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HomeMy WebLinkAboutCity Council Resolution 1986-492RESOLUTION NO. 86-492 EXTRACT OF MINUTES OF MEETING OF THE . CITY COUNCIL OF THE CITY OF PLYMOUTH COUNTY OF HENNEPIN, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Plymouth. Minnesota, was duly held in the City Hall in the City of Plymouth, on Monday, August 18. 1986, cossmencing at 7:30 o'clock p.m., C.T. The following members of the Council were present: Mayor Schneider, Councilmembers Crain, Sisk, Vasiliou, and Zitur and the following were absent: none *�r* tee w•i The hour of 8:00 p.m. having arrived, the Mayor announced that the Council world now consider the bids which had been received for the pur- chase of the City's $2,175.000 General Obligation Tax Increment Bonds, Seri o 1986A, as advertised for sale. The City Clerk presented affidavits showing publication of notice of sale in the City's official newspaper, In Commercial West. and Finance and Commerce, financial papers published in Minneapolis, Minnesota, which affidavits were examined, found satisfactory and ordered placed on file. The City Clerk presented a tabulation of the bids which had been re- ceived in the manner specified in the Official Notice of Sale of the Bonds. The bids were as follows: Resolutioi, No. 86-492 Page Two After due consideration of the bids, Councilmember Sisk in- troduced the following resolution and moved its adoption: RESOLUTION NO. 86 -492 RESOLUTION AWARDING THE SALE OF $2,175,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1986A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT. BE IT :(ESOLVED By the City Council of the City of Plymouth, Minnesota, (City; as follows: Section 1. Sale of Bonds. 1.01. The bid of (Purchaser) to purchase $2;175,000 General Obligation Tax Increment Bonds, Series 1986A (Bonds) of the City described in the Official Notice of Sale thereof is hereby found and determined to be the highest and best bid received pur- suant to duly advertised notice of sale and shall be and is hereby accept- ed, the bid being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as fol- lows: Year of Interest Maturity Rate 1990 1991 1992 Net Effective Interest Rate: Reoffering yield: Year of Interest Maturity Rate 1993 1994 1995 The Finance Director is directed to retain the good faith check of the Purchaser pending completion of the sale and delivery of the Bonds, and to retu.-n the checks of the unsuccessful bidders forthwith. The sum of $ being the ar:ount offered by the Purchaser in excess of $2,142,375 shall be credited to the Debt Service Fund created by Section 3. The sum of $_ representing capitalized interest shall be credited to the Debt Service Fund established by Section 3. 1.02. The City shall forthwith issue and sell the Bonds in the total principal amount of $2,175,000, originally dated as of August 1, 1986, the . Bonds being in fully registered form and issued in the denomination of $5,000 or any integral multiple thereof, numbered no. R1 upward, Learing Resolution No. 86-492 Page Three interest as above set forth, and which Bonds mature serially on February 1 in the years and amounts as follows: YEAR AMOUNT YEAR AMOUNT 1990 $225,000 1993 $375,000 1991 300,000 1994 425,000 1992 350,000 1995 500,000 Bonds of this issue maturing in the years 1994 and 1995 are subject to redemption in whole or in part in inverse order of maturity at the option of the city on February 1, 1993 at par plus accrued interest. If less than all the bonds of a maturity are called for redemption the specific bonds to be prepaid will be chosen by lot by the Registrar. 1.03. The maturity schedule of the Bonds is hereby combined with the maturity schedule of the City's $4,725,000 General Obligation Improvement Bonds, Series 1986A, dated June 1, 1986 in order to comply with the provi- sion of Minnesota Statutes, Section 475.54. Section 2. Form: Registration. 2.01. Registered Form. The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof shall be payable by check or draft issued by • the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond shall be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, uc►less (1) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (1i) the date of authentication is prior to February 1, 1987, in which case such Bond shawl be dated as of August 1. 1986. The interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1, 1987, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corpo- rate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, trans- ferred or exchanged. • (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a Resolution No. 86-492 Page Four written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Sonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is pre- sented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar stall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof suffi- cient to reimburse the Registrar for any Lax, fee or other govern- mental charge requirsd to be paid with respect to such transfer or Puchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for an, such Bond destroyed, stolen or lost, upon the payment of the reason- able expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that suct. Bond was destroyed, stolen or lost, and of the ownership thereof, and upon Resolution No. 86-492 Page Five furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so sur- rendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior tc payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mriling a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to t.ie date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the regis- tration books kept by the Registrar and by publishing said notice in the manner required by law. Failure to give such notice by publica- tion or by mail to any registered owner, or any defect therein, will not affect the validity of any proceeding for the redemption of Bonds. All Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemp- tion are on deposit with the place of payment at that time. 2.04. Appointment of Initial Registrar. The City hereby appoints , Minnesota, as the initial Registrar. The Mayor and the Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Finance Director shall transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 2.05. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the Clerk and shall be executed on behalf of the City by t:_: signatures of the Mayor and the Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentica- tion on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The Resolution No. 86-492 Page Six executed certificate of authentication on each Bond shall be conclusive tvidence that it has been authenticated and delivered under this Resolu- tion. When the Bonds have been so prepared, executed and authenticated, the Finance Director shall deliver the same to the Purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.06. Form of Bonds. The Bonds shall be printed in substantially the following form: [Face of the Bond] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF PLYMOUTH GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1986A Date of Rate Maturity Original Issud CUSIP August 1, 1986 No. R The City of Plymouth, a duly organized and existing municipal corporation in Hennepin County, Minnesota (City), acknowledges itself to be indebted and for value received hereby promises to pay to or registered assigns the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, com- mencing February 1, 1987, to the person in whose name this Bond is regis- tered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by , as Bond Registrar, Transfer Agent, Authenticating Agent and Paying Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as tb- same respectively become due, the full faith and credit and taking powers of the City have been and are hereby irrevocably pledged. 10 Resolution No. 86-492 Page Seven Bonds of this issue maturing in the years 1994 and 1995 are subject to redemption in whole or in part in inverse order of maturity at the option of the city on February 1, 1993 at par plus accrued interest. If less than all the bonds of a maturity are called for redemption the specific bonds to be prepaid will be chosen by lot by the Registrar. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth in this place. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Plymouth, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF PLYMOUTH, MINNESOTA (facsimile) (facsimile) City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. By Authorized Representative [Reverse of the Bond] This Bond is one of an issue in the aggregate principal amount of $2,175,000, all of like original date and tenor, except as to number, maturity date, interest rate, and provision for redemption issued pursuant to a resolution adopted by the City Council -.i August 18, 1986 (the Resolu- tion), for the purpose of providing money .o finance the public development costs to be incurred by the City in an economic development tax increment financing district (District) in the City and is payable primarily from tax increments resulting from increases in the value of taxable property within Resolution No. 86-492 Page Eight the District, but constitutes a general obligation of the City and, to provide moneys for the prompt and full payment of said principal and interest as the same become due, the full faith and credit of the City is hereby irrevocably pledged, and the City Council will levy ad valorem taxes, if required for such purpose, which taxes may be levied on all of the taxable property in the City without limitation as to rate or amount. The bonds of this series are issued only as fully registered bonds in denominations of $5,000 or any integral multiple thereof of single matu- rities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bcni Rgistrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. (Form of certificate to be printed on the r_;erse side of each Bond, following a full copy of the legal opinion.) I certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel on the issue of Bonds of the City of Plymouth, Minnesota, which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. (Facsimile Signature) City Clerk Resolution No. 86-492 Page Nine The following abbreviations, when used in the inscription of the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Gust (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts to Minors JT TEN -- as joint tenants with right of survivorship and Act . . . . . . . . not as tenants in common (State) Additional abbreviations may also be used though not in the above list. ASSIGNHENT For value received, the undersigned hereby sells, assigns and transfers unto _ . —the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, with- out alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaraiteed by a national bank or trust company or by a brokerage firm having a aem.ership in one of the major stock exchanges. The Bond Registrar u'll not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: Resolution No. 86-492 Page Ten (Include information for all joint owners if this Bond is held by joint account) Please insert social security or other identifying number of assignee 2.07. The Clerk shall obtain a copy of the proposed approving legal opinion of LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis, Minnesota, which shall be complete except as to dating thereof and shall cause the opinion to be printed on each Bond, together with a certificate to be signed by the facsimile signature of the Clerk in substantially the form set forth in the form of Bond. The Clerk is hereby authorized and directed to execute such certificate in the name of the City upon receipt of such opinion and to file the opinion in the City offices. Section 3. Security: Payment. 3.01. The Bonds shall be payable from the Series 1986A Tax Increment Bonds Fund (Debt Service Fund) hereby created and the proceeds of all tax increments (Tax Increments) received by the City from Tax Increment Financ- ing District No. 3-1 (District) and special assessments (Assessments) for the public improvements to be constructed in and for the District are pledged to the Debt Service Fund. If any payment of principal and interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same the Finance Director shall pay such principal or interest from the general fund of the City and the general fund may be reimbursed for such advances out of the proceeds of tax increments and assessments when collected. 3.02. It is hereby determined that the estimated collections of Tax Increments and Assessments pledged to the payment of the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds. The City Clerk is directed to file a certified copy of this resolution with the Director of Property Taxation of Hennepin County, and obtain the certificate required by Minne- sota Statutes, Section 475.63. Section 4. Authentication of Transcript. 4.01. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and market- ability of the Bonds and such instruments, including any heretofore Resolution Pio. 86-492 Page Eleven furnished, shall be deemed representations of the City as to the facts stated therein. 4.02. The Mayor, Manager and Finance Director are hereby authorized and directed to certify that they have examined the Official Statement dated July 2.1, 1986, prepared and circulated in connection with the Issu- ance and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is, as of the date thereof, a complete and accurate representation of the facts and representations made therein as it relates to the City. 4.03. The City hereby covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under Internal Revenue Code of 1954, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take, or cause its officers, employees or agents to take, all affirmative actions within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made appli- cable to the Bonds. The City hereby designates the Bands as "qualified tax-exempt obligations" for purposes of Section 902(e) of the proposed Tax Reform Act of 1986 (H.R. 3838) as part of its $10,000,000 limitation on such obligations. 4.04. Pending the preparation of definitive Bonds, the !Mayor and Manager may execute, authenticate and deliver a temporary Bond or Bonds which are printed, lithographed, typewritten, mimeographed, or otherwise produced, in any denomination, substantially of the tenor of the definitive Bonds in lieu of which they are issued, in registered form, and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Bond or Bonds may determine, as evidenced by their signing of such Bond or Bonds. If a temporary Bond or Bonds are issued, the City s!:all cause definitive Bonds to be prepared without unreasonable delay. After the preparation of definitive Bonds, the tempo- rary Bond or Bonds shall be exchangeable for definitive Bonds upon surren- der of the temporary Bond or Bonds at the principal office of the Regis- trar, without charge to the holder. Upon surrender for cancellation of any one or more temporary Bonds the City shall execute and the Registrar ahall authenticate and deliver in exchange therefor a like principal amount of definitive Bonds of authorized denominations. Until so exchanged the temporary Bond or Bonds shall in all respects be entitled to the same benefits under this Resolution as definitive Bonds, and interest thereon, when and as payable, shall be paid to the holders of temporary Bonds upon presentation thereof for notatic. of such payment thereon. Resolution No. 86-492 Page Twelve The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Crain and upon vote being taken thereon, the following voted in favor thereof: Mayor Schneider, Councilmembers Crain, Sisk, Vasiliou, and Zitur aad the following voted against: none whereupon said resolution was declared duly passed and adopted.