HomeMy WebLinkAboutCity Council Resolution 1982-577Extract of Minutes of Meeting
of the City Council of the City
of Plymouth, Hennepin County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City
Council of the City of Plymouth, Hennepin County, Minnesota, was held at
the City Hall in said City on Monday, November 1, 1982, commencing 7:30 at
o'clock P.M.
The following members were present: Mayor Davenport, Councilmembers
Moen, Neils, Schneider and Threinen
and the following were absent: None
The following resolution was presented by Councilmember Threinen
who moved its adoption:
RESOLUTION NO. 82- 577
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $3,900,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1482
BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin
County, Minnesota as follows:
1. It is hereby determined:
(a) It is hereby determined that it is necessary and desirable
that the City finance the Public Development Costs (as
hereinafter defined) in an Economic Development Tax
Increment District (as hereinafter defined) in the City,
presently estimated to be $3,825,000, with the proceeds of
general obligation tax increment bonds issued pursuant to
the Tax Increment Financing Act (as hereinafter defined).
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Res. No. 82,577
(b) Pursuant to the provisions of Minnesota Statutes, Chapter
472A and Sections 273.11 and 273.78 (collectively, the
"Act") the City has duly established Development District
No. 2 (the "District") and adopted a Tax Increment Financing
Plan (the "TIF Plan") to finance roadway improvements (the
"Project") in accordance with a Development Program for the
District. The City has (or will prior to the delivery of
the Bonds authorized by this resolution) certified the
District and the TIF Plan to the Director of Property Taxa-
tion for determination of the original assessed value of the
District as provided in the Act.
(c) Monies are needed at this time to provide funds for con-
struction of the Project, capitalized interest, and admin-
istrative costs (the "Public Development Costs") presently
estimated as follows:
Land acquisition (right-of-way) $ 235,000
Engineering and expertise (15x) 330,000
Construction contracts 2,085,000
Administrative (5x) 145,000
Contingency (10x) 205,000
Capitalized interest 775,000
Costs of issuance, legal, fiscal
and printing 50,000
Total $3,825,000
(d) That it is necessary and expedient to the sound financial
management of the affairs of the City to issue $3,900,000
General Obligation Tax Increment Bonds of 1982, (the
"Bonds") to provide financing for the Project.
2. In order to provide financing for the Project, the City shall
therefore issue and sell Bonds in the amount of $3,825,000. In order to
provide in part the additional interest required to market the Bonds at
this time, additional Bonds shall be issued in the amount of $75,000. Any
excess of the purchase price of the Bonds over the sum of $3,825,000 shall
be credited to the debt service fund for the Bonds for the purpose of
paying interest first coming due on the Bonds. The Bonds shall be issued
and sold in accordance with the terms of the following Official Notice of
Sale:
Res. No. $2-577
OFFICIAL
j NOTICE OF SALE
$3,900,000 General Obligation Tex Increscent Bonds of 1982
City of Plymouth
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be received until 4:30 p.m. C.T. on Monday, November 15,
1982 in the office of the City Finance Director in the Plymouth City Hall,
3400 Plymouth Boulevard, Plymouth, Minnesota 55447, at which time the bids
will be opened and tabulated for consideration by the City Council at its
regular meeting at 7:30 p.m. C.T. on the same day. The bones are offered
on the following terms:
Purpose and Security
The purpose of the bonds is to provide funds for the financing of
various roadway improvements in Development District No. 2 is the City.
The bonds will be general obligations of the issuer, for which its full
faith, credit, and taxing ,powers are pledged, together with tax increments
resulting from increases in assessed valuation of property witrin the
District.
Date and Maturities
The bonds will be dated December 1, 1982, will be in denomination
of $5,000 each and will mature on February I in the following years and
amounts:
Year
Amount
Year
Amount
1985
$ 50,000
1990
$600,000
1986
50,000
1991
700,000
1987
200,000
1992
700,000
1988
400,000
1993
700,000
1989
500,000
Redemption Feature
All bonds of this issue maturing after February 1, 1990 will be
subject to prior redemption at the option of the City in inverse order of
serial numbers on said date and any interest payment date thereafter at a
price of par plus accrued interest to date of redemption.
Interest
Interest on the bonds will be payable on August 1, 1983, and
semiannually thereafter on each February 1 and August 1. All bonds
maturing on the same date must bear interest from date of issue until paid
at a single, uniform rate, not exceeding the rate specified for bonds of
any subsequent maturity. Each rate must be in an integral multiple of
,.; 5/100 of 1%, and no rate of interest nor the set effective average rate of
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Res. No. 82-577
the issue may exceed the maximum rate of interest permitted by law on the
day of sale.
Paying Agent
Principal and interest will be made payable at any suitable bank
recommended by the purchaser and approved by the Council, and the City will
pay the customary charges for this service provided that such recommenda-
tion is received within 48 hours after the sale and the Council will select
the paying agent if the recommendation is not approved.
CUSIP Numbers
The City will assume no obligation for the assignment or printing
of CUSIP numbers on the bonds or fur the correctness of any numbers printed
thereon, but will permit such numbers to be assigned and printed at the
expense of the purchaser, if the purchaser waives any extension of the time
of delivery caused thereby.
Delivery
Within 40 days after sale, the City will furnish and aeliver to
the office of the purchaser or, at his option, will deposit with a bank in
the United States selected by him and approved by the City as its agent to
permit examination by and to deliver to the purchaser, the printed and
executed bonds, the unqualified opinion thereon of bond counsel, and a
certificate stating that no litigation in any manner questioning their
validity is then_ threatened or pending. The charge of the delivery agent
must be paid by the purchaser, but all other costs will be paid by the
City. The purchase price must be paid upon delivery of the bonds, or
within five days after deposit with the delivery agent, in funds available
for expenditure by the City on the day of payment.
Legal Opinion
An unqualified legal opinion on the bonds will be furnished by
LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association,
Minneapolis, Minnesota. The legal opinion will be printed on the bonds at
the request of the purchaser. The legal opinion will state that the bonds
are valid and binding general obligations of the City, payable primarily
from tax increments, and that the City is obligated and required to levy
taxes for the principal and interest thereon as the same become due without
limit as to rate or amount.
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned and
must be received prior to the time of said meeting. Each bid must be
unconditional and must be accompanied by a cashier's or certified check or
bank draft in the amount of $78,000, payable to the City Finance Director,
to be retained by the City as ligt.idated damages if the bid is accepted and
the bidder fails to comply therewith. The good faith check will be
def osited by the City at the time of award and deducted from the purchase
price of the bonds at delivery. The bid authorizing the lowest net
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Res. No. 82-577
interest cost (total interest from date of bonds to stated maturities, less
any cash premium or plus any amount less than $3,900,000 bid for principal)
will be deemed the most favorable. No oral bid and no bid of less than
$3,825,000 for principal plus accrued interest on all of the bonds will be
considered, and the City reserves the right to reject any and all bids and
to waive any informality in any bid.
BY ORDER OF THE CITY COUNCIL
/s/ Laurie Houk
City Clerk
Dated: November 1, 1982
1
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Res. No. 82-577
3. In order to comply with the provisions of Minnesota Statutes,
Section 475.54, Subdivision 1, the maturity schedule of the Bonds is hereby
combined with the maturity schedule of the City's $1,300,000 General Obli-
gation Improvement Bonds of 1982, dated September 1, 1982, all as provided
in Minnesota Statutes, Section 475.54, Subdivision 2.
4. The City Clerk is authorized and directed to advertise the Bonds
for sale in accordance with the foregoing notice of sale and to cause the
abbreviated notice of sale attached hereto as Exhibit "A", to be published
in the manner required by law. The City Council shall meet on Monday,
November 15, 1982, at 7:30 o'clock p.m. for the purpose of considering
sealed bids on the Bonds an! taking any other appropriate action.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Moen , and upon vote being
taken thereon, the following voted in favor: Mayor Davenport, Councilmembers
Moen, Neils, Schneider and Threinen
and the following voted against: none
whereupon said resolution was declared duly passed and adopted.