HomeMy WebLinkAboutCity Council Resolution 1984-099,:. Extract 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, February 27, 1984, commencing at 7:30
o'clock P.M.
The following members were present: Mayor Davenport, Councilmembers
Schneider and Crain
and the following were absent: Councilmembers Moen and Neils
*,r* *rr ••,t
The following resolution was presented by Councilmember Schneider
who moved its adoption:
RESOLUTION NO. 84-99
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $7,000,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1984
BE IT RESOLVED By the City Council of the City of Plymouth,
Hennepin County, Minnesota (City) as follows:
Section 1. Findings: Costs.
1.01. The City has duly established Development District No. 1
(District), Economic Tax Increment Financing District No. 1 (TIP
District), and adopted a Tax Increment Financing Plan (TIF Plan) for
the TIF District all pursuant to Minnesota Statutes, Chapters 472A and
475, and Sections 273.71 to 273.78 (collectively, Act).
RES N0. 84-99
1.02. The purpose of the TIF Plan is to provide financing for
the public development costs (Costs) of various public improvements
(Project) to be constructed in the District.
1.03. The Costs for the various elements of the Project as
identified in the T_IF Plan are presently estimated to be as follows:
Tax Increment Financing District No. 1 (Phase I)
Development District No. 1
Estimated Project Costs for I-494
Interchange with County Road 15, Countv Road 61 Project
Acquisition, Right of Way
$ 625-,000
Public Improvements
4,200,000
Subtotal
$4,825,000
Less: Grant Hennepin County 200,000
Special Assessments 176,000
(376,000)
Professional Services
Design and Inspection
630,000
Legal and Fiscal
70,000
Contingency of Construction
81991
Administration of Total
315,000
Total
$5,472,991
Revenue from Investment Income (361,439)
Net $5,111,552
Interest on Bonds prior to receipt of tax
increment to fully fund principal and interest 1,785,000
Discount 103,448
Total Amont of Bonds to be sold $7,000,000
Revenue from property sales 0
Bonds Payable from Tax Increment $7,000,000
1.04. It is necessary and desirable to the sound financial
management of the city and its orderly economic development that the
City issue and sell its General Obligatinn Tax Increment Bonds of 1984
pursuant to the Act to provide financing for the Costs.
Page 2
2.01. In order to provide financing for the Project, the City
shall therefore issue and sell Bonds in the amount of $6,896,552. 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 $103,448. Any excess of the purchase price of the Bonds over the
sum of $6,896,552 shall be credited to the debt service fund for t` -
Bonds for the purpose of paying interest first coming due on such
additional Bonds. The Bonds shall be issued and sold in accordance
with the terms of the following Official Notice of Sale:
. RES N0. 84-99 Page 4
OFFICIAL
• NOTICE OF SALE
$7,000,000 General Obligation Tax Increment Bonds of 1984
City of Plymouth
Hennepin County, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of
the above bonds will be received until 6:30 p.m. C.T. on Monday,
March 26, 1984 at the office of the City Manager in City Hall in
Plymouth, Minnesot.., at which time the bids will be opened and
tabulated for presentation to the City Council at a regular meeting at
7:30 p.m. C.T. on the same day. The bonds are offered on the
following terms:
Purpose and Security
The purpose of the bonds is to provide funds to finance
public development costs of various public improvements in Development
Listrict No. 1 in the City. The bonds will be general obligations of
the City for which its full faith, credit and taxing powers will be
pledged together with tax increments from an economic tax increment
financing district in the City. The principal and interest on the
bonds will be further secured by a surety and indemnity bond of St.
Paul Fire and Marine Company, St, Paul, Minnesota.
Date and Maturities
The bonds will be issued in fully registered form, will be
dated April 1, 1984, will be in denominations of integral multiples of
$5,000 each and will mature on April 1 in the following years and
amounts:
Year
Amount
Year
Amount
1987
$25,000
1991
$ 25,000
1988
25,000
1992
25,000
1989
25,000
1993
425.000
1990
25,000
1994
6,425,000
Redemption Feature
All bonds of this issue maturing after April 1, 1991 will be
subject to prior redemption at the option of the City in inverse order
of maturities to be selected by lot by the Registrar on said date and
any interest payment date thereafter at a price of par plus accrued
interest to date of redemption.
RES NO. 84-99
Interest
Interest on the bonds will be payable on October 1, 1984,
and semiannually thereafter on each April 1 and October 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 rata must be in an integral
multiple of 1/20 of 1%, and no rate of interest nor the net effective
average rate of the issue may exceed the maximum rate of interest
permitted by law on the day of sale.
Paying Agent -Registrar
The City will name the Registrar. Principal will be payable
at the principal office of the Registrar and interest will be payable
by check or draft of the Registrar mailed to the registered holder of
a bond. The City will pay the reasonable and customary charges for
the services of the Registrar.
CUSIP Numbers
The City will assume no obligation for the assignment or
printing of CUSIP numbers on the bonds or for 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 deliver
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 examina,.on 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, 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 LePevere, Lefler, Kennedy, O'Brien S Drawz, a Professional Associa-
tion, 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, 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.
Page 5
Page 6
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned
must be received prior to the time of said meeting. Each bid must
oe unconditional and must be accompanied by a cashier's or certified
check or bank draft in the amount of $140,000, payable to the City
Finance Director, to be retained by the City as liquidated damages if
the bid is accepted and the bidder fails to comply therewith. The bid
authorizing the lowest net interest cost (total intere t from date of
bonds to stated maturities, less anv cash premium or plus any amount
less than $7,000,000 bid for principal) will be deemed the most
favorable. No oral bid and no bid of less than $6,896,552 for prin-
cipal 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.
Dated: February 27, 1984
BY ORDER OF THE CITY COUNCIL
/s/ Laurie Houk
City Clerk
RES NO: 84-99
Page 7
2.02. The City Clerk is authorized and directed to advertise
the Bonds for sale in accordance with the foregoing official Notice of
Sale and to cause the abbreviated notice of sale attached hereto as
Exhibit A, to be published in the manner requried by law. The City
Council shall meet on Monday, March 26, 1984, at 7:30 o'clock p.m.,
for the purpose of considering sealed bids on the Bonds and taking any
other appropriate action.
2.03. In order to conform to the requirements of Section 475.54,
Subdivisions I and 2, the maturity schedule of the Bonds is combined
with the maturity schedules of all of the outstanding general
obligation bonds of the City.
The motion for the adoption of the foregoing resolution was
• duly seconded by Councilmember Crain and upon vote
being taken there��'.. the following voted in favor of the motion: Mayor Davenport,
Councilmembers Schneider and Crain
and the following voted against: none
whereupon said resolution was declared duly passed and adopted.
7---�--�-- .
RES NO..84-99 Page 8
Exhibit A
NOTICE OF SALE
$7,000,000 General Obligation Tax Increment Bonds of 1984
City of Plymouth
Hennepin County, Minnesota
Sealed bids for these bonds will be opened by the Citv
Manager on Monday, March 26, 1984, at 6:30 o'clock p.m., C.T., for
consideration and award by the City Council at 7:30 o'clock p.m. at
the City Hall in Plymouth, Minnesota. Dated April 1, 1984, [he bonds
will mature on April 1 in the years and amounts as follows:
Year Amount Year Amount
1987 $"5,000 1991 $ 25,000
1988 25,000 1992 25,000
1989 25,000 1993 425,CJ0
1990 25,000 1994 6,425,000
Bonds maturing after April 1, 1991 are subject to prior redemption on
• said date and any interest payment date thereafter at par plus accrued
Interest. Interest will be payable on October 1, 1984, and
semiannually thereafter. Each rate must be in an integral multiple of
1/20 of 1% and no rate may exceed the maximum rate of interest per-
mitted by law on the day of sale. Minimum price, $6,896,552. An
unqualified legal opinion will be furnished by LeFevere, Lefler,
Kennedy, O'Brien b Drawz, a Professional Association, Minneapolis,
Minnesota. The purpose of the bonds is to finance public development
costs in an economic tax increment financing district in the City.
Dated: February 27, 1984
BY ORDER OF THE CITY COUNCIL
/s/ Laurie Houk
City Clerk
Page 9
_RES N0. 84-99
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS.
)
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting City
Clerk of the City of Plymouth, Minnesota do hereby certify that I have
carefully compared the attached and foregoing extract of minutes of a
regular meeting of the City Council of said Citv held on Monday,
February 20, 1984, with the original thereof on file in my office and
the same is a full, true and complete transcript thereof, insofar as
the same relates to the issuance and sale of $7,000,000 General
Obligation Tax Increment Bonds of 1984, of the City.
WITNESS My hand as such City Clerk and the corporate seal of
the City this day of , 1984.
r1
L J
(SEAL)
0
City Clerk
City of Plymouth, Minnesota