Resolution - #87-133 - 06/09/1987

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OFFICIAL TERMS OF OFFERING $160,000 CITY OF RAMSEY, MINIX~_SOTA TAXABI. I~i GE;'f__RAL OBLIGATION TAX INCRE/~NT BONDS, SERIES 1~17C Sealed bids for the Bond:-, will be opened by the City Administrator on Tuesday, July 7, 1987, at I:00 P.M., Centroi Time, at the offices of SPRINGSTED Incorporated, 8S East Seventh Place, Suite 100, Saint Paul, Mif,~esolo 55101-2143. Consideration for award of the Bonds will be by the City Council at 7:30 P. Mr~, Central Time, of the some day. DETAILS OF THE BONDS The Bonds will be d~ded August I, 1987, as the dote of original issue, and will bear interest payable on February I and August I of each year, commencing February I, 1988. Interest will be computed upon the basis of o 360-d,~y year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds wilt b,.:~ issued in the denomination of $5,000 each, or in integral multiples thereof os requested by the Purchaser, and fully registered os to principal and interest. Principal will be payable at the m,~in corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar moiled to the registered holder thereof at his address as it appears on the books of the R. egi.'drc~r c~s of the i Sth day of the calendar month next preceding the interest payment. The Bonds will m¢~tu~e February I in the amounts and years as follows: $15,000 [.990~1991 $20,000 I992-1995 $25,000 1996-1997 OPTIONAL REDEMPTION The City may elect or', February I, 1996, and any interest payment dote thereafter to prepay Bonds due on February I, I;~'.?/~ Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in p~r't, the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall h~ ~,f ~ price of par and accrued interest. SECURITY AND PURPOSE The Bonds will be general oh]!fi.qtions 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 tax increment income flener~ted within the City's Development District #2. The proceeds will be used to finance non-public costs associated with o project within Development District tt2. TAXABILITY OF INTEREST The Bonds are '~'riw¢( Activity Bonds" under the definitions of the Tax Reform Act of 1986. Interest on the Bonds i.'; includible in gross income of the recipient for United States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and bank excise taxes measured by net income. TYPE OF BID A sealed bid for not le:~s than $156,900 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 51,600, payable to the of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's inancial Advisor. ['Jo 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 oc(:epted bid. The City will deposit the check of the Purchaser, the amount of which