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HomeMy WebLinkAboutRES 86-034 RESOLUTION AUTHORIZING ISSUANCE OF AND SALE OF $1,210,000 LIQUOR STORE REVENUE BONDS, SERIES 1986 Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 102366 Box: 23 Folder: RES 1986 Document: RES 86-034 RESOLUTION AUTHORIZING ISSUANCE OF AND SALE OF $1,210,000 LIQUOR STORE REVENUE BONDS, SERIES 1986 • CERTIFICATION OF MINUTES RELATING TO - - $1 ,210 ,000 LIQUOR STORE REVENUE BONDS, SERIES 1980 = - . Issuer: C ity of St. Anthony, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on Tuesday, October 14, 1986, at 7:30 o 'clock P .M. , at the City Hall. Members present: Mayor Pro Tem Ranallo, Councilmembers Enrooth, Makowske, and Marks Members absent: Mayor Sundland Documents Attached: Minutes of said meeting (pages ) : RESOLUTION NO. 86-034 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1 ,210 ,000 LIQUOR STORE REVENUE BONDS, SERIES 1986 • I , the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said - corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the- governing body at the time and place and was attended throughout by the members indicated above, pursuant to call ' and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this //,,P-"day of October, 1986 . Signature Carol Lou Johnson, City Clerk • Councilmember Ranallo introduced the following resolution and moved its adoption: RESOLUTION NO. 86-034 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1 ,210,000 LIQUOR STORE REVENUE BONDS, SERIES 1986 BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota, as follows: 1 . Bond Authorization. For the purpose of financing the construction, remodeling and equipping of liquor store facilities, this Council determines that it is necessary to sell and issue liquor store revenue bonds of the City in the amount of $1 ,210,000 . 2 . Sale Terms. Springsted Incorporated, bond consultants to the City, has presented to this Council a form of Official Terms of Offering of the sale of the bonds, and a form of Notice of Sale for publication, which forms are attached hereto and shall be placed on file in the office of the City Clerk. Each and all of the provisions of the Official • Terms of Offering are hereby adopted as the terms and conditions of said bonds and of the sale thereof, and shall be made available to all prospective purchasers of the bonds. The City Clerk is authorized and directed to cause the Notice of Sale to be published once in the official newspaper of the City, and once in the Commercial West, a financial periodical published in Minneapolis, at least ten days before the date of sale. 3 . Sale Meeting. This Council shall meet on Monday, November 10 , 1986 ,' at 7 :00 P .M. , to consider the bids received for the purchase of the bonds , and to take such actions thereon as is deemed in the best interests f the City. Mayor Attest: 04-4� W6. City Cle l' �;�- I n., 'Reve�red for administration: I • i- City Manager • The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Fnrnnth , and upon vote being taken thereon, the following voted in favor thereof: Ranallo, Enrooth, Makowske, Marks and the following voted against the same: none whereupon said resolution was declared passed and adopted. • • r OFFICIAL TERMS OF OFFERING • $1,210,000 CITY OF ST. ANTHONY, MINNESOTA LIQUOR STORE REVENUE BONDS, SERIES 1986 Sealed bids for the Bonds will be opened by the City Manager or his designee on Monday, November 10, 1986, at 12:00 Noon, Central Time, at the office of SPRINGSTED Incorporated, 85 East Seventh Place, Saint Paul, Minnesota. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the some day. - DETAILS OF THE BONDS The Bonds will be dated December I, 1986, as the date of original issue, and will bear interest payable on January I and July I of each year, commencing July I, 1987. 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 January I in the amounts and years as follows: • 45,000 1989-1990 $65,000 1994 $ 90,000 1998 $115,000 2001 $50,000 1991 $70,000 1995 $ 95,000 1999 $125,000 2002` $55,000 1992 $75,000 1996 $105,000 2000 $135,000 2003 $60,000 1993 $80,000 1997 The City may elect on January I, 1997, and on any interest payment date thereafter, to prepay Bonds due on or after January I, 1998. 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 special Bonds of the City payable solely from net operating profits of the City municipal liquor stores. The proceeds will be used to finance construction, remodeling and equipping of liquor store facilities. TYPE OF BID A sealed bid for not less than $1,187,010 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the openingof bids. Also prior to the time set for bid opening, a certified or'cashier's check in the amount of 12, 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 the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in Sintegral multiples of 5/100 or 1/8 of 1%. No rate for any maturity shall be more than 1% lower than any prior rate. Bonds of the some maturity-shall bear a single rate from the date of the Bonds to the date of maturity: 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, 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 City and the Purchaser. Delivery will be subject to receipt by the Purchaser of an approving legal opinion of Dorsey & Whitney of Minneapolis and Saint Paul, 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 loss suffered by the City by reason of the Purchaser's non-compliance with said terms for payment. At settlement the Purchaser will be furnished with a certificate, signed by appropriate officers of the City, to the effect that the Official Statement did not as of the date of the Official Statement, and does not as of the date of settlement, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 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 October 14, 1986 BY ORDER OF THE CITY COUNCIL •/s/ Carol Lou Johnson City Clerk NOTICE OF SALE CITY OF ST. ANTHONY, MINNESOTA $1 ,210,000 LIQUOR STORE REVENUE BONDS, SERIES 1986 Sealed bids for the purchase of these Bonds will be received by the City Manager or his designee until 12:00 Noon, Central Time, on Monday, November 10, 1986, at the offices of Springsted Incorporated, 85 East Seventh Place, St. Paul, Minnesota. The Bonds will be dated December 1, 1986, will bear interest payable semiannually commencing on July 1, 1987, and will mature on January 1 , in the ' following years and amounts: Year Amount Year Amount 1989-1990 $45,000 1997 $ 80,000 1991 50,000 1998 90 ,000 1992 55,000 1999 95,000 1993 60,000 2000 105,000 1994 65 ,000 2001 115,000 1995 70 ,000 2002 125,000 1996 75 ,000 2003 135,000 Bidders must specify a price of not less than $1 ,187,010 plus accrued interest, and interest rates for each maturity and a net average interest rate for the issue not exceeding the maximum permitted by law. A legal opinion will be furnished by Dorsey & Whitney, of Minneapolis and St. Paul, Minnesota. The proceeds will be used to construct, remodel and equip liquor store facilities. Dated: October 14 , 1986. BY ORDER OF THE CITY COUNCIL Carol Lou Johnson, City Clerk Further information may be obtained from the Issuer's Financial Advisor , SPRINGSTED INCORPORATED, 85 East Seventh Place, Suite 100, St. Paul, Minnesota, 55101 , 612/223-3000. • n DORSEY & WHITNEY • A Peers—Se xa I —e Pmsae.­"Coaso— H . 510 NORTH CENTRAL LIFE TOWER Y• - 445 MINNESOTA STREET ST. PAUL, MINNESOTA 55101 (612)227-8017 `J $1, 21.0, 000 Liquor Store Revenue Bonds Series 1986 City of St. Anthony Hennepin. and Ramsey Counties, Minnesota We have acted as Bond Counsel in connection with the issuance by the City of St. Anthony, Hennepin and Ramsey . ' Counties, Minnesota, of its Liquor Store Revenue Bonds, Series, . r... 1986, dated as of December 1, 1986, in the total principal amount of $1, 210,000 . For thepurpose of giving this opinion .we have examined certified copies of certain proceedings ;taken by the City in the authorization, sale and issuance of the .Bonds, including the form of the Bonds, and certain other .' .proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the.- genuineness of the signatures thereon and the accuracy of the facts stated therein, and based • upon laws, regulations, rulings and decisions in effect on the date hereof, it is- our opinion that : 1. The Bonds are in due form, have been duly executed and delivered, and are valid and binding special obligations of the.-City enforceable in accordance with their terms except to the extent limited by Minnesota or United States laws- relating to bankruptcy, reorganization, moratorium or creditors ' rights. 2. The principal of and interest on the Bonds are payable solely from Net Revenues to be derived by the City from the operation of its municipal liquor store, which have been pledged and appropriated to the Revenue Bond Account in its Liquor Store Fund; and such pledge and. appropriation constitutes a first and prior lien on such Net Revenues . 3 . . The Bonds are issued under and pursuant to an Authorizing Resolution adopted by the City Council on November 10, 1986, which defines such Net Revenues and contains all covenants and provisions made by the City with respect to its municipal liquor store for the payment and security of the Bonds . 4 . The interest to be paid on the Bonds is not includible in gross income of the recipient for United States or Minnesota income tax purposes, but is subject to Minnesota bank. and corporate excise taxes measured by income. DORSEY Se WHITNEY • $1, 210, 000 Liquor Store City of St. Anthony, Hennepin Revenue Bonds, Series 1986 and Ramsey Counties, Minnesota 2 We have not been asked and have not undertaken to review, the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we express no opinion with respect thereto. Noncompliance following the issuance of the Bonds with certain requirements of the Internal Revenue Code and covenants of the bond resolution may result in the inclusion of interest on the Bonds in the federal and Minnesota gross income .of the owners thereof. Interest on the Bonds is includible. in book income and in earnings and profits for purposes of determining , the "alternative minimum taxable income" of corporations for taxable years beginning after December 31, 1986. - In the case of an insurance company subject to -the tax imposed by Section 831 of the Code, for taxable years beginning after December 31, 1986, . • the amount which otherwise would be taken into account as "losses incurred" under Section 8'32 (b) ( 5) shall be reduced by an amount equal. to 15 percent of the interest on the Bonds that• is .received or accrued during the taxable year. Dated this day of December, 1986.