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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). Page 2 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 Page 4 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 Page 5 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 Rage 6 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.