HomeMy WebLinkAboutCity Council Resolution 1986-465Extract 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, August 4, 1986, commencing at 7.30
o'clock P.M.
The following members were present: Mayor Schneider, Councilntembc-rs Sisk,
Vasiliou, and Zitur
and the following were absent: Councilmember Crain
The following resolution was presented by Councilmember Sisk
who moved its adoption:
RESOLUTION NO. 86-465
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2,175,000 GENERAL OBLIGATION
TAX INCRfiMENT BONDS, SERIES 1986A
BE IT RESOLVED By the City Council of the City of Plymouth.
Hennepin County, Minnesota (City) as follows:
1. It In 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
Increment Financing District No. 3-1 (TIF District)
,'
Resolution No. 86-465
Page Two
vithin 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 (10th Ave. - Bassett
Creek to South Shore)
1987 Improvements Segment C (Quaker Lane to
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
(Improvements 13th
$ 921,813
279,813
590,106
$1,791,732
15j000
$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. Any 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:
Resolutipn No. 86-465
Page Three
OFFICIAL
• NOTICE OF SALE
$2,175,000 "Poral 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 7:00
p.m., C.T. at a regular Council meeting on Monday. August 18, 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
. dated August 1, 1986, will be in integral multiples of $5,000 each and
will mature on February 1 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 interest. If prapayment 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 asst 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
. 1Z, and no rate of interest nor the net effective average rate of the
Resolutipn No. 86-465
Page Four
Issue my 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 subject to
applicable SEC regulst+ons. 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 thereby.
Deltvery
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 6 Drawt, a Professional Associa-
tion of 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 some 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 $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
authorising the lowest net interest cost (total interest from data of
Resolution No. 86-465
Page Five
bonds to stated maturities. less any cash premium or plus any amount
less than $2.175.000 bid for principal) vill 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.
BY ORDER OF THE CITY COUNCIL
/a/ Laurie Brandt
City Clerk
Dated: July 31, 1986
Resolution•No. 86-465
Page Six
s. The action of the City Clerk in publishing the abbreviated
notice of sale 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 Zitur and upon vote being taken
thereon. the following voted in favor c the motion: Mayor Schneider,
Councilmembers Sisk, Vasiliou, and Zitur
and the following voted against: none
whereupon said resolution was declared duly passed and adopted.
Resolutign No. 86-465
Page Seven
EXHIBIT A
NOTICE OF BOND SALE
• $2,175,000
GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 198"
CITY OF PLYMOUTH, MINNESOTA
HENNEPIN COUNTY
These bonds will be offered for sale on sealed bids on Monday,
August 18, 1986
Bids will be opened and tabulated for consideration and Bward by the
City Council at 7:00 p.m., C.T., at a regular meeting of the City
Council on that date. The Bonds will be dated August 1, 1986, will
bear interest 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
February 1, 1994 at a price of par plus accrued interest.
•I 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 b
Draws, 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
/a/ Laurie Brandt
City Clerk
Dated: July 31, 1986