DOCSLIB.ORG

City of Cleveland, Ohio

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
City of Cleveland, Ohio PRELIMINARY OFFICIAL STATEMENT DATED APRIL 27, 2016 NEW ISSUE – BOOK ENTRY ONLY Ratings Moody’s A1 Standard & Poor’s AA (See “RATINGS” herein) In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2016 Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, and (ii) interest on, and any profit made on the sale, exchange or other disposition of, the Series 2016 Bonds are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. Interest on the Series 2016 Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. For a more complete discussion of the tax aspects, see “TAX MATTERS” herein. OFFICIAL STATEMENT $53,040,000* CITY OF CLEVELAND, OHIO GENERAL OBLIGATION BONDS Consisting Of: $47,650,000* $5,390,000* Various Purpose and Refunding General Obligation Final Judgment General Obligation Refunding Bonds, Series 2016A Bonds, Series 2016B Dated: Date of Issuance Due: December 1, as shown herein The Various Purpose and Refunding General Obligation Bonds, Series 2016A (the “Series 2016A Bonds”) and the Final Judgment General Obligation Refunding Bonds, Series 2016B (the “Series 2016B Bonds”, and together with the Series 2016A Bonds, the “Series 2016 Bonds”) are general obligations of the City, issued for the purposes described herein. See “THE SERIES 2016 BONDS - Authorization and Purpose” and “Plan of Refunding.” Principal, interest and any premium on all unvoted general obligation bonds of the City, including the Series 2016 Bonds, unless paid from other sources, are to be paid from the proceeds of the City’s levy of ad valorem property taxes, levied by the City within the ten- mill limitation imposed by Ohio law, and municipal income taxes pledged by the City under its General Bond Ordinance. See “SECURITY AND SOURCES OF PAYMENT.” The Series 2016 Bonds will be initially issued as fully registered bonds, issuable under a book-entry only system, initially registered in the name of The Depository Trust Company (“DTC”) or its nominee. There will be no distribution of the Series 2016 Bonds to the ultimate purchasers. The Series 2016 Bonds in certificated form as such will not be transferable or exchangeable, except for transfer to another nominee of DTC or as otherwise described in this Official Statement. See “APPENDIX C – BOOK-ENTRY ONLY SYSTEM.” Interest on the Series 2016 Bonds is payable semiannually on each June 1 and December 1, beginning December 1, 2016. So long as the Series 2016 Bonds are held by DTC in a book-entry only system, the principal of and interest on the Series 2016 Bonds will be payable by wire transfer made to DTC on each payment date by The Huntington National Bank, as escrow agent and paying agent for the City’s Sinking Fund (the “Escrow Agent”). U.S. Bank National Association serves as the trustee and registrar for the Series 2016 Bonds (the “Trustee”). [Certain of the Series 2016 Bonds are subject to redemption by the City prior to maturity, as described in this Official Statement. See “THE SERIES 2016 BONDS – Redemption of the Series 2016 Bonds.”] This cover page includes certain information for reference only. It is not a summary of the Series 2016 Bonds or the matters set forth herein. Investors should read the entire Official Statement to obtain information as a basis for the making of informed investment judgments. The Series 2016 Bonds are offered when, as and if issued, and accepted by the Underwriters, subject to the opinions on certain legal matters relating to their issuance of Squire Patton Boggs (US) LLP, Bond Counsel. Certain legal matters will be passed upon for the City by Barbara A. Langhenry, its Director of Law, and for the Underwriters by Wilkerson & Associates Co., LPA. The Series 2016 Bonds are expected to be available for delivery to DTC on or about __________, 2016. KeyBanc Capital Markets Inc. Blaylock Beal Van, LLC BofA Merrill Lynch US Bancorp The date of this Official Statement is _________, 2016 and the information speaks only as of that date. This Preliminary Official Statement and information contained herein are subject to change, completion or amendment without notice. These securities may not be sold nor may offers to buy be accepted prior to the time this Preliminary to Official offers not be sold nor may These securities may This Preliminary completion or amendment without notice. contained herein are subject to change, Official Statement and information any sale of these securitiesany jurisdiction nor shall there be in in which such buy, to any offer Under no circumstances shall this Preliminary to sell or the solicitation of Official Statement constitute an offer form. in final Statement is delivered such jurisdiction. prior of any or qualification under the securities to registration be unlawful laws solicitation or sale would offer, * Preliminary, subject to change. MATURITY SCHEDULE ON DECEMBER 1 $53,040,000* CITY OF CLEVELAND, OHIO GENERAL OBLIGATION BONDS $47,650,000* Various Purpose and Refunding General Obligation Bonds, Series 2016A Principal Interest CUSIP+ Maturity Amount Rate Yield Price No. 2017 $ 150,000 2018 1,615,000 2019 1,645,000 2020 1,675,000 2021 3,355,000 2022 3,450,000 2023 3,585,000 2024 3,730,000 2025 3,915,000 2026 4,115,000 2027 3,905,000 2028 4,355,000 2029 3,980,000 2030 2,045,000 2031 2,110,000 $4,020,000 _____%Term Bond Due December 1, 2033 Yield ____% Price ____** Cusip+ No. __________ $5,390,000* Final Judgment General Obligation Refunding Bonds, Series 2016B Principal Interest CUSIP+ Maturity Amount Rate Yield Price No. 2028 $ 765,000 2029 785,000 2030 805,000 2031 835,000 $745,000 _____%Term Bond Due December 1, 2027 Yield ____% Price ____** Cusip+ No. __________ $1,455,000 _____%Term Bond Due December 1, 2033 Yield ____% Price ____** Cusip+ No. __________ + Copyright American Bankers Association. CUSIP numbers have been assigned by an independent company not affiliated with the City and are included solely for the convenience of the holders of the Series 2016 Bonds. The City is not responsible for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the Series 2016 Bonds or as indicated above. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Series 2016 Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Series 2016 Bonds. ** Priced to call date. [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] *Preliminary, subject to change. CITY OF CLEVELAND, OHIO MAYOR PRESIDENT OF COUNCIL Frank G. Jackson Kevin J. Kelley DEPARTMENT OF FINANCE Director of Finance Sharon Dumas Assistant Secretary, Sinking Fund Commission Elizabeth C. Hruby DEPARTMENT OF LAW Director of Law Barbara A. Langhenry TRUSTEE AND BOND REGISTRAR U.S. Bank National Association ESCROW AND PAYING AGENT The Huntington National Bank BOND COUNSEL Squire Patton Boggs (US) LLP Cleveland, Ohio CO-FINANCIAL ADVISORS Phoenix Capital Partners, LLP Government Capital Management, L.L.C. Philadelphia, Pennsylvania Tuxedo Park, New York INDEPENDENT AUDITOR Clark Schaefer Hackett REGARDING THIS OFFICIAL STATEMENT This Official Statement does not constitute an offering of any security other than the original offering of the Series 2016 Bonds of the City identified on the cover. No person, other than the Director of Finance of the City, has been authorized by the City or the Underwriters to give any information or to make any representation other than as contained in this Official Statement. Any other representation not so authorized should not be relied upon as having been given or authorized by the City or the Underwriters. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, and there shall not be any sale of the Series 2016 Bonds by any person in any jurisdiction in which it is unlawful to make such offer, solicitation or sale. The information and expressions of opinion herein are subject to change without notice. Neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the City since the date hereof. Any statements made in this Official Statement that involve matters of opinion or estimates, whether expressly stated to be such, are made as such and not as representations of fact or certainty, and no representation is made that any of those statements have been or will be realized. Information in this Official Statement that has been derived by the City from its official records and other sources is believed by the City to be accurate and reliable. Information other than that obtained from official records of the City has not been independently confirmed or verified by the City. Upon issuance, the Series 2016 Bonds will not be registered under the Securities Act of 1933, as amended, or any state securities laws, and will not be listed on any stock or other securities exchange.
Load more

Recommended publications
  • Shakeup at GE Lighting
    20160208-NEWS--1-NAT-CCI-CL_-- 2/5/2016 3:45 PM Page 1 VOL. 37, NO. 6 FEBRUARY 8 - 14, 2016 MANUFACTURING: Outlook Business of Life It’s a mixed bag for industry in 2016 P. 6 Ice wine How frozen grapes SPORTS: Arena football become a sweet drink Cleveland is rare AFL success story P. 20-21 P. 8 The List FOCUS: Middle Market CLEVELAND BUSINESS Heinen’s downtown move paying off NEO’s largest software developers P. 15 P. 27 A to Z podcast making a mark BY KEVIN KLEPS frequent inquiries led to a partner- ship that really helped the podcast [email protected] take off. @KevinKleps Zac Jackson casually tells a re- Here to stay porter that he didn’t get an iPhone “I bugged them for a long time,” “until like a year ago.” said Grzegorek, the editor-in-chief of Andre Knott, his best friend and a pair of alternative weeklies, Cleve- podcast partner, immediately land Scene and the Detroit Metro chimes in, “And he still doesn’t know Times. how to use it.” Grzegorek said he would call Jack- The scene was a Panera’s in North son “at least once a month” and ask Olmsted, but it might as well have him if “it was time for us to have a se- been one of the undisclosed loca- rious conversation.” A display of tions (Jackson and Knott prefer to Late last summer, Scene made an LED technology keep their audience wondering) at offer — it would pay Jackson and at GE Lighting’s which the two record their increas- Knott a fee for the podcast, which ingly popular A to Z podcast.
    [Show full text]
  • The Deal with Club Pilates Was Completed in a Professional“ Manner
    www.REBusinessOnline.com May 2016 • Volume 14, Issue 9 The deal with Club Pilates was completed in a professional“ manner. The tenant’s lease comments and requests were fair, the tenant was very responsive during the negotiations; the business will be another first class addition to our center. Scott A Tucker ” CSM Vice President to Leasing (Chicago Region) KIMCO CLUB PILATES CONTACT: RICHARD FEINBERG – Vice President of Real Estate www.clubpilates.com/realestate CP AD 10.8125X14 COVER.indd 1 4/21/16 4:48 PM www.REBusinessOnline.com May 2016 • Volume 14, Issue 9 THE DISTRICT DETROIT AIMS NET LEASE TO BE GAME CHANGER FOR CITY INVESTMENT Bold mixed-use plan for area around arena fosters neighborhood concept. By Christina Cannon MAINTAINS ummer may be approaching, but workers on the Detroit BRISK PACE SEvents Center are cooling off as 1031 exchange buyers, the practice ice begins to take shape. With work on the roof and training fa- private investors drive cility underway, the new home of the demand, but cap rates NHL’s Red Wings is right on schedule to open for the 2017-2018 season. suggest cycle nears peak. With so much excitement surround- By Joe Gose ing the construction of the arena, it’s unger for yield and persistently easy to lose site of the other compo- low interest rates, the dynam- nents that will make up The District ics that have fueled a robust Detroit. In addition to the 20,000-seat H This building will be situated along Woodward Avenue and is part of The District net lease investment market for retail arena, 50 blocks between downtown Detroit’s Woodward Square neighborhood.
    [Show full text]
  • BRIGHT IDEAS Hospitals Hoping Time Runs
    20140915-NEWS--1-NAT-CCI-CL_-- 9/12/2014 3:55 PM Page 1 $2.00/SEPTEMBER 15 - 21, 2014 Hospitals hoping time runs out on SLAM DUNK midnight rule By TIMOTHY MAGAW [email protected] For some Medicare patients, sitting in a hos- pital bed overnight doesn’t necessarily mean they’ve been admitted. Consider it the Medicare version of purgatory, and it’s confus- ing patients and taking a chunk out of local hos- pitals’ bottom lines. Last year, the cash-strapped Medicare pro- gram instituted a rule that stated that patients needed two nights — make that two midnights — in the hospital to qualify for inpatient-hospi- tal rates. If they don’t cross that two-midnight threshold, hospitals must bill at the lower, out- patient rates. Basically, it injects a time element into a doctor’s decision of whether to admit a patient, and hospitals are clamoring for a change. “It is so convoluted now and under such fire they’ll have to do something to change it,” said Don Paulson, University Hospitals’ vice presi- CAVS’ dent of revenue cycle management. The rule, according to Moody’s Investors Ser- vice, has the potential to cost hospitals $3,000 to $4,000 per case. ‘ALL OHIO’ That’s big bucks, considering about 40% to 50% of most hospitals’ patients are Medicare beneficiaries. Moreover, Medicare patients are likely on the hook for more of the bill — co-pays APPROACH and drug expenses, for instance — when the hospitals are reimbursed at the outpatient rates. A boon in high-deductible health plans already has forced hospitals to up their game in collect- GAINS CRUCIAL ing unpaid bills, and the two-midnight rule SCOTT POLLACK would only intensify those efforts among See MIDNIGHT, page 24 MOMENTUM STORY BY KEVIN KLEPS n 30-second television commercials, the likes of Urban I Meyer, Archie Griffin, Thad Matta and Clark Kellogg proclaim themselves Cleveland Cavaliers.
    [Show full text]
  • City of Cleveland, Ohio Public Power System Revenue Refunding Bonds, Series 2016A
    PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 22, 2016 NEW ISSUE - BOOK-ENTRY ONLY Ratings Moody’s: Applied For S&P: A- (See “RATINGS”) In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2016A Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations and (ii) interest on, and any profit made on the sale, exchange or other disposition of, the Series 2016A Bonds and the Series 2016B Bonds are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. Interest on the Series 2016A Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax on a portion of that interest. INTEREST ON THE SERIES 2016B BONDS IS NOT EXCLUDED FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES. For a more complete discussion of the tax aspects, see “TAX MATTERS” herein. OFFICIAL STATEMENT CITY OF CLEVELAND, OHIO $81,820,000* $13,265,000* Public Power System Revenue Refunding Bonds, Public Power System Taxable Revenue Refunding Series 2016A Bonds, Series 2016B Dated: Date of delivery Due: November
    [Show full text]
  • Printable Version (PDF)
    Cleveland Architects Database The Cleveland Architects Database was envisioned as a comprehensive listing of Cleveland’s rich history of buildings and the architects who designed them. It provides an extensive look at the output of buildings in the careers of Cleveland’s architects to help us further recognize and evaluate their bodies of work, whether well-known or unheralded. A resource for architects, historians, planners, students, and property owners, the Database is a product of the Landmarks Commission’s mandate to conduct a continuous survey of Cleveland’s architectural heritage. The Database covers the history of Cleveland’s built environment, primarily up to the 1940s. It is our intention to expand the Database to include more buildings and architects from the latter half of the twentieth century. And though the focus of the Database is on architects from Cleveland and the work they produced, more entries will be added for architects from elsewhere who designed significant buildings here. The Database went online in June of 2008, and it continues to be updated, corrected, and refined. It is not a finished document, but rather a work in progress that will continue to grow and evolve. We welcome documented additions and corrections. Award In 2014, the Cleveland Restoration Society recognized former Landmarks Commission Secretary Robert Keiser and the Cleveland Architects Database with a Cultural Resource Award at the 2014 Celebration of Preservation. Acknowledgments Robert Keiser, who conducted research for the Commission from 1983 to 2014, and architectural historian Craig Bobby are the primary contributors to its compilation, research, and editing. Additional credit belongs to those who have contributed information over the years or whose research from other projects was incorporated into the Database.
    [Show full text]
  • Last of Duke Portfolio May Be Sold ‘Mompreneur’ Ranks Are Dence That Duke Itself Constructed, Growing Sources Say N.Y
    20121217-NEWS--1-NAT-CCI-CL_-- 12/14/2012 4:54 PM Page 1 $2.00/DECEMBER 17 - 23, 2012 INSIDE Last of Duke portfolio may be sold ‘Mompreneur’ ranks are dence that Duke itself constructed, growing Sources say N.Y. firm in talks for REIT’s 11 NE Ohio office sites as well as office buildings such as More mothers — Corporate Place I on Rockside such as Cindy Perry By STAN BULLARD property affiliate of big hedge fund pendence and Seven Hills, perhaps Woods Boulevard that it acquired to of Avon Lake, who [email protected] firm Och-Ziff Capital Management in hopes of a year-end close of the enter the Cleveland market in 1996. launched Pello last of New York. Och-Ziff Capital is an purchase. The sources asked not to If the deal is concluded, Duke January — realize they can start a Duke Realty Corp.’s long good- institutional alternative asset man- be identified because they are not would complete the departure from business and be a parent. PAGE 3 bye from Northeast Ohio soon may ager with more than $30 billion in authorized to speak for the parties Northeast Ohio that it began in 2005. become a final farewell. investments under management. involved. It sold its substantial industrial port- PLUS: The Indianapolis-based real estate Two sources said Och-Ziff and an The properties are blue-chip folio in 2005, its portfolio of nine of- ■ East Cleveland-based GE owner and manager is in talks to sell operating partner are pursuing the office buildings that total 1 million fice buildings in the eastern suburbs Lighting finds room for LEDs in the its last 11 suburban office buildings purchase of the group of properties square feet.
    [Show full text]
  • Ohio Historic Preservation Tax Credit, 2015 Comprehensive Report, Ohio
    2015 Comprehensive Report Ohio Historic Preservation Tax Credit 2015 Comprehensive Report The rotunda of the Cleveland Trust Company building no longer spans a banking lobby but instead provides a one-of-a-kind destination grocery shopping experience to Heinen’s customers. Located near the epicenter of Downtown Cleveland (Cuyahoga County), the grocery is a highly- demanded amenity for downtown’s growing population. Table of Contents • Introduction Letter ................................................................................................................................. 3 • Program Overview ................................................................................................................................. 4 • Opportunity ............................................................................................................................................. 5 • Impact – Community .......................................................................................................................................... 6 – Business & Job Growth ..................................................................................................................... 8 – Tax Revenue ........................................................................................................................................ 10 – Tourism ................................................................................................................................................ 11 • Completed Projects – Before and After .............................................................................................
    [Show full text]
  • City of Cleveland, Ohio $67,395,000* Subordinate Lien Income Tax Improvement and Refunding Bonds, Series 2017A
    PRELIMINARY OFFICIAL STATEMENT DATED MAY 24, 2017 NEW ISSUE BOOK-ENTRY ONLY Ratings S&P AA+ Moody’s A1 (See “Ratings”) In the opinion of Squire Patton Boggs (US) LLP, Bond Counsel, under existing law (i) assuming continuing compliance with certain covenants and the accuracy of certain representations, interest on the Series 2017A Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Series 2017A Bonds is included in the calculation of a corporation’s adjusted current earnings for purposes of, and thus may be subject to, the corporate alternative minimum tax, and (ii) interest on, and any profit made on the sale, exchange or other disposition of, the Series 2017A Bonds are exempt from all Ohio state and local taxation, except the estate tax, the domestic insurance company tax, the dealers in intangibles tax, the tax levied on the basis of the total equity capital of financial institutions, and the net worth base of the corporate franchise tax. Interest on the Series 2017A Bonds may be subject to certain federal taxes imposed only on certain corporations, including the corporate alternative minimum tax as a result of the inclusion of that interest in the calculation of a corporation’s adjusted current earnings for purposes of the corporate alternative minimum tax. For a more complete discussion of the tax aspects, see “TAX MATTERS” herein. CITY OF CLEVELAND, OHIO $67,395,000*
    [Show full text]
  • The Μgrid CLE
    The µGrid CLE UST 611: Planning Studio May 14, 2018 Original Cleveland µGrid • Project structure • Reasons for Study Area design Introduction 2 Vision and Goals Goal 1: Provide affordable, reliable and resilient power. Goal 2: Drive economic growth and development. Goal 3: Provide clean power and establish power sustainability. Introduction Goal 4: Improve existing infrastructure and implement smart grid technology. 3 Demographics 4 Population and Racial Makeup Cuyahoga County Racial Makeup, City of Cleveland Racial Makeup, Population 1.25 million Population 385,000 Estimate; Total: - White alone Estimate; Total: - White alone Estimate; Total: - Black or Estimate; Total: - Black or African American alone African American alone 0% 3% 1% 2% 1% Estimate; Total: - Asian alone Estimate; Total: - American 0% 0% 3% 2% Indian and Alaska Native 0% 3% 3% 3% alone Estimate; Total: - Asian Estimate; Total: - Native Hawaiian and Other Pacific Demographics 62% alone 49% Islander alone 29% Estimate; Total: - Native 39% Estimate; Total: - Some other Hawaiian and Other Pacific race alone Islander alone Estimate; Total: - Some Estimate; Total: - Two or more other race alone races: Estimate; Total: - Two or Estimate; Total: - Two or more more races: races: - Two races including Some other race Estimate; Total: - Two or Estimate; Total: - Two or more more races: - Two races races: - Two races excluding including Some other race Some other race, and three or more races 5 Racial Makeup Study Area Study Area Racial Makeup, Population 19,719 Estimate; Total:
    [Show full text]