16-96 Traffic Signal Improvement $10,000

Home Browse Search

EXHIBIT ! INVITATION FOR PROPOSALS $3,331,600 CITY OF .LAKEWCOD, OHIO V~RIOUS PURPOSE GENERAL OBLiGATiON BOND ANTICIPATION NOTES, SERIES 1996 DATED: May 9, 1996 DUE: May 9, 1997 The City of Lakewood, Ohio (the "City") conuemplates 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, at not less than par and accrued interest, of the Notes. Proposals will be received by the Fiscal Officer of the City until 11:00 a.m. Eastern Day!ighz Saving Time, on April 23, 1996, at 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 will 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 A.RE 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 ~o 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 trust 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 proposal resulting in the sale of the Notes at the lowest net interest cost to the stated maturity. The lowest net interest cost will be determined by taking the amounu of interest from the date of the Notes to the stated mauurity date and deducting therefrom the amount of any premium. In the event of tie proposals based on the lowest net interest cost to the suated mauurity, the Fiscal Officer will award the Notes ~o the bidder submitting the tie proposal who bids the lowest inueresz 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 infoz~ality or failure to conform to the instructions herein contained may be waived by the Fiscal Officer, and the Fiscal Officer may rejecu 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 interes~ thereon are subject to the approving legal opinion of Calfee, Halter & Griswold, Bond Counsel, which will be furnished withouu cost uo 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 certificauions of the City, that under the existing law (a) the in~eresz on the Notes (i) is excluded from gross income for federal income uax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), (ii) is not treaued as an item of tax preference for purposes of the alternative minimum tax imposed on individuals and corporations by the Code, and (iii) is exempt from the Ohio personal ~ncome tax and excluded from th~ net income base of the Ohio corporate franchise tax, and (b) the Notes are not "privaue activity bonds" as defined in the Code. Under the Code. the in~eresz may be subject to