RES051694A - Laserfiche WebLink

Home Browse Search

Optional Redemption of Bonds Prior to Maturity. At the option of the City, Bonds maturing on January 15, 2001 and thereafter will be subject to redemption and payment prior to maturity on January 15, 2000 and thereafter in whole at any time or in part on any interest payment date, in such order of maturity as shall be determined by the City (Bonds of less than a single maturity to be selected in multiples of $5,000 principal amount), at the redemption price of 100% of the principal amount thereof plus accrued interest thereon to the redemption date. Conditions of Bids. Proposals will be received on the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions: The same rate shall apply to all Bonds of the same maturity. Each interest rate specified shall be a multiple of 1/8 or 1/20 of 1%. No interest rate shall exceed 14.0% per annum. The difference between the highest rate specified and the lowest rate specified shall not exceed 3.0%. No supplemental interest payments will be authorized. No bid shall be for less than 100% of the principal amount of the Bonds and accrued interest. Bidders are requested (but not required) to specify the total interest cost (expressed in dollars), the premium, if any, offered by the bidder, and to supply an estimate of the true interest cost (expressed as a percentage) for the Bonds to the City as specified herein on the basis of their respective bids, which shall be considered as informative ordy and not binding on either the bidder or the City. Basis of Award. The Bonds will be awarded to the bidder whose bid will result in the lowest interest cost to the City determined in accordance with the true interest cost method ("TIC ") of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds to equal the price bid, excluding interest accrued to the date of delivery. In the event that two or more bidders offer bids at the same lowest TIC, the City shall determine by lot which bidder shall be awarded the Bonds. Authority, Purpose and Security. The Bonds are being issued pursuant to the Constitution and laws of the State of Missouri and an election duly held in the City for the following purposes: 1. $1,746,000 for the purpose of constructing and improving streets and alleys in the City. $796,000 for the purpose of acquiring, constructing, expanding, repairing, improving and equipping parks in the City. $500,000 for the purpose of acquiring, constructing and improving properties in Delmar Loop East Business District, including parking facilities and building rehabilitation, for the purpose of promoting economic development. $500,000 for the purpose of completing the restoration and improvemere of public properties in the Civic Plaza Historic District. $933,000 for the purpose of enclosing, renovating, repairing, improving and equipping the Heman Park recreation facility and installing lighting for sports fields at Heman Park. The Bonds and the interest thereon will constitute general obligations of the City, payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. Legal Opinion. The Bonds will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., St. Louis, Missouri, Bond Counsel, which opinion will be furnished and paid for by the City and printed on the Bonds and delivered to the successful bidder when the Bonds are delivered. Said opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds from gross income for federal and Missouri income tax purposes. The Bonds will be designated as "qualified tax-exempt obligations" within the meaning of Section 265Co)(3) of the Internal Revenue Code of 1986, as amended. Reference is -2-