Agenda - Economic Development Authority - 10/28/1999

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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, 2009, and on.any'day thereafter, to Prepay Bonds-d~ie- on or after February 1, 2010. Redemption may, be in whole or in part and if inpart at the optiol0-;, 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 r 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 plusaccrued interest. : ' '- · -...~,' .- SECURITY AND PURPOSE The Bonds will be special obligations of the Authority payable solely from revenues received pursuant to a lease agreement with the City of Ramsey and other revenues available for debt service pursuant to the Indenture 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 construction of a fire station. TYPE OF PROPOSALS Proposals shall be for not less than $1,640,025 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 $16,650, payable to the order of the Authority. If a check is used, it must accompany the proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the 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 Page 8