RES 1990-11 - 00003802RESOLUTION NO. 11 - 1990
RESOLUTION PROVIDING FOR THE PUBLIC SALE OF
APPROXIMATELY $9,445,000 GENERAL OBLIGATION TAX
INCREMENT REFUNDING BONDS OF 1990
WHEREAS, it is necessary and appropriate for the City of Fridley, Minnesota (the
"City "), to refund in advance of maturity the City's $10,045,000 (original
principal amount) General Obligation Tax Increment Refunding Bonds, Series 1986,
dated August 1, 1986 (the "Prior Bonds"), of which $9,060,000 in principal
amount remain outstanding on the date hereof, in order to extend the maturities
thereof in light of the resources available for their payment:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley,
Minnesota, as follows:
1. Finding: Amount and Purpose. It is hereby found, determined and declared
that the City should issue approximately $9,445,000 General Obligation Tax
Increment Refunding Bonds of 1990 (the "Bonds ") to defray the expense of an
advance refunding of the Prior Bonds. The City Finance Director may adjust the
principal amount offered for sale to an amount, if any, more appropriate for the
accomplishment of the refunding.
2. Meeting: Bid Opening_ The City Council shall meet at the time and place
specified in the form of Notice of Bond Sale 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 City Finance Director is hereby authorized and
directed to cause notice of said sale to be published in the official newspaper
of the City and in Northwestern Financial Review not less than ten (10) days in
advance of the date of sale, as provided by law, which notice shall be in
substantially the form set forth in Exhibit A attached hereto and hereby made
a part hereof.
4. Official Terms of Bond Sale. The terms and conditions of the Bonds and
the sale thereof shall be as set forth in the "Official Terms of Bond Sale"
attached hereto as Exhibit B and hereby made a part hereof.
5. Official Statement, The City Manager, City Finance Director and other
officers or employees of the City are hereby authorized to participate in the
preparation of an official statement for the bonds and to execute and deliver
it on behalf of the City upon its completion.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 12TH DAY OF
FEBRUARY, 1990.
WILLIAM J. NEE - UhYOR
ATTEST:
4 Q-
SHIRLEY A. H PALA - CIT CLERK
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Page 2 -- Resolution No. 11 - 1990
EXHIBIT A
' NOTICE OF BOND SALE
$9,445,000*
CITY OF FRIDLEY
ANOKA COUNTY
MINNESOTA
GENERAL OBLIGATION TAX INCREMENT REFUNDING
BONDS OF 1990
Sealed bids for the purchase of the above mentioned Bonds will be received until
11 :00 o'clock A.M., Central Time, on Wednesday, March 17, 1990, at the offices
of Miller & Schroeder Financial, Inc., 7900 Xerxes Avenue South, Minneapolis,
Minnesota, when they will be opened. The City Council will meet at 7:30 o'clock
P.M., Central Time, on the same day at the Fridley City Hall in Fridley,
Minnesota, for consideration of the bids and award of the sale of the Bonds.
The Bonds will be dated March 1, 1990, as the date of original issue. Interest
will be payable on August 1, 1990, and semiannually thereafter. The Bonds will
be general obligations of the City for which its unlimited taxing powers will
be pledged. The City will designate the Bonds as qualified tax - exempt
obligations. The Bonds will mature on August I in the years and amounts as
follows:
'
Year
Amount*
Year
Amount*
2001
$ 805,000
2006
$1,115,000
2002
855,000
2007
1,195,000
2003
915,000
2008
1,270,000
2004
975,000
2009
1,270,000
2005
1,045,000
The City reserves the right after receipt of bids to increase or decrease the
principal amount of the Bonds by not more than $300,000 and the principal due
in any year by not more than $100,000. The purchase price bid will be adjusted
pro rata to reflect any adjustments of the principal amount.
All Bonds maturing after August 1, 1997, will be subject to prior redemption on
said date and any date thereafter at a price of par plus accrued interest.
Sealed bids for not less than $9,303,325 and accrued interest on the principal
sum of $9,445,000 will be accepted. An approving legal opinion will be furnished
by Briggs and Morgan, Professional Association, of St. Paul and Minneapolis,
Minnesota. The proceeds will be used to refund certain outstanding tax increment
bonds of the City.
* Subject to adjustment
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Page 3 -- Resolution No. 11 - 1990
Bidders should be aware that the Official Terms of Bond Sale to be published in
' the Official Statement 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 said Official Terms of Bond Sale, the provisions
of the latter shall be those to be complied with.
Dated: February 12, 1990 BY ORDER OF THE CITY COUNCIL
U Richard D. Pribyl
City Finance Director
Additional information may
be obtained from:
Miller & Schroeder Financial, Inc.
Northwestern Financial Center
7900 Xerxes Avenue South
P.O. Box 789
Minneapolis, Minnesota 55440
Telephone No. (612) 831 -1500
1
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Page 4 -- Resolution No. 11 - 1990
EXHIBIT B
' OFFICIAL TERMS OF BOND SALE
$9,445,000 ** GENERAL OBLIGATION
TAX INCREMENT REFUNDING BONDS OF 1990
CITY OF FRIDLEY, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above Bonds of
the City of Fridley, Minnesota, will be received on Wednesday, March 7, 1990,
until 11:00 A.M., C.T., at the offices of Miller & Schroeder Financial, Inc.,
7900 Xerxes Avenue South, Minneapolis, Minnesota, when they will be opened. The
bids will be considered by the City Council at its meeting in the Fridley City
Hall beginning at 7:30 P.M., Central Time on the same day. The Bonds are being
issued for the purpose of advance refunding certain general obligation tax
increment bonds of the City. The Bonds will be general obligations of the City
for which its full faith and credit and taxing powers will be pledged.
Dates and Maturities
The Bonds will be dated March 1, 1990, and will mature on August 1 in the
following years
and amounts:
Year
Amount **
Year
Amount **
2001
$ 805,000
2006
$1,115,000
'
2002
855,000
2007
1,195,000
2003
915,000
2008
1,270,000
2004
975,000
2009
1,270,000
2005
1,045,000
The City reserves the right after receipt of bids to increase or decrease the
principal amount of the Bonds by not more than $300,000 and the principal due
in any year by not more than $100,000. The purchase price bid will be adjusted
pro rata to reflect any adjustments of the principal amount.
Call Provision
Bonds maturing after August 1, 1997, shall be subject to prior redemption on said
date and on any date thereafter at par plus accrued interest.
Interest
Interest on the Bonds will be payable on each February 1 and August 1, commencing
August 1, 1990. All Bonds maturing on the same date must bear interest from date
of issue until paid at a single, uniform rate. Each rate must be in an integral
multiple of 1/8 or 1/20 of 1 %, and no rate applicable to any maturity shall be
lower than that applicable to any previous maturity.
I** Subject to adjustment
Page 5 -- Resolution No. 11 - 1990
Fiscal Agent
' The Bonds shall be distributed to the owners in fully- registered form in any
authorized whole multiple of $5,000 each by a suitable fiscal agent to be
selected the City (the "Fiscal Agent "). The Bonds shall be payable as to
interest by check or draft of the Fiscal Agent mailed to the registered owners
whose names appear on the books of the Fiscal Agent at the close of business on
the 15th day of the calendar month next preceding the interest payment date and
as to principal by presentation of the Bonds at the office of the Fiscal Agent.
The City will pay al costs relating to the registration of the Bonds.
Delivery
The Bonds will be subject to delivery to the purchaser at the office of the
Fiscal Agent on or before March 30, 1990, against payment in federal or other
immediately available funds, and may be delivered at closing as temporary,
typewritten certificates which shall be exchanged as soon as printed certificates
are available. The Bonds will be accompanied by the opinion thereon of bond
counsel and a certificate stating that no litigation in any manner questioning
their validity is then threatened or pending.
Designation as Qualified Tax - Exempt Obligations
The City will designate the Bonds as "qualified tax - exempt obligations" for
purposes of Section 265(b) (3) of the Internal Revenue Code of 1986, as amended,
relating to the ability of financial institutions to deduct from income for
federal income tax purposes interest expense that is allocable to carrying and
' acquiring tax - exempt obligations.
Legal Opinion
A legal opinion on the Bonds will be furnished by Briggs and Morgan, St. Paul,
Minnesota. The legal opinion will be printed on the Bonds. The legal opinion
will state that the bonds are valid and binding general obligations of the City.
Type of Bid - Amount
Sealed bids must be mailed or delivered and must be received prior to the time
established above for the opening of bids. Each bid must be unconditional. A
good faith deposit in the amount of $188,890 must be submitted with each bid.
The good faith deposit must be in the form of a cashier's or certified check or
bank draft, payable to the City Finance Director, The good faith deposit will
be retained by the City as liquidated damages if the bid is accepted and the
bidder fails to comply therewith. The good faith deposit will be returned to
the purchaser at the closing for the Bonds. The bid authorizing the lowest net
interest cost (total interest from date of Bonds to stated maturities less any
cash premium or plus any discount) will be deemed the most favorable. No oral
bid and no bid of less than $9,303,325 plus accrued interest on all of the Bonds
will be considered, and the City reserves the right to reject any and all bids
and to waive any informality in any bid.
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Page 6 -- Resolution No. 11 - 1990 Z 1
Official Statement
' Prospective bidders may obtain a copy of the Official Statement by request to
the City's financial advisor prior to the bid opening.
BY ORDER OF THE CITY COUNCIL
/s/ Richard D. Pribyl
City Finance Director
Fridley City Hall
6431 University Avenue N.E.
Fridley, Minnesota 55432
Further information may be obtained from and bids may be delivered to: MILLER
& SCHROEDER FINANCIAL, INC., Northwestern Financial Center, 7900 Xerxes Avenue
South, P.O. Box 789, Minneapolis, Minnesota 55440. Telephone: (612) 831 -1500