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Tab 02 Affidavit of Publication of Notice of Sale of BondsSTATE OF MONTANA FLATHEAD COUNTY AFFIDAVIT OF PUBLICATION CHRIS SCHIULDHEISS BEING DULY SWORN, DEPOSES AND SAYS: THAT SHE IS THE LEGAL CLERK OF THE DAILY INTER LADE A DAILY NEWSPAPER OF GENERAL CIRCULATION.' PRINTED AND PUBLISHED IN THE CITY OF KALI SPELL, IN THE COUNTY OF FLATHEAD, STATE OF M ONTANA, AND THAT NO, 10634 LEGAL AID VERTI SMENT WAS PRINTED AND PUBLISHED IN THE REGULAR AND ENTIRE ISSUE OF SAID PAPER, AND IN EACH AND EVERY COPY THEREOF ON THE DATES OF MAY 28, J(JNE 49 2006 AND THE RATE CHARGED FOR THE ABOVE PRINTING DOES NOT EXCEED THE MINIMUM GOING RATE CHARGED To ANY OTHER ADVERTISER FOR THE SAME PUBLICATION, SET IN THE SAME SIZE TYPE AND PUBLISHED F R THE SAME NUMBER OF INSERTIONS. ..' s • rs- �-. Subscribed and sworn to :r h y.a • �-' Before me this JUNE 5, 2006 Notary Public for the State of Montana Res]"ding an Kalispell My Commission expires 9/11 /09 No. 10634 purchases of the Bonds may be made in the principal amount of $5,000 or Except for a bid by or on behalf of the, Board, of Investments,of the 51 any rnultiplethereof of a single matuthrough book entries made on the Montana,.a good faith deposit (the "Deposit") in theme of money, c :,,NOTICE OF BAND N books ands records of DTC and its r giants. Principal and interest are, check, certified .check, bank money order, or bank °lawn. and is payable.by the registrar to DTC or r.. ninee as registered owner of the .: a federally chartered or state chartered bank insure, -y the •fed eral c $4,520,000 . ' Bonds. Transfer of principal and interest payments to participants of DTC will insurance ,corporation or. a financial surety bond in the sum of $90,4C CITY OF KALiSPELL, MONTANA be the responsibility of DTC; transfer of principal and interest payments to : ` y a 'able to the order:of the Ci is re aired for a bid o be considered p Y ty q SPECIAL IMPROVEMENT DISTRICT NO. 344 BONDS. beneficial owners by participants will be the responsibility of such participants money, cashier's check, certified check,. bank money order, or bank-r SERIES 2006';, and'other nominees of beneficial owners. The purchaser, as a,condition of used, it must accompany the bid and be delivered to the Finance Dire delivery of the Bonds, will be required to deposit the Bonds with DTC. financial surety bond is used, it must be from an insurance company NOTICE'IS. HEREBY: GIVEN that the City of Kalispell; Montana (the "City"), will sell ':to the highest and best bidder cash,.as evidenced by sealed bids. Redem t and qualified to issue such a•bond in the State of; -Montana and such must be submitted to the Finance Director the City's financial advi: Special'lmprovementDistr€ctNo. 344`Bonds, Series 2006 (the "Bonds") tothe opening of the bids. The financial surety bond must identify eaf drawn against the fund of Special Improvement District No. 344 (the District Mandatoty Redemoticn. If on any interest payment date there will be a whose Deposit is guaranteed by such financial surety bond, if the Bo Fund') in the principal amount estimated not to exceed $4,520,000. balance in the District Fund after payment of the principal and interest due on awarded to a bidder utilizing a financial surety bond, then that PurchE ail Bonds drawn against it, either from the prepayment of special required to submit its Deposit to the City in the form of a cashier's chi Sealed bids for the-purehase of the Bonds Will.be received at the office of the assessments levied in District 344 or from the transfer of surplus money from wire transfer such amount as instructed by the City or its financial .adi Finance Director in •KalispeI( Montana; at City Hall; 312 1 st Avenue East, the Construction Account to the Principal Account; outstanding Bonds, or, later than:1,:00 p:m., Mountain Daylight Time, on the next business dr Kalispell, ell, Montana 59901., or bids.forthe purchase of the Bonds will be portions thereof, in an amount which; Together with the interest thereon to the , followin .the award. If such,.De osit is not received b that time the f .:received b the C b electronic transmission throe h Pan Tr" ' y ty y g ty , mn either interest payment date; will aqua! the amount of such funds on deposit in the ` . surety bond may be drawn by the City to satisfy the Deposit requirerr oase until 11 00 A.M , MT on Tuesday, the-1 ath da of June, 2006. The bids : ,. : , . District Fund on that date,are subject to mandatory redemption on that rY P interest on the'De Deposit will accrue to the Purchaser. The Deposit will P p _ .._:.. , will be opened-(or44cx: sed);and tabulated;and the City Council.;of the City interest paymentdate. motion pride shall equal the amount of the ' . applied>tothe purchase' price of the Bonds. In the -event the PurchasE Will meet at 12;00, P M,;:M.T.,:on the same day in the City Council Chambers to principal amount of the Bonds to be. redeemed plus interest accrued to the honor its accepted bid; the Deposit will be retained b the City as li u P P Y Y q consider the bids"and the award of sale of the Bonds and, if a responsive and P date of redemption. Tax increments and Available Tax Increments, as such p damages. The Deposit of the unsuccessful bidders will be returned acceptable bid is received, award the.Bonds to the responsive bidder whose teems'are defined herein, shall not be. applied to redemption of the Bonds immediately on award of the Bonds to the Purchaser or after rejectior "bid reflects• the lowest true interest cost .(TIC) to the City. pursuant to this Section 2.05(a).. bids. Instructions for wiring the Deposit may be obtained from the City Financial Advisor, DA. Davidson & Co.; Aaron Rudio (406) 791-7210 Bids may be submitted by facsimile to the Finance Director at (406) 75877755 O�onal Redem to ion. The Bonds are subject to redemption, in whole or in Bridget Ekstrom (�f06) 556-6965. until 11:00 AM , M.T; on Tuesday, June 13, 2006. part,: at the:option of the City from sources of funds (including tax increments) Available therefor other than those described under "Mandatory Redemption" Award Pumos_e d_$,ecuriiv on the terms of0is•paragraph::The'Bonds with stated maturities on or- after July 1,;2014 will be subject to redemption on July 1, 2013, and any date The bid authorizing the lowest true interest cost (a present -value cala Therid ,wi i.be. is ed for the ur .ose.of financing the cost f. construction BQ s . L,:,.e p .l?,:, :.::.. J, o .:. .. th reafter at the ,o option of the.City, in whole or in art at a redemption price . .. ,, .,. p .., ,.aY,. _ P. P P of total' interest on all Bonds from an t their rr► d o he maturities, less anyprem ,sup ,.. of certain local.lm Foyements;(the 'lin ,rovements") within or for.the benefit of .,:e ,,.., , equai,to';the pnncmpai amount thereof to be redeemed - plus interest accrued to: p plus an discount (TIC), will be deemed the most favorable. In the ev P Y )( ) Special Improvement: D€s#rmct No J344;(the Dmstrmct344 ), inaccordance with the redemption crate, without premium Howevee, the Bonds shall not be called two or more bids state the lowest net interest cost, the sale of the Bor the provisions of Montana Code Annotated, Title 7, Chapter 12, Parts 41 and for redempt€ori fi) from amounts on deposit in the Reserve Account'or (ii) be awarded by lot: No oral bid will be considered. The City Council wi 42, as amended (the "SID Act"'). The Bonds will be special, limited obligations before July 1, 013, from the proceeds of refunding special improvement consider sealed bids or bids transmitted electronically through the Pal of the Cityan do not constitute a eral.obll at€ons of the Ci . g n 9 ... tY 'd'stnct bonds orwan=ants. The: redem tion doe shall a ual the rinc€ al lo p p plus s stem: The Ci serves t rights' iv y ty rase ...she to reject any, and all bids t wa' .d,. _ amountof the`Bonds to be redeemed P interest accrued to the date of informalities in any bid and to adjourn the sale. The Bonds are ,payable pr€marmly #torn the collection of a special tax'or redemption, without premium. ` assessment which ms a::lmen `aga�ns# the a'ssessabl real property within District Therefor: Electronic Transmission 344 benefited by the lrrmprovements to be underta en there€n or Tfiejen .special a sessrnents;ar a epic in a mmannual instailma w s f? P„Y: g1" a nti o� , •, .. of_Bonds for Redem" tion. If less than all of the Bonds are to be redeemed -Bonds. shall b redeemed in ord of the stated maturities : ereof, . s s. ., .., �, t .. To the extent n ' s ru tin or ' . tin - `t- rt r' '"! 1 a Y In t_ c o. s . dlrec o s se fo h in Pa i _ ,..,con#Imc nncm al,aver a term a term rtotexeeedrn twen :i 20 rs eac, `, ., u l ,p. P g :,; ; h!. (, . } yf~'a;.:� n iq e.,.,, . . ,,. semiannual mnstallments:of incur .al lus interest, with•un aid p. I r " is of P P p P s> ! : If less than all Bonds of a tad maturm areto be redeemed the Bonds of .: eta _, ty a n, s . such meter shall be s lected €or:redem tmon:mn 5 000 rind al amounts ty P P $, P P thi N tm t s o., ce of Sale, he terms of this Notice of Sale shall, control For f information abou Pari T"^ `otential`bidder "m n ' t th :fi '` i t Y P s may co tac a nano al the s eclat assessments be mh interest at a rate's ual fir' `'m tmrne o time 't P qr,,� q ., o t the sum of (1) the average rate of interest borne bythe•then'outstanding Bonds, plus;(€i) one-half of one percent (0.50%) per annum. The City will establish a Reserve Account in the District Fund (the "Reserve Account") to secure the Bonds. The Reserve Account will be fund from Bond proceeds with a deposit equal to five percent (5.00%) of the principal amount of the Bonds, from which money is to be applied to pay principal of and interest on the Bo in the event collections of special assessments are insufficient therefor. The City has no obligation to replenish the Reserve . Account if the funds therein are withdrawn. To the extent available; the Bonds are also, secured by a pledge .of certain t increments derived from (i) Old School Station Technology. Tax Increment District (the "Technology District'), and (ii) Old'School Station Industrial Tax Increment. District (the "Industrial District"). The Technology District and the Industrial District are both located within the boundaries of District 344. Pursuant to Montana Code Annotated; Section 7-1-4290, the City may pledge. tax increment derived from an industrial district (such as the Industrial District or a technology district (Such as the Technology District) for the payment of special assessments bonds `(such 'at the Bonds) issued to',pay for Improvement costs that are also authorized to be made:pursuant to the SID Act. Certain tax increment revenues derived from the Technology District and the- Industrial District may be available for and may be pledged by the City to the payment of the Bonds.." The Bonds are further secured by the Special Improvement District Revolving Fund of the City (the, "Revolving Fund"). The deposit to Revolving Fund will b funded from Bond proceeds with a deposit equal to five percent (5.00%) of the principal amount of the Bonds being deposited therein. The City, will agree to make a loan from the RevalvingFund to the District Fund to make good any deficiency then existing in the principal and•interest accounts therein after depiction of the Reserve Account; and use of tax increments to the extent available. The City will also agree to provide' funds for the Revolving Fund by levying a tax or making a loan from the City's general fund to the extent and for the period authorized by the SID Act. Date and Time The Bonds will be dated, as originally issued, as of June 15, 2006 or such other date as the Finance, Director of the City shah determine, and will be issued as negotiable. investment securities 'in registered form as to both principal and interest: Maturities and Form If issued as serial bonds, the Bonds shall mature, subject to redemption, on July 1 in'the following years and amounts Year Principal Amount Year Principal Amount 2007 $225,000 2017 $225,000 2008 225,000 2018 225,000 2009 225,000 2019 225,000 2010 225,000 2020 225,000 2011 225,000 2021 225,000 2012 225,000. 2022 225,000 2013 225,000 2023 230,000 2014 225,000 2024 2301000 2015 225,006, 2025 230,000 2016 225,000 2026 230,000 Bidders will have the option of combining the Bonds maturing on and°after 2007 through and including2013 and on and after 2014 into one or more terms bonds: If any Bonds Are issued as term bonds, such term bonds will be subject to annual mandatory sin king'fund'redemption on each July 1; concluding, no later than,2026, unless the -Bonds are earlier redeemad,� at a redemption price equal to the principal amount of such Bonds or portions' `. thereof to be redderned 1th interest accrued` thereon `and payable on January 1 and July:1 to the redemption, date, .in installments and in the sarlle-,amounts and same dates asthe bonds would have.matured if they were. not included in a tern bond. Serial bonds shall be in the denomination of $5,000 each or any integral multiple thereot of'single maturities.: Book Entrx 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: nahie 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 o .selected by the :Registrar by lot or other manner it deems fair: consultants to the City, City's Financial Advisor, D.A., Davidson &_Co., Rudio (406) 791-7210 or Brid9et Ekstrom.(466)`556-6965. In the even Interest Payment Dates. Rates malfunction in the electronic bidding process, bidders. may submit that by sealed b€dincluding facsimile transmission to the Finance Director, Interest will be payable each January 1 and July 1, commencing January 1, . Robertson, at facsimile number: (406) 758-7771 (phone (406) 758-775 2007, to the registered owners of the Bonds as such appear in the bond' - register as of the close of business on the 15th day (whether or not a QUSIP Numbers business day) of the immediately preceding month. The•City will assume no obligation for the assignment or printing of CL All Bonds of the same stated maturity must bear interest from date of original numbers on the Bonds or for the correctness of any numbers printed t issue until paid at a single, uniform rate. Each rate must be expressed in an ; but will permit such numbers to be assigned and printed at the expens integral multiple of 1/8 or 5/100 of 1 % . Interest will be calculated on the basis purchaser, if the original purchaser waives any delay in delivery occas tax of a 360-day year consisting of twelve 30-day months. Individual interest rates thereby. may be no higher than 7.00%, with'the difference between the highest and lowest rate being no greater than 4.50%. ffi ' I ,gtatement Bond Register,, Trsn,r►,sf, rer Agent The City will prepare an Official Statement relating to the Bonds which a PaYirlg A9� : City will deem,.or purposes of SEC Rule 15c2-12,;to be final as of its c The Citywill deliver, at closing, a certificate executed by the Mayor, thf U.S. Bank National Association of Seattle, .Washington, will act as band Clerk and the finance Director to the effect that, to the best of their . registrar, transfer agent and paying agent (the "Registrar"). The bond.register knowledge; as of the date of closing, the information contained in the will be kept, transfers of owne. rship. will be effected'and principal of and Statement, including any supplement thereto, does not contain any urr interest on the Bonds will be paid by the Registrar. The City. will pay the statement of a material fact or omit to state a material fact necessary t� charges of the Registrar for such services. The City reserves the right to the statements •therein,.in light of the circumstances in which they are r remove the Registrar.andto appoint a suitable successor. not misleading; provided that no comment will be made with respect to 'information provided bg the successful bidder for inclusion €n any supp D iv to. the Official Statement. e Within twenty (20) days after the sale, the City will deliver to the Registrar.the B submitting a bid for the Y g Bonds, the successful bidder agrees: (i) to e printed Bonds ready for completion and authentication': The original purchaser disseminate to all members of the underwritingsyndicate copies, of the Y P of the Bonds must notify the Registrar, at least five (5) business days before' Statement; includin :`an ". supplements prepared b the City, 2 to file. 9 Y PP. P p Y Y� (} e. issuance of the Bonds :of the persons. in whose names the Bonds i ll[be promptly a copyof the- Official Statement, includingan supplement n _ Y PP p. in tially.re.giste. red and the denominations of the Bonds: to be, originally issued: -: by the City, with a°nationall" recognize municipal securities repository Y 9 p p rye If notification is not received bythat date, the Bonds will be registered in the (3) to take:any and all other actions necessary to comply with applicabi name of the original purchaser and, if serial bonds, will be issued in of the Securities: and Exchange Commission -and the Municipal Securitl denominations corresponding to the principal maturities of the Bonds: On the Rulemaking Board governing the offering, sale and, delivery of the Boni dayof closing, the. City will furnish to the purchaser the opinion of Bond ultimate purchasers. Counsel hereinafter described, an arbitrage certification and a certificate stating that no litigation in any manner. questioning the validity of the: Bonds is. Within seven (7) business daysCity after the sale the Ci will furnish to the then pending or, to the knowledge of officers of the City, threatened. Payment successful bidder without charge, up to one hundred (1`00) copies ofthi for the Bonds must be received bythe-City in immediately available funds at. Official Statement relating to the Bonds. The successful bidder must no its designated depository on the day of closing, the successful bidder shall Finance Director in writing within seven (7) busIiness-da s after the awe submit to the City Clerk not earlier than forty-eight (48) hours after the award sale of the Bonds if it requires additional copies. of the Official Staterner of sale and not later than the day of closing a certificate, inform satisfactory ' cost of additional copies shall be paid by the successful bidder. to Kennedy & Graven, Chartered, Bond Counsel; as to the 'initial reoffering: price of each stated maturity'of`the `Bonds and stating that at least ten percent Continuing Disclosure (10 /o) of the principal amount of such Bonds of each stated maturity.has been sold at such respective prices. In order to permit bidders for the Bonds and other participating underwr the primaryoffering of the Bonds to comply with paragraph (b)(5) of RuI lfi _Tax ExentW,4bli ations 15c2-12 promulgated by the Securities and Exchange Commission and Securities Exchange Actof 1934 (the "Rule'), the City will covenantanc The Bonds will be designated by the City as "qualified tax-exempt obligations" agree, for the benefit of the registered holders and beneficial owners frc within the meaning of Section 265(b)(3) of the Internal Revenue Code of ` time to time of the outstanding Bonds, in a Continuing Disclosure Undec 1986, as amended (the "Code"').' as set forth in the Official Statement to provide annual reports of specific information and notice of the occurrence of certain events, if material. T Leaal Opinion Cit the District Fund and Rev Iv• F d . th 1 " bI' An opinion as to the validity of the Bonds and the exclusion of the interest thereon -from gross income for federal income tax purposes and Montana individual income tax purposes will be furnished by Kennedy & Giraven, Chartered, of Minneapolis, Minnesota, as Bond Counsel, at the expense of the Purchaser The legal opinion will state that the Bonds are valid and binding special, limited obligations of the City enforceable in accordance with their, terms, except to the extent to which enforceability thereof may bee limited by the exercise of judicial discretion or by state or federal laws relating to bankruptcy, reorganization; moratorium or creditors' rights. Tk f id and Good Faith D osi� Sealed bids for not less than $4,429,600' (98.OM6f par) and "accrued interest on the principal amount of $4,520,000 must be mailed or delivered to the undersigned and must be received at the office of the Finance Director prior to the time stated above. TherCity reserves the right to adjust.the principal amount of the Bonds offered for, sale in each maturity by the amounts determined by;the City, in consultation°with its finandlal advisor, to reflect the actual premium and/or discount and/or unused underwriter's discount inthe winning bid, and to create the most efficient debt service structure for the Bonds. Any such change in maturity amounts will be made in multiples of -$5,000 and no serial bond maturity principal amount or mandatory sinking fund redemption. principal amount"may be changed.by more "than $20,000. Bidders,must bld for all or none: of the Bonds. Each bid must be unconditional. Bids rrmaybe transm€tted electronically.ihrbugh RarltyTM, in accordance with these terms and conditions. ' y, o rng un are a on y Ilimgated persc respect of the Bonds within the meaning of the Rule for the purposes of disclosing information on an ongoing basis. Failure of the City to enter €i undertaking substantially similar to that described in the Official Statem( would relieve the successful bidder of its obligation to purchase the Bon The City has complied in all material respects with any undertaking pre% entered into.by it under the Rule. Information for bidders and bidding forms may be obtained from Theresa White, City Clerk, at City Hall, 312 1st Avenue East, Kalispell, Montana 59901, (406) 758-7756, or from the City's Financial Advisor, D.A. David: Co., Aaron Rudio (406) 791-7216 or Bridget Ekstrom. (406) 556-6965. Dated: April 3, 2006: BY ORDER OF THE CITY COUNCIL OF THE CITY OF KALISP.ELL, MONTANA /s/Theresa White Theresa White City Clerk May 28, June 4, 2006. An opinion as to the validity of the Bonds and the exclusion of the interest thereon -from gross income for federal income tax purposes and Montana individual income tax purposes will be furnished by Kennedy & Giraven, Chartered, of Minneapolis, Minnesota, as Bond Counsel, at the expense of the Purchaser The legal opinion will state that the Bonds are valid and binding special, limited obligations of the City enforceable in accordance with their, terms, except to the extent to which enforceability thereof may bee limited by the exercise of judicial discretion or by state or federal laws relating to bankruptcy, reorganization; moratorium or creditors' rights. Tk f id and Good Faith D osi� Sealed bids for not less than $4,429,600' (98.OM6f par) and "accrued interest on the principal amount of $4,520,000 must be mailed or delivered to the undersigned and must be received at the office of the Finance Director prior to the time stated above. TherCity reserves the right to adjust.the principal amount of the Bonds offered for, sale in each maturity by the amounts determined by;the City, in consultation°with its finandlal advisor, to reflect the actual premium and/or discount and/or unused underwriter's discount inthe winning bid, and to create the most efficient debt service structure for the Bonds. Any such change in maturity amounts will be made in multiples of -$5,000 and no serial bond maturity principal amount or mandatory sinking fund redemption. principal amount"may be changed.by more "than $20,000. Bidders,must bld for all or none: of the Bonds. Each bid must be unconditional. Bids rrmaybe transm€tted electronically.ihrbugh RarltyTM, in accordance with these terms and conditions. ' y, o rng un are a on y Ilimgated persc respect of the Bonds within the meaning of the Rule for the purposes of disclosing information on an ongoing basis. Failure of the City to enter €i undertaking substantially similar to that described in the Official Statem( would relieve the successful bidder of its obligation to purchase the Bon The City has complied in all material respects with any undertaking pre% entered into.by it under the Rule. Information for bidders and bidding forms may be obtained from Theresa White, City Clerk, at City Hall, 312 1st Avenue East, Kalispell, Montana 59901, (406) 758-7756, or from the City's Financial Advisor, D.A. David: Co., Aaron Rudio (406) 791-7216 or Bridget Ekstrom. (406) 556-6965. Dated: April 3, 2006: BY ORDER OF THE CITY COUNCIL OF THE CITY OF KALISP.ELL, MONTANA /s/Theresa White Theresa White City Clerk May 28, June 4, 2006.