OFFICIAL STATEMENT DATED JULY 30, 2009
NEW ISSUE Rating: Requested from Standard & Poor’s Ratings Services
In the opinion of Briggs and Morgan, Professional Association, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and
decisions, at the time of their issuance and delivery to the original Purchaser, if the Certificates are bid as Tax-Exempt Certificates, interest on the
Certificates is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, in computing both gross and
taxable net income for purposes of State of Minnesota income tax (other than Minnesota franchise taxes measured by income and imposed on corporations
and financial institutions). Interest on the Certificates is not an item of tax preference for purposes of the alternative minimum tax imposed on individuals and
corporation; however, interest on the Certificates is taken into account for the purpose of determining adjusted current earnings for purposes of computing
the federal alternative minimum tax imposed on corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax
consequences caused by the receipt or accrual of interest on the Certificates or arising with respect to ownership of the Certificates. See “Tax Exemption”
and “Other Federal and State Tax Considerations” herein. If the Certificates are bid as Taxable Certificates, interest on the Certificates is includable in gross
income for purposes of United States and State of Minnesota income tax. (See "Taxability of Interest" herein.)
$1,675,000*
City of Woodbury, Minnesota
General Obligation Equipment Certificates of Indebtedness, Series 2009C
(Book Entry Only)
(Option offered to bid as Tax-Exempt Certificates or as Taxable Build America Bonds)
Dated Date: September 1, 2009 Interest Due: February 1 and August 1,
commencing August 1, 2010
The Bonds will mature on February 1 as follows:
2011 $155,000
2012 $175,000
2013 $180,000
2014 $180,000
2015 $185,000
2016 $190,000
2017 $195,000
2018 $205,000
2019 $210,000
Proposals for the Certificates may contain a maturity schedule providing for a combination of serial bonds and term bonds.
All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of
redemption and must conform to the maturity schedule set forth above.
The City may elect on February 1, 2017, and on any day thereafter, to prepay the Certificates due on or after February 1,
2018 at a price of par plus accrued interest. The Certificates are also subject to Extraordinary Redemption. Please see
“THE CERTIFICATES – Extraordinary Redemption” herein.
The City is requesting bids for the Certificates optionally as conventional tax-exempt general obligations or as taxable general
obligations which the City will elect to designate “Qualified Build America Bonds (Direct Pay)”.
A Critique of the Proposed National Education Policy Reform
OFFICIAL STATEMENT DATED JULY 30, 2009 NEW ISSUE Rating .docx
1. OFFICIAL STATEMENT DATED JULY 30, 2009
NEW ISSUE Rating: Requested from Standard & Poor’s
Ratings Services
In the opinion of Briggs and Morgan, Professional Association,
Bond Counsel, based on present federal and Minnesota laws,
regulations, rulings and
decisions, at the time of their issuance and delivery to the
original Purchaser, if the Certificates are bid as Tax-Exempt
Certificates, interest on the
Certificates is excluded from gross income for purposes of
United States income tax and is excluded, to the same extent, in
computing both gross and
taxable net income for purposes of State of Minnesota income
tax (other than Minnesota franchise taxes measured by income
and imposed on corporations
and financial institutions). Interest on the Certificates is not an
item of tax preference for purposes of the alternative minimum
tax imposed on individuals and
corporation; however, interest on the Certificates is taken into
account for the purpose of determining adjusted current
earnings for purposes of computing
the federal alternative minimum tax imposed on corporations.
No opinion will be expressed by Bond Counsel regarding other
state or federal tax
consequences caused by the receipt or accrual of interest on the
Certificates or arising with respect to ownership of the
Certificates. See “Tax Exemption”
and “Other Federal and State Tax Considerations” herein. If the
Certificates are bid as Taxable Certificates, interest on the
Certificates is includable in gross
2. income for purposes of United States and State of Minnesota
income tax. (See "Taxability of Interest" herein.)
$1,675,000*
City of Woodbury, Minnesota
General Obligation Equipment Certificates of Indebtedness,
Series 2009C
(Book Entry Only)
(Option offered to bid as Tax-Exempt Certificates or as Taxable
Build America Bonds)
Dated Date: September 1, 2009 Interest Due: February 1 and
August 1,
commencing August 1, 2010
The Bonds will mature on February 1 as follows:
2011 $155,000
2012 $175,000
2013 $180,000
2014 $180,000
2015 $185,000
2016 $190,000
2017 $195,000
2018 $205,000
3. 2019 $210,000
Proposals for the Certificates may contain a maturity schedule
providing for a combination of serial bonds and term bonds.
All term bonds shall be subject to mandatory sinking fund
redemption at a price of par plus accrued interest to the date of
redemption and must conform to the maturity schedule set forth
above.
The City may elect on February 1, 2017, and on any day
thereafter, to prepay the Certificates due on or after February 1,
2018 at a price of par plus accrued interest. The Certificates
are also subject to Extraordinary Redemption. Please see
“THE CERTIFICATES – Extraordinary Redemption” herein.
The City is requesting bids for the Certificates optionally as
conventional tax-exempt general obligations or as taxable
general
obligations which the City will elect to designate “Qualified
Build America Bonds (Direct Pay)”. Each bidder is encouraged,
but
not required, to submit proposals for both Tax-Exempt
Certificates and Taxable Certificates. To comply with the
“Build America
Bond” provisions of the Internal Revenue Code of 1986, as
amended (the “Code”), each proposal for the Taxable
Certificates
must specify the expected reoffering price for each maturity of
the Certificates, and (i) each actual reoffering price paid by the
public or any broker dealer or bondhouse cannot exceed the par
amount of the maturity by more than .25% multiplied by the
number of complete years to the earlier of the maturity date or
the first optional redemption date for the maturity of the
Certificates, and (ii) in the initial offering period, no bond may
be sold by any broker dealer or bondhouse, including any dealer
4. who purchases an inter-dealer transaction, for a price in excess
of such limit unless the IRS provides authoritative guidance to
the contrary. Separate proposal forms and Parity provisions
have been provided for submitting proposals for the Certificates
if to
be designated Tax-Exempt Certificates or designated Taxable
Certificates.
Proposals must be for not less than $1,654,900 and accrued
interest on the total principal amount of the Certificates.
Proposals shall specify rates in integral multiples of 5/100 or
1/8 of 1%. Rates are not required to be in level or ascending
order; however, the rate for any maturity cannot be more than
1% lower than the highest rate of any of the preceding
maturities. Proposals must be accompanied by a good faith
deposit in the amount of $16,750 in the form of a certified or
cashier’s check payable to the order of the City, a wire transfer,
or a Financial Surety Bond, and delivered to Springsted
Incorporated prior to the time proposals will be opened. The
Certificates will be awarded on the basis of True Interest Cost
(TIC), treating the credit available to the City if the Certificates
are issued as Taxable Certificates constituting “Qualified Build
America Bonds” as a reduction in each interest payment.
The Bonds will be issued as fully registered Certificates without
coupons and, when issued, will be registered in the name of
Cede & Co., as nominee of The Depository Trust Company
(“DTC”). DTC will act as securities depository for the
Certificates. Individual purchases may be made in book entry
form only, in the principal amount of $5,000 and integral
multiples thereof. Investors will not receive physical
certificates representing their interest in the Certificates
purchased.
(See “Book Entry System” herein.) Wells Fargo Bank, National
Association, Minneapolis, Minnesota will serve as registrar
(the “Registrar”) for the Certificates. Certificates will be
5. available for delivery at DTC on or about September 9, 2009.
* Preliminary; subject to change.
PROPOSALS RECEIVED: August 12, 2009 (Wednesday) until
10:30 A.M., Central Time
AWARD: August 12, 2009 (Wednesday) at 7:30 P.M., Central
Time
Further information may be obtained from SPRINGSTED
Incorporated,
Financial Advisor to the City, 380 Jackson Street, Suite 300,
Saint Paul,
Minnesota 55101-2887 (651) 223-3000
For purposes of compliance with Rule 15c2-12 of the Securities
and Exchange Commission,
this document, as the same may be supplemented or corrected
by the Issuer from time to time
(collectively, the “Official Statement”), may be treated as an
Official Statement with respect to
the Obligations described herein that is deemed final as of the
date hereof (or of any such
supplement or correction) by the Issuer, except for the omission
of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an
addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the
6. Obligations, together with any other
information required by law, shall constitute a “Final Official
Statement” of the Issuer with
respect to the Obligations, as that term is defined in Rule 15c2-
12. Any such addendum shall,
on and after the date thereof, be fully incorporated herein and
made a part hereof by reference.
By awarding the Obligations to any underwriter or underwriting
syndicate submitting a Proposal
therefor, the Issuer agrees that, no more than seven business
days after the date of such
award, it shall provide without cost to the senior managing
underwriter of the syndicate to which
the Obligations are awarded copies of the Official Statement
and the addendum or addenda
described in the preceding paragraph in the amount specified in
the Terms of Proposal.
The Issuer designates the senior managing underwriter of the
syndicate to which the
Obligations are awarded as its agent for purposes of distributing
copies of the Final Official
Statement to each Participating Underwriter. Any underwriter
delivering a Proposal with respect
to the Obligations agrees thereby that if its bid is accepted by
the Issuer (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship
with all Participating Underwriters
of the Obligations for purposes of assuring the receipt by each
such Participating Underwriter of
the Final Official Statement.
No dealer, broker, salesman or other person has been authorized
by the Issuer to give any
information or to make any representations with respect to the
7. Obligations, other than as
contained in the Official Statement or the Final Official
Statement, and if given or made, such
other information or representations must not be relied upon as
having been authorized by the
Issuer. Certain information contained in the Official Statement
and the Final Official Statement
may have been obtained from sources other than records of the
Issuer and, while believed to be
reliable, is not guaranteed as to completeness or accuracy. THE
INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL
STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER
THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL
STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY
IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER
SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions,
agreements, reports and other
documents do not purport to be comprehensive or definitive.
All references to such documents
are qualified in their entirety by reference to the particular
document, the full text of which may
contain qualifications of and exceptions to statements made
herein. Where full texts of
documents prepared by or on behalf of the Issuer have not been
included as appendices to the
Official Statement or the Final Official Statement, they will be
furnished on request.
Any CUSIP numbers for the Obligations included in the Final
8. Official Statement are provided for
convenience of the owners and prospective investors. The
CUSIP numbers for the Obligations
have been assigned by an organization unaffiliated with the
Issuer. The Issuer is not
responsible for the selection of the CUSIP numbers and makes
no representation as to the
accuracy thereof as printed on the Obligations or as set forth in
the Final Official Statement. No
assurance can be given that the CUSIP numbers for the
Obligations will remain the same after
the date of issuance and delivery of the Obligations.
TABLE OF CONTENTS
Page(s)
Terms of
Proposal..................................................................................
............................. i-vi
Introductory
Statement................................................................................
........................ 1
Continuing Disclosure
...............................................................................................
.......... 1
The
Certificates.............................................................................
...................................... 2
9. Authority and Purpose
...................................................................................... .........
......... 5
Security and Financing
...............................................................................................
........ 5
Future Financing
..................................................................................... ..........
.................. 5
Litigation................................................................................
.............................................. 5
Legality.......................................................................... ........
.............................................. 5
Tax Exemption
...............................................................................................
..................... 6
Other Federal and State Tax Considerations
..................................................................... 6
Taxability of
Interest...................................................................................
......................... 7
Rating.....................................................................................
............................................. 8
Financial
Advisor...................................................................................
.............................. 8
Certification
...............................................................................................
.......................... 8
City Property Values
...............................................................................................
............ 9
City Indebtedness
...............................................................................................
................ 10
City Tax Rates, Levies and Collections
10. .............................................................................. 15
Funds on Hand
...............................................................................................
.................... 16
City Investments
...............................................................................................
.................. 16
General Information Concerning the
City............................................................................ 16
Governmental Organization and Services
.......................................................................... 24
Proposed Form of Legal Opinion
............................................................................... Appendix
I
Continuing Disclosure
Undertaking............................................................................
Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation
........................................................................ Appendix III
Excerpt of 2008 Annual Financial Statements
........................................................... Appendix IV
- i -
THE CITY HAS AUTHORIZED SPRINGSTED
INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON
THE FOLLOWING BASIS:
11. TERMS OF PROPOSAL
$1,675,000*
CITY OF WOODBURY, MINNESOTA
GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS, SERIES 2009C
(BOOK ENTRY ONLY)
The City of Woodbury, Minnesota is requesting bids for the
above-named Issue optionally as
conventional tax-exempt general obligations (the “Tax-Exempt
Certificates”) or as taxable
general obligations which the City will elect to designate
“Qualified Build America Bonds (Direct
Pay)” (the “Taxable Certificates”). Proposals for the
Certificates and the Good Faith Deposit
(“Deposit”) will be received on Wednesday, August 12, 2009,
until 10:30 A.M., Central Time, at
the offices of Springsted Incorporated, 380 Jackson Street, Suite
300, Saint Paul, Minnesota,
after which time proposals will be opened and tabulated.
Consideration for award of the
Certificates will be by the City Council at 7:30 P.M., Central
Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the
12. bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each
Proposal shall be deemed to
constitute a contract between the bidder and the City to
purchase the Certificates regardless of
the manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed
envelope or by fax
(651) 223-3046 to Springsted. Signed Proposals, without final
price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder
shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone
(651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic
proposals will be received via
PARITY®. For purposes of the electronic bidding process, the
time as maintained by PARITY®
shall constitute the official time with respect to all Bids
submitted to PARITY®. Each bidder shall
be solely responsible for making necessary arrangements to
access PARITY® for purposes of
submitting its electronic Bid in a timely manner and in
compliance with the requirements of the
Terms of Proposal. Neither the City, its agents nor PARITY®
shall have any duty or obligation to
undertake registration to bid for any prospective bidder or to
provide or ensure electronic access
to any qualified prospective bidder, and neither the City, its
agents nor PARITY® shall be
responsible for a bidder’s failure to register to bid or for any
13. failure in the proper operation of, or
have any liability for any delays or interruptions of or any
damages caused by the services of
PARITY®. The City is using the services of PARITY® solely
as a communication mechanism to
conduct the electronic bidding for the Certificates, and
PARITY® is not an agent of the City.
If any provisions of this Terms of Proposal conflict with
information provided by PARITY®, this
Terms of Proposal shall control. Further information about
PARITY®, including any fee charged,
may be obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York
10018
Customer Support: (212) 849-5000
* Preliminary; subject to change.
- ii -
DETAILS OF THE CERTIFICATES
The Certificates will be dated September 1, 2009, as the date of
original issue, and will bear
interest payable on February 1 and August 1 of each year,
commencing August 1, 2010.
Interest will be computed on the basis of a 360-day year of
twelve 30-day months.
The Certificates will mature February 1 in the years and
14. amounts* as follows:
2011 $155,000
2012 $175,000
2013 $180,000
2014 $180,000
2015 $185,000
2016 $190,000
2017 $195,000
2018 $205,000
2019 $210,000
* The City reserves the right, after proposals are opened and
prior to award, to increase or reduce
the principal amount of the Certificates or the maturity amounts
offered for sale. Any such
increase or reduction will be made in multiples of $5,000 in any
of the maturities. In the event the
principal amount of the Certificates is increased or reduced, any
premium offered or any discount
taken by the successful bidder will be increased or reduced by a
percentage equal to the
percentage by which the principal amount of the Certificates is
increased or reduced.
Proposals for the Certificates may contain a maturity schedule
providing for a combination of
serial bonds and term bonds. All term bonds shall be subject to
mandatory sinking fund
redemption at a price of par plus accrued interest to the date of
15. redemption and must conform to
the maturity schedule set forth above. In order to designate
term bonds, the proposal must
specify “Years of Term Maturities” in the spaces provided on
the Proposal Form.
BOOK ENTRY SYSTEM
The Certificates will be issued by means of a book entry system
with no physical distribution of
Certificates made to the public. The Certificates will be issued
in fully registered form and one
Certificate, representing the aggregate principal amount of the
Certificates maturing in each
year, will be registered in the name of Cede & Co. as nominee
of The Depository Trust
Company (“DTC”), New York, New York, which will act as
securities depository of the
Certificates. Individual purchases of the Certificates may be
made in the principal amount of
$5,000 or any multiple thereof of a single maturity through
book entries made on the books and
records of DTC and its participants. Principal and interest are
payable by the registrar to DTC
or its nominee as registered owner of the Certificates. Transfer
of principal and interest
payments to participants of DTC will be the responsibility of
DTC; transfer of principal and
interest payments to beneficial owners by participants will be
the responsibility of such
participants and other nominees of beneficial owners. The
purchaser, as a condition of delivery
of the Certificates, will be required to deposit the Certificates
with DTC.
16. REGISTRAR
The City will name the registrar which shall be subject to
applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2017, and on any day
thereafter, to prepay Certificates due
on or after February 1, 2018. Redemption may be in whole or
in part and if in part at the option
of the City and in such manner as the City shall determine. If
less than all Certificates of a
maturity are called for redemption, the City will notify DTC of
the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount
of each participant's interest in
such maturity to be redeemed and each participant will then
select by lot the beneficial
ownership interests in such maturity to be redeemed. All
prepayments shall be at a price of par
plus accrued interest.
- iii -
EXTRAORDINARY REDEMPTION
In the event the Certificates are designated and issued as
Taxable Qualified Build America
Bonds (Direct Pay) and only upon the occurrence of an
17. Extraordinary Event, the City may elect
to prepay the Certificates maturing February 1, 2013 through
and including February 1, 2019, in
whole or in part, at a redemption price of par plus accrued
interest, on August 1, 2012 or any
date thereafter.
An “Extraordinary Event” will have occurred if a material
adverse change has occurred to
Section 54AA or 6431 of the Code (as such Sections were added
by Section 1531 of the
Recovery Act, pertaining to “Build America Bonds”) pursuant
to which the City’s 35% direct
payment credit from the United States Treasury is reduced or
eliminated.
SECURITY AND PURPOSE
The Certificates will be general obligations of the City for
which the City will pledge its full faith
and credit and power to levy direct general ad valorem taxes.
The proceeds will be used to
finance various energy efficiency equipment for the City’s
Bielenberg Sports Center.
BIDDING PARAMETERS
Bidders may provide proposals for the Certificates specifying
interest rates for the Certificates if
issued as Tax-Exempt Certificates, or alternatively, specifying
interest rates for the Certificates if
issued as Taxable Certificates. Each bidder is encouraged, but
not required, to submit
18. proposals for both Tax-Exempt Certificates and Taxable
Certificates. To comply with the “Build
America Bond” provisions of the Internal Revenue Code of
1986, as amended (the “Code”),
each proposal for the Taxable Certificates must specify the
expected reoffering price for each
maturity of the Certificates, and (i) each actual reoffering price
paid by the public or any broker
dealer or bondhouse cannot exceed the par amount of the
maturity by more than .25%
multiplied by the number of complete years to the earlier of the
maturity date or the first optional
redemption date for the maturity of the Certificates and (ii) in
the initial offering period, no bond
may be sold by any broker dealer or bondhouse, including any
dealer who purchases an
inter-dealer transaction, for a price in excess of such limit
unless the IRS provides authoritative
guidance to the contrary. Separate proposal forms and Parity
provisions have been provided
for submitting proposals for the Certificates if to be designated
Tax-Exempt Certificates or
designated Taxable Certificates.
If the Certificates are issued as Taxable Certificates, the
Certificates will be titled “Taxable
General Obligation Equipment Certificates of Indebtedness,
Series 2009C”.
Proposals for the Tax-Exempt Certificates shall be for not less
than $1,654,900 and accrued
interest on the total principal amount of the Certificates. As
described below, proposals for the
Taxable Certificates shall be for not less than $1,654,900 or for
not more than a de minimis
premium, as described below.
19. Year
Maximum
Permitted
Price
Year
Maximum
Permitted
Price
2011 100.25% 2016 101.50%
2012 100.50% 2017 101.75%
2013 100.75% 2018 101.75%
2014 101.00% 2019 101.75%
2015 101.25%
- iv -
No proposal can be withdrawn or amended after the time set for
receiving proposals unless the
meeting of the City scheduled for award of the Certificates is
adjourned, recessed, or continued
to another date without award of the Certificates having been
made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates are not required to be in
level or ascending order;
20. however, the rate for any maturity cannot be more than 1%
lower than the highest rate of any of
the preceding maturities. Certificates of the same maturity shall
bear a single rate from the date
of the Certificates to the date of maturity. No conditional
proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be
accompanied by a Deposit in the
amount of $16,750, in the form of a certified or cashier's check,
a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to
the time proposals will be
opened. Each bidder shall be solely responsible for the timely
delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the
City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier’s check should be
made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite
300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted
Incorporated as the City’s
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
21. For credit to Springsted Incorporated, Account #635-5007954
Contemporaneously with such wire transfer, the bidder shall
send an e-mail to
[email protected], including the following information; (i)
indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii)
the issue to which it applies,
and (iv) the return wire instructions if such bidder is not
awarded the Certificates.
Any Deposit made by the successful bidder by check or wire
transfer will be delivered to the City
following the award of the Certificates. Any Deposit made by
check or wire transfer by an
unsuccessful bidder will be returned to such bidder following
City action relative to an award of
the Certificates.
If a Financial Surety Bond is used, it must be from an insurance
company licensed to issue
such a bond in the State of Minnesota and pre-approved by the
City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the
proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is
guaranteed by such Financial
Surety Bond. If the Certificates are awarded to an underwriter
using a Financial Surety Bond,
then that underwriter is required to submit its Deposit to the
City in the form of a certified or
cashier’s check or wire transfer as instructed by Springsted
Incorporated not later than
3:30 P.M., Central Time on the next business day following the
award. If such Deposit is not
received by that time, the Financial Surety Bond may be drawn
22. by the City to satisfy the Deposit
requirement.
The Deposit received from the purchaser, the amount of which
will be deducted at settlement,
will be deposited by the City and no interest will accrue to the
purchaser. In the event the
purchaser fails to comply with the accepted proposal, said
amount will be retained by the City.
- v -
AWARD
The Certificates will be awarded to the bidder offering the
lowest interest rate to be determined
on a true interest cost (TIC) basis, treating the credit available
to the City if the Certificates are
issued as Taxable Bonds constituting “Qualified Build America
Bonds” as a reduction in each
interest payment. No proposal for the Taxable Bonds may
require reoffering premiums in
excess of the maximums set for the Taxable Bonds issued as
“Qualified Build America Bonds”
as provided within the section “Bidding Parameters” herein.
The City’s computation of the
interest rate of each proposal, in accordance with customary
practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive
informalities of any proposal or of
matters relating to the receipt of proposals and award of the
Certificates, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City
23. determines to have failed to comply with
the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Certificates qualify for issuance of any policy of
municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any
such insurance policy or the
issuance of any such commitment shall be at the sole option and
expense of the purchaser of
the Certificates. Any increased costs of issuance of the
Certificates resulting from such
purchase of insurance shall be paid by the purchaser, except
that, if the City has requested and
received a rating on the Certificates from a rating agency, the
City will pay that rating fee. Any
other rating agency fees shall be the responsibility of the
purchaser.
Failure of the municipal bond insurer to issue the policy after
Certificates have been awarded to
the purchaser shall not constitute cause for failure or refusal by
the purchaser to accept delivery
on the Certificates.
CUSIP NUMBERS
If the Certificates qualify for assignment of CUSIP numbers
such numbers will be printed on the
Certificates, but neither the failure to print such numbers on any
Certificate nor any error with
respect thereto will constitute cause for failure or refusal by the
purchaser to accept delivery of
24. the Certificates. The CUSIP Service Bureau charge for the
assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the
Certificates will be delivered without cost to
the purchaser through DTC in New York, New York. Delivery
will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary
closing papers, including a
no-litigation certificate. On the date of settlement, payment for
the Certificates shall be made in
federal, or equivalent, funds that shall be received at the offices
of the City or its designee not
later than 12:00 Noon, Central Time. Unless compliance with
the terms of payment for the
Certificates has been made impossible by action of the City, or
its agents, the purchaser shall
be liable to the City for any loss suffered by the City by reason
of the purchaser's non-
compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Certificates,
the City will execute and deliver
a Continuing Disclosure Undertaking (the "Undertaking")
whereunder the City will covenant for
the benefit of the owners of the Certificates to provide certain
financial and other information
25. about the City and notices of certain occurrences to information
repositories as specified in and
required by SEC Rule 15c2-12(b)(5).
- vi -
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement
containing pertinent information
relative to the Certificates, and said Official Statement will
serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securities
and Exchange Commission.
For copies of the Official Statement or for any additional
information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the
City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101,
telephone (651) 223-3000.
The Official Statement, when further supplemented by an
addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the
Certificates, together with any other
information required by law, shall constitute a “Final Official
Statement” of the City with respect
to the Certificates, as that term is defined in Rule 15c2-12. By
awarding the Certificates to any
underwriter or underwriting syndicate submitting a proposal
therefor, the City agrees that, no
more than seven business days after the date of such award, it
shall provide without cost to the
senior managing underwriter of the syndicate to which the
26. Certificates are awarded 65 copies of
the Official Statement and the addendum or addenda described
above. The City designates the
senior managing underwriter of the syndicate to which the
Certificates are awarded as its agent
for purposes of distributing copies of the Final Official
Statement to each Participating
Underwriter. Any underwriter delivering a proposal with
respect to the Certificates agrees
thereby that if its proposal is accepted by the City (i) it shall
accept such designation and (ii) it
shall enter into a contractual relationship with all Participating
Underwriters of the Certificates for
purposes of assuring the receipt by each such Participating
Underwriter of the Final Official
Statement.
Dated July 8, 2009 BY ORDER OF THE CITY COUNCIL
/s/ Clinton P. Gridley
City Administrator
- 1 -
OFFICIAL STATEMENT
$1,675,000*
CITY OF WOODBURY, MINNESOTA
27. GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS, SERIES 2009C
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information pertaining
to the City of Woodbury, Minnesota
(the “City” or the “Issuer”) and its issuance of $1,675,000*
General Obligation Equipment
Certificates of Indebtedness, Series 2009C (the “Certificates”,
the “Obligations” or the “Issue”).
The Certificates are general obligations of the City for which
the City pledges its full faith and
credit and power to levy direct general ad valorem taxes.
Depending upon the bids received, the City may issue the
Certificates as tax-exempt general
obligations (the “Tax-Exempt Certificates”) or as taxable
general obligations (the “Taxable
Certificates”).
If the Certificates are issued as Taxable Certificates, the
Certificates will be titled “Taxable
General Obligation Equipment Certificates of Indebtedness,
Series 2009C”.
Inquiries may be directed to Mr. Tim Johnson, Finance Director,
City of Woodbury, 8301 Valley
Creek Road, Woodbury, Minnesota 55125, or by telephoning
(651) 714-3502. Inquiries may also
be directed to Springsted Incorporated, 380 Jackson Street,
28. Suite 300, St. Paul, Minnesota
55105-2887, or by telephoning (651) 223-3000. If information
of a specific legal nature is desired,
requests may be directed to Ms. Mary Dyrseth, Briggs and
Morgan, Professional Association,
Bond Counsel, 2200 West First National Bank Building, St.
Paul, Minnesota 55101 or by
telephoning (651) 808-6625.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule
15c2-12 (the “Rule”), pursuant to
the Award Resolution and the Continuing Disclosure
Undertaking (the “Undertaking”) to be
executed on behalf of the City on or before closing, the City has
and will covenant for the benefit
of holders or beneficial owners of the Certificates to provide
certain financial information and
operating data relating to the City to certain information
repositories annually, and to provide
notices of the occurrence of certain events enumerated in the
Rule to certain information
repositories or the Municipal Securities Rulemaking Board and
to any state information
depository. The specific nature of the Undertaking, as well as
the information to be contained in
the annual report or the notices of material events, is set forth
in the Undertaking in substantially
the form attached hereto as Appendix II, subject to such
modifications thereof or additions thereto
as: (i) consistent with requirements under the Rule, (ii)
29. required by the purchaser of the
Certificates from the City, and (iii) acceptable to the
Administrator and Mayor of the City.
* The City reserves the right, after proposals are opened and
prior to award, to increase or reduce the principal
amount of the Certificates offered for sale. Any such increase
or reduction will be made in multiples of $5,000 in
any of the maturities. In the event the principal amount of the
Certificates is increased or reduced, any premium
offered or any discount taken by the successful bidder will be
increased or reduced by a percentage equal to the
percentage by which the principal amount of the Certificates is
increased or reduced.
- 2 -
The City has never failed to comply in all material respects with
any previous undertakings under
the Rule to provide annual reports or notices of material events.
A failure by the City to comply
with the Undertaking will not constitute an event of default on
the Certificates (although holders or
other beneficial owners of the Certificates will have the sole
remedy of bringing an action for
specific performance). Nevertheless, such a failure must be
reported in accordance with the Rule
and must be considered by any broker, dealer or municipal
securities dealer before
recommending the purchase or sale of the Certificates in the
secondary market. Consequently,
such a failure may adversely affect the transferability and
liquidity of the Certificates and their
30. market price.
THE CERTIFICATES
General Description
The Certificates will be dated as of September 1, 2009 and will
mature on the dates and in the
amounts as set forth on the front cover of this Official
Statement. The Certificates are issued in
book entry form. Interest on the Certificates is payable on
February 1 and August 1 of each year,
commencing August 1, 2010. Interest will be payable to the
holder (initially Cede & Co.)
registered on the books of the Registrar as of the fifteenth day
of the calendar month next
preceding such interest payment date. Principal of and interest
on the Certificates will be paid as
described in the section herein entitled “Book Entry System.”
The City has named Wells Fargo
Bank, National Association, Minneapolis, Minnesota as
Registrar for the Certificates. The City will
pay for registration services.
Optional Redemption
The City may elect on February 1, 2017, and on any day
thereafter, to prepay the Certificates due
on or after February 1, 2018. Redemption may be in whole or
in part and if in part at the option of
the City and in such manner as the City shall determine. If less
31. than all the Certificates of a
maturity are called for redemption, the City will notify DTC of
the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount
of each participant’s interest in such
maturity to be redeemed and each participant will then select by
lot the beneficial ownership
interests in such maturity to be redeemed. All optional
prepayments shall be at a price of par plus
accrued interest.
Extraordinary Redemption
In the event the Certificates are designated and issued as
taxable Qualified Build America Bonds
(Direct Pay) and only upon the occurrence of an Extraordinary
Event, the City may elect to prepay
the Certificates maturing February 1, 2013 through and
including February 1, 2019, in whole or in
part, at a redemption price of par plus accrued interest, on
August 1, 2012 or any date thereafter.
An “Extraordinary Event” will have occurred if a material
adverse change has occurred to Section
54AA or 6431 of the Code (as such Sections were added by
Section 1531 of the Recovery Act,
pertaining to “Build America Bonds”) pursuant to which the
City’s 35% direct payment credit from
the United States Treasury is reduced or eliminated.
- 3 -
Book Entry System
32. The Depository Trust Company (“DTC”), New York, New York,
will act as securities depository for
the Obligations. The Obligations will be issued as fully-
registered securities registered in the
name of Cede & Co. (DTC’s partnership nominee) or such other
name as may be requested by
an authorized representative of DTC. One fully-registered
certificate will be issued for each
maturity of the Obligations, each in the aggregate principal
amount of such maturity, and will be
deposited with DTC.
DTC is a limited-purpose trust company organized under the
New York Banking Law, a “banking
organization” within the meaning of the New York Banking
Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New
York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of
Section 17A of the Securities
Exchange Act of 1934. DTC holds and provides asset servicing
for securities that its participants
(“Direct Participants”) deposit with DTC. DTC also facilitates
the post-trade settlement among
Direct Participants of sales and other securities transactions in
deposited securities through
electronic computerized book-entry transfers and pledges
between Direct Participants’ accounts.
This eliminates the need for physical movement of securities
certificates. Direct Participants
include securities brokers and dealers, banks, trust companies,
clearing corporations, and certain
other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing
Corporation (“DTCC”). DTCC, in turn, is owned by a number
33. of Direct Participants of DTC and
members of the National Securities Clearing Corporation and
Fixed Income Clearing Corporation
all of which are registered clearing agencies. DTCC is owned
by the users of its regulated
subsidiaries. Access to the DTC system is also available to
others such as securities brokers and
dealers, banks, trust companies and clearing corporations that
clear through or maintain a
custodial relationship with a Direct Participant, either directly
or indirectly (“Indirect Participants”).
The DTC Rules applicable to its Participants are on file with the
Securities and Exchange
Commission. More information about DTC can be found at
www.dtcc.com and www.dtc.org.
Purchases of Obligations under the DTC system must be made
by or through Direct Participants,
which will receive a credit for the Obligations on DTC’s
records. The ownership interest of each
actual purchaser of each Obligation (“Beneficial Owner”) is in
turn to be recorded on the Direct
and Indirect Participants’ records. Beneficial Owners will not
receive written confirmation from
DTC of their purchase. Beneficial Owners are, however,
expected to receive written
confirmations providing details of the transaction, as well as
periodic statements of their holdings,
from the Direct or Indirect Participant through which the
Beneficial Owner entered into the
transaction. Transfers of ownership interests in the Obligations
are to be accomplished by entries
made on the books of Direct and Indirect Participants acting on
behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing
their ownership interests in the
34. Obligations, except in the event that use of the book-entry
system for the Obligations is
discontinued.
To facilitate subsequent transfers, all Obligations deposited by
Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede &
Co., or such other name as may be
requested by an authorized representative of DTC. The deposit
of Obligations with DTC and their
registration in the name of Cede & Co. or such other DTC
nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Obligations;
DTC’s records reflect only the identity of the Direct
Participants to whose accounts such
Obligations are credited, which may or may not be the
Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their
holdings on behalf of their
customers.
Conveyance of notices and other communications by DTC to
Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants
and Indirect Participants to
Beneficial Owners will be governed by arrangements among
them, subject to any statutory or
regulatory requirements as may be in effect from time to time.
Beneficial Owners of Obligations
- 4 -
may wish to take certain steps to augment the transmission to
35. them of notices of significant
events with respect to the Obligations, such as redemptions,
tenders, defaults, and proposed
amendments to the Obligations documents. For example,
Beneficial Owners of the Obligations
may wish to ascertain that the nominee holding the Obligations
for their benefit has agreed to
obtain and transmit notices to Beneficial Owners. In the
alternative, Beneficial Owners may wish
to provide their names and addresses to the registrar and request
that copies of the notices be
provided directly to them.
Redemption notices are required to be sent to DTC. If less than
all of the Obligations within a
maturity are being redeemed, DTC’s practice is to determine by
lot the amount of the interest of
each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor such other DTC nominee)
will consent or vote with respect to
the Obligations unless authorized by a Direct Participant in
accordance with DTC’s procedures.
Under its usual procedures, DTC mails an Omnibus Proxy to the
Issuer or Bond Registrar as soon
as possible after the record date. The Omnibus Proxy assigns
Cede & Co.’s consenting or voting
rights to those Direct Participants to whose accounts the
Obligations are credited on the record
date (identified in a listing attached to the Omnibus Proxy).
Payment of principal, interest, and redemption premium, if any,
on the Obligations will be made to
Cede & Co. or such other nominee as may be requested by an
authorized representative of DTC.
DTC’s practice is to credit Direct Participants’ accounts, upon
36. DTC’s receipt of funds and
corresponding detail information from the Issuer or its agent on
the payable date in accordance
with their respective holdings shown on DTC’s records.
Payments by Participants to Beneficial
Owners will be governed by standing instructions and
customary practices, as is the case with
securities held for the accounts of customers in bearer form or
registered in “street name,” and
will be the responsibility of such Participant and not of DTC
(nor its nominee), the Bond Registrar,
or the Issuer, subject to any statutory or regulatory requirements
as may be in effect from time to
time. Payment of principal, interest, and redemption premium,
if any, to Cede & Co. (or such
other nominee as may be requested by an authorized
representative of DTC) is the responsibility
of the Bond Registrar, Issuer, or the Issuer's agent.
Disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement
of such payments to the
Beneficial Owners will be the responsibility of Direct and
Indirect Participants.
A Beneficial Owner shall give notice to elect to have its
Obligations purchased or tendered,
through its Participant, to Trustee, and shall effect delivery of
such Obligations by causing the
Direct Participant to transfer the Participant’s interest in the
Obligations, on DTC’s records, to
Trustee. The requirement for physical delivery of Obligations
in connection with an optional
tender or a mandatory purchase will be deemed satisfied when
the ownership rights in the
Obligations are transferred by Direct Participants on DTC’s
records and followed by a book-entry
37. credit of tendered Obligations to Trustee’s DTC account.
DTC may discontinue providing its services as securities
depository with respect to the
Obligations at any time by giving reasonable notice to the
Issuer or its agent. Under such
circumstances, in the event that a successor securities
depository is not obtained, certificates are
required to be printed and delivered.
The Issuer may decide to discontinue use of the system of book-
entry-only transfers through DTC
(or a successor securities depository). In that event, certificates
will be printed and delivered to
DTC.
The information in this section concerning DTC and DTC’s
book-entry system has been obtained
from sources that the Issuer believes to be reliable, but the
Issuer takes no responsibility for the
accuracy thereof.
- 5 -
AUTHORITY AND PURPOSE
The Certificates are being issued pursuant to Minnesota
Statutes, Chapter 475 and
Section 412.301. Minnesota Statutes specify that the City may
issue certificates of indebtedness
without referendum and not subject to a petition if the total
amount of the issue does not exceed
¼ of 1% of the market value of the taxable property in the City.
38. Based on the City’s current
market value, this represents a maximum issue size of
approximately $19,010,069. This
issuance of $1,675,000 is within that limitation and is not
subject to petition.
Proceeds of the Certificates, along with available City funds,
will be used to finance various
energy efficiency equipment for the City’s Bielenberg Sports
Center. The composition of the
Certificates is as follows:
Project Costs $2,362,142
Available City Funds (734,992)
Allowance for Discount Bidding 20,100
Costs of Issuance 27,750
Total Certificates $1,675,000
SECURITY AND FINANCING
The Certificates are general obligations of the City for which
the City pledges its full faith and
credit and power to levy direct general ad valorem taxes. The
City will make its first levy in 2009
for collection in 2010. Each year’s tax collections, if collected
in full, will be sufficient to pay 105%
of the interest payment due August 1 in the year of collection
and the principal and interest
payment due February 1 of the following year.
39. FUTURE FINANCING
The City does not expect to issue any additional long-term debt
within the next 90 days.
LITIGATION
The City is not aware of any threatened or pending litigation
affecting the validity of the
Certificates or the City’s ability to meet its financial
obligations.
LEGALITY
The Certificates are subject to approval as to certain matters by
Briggs and Morgan, Professional
Association, of Saint Paul and Minneapolis, Minnesota, as Bond
Counsel. Bond Counsel has not
participated in the preparation of this Official Statement and
will not pass upon its accuracy,
completeness, or sufficiency. Bond Counsel has not examined,
nor attempted to examine or
40. - 6 -
verify, any of the financial or statistical statements or data
contained in this Official Statement and
will express no opinion with respect thereto. A legal opinion in
substantially the form set out in
Appendix I herein will be delivered at closing.
In the event that the Certificates are issued as Tax-Exempt
Certificates, the following
sections, “Tax Exemption” and “Other Federal Tax
Considerations,” shall apply to such
Tax-Exempt Certificates.
TAX EXEMPTION
At closing Briggs and Morgan, Professional Association, Bond
Counsel, will render an opinion
that, at the time of their issuance and delivery to the original
purchaser, under present federal and
State of Minnesota laws, regulations, rulings and decisions
(which excludes any pending
legislation which may have a retroactive effect), the interest on
each Certificate is excluded from
gross income for purposes of United States income tax and is
excluded, to the same extent, in
computing both gross income and taxable net income for
purposes of State of Minnesota income
tax (other than Minnesota franchise taxes measured by income
and imposed on corporations and
financial institutions), and that interest on the Certificates is not
an item of tax preference for
41. purposes of computing the federal alternative minimum tax
imposed on individuals and
corporations or the Minnesota alternative minimum tax
applicable to individuals, estates or trusts;
provided that interest on the Certificates is subject to federal
income taxation to the extent it is
included as part of adjusted current earnings for purposes of
computing the alternative minimum
tax imposed on certain corporations. No opinion will be
expressed by Bond Counsel regarding
other federal or state tax consequences caused by the receipt or
accrual of interest on the
Certificates or arising with respect to ownership of the
Certificates. Preservation of the exclusion
of interest on the Certificates from federal gross income and
state gross and taxable net income,
however, depends upon compliance by the City with all
requirements of the Internal Revenue
Code of 1986, as amended, (the “Code”) that must be satisfied
subsequent to the issuance of the
Certificates in order that interest thereon be (or continue to be)
excluded from federal gross
income and state gross and taxable net income.
The City will covenant to comply with requirements necessary
under the Code to establish and
maintain the Certificates as tax-exempt under Section 103
thereof, including without limitation,
requirements relating to temporary periods for investments and
limitations on amounts invested at
a yield greater than the yield on the Certificates.
OTHER FEDERAL AND STATE TAX CONSIDERATIONS
42. Property and Casualty Insurance Companies
Property and casualty insurance companies are required to
reduce the amount of their loss
reserve deduction by 15% of the amount of tax-exempt interest
received or accrued during the
taxable year on certain obligations acquired after August 7,
1986, including interest on the
Certificates.
Foreign Insurance Companies
Foreign companies carrying on an insurance business in the
United States are subject to a tax on
income which is effectively connected with their conduct of any
trade or business in the United
States, including “net investment income.” Net investment
income includes tax-exempt interest
such as interest on the Certificates.
- 7 -
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to
30% of the “dividend equivalent
amount” for the taxable year. The “dividend equivalent
amount” is the foreign corporation's
“effectively connected earnings and profits” adjusted for
increase or decrease in “U.S. net equity.”
A branch's earnings and profits may include tax-exempt
43. municipal bond interest, such as interest
on the Certificates.
Passive Investment Income of S Corporations
Passive investment income, including interest on the
Certificates, may be subject to federal
income taxation under Section 1375 of the Code for an S
corporation that has Subchapter C
earnings and profits at the close of the taxable year if more than
25% of the gross receipts of such
S corporation is passive investment income.
Financial Institutions
For federal income tax purposes, financial institutions are
unable to deduct any portion of the
interest expense allocable to the ownership of certain tax-
exempt obligations acquired after
August 7, 1986, including the Certificates.
General
The preceding is not a comprehensive list of all federal or State
tax consequences which may
arise from the receipt or accrual of interest on the Certificates.
The receipt or accrual of interest
on the Certificates may otherwise affect the federal income tax
(or Minnesota income tax or
franchise tax) liability of the recipient based on the particular
taxes to which the recipient is
subject and the particular tax status of other items of income or
deductions. All prospective
44. purchasers of the Certificates are advised to consult their own
tax advisors as to the tax
consequences of, or tax considerations for, purchasing or
holding the Certificates.
Bank-Qualified Tax-Exempt Obligations
The City will designate the Certificates as “qualified tax-
exempt obligations” for purposes of
Section 265(b)(3), of the Internal Revenue Code of 1986, as
amended, relating to the ability of
financial institutions to deduct from income for federal income
tax purposes, interest expense that
is allocable to carrying and acquiring tax-exempt obligations.
In the event that the Certificates are issued as Taxable
Certificates, this section, “Taxability
of Interest,” shall apply to such Taxable Certificates.
TAXABILITY OF INTEREST
The interest to be paid on the Taxable Certificates is includable
in the income of the recipient for
purposes of the United States and State of Minnesota income
taxation.
- 8 -
RATING
45. An application for a rating of the Certificates has been made to
Standard & Poor’s Ratings
Services (“S&P”), 55 Water Street, New York, New York. If a
rating is assigned, it will reflect only
the opinion of S&P. Any explanation of the significance of the
rating may be obtained only from
S&P.
There is no assurance that a rating, if assigned, will continue
for any given period of time, or that
such rating will not be revised or withdrawn if, in the judgment
of S&P, circumstances so warrant.
A revision or withdrawal of the rating may have an adverse
effect on the market price of the
Certificates.
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, Public Sector
Advisors, of St. Paul, Minnesota, as
financial advisor (the “Financial Advisor”) in connection with
the issuance of the Certificates. In
preparing the Official Statement, the Financial Advisor has
relied upon governmental officials, and
other sources, who have access to relevant data to provide
accurate information for the Official
Statement, and the Financial Advisor has not been engaged, nor
has it undertaken, to
independently verify the accuracy of such information. The
Financial Advisor is not a public
46. accounting firm and has not been engaged by the City to
compile, review, examine or audit any
information in the Official Statement in accordance with
accounting standards. The Financial
Advisor is an independent advisory firm and is not engaged in
the business of underwriting,
trading or distributing municipal securities or other public
securities and therefore will not
participate in the underwriting of the Certificates.
CERTIFICATION
The City has authorized the distribution of this Official
Statement for use in connection with the
initial sale of the Certificates. As of the date of the settlement
of the Certificates, the Purchaser
will be furnished with a certificate signed by the appropriate
officers of the City. The certificate will
state that as of the date of the Official Statement, the Official
Statement did not and does not as of
the date of the certificate contain any untrue statement of
material fact or omit to state a material
fact necessary in order to make the statements made therein, in
light of the circumstances under
which they were made, not misleading.
- 9 -
CITY PROPERTY VALUES
47. 2008 Indicated Market Value of Taxable Property:
$8,211,692,765*
* Indicated market value is calculated by dividing the City’s
taxable market value of $7,604,027,500 by
the 2007 sales ratio of 92.6% for the City as determined by the
State Department of Revenue.
(2008 sales ratio is not yet available.)
2008 Taxable Net Tax Capacity: $86,714,708
Real Estate $87,562,327
Personal Property 764,369
2008 Net Tax Capacity $88,326,696
Less: Contribution to Fiscal Disparities (7,998,630)
Captured Tax Increment Tax Capacity (178,490)
Plus: Distribution from Fiscal Disparities 6,565,132
2008 Taxable Net Tax Capacity $86,714,708
2008 Taxable Net Tax Capacity by Class of Property
Residential Homestead $55,613,836 64.1%
Commercial/Industrial and Public Utility* 19,728,764 22.7
Residential Non-Homestead 9,838,243 11.4
Agricultural 769,496 0.9
Personal Property 764,369 0.9
48. Total $86,714,708 100.0%
* Reflects adjustments for fiscal disparities and captured tax
increment tax capacity.
Trend of Values
Indicated Taxable Taxable Net
Market Value(a) Market Value Tax Capacity(b)
2008 $8,211,692,765 $7,604,027,500 $86,714,708
2007 7,983,937,041 7,393,125,700 84,031,127
2006 7,571,997,717 6,966,237,900 78,425,417
2005 7,022,453,206 6,242,960,900 69,087,773
2004 6,344,170,746 5,443,298,500 60,489,105
(a) Indicated market value is calculated by dividing the City’s
taxable market value by the sales ratio
determined for the City each year by the State Department of
Revenue.
(b) See Appendix III for explanation of taxable net tax capacity
and the Minnesota property tax system.
- 10 -
Ten of the Largest Taxpayers in the City
49. 2008 Net
Taxpayer Type of Property Tax Capacity
Woodbury Lakes Retail LLC Retail Shopping Center $1,763,084
Tamarack Village Retail Shopping Center 1,630,156
State Farm Mutual Office Complex 796,236
Woodbury Village Shop Corp. Retail Shopping Center 791,132
Xcel Energy Utilities 725,142
Grand Reserve Apartments Corp. Apartments 565,464
I&G St. Paul LLC Apartments 452,268
Hartford Life & Annuity Insurance Co. Insurance 406,138
Allina Health System Medical 314,168
Rivertown Trading Co. Commercial 304,338
Total $7,748,126*
* Represents 8.9% of the City’s 2008 taxable net tax capacity.
CITY INDEBTEDNESS
Legal Debt Margin*
Debt Limit (3% of Taxable Market Value) $228,120,825
Less: Outstanding Direct Debt Subject to Limitation
(28,725,000)
Legal Debt Margin at June 30, 2009 $199,395,825
* The legal debt margin is referred to statutorily as the “Net
50. Debt Limit” and permits debt to be offset by
debt service funds and current revenues which are applicable to
the payment of debt in the current
fiscal year; however, to conservatively state the limit no such
offset has been used to increase the legal
debt margin as shown above.
General Obligation Debt Supported Solely by Taxes*
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 6-30-09
12-1-03 $5,335,000 Public Works Addition 2-1-2019 $
3,850,000
10-1-04 3,725,000 Street Reconstruction 2-1-2020 2,940,000
8-1-05 3,575,000 Open Space Refunding 2-1-2019 3,090,000
2-1-06 9,000,000 Parks and Open Space 2-1-2027 8,400,000
12-1-07 3,780,000 Park Refunding 2-1-2015 3,315,000
5-1-09 5,455,000 Fire Stations, Public Safety Building 2-1-
2020 5,455,000
9-1-09 1,675,000 Equipment Certificates (this Issue) 2-1-2019
1,675,000
Total $28,725,000
* These issues are subject to the statutory debt limit.
- 11 -
General Obligation Debt Supported Primarily by Special
Assessments
51. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 6-30-09
6-1-01 $13,049,400 TRLF Loan 8-20-2017 $ 6,224,114*
12-1-02 2,815,000 Local Improvements 2-1-2013 1,490,000
10-1-03 2,125,000 Local Improvements 2-1-2019 1,115,000
5-15-05 3,235,000 Local Improvements 2-1-2019 1,200,000
1-1-06 11,250,000 Local Improvements 2-1-2021 7,930,000
12-1-06 4,095,000 Local Improvements 2-1-2022 2,495,000
12-1-07 2,290,000 Local Improvements 2-1-2023 2,030,000
Total $22,484,114
* This loan is paid from tax abatement and special assessment
revenues.
General Obligation Debt Supported by Tax Increment*
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 6-30-09
5-1-02 $1,810,000 Tax Increment 3-1-2010 $ 70,000
5-1-09 1,450,000 Tax Increment Refunding 3-1-2022
1,450,000
Total $1,520,000
* The City expects to repay a portion of these issues from rental
payments received pursuant to a lease
agreement with Independent School District No. 833 (South
Washington County).
52. General Obligation Debt Supported Primarily by Revenue
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 6-30-09
12-1-03 $1,255,000 Storm Sewer Revenue Refunding 2-1-2011
$ 435,000
8-1-05 1,545,000 Ice Arena Refunding 4-1-2019 1,315,000
Total $1,750,000
General Obligation Debt Supported by Municipal State Aid
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 6-30-09
6-1-01 $4,589,700 TRLF Loan 8-20-2015 $2,365,000
- 12 -
Lease Obligations
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 6-30-09
8-15-05 $4,470,000 Golf Course Refunding 2-1-2026
$3,890,000
53. NOTE: This obligation is subject to annual appropriation by the
City Council and the full faith and credit
and ad valorem taxing powers of the City are not pledged for
payment.
Annual Calendar-Year Debt Service Payments Including This
Issue
G.O. Debt Supported
G.O. Debt Supported Primarily by
Solely by Taxes Special Assessments
Principal Principal
Year Principal & Interest(a) Principal & Interest
2009 (at 6-30) (Paid) $ 428,204.39 $ 1,186,114 $ 1,587,266.60
2010 $ 2,105,000 3,166,468.35 4,108,000 4,824,838.51
2011 2,255,000 3,214,095.03 3,370,000 3,959,947.51
2012 2,385,000 3,266,416.28 1,941,000 2,431,257.51
2013 2,455,000 3,253,793.78 2,693,000 3,098,896.76
2014 2,535,000 3,245,892.53 1,610,000 1,937,770.76
2015 2,645,000 3,261,657.53 1,576,000 1,846,948.26
2016 2,100,000 2,628,843.78 1,339,000 1,554,020.01
2017 2,175,000 2,622,866.28 1,126,000 1,294,320.76
2018 2,270,000 2,631,601.28 925,000 1,051,322.51
2019 2,355,000 2,624,931.28 885,000 974,854.38
2020 1,380,000 1,578,006.28 720,000 776,762.50
2021 505,000 667,678.15 710,000 736,837.50
2022 530,000 671,331.27 195,000 202,971.25
2023 550,000 668,712.52 100,000 102,000.00
2024 575,000 669,806.27
2025 605,000 674,731.27
2026 635,000 677,984.39
2027 665,000 679,546.88
54. Total $28,725,000(b) $36,632,567.54 $22,484,114(c)
$26,380,014.82
(a) Includes the Certificates at an assumed average annual
interest rate of 2.90%.
(b) 81.0% of this debt will be retired within ten years.
(c) 88.4% of this debt will be retired within ten years.
- 13 -
Annual Calendar-Year Debt Service Payments Including This
Issue (continued)
G.O. Debt Supported by G.O. Debt Supported
Tax Increment Primarily by Revenue
Principal Principal
Year Principal & Interest Principal & Interest
2009 (at 6-30) (Paid) $ 33,851.25 (Paid) $ 30,860.63
2010 $ 70,000 123,013.75 $ 330,000 386,681.26
2011 95,000 132,375.00 350,000 396,035.01
2012 100,000 135,425.00 135,000 173,133.76
2013 110,000 143,325.00 135,000 168,476.25
2014 110,000 141,125.00 125,000 153,863.76
2015 110,000 138,787.50 125,000 149,301.26
2016 125,000 150,987.50 130,000 149,486.26
2017 130,000 152,637.50 135,000 149,317.51
2018 120,000 139,200.00 140,000 148,816.26
2019 135,000 150,525.00 145,000 147,990.63
2020 135,000 146,475.00
2021 140,000 147,175.00
2022 140,000 142,450.00
55. Total $1,520,000(a) $1,877,352.50 $1,750,000 $2,053,962.59
G.O. Debt Supported
by Municipal State Aid Lease Obligations
Principal Principal
Year Principal & Interest Principal & Interest
2009 (at 6-30) $ 610,000 $ 641,809.25 (Paid) $ 86,252.51
2010 630,000 677,209.50 $ 160,000 329,585.02
2011 205,000 235,262.50 165,000 328,365.02
2012 215,000 239,748.00 170,000 326,665.02
2013 225,000 243,964.50 180,000 329,327.52
2014 235,000 247,912.00 185,000 326,343.14
2015 245,000 251,590.50 195,000 328,030.63
2016 205,000 329,152.50
2017 215,000 329,702.50
2018 225,000 329,802.50
2019 235,000 329,452.50
2020 245,000 328,652.50
2021 255,000 327,402.50
2022 265,000 325,702.50
2023 275,000 323,415.00
2024 290,000 325,420.00
2025 305,000 326,735.00
2026 320,000 327,360.00
Total $2,365,000 $2,537,496.25 $3,890,000(c) $5,657,366.36
(a) 72.7% of this debt will be retired in ten years.
(b) 49.7% of this debt will be retired in ten years.
- 14 -
56. Summary of Direct Debt Including This Issue
Gross Less: Debt Net
Debt Service Funds(a) Direct Debt
G.O. Debt Supported Solely by Taxes $28,725,000 $ (652,440)
$28,072,560
G.O. Debt Supported Primarily by
Special Assessments 22,484,114 (4,660,531) 17,823,583
G.O. Debt Supported by Tax Increment 1,520,000 (17,866)
1,502,134
G.O. Debt Supported Primarily by Revenue 1,750,000 (b)
1,750,000
G.O. Debt Supported by Municipal
State Aid 2,365,000 -0- 2,365,000
Lease Obligations 3,890,000 (c) 3,890,000
(a) Debt service funds as of June 30, 2009 and include money to
pay both principal and interest.
(b) Funds are transferred from the Enterprise Funds as needed
to pay debt service.
(c) Lease purchase obligations are subject to annual
appropriation by the City.
Indirect General Obligation Debt
Debt Applicable to
2008 Taxable G.O. Debt Tax Capacity in City
Taxing Unit Net Tax Capacity As of 6-30-09(a) Percent Amount
Washington County $ 300,967,430 $117,060,000 28.8% $
33,713,280
57. ISD No. 622 (No. St. Paul-
Maplewood-Oakdale) 46,525,233 159,780,000 22.5
35,950,500
ISD No. 833 (South
Washington County) 108,814,959 292,330,000 59.8
174,813,340
ISD No. 834 (Stillwater) 94,222,173 71,755,000 12.8 9,184,640
Metropolitan Council 3,646,549,630 17,625,000(b) 2.4 423,000
Metropolitan Transit District 3,094,244,409 167,225,000(c) 2.8
4,682,300
Total $258,767,060
(a) Excludes general obligation debt supported by revenues,
revenue debt and tax and aid anticipation
certificates and includes lease obligations and certificates of
participation.
(b) Excludes general obligation debt supported by sanitary
sewer revenues, 911 user fees and housing
rental payments. Includes certificates of participation.
(c) Includes lease revenue bonds, subject to annual
appropriation, issued by the Bloomington Port
Authority for constructing and equipping a transit station and
parking ramp.
Debt Ratios*
G.O. Net G.O. Indirect &
Direct Debt Net Direct Debt
58. To 2008 Indicated Market Value ($8,211,692,765) 0.62% 3.78%
Per Capita (59,048 - City’s 2008 Estimate) $869 $5,251
* Excludes general obligation debt supported by revenues and
municipal state aid. Includes lease
obligations.
- 15 -
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates for a City Resident in Independent School
District No. 833
2008/09
For
2004/05 2005/06 2006/07 2007/08 Total Debt Only
Washington County 28.599% 26.968% 25.673% 25.936%
26.371% 2.973%
City of Woodbury(a) 30.124 29.018 28.122 28.169 28.474 0.922
ISD No. 833 (South
Washington Co.)(b) 29.182 27.460 31.101 29.841 30.708
20.242
Special Districts(c) 5.495 5.023 4.093 4.306 4.268 1.466
Total 93.400% 88.469% 88.989% 88.252% 89.821% 25.603%
(a) The City also has a 2008/09 tax rate of 0.0.2249% spread on
the market value of property in support of
debt service.
59. (b) Independent School District No. 833 (South Washington
County) also has a 2008/09 tax rate of
0.19232% spread on the market value of property in support of
an excess operating levy.
(c) Special districts include Metropolitan Council, Transit
District, Regional Rail Authority, Metropolitan
Mosquito Control, South Washington Watershed District, the
Washington County Housing and
Redevelopment Authority, and the Woodbury Economic
Development Authority.
NOTE: Property taxes are determined by multiplying the net tax
capacity by the tax capacity rate, plus
multiplying the referendum market value by the market value
rate. This table does not include the
market value based rates. See Appendix III.
Tax Levies and Collections
Collected During Collected and/or Abated
Net Collection Year As of 12-31-08
Levy/Collect Levy* Amount Percent Amount Percent
2008/09 $25,673,758 (In Process of Collection)
2007/08 24,676,719 $24,035,891 97.4% $24,047,546 97.5%
2006/07 23,112,275 22,697,703 98.2 22,970,298 99.4
60. 2005/06 20,420,504 20,113,749 98.5 20,372,379 99.8
2004/05 18,508,177 18,317,635 99.0 18,494,830 99.9
* The net levy excludes state aid for property tax relief and
fiscal disparities, if applicable. The net levy is
the basis for computing tax capacity rates. See Appendix III.
- 16 -
FUNDS ON HAND
As of June 30, 2009
Fund Cash and Investments
General $ 2,778,897
Special Revenue 3,015,993
Debt Service Supported by:
Tax Levies 652,440
GO Note - PFA 2,128,843
Special Assessments 2,531,688
Tax Increment 17,866
Capital Projects 55,903,739
Enterprise 12,017,662
Agency 20,110,173
EDA 942,353
HRA 1,361,639
Revolving Loan Fund 771,565
Total $102,232,858
61. CITY INVESTMENTS
The City’s $102,232,858 investment holdings as of June 30,
2009 were made up of U.S.
government agency securities (68%), negotiable certificates of
deposit (23%), and mutual
funds/demand deposits (9%). The City’s policy is to hold
investments to maturity. Of the total
portfolio, 20% will mature within one year, 30% will mature
within one to three years, and 31% will
mature within three to five years. The balance of 19% will
mature in more than five years.
GENERAL INFORMATION CONCERNING THE CITY
The City of Woodbury is an eastern suburb of the City of Saint
Paul and is part of the seven-
county Minneapolis/Saint Paul Metropolitan Area. The City’s
area of 23,040 acres (36 square
miles) is situated entirely within Washington County. The 2008
population is estimated by the
City to be 59,048, a 27.1% increase over the 2000 U.S. Census
figure of 46,463.
Population Trend
Population Percent
Population Increase Increase
62. 2008 59,048 12,585 27.1%
2000 46,463 26,388 131.4
1990 20,075 9,778 95.0
1980 10,297 4,113 66.5
1970 6,184 3,170 105.2
1960 3,014 -- --
Source: All figures except 2008 figures are the U.S. Census
Bureau estimates. The 2008 figure is an
estimate from the City’s Community Development Department.
- 17 -
Major transportation routes in and near the City provide access
for commuters coming into
the City, as well as for City residents going to primary
employment centers outside of the
City, such as the 3M Company in Maplewood, retail centers,
offices and the State Capitol
complex in Saint Paul. Interstate Highway I-94 forms the
northern boundary of the City, with
beltline Highways I-694 and I-494 intersecting with I-94 in the
northwest corner of the City.
Most of the City’s largest employers, listed below, are located
in the northwest area near the
major freeways.
Major Employers
63. Approximate
Number
Employer Product/Service of Employees
Independent School District No. 833
(South Washington County) Public education 2,162
Woodwinds Health Campus Hospital and medical offices 857
The Hartford Insurance 800
Data Recognition Corporation Educational skills testing 500
Fidelity National Information Systems* Integrated payment
systems 350
Assurant, Inc. Insurance 330
Woodbury Health Care Center Nursing home 280
City of Woodbury City government 269
Allina Medical Clinic Health care 225
EcoWater Systems Water conditioning 220
Long Term Care Group, Inc. Medical insurance 212
Dean Foods Dairy products 200
Harvey Vogel Manufacturing Co. Metal stamping 140
Home Depot Home improvement center 134
Medical Concepts Development Surgical appliances and
supplies 123
New Life Academy Private K-12 education 110
* Formerly E-Funds.
Source: Telephone survey of individual employers, July 2009.
One of the largest employers of City residents is the 3M
Company in Maplewood, which employs
approximately 11,000 in the State of Minnesota. The complex
is the world headquarters for 3M
and includes administrative offices as well as research and
manufacturing facilities. The 420-acre
complex is located north of I-94 and approximately 10 miles
from Woodbury. 3M also has a
64. number of additional buildings in Woodbury.
Labor Force Data
June 2009 June 2008
Civilian Unemployment Civilian Unemployment
Labor Force Rate Labor Force Rate
Washington County 128,924 8.0% 129,481 4.9%
Minneapolis/Saint Paul MSA 1,851,516 8.5 1,853,738 5.1
State of Minnesota 2,987,455 8.4 2,958,305 5.3
Source: Minnesota Department of Employment and Economic
Development. 2009 data are preliminary.
- 18 -
Commercial/Industrial Development
There are currently three industrial parks in the City. The OPUS
Corporation developed the
150-acre Wooddale Center Industrial Park. The final 20-acre
tract in this park was recently
developed as an 80,000 square-foot warehouse distribution
facility for Llewellyn Worldwide. The
70-acre Carver Lake Office Industrial Park is also fully
developed. The third industrial park area is
the Woodbury Commerce Center, located in the southwest
quadrant of I-94 and County Road 19.
The last few properties in the Woodbury Commerce Center area
have been approved for
development. Crossroads Commerce Center has proposed six
buildings for a total of 212,000
65. square feet, with five of these buildings already completed.
Woodbury Commerce Center is also
home to Target.Direct (formerly Rivertown Trading), a 300,000
square-foot mail-order catalog
distribution center. Centerpoint Marketing (formerly Heritage
Communications), a 172,800
square-foot manufacturing/warehouse facility, opened in 1996.
They manufacture displays for
businesses and also store them on site. CSM Corporation owns
a 65,000 square-foot facility in
this area that they lease to Qwest, and Data Recognition
Corporation completed a 25,000 square-
foot facility in 2002. Data Recognition Corporation specializes
in the scoring of basic skills tests
for multiple levels of educational institutions across the nation.
They employ approximately 500
people on a seasonal/part-time basis. Two new multi-tenant
office and warehouse facilities were
completed in 2005 in the Woodbury Commerce Center.
Commerce Business Park is a 37,000
square-foot multi-tenant building and Woodbury Business
Center is a 58,000 square-foot
multi-tenant building. Rivertown Commercial Commons, a
54,000 square-foot office/warehouse
condominium, was constructed in 2005.
Woodbury has two strategic areas that are guided for business
park development. The
completion of the Tamarack Interchange at I-494 and Tamarack
Road gives great access to over
200 acres of prime development land. The area near the
interchange is zoned for the Business
Campus District and allows office, industrial and warehouse
uses. The Tamarack Hills
development is located in the northeast corner of Tamarack
Road and Bielenberg Drive. The
66. development includes twelve buildings with 158,500 square feet
of office space, 61,200 square
feet of retail space, and 11,900 square feet of warehouse space.
Nine of the buildings in the
development are complete. A second phase of the development
(Tamarack Hills II) includes a
five-story, 150-room Sheraton Hotel that opened in July 2008
and a 9,600 square-foot Ciao Bella
restaurant that is currently under construction and is scheduled
for completion in 2009. A 30,000
square-foot office building in the Tamarack Hills II
development was completed in early 2009.
The development includes future plans for an additional 70,000
square feet of retail development
and an additional 70,000 square feet of office development.
The Northeast Business Park contains approximately 580 acres
of land near I-94 and
State Highway 95. The property is also zoned to accommodate
commercial and industrial
development in accordance with the City's 2020 Comprehensive
Plan, which identifies this
quadrant as a major employment center. The City has recently
completed an environmental
review (Alternative Urban Area-wide Review) for this area,
which will be used to determine the
ultimate land uses for this area. The area is primarily
controlled by one landowner/developer and
is being marketed as Red Rock Territory, a large scale business
park integrating sustainable
principles throughout the development. A concept planned unit
development was submitted for
review in early 2009.
State Farm Insurance Company built a 470,000 square-foot
office complex in 1996. The complex
67. was home to the State Farm regional headquarters and housed
one of their national call centers;
however, the company moved these operations to Lincoln,
Nebraska in March 2006. The building
is for sale, and is being actively marketed. In 2001, the
Hartford Life Insurance Company
acquired the Fortis building located at the intersection of I-94
and I-494, as well as portions of
their business. They employ approximately 800 people in
Woodbury. Assurant, Inc. (formerly
Fortis), which has been in Woodbury since 1978, continues to
maintain a strong presence in the
City with approximately 330 employees. They have leased the
62,000 square-foot Gateway
Corporate Center, which the Opus Corporation completed in the
summer of 2000.
- 19 -
Other recent office construction projects include the 140,000
square-foot Hudson Road
Technology Center, which was built by Liberty Property Trust.
Fidelity National Information
Systems (formerly E-Funds) currently is the primary tenant,
employing approximately 350 people.
Long Term Care Group is another major tenant, employing
approximately 212 employees. The
44,000 square-foot multi-tenant Currell Center, near Bielenberg
Drive and Valley Creek Road,
was built in 1998. Valley Crossing is a neighborhood retail and
professional building project in the
northeast corner of Valley Creek Road and County Road
19/Woodbury Drive. This 33,000
square-foot project was completed in 1998. LeClair Insurance
68. built a new 12,000 square-foot
office building on Upper Afton Road in 1998. The Woodhill
Office Park has three office buildings
totaling 27,750 square feet on Woodlane Drive. Another office-
condo project is also under
construction along Weir Drive and I-494, just south of
Tamarack Road. This proposal will provide
sixteen office-condo units totaling 45,000 square feet. Four of
the buildings (8 units) have been
completed.
The City has two substantial office projects that recently
completed construction. The first project
is the City Center Professional Building at Radio Drive and
Donegal Drive. MSP Commercial
developed this 54,582 square-foot, three-story office building.
The second project involves the
Minnesota School of Business/Globe University, which
constructed a new corporate headquarters
and educational facility on Hudson Road, just west of Radio
Drive. The campus development will
ultimately include a three-story 68,581 square-foot corporate
office and education facility as
Phase 1 and includes future office phases totaling 52,255 square
feet.
The healthcare industry has a stronger presence in Woodbury
with the completion of Health
East’s Woodwinds Medical Campus. The complex consists of
an 80,000 square-foot medical
office building and an 180,000 square-foot, 86-bed hospital,
which opened its doors in
August 2000. The hospital completed an addition of eight beds
to the facility in 2007. The 35,000
square-foot Woodbury Medical Arts building was completed in
May 2002 and is located near the
69. hospital at Lake Road and I-494. Kraus Anderson developed a
mixed-use office complex in the
same vicinity. The first phase includes a 47,000 square-foot
medical office building and a 76-unit
senior cooperative building.
Given the medical nature of the development in the I-494/Lake
Road area, the City created a
Medical Campus District in 2008 in order to encourage the
development of additional medically-
related uses in this corridor. Frauenshuh Companies
Development completed construction of a
medical specialty center called CornerStone Medical Specialty
Center at Lake Road and I-494.
The facility is currently two stories and 55,493 square feet, but
may add a third story, bringing the
total size of the facility to 76,643 square feet. The CornerStone
building is home to Metro
Urology. Kraus Anderson is currently constructing a 38,700
square-foot medical office building
(Woodlake Medical) at Lake Road and Woodwinds Drive, which
will be home to Summit
Orthopedics once it opens in 2009.
Woodbury Village is a 176-acre master-planned commercial,
retail and high-density residential
project, with over 450,000 square feet of retail space completed.
The project includes Target
Greatland, Kohl's Department Store, Rainbow Foods,
Walgreens, a Barnes and Noble bookstore,
and a theatre complex. Peripheral development includes a TCF
bank and a 350 seat Old Country
Buffet restaurant. The Shoppes of Woodbury Village opened in
2001, with several specialty retail
shops encompassing a total of 24,000 square feet. The Remada
Company has built the Classic
70. at the Preserve Apartments, which consists of six luxury
apartment buildings, the final two of
which are under constructions, with a total of 408 units. 282 of
these units are completed and
occupied. The area also includes a multi-screen theatre, which
also serves as a park and ride lot
for the Metropolitan Transit bus service to downtown
Minneapolis.
Tamarack Village is a 750,000 square-foot power center at the
intersection of I-94 and County
Road 13/Radio Drive. Primary tenants include Cub Foods, JC
Penney, Joanne's Etc., Home
Depot, PetsMart, Babies R Us, Bed Bath & Beyond, and Dick’s
Sporting Goods. Peripheral
development includes Champps, CVS Pharmacy, and Borders
Books and Cafe.
- 20 -
The Tamarack Business Campus is a mixed-use office and retail
center near Tamarack Village.
Development includes Health Partners clinic (32,100 square
feet), Spalon Montage (a 12,600
square-foot day spa), Woodbury Dental Specialist (12,500
square feet), Knowledge Beginnings
Daycare (13,400 square feet), Audio King (35,000 square feet),
St. Paul Postal Credit Union
(23,700 square feet), and an 11,000 square-foot multi-tenant
office building. The business park
was completed in 2001 with the addition of two new multi-
tenant office buildings. The Radio Drive
Professional Building is 27,000 square feet and the Seasons
Office Building is 23,000 square
71. feet. In total, this business park consists of over 170,000 square
feet of office and retail space.
The new 400,000 square-foot retail “lifestyle center” called
Woodbury Lakes opened in
September 2005 to large crowds. The shopping center features
several in-line retail stores such
as The Gap, Christopher & Banks, J. Jill, Archiver’s, Coldwater
Creek, Ann Taylor Loft, Banana
Republic, Talbot’s, Victoria’s Secret, Jos A. Bank, American
Eagle, The Buckle, Express and
Limited Too. Larger anchor tenants include Linen’s & Things,
Michael’s, DSW, North American
Bank and Ethan Allen Furniture. There are several sit-down
restaurants in this development,
including a Boston’s Restaurant and Melting Pot restaurant. A
Trader Joe’s specialty grocery
store opened in October 2007 as a free standing building in this
development.
The Woodbury Commons (formerly the Prime Outlet Mall) is
located in the southeast quadrant of
I-94 and County Road 19/Woodbury Drive. This shopping area
includes a recently renovated
130,000 square-foot multi-tenant shopping center and a 164,000
square-foot Wal-Mart, which
opened in September 2005. A 104-room Extended Stay America
is located adjacent to the mall.
To the east of Woodbury Commons, a 65,000 square-foot
Gander Mountain was constructed
along I-94. There are additional retail pads open for
development to the south of Gander
Mountain along Hudson Road. Goodwill Stores recently
obtained approval to construct a 20,600
square-foot retail store in this location.
72. Woodbury Marketplace is a shopping center located in the
southwest quadrant of I-94 and
Woodbury Drive. The center is anchored by a 142,071 square-
foot Sam's Club with a gas station,
which opened in August of 2002. It also includes several
restaurants including Arby’s, Chili’s,
Chipolte, and Caribou Coffee, a multi-tenant retail building, and
M&I Bank. Sportsman’s
Warehouse opened in mid 2006 and Staples opened in early
2009. The total size of the
development is approximately 275,000 square feet.
The City also received an application for another development
in this area called Commerce Hill,
which will include approximately 300,000 square feet of retail
and office development, including a
190,000 square-foot Super Target. The project was approved in
late 2008; however, a
construction date has not been determined.
The City Walk development is located in the southeast quadrant
of Hudson Road and County
Road 19/Woodbury Drive. It is a mixed-use development that,
when completed, will include a
combination of over 500 residential rental apartment units as
well as approximately
200,000 square feet of office, retail and restaurant space.
Primrose School recently completed an
11,000 square-foot daycare facility as part of this development.
The project developer is LeCesse
Development Corp. The plan incorporates new urbanism
concepts such as pedestrian friendly
streetscapes, interconnected trail systems to the overall park
system, vertical mixed land uses,
transit friendly features, and coordinated architectural designs.
The first phases of the residential
73. and commercial units have recently opened.
In addition to these regional shopping centers, there are several
community shopping centers in
Woodbury. Valley Creek Mall is a 95,000 square-foot center
with approximately 20 tenants.
Woodlane Center is primarily a neighborhood service center of
approximately 20,000 square feet.
The Seasons Market is a 29,000 square-foot neighborhood
shopping center. Woodgate Center is
an 18,000 square-foot retail center and Royal Center is a 9,000
square-foot retail service center.
The City has seen renovations to some of these older retail areas
in recent years, including new
facades, building additions, and parking lot upgrades.
- 21 -
There are several newer retail centers developed by Wellington
Management, like the City Centre
Shoppes, which encompass approximately 50,000 square feet
near the intersection of Valley
Creek Road and Radio Drive. Reliance City Centre East
includes a 15,000 square-foot
Walgreens and a 10,000 square-foot Davanni's. Allina Health
System constructed an
80,000 square-foot Woodbury Ambulatory Care Centre in the
southeast quadrant of the
Woodbury City Centre. Development in this quadrant also
includes a 55,155 square-foot upscale
grocery store, Kowalski's Market. Stonecrest (formerly
SummerHouse of Woodbury) recently
completed an addition to their senior housing facility, which
now includes 59 assisted living units
74. and 87 independent units. The City Centre area was completed
in 2002 with the addition of
Central Park and an 80,000 square-foot indoor park and library,
which is a joint project of the City
and Washington County.
The Seasons Commons is a 20-acre mixed-use development,
which includes office, restaurant
and retail facilities. Development includes the Brickwell
Community Bank (6,700 square feet), an
Edina Realty office (8,000 square feet), Tires Plus,
TGIFriday’s, Sunsets Restaurant, and Lifetime
Fitness (73,000 square feet). The Signorelli Addition and
Carver Lake Center are smaller
convenience commercial centers that were built in 1996 and
1997, respectively.
Eagle Valley Marketplace is a 73,000 square-foot shopping
center, which hosts six neighborhood
commercial buildings. A gas station/convenience store and
CVS Pharmacy are located within the
marketplace, along with five other retail buildings, including a
bank.
Commercial construction activity in 2008 was steady in
Woodbury with 131 total commercial
building permits issued for new construction, additions and
alterations. This constituted
674,538 square feet of construction with an estimated value of
$40,538,000.
New commercial construction in 2008 included seven
commercial building permits bringing
300,943 square feet of new construction with an estimated value
of $26,335,000. The table
below lists the new commercial/industrial projects approved
75. with building permits issued
January 1, 2008 through December 31, 2008.
Project Name Size (square feet) Value
Tamarack Hills Building E2 30,000 $ 2,302,000
Ciao Bella 9,682 2,383,000
CVS Pharmacy (Tamarack Village) 14,985 1,200,000
Summit Orthopedics 38,716 4,300,000
Staples 24,800 1,650,000
Classic at the Preserve 91,380 7,250,000
Classic at the Preserve 91,380 7,250,000
Total
300,943
$26,335,000
In addition to the above noted commercial construction,
Independent School District No. 833
(South Washington County) commenced construction of a brand
new high school facility in
Woodbury called East Ridge High School. The new high school
will be the third high school in the
district. The school will be 350,000 square feet and will also
include athletic fields and a football
stadium. It is set to open for classes in the fall of 2009. The
facility is located next to the City’s
Bielenberg Sports Center, which the City is proposing to expand
by adding athletic fields. To
efficiently utilize the site, the school district and the City
76. jointly planned development of the project
area, which will have a combined area of 320 acres of public
space.
- 22 -
Residential Development
Woodbury’s proximity to major employment centers, easy
access to the metropolitan freeway
system, and large tracts of developable land have made the City
an ideal location for quality
residential development. For these reasons, Woodbury has been
one of Minnesota’s fastest
growing cities for the past several years.
The City of Woodbury prides itself on its well-planned
neighborhood communities. One example
of this type of master-planned community is Wedgewood, a
1300-acre Minnesota Mutual Life
Insurance Company development located north of the
intersection of Bailey Road and Woodbury
Drive. It was developed around Prestwick, an 18-hole
championship golf course, beginning in
1986. There are over 1,100 home sites in the Wedgewood
development. Approximately half of
the land is developed and half of the land is open space, which
includes the golf course, 17 miles
of trails and 135 acres of park. Wedgewood offers executive
housing with single-family homes
starting at $400,000 and townhomes priced from $300,000.
Eagle Valley, located south of Valley Creek Road and east of
Woodbury Drive, is a mixed-use
77. Planned Unit Development by Newland Communities and is
comprised of 525 acres. Included in
the development is an 18-hole municipal golf course on 226
acres called Eagle Valley. The Eagle
Valley development was approved for 1,300 units with a
mixture of residential densities. The
single-family homes start at $350,000. The Villages at Eagle
Valley is a Rottlund Homes
townhome project comprised of 59 detached townhomes,
starting in price from $200,000. Other
townhome projects in this development include the Grand
Reserve at Eagle Valley with 394 units
and the Gables at Eagle Valley with 152 units.
Residential growth in the City was strong in 2008, despite the
slow down in the housing market.
The City issued permits for 342 new housing units in 2008.
This total includes 153 single-family
building permits issued at a value of $55,335,000 and 43 multi-
family building permits issued for
189 townhomes and apartment units at a value of $28,485,000.
There are several master-planned communities being built in
Woodbury at this time. Prices in
these developments range from $200,000 to $350,000 for
attached housing and $350,000 to
$1,000,000 for single family detached homes. The following are
the three largest developments:
Stonemill Farms is being developed by Newland Communities.
The development is comprised of
675 acres, which is being developed into 1,200 housing units to
be built over nine phases. The
development includes 980 single-family lots and 220 multiple-
family lots. The project is generally
located south of Valley Creek Road and north of Bailey Road
78. between Cottage Grove Drive and
Manning Avenue. A small area of the plan extends south of
Bailey Road. There are two small
neighborhood commercial nodes in the project, and the
developer has reserved some land for a
future affordable housing site.
Dancing Waters is being developed by Laurent Development
Company, LLC. The development
will have 1,150 housing units on 459 acres to be built in six
phases. Single-family lots and
detached townhomes total 660 units and multi-family units total
488 units. In addition, there will
be approximately 40 units of affordable housing. Dancing
Waters is located north of Valley Creek
Road and east of St. John's Drive.
Bailey’s Arbor is being developed by Bancor Group and
Arboretum Development, LLC. The
property is the former Bailey Family Nursery site located in the
northwest corner of Bailey Road
and Cottage Grove Drive. The development consists of 219
single-family units and
626 multi-family units on 235 acres of land. Habitat for
Humanity is planning to build
30 affordable units in this development.
- 23 -
A summary of single-family developments currently in progress
is shown in the following table:
79. Development Name
Number of
Lots Approved
Number of
Lots Built On
Ashwood 1 21 14
Bailey’s Arbor 2 37 24
Bailey’s Arbor 3 55 50
Bailey’s Arbor 4 26 19
Bailey’s Arbor 5 18 11
Cherry Hill Addition 1 15 10
Dancing Waters 1 166 117
Dancing Waters 3 10 4
Dancing Waters 4 131 92
Dancing Waters 6 114 33
Dancing Waters 7 21 21
Edgewater Addition 1 15 1
Fairway Meadows 3 42 40
Fairway Meadows 4 19 17
Fairway Meadows East 1 31 39
Garden Gate 1 97 97
Heritage Park 4 8 6
Heritage Park 5 17 3
Heritage Park 6 19 6
Highland Knoll 1 30 1
Lake Wilmes 3 3 1
Notting Hill 1 9 4
Pine Ridge 2 6 5
Stonemill Farms 1 176 169
Stonemill Farms 2 256 221
Stonemill Farms 3 84 60
Stonemill Farms 4 91 52
80. Stonemill Farms 5 153 28
Troje Addition 3 1
Turnberry 1 43 41
Turnberry 4 40 37
Turnberry 5 41 18
Wyncrest 1 37 2
Wyndham Ponds 1 121 94
Total 1,955 1,341
The City completed an update to its Comprehensive Plan in
2000, which puts in place a
development and staging plan that will allow growth to continue
at an average rate of
approximately 600 new residential units per year. In
accordance with the Comprehensive Plan,
the first phase of urban development began in 2003.
Development plans for this area show that
approximately 3,100 new housing units were added to the City
during this first phase between
2003 and 2008. Based on the projected growth rate, the
Comprehensive Plan projects the City’s
population to be 60,000 by the year 2010 and that the City will
be almost fully developed with a
population of 84,000 by the year 2030.
- 24 -
The City is in the process of completing its 2030
Comprehensive Plan, which will guide residential
and commercial growth in the City for the next twenty years.
The new plan is consistent with the
current plan in terms of growth management and phasing, but
81. has an added focus on
sustainability and healthy aging. The 2030 Comprehensive Plan
is expected to be completed in
2009.
Building Permits Issued by the City
Type of Permit
New Single New
Family Homes Comm./Industrial All Others Total
Number Value Number Value Number Value Number Value
2009 (6-30) 65 $ 22,332,000 3 $ 2,597,000 1,385 $ 29,466,556
1,453 $ 54,395,556
2008 153 55,335,000 7 12,210,000 4,370 93,794,170 4,530
161,339,170
2007 225 82,404,000 5 18,182,000 5,367 170,554,553 5,597
271,140,553
2006 340 129,247,000 29 61,480,000 4,277 129,641,439 3,462
252,900,633
2005 451 167,115,700 17 28,276,000 4,422 72,340,960 4,890
367,732,660
2004 508 163,725,000 25 45,891,000 4,571 173,115,378 5,104
382,731,378
2003 283 88,189,841 22 8,574,000 3,865 77,675,145 4,170
174,438,986
2002 162 41,490,000 10 19,732,000 3,211 36,746,150 3,383
97,968,150
2001 245 58,049,000 5 14,654,000 3,743 90,820,783 3,993
163,523,783
2000 437 99,747,450 12 11,474,845 3,316 100,712,059 3,765
211,934,354
Education
82. Three independent school districts serve the City. The largest
percentage of students attend
Independent School District No. 833 (South Washington
County); smaller percentages are in
Independent School District No. 622 (North St. Paul-
Maplewood-Oakdale) and Independent
School District No. 834 (Stillwater).
Independent School District No. 833 (South Washington
County) had a 2008/09 enrollment of
approximately 16,375, excluding 309 elementary students
enrolled at Valley Crossing Community
School, which is run by Northeast Metropolitan Intermediate
School District No. 916. The
physical plant of Independent School District No. 833 (South
Washington County) includes
14 elementary schools, four junior high schools, and two senior
high schools. District voters
recently approved the construction of a third high school
building, as well as improvements to the
existing high schools and additions to two other schools.
GOVERNMENTAL ORGANIZATION AND SERVICES
Woodbury has been a municipal corporation since 1860.
Incorporated as a village in 1967, the
City became a statutory city in 1974. The City’s governing
body is the City Council, comprised of
the Mayor and four Council members. The Mayor serves a four-
year term of office; Council
members are elected at large to serve overlapping four-year
terms.