""cta. and of cualema.... closing papelll,lnClUdill9 a no-litigatlon
certifiGSle. On the date of se\dBf118nt paymenl for t\'I8 Bands shall be made in federal, or
equl.alent. fundS which shall be receiv..d at lite offices of the CitY or itS designee 1'01 later than
12:00 Noon, central Time. e<cept'" compliance..,ith 111. terms of paym.nt for Ihe Bonds shall
have be8n made impossible by action of me Ci\~, or i\5 agents, ll'Ie purcha5er shall be liable 10
the City for any t.... suflel'll<l bY the CiIY by reason of lite purchaoefs non-eompllanee with said
terT1'S for payment.
SE1TLEMENT
In accordance ..,ill'lSSC Rule 1502-1Z(I>)(5). the City INi\I unaertal<e, pursuant Ie th.. resolution
awarding sale of the Bonds. to pfOll\lle annual reports and notices of tetlain events. A
descrip~on of \l1is undertaking i. set for\l1 in the Official statement. The pun:llasefs obligation
10 purchase me Bonds will be conditlon..d upon ,"ceivlng .vldence of ll'Ils undertal<ing at or
prior to delivery of the Bonds.
coNTlNUING OlSCLOSURE
OFFlCIAl. 8T ATEMENT
The City has authorized the prepara;tion of an Official Sla_nt containing pertinent
Information relatl.e Ie the B!'f1'!s, and .ald OfficialSta\emerrt ",Ill serve as a nearly..final Official
Statement wilh1l\ the meaning of Rule 15<:2-1Z of the secufit\e. and exohange CommisSion.
far cof'1"" of the ~clal Statement or {Qr any additional informati"n prior to sale, any
prospectove purchaser ,. referred 10 ll'Ie Financial AdvisOf Ie ll'Ie City, Splins,tad Incorporated,
85 Easl Seventh Place, Suite 100, Saint paui. Minnesota 55101. tel.phon. (61Z) 223-3000.
May-21-98 12:16pm From-KENNEDY & GRAVEN
- --~- -
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The Official statement. wnen fUrther supplememtod py an addendum or allQe(lda specifying the
maturity dateS, principal amountS and intere51 rata5 of the aonds, together wM any other
inlollllaaon required bY law, shall constillllO . "Final Offiolal Slatoment" oIllle City with resped
to the 1l0ndO. as that tollll is delintod In .Rule 15<2-12. By awarding mo aonds to any
underwriter or underwriting GYndi"",, sul>milting a proposal therefor, thO City agrees that, no
more than seve(lbusinOSS dayslliter the dat" oI511c:h award, it snail prollide without COlil to ttle
senior managing unclerwriter of thO syndicate to wnic:h the Bands are awatdtod 70 copies 01 the
Ollicial Statement and Ine adcle(ldum or addenda dBScr\bed abOve. The City clesiQnateS the
oonior managing underwriter 01 the syndlcate to wI1ich the Bands are awarded as itS agent for
purposes of distributing copies 01 the Final Officia\ Statement 10 each pmticipating undefW1iter.
Any underwriter delivann9 a proPosal with respect to the Bands agrees thOreby that if itS
proposal is accepted by tile City OJ it sllall aecept euch designation and (oil it snail enter Into a
contraetual relabOnsnip with all Palliolpaling UndelVtfitare 01 the Bands far purposes 01 assuring
\he receipt llY eaoh sucl1 Participating UnderwJitar 01 the Final Official Statement
Dated May 2.6, 1998
aY OROE.R OF THE CITY COUNCI\..
IsJ Donald W. AShworth
City Manager
May-21-98 12:17pm From-KENNEDY & GRAVEN
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3. Springsted Incorporated is authorized and directed to negotiate the Bonds in
accordance wilh the foregoing TemlS of Proposal. Th~ City Council will meet a~ 6:30 p.m.
on Monday, June 22, 1998, to consider proposals on the Bonds and lake any other appropriate
action with respect to the Bonds.
The motion for the adoption of tbe foregoing resolution was duly seconded by
Councilmember
, and upon vote being taken thereon the following members
voted in favor of th~ motion:
and the following vmed again~t:
wher~upon the resolution was declared duly passed and adopted.
DJKH3nS
CF...3 5 - 29
May-21-98 12:17pm From-KENNEDY & GRAVEN
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STATE OF MINNESOTA )
)
COUNTIES OF CARVER )
AND HENNEPIN )
)
CITY OF cHANl-lASSEN )
I, the undersigned, being the duly qualified and acting City Manager of the Ciry of
Chanhassen, Minnesota, bereby certify that I have carefully compared the anached and foregoing
extract of minuteS of a regular meeting of the City Council of me City held on Tuesday, May 26,
1998, with the original minutes on file in my office and the extract is a full, uue and correct copy
of the minutes, insofar as they relate to the issuance and sale of $1,720,000 General Obligation
Tax Increment Bonds, Series 1998B of the City-
WITNESS My hand as CitY Manager and the corporate seal of the Clry this - day
of
, 1998.
City Manager
CitY of Chanhassen, Minnesota
(SEAL)