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Tab 02 Affidavit of Publication of Notice of Sale of BondsSTATE OF MONTANA FLATHEAD.COUNTY AFFIDAVIT OF PUBLICATION CHRIS SCHULDHEISS BEING DULY SWORN, DEPOSES AND SAYS: THAT SHE IS THE LEGAL CLERK. OF THE DAILY INTER LA A DAILY NEWSPAPER OF GENERAL CIRCULATION.' PRINTED AND PUBLISHED IN THE CITY OF KALISPELL, IN THE COUNTY OF FLATHEAD, STATE OF MONTANA, AND THAT NO, 10634 LEGAL ADVERTISMENT 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, JUNE 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 NUMBEROF INSERTIONS. Subscribed and sworn to Before me this JUNE 5, 2006 V�, Notary Public for the State of Montana Res]"ding in Kalispell My Conunission expires 9/11/09 hasiiit�bf the Qonot may be made in the principal amount of $5,000 or Except for a bid by or on behalf of the Board, of Investment5of the 81 ,No..106.34 any4nbltiolwthereof of a single mat?j$4 through book entries made on the Montana, a good faith d appsit (the "Deposit') in th# 9 of money, c :,,NOTICE OF BOND/- boo" and� records of P DTC and its r )aritd. rincipal and interest are, check, certified check, bank money order, or bank Irawn and is 0ay4ble t �y the registrar to DTC ort. ninee as registeradowner of,ft a federally chartered or state chart6red bank insillim, -y"the fed I c era c $4,520,bOO Bonds."trin6fdr 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 pa re U yAble to the orderoif the City, is; requi dfora i.dto0econsid6red SPECIAL. I M PROVEMENTDISTRICT NO. 344 BONDS. �beneficial owners by pa rticipiants,will be the: responsibility of such participants money', cashiers check, certified check,.bank money order, or bAnk-( SERIES 2006 Md'other no'rhineed of -berieficial ownbils, The -purchaser, as a,conditi6n of used,, it must ac company the bid and be delivered to the Finance Din elivery of the Bonds, will be required to deposit the Bonds with d DTC.� financial surety bond is used, it must be from an insurance compah y NOTICE'IS HEREBY GIVEN thatthe. City of Kalispell, Montana (the "City"), 'Will sell iathe highest,and.bept bidder foe. caskis evidenced by sealed bids. Rederngtion., and qualified to issue such a!bondin the State �ot,-Montana and such must be submitted to the Finance Director or the City's financial advi� 'Speciallm'priciv . eme. . ritDisirldt No..344 Bonds, Series 2006 (the "Bonds") to,the opening of the bids. The financial surety bond must identify eai :� drawn against the. fund of Special Improvement District No. 344 (the District Mandato[y Redemp-ti!pn. If on any interest payment date there will be a whose Deposit is guaranteed by such financial surety bond. If the Bo Funcr') in the. principal amount estimatednot 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 I required to submit its Deposit to the City in the form of a cashier's chi ,Sealed bids for the-pur6hase-of the Bonds Will . b6 received at the office of the assessrnents 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 Dire.ct0rin:k6lispeI( Mo�ta6a',�at City Halt 312 1 st Avenue East, the Construction' Account to the Principal. Account, outs . tanding Bonds.i Or, later than 1,:00 p �m., Mountain Daylight Time, on the next business d,, Kalispell, lvlonlpna.59�01-, or bids.ibr the purchase of the Bonds will be portions thereof, in an amount which,. �ogether with the interest thereon to the following.the award..Ifsuch,,Deposit is not received by that time, the f 61 ', IV b� �:.recejlvedby'ihi, C'' y�electronic.transm�ssiion'through Parity`ri`�, in -either interest payment date, Will equal:the amount of ep such fund s on d osit in the su rety bond may be d raWn by the City to satisfy the Deposit requirerr ..�.6ase uhu'l 1:00A;M:�, MT; on Tuesday, the 1 �ith-day of June, 2006. The bids District Fund on that date,are subject to mandatory redemption on that . interest on the Deposit w ill accrue to the Purchaser. The Deposit Will will 66 oo6nedi-(br44­­: nd ;of the-Cit oces C . I ., IX'a tabulated andthe City Council. y int a. The rade- erest payment dat motion pride s hall equal the amount of the applied tothe purrhas4 price of the Bonds. In the -event - the PurchaSE Will meet at 12:00. P.k..M,T,:'bn the s4me'day in1he 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 by the City as liqu consider the bids�and the award of sale of the Bonds and, if a responsive and date of redemption. Tax increments and Available Tax Increments, as such damages. The Deposit of the unsuccessful bidders will be returned Acceptable bid is:rec . e1ved,4ward,the.BorIds to the responsive bidder whose . I 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 �bidrefie6tdthe I owest true interest cost.(TI C) to the City. pursuant to this Section 2.05(a). bids. lnsf�uctions for wiring the Deposit rhay be obtained from the Cit� Financial Advisor, DA. Davidson & Co., Aaron Rudio (406) 791-7210 . bids may be submitted b y facsimile to the Finance Director at (406) 75877755 Opftnal Redeml�ti6n. The Bonds are subject to redemption, in whole, or in Bridget Ekstr6 m (4 06) 556-6965., until 1 1:00'AM., m.T., on Tuesday, June .13, 2006. part,:at the,option ofthe City from sources of funds (including tax increments) Available therefor other than those described u.n 'at "Mandatory Redemption" Award Pumose'and ggQurl 06.the terms of 0is'pdragraph. The'Bonds. with stated maturities on or- after July 1, Will be subject to:redemption on July 1, 2013, and any date The bid authorizing the lowest true interest cost (a present -value cala The Boods,wili-be. issued.for the p0rp.Pse.9f financing the, cost of. construction ­(ihp-i!li4 thereattk, at the option of the.City, in whole or in. part, at a redemption price of total interest on all Bonds from and to their maturities, less any prei :df, ce rtaim o6alimp oveme­i in' htd") within or fiitho benefit of equal,to t a. principai-arhount thii�eof to be redeemed -plus interest accrued to', h plus any discount) (TIC), will be deemed the most f av orable. In the ev Districit 344?�),- in ae'liordance with a �re. `ih ion' 66, Without premium How6vee,the Bonds shall not be called 'from Mo two or re bids state the lowest net interest cost, the sale of the Bor M, the provisions of ontana Code Annotated, Title 7 Chapter 12, Parts 41 and r r6demptlorifi) -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 ofref undihg special improvement . . consider sealed bids or bids transmitted electronically through the Pal of the City and 0 o not constitute gq'nprAl.:6blIgqtIons! of the�bly..� 'dist rict� bonds 0'r,wanr �-a , hts�The`-r'edem ion'pdoashall I Pt . equal the principa system�TheCity serves the rights to reject any, and all bids, to waiv re te�r d amountof the bohddito a dernedoplus interest accrued to theddte-of informalities; in any bid and to adjourn the sale. ,The Bonds are payable prlmarily.ftizirri'th6 c6'1166tion of a 6pa'611al.tax or redemption, without premium. 't, h M4 Prop h 0 .'assaissmen w 0, etty wit in istrict b44:66n6fifiidby heilinprov"eimeniii 6' h-d Electronic Transmission rol for dift k` th6 notih&,6, .T o a un a a an . .special a4sessririents;,ar�,pay4ole in e s allm in t pn,.' qua t� qt, Ele!21on of Bonds for Redem tidn. If less than all of the Bonds are to be rede6med-Bonds. shall bq, redeemed in ordql of the st d maturities t�ereof. i' Ate To the extent any in structioris or Qections set forth in Pari�y TT cplitlicl -iPa;,.QVeva1 awa, er�W:ho­Vexdee'djng tw4nt 1 prno _y., (20):yo h p.rs, eAc, �,qiogUO semiannual insta. ments q,principp, p, hL,un`p"a'idJp.s' - If"" t terpst,'wit on s 9� I ips in — "' M� 16 an W f I ss,th a maturity Are� I Bon so' a" f �s c maturit Mted' :o be redeemed the Bonds b y'phallba-,4 166tedfor emption-in 5,0 rincipa amounts 9 h p red $ 00 thi d Notice of Sale, th'e terms of this Notice of Sale sfi6ll cd4fi f. Oo'r ft' M a fina noia inforr-�4�tonab6utParitv"r botential bidders, may ontact I thlespe 6 J lhiq"�, intibr6§t At a' rat t wto time "to 'n S ;1'eqr! a equa,!, rom I the sum of (1) the a , verage ­ r L at , 9 , of� i ' nt arest borne by-th . e1henb6tslAnding Bonds, plud.(h) one-half bf one. percent (0.50%) per annum. The City will establish a.Reserve Account in the District Fund (thp� "R,.esiarve Accourif") to secure the Bonds. The 'Reserve Account will be fund from 'Bond pro�Oeds with a deposit equal to f ive percent (5.00%) of the princ !pal arriount of the Bonds, from which. money is to be applied to pay principal of and interest on the Bo I nds in the event collections of special ad . sessrne4s are insufficient therefor. The City has no obligation to replenish the Reserve Account if the funds therein are withdrawn. To the extent availa le the Bonds ar. .. .0 1 . a also. secured by a pledge'of certain tax increments derived from (i) Old School Station' Technology. Thx lhcr6miant District (the lkhnblogy District'.), and (ii) OldrSdhool Station Industrial Tax Increment. District (the "Industrial District"). The Technology District and the Industrial District are both located Within the boundaries (if District 344. Pursuant to Montana Code Annotated, Section 7-1-4290, the City may pledge. tax increment derived from an indostria'l district (such -as the Industrial District, or a technology district (Such as the Technolo y District) for the payment of 9 speciala6siessments bonds (such at the Bonds) issued to,pay for Improvement costs thatare also authorized to be made:pursuant to the SID Act. Cert ' Ain tax increment revenues derived from the Technology District and the- Industrial Dis,trict,,may be available for and may be pledged by the City to the payment of the Bonds.. Toe Bonds are further secured by the Special Improvement District Revolving Fund of the City (the. 411evolving Fu 6d"). The deposit to Revolving Fund will be 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 makea loan from the Re�61ving Fund to' the District Fundto make good any deficiency then existing in the principal. and,interest accounts therein after depiction of the Reserve A6couint,, and . use of tax increments to the extent available. The City will also -agree to proV id4 funds for the Revolvingfund 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 gnd 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 shall determine, and will be issued as negotiable investment securities i in registered form as to both principal and inte�rest. Maturities and I*M If issued as serial bonds, the Bonds shall mature, subject to redemption, on July 1'in th&lollowing years�and amounts Year Princip al Amount Year Prin ip Q gi Amount 2007 $225,000 2017 $225,000 2008 225,000 2018 225,000 9009 225,000 2019 225,000 .2010 225,000 2020 225,000 2011: 225,000 2021 225 00 0 2012 225,000 2022 225,000 2013 225,000 2023 230,006 2014 225,000 2.024 2301000 2015 225,006, 2025 230,000 .2016 225POOO 2026 230,000 Bidders will have the option of combining the Bonds maturing on ain'd-after 2007 through and inclUding'PQ1 3 and on and after 2014 into one or more terms bond !si It any Bonds Are issued as term bonds, such term bonds will be subject to annual mandator s* kin . I I ry in g1und'redemption on each July I 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 redderned41th int6re'st'adcrued thereon . arid I paya . ble on January 1 And July:1 to the redemption dal:6,in installmentik and in the sar.ne-,amounts and same dates as't,hiabon6s would have',matured if they were. n'ot'include'd in a term bond. Serial bonds shall be in the denomination of $5,000 each or any integral multiple thereot of'single maturlltibs� Book Ent The Bonds will be issued b . y means of a book entry system with no physical distribution of Bonds made to the Public.. The Bonds will be issued in fujly registered form and one Bond representing the aggregate principal amount of the Bond's ma-tur'in' I ' ear,.will be registered in than'ahie of'C6de4: g in each yi Co, as nominee of The Depository Trust Company'("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual ..'.selected by the I egistrar by: lot or other manner it deems fair, consultants to the City, City's Financial Advisor, D.A., Davidson4 Co., Rudio (406) 791-7210 or Bridget Ekstrom,�466) 6�6-6065. In the ever Interest Payment Dates Rates malfunction in t dding process bidd'irs he electronic bi a may submit thei by sealed bldincluding facsimile transmission to the Finance Director, Interest will be payable each January 1 and July1, 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 Bondsor for the correctness' of any numbers printed i 'such issue until paid at a singlej�uniform rate. Each rate must be expressed in an but will permit 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 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%. Off icial �,5Weme Bond Registrar, TIOnsfer Agent The City will prepare an Official Statement relating to the Bonds which and Payiag Agmnt City will deemi -or purposes of SEC Rule 15c2-12,jo be final as of its c U.S. Bank National Association of Seattle, Washington, will act as bond The City: Will deliver, at closing,L a certificate executed by the Mayor, thf Clerk and the Finance Director to the effect that, to the best of their registrar, transfer agent and payingagent (the "Registrar"). the bondregister. knowledge, as of the date of closing, the information contained in the will be kept, transfers of owne�shiip. will be effected'and , principal of and, Statementi including c 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 & material fact or omit to state a material fact necessary t I charges o f the Registrar for such services. The City reserves the right to the statements th . erein, in light of the circumstances in which they'are 1 . remove the Registrarand to appoint a suitable successor. not misleading; provided that no comment will be made with respect to 'inforilTiation Delive provided.bg the successful bidder for inclusion 16 6ny supp to. the Official Statement Withip. twenty (20) days after the sale, the City willdeliVer tQ-the Registrar. the By submitting a bid for the Bonds, the, successful bidder agrees: (1) to printed Bonds ready for completion and apth6nfication,.The original purchaser disseminate to all members of the underwriting syndicate copies, of the of the Bonds'muist notify the Registrari At least, five (5) bUsinesv days before 'ris Statement, in cludingany supplements prepared by the City, (2) to file. .issuan6e of the Bonds of the pars o . inwhosenamOsthe:Boridswill[be promptlya,co Of the- Official Statement, including any supplement piri py, . . . initially�regittered and the denominations of the Bonds to be oirldinall y issued. . by the City, With 6 nationally recognize municipal securities repository If notification is not received by that date, the Bonds will be registered in the (3) to takeany and all other actions necessary to comply with appricabi name of the original purchaser and, if serial bonds, will be issued in of the Securities and Exchange Commission -and the Munici " pal Securit denominations corresponding to the principal maturities of the Bonds, On the Rulemaking Board governing the offering, sale and, delivery of the Boni day of closing, the City will f urnisfi to the purchaser the opinion of Blond, ultimate purchasers.' Counsel hereinafter described, an arbitrage certification and a certificate stating i that no litigation in any manner. questioning the validity Of the: Bonds is. Within seven (7) business days after the sale the City will furnish to the then pending or, to the knowledge of off icers of the City, threatened. Payment successful bidder without charga., up to one.hundred (100) copies of thi for the Bonds must be received by the- 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 sev n (7) bus I i -days After the ewe a nass submit to the City Clark not earlier than forty-eight (48) hours after the award sale of the Bonds if it requires additional copies. of the Officl . a I I St4temer of sale and not later than the day of cicising a certificate, in. form satisfactory I cost of additional copies shall be paid by the successful bidder. to Kennedy & Graven, Chartered, Bond Counsel',.as to the i initial reoffering price.of each stated maturity'Of the Bonds and stating,that at least ten percent Q2ntinuing Disclosure (10%) of the principal amount of such Bonds of each, stated ma.turity.has been sold At such respective prices. In order to permit bidders for the Bonds and other participating underwr QW-af1W_T8_*Exgn2W 9bligations the primary. offering: of the Bonds to comply With paragraph (b)(5) of R I w u 15c2-12 promulgated by the Securities and Exch ange Commission lund Securities Exchange Adt'di 1934 (the "Rule'), the City will cliv:6nantanc The Bonds will be designated by the City as.'qualified tax-exempt obligations" agree, for the benefit of the registered holders and beneficial owners f rc within the meaning o t Section 265*)(3i) of the Internal Revenue Code of time to time of the'ot;itsta6ding Bonds, in a Continuing Disclosure Undei 1986, as amended (the "Code"').' as set forth in the Official Statement to provide annual reports of specifit Leaal Q information and notice of the occurrence of certain events, if mat6rial. T Citv tho niafrif%t9"nrl M­ ItA C' A gk +k 1 11 ki; 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 & Giaven, Chartered, of Minneapolis, �Mihnesota, 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 fie limited by the exercise of judicial discretion or by state or federal laws relating to bankruptcy, reorganization, moratorium & creditors" rights. Dpe of Bid and Good Faith Depos Sealed bids for not less than $4,42 9,600 (98 OM6f par) and Accrued interest on the principal amount of $4526,0 00 must be mailed or delivered to the undersigned mdst be received at the off ice of the Finance Director prior to thia time stated above. TherCity reserves the rightLto adjust,the principal amount of the Bonds offered. for, sale in each maturity by the amounts .,determined by.the City, in c6risilliftationwith ftlinandlal advisor, to r6flect the actual premium and/or discount � and/or unused underwriter's discount in1he winning bid, and to create the most efficient debt s I ervice structure for the Bonds. Any such change in. matUrity amo . unts . will be made in multiples of -$5,000 and no serial bond maturity�princ.ipall am.oun . t or mandatory sinking fund redemptio� principal amiount"may be� chahged�.by more �than $20,000. Bidders�,musfbld�fi:D'r all or none of the Bonds. Each bid must be unc pridition6l. bids may a. transi' rmtted electronic�lly ihrbugh PaeltyTm, in 'accordance with these terms and conditions. ll v "!d U" 10 Vy"y Ili WEIEWPOISC 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 li undertaking substantially similar to that described in the Off icial 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 Theresi White, City Clerk, at City Hall, 312 1 st Avenue East, Kalispell, Montana 59901, (406) 758-7756, or from the City's Financial Advisor, D.A. Davidf 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 KALISPELL, MONTANA /sfTheresa White Theresa White City Clerk May 28, June 4,2006.