HomeMy WebLinkAboutCity Council Resolution 1986-756Extract 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 3, 1986, commencing at 7:30
o'clock P.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 Sisk
who moved its adoption:
RESOLUTION NO. 86- 756
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $823,000 GENERAL OBLIGATION TAXABLE
TAR INCREMENT BONDS, SERIES 19863
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
Increment Financing District No. 3-1 (TIF District)
Resolution No. 86-756
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:
Land Writedown
Net Land Acquisition ;674,000
Administrative/Organization 15,000
Subtotal $689,000
Discount allowance 12,375
Finance related fees 15,000
Capitalized interest 108,625
Bond Issue $825,000
(e) That it is necessary and expedient to the sound finan-
cial management of the zffairs of the City to issue
$825,000 General Obligation Taxable Tax Increment
10 Bonds, Series 1986E (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 $812,625. 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
$12.375. Any excess of the purchase price of the Bonds over the sum
of $812,625 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 Bor.ds shall be issued and sold in accordance with the
terms of the following Official Notice of Sale:
Resolution No. 86-756
Page Three
DOFFICIAL
NOTICE OF SALE
$825,000 General Obligation Taxable Tax Increment Bonds, Series
1986B
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
$825,000 General Obligation Taxable Tax Increment Bonds of the City at
7:30 p.m. C.T. at a regular Council meeting on Monday, November 17,
1986, on the following terms.
Purpose and Security
The purpose of the bonds is to provide funds for the financ-
ing of public development costs in an economic development tax incre-
ment 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 togerher with tax increments from the district.
Date and Maturities
. The bonds will be issued in fully registered form, will be
dated November 1. 1986, will be in integral multiples of $5,000 each
and will mature on Tebruary 1 in the following years and amounts:
Yea.!
Amount
Year
Amount
1990
$ 75,000
1993
$150,000
1991
125,000
1994
150,000
1992
125,000
1995
200,000
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 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 August 1. 1987, and
semiannually thereafter on each February 1 and August 1. All bonds
maturing on the same date snot bear interest from date of issue until
paid at a single, uniform rate, and no rate for any satur.ty say
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. 86-756
Page Four
issue may exceed the maximum rate of interest permitted by law on the
day of sale. The interest on the Bonds will be includible in the
gross income of the recipient for United States and Minnesota income
tax purposes.
Paying Agent
The City will name the Registrar which shall be subject to
applicable SEC regulations. Principal will be payable at the prin-
cipal office of the Registra, 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 ressonaule 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 or. 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 its option, will deposit with a
bink 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 Drawz, 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 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 $16,500, payable to the City
Resolution No. 86-756
Page Five
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
bonds to stated maturities, less any cash premium or plus any amount
less than $825,000 bid for principal) will be deemed the most favo-
rable. No orr_1 bid and no bid of less than $812,625 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 Brandt
City Clerk
Dated: November 1, 1986.
Resolution No. 86-75u
Page Six
i3. 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, November 17, 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 of the motion: Mayor Schneider,
Councilmetibers Crain, Sisk, Vasiliou, and Zitur
and the following voted against: none
whereupon said resolution was declared duly passed and adopted.