6486 - Laserfiche WebLink

Home Browse Search

Post-Bid Revisions. After bids are received on the sale date, in order to properly size the issue, the City may revise the total principal amount and individual maturities of the Certificates; provided, that the total principal amount of the Certificates shall not be increased or decreased by an amount in excess of ! 0%. In the event of a change in the issue size, the net production as a percentage of the par amount of the Certificates generated from the bid of the successful bidder will not be decreased as a result of the change. THE SUCCESSFUL BIDDER MAY NEITHER WITHDRAW NOR MODIFY ITS PROPOSAL AS A RESULT OF ANY POST-BID REVISIONS TO THE CERTIFICATES MADE BY THE CITY. Parity Obligations. The Certificates will be secured on a parity basis with each other and with $6,345,000 original principal amount Certificates of Participation (City of University City, Missouri, Lessee), Series 2003 (the "Series 2003 Certificates"), except that (i) the Series 2003 Certificates are secured by a separate account within the reserve fund, (ii) the financial guaranty insurance policy issued by the Ambac Assurance Corporation (the "Certificate Insurer") with respect to the Series 2003 Certificates insures only the Series 2003 Certificates, and (iii) the financial guaranty insurance policy issued by the Certificate Insurer with respect to the Certificates insures only the Certificates. Authority, Purpose and Security. The Certificates are being issued pursuant to the Constitution and laws of the State of Missouri for the purpose of providing funds to pay the costs of (a) renovating, improving, furnishing and equipping the City's police station, fire stations and City Hall and providing additional funds to complete the construction, renovation and improvement of recreational facilities in the City's Heman Park (the "Project"); (b) funding a debt service reserve account for the Certificates; and (c) paying the costs of delivering the Certificates. Those tracts of land upon which the following are situated, together with all other improvements now or to be situated thereon, constitute the Leased Property: (x) the swimming pool, fitness center and certain other recreational facilities in Heman Park; (y) the City's parking garage; and (z) the City's police station and fire stations. The Certificates and the outstanding Series 2003 Certificates represent undivided, proportionate interests in Base Rentals to be paid by the City pursuant to the Lease. The Trustee has agreed to execute and deliver the Certificates pursuant to a Trust Indenture dated as of November 1, 2003 (the "Original Indenture"), as amended and supplemented by a First Supplemental Trust Indenture dated as of July 1, 2004 (the "First Supplemental Indenture" and together with the Original Indenture, the "Indenture"). The Base Rentals constitute rent for the Leased Property pursuant to the Lease. NEITHER THE CERTIFICATES, THE LEASE NOR ANY PAYMENTS REQUIRED UNDER THE LEASE WILL CONSTITUTE A MANDATORY PAYMENT OBLIGATION OF THE CITY IN ANY YEAR BEYOND THE YEAR DURING WHICH THE CITY IS A LESSEE UNDER THE LEASE, OR CONSTITUTE OR GIVE RISE TO A GENERAL OBLIGATION OR OTHER INDEBTEDNESS OF THE CITY. THE CITY IS NOT LEGALLY OBLIGATED TO BUDGET OR APPROPRIATE MONEY FOR ANY FISCAL YEAR BEYOND THE CURRENT FISCAL YEAR OR ANY SUBSEQUENT FISCAL YEAR IN WHICH THE LEASE IS IN EFFECT, AND THERE CAN BE NO ASSURANCE THAT THE CITY WILL APPROPRIATE FUNDS TO MAKE BASE RENTALS OR RENEW THE LEASE AFTER ANY RENEWAL TERM. THE CITY MAY TERMINATE ITS OBLIGATIONS UNDER THE LEASE ON AN ANNUAL BASIS. Legal Opinion. The Certificates will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., St. Louis, Missouri, Special Tax Counsel, which opinion will be furnished and paid for by the City and delivered to the successful bidder when the Certificates are delivered. Said opinion will also include the opinion of Special Tax Counsel relating to the exclusion from gross income -4-