HomeMy WebLinkAbout10-13-1997 EDA PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
OCTOBER 13, 1997
6:00 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of Monday, August 25, 1997
3. Public Hearing on the proposed sale of property in the Apollo Business Park to Rice
Industries, Inc.
3A. Resolution No. 97-19 authorizing sale of property to Rice Industries, Inc.
4. Consideration of Contract for Private Development between Lino Lakes EDA and Rice
Industries, Inc.
5. Consideration of Resolution No. 97-13 adopting a modified plan for Tax Increment
Financing District No. 1-7, Apollo Business Park
6. Consideration of Resolution No. 97-14 adopting modified plans for Tax Increment
Financing District Nos. 1-1 (Rice Lake Estates) and 1-2 (Sunrise Meadows)
7. Consideration of Resolution No. 97-15 requesting Anoka County to decertify TIF
District No. 1-1, Rice Lake Estates
8. Consideration of Resolution No. 97-16 requesting Anoka County to decertify TIF
District No. 1-2, Sunrise Meadows
9. Consideration of Resolution No. 97-17 requesting Anoka County to decertify TIF
District No. 1-3, Ross' Corners
10. Consideration of Resolution No. 97-18 providing for the issuance and sale of $3.5
million Lease Revenue Bonds, Series 1997
11. Adjourn
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
DATE: August 25, 1997
MEMBERS
PRESENT: J. Landers, S. Kuether, C. Lyden, J. Bergeson, A. Neal
OTHERS
PRESENT: B. Wessel, M. Divine
CONSIDERATION OF MINUTES
EDA Member Neal moved to approve the minutes of June 23, 1997. EDA Member Lyden
seconded the motion. Motion passed unanimously.
CONSIDERATION OF RESOLUTION NO. 97-10 AUTHORIZING PREPARATION
OF A MODIFIED PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND
MODIFIED PLANS FOR TIF DISTRICT NOS. 1-1 AND 1-2
Mr. Wessel explained that this modification is required to transfer funds from the two TIF
Districts to use for public improvements elsewhere in the Development District. TIF
District 1-1 was created in 1987 and had no expenses related to it. The budget was to be
increased by $630,000 to be able to use the available funds. TIF District 1-2 was to be
increased by $257,000 to make use of the funds available in that district. Once the funds
have been transferred the districts will be decertified. If these funds are not used by the
city for such purposes as land acquisition, site improvements, utilities or administration,
the city would forfeit the funds.
Mr. Wessel said the funds were expected to be used for public improvements in the
Village, but it was not necessary to decide on the use at this time. Mr. Landers noted that
only two TIF districts had been created in residential areas of the city, and former councils
must accept that responsibility. TIF District No. 1-1 was completed just days before the
law changed so that TIF could no longer be used for residential development.
EDA Member Bergeson moved to approve Resolution No. 97-10. EDA Member Lyden
seconded the motion. Motion passed unanimously.
CONSIDERATION OF RESOLUTION NO. 97-11 AUTHORIZING PREPARATION
OF A MODIFIED PLAN FOR TIF DISTRICT NO. 1-7
Mr. Wessel explained that Rice Industries wished to purchase the last remaining parcel in
the city -owned portion of the Apollo Business Park. The 20-year-old distribution company
was currently located in Shoreview. It is one of four distributors for Ashland Chemical,
and last annual sales were $7 million. They plan to build 10,000 square feet, with the
potential to expand to 20,000 square feet. They plan to get all approvals complete this fall
and begin construction in March 1998.
Mr. Wessel explained that the TIF proposal was within 12% of the estimated market
value. The TIF would be used to pay off$51,260 in assessments, $8,583 in land write
down, and $8,000 in administrative fees.
EDA Member Kuether moved to adopt Resolution No. 97-11. EDA Member Neal
seconded the motion. Motion passed unanimously.
CONSIDERATION OF RESOLUTION NO. 97-12 SETTING A PUBLIC HEARING
FOR THE PROPOSED SALE OF PROPERTY TO RICE INDUSTRIES
Mr. Wessel reminded the members that a public hearing is required when the EDA is
writing down the cost of city owned land. He requested that hearing be set for 6 p.m. on
Monday, October 13. EDA Member Kuether moved to approve Resolution No. 97-12.
EDA Member Neal seconded the motion. Motion passed unanimously.
ADJOURNMENT
EDA Member Neal moved to adjourn. EDA Member Kuether seconded the motion.
Motion passed unanimously. Meeting adjourned at 6:15 p.m.
AGENDA ITEM 3
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Public Hearing on the proposed sale of property in
the Apollo Business Park to Rice Industries, Inc.
BACKGROUND:
Rice Industries is purchasing the last remaining 1.9-acre parcel in the city -
owned portion of the Apollo Business Park. The city is selling the land in the
park for $39,000 per acre, plus assessments. A public hearing is required when
the city is writing down the cost of city -owned property.
OPTIONS:
1. Open the public hearing
2. Continue the public hearing
RECOMMENDATION:
Option 1
AGENDA ITEM 3A
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Consideration of Resolution No. 97-19 authorizing sale of property
to Rice Industries, Inc.
BACKGROUND:
Resolution No. 97-19 will complete the EDA's transaction for the sale of property
in the Apollo Business Park to Rice Industries. Closing on the sale of the
property will be scheduled after site and building plan approval by the city
council.
OPTIONS:
1. Adopt Resolution No. 97-19 authorizing sale of property to Rice Industries
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 97-19
RESOLUTION AUTHORIZING THE SALE OF PROPERTY
BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows:
Section 1. Recitals
1.01. The Lino Lakes Economic Development Authority (the "Authority") adopted a tax
increment financing plan (the "Plan") for the Tax Increment Financing District No. 1-7 (TIF
District No. 1-7) on May 22, 1995.
1.02. On May 22, 1995, the City Council of the City of Lino Lakes (the "City") approved
the Plan.
1.03. On March 25, 1996 the City approved a modified tax increment financing plan for
TIF District No. 1-7 to expand the district to provide expanded employment opportunities and to
increase the tax base of Lino Lakes.
1.04. The EDA entered into a development agreement with Rice Industries, Inc., a
Minnesota Corporation (the "Developer") whereby the EDA agreed to purchase property legally
described as that part of Outlot B, Apollo Business Park, Anoka County, Minnesota lying
southwesterly of Line A as described below and northeasterly of Line B and its northwesterly
extension as described below:
LINE A: Commencing at the most northerly corner of said Outlot B; thence on an assumed
bearing of South 58 degrees 02 minutes 08 seconds West along the northwesterly line of said
Outlot B a distance of 126.35 feet; thence southwesterly along said northwesterly line being a
tangential curve concave to the southeast, having a radius of 799.00 feet, a central angle of 17
degrees 50 minutes 56 seconds and an arc length of 248.91 feet; thence South 40 degrees 11
minutes 12 seconds West along said northwesterly line and tangent to said curve 337.84 feet;
thence southwesterly 64.15 feet on a tangential curve concave to the southeast, having a radius of
799.00 feet and a central angle of 04 degrees 36 minutes 00 seconds to a point hereinafter
referred to as Point "A", said Point "A" also being the point of beginning of Line A to be
described; thence South 49 degrees 48 minutes 48 seconds East 295.14 feet to the southeasterly
line of said Outlot B and there terminating.
LINE B: Commencing at Point "A" as described above; thence South 23 degrees 01 minutes 44
seconds West 347.44 feet to the point of beginning of Line B to be described; thence South 57
degrees 35 minutes 05 seconds East 203.37 feet to the southeasterly line of said Outlot B and
there terminating.
Subject to an easement for ingress and egress over and across the Northeasterly 10 feet of the
Northwesterly 60 feet thereof (the "Property"), from the City for $63,570 and to resell it to the
Developer for $54,987 subject to the EDA's compliance with the requirements of Minnesota
Statutes, section 469.105.
1.05. Pursuant to Minnesota Statutes, section 469.105, the EDA has held a public hearing
on the proposed sale of the Property to the Developer, following published notice as required by
law, at which hearing all persons wishing to express an opinion were given an opportunity to do
so.
Section 2. Findings.
2.01. It is hereby found and determined that the sale of the Property to the Developer is in
the best interest of the EDA.
2.02. It is hereby found and determined that the sale of the Property furthers the EDA's
general plan of economic development of the community.
Section 3. Authorization.
3.01. The President and Executive Director are hereby authorized and directed to execute
a quit claim deed and other appropriate documents to facilitate sale of the Property to the
Developer.
3.02. The President, Executive Director, staff and consultants are hereby authorized and
directed to take any and all other steps necessary or convenient in order to accomplish the sale of
the Property.
Dated: October 13, 1997.
President
ATTEST:
Executive Director
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
AGENDA ITEM 4
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Consideration of the Contract for Private
Development between Lino Lakes EDA and Rice
Industries, Inc.
BACKGROUND:
This development contract between the EDA and Rice Industries outlines the
conditions for public assistance. At the time of the proposal, the parcel of land in
the Apollo Business Park had been surveyed at 1.63 acres. Upon further
investigation by the city's consulting engineer, it was concluded that the ponding
area set aside for storm water runoff was larger than actually needed. An
additional .28 acres is available for Rice Industries use, and is of no benefit to
the city.
This agreement sells the 1.91 acres of land to Rice Industries at the cost of 1.63
acres of land, plus assessments on the entire 1.91 acres. With administrative
fees, the purchase price is $122,830. The agreement calls for a subsidy of
$51,260 for assessments, $8,583 towards land costs, and $8,000 in
administrative fees, for a total of $67,843. Because the subsidy for land costs is
minimal, the entire subsidy will be paid upfront. The TIF subsidy is 12% of the
total project cost.
OPTIONS:
1. Approve the contract for private development between Lino Lakes EDA and
Rice Industries, Inc.
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
AGENDA ITEM 5
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Resolution No. 97-13 adopting the modified Tax
Increment Financing Plan for TIF District No. 1-7,
Apollo Business Park
BACKGROUND:
The EDA authorized preparation of the modified plan for TIF District 1-7 on
August 25, 1997. This modification was in response to a development proposal
by Rice Industries to construct a 10,000 square foot office/manufacturing facility
in Apollo Business Park. Copies of the plan were sent to Anoka County and
White Bear Lake and Forest Lake School Districts. This resolution states that
the EDA finds the objectives for encouraging development are met with the
modification of this plan.
OPTIONS:
1. Adopt Resolution No. 97-13 for the modification of the Tax Increment
Financing Plan for TIF District No. 1-7
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 97-13
RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 1-7
BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows:
Section 1. Recitals.
1.01. The City Council of the City of Lino Lakes (the "City") established the Lino Lakes
Economic Development Authority (the "Authority") in 1990 and conferred upon it responsibility
for economic development within Lino Lakes.
1.02. The City adopted a tax increment financing plan (the "Plan") for Tax Increment
Financing District No. 1-7 on May 22, 1995.
1.03. In response to a development proposal from Rice Industries, Inc. the Authority and
the City have authorized the preparation of a modified Plan which is contained in a document
entitled "Modified Tax Increment Financing Plan, Tax Increment Financing District No. 1-7,"
dated October 13, 1997 and on file with the Authority.
Section 2. Authority Approval.
2.01. The Authority finds that the objectives of the Authority and the City of encouraging
development and redevelopment within Tax Increment Financing District No. 1-7 will be
advanced by adoption of the modified Plan.
2.02. The modified Plan is hereby adopted by the Authority.
Section 3. Further Proceedings.
3.01. It is noted that copies of the modified Plan have been transmitted to the boards of
Independent School District No. 12 and Independent School District No. 834 and the board of
commissioners of Anoka County for review and comment and that said public bodies have been
notified of the hearing to be held on the modified Plan by the City.
3.02. The Authority requests that the City hold a public hearing on the modified Plan
pursuant to Minnesota Statutes, section 469.175 as soon hereafter as is practicable and
recommends that the modified Plan be approved by the City.
3.03. Upon approval of the modified Plan by the City, the Authority's executive director is
authorized and directed to file a copy of the modified Plan with the Minnesota state auditor.
this
Adopted by the Lino Lakes Economic Development Authority, Lino Lakes, Minnesota
day of , 1997.
John L. Landers, President
ATTEST:
Randall Schumacher, Executive Director
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
AGENDA ITEM 6
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC:
BACKGROUND:
Resolution No. 97-14 adopting modified plans for Tax
Increment Financing District Nos. 1-2 (Rice Lake
Estates) and 1-2 (Sunrise Meadows)
On August 25, 1997 the EDA authorized preparation of a modification of the
plans for TIF District Nos. 1-1 and 1-2. This plan modification will authorize the
transfer of $630,000 from TIF District 1-1 and $370,000 from TIF District 1-2 for
public improvements within The Village.
The plan was sent to School District #12 and Anoka County for review. Later
tonight the City Council will hold a public hearing on the modification of the plans
and will then decertify the two districts.
OPTIONS:
1. Adopt Resolution No. 97-14 to modify tax increment financing plans for TIF
District Nos. 1-1 and 1-2.
2. Return to staff for further consideration.
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 97-14
RESOLUTION ADOPTING MODIFIED TAX INCREMENT FINANCING PLANS
FOR TAX INCREMENT FINANCING DISTRICT NOS. 1-1 AND 1-2
BE IT RESOLVED by the Lino Lakes Economic Development Authority as follows:
Section 1. Recitals.
1.01. The city council of the City of Lino Lakes (the "City") established Development
District No. 1 ("Development District") and Tax Increment Financing District No. 1-1 ("TTF
District No. 1-1") on January 26, 1987.
1.02. The City established Tax Increment Financing District No. 1-2 ("TIF District No.
1-2") on December 27, 1988.
1.03. The City established the Lino Lakes Economic Development Authority (the
"Authority") in 1990 and transferred authority for the Development District and TIF Districts No.
1-1 and 1-2 to the Authority.
1.04. In the past the Development District Program (the "Program") and the TIF Plans
have been modified to assist improvements within the Development District pursuant to
Minnesota Statutes, sections 469.174 through 469.179 (the "TIF Act") and sections 469.124
through 469.134 (the "City Development District Act").
1.05. It is proposed that the Plans for TIF District Nos. 1-1 and 1-2 again be modified in
order to authorize reimbursement to the City for public improvements within The Village.
1.06. The Authority and the City have authorized preparation of modified TIF Plans which
are contained in documents entitled "Modified Tax Increment Financing Plan, Tax Increment
Financing District No. 1-1," and "Modified Tax Increment Financing Plan, Tax Increment
Financing District No. 1-2," dated October 13, 1997 and on file with the Authority.
Section 2. Authority Approval.
2.01. The Authority finds that the objectives of the Authority and the City of encouraging
development and redevelopment within Development District No. 1 will be advanced by adoption
of the modified Plans.
2.02. The modified Plans are hereby adopted by the Authority.
Section 3. Further Proceedings.
3.01. It is noted that copies of the modified Plans have been transmitted to the board of
Independent School District No. 12 and the board of commissioners of Anoka County for review
and comment and that said public bodies have been notified of the hearing to be held on the
modified Plans by the City.
3.02. The Authority requests that the City hold a public hearing on the modified Plans
pursuant to Minnesota Statutes, section 469.175, subd. 4, as soon hereafter as is practicable and
recommends that the modified Plan be approved by the City.
3.03. Upon approval of the modified Plans by the City, the Authority's executive director
is authorized and directed to file copies of the modified Plans with the Minnesota commissioner of
revenue.
this
Adopted by the Lino Lakes Economic Development Authority, Lino Lakes, Minnesota
day of , 1997.
President
ATTEST:
Executive Director
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
AGENDA ITEM 7
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Resolution No. 97-15 requesting Anoka County to
decertify Tax Increment Financing District No. 1-1
(Rice Lake Estates)
BACKGROUND:
The TIF District established in 1987 was originally for the authorization of the
sale of bonds for sanitary sewer improvements within Rice Lake Estates. After
adoption of the TIF plan, the developer of the subdivision financed these
improvements, so city did not sell bonds as previously authorized. In 1995 the
city reimbursed the service area fund $1.47 million from the TIF District for the
construction of the West Central Trunk sewer. Tonight's modification was for use
in construction of public improvements in the Village. The objectives for which
TIF District No. 1-1 was established have been accomplished and this resolution
asks Anoka County to decertify the district effective December 31, 1997.
OPTIONS:
1. Adopt Resolution No. 97-15 requesting Anoka County to decertify Tax
Increment Financing District No. 1-1
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 9 7 -15
RESOLUTION REQUESTING ANOKA COUNTY TO
DECERTIFY TAX INCREMENT FINANCING DISTRICT NO.
1-1
WHEREAS, the City Council of the City of Lino Lakes (the "City") established Tax
Increment Financing District No. 1-1 ("TIF District No. 1-1") on January 26, 1987; and
WHEREAS, administrative responsibility for TIF District No. 1-1 was transferred in 1990
from the City to the Lino Lakes Economic Development Authority (the "Authority"); and
WHEREAS, the Authority amended the plan for TIF District No. 1-1 on December 18,
1995 and again on October 13, 1997 to modify the budget; and
WHEREAS, the Authority believes that the objectives for which TIF District No. 1-1 was
created and maintained have now been accomplished; and
WHEREAS, the Authority intends to request that Anoka County decertify TIF District No.
1-1, effective December 31, 1997.
NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development
Authority as follows:
1. It is hereby found and determined by the Authority that the goals and objectives
for which TIF District No. 1-1 was established in 1987 have been fulfilled and
there is no longer a reason for the TIF District to remain in existence.
2. The Authority asks the City to join with it in requesting that Anoka County
decertify TIF District No. 1-1, effective December 31, 1997.
3. The Authority authorizes and directs City staff to transfer all funds from the
account of the TIF District prior to decertification of the TIF District, all in
accordance with the modified TIF plan adopted on this date.
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4. The staff and consultants are hereby authorized and directed to take any and all
other actions which may be necessary to accomplish the intent of this resolution.
Dated: October 13, 1997.
John L. Landers, President
ATTEST:
Randall Schumacher, Executive Director
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
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AGENDA ITEM 8
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Resolution No. 97-16 requesting Anoka County to
decertify Tax Increment Financing District No. 1-2
(Sunrise Meadows)
BACKGROUND:
The TIF District established in 1988 was originally for the authorization of the
sale of bonds for sanitary sewer improvements within Sunrise Meadows. As with
Rice Lake Estates, the improvements were ultimately financed by the developer,
so city did not sell bonds as previously authorized. The city later constructed the
West Central Trunk project with funds from the service area fund, and in 1995
the city reimbursed the service area fund $630,000 from the TIF District.
Tonight's modification was for use in construction of public improvements in the
Village. The objectives for which TIF District No. 1-2 was established have been
accomplished and this resolution asks Anoka County to decertify the district
effective December 31, 1997.
OPTIONS:
1. Adopt Resolution No. 97-16 requesting Anoka County to decertify Tax
Increment Financing District No. 1-2
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption:
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 97-16
RESOLUTION REQUESTING ANOKA COUNTY TO
DECERTIFY TAX INCREMENT FINANCING DISTRICT NO.
1-2
WHEREAS, the City Council of the City of Lino Lakes (the "City") established Tax
Increment Financing District No. 1-2 ("TIF District No. 1-2") on December 27, 1988; and
WHEREAS, administrative responsibility for TIF District No. 1-2 was transferred in 1990
from the City to the Lino Lakes Economic Development Authority (the "Authority"); and
WHEREAS, the Authority amended the plan for TIF District No. 1-2 on December 18,
1995 and again on October 13, 1997 to modify the budget; and
WHEREAS, the Authority believes that the objectives for which TIF District No. 1-2 was
created and maintained have now been accomplished; and
WHEREAS, the Authority intends to request that Anoka County decertify TIF District No.
1-2, effective December 31, 1997.
NOW, THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development
Authority as follows:
1. It is hereby found and determined by the Authority that the goals and objectives
for which TIF District No. 1-2 was established in 1988 have been fulfilled and
there is no longer a reason for the TIF District to remain in existence.
2. The Authority asks the City to join with it in requesting that Anoka County
decertify TIF District No. 1-2, effective December 31, 1997.
3. The Authority authorizes and directs City staff to transfer all funds from the
account of the TIF District prior to decertification of the TIF District, all in
accordance with the modified TIF plan adopted on this date.
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LN140-44
4. The staff and consultants are hereby authorized and directed to take any and all
other actions which may be necessary to accomplish the intent of this resolution.
Dated: October 13, 1997.
John L. Landers, President
ATTEST:
Randall Schumacher, Executive Director
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
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LN140-44
AGENDA ITEM 9
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13/97
TOPIC: Resolution No. 97-17 requesting Anoka County to
decertify Tax Increment Financing District No. 1-3
(Ross' Corners)
BACKGROUND:
The TIF District was established in 1989 in order to assist with the
redevelopment of the site of the former Ross liquor store. Since no development
has occurred, the district has been inactive and no tax increment has been
collected. This resolution asks Anoka County to decertify the district effective
immediately.
OPTIONS:
1. Adopt Resolution No. 97-17 requesting Anoka County to decertify Tax
Increment Financing District No. 1-3
2. Return to staff for further consideration
RECOMMENDATION:
Option 1
Member introduced the following resolution and moved its adoption_
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 9 7 -17
RESOLUTION REQUESTING ANOKA COUNTY TO
DECERTIFY TAX INCREMENT FINANCING DISTRICT NO.
1-3
WHEREAS, the City Council of the City of Lino Lakes (the "City") approved Tax
Increment Financing District No. 1-3 ("TIF District No. 1-3") on October 10, 1989 in order to
assist in the redevelopment of the site of the former Ross liquor store; and
WHEREAS, in 1990, administrative responsibility for TIF District No. 1-3 was transferred
by the City to the Lino Lakes Economic Development Authority (the "Authority"); and
WHEREAS, Minnesota Statutes. section 469.176, subd. 1a specifies that no additional tax
increment may be paid to an authority from a tax increment district after three years from the
date of certification unless within said three years, land is purchased, bonds are sold or
improvements constructed; and
WHEREAS, within three years of the date of certification of TIF District No. 1-3, none
of these qualifying activities occurred.
NOW. THEREFORE, BE IT RESOLVED by the Lino Lakes Economic Development
Authority as follows:
1. The Authority requests the City to join with it in requesting that Anoka County
decertify TIF District No. 1-3, effective immediately.
2. Staff and consultants are hereby authorized and directed to take any additional
actions necessary or convenient to fulfill the purpose of this resolution.
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Dated: October 13, 1997.
Al i EST:
Randall Schumacher, Executive Director
John L. Landers, President
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against same:
Whereupon said resolution was declared duly passed and adopted.
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A ITEM 0
STAFF ORIGINATOR: Brian Wessel
DATE: 10/13197
TOPIC: Consideration of Resolution No. 97-18 providing for
the issuance and sale of 3.5 miltic n Lease Revenue
Bonds
BAC
GRO
D:
The issuance and sale of $3.5 million in 0-year Lease Revenue Bonds is to
assist in the financing of the construction of the public facilities complex in The
Village. The interest rate is estimated at 5.9%. These bonds are not general
obligation bonds of either the EDA or the city.
The bonds will be scheduled for sale on Monday,`November 10, 1997.
OPTIONS:
1. Approve Resolution No. 97-18, providing for the issuance and sale of $3.5
million Lease Revenue Bonds
2. Return to staff for fu
RECOMMENDATION
Option 1
Extract of Minutes of Meeting
of the Board of Commissioners
of the Lino Lakes Economic Development Authority
Anoka County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the Board of Commissioners
of the Lino Lakes Economic Development Authority, Anoka County, Minnesota, was held at the
City Hall in the City on Monday, October 13, 1997, commencing at 6:00 o'clock P.M.
The following members of the Board of Commissioners were present:
and the following were absent:
The following written resolution was presented by Commissioner who
moved its adoption, the reading of which had been dispensed with by unanimous consent:
LNI
RESOLUTION NO__ 18
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
S3,500,000 LEASE REVENUE BONDS, SERIES 1997
(CITY OF LINO LAKES, MINNESOTA
LEASE OBLIGATION)
BE IT RESOLVED By the Board of Commissioners of the Lino Lakes Economic
Development Authority, Anoka County, Minnesota (the "Authority") as follows:
1 _ It has been proposed to the Authority that the Authority 's ist in the financing of
the acquisition and construction of a site and facilities to be used by the City of Lino Lakes,
Minnesota (the "City"). Under the proposal, the City and the Authority will enter into a Ground
Lease Agreement (the "Ground Le se."), whereby the City will lease to the Authority certain land
in the City (the "Site"). The Authority will lease to the City the Site and the facilities to be
constructed thereon by the City (the "Facilities"), pursuant to a Lease -Purchase Agreement (the
"Lease"). Pursuant to a Trust Indenture (the "Indenture") between the Authority and a corporate
trustee (the "Trustee"), the Authority will issue $3,500,000 aggregate principal amount of Lease
Revenue Bonds, Series 1997 (City of Lino Lakes, Minnesota Lease Obligation) (the "Bonds"),
the proceeds of which will be used to finance the acquisition and construction of the Site and the
Facilities. The Authority will enter into an Assignment and Security Agreement (the
"Assignment") with the Trustee, whereby the Authority will assign to the Trustee, as security for
the Bonds, all of the Authority's right, title and interest in and to the Ground Lease, the Lease
and the Lease Payments to be made by the City under the Lease (other than certain rights to
indemnification and payment of the Authority's expenses). The Bonds will be payable solely
from Lease Payments received from the City under the Lease and moneys realized by the Trustee
from re -leasing the Site and the Facilities following default or termination of the Lease, and the
Authority shall have no liability with respect to the Bonds.
2_ To provide financing for the acquisition and construction of the Site and the
Facilities, including costs of issuance and the establishment of a Reserve Fund for the Bonds
under the Indenture, the Authority will issue and sell the Bonds in the amount of S3,500,000.
The Bonds will be issued, sold and delivered in accordance with the terms of the following Terms
of Proposl, which are hereby approved:
3_ Springsted Incorporated is authorized and directed to negotiate the Bonds in
accordance with the foregoing Terms of Proposal_ The Board of Commissioners will meet at
6:00 o'clock P_M_ on Monday, November 10, 1997, to consider proposals on the Bonds and take
any other appropriate action with respect to the Bonds_
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner , and upon vote being taken thereon the following members voted
in favor of the motion:
and the following voted agRinst:
whereupon the resolution was declared duly passed and adopted.
STATE OF MINNESOTA
COUNTY OF ANOKA
I, the undersigned, being the duly qualified and acting Executive Director of the Lino
Lakes Economic Development Authority, hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the Board of Commissioners
of the Authority held on Monday, October 13, 1997, with the original minutes on file in my
office and the extract is a frill, true and correct copy of the minutes, insofar as they relate to the
issuance and sale of $3,500,000 Lease Revenue Bonds, Series 1997 (City of Lino Lakes,
Minnesota Lease Obligation) of the Authority_
WITNESS My hand this day of , 1997.
Executive Director
THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$3,500,000
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA
LEASE REVENUE BONDS, SERIES 1997
(CITY OF LINO LAKES, MINNESOTA LEASE OBLIGATION)
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, November 10, 1997, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the Authority Board at 6:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 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 (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one -hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 500 Main Street,
Suite 1010, Fort Worth, TX 76102, telephone (817) 885-8900. Neither the Authority nor
Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders
are advised that each Proposal shall be deemed to constitute a contract between the bidder
and the Authority -to purchase the Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 1997, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1998. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2000 $70,000
2001 $55,000
2002 $60,000
2003 $70,000
2004 $75,000
2005 $ 60,000
2006 $ 70,000
2007 $ 80,000
2008 $ 95,000
2009 $105,000
2010 $120,000
2011 $230,000
2012 $245,000
2013 $260,000
2014 $275,000
2015 $290,000
2016 $305,000
2017 $325,000
2018 $345,000
2019 $365,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds, provided that no serial bond may mature on or after the first mandatory
sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory
-i-
sinking fund redemption and must conform to the maturity schedule set forth above at a price of
par plus accrued interest to the date of redemption. In order to designate term bonds, the
proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the
spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the 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 Bonds. Individual purchases
of the 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 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 Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The Authority will name the registrar which shall be subject to applicable SEC regulations. The
Authority will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Authority may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due
on or after February 1, 2006. Redemption may be in whole or in part and if in part at the option
of the Authority and in such manner as the Authority shall determine. If less than all Bonds of a
maturity are called for redemption, the Authority will notify DTC of the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in
such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par
plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be special obligations of the Authority payable solely from lease payments to be
received from the City of Lino Lakes, Minnesota pursuant to a lease agreement and shall not
constitute a debt for which the faith and credit or taxing powers of the Authority will be pledged.
The proceeds will be used to finance the construction of a municipal complex to house City
Hall, police facilities and a community education center.
TYPE OF PROPOSALS
Proposals shall be for not less than $3,447,500 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 $35,000,
payable to the order of the Authority. If a check is used, it must accompany each 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 Authority. 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 Authority to satisfy
the Deposit requirement. The Authority will deposit the check of the purchaser, the amount of
which will be deducted at settlement and no interest will accrue to the purchaser. In the event
the purchaser fails to comply with the accepted proposal, said amount will be retained by the
Authority. No proposal can be withdrawn or amended after the time set for receiving proposals
unless the meeting of the Authority 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 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 Authority's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The Authority 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 which the Authority determines to have failed to
comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the Authority has requested and
received a rating on the Bonds from a rating agency, the Authority will pay that rating fee. Any
other rating agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the Authority and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven,
Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no -litigation
certificate. On the date of settlement payment for the Bonds shall be made in federal, or
equivalent, funds which shall be received at the offices of the Authority or its designee not later
than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds
shall have been made impossible by action of the Authority, or its agents, the purchaser shall
be liable to the Authority for any loss suffered by the Authority 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 of Lino Lakes will undertake, pursuant to a
Continuing Disclosure Certificate, 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 Bonds will be conditioned upon its receiving the Continuing Disclosure
Certificate at or prior to delivery of the Bonds.
OFFICIAL STATEMENT
The Authority has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the Authority, Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone
(612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the Authority with
respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the Authority agrees that,
no more than seven business days after the date of such award, it shall provide without cost to
the senior managing underwriter of the syndicate to which the Bonds are awarded 140 copies
of the Official Statement and the addendum or addenda described above. The Authority
designates the senior managing underwriter of the syndicate to which the Bonds are awarded
as its agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds
agrees thereby that if its proposal is accepted by the Authority (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Bonds for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
Dated October 13, -1997 BY ORDER OF THE AUTHORITY BOARD
/s/ Marilyn Anderson
Clerk
- iv -
Recommendations
For
Lino Lakes Economic Development
Authority, Minnesota
$3,500,000
Lease Revenue Bonds, Series 1997
(City of Lino Lakes, Minnesota Lease Obligations)
Presented to:
Members, Economic Development Authority
Ms. Mary Vaske, Finance Director
Lino Lakes Economic Development Authority
1189 Main Street
Lino Lakes, MN 55014-2123
Study No.: L0502D2
SPRINGSTED Incorporated
October 9, 1997
SPRINGSTED
Public Finance Advisors
RECOMMENDATIONS
Re: Recommendations for the Issuance of $3,500,000 Lease Revenue Bonds, Series 1997
The bonds will be issued by the Lino Lakes Economic Development Authority ("EDA") for the
benefit of the City of Lino Lakes to finance the construction of municipal complex in the City.
The composition of the issue is shown on page 4.
We recommend the following for the bonds:
1. Action Requested
2. Sale Date and Time
3. Principal Amount of Offering
4. Repayment Term
5. First Annual Appropriation and Source
of Payments
6. Prepayment Provisions
7. Credit Rating Comments
8. Bank Qualification
To establish the date and time of receiving
bids and establish the terms and conditions
of the offering.
Monday, November 10, 1997 at 11:00 A.M.
with award by the Authority Board at
6:00 P.M. of that same day.
$3,500,000
Principal payments will be made annually
February 1, 2000 through 2019. Interest
payments on the issue will be made semi-
annually each February 1 and August 1,
commencing August 1, 1998.
The City will make its first appropriation for
lease payments in its budget for fiscal year
1998. Each annual appropriation made by
the City will support the August 1 interest
payment and the subsequent February 1
principal and interest payment. Capitalized
interest has been included in the principal
amount of the issue to cover interest
payments due through February 1, 2000.
Bonds maturing on or after February 1, 2006
will be callable February 1, 2005 at a price of
par plus accrued interest.
We recommend the Authority apply to
Moody's Investors Service for a rating on the
bonds. The Authority's rating designation on
the lease revenue bonds will be determined
in conjunction with the rating review of the
City's general obligation issues. Ratings on
lease revenue bonds are lower than the
issuer's general obligation rating. Moody's
will require title insurance before rating the
issue.
The City and the EDA together will not be
issuing more than $10,000,000 of tax-
exempt obligations in 1997, and therefore
this issue will be bank -qualified. Issues
Line Lakes Economic Development Authority, Minnesota
October 9, 1997
9. Rebate Requirements
10. Bona Fide Debt Service Fund
11. Economic Life
12. Continuing Disclosure
which are bank -qualified typically receive
slightly lower interest rates than issues
which are not bank -qualified.
Proceeds of the Bonds are subject to the
federal arbitrage rebate requirements.
However, investments on the bond proceeds
will be exempt from rebate if the EDA can
meet either the two-year or eighteen -month
spend -down provisions.
The EDA must maintain a bona fide debt
service fund, including the reserve account
being funded from proceeds of the Bonds,
or be subject to yield restriction or pay back
to the federal government excess
investment earnings. A bona fide debt
service fund is a fund for which there is an
equal matching of revenue to debt service
expense, with a carry-over permitted equal
to the greater of the investment earnings in
the fund during that year or 1/12 of the debt
service of that year. The reserve account
will meet arbitrage requirements so long as it
is the lesser of 10% of principal, 100% of
maximum annual principal and interest or
125% of the average annual principal and
interest requirement. The reserve
requirement is expected to be at maximum
annual principal and interest.
The average life of the bonds cannot exceed
120% of the economic life of the project to
be financed. The economic life of this
project is 40-50 years, therefore it is within
the economic life requirements.
The new SEC rules require the City, as the
obligated party, to undertake an annual
update of its Official Statement information
and report any material events to the
national repositories. Springsted provides
continuing disclosure services and we have
previously forwarded to City staff information
relating to these services.
13. Attachments Debt Service Schedule
Terms of Proposal
Page 2
Line Lakes Economic Development Authority, Minnesota
October 9, 1997
DISCUSSION
The bonds will be issued as revenue bonds by the EDA which will lease the building to the City
pursuant to a lease agreement (the "Lease") to be executed by both parties. The lease
payments will be made by the City directly to a bank who will act as trustee for the bonds. The
required semi-annual lease payments will match the actual debt service due on the bonds, as
estimated on page 4.
These bonds are not general obligations of either the EDA or the City. Under State law, the
City must budget the annual lease payments every year as an operating expenditure. The City
has the right, under the Lease, to make the decision not to appropriate the lease payment in
any year, which would terminate the Lease, and the building would be taken back by the EDA.
If this were to happen, the EDA would have to try to find a new tenant for the building. There is
no pledge by the EDA or the City to continue to make debt service payments to bondholders
except by re -leasing the building or using money in the debt service reserve fund which is equal
to approximately $350,000, which represents 10% of the amount of principal issued.
Page 4 shows the debt service schedule for this issue. The twenty-year debt service
requirement was structured around new and existing debt giving a combined level debt service
requirement for both issues as requested by City staff. The bonds will be dated December 1,
1997. The lease payments made by the City, are anticipated to be made from an annually
appropriated tax levy and lease payments received from Independent School District 12,
Centennial, Minnesota, in the initial amount of $120,000, with a 3% increase in rental payments
on an annual basis for ten years. See column 10 on page 4.
While the City has the option not to appropriate funds annually, the City should be entering into
this lease with the full understanding that adequate appropriations will be made. Failure to
appropriate funds will result in an adverse rating action that would affect the City's ability to
finance future capital projects.
Because of the less secure nature of this obligation in the eyes of the bondholders, a debt
service reserve fund (in the amount of the maximum annual debt service) will be required and
will be pledged to the payment of debt service as needed. We understand the City will fund this
reserve at closing from proceeds of the Bonds. The trustee for the bonds will hold the reserve
fund, as well as all other bond proceeds and debt service payments. The EDA and the trustee
will enter into a Trust Indenture for this service.
Respectfully submitted,
fi / 0,0v)
SPRINGSTED Incorporated
jmm
a,b41
Page 3
Increase
Due to
This Issue
(12)
0 0) O (O U) r' CO to U) OD (0 OD OD U) 0) OD CD 0 0 0
tC) N N O N O Tr n Ps 1." r N.- N C U) O O O
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$ 1,508,614 I $ 1,375,666 I $ 6,495,506 I $ 5,106,892
Total
Net
Requirement
(11)
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N N N N N N N N N M O) C) Cr) C+) O) C) C') C) C') CO
Projected
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Income
(10)
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(9)
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(8)
O (') C') OD OD CO CO OD O O OD C') C') M U) U) O CO O 0 0
U) C) V' CO C') 00 N 0 d' T.- Tr N.- N '7 U) Tr 0 O O
e- C) C') Tr. 0 N N U) C!) N Tf ^ (O U) v_ OD N A-- (0 C)
0 1-:A2 .- C') d' . CO C') N 6 N CO OO t` U> r- N (0
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(.0
(»
Capitalized
Interest
(7)
e-
47)
CD
CV
I $ 233,511
Total
Principal &
Interest
(6)
T- CD M 0 CO 00 N OD OD OD CO 00 00 C7 LID 0 OD OD O O 0
T 0 M Tr CO C') O N CO Tr 1- Tr N N '7 U) Tr 0 0 0
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$ 6,596,069
Interest
(5)
e- co co OD CD OD CD CO OD O O OD CO M U) to 0 OD O O O
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Composition of Issue
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69 69.
Annual Interest
Page 4
2
Prepared by Springsted Inc.
THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$3,500,000
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA
LEASE REVENUE BONDS, SERIES 1997
(CITY OF LINO LAKES, MINNESOTA LEASE OBLIGATION)
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, November 10, 1997, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the Authority Board at 6:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 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 (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one -hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 500 Main Street,
Suite 1010, Fort Worth, TX 76102, telephone (817) 885-8900. Neither the Authority nor
Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders
are advised that each Proposal shall be deemed to constitute a contract between the bidder
and the Authority to purchase the Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 1997, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1998. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2000 $70,000
2001 $55,000
2002 $60,000
2003 $70,000
2004 $75,000
2005 $ 60,000
2006 $ 70,000
2007 $ 80,000
2008 $ 95,000
2009 $105,000
2010 $120,000
2011 $230,000
2012 $245,000
2013 $260,000
2014 $275,000
2015 $290,000
2016 $305,000
2017 $325,000
2018 $345,000
2019 $365,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds, provided that no serial bond may mature on or after the first mandatory
sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory
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sinking fund redemption and must conform to the maturity schedule set forth above at a price of
par plus accrued interest to the date of redemption. In order to designate term bonds, the
proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the
spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the 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 Bonds. Individual purchases
of the 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 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 Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The Authority will name the registrar which shall be subject to applicable SEC regulations. The
Authority will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Authority may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due
on or after February 1, 2006. Redemption may be in whole or in part and if in part at the option
of the Authority and in such manner as the Authority shall determine. If less than all Bonds of a
maturity are called for redemption, the Authority will notify DTC of the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in
such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par
plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be special obligations of the Authority payable solely from lease payments to be
received from the City of Lino Lakes, Minnesota pursuant to a lease agreement and shall not
constitute a debt for which the faith and credit or taxing powers of the Authority will be pledged.
The proceeds will be used to finance the construction of a municipal complex to house City
Hall, police facilities and a community education center.
TYPE OF PROPOSALS
Proposals shall be for not less than $3,447,500 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 $35,000,
payable to the order of the Authority. If a check is used, it must accompany each 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 Authority. 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
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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 Authority to satisfy
the Deposit requirement. The Authority will deposit the check of the purchaser, the amount of
which will be deducted at settlement and no interest will accrue to the purchaser. In the event
the purchaser fails to comply with the accepted proposal, said amount will be retained by the
Authority. No proposal can be withdrawn or amended after the time set for receiving proposals
unless the meeting of the Authority 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 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 Authority's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The Authority 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 which the Authority determines to have failed to
comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the Authority has requested and
received a rating on the Bonds from a rating agency, the Authority will pay that rating fee. Any
other rating agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the Authority and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven,
Chartered of Minneapolis, Minnesota, and of customary closing papers, including a no -litigation
certificate. On the date of settlement payment for the Bonds shall be made in federal, or
equivalent, funds which shall be received at the offices of the Authority or its designee not later
than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds
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shall have been made impossible by action of the Authority, or its agents, the purchaser shall
be liable to the Authority for any Toss suffered by the Authority 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 of Lino Lakes will undertake, pursuant to a
Continuing Disclosure Certificate, 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 Bonds will be conditioned upon its receiving the Continuing Disclosure
Certificate at or prior to delivery of the Bonds.
OFFICIAL STATEMENT
The Authority has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the Authority, Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone
(612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the Authority with
respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the Authority agrees that,
no more than seven business days after the date of such award, it shall provide without cost to
the senior managing underwriter of the syndicate to which the Bonds are awarded 140 copies
of the Official Statement and the addendum or addenda described above. The Authority
designates the senior managing underwriter of the syndicate to which the Bonds are awarded
as its agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds
agrees thereby that if its proposal is accepted by the Authority (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Bonds for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
Dated October 13, 1997 BY ORDER OF THE AUTHORITY BOARD
/s/ Marilyn Anderson
Clerk
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