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The Bandi are a humanoid race native to the planet Deneb IV, located in the Deneb system. For centuries the Bandi lived a nomadic lifestyle on the planet, living in a ramshackle city, and then moving onto another when conditions in that city had deteriorated badly.
In 2362, the Bandi came into contact with the Federation. Impressed with the Federation's abilities, the Bandi promised to construct a starbase that would suit the Federation's needs. However, instead of constructing the starbase, the Bandi captured an injured star-jelly and gave it small amounts of geothermal energy to keep it alive, and force it to assume the shape of Farpoint Station.
However, the Bandi's plan came crashing down in 2364, when Deneb IV was visited by the USS Enterprise-D and the star-jelly's mate. The mate repeatedly attacked the Bandi cities in revenge for the capturing of its mate. Fortunately, the Enterprise crew were able to ascertain the truth and provided enough energy for the captured star-jelly to revert to its normal shape and once again be with its mate.
Following this incident, Captain Jean-Luc Picard and the Bandi negotiated for a new starbase that would be built, but with Federation assistance. The Bandi request to join the Federation was hardly accepted. (TNG novelization: Encounter at Farpoint, ST website: Startrek.com)