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HomeMy WebLinkAboutCity Council Resolution 1986-430Extract 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, July 21, 1986, commencing at 7:30 o'clock D.M. The following members were present: Mayor Schneider, Councilmembers Crain, Sisk, Vasiliou, and Zitur and the following were absent: none The following resolution was presented by Councilmember Crain who moved its adoption: RESOLUTION NO. 86-430 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,175,000 GE"'ERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1986A BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin County, Minnesota (City) as follows: 1. It is hereby determined: (a) The City has duly established Development District No. 3 (District) pursuant to Minnesota Statutes, Chapter 472A. (b) The City has duly established Economic Development Tax Incr-went Financing District No. 3-1 (TIF District) Resolution No. 86-430 Page Two within the District pursuant to Minnesota Statutes, Sections 273.71 to 273.77 (TIF Act). (c) The City is authorized by Section 273.77 of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development costs (Costs) related to the TIF District as identified in the Tax Increment Financing Plan (TIF Plan) for the TIF Dis- trict. (d) The TIF Plan lists the following costs to be financed by the general obligations: Public Improvements 1986 Improvements Segment A Creek to South Shore) 1987 Improvements Segment C 8th Avenue 1986 Improvements Segment E Avenue and C.S.A.H. 18) Total public improvements Administration/Organization Subtotal Discount allowance Finance related fees Capitalized interest Bond Issue (10th Ave. - Bassett (Quaker Lane to (Improvements 13th $ 921,813 279,813 590,106 $1,791,732 15,000 $1,806,732 30,000 24,000 314 268 $2,175'.000 (e) It is necessary and expedient to the sound financial management of the affairs of the City to issue $2,175,000 General Obligation Tax Increment Bonds, Series 1986A (Bonds) to provide financing for the Costs. 2. In order to provide financing for the Costs, the City shall therefore issue and sell Bonds in the amount of $2,142,375. 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 $32,625. :.ny excess of the purchase price of the Bonds over the sum of $2,142,375 shall be credited to the debt service fund for the 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: Resolution No. 86-430 Page Three OFFICIAL NOTICE OF SALE $2,175,000 General Obligation Tax Increment Bonds, Series 1986A City of Plymouth Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that the City Council of the City of Plymouth, Minnesota, will consider sealed bids for the purchase of $2,175,000 General Obligation Tax Increment Bonds of the City at 8:00 p.m., C.T. at a regular Council meeting on Monday, August 4, 1986, on the following terms. Purpose and Security The purpose of the bonds is to provide funds for the finan- cing of public development costs in an economic development tax increment financing district in the City. The bonds will be general obligations of the City, for which its full faith, credit and taxing powers are pledged together with tax increments from the district. Date and Maturities The bonds will be issued in fully registered form, will be ra dated August 1, 1986, will be in integral multiples of $5,000 each and will mature on February l in the following years and amounts: Year Amount Year Amount 1990 $225,000 1993 $375,000 1991 300,000 1994 425,000 1992 350,000 1995 500,000 Redemption The City may elect on February 1, 1993 and any interest payment date thereafter, to prepay in whole or in part in inverse order of maturity, bonds due on or after February 1, 1994 at a price of par plus accrued 4nte,est. If prepayment is in part the specific bonds to be prepaid will be selected by lot by the Registrar. Interest Interest on the bonds will be payable on February 1, 1987, and semiannually thereafter on each August 1 and February 1. All bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, and no rate for any maturity may exceed the rate specified for any subsequent maturity by more than one . percent. Each rate must be in an integral multiple of 1/20 or 1/8 of 12, and no rate of interest nor the net effective average rate of the Resolution No. 86-430 Page Four issue may exceed the maximum rate of interest permitted by law on the day of sale. Paying Agent The City will name the Registrar which shall be eubject to applicable SEC regulations. Principal will be payable at the prin- cipal 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 th,reby. Delivery Within 40 days after sale, the City will furnish and deliver to the office of the purchaser or, at its option, will deposit with a bank in the United States selected by it 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 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 b Drawz, a Professional Associa- tion of Minneapolis, Minnesota. The legal opinion will be printed a the bonds at the request of the purchaser. The legal opinion will state that the be -ids 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. Type of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time of acid meeting. Each bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $43,500, 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 interest from date of Resolution No. 86-430 Page Five bonds to stated maturities, less any cash premium or plus any amount . less than $2,175,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $2,142,375 for princi- pal 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: July 21, 1986. BY ORDER. OF THE CITY COUNCIL /s/ Laurie iiwi­b%_C ., V Citye : t. tie. 0, Resolution No. 86-430 Page Six 103. Mhe action of the City Clerk in publishing the abbreviated notice of sole attached hereto as Exhibit A are ratified and con- firmed. The City Council shall meet on Monday, August 4, 1986, to consider bids on the Bonds and take any other appropriate action. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Vasiliou and upon vote being taken thereon, the following voted in favor of the motion: Mayor Schneider, Councilmembers Crain, Sisk, Vasiliou, and Zitur and the following voted against: none whereupon said resolution was declared duly passed and adopted. Resolution No. 86-430 Page Seven EXHIBIT A . NOT:CE OF BUND SALE $2,175,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1986A CITY OF PLYMOUTH, MINNES.?TA HENNEPIN COUNTY These bonds will be offered for sale on sealed bids on Monday, AUGUST 4, 1986 Bids will be opened and tabulated for consideration and award by the City Council at 8:00 p.m., C.T., at a regu:ar meeting of the City Council on that date.. The Bonds will be dated'August 1, 1986, will bear iaterest payable semiannually on each February 1 and August 1 to maturity, commencing February 1, 1987, and will mature on February 1 in the amounts and years as follows: Year Amount Year Amount 1990 $225,000 1993 $375,000 1991 300,000 1994 425,000 1992 350,000 1995 500,000 The City may elect on February 1, 1993 and on any interest payment date thereafter to prepay bonds of this issue maturing on or after ID February 1, 1994 at a price of par plus accrued Interest. No rate of interest nor the net effective rate of the issue may exceed the maximum rate permitted by law. Bidders must specify a price of not less than $2,142,375 plus accrued interest. A legal opinion on the Bonds will be furnished by LeFevere, Lefler, Kennedy, O'Brien 5 Drawz, a Professional Association, Minneapolis, Minnesota. The proceeds of the Bonds will be used to finance a portion of the public redevelopment costs of public improvements in an economic tax increment financing district in the City. Bidders should be aware that the Official Statement to be published for the Bonds may contain additional bidding terms and information relative to the Bonds. In the event of a variance between statements in this Notice of Bond Sale and said Official Statement, the provi- sions of the latter shall be those to be complied with. BY ORDER OF THE CITY COUNCIL /s/ Laurie iiwk�rw , City Clerk Dated: July 16, 1986. Resolution No. 86-430 Page Eight . STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) 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 a regular meeting of the City Council of said City held on Monday, July 21, 1986, with the original thereof on file in my office and the same is a full, true and correct copy thereof, insofar as the same relates to the issuance and sale of $2,175,000 General Obligation Tax Incre- ment Bonds, Series 1986A, of the City. WITNESS My hand as such City Clerk and the corporate seal of ® the City this 29th day of July , 1986. City Clerk City of Plymouth, Minnesota (SEAL) 00660786.RAU