HomeMy WebLinkAbout10-14-1991 HRA Packetv>r'hrf
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MINUTES OP THE MEETING
OP THE HOUSING AMD REDEVELOPMENT AUTHORITY OF ORONO
HELD ON OCTOBER 14, 1991
ROLL
The HRA Committee met on the above date with the following
members present: Chairperson Gabriel Jabbour, Barbara Peterson,
J, Diann Goetten, Edward Callahan, Charles Kelley, Ron Moorse and
Tom Barrett. Chairperson Jabbour called the meeting to order at
7:22 p.m.
Chairperson Jabbour noted the reason for the meeting was to call
for the sale of the bonds regarding the City facilities. He
noted a resolution has been drafted by the Bond Counsel, which
asked that proposals for bonds be returned by November 12, 1991.
Callahan noted that the repayment schedule on the bottom of the
resolution calls for interest-only payments until 1994, final
bond payment to be made in the year 2008, and a recall provision
set at 8 years.
Goetten noted that if passed, they will need to see a final draft
of the resolution with all appropriate blanks filled in.
Chairperson Jabbour noted that on November 12th the City will
receive the bids from various agencies. The HRA will meet at
6:30 p.m. on November 12, 1991 to accept or reject the bids.
Carolyn Drude, Financial Consultant, noted that the choices at
that time are to accept the bid offering at the lowest net
interest cost, or reject all of the bids.
Callahan reiterated that notice of this will be published in the
official newspaper.
It was moved by Callahan, seconded Hy Jabbour, to adopt
Resolution #91-1, calling for the sale of bonds to finance the
new City Hall facilities. Passed unanimously.
Chairperson Jabbour adjourned the meeting at 7:27 p.m.
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ATTEST:
Gabriel Jabbour, Chair
Secretary
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HOOSING AND REDEVELOPMENT AUTHORITY
OP ORONO, MINNESOTA MEETING
MONDAY, OCTOBER 14, 1991
7:15 P.M.
CITY COUNCIL CHAMBERS
AGENDA
1. Roll Call
2. Adoption of a Resolution Callinq for the .Sale of
Bonds to Finance the New City Hall Facilities
3. Adjournment
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r CERTIFICATION OF MINUTES RELATING TO
PUBLIC FACILITIES REVENUE BONDS. SERIES 1991
issuer: Housing and Redevelopment Authority in and for the City of Orono, Minnesota
Governing Body: Board of Commissioners
Kind, date, time and place of meeting: A secular___meeting held on October 14, 1991
at 7; 15 oclock p.m., at the City Hall offices in Orono. Minnesota.
Members present: chair Gabriel Jabbour, .Ver.bers Barbara Peterson.
J. Diann Goetten, Edward Callahan and Secretary Charles Kelley
Members absent:Mary Butler
Documents attached:
Minutes of said meeting (pages):
RESOLUTION NO.91-1
RESOLUTION RELATING TO
PUBLIC FACILITIES REVENUE BONDS. SERIES 1991;
AUTHORIZING THE ISSUANCE THEREOF
at^e ttme and place and was attended throughout oy the members indicated above,
pursuant to call and notice of such meeting given as required ly law; and that the
above-described Resolution has not as of the date hereof been amended or repealed.
1991.
WITNESS my hand officially as such record!^ officer this 1.4 thday of October,
Secretary ^
(SEAL)
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Commissioner
its adoption;
Callahan introduced the foiiowing resolution and moved
RESOLUTION NO.__
RESOLUTION RELATING TO
PUBLIC FACILITIES REVENUE BONDS. SERIES 1991;
AUTHORIZING THE ISSUANCE THEREOF
BE IT RESOLVED by the Board of Commissioners of the Housino and
Redevelopment Authority in and for the City of Orono, Minnesota {the "Authority"), as follows:
1. Authorization of Bonds . Pursuant to the authority granted by Sections 469.034
and 469.035 of the Housirig and Redevelopment Act, Minnesota Statutes. Sections 469.001
to 469.047, as amended, (the "Act"), and Minnesota Statutes. Chapter 475. as amended, the
Authority Is authorized to issue from time to time Its revenue bonds for any of its authorized
corporate purposes. The Authority hereby determines that it would be in the best interests of
the Authority arnl In furtherance of the purposes and policies of the Act for the ^thority to
issue Its revenue bonds In the aggregate principal amount of $4,000,000 (the "Bonds^ to
finance the costs of a Project, consisting of the acquisition and construction of a new city hall,
and facilities to house the police and public works departments of the City (collectively, the
"Facilities"), and to lease and agree to sell the Facilities to the City of Orono (the City )
pursuant to and in accordance with a lease-purchase contract. The Authority Is authorized to
undertake the Project under Minnesota Statutes, Section 469.012, Subdivision 1(7). The
Bonds would be special, limited obligations of the Authority payable solely from the amounts
received from the City pursuant to the lease-purchase contract, except from proceeds of the
Bonds, Investment Income and the proceeds of any Insurance claim or condemnation award
with respect to the Facilities.
newspaper of the City, and in Northwestern Financial Review , once riot less than ten days
before the date of said meeting, in substantially the following form;
NOTICE OF BOND SALE
$4,000,000 PUBLIC FACILITIES REVENUE BONDS. SERIES 1991
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF ORONO. MINNESOTA
(BOOK ENTRY ONLY)
NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority in and
bids wifi be ooened and tabulated. The Board of Commissioner will meet In the City HaM
oSLs at 6:3 cPd r^on the day to consider the bids. The Bonds will be issued for the
Duroose of financina the construction of a new city hall and facilities to house the PoUce and
Dub^ic works deoartments of the City of Orono (collectively, the Facilities ). The Boods will be
Issued as fully registered bonds of single maturities. In the denomination of $5.0 JO or any
Integral multipie thereof, will be dated, as originally issued, as of December 1, 1991, and will
mature on February 1 In the following years and aniounts.
Year
1994
1995
1996
1997
1998
1999
2000
2001
Amount
$165,000
175.000
190.000
200.000
215.000
225.000
240.000
255.000
Year
2002
2003
2004
2005
2006
2007
2008
$275,000
290.000
310.000
330.000
355.000
375.000
400.000
Interest will be payable each February 1 and August 1 comrnei t Augu
raaistared owners of the Bonds appeanng of re^'ord in the bond reuta.
t^ Immediately preceding month. Bonds hav;>'!> stated maturities m 2002
each be subiectio redemption, at the option 4 V»ie Authonty and In whole or In part and If In
oart In Inverw order of rnaturltles and in $5,000 principal amounts selected by lot or other
manner deemed fair within a maturity, on February 1, 2001 and any Interest payment date
thereafter at a price egual to the principal amount thereof to be r^eemcd plus Interest
accrued to the date of rwemptlon. The rate of interest specified for Bonds of one maturity
nSy not exceed the rate specified for Bonds of any subsequent maturity. The Bonds will be
d^gnated by the Authonty as "qualified tax-exempt obligations for purposes of Section
265^) of the Internal Revenue Code of 1986, as amended.
The Bonds will be issued In fully registered form and when Issued will be Issued In the name
of Cede & Co., as nominee for The Depository Trust Company, Now York. New York, which
will act as securities depository for the Bonds.
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A legal opinion will bo furnished by Dorsey & Whitney, of Minneapolis. Minnesota, as Bond
Counsel. Copies of the Official Statement, including a statement of Terms and Coriditions of
Sale, may bo obtained on or about November 4, 1991, from Ehiers and Associates. Inc., 2950
Norwest Center, 90 South Seventh Street, Minneapolis. Minnesota. 55402; telephone
612-339-8291, financial consultants to the Authority.
Dated; October 14, 1991.
BY ORDER OF THE BOARD OF COMMISSIONERS
Charles Kelley
30cr0t£iry
Housing and Redeveiopment Authority
ir. and for the City of Orono, Minnesota
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3. Tflrms and Conditions of Sale. The following statement of Terms and
Conditions of Sale shSi constitute the terms and conditions for the sale and Issuance of the
Bonds and such tarms and conditions ara hareby authorized to be incorporated In matenal
distributed to prospective bidders for the Bonds:
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TERMS AND CONDITIONS OF SALE
PUBLIC FACILITIES REVENUE BONDS. SERIES 1991
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF ORONO. MINNESOTA
(BOOK ENTRY ONLY)
Sealed bids for the purchase of Public Facilities Revenue Bonds. Series 1991, of
the Authority (the "Bonds") will be received until 10:30 ».m. on Tuesday, the 12th day of
November, 1991, at the offices of Ehlers and Associates, Inc., 2950 Norwest Center, 90 South
Seventh Street. Minneapolis. MN 55402, at which time the bids will bo opened and
tabulated. The Board of Commissioners will meet at 6:30 p.m. on the same day at the City
Hall offices to consider the bids for the Bonds.
Purpose and Security
The Bonds will be Issued tor the purpose of financing a project to be undertaken by
the Authority. The project consists of the construction of a new city hall and facilities to house
the police and public works departments in the City of Orono (collectively, the "Facilities").
The Authority will lease and agree to sell the Facilities to the City of Orono pursuant to a
lease-purchase crinfract. The Bonds will bo special, limited obligations of the Authority
payable solely frjm revenues to be received from the City of Orono pursuant to the
lease-purchase cr<ntract, proceed® c* the Bonds, investment income thereon and proceeds of
insurance claims ^nd condenr*r.atlon aw.^rds, if any, relating to the Facilities.
Date. Type and Denomination
The Bonds will be dated, as originally issued, as of December 1. 1991, will be
Issued as negotiable investment securities of single maturities in registered form as to both
principal and Interest and will be issuable in denominations of $5,000 or any integral multiple
thereof.
Maturities and Redemption
The Bonds will mature on February 1 In the following years and amounts:
Year Amount Year Amount
1994 $165,000 2002 $275,000
1995 175,000 2003 290.000
1996 190,000 2004 310.000
1997 200.000 2005 330.000
1998 215,000 2006 355.000
1999 225,000 2007 375.000
2000 240,000 2008 400.000
2001 255.000
Bonds having stated maturities in 2002 and later years will be subject to redemption, at the
option of the Authority. whole or in part, and if in part, in Inverse order of maturities and in
$5 000 principal amoi :s selected by lot or other manner deemed fair within a maturity, on
February 1. 2001 and any interest payment date thereafter at a price equal to the principal
amount thereof to be redeemed plus interest acc.-ued to the date of redemption.
Interest Payment Dates. Rates
Interest will be payable each February 1 and August 1, commencing August 1.
1992. to the registered owners of the Bonds as such appear in the bond register of the
close of business on the 15th day (whether or not a business davi of the Immediately
preceding month. Interest wiil be computed upon the basis of a twelve
30*dav rnonths and will be rounded pursuant to rules of the MSRB. All Bonds of the same
stateo maturity must bear interest from date of Issue until paid at a single, uniform rate, not
exceeding the rate specified for Bonds of arw subsequent maturity. Each rate must be
express^ in an Integral multiple of 1/8 or 5/100 of 1%. No additional interest certificates will
be permitted.
Book Entry Format
The Bonds will bo registered in the name of Cede & Co., as nominee for The
Depository Trust Company (DTC), New York. New York. DTC will act as securities depository
for The Bonds, and will be responsible for maintaining a book-entry system for recording the
interests of its participants and the transfers of interests betwoe Its participants. The
oaitldpants will be responsible for maintaining records regarding the benefic al Interests of the
mdivlwal purchasers of the Bonds. So long as Cede & Co. Ts the registered owner of the
Bornfs, all payments of principal and Interest will be made to the depository which. In turn, will
be obiigatM to remit such payments to its participants for subsequent disbursement to the
beneficial owners of the Bonds.
Imsifie
The Authority will designate and contract with a suitable bank or trust company to
..jstee under a Trust Indenture to t------------ v^.ii
act as bond registrar, transfer agent and
act as Tmstee under a' Trust Indenture to be entered into by the Authority. The Trustee will
act as bond registrar, transfer agent and paying agent. The bond register will be kept,
transfers of ownership will be effected and principal of and interest on the Bonds will be paid
by the Tmstee. The Authority will pay the charges of the Trustee for such services.
Dfilivfiiy
Within 40 days after the sale, the Bonds will be delivered without cost to the
original purchaser at DTC. On the day of closing, the Authority wiil furnish to the purchaser
the opinion of bond counsel hereinafter described, an arbitrage certification and a certificate
verifying that no litigation In any manner questioning the validity of the Bonds is then ponding
or. to the knowledge of officers of the Authority, threatened. Payment for the Bonds must be
received by the Authority In Immediately available funds at its designated depositary on the
day of closing.
Qualified Tax-Exempt Obligations
The Bonds will be designated by the Authority as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended
(the "Code"), and financial Institutions described In Section 26^{b){5) of the Code may treat
the Obligations for purposes of Sections 265(b)(2) of and 291(e)(i)(B) of the Code as if they
¥vere acquired on August 7. 1986.
LssaLQpiniQn
An opinion as to the validity of the Bonds and the exciusion from gross Income for
federal and Minnesota income tax purposes of the interest thereon will be furnished by Dorsey
& Whitney, of Minneapolis, as Bond counsel. The legal opinion vyill state that the Bonds are
valid ana bindinq special obligations of the Authority enforceable In accordance with their
terms except to the extent to which enforceability thereof may be limited by the exercise of
judicial discretion or by state or federal laws relating to bankruptcy, reorganization,
moratorium or creditors ’ rights.
Type.5LBid-and.Awatd
Sealed bids for not less than $3,945,000 and accrued interest on the principal
amount of $4,000,000, must be received at the offices of Ehleis and Associates, Inc., financial
consultants to ^e Authority, prior to the time stated above. Bidders r.'iust bid for a I or'-pna of
the Bonds. Each bid must be unconditional and must be accompanied by a good faith deposit
of $80,000. The good faith deposit must be in the form of a certified or cashier s check or
bank draft payable to the Authority, or a wire transfer of funds to Resource Bank & Trust
Company, ABA #09-10-0550*6 for further credit to Ehlers and Associates,. Inc., Bond Issue
Escrow Account #850-788-1, Attention: Molly Majerle. or a financial surety bond. If a
flnanclal surety ’ bond's used. It must be from an insurance company licensed to issue such a
bond In the State of Minnesota. Such financial surety bond must be submitted to Ehlers and
Associates, Inc., prior to the opening of the bids and must identify each bidder whose good
faith deposit Is guaranteed by such financial surety bond. If the Bonds are awarded to a
bidder using a financial surety bond, then that original purchaser Is required to submit its good
faith deposit In the form of a certifiod or cashier ’s check, bank draft or wire transfer, as
instructed by Ehlers and Associates, Inc., not iater than 3:00 p.m. Central Time on the next
business day following the award. If such goo'"' faith deposit Is not received by that tirne, the
financial surety bond may be drawn by the Authority to satisfy the good faith deposit
reauirement and such amount will be deducted from the purchase price at the closing and no
interest will accrue to the original purchaser. The good faith deposit will be retained by the
Authority as liquidated damages if the bid is accepted and the bidder fai s to comply
therewith. The Did authorizing the lowest net Interest cost (total interest on all Bonds from
December 1, 1991 to their maturities, loss any cash premium or plus any discount], will be
deemed the most favorable. In the event that two or more bids state the lowest net interest
cost, the sale of the Bonds will be awarded by lot. No oral bid will be considered. The
Authority reserves the right to reiect any and all bids, to waive informalities in any bid and to
adjourn the sale.
CUSIP Numbers
The Authori^v will assume no obligation for the assignment or printing of CUSIP
numbers on the Bonus or for the correctness of any numbers printed thereon, but will permit
such numbers to be assigned and printed at the expense of the original purchaser, if the
original purchaser waives any delay in delivery occassioned thereby.
Official Statem ent
The Authority has authorized the preparation of an Official Statement relating to the
Bonds which the Authority will deem, for purposes of SEC Rule 15c2-12, to be final as of its
date. The Authority will deliver, at closing, a certiflcate executed by the Authonty to the effect
that, to the best of Its knowledge, as of the date of closing, the information contained In the
Official Statement, Including any supplement thereto, does not cont^n any untnje statement
of a material fact or omit to state a material fact necessary to rr.ake the statements therein, m
light of the circumstances In which they are made, not misleading; provided that no corriment
will be made with respect to any information provided by the successful bidder for inclusion in
any supplement to the Official Statement.
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Bv submitting a bid for the Bonds, the successful NdcJor agrees: (1) to disseminate
!l£5S!!l?s®r!S^X.!?Td ?3)’’to
applicable Sles oPthe Securities and Exchange Commission and the
FE&maKing Board governing the offering, sale and delivery of the Bonds to ultimate
purchasers.
Within seven business days after the sale the Authority will furnish to the purchaser
without charge 150 copies of the final Official Statement for the Bonds. Additional copies of
the final Offidal Statement may be obtained by the purchaser at a charge of $10.00 per copy.
Information for bidders and bidding forms may be obtained ^roni the undersigned or
from Ehlers and Associates. Inc., 2950 Norwest Center, 90 South
Minneapolis, Minnesota 55402; telephone 612-339-8291, financial consultants to the Authonty.
Dated: October 14, 1991.
BY ORDER OF THE BOARD OF COMMISSIONERS
Charles Kelley
Sscrstsry
Housing and Redevelopment Authority
in and for the City of Orono. Minnesota
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4 OfHcifll Statement. The Secretary and other officers of the Authority, in
cooperation with thTers a^^^ Associates, Inc., financial consultants to the Authority, are hereby
authorized and directed to prepare on behalf of the Authority an official statement to be
distributed to potential purchasers of the Bonds. Such official statement shall contain the
statement of Terms and Conditions of Sale set forth in paragraph 3 hereof and such other
information as shall be advisable and necessary to descnbe accurately the Authority and the
security for, and terms and conditions of, the Bonds. The Secretary Is authorized on beh^f of
the Authority to deem the official statement near "final" as of its date, in accordance with Rule
15c2-12(b)(1) under the Securities Exchange Act of 1934.
S. Time of Sale. This Board shall meet on Tuesday. November 12, 1991, at 6:30
p m at the City Hall offices for the purpose of considering the bids received for the purchase
of the Bonds In accordance with the Terms and Condllicns of Sale.
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The motion tor the adoption of the resolution was duly seconded by
Jabbour* and upon vote beinQ laken thereon, the followinQ
Commissioners voted In favor; Gabriel Jabbour, Barbara Peterson,
J. Diann Goetten and Edward Callahan
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and the following voted against the same: None
whereupon said resolution was declared passed and adopted and was signed by the
Chairman, which signature was attested by the Secretary.
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MINOTES Ot THE MEETING
OF THE HOOSING AND REDEVELOP;*^ NT AUTHORITY OF ORONO
HELD ON OCTOBER 14, 1991
ROLL
The HR. conmittee .et on^^the^above
J®™DUnn ^GoVtten, Edwar/cal lahan, Charles Kelley, Ron lloorse and
Barrett. Chairpersr ■ Jabbour called the meeting to order at
7:22 p-m.
Chairpecson Jabbour noted the reason for the meeting was to call
foVlhe s^le of the bonds regarding the C i ty f ac i 1 x 11 es. He
nnhiad a resolution has been drafted by the Bon^^ Counsel,
asked that proposals for bonds be returned by November 12, 1991.
ca 1 lahan noted that the repayment scnedii le on ^tbe ^bo»om of^ _the
L%%“Vayi.en/to^%'-arL"\^=e year^Bol and a recall provision
set at 8 years.
Goetten noted that if passed, I • %^n‘"^ ^of the resolution with all appropriate blanks fi^xt.d in.
Chairperson Jabbour noted that on November 12th the City will
interest cost, or reject all of the bids.
Callahan reiterated that notice of this will be published in the
official newspaper.
It was moved by Callahan, seconded by ^
Resolution 191-1, calling for the sale of bonds to finance the
new City Hall facilities. Passed unanimously.
Chairperson Jabbour adjourned the meeting at 7:27 p.m.
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Certificate
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City of Orono. Minnesota to register Us Public Facilities Prvenuc Bonds. Series 199 1.
CnY OF ORONO. MINNESOTADated: November 12, 1991
LRv l^ty^^',7^
Its Finance Director
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