HomeMy WebLinkAboutCity Council Resolution 1988-380Extract 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 the City on Monday, June 27, 1988, commencing at 7:30 P.M.
The following members of the Council were present:
Mayor Schneider, Councilmembers Vasiliou, Ricker, Zitur and Sisk
and the following were absent: None
The following resolution was , presented by Councilmember
Sisk who moved its adoption:
RESOLUTION NO. 380
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,025,000 GENERAL OBLIGATION
TAX INCREMENT BONDS, SERIES 1988A,
BE IT RESOLVED By the City Council of the City of Plymouth,
Hennepin County, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City has duly established Development District No.
1 (Project) pursuant to Minnesota Statutes, Chapter 469
(Act).
(b) the City has duly established tax increment financing
districts (TIF Districts) within the Project pursuant
to the Act. .
(c) the City is authorized by Section 469.178 of the Act to
issue and sell its general obligations to pay a portion
of the public development costs (Costs) related to the
Project as identified in the Development Program (Plan)
for the Project.
(d) the City has identified the following Costs to be
financed in part by the Bonds:
Project Costs (Estimated)
Property Acquisition
Engineering - Contingency
Construction Contracts
Total Project Cost
Costs to be Finance by Bonds of this Issue
Property Acquisition
Engineering
Construction
Issuance Expense
Subtotal
Discount Bonds
Total Bond Issue
$1,800,000
500,000
5 700 000
8,000,000
217,600
62,500
712,500
14,500
$1,007,100
17,900
;1,025,000
(e) it is necessary and expedient to the sound financial
management of the affairs of the City to issue
$1,025,000 General Obligation Tax Increment Bonds,
Series 1988A to provide a portion of financing for the
Costs.
2. In order to provide financing for the Costs, the City will
therefore issue and sell Bonds in the amount of $1,007,100. In order
to provide in part the additional interest required to market the
Bonds at this time, additional Bonds will be issued in the amount of
$17,900. The excess of the purchase price of the Bonds over the sum
of $1,007,100 will be credited to the debt service fund for the Bonds
for the purpose of paying interest first coming due on the Bonds. The
Bonds will be issued, solei and delivered in accordance with the terms
of the following Official Notice of Sale:
OFFICIAL NOTICE OF SALE
$1,025,000 General Obligation Tax
Increment Bonds, Series 1988A
City of Plymouth
Hennepin County, Minnesota
(Global Book Entry System)
NOTICE IS HEREBY GIVEN that sealed bids for the above bonds
will be received until 6:30, p.m., C.T. on Monday, August 1, 1988, in
the offices of the City Manager, City Hall, 3400 Plymouth Boulevard,
Plymouth, Minnesota 55447, at which time the bids will be opened and
tabulated for consideration by the City Council at a meeting at 7:30
p.m., C.T. on the same day. The bonds are offered on the following
terms:
Purpose and Securit
The purpose of the bonds is to provide funds for the finan-
cing of public redeve.&opment costs in an economic development project
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 project.
11 Date and Maturities
The bonds will be issued only in fully registered form, will
be dated August 16, 1988, will be in denominations of integral multi-
ples of $5,000 each and will mature on February 1, in the years and
amounts'as follows:
Year Amount
1991
$150,000
1992
150,000
1993
175,000
1994
175,000
1995
175,000
1996
200,000
Redemption
The City may elect.on.February 1, 1994 or on any interest payment
date thereafter to redeem and prepay bonds of this issue maturing on
or after February 1, 1995 at a price of par plus accrued interest to
date of redemption. Prepayment may be in whole or in part and will.be
in inverse order of maturities and by lot within maturities.
Interest
Interest on the bonds will be payable on February 1, 1989,
and semiannually thereafter on each August 1 and February 1. 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 rate must be in an integral
multiple of 1/20 or 1/8 of 1%.
Registration: Book Entry
Tile Bonds when issued will be registered in the name of Cede
& Co., as nominee of the Depository Trust Company, New York, New York
(DTC). DTC will act as securities depository for the Bonds. Individ-
ual purchases will be made in book entry form only in principal
amounts of $5,000 and integral multiples thereof. Purchasers will not
receive certificates representing their interest in the Bonds pur-
chased. Principal and interest will be paid by the City to DTC who
will in turn remit such principal and interest to its participants for
subsequent disbursement to the beneficial owners of the Bonds.
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 deliver the Bonds
to DTC and will deliver 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 pur-
chase 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 Prawz, 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 payable primarily from tax increments, and that the City is
required by law 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 established above for the
opening of bids. Each bid must be unconditional. A good faith
deposit in the amount of $20,500 must -be submitted with each bid-. The
good faith deposit must be in the form of a certified or cashiers
check or bank -draft or a wire transfer of funds to Resource Bank b
Trust Company, ABA i09-19-0550-6 for further credit to Ehlers and
Associates, Inc.., Bond Issue Escrow Account #850-788-1, attention
Nancy Allen. The good faith deposit will be retained by the City as
liquidated damages if the bid is accepted and the bidder fails to
comply therewith. The good faith deposit will be returned to the
purchaser at the closing for the blinds.. The bid authorizing the
lowest net interest cost (total interest from date of bonds to stated
maturities less any cash premium or plus any discount) will be deemed
the most favorable. No oral bid and no bid of less than $1,007,100
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 Rapenhorst
City Clerk
Dated: June 27, 1988.
' 3. The 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 required by law. The City Council will
meet at 7:30 p.m. on Monday, August 1, 1988, to consider bids on the
Bonds and take any other appropriate action with respect to the Bonds.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Zitur , and upon vote being
taken thereon the following members voted in favor of the motion:
Mayor Schneider, Councilmembers Vasiliou, Ricker, Zitur and Sisk
and the following voted against: None
whereupon the resolution was declared duly passed and adopted.
Exhibit A
NOTICE OF BOND SALE
$1,025,000
GENERAL OBLIGATION TAR INCREMENT
BONDS, SERIES 1988A
CITY OF PLYMOUTH,
HENNEPIN COUNTY, MINNESOTA
(GLOBAL BOOK ENTRY SYSTEM)
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, August
1, 1988, in the offices of the City Manager, City Hall, 3400 Plymouth
Boulevard, Plymouth, Minnesota 55447, at which time the bids will be
opened and tabulated for consideration by the City Council at a
meeting at 7:30 p.m. on the same day. The bonds are offered on the
following terms. The bonds will be dated August 16, 1988, will bear
Interest payable semiannually on each February I and August 1,
commencing February 1, 1989, and will mature on February 1 in the
years and amounts as follows:
Year Amount
1991
$150,000
1992
150,000
1993
175,000
1994
175,000
1995
175,000
1996
200,, 000
The City may elect on February 1, 1994 or on any interest payment date
thereafter to redeem and prepay bonds of this issue in whole or in
part, in inverse order of maturities and by lot within maturities,
maturing on or after February 1, 1995, at a price of par plus accrued
interest to date of redemption. The Bonds will be issued in Global
Book Entry form only.
Bidders must specify a price of not less than $1,007,100 plus accrued
Interest. A legal opinion on the bonds will be furnished by LeFevers,
Lefler, Kennedy, O'Brien 6 Drawz, a Professional Association, Minneap-
olis, Minnesota. The proceeds of the bonds will be used to finance
public development costs related to.a Municipal Development District
in the City.
Bidders should be aware that the Official Statement to be distributed
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 the Official Statement bidders must
comply with the terms of the latter.
BY ORDER OF THE CITY COUNCIL
/s/ Laurie Rauenhorst
City Clerk
Dated: June 27, 1988.