07/24/2006 Council Packet - Laserfiche WebLink

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EXTRAORDINARY REDEMPTION The Bonds are subject to extraordinary redemption on any day in whole, but not in part, at a redemption price equal to par, plus accrued interest to the redemption date, upon conveyance, lease or transfer in other mode of the YMCA Project to an entity that is not a qualified 501(c)(3) entity under the Internal Revenue Code of 1987, as amended, or a unit of state or local government, in connection with the foreclosure of the Mortgage, Security Agreement, Fixture Financing Agreement and Assignment of Leases and Rents from the YMCA of Greater Saint Paul, a Minnesota nonprofit corporation, for the benefit of Patriot Bank Minnesota, pursuant to the issuance of the City's Revenue Note (YMCA Project) Series 2006A and Revenue Note (YMCA Project) Series 2006B. 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 abatement revenues. The proceeds will be used to finance a joint project between the City and the YMCA of Greater St. Paul pursuant to a development agreement. TYPE OF PROPOSALS Proposals shall be for not Tess than $2,432,940 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $24,600, payable to the order of the City. If a check is used, it must accompany the 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 City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The Deposit received from the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser, will be deposited by the City. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or 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 proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein.