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HomeMy WebLinkAbout7361 - ADMIN Resolution - City Council - 1983/04/04r i APRIL 4, 1983 8a RESOLUTION NO. 7 361 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $5,500,000 GENERAL OBLIGATION IMPROVE- MENT BONDS OF 1983 AND AUTHORIZING ADVERTISE- MENT FOR BIDS WHEREAS, on December 1, 1981 the City issued $3,000,000 General Obligation Temporary Improvement Bonds which mature on December 1, 1984, and WHEREAS, in 1981 temporary bonds were issued rather than definitive bonds because interest rates were at an all time high, and WHEREAS, the 1981 temporary bonds bear interest at the rate of 8.25% per annum and can be called for prior redemption at par on December 1, 1983, and WHEREAS, the municipal bond market has improved considerably since December 1, 1981 and it appears in the best interest of the City to provide definitive financing for the improvements financed by the 1981 temporary bonds, and WHEREAS, the City has constructed a substantial number of additional improve- ments since 1981 and those projects need to be financed and $2,300,000 of the outstanding temporary bonds need to be refinanced, and WHEREAS, pursuant to resolutions heretofore adopted by the City Council ordering the following described public improvements, contracts have been entered into for construction thereof as authorized by Section 429.022 to 429.111, Minnesota Statutes, and said improvements have been completed and accepted by the City and at least 20% of the costs of said projects have either been assessed or will be assessed against benefited properties, or computed and determined for assessment prior to October 10, 1983, the number and nature and status of each improvement and the estimated total assessable cost or the amount of assessed and assessable cost being in each case as follows: Construction Projects Completed - Improvement Costs Assessed in Prior Years Improvement Project No. Nature of Improvement Amount of assessment 75-39, 78-05, 80-40,49, 81-12, 52, 53, 54, 57, 60 81-58 72-28, 73-14, 24, 77-11C, 26, 38B, 58, 78-22, 41, 46, 48, 49, 79-01, 02, 04, 08, 10, 11, 13, 41, 44, 54, 80-01, 02, 02A, 05, 06, 06A, 07, 08, 10, 11, 11a, 12, 13, 15, 17, 29, 42, 47, 55, 81-01, 02, 03, 04, 05, 10, 13, 14, 17, 18, 82-17 78-44, 44A, 79-03, 35A, 55, 80-03, 09, 81-15 79-50, 80-19, 38, 46, 81-55 79-42 Total Prior Alley paving Creek dredging $ 117,210 7,600 Street improvements 2,935,474 Street improvements and utilities Sanitary sewer Watermain 436,924 84,291 83.704 Assessed Costs Years $3,665,203 Construction Projects Completed or in Progress - Improvement Costs to be Assessed in 1983 Improvement Project No. 82-06, 50, 52, 55 80-12, 81-07, 64, 82-32 80-11 and Nature of Improvement Alley paving Street Improvements Street improvements and utilities Total Assessed Costs - 1983 Grand Total of Assessed Construction Costs A mount of Assessment $ 74,500 252,158 78.001) $ 404,658 $4,069,861 WHEREAS, pursuant to resolutions heretofore adopted by the City Council the following described improvements have been completed or are in the process of being completed and at least 20% of the costs of said projects have been assessed or will be assessed against benefited properties for each project and financing has been completed except for the share of said projects to be paid by special assessments levied against City owned property or such portion of the costs of the improvements as the City Council has determined to be paid from general ad valorem tax levies as the City's share of said projects and said improvement costs and the amount necessary to finance the City's share of said costs are as follows: Construction Projects Completed or in Progress and City's Share of Improvement Costs to be financed by 1983 Bond Proceeds Improvement Project No. Nature of Improvement Amount of Assessment 78-05, 80-49, 81-12 81-58 80-23 78-52, 79-60 72-28, 73-24, 77-38B, 78-15, 44, 46, 52A, 79-01, 02, 03, 04, 08, 10, 11, 13, 35, 35A, 41, 50, 55, 60, 80-01, 02, 05, 06, 07, 08, 09, 10, 17, 23, 26, 29, 31, 41, 46, 47, 49, 81-01, 02, 03, 04, 05, 12, 13, 14, 15, 17, 18, 55, 58, 82-17 79-03, 35A, 80-09, 81-15 79-50, 55, 80-46, 81-55 Total Alley paving Creek dredging Pedestrian trail Parking lot Street improvements Sanitary sewer Water main City's Share of Costs $ 9,690 10,286 8,402 1,664 1,333,019 106,552 30,387 $1,500,000 r f 1 and WHEREAS, it is necessary that the City borrow the sum of $5,431,250 to finance construction of the aforedescribed improvements, and the issuance of general obligation improvement bonds is authorized by Chapters 429 and 475 of the Minnesota Statutes and Section 6.15 of the Home Rule Charter of the City of St. Louis Park, NOW, THEREFORE, BE 1T RESOLVED by the City Council of the City of St. Louis Park as follows: 1. It is hereby determined that it is necessary to sell bonds to provide funds for the purpose of financing the aforedescribed public improvements and that the sum of $5,431,250 is necessary to defray the expenses of said projects. 2. It is further determined that the amount of $5,431,250 should be supplemented by the issuance of additional bonds as authorized by Minnesota Statutes Section 475.56 and that the City shall sell and issue $5,500,000 of General Obligation Improvement Bonds of 1983 with $68,750 of said bonds being considered as additional interest. The sale resolution selling these bonds shall contain a statement indicating that the bonds of this issue sold in the amount of $5,431,250 shall be the sum considered necessary to finance public improvements and further determining that the City is selling additional bonds to represent the higher rate of interest as authorized by Minnesota Statutes, and that such additional bonds in the amount of $68,750 does not exceed two percent (2%) of the amount otherwise authorized. That bids submitted to purchase bonds in the total amount of $5,500,000 shall be at a price of not less than $5,431,250 and that all amounts received by the Treasurer in excess of $5,431,250 shall be credited to a sinking fund for the payment of interest on these obligations. 3. That the City Clerk is hereby directed to cause notice of sale in substantially the form as shown in Exhibit A, which is the official notice and in Exhibit B which is the notice to be published, both of which are attached hereto and made a part of this resolution and to be given by publication at least ten days in advance of the sale, in the official newspaper, the St. Louis Park Sun, a regular newspaper having general circulation in the City of St. Louis Park, and in Commercial West, a financial paper published at Minneapolis, Minnesota, with general circulation throughout the State of Minnesota, and in the Bond Buyer, a financial newspaper published in New York City, New York, which notice shall recite that the City of St. Louis Park proposes to issue and sell its bonds in denominations of $5,000 or such higher denominations as requested by the successful bidder within 48 hours after sale of bonds, shall be numbered consecutively commencing with number 1, shall be dated June 1, 1983, to bear interest payable on June 1, 1984, and semiannually thereafter on the 1st day of December and June in each year, all bonds maturing pursuant to the schedule of maturities set forth in Exhibits A and B. All bonds maturing after June 1, 1995 are subject to redemption at the option of the City on June 1, 1995, or any interest payment date thereafter at par plus accrued interest. Said notice shall recite that the City, within 40 days from date of sale, will furnish the printed bonds and approving legal opinion of Wurst, Pearson, Hamilton, Larson & Underwood, 1100 First Bank Place West, Minneapolis, Minnesota, both without cost to the purchaser and that the bonds will be made payable at any suitable bank or trust company designated by the successful bidder subject to the approval of the City; all bids to be accompanied by a good faith check in the amount of at least $110,000 to be forfeited as liquidated damages in the event the bid is accepted by the City and the bidder fails to comply therewith; that no bid of less than $5,431,250 will be accepted; the Council reserves the right to reject any and all bids, to waive informalities, and to adjourn the sale if deemed expedient. 4. It is a further finding that the City has levied or will levy special assessments against benefited properties and that said assessments and the full faith and credit of the City are pledged to the payment of these bonds. The holders of these bonds and the taxpayers of this City shall have and may enforce by mandamus or other action all rights respecting the levy and collection of sufficient assessments and ad valorem taxes to pay the cost of the improvements financed by these bonds or other improvement bonds pursuant to Minnesota Statutes, Section 429.091. 5. That on the 18th day of May, 1983, at 1:00 o'clock P.M. (C.D.S.T.) at a special meeting of the City Council, the Council will open and consider sealed bids for award and sale of said $5,500,000 improvement bonds and take such other action in respect thereto as may be found necessary or expedient. 6. The Mayor, City Clerk and City Manager are hereby authorized and directed to review the official statement prepared to advertise the sale of these bonds and to certify that they have examined the official statement or prospectus prepared and circulated in connection with the issuance and sale of the bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of said official statement or prospectus. Adopted by the City Council April 4, 1983. Attest: /r ity C rk Reviewed for administration: 4o6r Approved as to form and legality: Aity A ' orney 1 1 Exhibit A NOTICE OF BOND SALE $5,500,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1983 City of St. Louis Park, Minnesota (Hennepin County) NOTICE IS HEREBY GIVEN that the City Council of the City of St. Louis Park, Minnesota, will meet at the City Hall in said City on Wednesday, the 18th day of May, 1983, at 1:00 p.m. (C.D.S.T.) for the purpose of receiving and considering sealed bids for the purchase of $5,500,000 General Obligation Improvement Bonds, all bonds dated June 1, 1983, bearing interest payable June 1, 1984, and semiannually thereafter on December 1 and June 1 and all bonds will mature on June 1 in the following years and amounts: Year Amount Year Amount 1984 $275,000 1992 $400,000 1985 275,000 1993 400,000 1986 275,000 1994 400,000 1987 350,000 1995 400,000 1988 350,000 1996 425,000 1989 350,000 1997 425,000 1990 350,000 1998 425,000 1991 400,000 All bonds maturing after June 1, 1995 are subject to call for redemption on June 1, 1995 and any interest payment date thereafter at par plus accrued interest. The bonds of the City are to be issued pursuant to Chapter 429 and 475 of the Minnesota Statutes and Section 6.15 of the City Charter of the City of St. Louis Park. Bonds will be in the denomination of $5,000 each unless the purchaser within 48 hours after award specifies a higher denomination in multiples of $5,000. The bonds will bear interest at the rate specified by the successful bidder, subject to the limitations stated below. Principal and interest will be made payable at any suitable banking institution designated by the successful bidder subject to the approval of the City and the City will pay reasonable and customary paying agency charges. Within 40 days after award of the sale and without cost to the purchaser, the City will furnish and deliver to the successful bidder anywhere in the Continental United States the printed and executed bonds and the unqualified approving legal opinion of Messrs. Wurst, Pearson, Hamilton, Larson & Underwood of Minneapolis, Minnesota, and the customary final delivery papers, including a certificate showing absence of litigation. Payment must be made in federal or other immediately available funds. All bonds maturing on the same date must bear interest from date of issue until paid at a single uniform rate not exceeding the rate specified for bonds of any subsequent maturity. No more than ten (10) coupon rates shall be allowed. The interest rate must be expressed in an integral multiple of 5/100ths of one percent (1%). The rate may not exceed the maximum rate allowed by law. Additional interest coupons may not be used. Bidders are 'also requested to state total interest cost and average interest rate. All bids must be in writing, enclosed in a sealed envelope, be unconditional except as to the above' opinion, be addressed to and left with the City Clerk prior to the above time, be for all or none of the $5,500,000 worth of bonds, must be accompanied by a certified check, bank draft or cashier's check in the amount of at least $110,000 payable to the order of the City of St. Louis Park, to be forfeited as liquidated damages in the event the bid is accepted and the bidder fails to comply therewith. The City will assume no obligation for the assignment or printing of CUSIP numbers on the bonds or for the correctness of any numbers printed thereon, but will permit such printing to be done at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. No bid of less than $5,431,250 plus accrued interest on $5,500,000 General Obligation Improvement Bonds at the coupon rates specified to the date of delivery will be considered. Oral bids will not be accepted. The bid offering the lowest total interest cost (total interest from June 1, 1983, to stated maturity, plus any discount below par, less any cash premium offered) will be deemed to be the most favorable. The City reserves the right to waive any informality in any bid, to reject any and all bids and to adjourn the sale. BY ORDER OF THE CITY COUNCIL Earl E. Hanson City Clerk City of St. Louis Park Dated: April 4, 1983. 6 Exhibit B NOTICE OF SALE $5,500,000 General Obligation Improvement Bonds of 1983 City of St. Louis Park Hennepin County, Minnesota These bonds will be offered on Wednesday, May 18, 1983, at 1:00 p.m., (C.D.S.T.), at the City Hall in St. Louis Park, Minnesota. Dated June 1, 1983, the bonds will mature on June 1 in the years and amounts as follows: Year Amount Year Amount 1984 $275,000 1992 $400,000 1985 275,000 1993 400,000 1986 275,000 1994 400,000 1987 350,000 1995 400,000 1988 350,000 1996 425,000 1989 350,000 1997 425,000 1990 350,000 1998 425,000 1991 400,000 Bonds maturing after June 1, 1995 are issued subject to the right of the City to call the bonds for prior redemption on June 1, 1995, or any interest payment date thereafter at par plus accrued interest. Interest will be payable on June 1, 1984, and semiannually thereafter. No rate of interest nor the net effective average rate of the issue may exceed the maximum permitted by law. No bid of less than $5,431,250 will be considered. An unqualified legal opinion will be furnished by Messrs. Wurst, Pearson, Hamilton, Larson & Underwood of Minneapolis, Minnesota. The purpose of the bonds is to finance various assessable public improvements in the City including refinancing temporary improvement bonds which are being called for redemption. Dated April 4, 1983. BY ORDER OF THE CITY COUNCIL /s/ Earl E. Hanson City Clerk City of St. Louis Park, Minnesota