HomeMy WebLinkAbout2016-126 Council ResolutionRESOLUTION NO. 16426
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF GENERAL OBLIGATION TAX ABATEMENT REFUNDING
BONDS, SERIES 2016C, IN THE PROPOSED AGGREGATE
PRINCIPAL AMOUNT OF $1,600,000
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota
(the "City") as follows:
1. Authorization.
(a) The City previously issued its General Obligation Tax Abatement Bonds,
Series 2006C (the "Prior Bonds"), dated as of August 15, 2006, in the original aggregate principal
amount of $2,460,000, pursuant to Minnesota Statutes, Chapter 475, as amended, and Minnesota
Statutes, Sections 469.1812 through 469.1815, as amended (collectively, the "Act"). Proceeds of
the Prior Bonds were used to finance a portion of the approximately 45,000 square foot
recreational facility owned and operated by the Young Men's Christian Association of the
Greater Twin Cities, doing business as the YMCA of the Greater Twin Cities and
successor -in -interest to the YMCA of Greater Saint Paul (the "YMCA"), pursuant to a
Development Agreement, dated March 13, 2006, between the City and the YMCA. The Prior
Bonds are currently outstanding in the principal amount of $1,755,000, of which $1,565,000 in
principal amount is callable on or after February 1, 2017.
(b) The City is authorized by Section 475.67, subdivision 3 of the Act to issue and
sell its general obligation bonds to refund obligations and the interest thereon before the due date
of the obligations, if consistent with covenants made with the holders thereof, when determined
by the City Council to be necessary or desirable for the reduction of debt service costs to the City
or for the extension or adjustment of maturities in relation to the resources available for their
payment.
(c) It is necessary and desirable for the reduction of debt service costs to the City to
issue its General Obligation Tax Abatement Refunding Bonds, Series 2016C (the "Bonds"), in
the proposed aggregate principal amount of $1,600,000, pursuant to the Act, specifically
Section 475.67, subdivision 3, to redeem and prepay the outstanding principal amount of the
Refunded Bonds on February 1, 2017.
(d) The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate
the sale of the Bonds, it being determined that the City has retained an independent financial
advisor in connection with such sale. The actions of the City staff and the City's municipal
advisor in negotiating the sale of the Bonds are ratified and confirmed in all respects.
2. Sale of Bonds. To redeem and prepay the outstanding Prior Bonds on February 1, 2017
pursuant to the Act, specifically Section 475.67, subdivision 3, the City will therefore issue and sell the
Bonds in the proposed aggregate principal amount of $1,600,000, which amount is subject to adjustment
in accordance with the official Terms of Proposal attached hereto as EXHIBIT A (the "Terms of
Proposal"). The Bonds will be issued, sold, and delivered in accordance with the Terms of Proposal.
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3. Authority of Municipal Advisor. Springsted Incorporated is authorized and directed to
negotiate the Bonds on behalf of the City in accordance with the Terms of Proposal. The City Council
will meet at 6:30 P.M. on Monday, October 24, 2016, to consider proposals on the Bonds and take any
other appropriate action with respect to the Bonds.
4. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond
counsel for the City, is authorized to act as bond counsel and to assist in the preparation and review of
necessary documents, certificates and instruments relating to the Bonds. The officers, employees and
agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such
documents, certificates, and instruments.
5. Covenants. In the resolution awarding the sale of the Bonds the City Council will set
forth the covenants and undertakings required by the Act.
6. Official Statement. In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with Springsted Incorporated and 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.
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Adopted by the Council of the City of Lino Lakes this 26 day of Sept , 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Kusterman and was duly seconded by Council Member Manthey and upon vote
being taken thereon, the following voted in favor thereof:
Kusterman, Manthey, Maher, Rafferty, Reinert
The following voted against same:
none
ATTEST:
Juliane Bartell, City 1 lerk
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EXHIBIT A
TERMS OF PROPOSAL
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�... THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,600,000*
CITY OF LINO LAKES, MINNESOTA
GENERAL OBLIGATION TAX ABATEMENT REFUNDING BONDS, SERIES 2016C
(BOOK ENTRY ONLY)
Proposals for the Series 2016C Bonds will be received on Monday. October 24. 2016 until 11:00 A.M..
Central Time. at the offices of Springsted Incorporated. 380 Jackson Street. Suite 300. Saint Paul.
Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the
Series 2016C Bonds will be by the City Council at 6:00 P.M., Central Time. of the same day.
SUBMISSION OF PROPOSALS
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 advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Series 2016C Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding! Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals. without final price or coupons. may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons. by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®
For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY* for proposes of submitting its electronic proposal
in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City,
its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder. and
neither the City, its agents nor PARITY® shall be responsible for a bidder's failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
conuumiication mechanism to conduct the electronic bidding for the Series 2016C Bonds. and PARITY®
is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Tereus
of Proposal shall control. Further information about PARITY®. including any fee charged. may be
obtained from:
PARITY®. 1359 Broadway, 2nd Floor. New York. New York 10018
Customer Support: (212) 849-5000
Preliminary; subject to change.
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DETAILS OF THE SERIES 2016C BONDS
The Series 2016C Bonds will be dated as of the date of delivery and will bear interest payable on
February 1 and August 1 of each year, commencing August 1. 2017. Interest will be computed on the
basis of a 360 -day year of twelve 30 -day months.
The Series 2016C Bonds will mature February 1 in the years and amounts* as follows:
*
2018 $225.000
2019 $245.000
2020 $260.000 2022 $290.000
2021 $275.000 2023 $305.000
The City reserves the right, after proposals are opened and prior to award to increase or reduce the principal
amount of the Series 2016C Bonds or the amount of any maturity in multiples of $5,000. In the event the
amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross
spread per $1,000 of Series 2016C Bonds as that of the original proposal. Gross spread is the differential
between the price paid to the City for the new issue and the prices at n•hich the securities are initially offered to
the investing public.
Proposals for the Series 2016C Bonds may contain a maturity schedule providing for a combination of
serial bonds and term bonds. All tenn bonds shall be subject to mandatory sinking fund redemption at a
price of par plus accrued interest to the date of redemption scheduled to confonn to the maturity schedule
set forth above. In order to designate term bonds, the proposal must specify "Years of Tenn Maturities"
in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The Series 2016C Bonds will be issued by means of a book entry system with no physical distribution of
Series 2016C Bonds made to the public. The Series 2016C Bonds will be issued in fully registered form
and one Series 2016C Bond, representing the aggregate principal amount of the Series 2016C Bonds
maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust
Company ("DTC"), New York. New York. which will act as securities depository of the Series 2016C
Bonds. Individual purchases of the Series 2016C Bonds may be made in the principal amount of $5.000
or any multiple thereof of a single maturity through book entries made on the books and records of DTC
and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered
owner of the Series 2016C Bonds. Transfer of principal and interest payments to participants of DTC
will be the responsibility of DTC: transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial owners. The
purchaser. as a condition of delivery of the Series 2016C Bonds. will be required to deposit the
Series 2016C Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay
for the services of the registrar.
OPTIONAL REDEMPTION
The Series 2016C Bonds will not be subject to payment in advance of their respective stated maturity
dates.
EXTRAORDINARY REDEMPTION
The Series 2016C 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
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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 Series 2016C' 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 revenue derived by the City from specified properties. The proceeds will be used to refund the
February 1. 2018 through February 1. 2023 maturities of the City's General Obligation Tax Abatement
Bonds, Series 2006C. dated August 15. 2006.
BIDDING PARAMETERS
Proposals shall be for not less than $1.590.400 phis accrued interest. if any, on the total principal amount
of the Series 2016C Bonds. No proposal can be withdrawn or amended after the tune set for receiving
proposals unless the meeting of the City scheduled for award of the Series 2016C Bonds is adjourned.
recessed. or continued to another date without award of the Series 2016C Bonds having been made.
Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity
must be 98.0% or greater. Series 2016C Bonds of the same maturity shall bear a single rate from the date
of the Series 2016C Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award. the lowest bidder is required to submit a good faith deposit to
the City in the amount of $16.000 (the "Deposit") no later than 2:00 P.M.. Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier's
check payable to the City: or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time. the City may, at its sole discretion. reject the proposal of the lowest bidder.
direct the second lowest bidder to submit a Deposit. and thereafter award the sale to such bidder.
Certified or Cashier's Check. A Deposit made by certified or cashier's check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated.
380 Jackson Street. Suite 300. St. Paul. Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference munber by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released:
(ii) the amount of the wire transfer: and (iii) the issue to which it applies.
Once an award has been made. the Deposit received from the lowest bidder (the "purchaser") will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal. said amount will be retained by the City.
AWARD
The Series 2016C Bonds will be awarded on the basis of the lowest interest rate to be determined on a
true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The
City's computation of the interest rate of each proposal. in accordance with customary practice. will be
controlling.
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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 Series 2016C 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.
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre -approved a commitment for any policy of municipal bond insurance
with respect to the Series 2016C Bonds. If the Series 2016C Bonds qualify for municipal bond insurance
and a bidder desires to purchase a policy. such indication. the maturities to be insured, and the name of
the desired insurer must be set forth on the bidder's proposal. The City specifically reserves the right to
reject any bid specifying nnmicipal bond insurance. even though such bid may result in the lowest TIC to
the City. All costs associated with the issuance and administration of such policy and associated ratings
and expenses (other than any independent rating requested by the City) shall be paid by the successful
bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2016C
Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the
Series 2016C Bonds.
CUSIP NUMBERS
If the Series 2016C Bonds qualify for assignment of CUSIP munbers such muubers will be printed on the
Series 2016C Bonds. but neither the failure to print such numbers on any Series 2016C Bond nor any
error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Series 2016C Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
On or about November 23, 2016, the Series 2016C Bonds will be delivered without cost to the purchaser
through DTC in New York. New York. Delivery will be subject to receipt by the purchaser of an
approving legal opinion of Kemiedy R. Graven, Chartered of Minneapolis. Minnesota. and of customary
closing papers. including a no -litigation certificate. On the date of settlement. payment for the
Series 2016C Bonds shall be made in federal. or equivalent. funds that shall be received at the offices of
the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of
payment for the Series 2016C Bonds has been made impossible by action of the City. or its agents. the
purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's
non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2 -12(b)(5), the City will undertake. pursuant to the resolution awarding
sale of the Series 2016C Bonds. to provide annual reports and notices of certain events. A description of
this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the
Series 2016C Bonds will be conditioned upon receiving evidence of this undertaking at or prior to
delivery of the Series 2016C Bonds.
OFFICLAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
infonnation relative to the Series 2016C Bonds. and said Preliminary Official Statement will serve as a
nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange
Conunission. For copies of the Preliminary Official Statement or for any additional information prior to
sale. any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated.
380 Jackson Street. Suite 300. Saint Paul. Minnesota 55101, telephone (651) 223-3000.
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A Final Official Statement (as that term is defined in Rule 1.5c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Series 2016C Bonds. together with any other
information required by law. By awarding the Series 2016C Bonds to an underwriter or underwriting
syndicate. the City agrees that. no more than seven business days after the date of such award, it shall
provide without cost to the sole underwriter or to the senior managing underwriter of the syndicate (the
"Underwriter" for purposes of this paragraph) to which the Series 2016C Bonds are awarded up to
25 copies of the Final Official Statement. The City designates the Underwriter of the syndicate to which
the Series 2016C Bonds are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Such Underwriter agrees that if its proposal is accepted by
the City. (i) it shall accept designation and (ii) it shall enter into a contractual relationship with all
Participating Underwriters of the Series 2016C Bonds for purposes of assuring the receipt by each such
Participating Underwriter of the Final Official Statement.
Dated September 26. 2016 BY ORDER OF THE CITY COUNCIL
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/s/ Julie Bartell
City Clerk
�.. STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes,
Minnesota (the "City"), hereby certify that I have carefully compared the attached and foregoing extract
of minutes of a regular meeting of the City Council of the City held on Monday, September 26, 2016,
with the original minutes on file 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 the City's General Obligation Tax Abatement
Refunding Bonds, Series 2016C, in the proposed aggregate principal amount of $1,600,000.
WITNESS My hand as City Clerk and the corporate seal of the City this day of
, 2016.
City Clerk
City of Lino Lakes, Minnesota
(SEAL)
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