PARKING AUTHORITY of the CITY of TRENTON County of Mercer
Total Page:16
File Type:pdf, Size:1020Kb
NEW ISSUE RATINGS: See “RATINGS” herein (BOOK-ENTRY ONLY) In the opinion of McManimon, Scotland & Baumann LLC, Bond Counsel to the Authority (as defined herein), pursuant to Section 103(a) of the Internal Revenue Code of 1986, as amended (the “Code”) and existing statutes, regulations, administrative pronouncements and judicial decisions, and in reliance on the representations, certifications of fact, and statements of reasonable expectation made by the Authority and assuming continuing compliance by the Authority with certain ongoing covenants described herein, interest on the 2016 Series B Bonds (as defined herein) is not included in gross income for Federal income tax purposes and is not an item of tax preference for purposes of calculating the alternative minimum tax imposed on individuals and corporations. Bond Counsel is also of the opinion that interest on the 2016 Series B Bonds held by corporate taxpayers is included in “adjusted current earnings” in calculating alternative minimum taxable income for purposes of the federal alternative minimum tax imposed on corporations. Interest on the 2016 Series A Bonds (as defined herein) is includable in gross income for federal income tax purposes. Further, in the opinion of Bond Counsel, interest on the Bonds (as defined herein) and any gain from the sale thereof are not includable as gross income under the New Jersey Gross Income Tax Act. See “TAX MATTERS” herein. PARKING AUTHORITY OF THE CITY OF TRENTON County of Mercer, New Jersey $3,735,000 $16,965,000 Parking Revenue Refunding Bonds Parking Revenue and Refunding Bonds (City Guaranteed) Series 2016A (City Guaranteed) Series 2016B (Federally Taxable) consisting of $16,250,000 Parking Revenue Refunding Bonds (City Guaranteed) Series 2016 and $715,000 Parking Revenue Bonds (City Guaranteed) Series 2016 Dated: Date of Delivery Due: As shown on the inside cover hereof The $3,735,000 principal amount of Parking Revenue Refunding Bonds (City Guaranteed) Series 2016A (Federally Taxable) (the “2016 Series A Bonds”) and $16,965,000 principal amount of Parking Revenue and Refunding Bonds (City Guaranteed) Series 2016B (the “2016 Series B Bonds” and, together with the 2016 Series A Bonds, the “Bonds”), consisting of $16,250,000 Parking Revenue Refunding Bonds (City Guaranteed) Series 2016 and $715,000 Parking Revenue Bonds (City Guaranteed) Series 2016 of the Parking Authority of the City of Trenton, in the County of Mercer, New Jersey (“Authority”), as authorized by the Parking Authority Law, constituting Chapter 198 of the Pamphlet Laws of 1948, of the State of New Jersey, as amended and supplemented (“Act”), shall be issued as fully registered bonds and, when issued, will be registered in the name of and held by Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in denominations of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interest in the Bonds purchased. As long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the registered owners shall mean Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as hereinafter defined) of the Bonds. See “DESCRIPTION OF THE BONDS - Book-Entry Only-System” herein. U.S. Bank National Association, Morristown, New Jersey, will serve as Trustee, Paying Agent and Registrar for the Bonds (“Trustee”, “Paying Agent” and “Registrar”, respectively). The principal or redemption price of and interest on the Bonds will be paid by the Paying Agent. As long as DTC or its nominee, Cede & Co., is the registered owner, such payments will be made directly to Cede & Co. Disbursement of such payments to Direct Participants (as defined herein) is the responsibility of DTC and disbursement of such payments to Beneficial Owners is the responsibility of the Direct Participants and the Indirect Participants (as defined herein), as more fully described herein. Interest on the Bonds will be payable on April 1, 2017 and semi-annually thereafter on October 1 and April 1 of each year until maturity or prior redemption to the registered owner of record as of March 15 and September 15 next preceding such interest payment date as shown on the registration books of the Authority maintained by the Registrar. The Bonds shall mature and bear interest as set forth on the inside front cover. The Bonds are subject to optional and mandatory sinking fund redemption prior to their stated maturities as described herein. See “DESCRIPTION OF THE BONDS – Optional Redemption – Mandatory Sinking Fund Redemption.” The 2016 Series A Bonds are being issued to provide funds which will be used, together with other available funds of the Authority, to (i) refund all or a portion of the Authority’s outstanding 2006 Bonds (as defined herein) and (ii) pay the costs of issuing the 2016 Series A Bonds. The 2016 Series B Bonds are being issued to provide funds which will be used, together with other available funds of the Authority, to (i) refund all or a portion of the Authority’s outstanding 2013 Refunding Bonds (as defined herein), (ii) finance certain capital improvements to the Authority garages, and (iii) pay the costs of issuing the 2016 Series B Bonds. The Bonds are direct and general obligations of the Authority and the full faith and credit of the Authority is pledged to the payment of the principal or redemption price of, and interest on, the Bonds. The Bonds are payable from and are secured by the pledge of the funds and accounts held by the Trustee and by a pledge of the Revenues of the Authority, as such term is defined in the “Resolution Authorizing the Issuance of Parking Revenue Bonds of the Parking Authority of the City of Trenton, in the County of Mercer, New Jersey” adopted by the Authority on June 15, 1999, as amended and supplemented (the “General Bond Resolution”), as further amended and supplemented on July 28, 2016 (the “2016 Supplemental Resolution” and, together with the General Bond Resolution, as amended, the “Resolutions”), and an award certificate to be executed by the Chairman of the Authority on the Delivery Date of the Bonds (the “Award Certificate” and together with the Resolutions, the “Resolution”). The Bonds are further secured by a guaranty agreement with the City as authorized by Guaranty Ordinances duly adopted on July 1 1999, February 15, 2001, November 6, 2003, and October 20, 2005, respectively, pursuant to which the City has guaranteed the payment of principal of and interest on outstanding bonds of the Authority in an aggregate amount of $39,850,000, including the Bonds, to the extent that Revenues or certain other funds of the Authority are not available to pay the principal of or interest on the Bonds (the “Guaranty”). See “SECURITY - City Guaranty”, herein. THE AUTHORITY HAS NO POWER TO LEVY OR COLLECT TAXES, AND THE BONDS ARE NOT AND SHALL NOT BE DEEMED TO CREATE A DEBT OR LIABILITY OF THE STATE OF NEW JERSEY OR ANY POLITICAL SUBDIVISION THEREOF OTHER THAN THE AUTHORITY INCLUDING ANY COUNTY OR MUNICIPALITY, INCLUDING THE CITY OF TRENTON, EXCEPT TO THE EXTENT OF THE GUARANTY. The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Bonds by ASSURED GUARANTY MUNICIPAL CORP. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. The Bonds are offered when, as and if issued by the Authority and delivered to the Underwriter, subject to prior sale, to withdrawal or modification of the offer without notice and to approval of legality by the law firm of McManimon Scotland & Baumann, LLC, Roseland, New Jersey and certain other conditions described herein. Certain legal matters will be passed upon for the Authority by its counsel Bier Associates, New Brunswick, New Jersey, for the City by its bond counsel, Wilentz, Goldman & Spitzer P.A., Woodbridge, New Jersey and its Director of Law, Marc A. McKithen, Trenton, New Jersey and for the Underwriter by its counsel, Chiesa Shahinian & Giantomasi PC, West Orange, New Jersey. Delivery is anticipated to be at the offices of McManimon Scotland & Baumann, LLC, Roseland, New Jersey on or about September 27, 2016. Dated: September 8, 2016 PARKING AUTHORITY OF THE CITY OF TRENTON Maturities, Amounts, Interest Rates, Yields and CUSIPs* $3,735,000 Parking Revenue Refunding Bonds (City Guaranteed) Series 2016A (Federally Taxable) Serial Bonds Maturity Date Principal Interest (October 1) Amount Rate Yield CUSIP* 2017 $165,000 1.600% 1.600% 895164JH5 2018 175,000 2.070 2.070 895164JJ1 2019 170,000 2.490 2.490 895164JK8 2020 180,000 2.800 2.800 895164JL6 2021 185,000 2.950 2.950 895164JM4 2022 190,000 3.100 3.100 895164JN2 2023 190,000 3.270 3.270 895164JP7 2024 200,000 3.380 3.380 895164JQ5 2025 210,000 3.490 3.490 895164JR3 2026 220,000 3.590 3.590 895164JS1 ** Term Bonds $1,850,000 4.310% Term Bond due October 1, 2033 – Yield 4.310%, CUSIP* 895164JT9 $16,965,000 Parking Revenue and Refunding Bonds (City Guaranteed) Series 2016B** Parking Revenue Parking Revenue and Refunding Bonds Maturity Date Bonds Principal Principal Interest (April 1) Amount Amount Rate Yield CUSIP* 2017 $1,180,000 $35,000 2.000% 1.040% 895164JU6 2018 930,000 40,000 3.000 1.170 895164JV4 2019 955,000 45,000 4.000 1.300 895164JW2 2020 1,000,000 45,000 4.000 1.430 895164JX0 2021 1,035,000 45,000 4.000 1.560 895164JY8 2022 1,075,000 50,000 4.000 1.760 895164JZ5 2023 1,120,000 50,000 4.000 1.930 895164KA8 2024 1,165,000 55,000 4.000 2.080 895164KB6 2025 1,215,000 55,000 2.000 2.210 895164KC4 2026 1,240,000 55,000 2.000 2.300 895164KD2 2027*** 1,265,000 55,000 4.000 2.400 895164KE0 2028*** 1,310,000 60,000 4.000 2.490 895164KF7 2029 1,360,000 60,000 2.500 2.800 895164KG5 2030 1,400,000 65,000 2.500 2.870 895164KH3 * CUSIP is a registered trademark of the American Bankers Association.