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Agenda - Economic Development Authority - 10/28/1999
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Agenda - Economic Development Authority - 10/28/1999
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Meetings
Meeting Document Type
Agenda
Meeting Type
Economic Development Authority
Document Date
10/28/1999
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RECOMMENDATIONS <br /> <br />Re: Recommendations for the Issuance of $1,665,000 Public Facility ,Lease Revenue <br /> Bonds, Series 1999A <br /> <br />We respectfully request your consideration of our recommendations for the above-named <br />issue. Proceeds of this issue will be used to finance construction of a fire station to be leased <br />by the Authority~to the City of Ramsey. <br /> <br />We recommend the following for the Bonds: <br />1. Action Requested <br /> <br />.2. Sale Date and Time <br /> <br />3. Authority and Purpose for the Bond Issue <br /> <br />4. Principal Amount of Offering <br /> <br />To establish the date and time of receiving <br />bids and establish the terms and conditions <br />of the offering. <br /> <br />Tuesday, November 23, 1999, at 11:00 <br />A.M., with consideration for award by the <br />Authority's Board of Commissioners at 6:30 <br />P.M. that same day. <br /> <br />The Bonds are being issued pursuant to <br />Minnesota Statutes, chapters 475 and 469. <br />Bond proceeds will be used to finance a fire <br />station on behalf of the City. <br /> <br />$1,665,000. <br /> <br />5. Repayment Term <br /> <br />6. Term Bonds <br /> <br />Fiist Levy and Levy Cycle <br /> <br />The Bonds will mature annually each <br />February 1, 2001 through 2019. Interest will <br />be payable semi-annually each February 1 <br />and August 1, commencing August 1,2000. <br /> <br />We have included a provision which permits <br />the underwriters to combine multiple maturity <br />years into a term bond, subject to mandatory <br />redemption on the same maturity schedule <br />provide in the Terms of Proposal. The <br />advantage to the underwriter is that it <br />provides large blocks of bonds which are <br />more attractive to bond funds and certain <br />pension funds which deal only with large <br />blocks of bonds. This, in turn, is a benefit to <br />the Authority since selling larger blocks of <br />bonds reduces the risk to the underwriter, <br />allowing them to lower their costs and the <br />interest coupons, sinCe the Bonds are <br />being offered on a competitive bid basis and <br />awarded on the lowest true interest cost, the <br />Authority will award the Bonds to the best <br />bid regardless of whether term bonds are <br />chosen or not. <br /> <br />The Bonds will be repaid with rental <br />payments received from the City of Ramsey <br />pursuant to a Lease with the Authority and <br />other revenues available for debt service <br />pursuant to the Trust Indenture. <br /> <br /> <br />
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