PRELIMINARY OFFICIAL STATEMENT, DATED JANUARY 14, 2009
NEW ISSUERating: Moody’s ______ (See: “Ratings” herein)
In the opinion of Calfee, Halter & Griswold LLP, Bond Counsel, interest on the Taxable Notes is NOT excluded from gross income for federal income tax purposes. Interest on the Tax-Exempt Notes is excluded from gross income for federal income tax purposes and is not treated as an item of tax-preferencefor purposes of the alternative minimum tax imposed on individuals and corporations under the Internal Revenue Code of 1986, as amended (the “Code”).Interest on, any transfer of, and any profit made on the sale, exchange, or other disposition of, the Notes are exempt from the Ohio personal income tax, theOhio corporation franchise tax (to the extent computed on the net income basis) and income taxes imposed by municipalities and other political subdivisionsin Ohio. Interest on the Notes, as is the case with most other forms of interest on debt obligations, is not subject to the Ohio commercial activity tax imposedunder Chapter 5751 of the Code. (For a more complete discussion of tax aspects, see “TAX MATTERS.”)
CITY OF SOUTH EUCLID, OHIOGENERAL OBLIGATION NOTESconsisting of two issues:$__________ Taxable Real Estate Acquisition and UrbanRedevelopment General Obligation(Limited Tax) Bond Anticipation Notes,Series 2009A$__________ Real Estate Acquisition and UrbanRedevelopment General Obligation(Limited Tax) Bond Anticipation Notes,Series 2009BCUSIP: 837752 ___CUSIP: 837752 ___
Dated: January 26, 2009Price: 100%Due: January 25, 2010
The City of South Euclid (the “City”), County of Cuyahoga (the “County”), State of Ohio (the “State”) is offering itsTaxable Real Estate Acquisition and Urban Redevelopment General Obligation (Limited Tax) Bond Anticipation Notes,Series 2009A (the “Taxable Notes”) and the Real Estate Acquisition and Urban Redevelopment General Obligation (LimitedTax) Bond Anticipation Notes, Series 2009B (the “Tax-Exempt Notes” and, collectively with the Taxable Notes, the“Notes”). The Taxable Notes shall bear interest at the rate of _____ and _________ one-hundredths per centum (_____%) per annum and the Tax-Exempt Notes shall bear interest at the rate of _____ and _________ one-hundredths per centum(_____%) per annum, in each case payable at maturity.
Interest on the Taxable Notes is NOT excludable from grossincome for federal income tax purposes and interest on the Tax-Exempt Notes is excluded from gross income forfederal income tax purposes.
The Notes are not subject to redemption prior to maturity.The Notes will be issued initially under a book-entry system, in the name of Cede & Co., as holder and nominee for The Depository Trust Company (“DTC”). DTC will act as securities depository for the Notes. Purchase of the Notes may bemade only in book-entry form through DTC Participants (as defined herein), and no physical delivery of the Notes will bemade to the purchasers of book-entry interests.While the Notes are held in a book-entry system, principal and interest shall be payable to DTC or its nominee as theowners on presentation and surrender of the Notes at the corporate trust office of U.S. Bank National Association, Cleveland,Ohio. Disbursement of such payments to DTC Participants is the responsibility of DTC and disbursement of such paymentsto owners of Book-entry Interests (as defined herein) is the responsibility of DTC Participants and Indirect Participants, asdefined and more fully described herein.The Notes in certificated form as such will not be transferable or exchangeable, except for transfer to another nominee of DTC or as otherwise described in the Official Statement.The Notes are general obligations of the City payable from ad valorem taxes on all taxable real and personal property in the City, within the ten mill limitation imposed by Ohio law as more fully described herein.The Notes are offered when, as and if issued, subject to approval of legality by Calfee, Halter & Griswold LLP,Cleveland, Ohio, Bond Counsel, and certain other conditions. The Notes are expected to be available for delivery on or aboutJanuary 26, 2009.January __, 2009
T h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t a n d i n f o r m a t i o n c o n t a i n e d h e r e i n a r e s u b j e c t t o c h a n g e , c o m p l e t i o n o r a m e n d m e n t w i t h o u t n o t i c e . T h e s e s e c u r i t i e s m a y n o t b e s o l d n o r m a y o f f e r s t o b u y b e a c c e p t e d p r i o r t o t h e t i m e t h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t i s d e l i v e r e d i n f i n a l f o r m . U n d e r n o c i r c u m s t a n c e s s h a l l t h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t c o n s t i t u t e a n o f f e r t o s e l l o r t h e s o l i c i t a t i o n o f a n y o f f e r t o b u y , n o r s h a l l t h e r e b e a n y s a l e o f t h e s e s e c u r i t i e s i n a n y j u r i s d i c t i o n i n w h i c h s u c h o f f e r , s o l i c i t a t i o n o r s a l e w o u l d b e u n l a w f u l p r i o r t o r e g i s t r a t i o n o r q u a l i f i c a t i o n u n d e r t h e s e c u r i t i e s l a w s o f a n y s u c h j u r i s d i c t i o n .