15-96 Refuse Garage Improvement Bond $50,000

Home Browse Search

INVITATION FOR PROPOSALS $3,331,600 CITY OF LAKEWOOD, OHIO VARIOUS PURPOSE GENERAL OBLIGATION BOND ANTICIPATION NOTES, SERIES 1996 DATED: May 9, 1996 DUE: May 9, 1997 The City of Lakewood, Ohio (the "City") contemplates the issuance of $3,331,600 Various Purpose General Obligation Bond Anticipation Notes, Series 1996 (the "Notes"), as more fully described ~n the enclosed Preliminary Official Statement. The City is inviting written proposals, or oral proposals, communicated by telephone, for the purchase, aC not less than par and accrued interest, of the Notes. Proposals will be received by the Fiscal. Officer of the City untit 11:00 a.m. Eastern Daylight Saving Time, on April 23, 1996, a~ the office of the Fiscal Officer of the City at the address stated.below. Split rate proposals or proposals for less than all of the Notes wit1 not be considered. The proposal shall specify the rate of interest which the Notes are to bear and may specify a rate of interest after maturity different than the rate prior to maturity, but no rate specified shall exceed the maximum interest rate per annum of 10% determined by Council. Oral proposals should be promptly confirmed in writing to the undersigned by the bidders. THE NOTES 'ARE NOT "QUALIFIED TAX- EXEMPT OBLIGATIONS" FOR PURPOSES OF SECTION 265(b) (3) OF THE INTERNAL REVENUE CODE OF 1986, The Notes will be dated May 9, 1996 and will mature on May 9, 1997, with no option in the City to. redeem the Notes prior to maturity. The Notes will bear interest (computed on a 360-day per year basis) from their date payable at maturity; will be issued in such denominations as requested by the original purchaser; and will be payable at banks or ~rus~ companies, as determined by the Fiscal Officer, without deduction for exchange, collection or service charges. On April 23, 1996, the Fiscal Officer will consider the proposals submitted and will award the Notes on the basis of the Rroposal resulting in the sale of the Notes au the lowest net interes~ cost to the s~a~ed maturity. The lowest net interest cos~ wilt be determined by taking the amount of interest from the date of the Notes =o the stated maturity date and deducting therefrom the amount of any premium. In the event of tie proposals based on the lowest net interest cost to the stated maturity, the Fiscal Officer will award the Notes to the bidder submitting the tie proposal who bids the lowest interest rate after maturity, and if such an award would result in tie proposals, the successful proposal will be selected by lot in a manner determined by the Fiscal Officer. Any informality or failure to conform to the instructions herein contained may be waived by the Fiscal Officer, and the Fiscal Officer may reject any or all of the proposals presented. Legal matters incident to the issuance of the Notes and with regard to the tax exempt status of the interest thereon are subject to the approving legal opinion of Calfee, Halter & Griswold, Bond Counsel, which will be furnished without cost ~o the original purchaser at the time the Notes are delivered to it. That opinion will include an opinion, based upon and assuming compliance with covenants and the accuracy of representations and certifications of the City, that under the existing law (a) the interest on the Notes (i) is excluded from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), (ii) is noc treated as an item of ~ax preference for purposes of the alternative minimum tax imposed on individuals and corporations by the Code, and (iii) is exempt from the Ohio personal income tax and excluded from the net income base of t~e Ohio corporate franchise tax, and (b) the Notes are not "private activity bonds" as defined in the Code. Under the Code, the interest may be subjec= tc