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HomeMy WebLinkAbout08/25/1988 Council MinutesSPECIAL COUNCIL MEETING 1 95 AUGUST 25, 1988 Mayor Benson called a Special Meeting of the Lino Lakes City Council to order on Wednesday, August 25, 1988 at 8:00 A.M. Council Members present: Neal, Bisel, Bohjanen, Reinert. Council Members absent: none. City Engineer, Ron Stahlberg; Fiscal Agent, David MacGillivray; Planner, John Miller; Administrator, Randy Schumacher and Clerk- Treasurer, Marilyn Anderson were also present. Public Works Director, Don Volk arrived about 8:30 A.M. Mayor Benson explained the purpose of the special meeting was to consider two bond sales, review the feasibility report for 2nd Avenue MSA improvement and consider a consensus for Gateway Foods proposal. CONSIDERATION OF RESOLUTION NO. 62 - 88 PROVIDING FOR THE SALE OF GENERAL OBLIGATION IMPROVEMENT BONDS IN THE AMOUNT OF $1,480,000.00 - DAVID MACGILLIVRAY Mr. MacGillivray explained the purpose of this bond sale is to refinance the 1985 Temporary Bond issued for the improvement of Rice Lake Estates and Weber's Addition and to finance the Ash Street sewer and water improvement and the Main Street improvement. Mr. MacGillivray presented to the Council an outline of how the amount of the bond was determined as well as a schedule of how the bond could be repaid and a schedule of projected assessment income. The Council discussed with Mr. MacGillivray the situation regarding Rice Lake Estates and why the lots have not been developed. It was explained that a fifteen (15) item development agreement with the developer Arvid Gearman has been prepared and Mr. Gearman will have thirty days to fulfill the agreement or the City will pull his letter of credit and foreclose on the lots. Mr. MacGillivray referred to Page Two of his handout regarding the bond payment schedule. He suggested the principal payments in the first two years could be reduced to eliminate the need for a general levy. He explained the amount of the reduction could be spread over later years. This procedure would not affect the bond rating for this City or affect the sale of future bonds. Mayor Benson suggested that the Council approve the bond sale provided that the PUD for Mr. Gearman is completed within 30 days and the bond be a permanent not a temporary PAGE 1 I 96 issue and change the principal payment for the first two years to $50,000.00. Mr. Bisel moved to approve Resolution No. 62 - 88 authorizing the sale of a $1,480,000.00 bond, changing the repayment schedule for the principal amount in 1988 and 1989 to $50,000.00. Mr. Bohjanen seconded the motion. Motion carried unanimously. Mr. Reinert moved to allow Mr. Gearman until October 1, 1988 to complete the requirement of the PUD to include that all assessments be brought current, if not completed, start the proceedings to foreclose on the property and pull the letter of credit (i.e. initiate the developers agreement) and notify Mr. Gearman by certified letter. Mr. Bisel seconded the motion. Motion carried unanimously. Mr. Bisel asked how the situation with Rice Lake Estates could be avoided in the future. Mr. Schumacher explained that the current developers agreement requires the capitalized interest up front and also suggested that a developer's track record be examined. Mr. Reinert suggested contacting other communities to find out how they handle these situations. Mr. MacGillivray suggested that the Council could require a larger letter of credit that could be easier to draw upon. Resolution No. 62 - 88 is printed at the end of these minutes. CONSIDERATION OF RESOLUTION NO. 63 - 88 PROVIDING FOR THE SALE OF GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS IN THE AMOUNT OF $610,000.00 - DAVID MACGILLIVRAY The purpose of this temporary bond is to finance the improvement in Reshanau Lake Estates South, second addition and D. Erickson's 2nd Addition, Phase II. The first additions of each subdivision are nearly completely sold and therefore the temporary issue was recommended by Mr. MacGillivray. Mr. Reinert asked what kind of relationship these two developers have with this City? Mr. Schumacher explained that they have been prompt and cooperative and since they are completing their developments in phases it is easier to handle. Mr. Reinert moved to approve Resolution No. 63 - 88 approving the sale of the $610,000.00 temporary improvement bond. Mr. Bohjanen seconded the motion. Motion carried unanimously. PAGE 2 1 1 1 Resolution No. 63 - 88 is printed at the end of these minutes. CONSIDERATION AND REVIEW OF FEASIBILITY REPORT FOR MSA ROAD IMPROVEMENT - RON STAHLBERG Mr. Stahlberg explained that since he has determined that the current route of 2nd Avenue would be very difficult and expensive to improve he has platted a new route for the southern portion of this street. Mr. Miller has met with the landowners where the proposed new route is suggested. Mr. Miller told the Council that he did met with some of the landowners and explained the need to find a different route for 2nd Avenue, the options available and the public hearing scheduled for September 26, 1988. The property owners expressed unhappiness with the proposal because they felt it would reduce their property values and wanted their elbow room and peace and quiet. They also suggested they would present petitions against this proposal. Mayor Benson asked how close the route would come to the homes. Mr. Stahlberg said about 140 feet. Mr. Reinert said he was told a number of residents were not at the meeting because they were away. Mr. Miller explained that they had reached all landowners as possible by telephone. Mr. Stahlberg outlined the feasibility report. He has prepared it to be one project with two elements: 1) improve the street to state aid standards, and 2) coordinate this improvement with the installation of municipal water and sanitary sewer. Mayor Benson asked if property east of the proposed road could be developed. Mr. Stahlberg explained none of it could because this is all wetlands. Mayor Benson asked if the back of each lot could be divided into separate lots. Mr. Stahlberg said no most lots will be about 140 feet deep. Mr. Reinert asked if the new location would mean that some septic systems would have to be relocated. Mr. Stahlberg said he did not know. Mr. Bohjanen asked how far east could the new road be pushed. Mr. Stahlberg explained if it was moved any distance the DNR permits would be questionable. Mr. Reinert said he felt the proposal could be made more palitable by moving the road to the east as far as possible. He also suggested that the developers should pay for some of these changes. He said people who were here first are being 197 penalized and the people who are getting the services should expect to pay more because they gain the greatest benefit. Mr. Volk told the Council that the centerline of the proposed location is totally in the unmaintained area of the lots. Mr. Bisel noted that construction of the street would remove a lot of trees and brush and effectively destroy the natural screening from Lake Drive. There was further discussion regarding offering incentives to the property owners and Mr. Reinert noted that this improvement would mean a greater benefit to the City and would mean a return in dollars several times over. Mr. Bisel said it would reduce taxes for the entire City and felt that maybe the City owed these landowners more consideration. Mayor Benson said this appeared to be the only route available. There was discussion regarding calling an improvement hearing for 2nd Avenue MSA improvement and extending trunk water and sewer utility lines and the boundary lines of the improvement area. It was determined to include the entire area starting at Lake Drive and 2nd Avenue north to the Minnesota Correctional Facility. Mayor Benson asked that Mr. Stahlberg talk to MnDot and have some material from them for the public hearing. He also asked that Mr. Stahlberg look at the possibility of moving the street forty or fifty feet to the east. He noted that since this is a long term project with a major impact on the City, curb, gutter and storm sewer should be constructed through the entire length of 2nd Avenue. It was noted because of the charter provisions regarding assessments, a petition could kill the entire improvement project. It was decided to advise every landowner of a potentional assessment and then make provisions for them to petition out of the project. Mr. Bisel moved to approve Resolution No. 64 - 88 accepting the feasibility report and calling an improvement hearing for the MSA 2nd Avenue Improvement and Resolution No. 65 - 88 accepting the feasibility report and calling for a public hearing on the trunk sanitary sewer and trunk municipal water improvement in a portion of the Tax Increment Financing District abutting 2nd Avenue. Mr. Reinert seconded the motion. Motion carried unanimously. Resolution No. 64 - 88 and No. 65 - 88 can be found at the end of these minutes. 1 1 199 CONSIDERATION OF CONSENSUS FOR GATEWAY FOODS PROPOSAL - JOHN MILLER Mr. Miller explained that he has asked Mr. MacGillivray to explain to the Council some of the financial ramifications that would result if Gateway Foods decided to locate in Lino Lakes. Mr. MacGillivray presented a brief written outline of what he felt would occur if Gateway Foods built their facility in Lino Lakes during 1989. He explained that the state legislature has restructured the Minnesota property tax system making projections difficult. He did feel Lino Lakes should benefit by this restructure. Mr. MacGillivray explained how fiscal disparities affect his projections and also explained the Tax Increment Finance (TIF) plan. Mr. MacGillivray's written outline included two possible bond issue calculations. The affect on the City mill rate was also shown. Mr. Miller explained that he has visited with Gateway Foods since his tour of their Duluth facilities and one of the company officials has requested information on residential property in Lino Lakes. This official has also driven the freeways checking on travel time. Mr. Miller explained that it is also rumored that Gateway Foods is in the process of acquiring Red Owl. There was discussion regarding three possible sites for Gateway Foods: 1) property on the west side of Lake Drive and south of 35W; 2) property on the east side of Lake Drive and south of Glenn Rehbein's home, and 3) property on the southease quadrant of 35E and Main Street. The Council discussed the possible benefits of locating Gateway along Lake Drive which included some of the sewer and water utility being paid by the TIF bonds thereby reducing the costs to the homeowners. The costs of the three locations were discussed. It was noted that the property west of Lake Drive would be the most expensive and the hardest to obtain. Mayor Benson suggested maybe obtaining property on both sides of Lake Drive. Mr. Schumacher noted that if the 35E and Main Street site were chosen, the availability of sewer and water would be an issue. The offer to Gateway Foods was discussed. Mr. Miller suggested offering the land they need to them for $1.00 and then offer to negotiate the cost of utility installation. PAGE 5 2011 Mr. Bisel asked Mr. MacGillivray if he were a member of this Council what would he consider the largest negative question to be? Mr. MacGillivray responded, how much money do they need if any, will Gateway pay their taxes and will the City have to general levy to pay the bonds? He felt Gateway should not be given anything until the City was assured that the building will be constructed and they will pay their taxes. Mr. MacGillivray said he would feel more comfortable if the City did not bond for the entire amount possible. He also felt that by giving Gateway only the land that is needed the City controls the balance of the land and can then sell that land for the going rate. Mr. Miller said he would prepare an offer to Gateway Foods that would include the land they need for $1.00 plus an offer to negotiate the sewer and water installation and possibly some other smaller items. Mr. Miller explained he has been contacted by Mr. Ed Vaughan owner of the game farm on Birch Street. Currently Mr. Vaughan has about 3,000 birds on his property and he has asked if he can shoot them at $6.25 per bird. He expects this could be done during the upcoming goose season. Mayor Benson explained that since the Council has denied his Conditional Use Permit request they could not approve of this special hunt. However, if the birds were shot during the goose hunting season and the Council is unaware of this, nothing could be done. Mr. Miller also explained that Mr. Vaughan is working with Mr. Uhde to develop a portion of his land for homesites. Mr. Miller told the Council that Harstad Home Builders has purchased the Soukup property on Ware Road and they are looking for more property. Mr. Bisel moved to adjourn at 10:45 A.M. Mr. Reinert seconded the motion. Aye. These minutes were considered and approved at a regular council meeting on September 22, 1988. MA'I N '.. ANDERSON Clerk- Treasurer PAGE 6 B N4 IN G. BE SON Mayor - Extract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof a special meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Thursday, August 25, 1988, commencing at 8:00 A.M. The following members of the Council were present: Bisel, Bohjanen, Reinert, Neals and Benson and the following were absent: None * * * The following written resolution was presented by Councilmember Bisel who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 62 -88 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,480,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988A BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (City) as follows: 1. It is hereby determined that: PAGE 7 zcT 202 (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of the City's home rule charter (Act) : Project Designation & Description: Total Project Cost Permanent financing for 1985 Bonds $ 1,298,602 Construction: Ash Street (Less prepayments) 94,316 Main Street (less prepayments) 46,859 Costs of Issuance 18,023 Subtotal $ 1,457,800 Discount 22,200 TOTAL $ 1,480,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,480,000 General Obligation Improvement Bonds, Series 1988A (Bonds) pursuant to the Act to provide financing for the Improvements. 2. In order to provide financing for the Improvements, the City will therefore issue and sell Bonds in the amount of $1,457,800. In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $22,200. The excess of the purchase price of the Bonds over the sum of $1,457,800 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Offering: PAGE 8 1 OFFICIAL TERMS OF OFFERING $1,480,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES I 988A 203 Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, September 26, 1988 at 12:00 Noon, Central Time, at the offices of SPRINGSTED incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 -2143. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated October I, 1988, as the date•of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1989. Interest will be computed upon the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof as requested by the Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. Bonds will mature February 1 in the amounts and years as follows: $ 50,000 $ 50,000 $125,000 1990 1991 1992 $150,000 1993 $150,000 1994 $150,000 1995 OPTIONAL REDEMPTION $200,000 1996 $245,000 1997 $360,000 1998 The City may elect on February 1, 1995, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1996. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is.in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. 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 special assessments levied against benefited properties. The proceeds will be used to refinance the City's $1,850,000 General Obligation Temporary Improvement Bonds, Series 1985, dated November 1, 1985, and to finance the construction of various improvement projects within the City. TYPE OF BID ealed bid for not less than $1,457,800 and accrued interest on the total principal amount of the ds shall be filed with the undersigned prior to the time set for the opening f bids. Also prior to time set for bid opening, a certified or cashier's check in the amount of $ 14,800, payable to the over of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of PAGE 9 204 the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unle- the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued another date without award of the Bonds having been made. Rates offered by Bidders shall be integral multiples of 5/100 or 1/8 of 1 %. No rate for any maturity shall be more than I% lower th any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No bid may be conditioned upon award of any other offering of obligations by the City. AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. 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. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, b neither the failure to print such numbers on any Bond nor any error with respect thereto wi constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. The CUSI 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 City and the Purchaser. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Lefevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association of Minneapolis, Minnesota, which opinion will be printed on the Bonds, 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 City, or its designee, not later than 1:00 P.M., Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any Toss suffered by the City by reason of the Purchaser's non - compliance with said terms for payment. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 25 copies of the Official Statement. Dated August 25, 1988 PAGE 10 BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderso Clerk- Treasure 1 1 3. The Clerk- Treasurer is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Offering and to cause the abbreviated notice of sale attached hereto as Exhibit A to be published in the manner required by law. The City Council will meet at 7:00 p.m. on Monday, September 26, 1988, to consider bids 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 Councilmember Bohjanen, and upon vote being taken thereon the following members voted in favor of the motion: Bisel, Bohjanen, Reinert, Neal and Benson and the following voted against: None whereupon the resolution was declared duly passed and adopted. PAGE 11 r5 206 EXHIBIT A NOTICE OF BOND SALE $1,480,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988A CITY OF LINO LAKES, ANOKA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 12:00 Noon, C.T. on Monday, September 26, 1988, in the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101 -2143, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7:00 p.m. on the same day. The bonds are offered on the following terms. The bonds will be dated October 1, 1988, will bear interest payable semiannually on each February 1 and August 1, commencing August 1, 1989, and will mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1990 $ 50,000 1995 $150,000 1991 50,000 1996 200,000 1992 125,000 1997 245,000 1993 150,000 1998 360,000 1994 150,000 The City may elect on February 1, 1995 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse order of maturities and by lot within maturities, maturing on or after February 1, 1996 at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $1,457,800 plus accrued interest. A legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis, Minnesota. The proceeds of the bonds will be used to permanently finance the City's $1,850,000 General Obligation Temporary Improvement Bonds, Series 1985, dated November 1, 1988, and to finance a portion of the costs of various assessable public improvements in the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. PAGE 12 1 1 Further information may be obtained from the Issuer's Financial Advisor, Springsted Incorporated, 85 East Seventh Place, St. Paul Minnesota 55101, 612/223 -3000. Dated: August 25, 1988 PAGE 13 BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson City Clerk- Treasurer 207 208 STATE OF MINNESOTA ) ) COUNTY OF ANOKA ) CITY OF LINO LAKES ) I, the undersigned, being the duly qualified and acting Clerk - Treasurer of the City of Lino Lakes, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a special meeting of the City Council of the City held on Thursday, August 25, 1988, 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 $1,480,000 General Obligation Improvement Bonds, Series 1988A of the City. WITNESS My hand as City Clerk- Treasurer and the corporate seal of the City this (SEAL) PAGE 14 L5:05270888.RAU day of September , 1988. City le k- Treasurer City of Lino Lakes, Minnesota 1 Extract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof a special meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Thursday, August 25, 1988, commencing at 8:00 P.M. The following members of the Council were present: Bisel, Bohjanen, Reinert, Neal and Benson and the following were absent: None * * * The following written resolution was presented by Councilmember Reinert who moved its adoption the reading of which had been dispensed with by unanimous consent: RESOLUTION NO. 63 -88 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $610,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1988B BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (City) as follows: PAGE 15 1. It is hereby determined that: 209 210 (a) the following assessable public improvements (the Improvements) have been made, duly ordered or contracts let for the construction thereof, by the City pursuant to the provisions of the City's home rule charter (Act): Project Designation & Description: Erickson's 2nd Addition Phase I and Reshanau Lakes Estates South Phase I Total Project Cost Construction $ 360,803 Future Paving 72,600 Capitalized Interest 50,833 Engineering and Administrative 108,241 Costs of Issuance 14,000 Subtotal $ 606,477 Discount 4,575 Estimated Investment Earnings (1,052) TOTAL $ 610,000 (b) it is necessary and expedient to the sound financial management of the affairs of the City to issue $610,000 General Obligation Temporary Improvement Bonds, Series 1988B (Bonds) pursuant to the Act to provide financing for the Improvements. 2. In order to provide temporary financing for the Improvements, the City will therefore issue and sell Bonds in the amount of $605,425. In order to provide in part the additional interest required to market the Bonds at this time, additional Bonds will be issued in the amount of $4,575. The excess of the purchase price of the Bonds over the sum of $605,425 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold and delivered in accordance with the terms of the following Official Terms of Offering: PAGE 16 1 OFFICIAL TERMS OF OFFERING $610,000 CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 19888 Ta 211 Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, September 26, 1988, at 12:00 Noon, Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 -2143. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated October I, 1988, as the date of original issue, and will bear interest payable on April 1 and October 1 of each year, commencing April 1, I989. Interest will be computed upon the basis of a 360 -day year of twelve 30 -day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof as requested by the Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature October 1, 1991. OPTIONAL REDEMPTION T ity may elect on October 1, 1990, and April I, 1991, to prepay Bonds due on October 1, 1991. R mption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. 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 special assessments levied against benefited properties. The proceeds will be used to finance various improvements within the City. TYPE OF BID A sealed bid for not less than $605,425 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $6,100, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless ttneeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to er date without award of the Bonds having been made. No bid may be conditioned upon award y other offering of obligations by the City. PAGE 17 212 AWARD The Bonds will be awarded to the Bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the tota dollar interest on the Bonds from their date to their final scheduled maturity. The City' computation of the total net dollar interest cost of each bid, in accordance with customary practice will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and, (iii) reject any bid which the City determines to have failed to comply with the terms herein. 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. 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 th Purchaser at a place mutually satisfactory to the City and the Purchaser. Delivery will be subject t receipt by the Purchaser of an approving legal opinion of Lefevere, Lefler, Kennedy, O'Brien Drawz, a Professional Association of Minneapolis, Minnesota, which opinion will be printed on th Bonds, 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 City, or its designee, not later than 1:00 P.M., Central Time. Except as compliance with the terms of payment for the Bonds shall have 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. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 25 copies of the Official Statement. Dated August 25, 1988 BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson Clerk- Treasurer PAGE 18 1 1 3. The Clerk- Treasurer is authorized and directed to advertise the Bonds for sale in accordance with the foregoing Official Terms of Offering and to cause the abbreviated notice of sale attached hereto as Exhibit A to be published in the manner required by law. The City Council will meet at 7:00 p.m. on Monday, September 26, 1988, to consider bids 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 Councilmember Bohjanen, and upon vote being taken thereon the following members voted in favor of the motion: Bisel, Bohjanen, Reinert, Neal, Benson and the following voted against: None whereupon the resolution was declared duly passed and adopted. PAGE 19 21.3 214 NOTICE OF BOND SALE $610,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1988B CITY OF LINO LAKES, ANOKA COUNTY, MINNESOTA EXHIBIT A NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 12:00 Noon, C.T. on Monday, September 26, 1988, in the offices of Springsted. Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101 -2143, at which time the bids will be opened and tabulated for consideration by the City Council at a meeting at 7:00 p.m. on the same day. The bonds are offered on the following terms. The bonds will be dated October 1, 1988, will bear interest payable semiannually on each April 1 and October 1, commencing April 1, 1989, and will mature on October 1, 1991. The City may elect on October 1, 1990 or on any interest payment date thereafter to redeem and prepay bonds of this issue in whole or in part by lot at a price of par plus accrued interest to date of redemption. Bidders must specify a price of not less than $605,425 plus accrued interest. A legal opinion on the bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien &. Drawz, a Professional •Association, Minneapolis, Minnesota. The proceeds of the bonds will be used to finance a portion of the costs of various assessable public im- provements in the City. Bidders should be aware that the Official Statement to be distributed for the bonds may contain additional bidding terms and information relative to the bonds. In the event of a variance between statements in this Notice of Bond Sale and the Official Statement bidders must comply with the terms of the latter. Further information may be obtained from the Issuer's Financial Advisor, Springsted Incorporated, 85 East Seventh Place, St. Paul, Minnesota 55101, 612/223 -3000. Dated: August 25, 1988. BY ORDER OF THE CITY COUNCIL /s/ Marilyn G. Anderson City Clerk- Treasurer PAGE 20 1 1 1 STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES I, the undersigned, being the duly qualified and acting Clerk- Treasurer of the City of Lino Lakes, Minnesota, hereby certify that I have carefully compared the attached and foregoing extract of minutes of a special meeting of the City Council of the City held on Thursday, August 25, 1988, 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 $610,000 General Obligation Temporary Improvement Bonds, Series 1988B of the City. WITNESS My hand as City Clerk- Treasurer and the corporate seal of the City this day of September, 1988. (SEAL) PAGE 21 L5:05272D88.RAU 171( . t L/t1 City Cle k- Treasurer City of Lino Lakes, Minnesota 215 216 CITY OF LINO LAKES Resolution No. 64 - 88 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON THE IMPROVEMENT OF 2ND AVENUE WHEREAS, pursurant to resolution of the Council adopted August 10, 1987, a report has been prepared by Toltz, King, Duvall, Anderson and Associates with reference to the improvement of 2nd Avenue between Lake Drive on the south and Elm Street on the north, and this report was received by the Council on August 25, 1988. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. The Council will consider the improvement of such street in accordance with the report and the assessment of benefiting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 and Chapter 8 of the Lino Lakes Charter at an estimated total cost of the improvement of $ 916,440.00. 2. A public hearing shall be held on such proposed improvement on the twenty sixth day of September, 1988 in the council chambers of the city hall at 8:45 P.M. and the Clerk shall give mailed and published notice of such hearing and improvement as required by law. Adopted by the Council this twenty fifth day of August, 1988. Marilyn 'G. Anderson, Clerk- Treasurer PAGE 22 Benjam "n G. Benson, Mayor 1 CITY OF LINO LAKES Resolution No. 65 - 88 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON THE INSTALLATION OF SANITARY SEWER AND MUNICIPAL WATER IN A PORTION OF THE TAX INCREMENT FINANCING DISTRICT AND ABUTTING 2ND AVENUE WHEREAS, pursuant to resolution of the Council adopted August 10, 1987 a report has been prepared by Toltz, King, Duvall, Anderson and Associates with reference to the installation of sanitary sewer and municipal water beginning at 2nd Avenue at Lake Drive and ending at the Minnesota Correctional Facility, and this report was received by the Council August 25, 1988. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LINO LAKES, MINNESOTA: 1. 2. The Council will consider the installation of such services in accordance with the report and the assessment of benefiting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 and Chapter 8 of the Lino Lakes City Charter at an estimated total cost of the improvement of $ 2,374,080.00. A public hearing shall be held on such proposed improvement on the twenty sixth day of September, 1988 in the council chambers of the city hall at 8:45 P.M. and the Clerk shall give mailed and published notice of such hearing and improvement as required by law. cj Marilyn G. Anderson,Clerk- Treasurer PAGE 23 G. Benson, Mayor 217