HomeMy WebLinkAboutCity Council Resolution 1988-433aAfter due consideration of the bids, Member Sisk then
Introduced the following resolution and moved its adoption:
RESOLUTION NO. 88-433
A RESOLUTION AWARDING THE SALE OF $1,025,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1988A;
FIXING THEIR FORD! AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Plymouth, Hennepin
County, Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The bid of _Cronin and Company, Inc. (Purchaser)
to purchase $1,025.000 General Obligation Tax Increment Bonds, Series 1988A
(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 pursu-
ant to duly advertised notice of sale and shall be and is hereby accepted.
the bid being to purchase the Bonds at a price of $1,015,313.75 plus
accrued interest to date of delivery. for Bonds bearing interest as fol -
Iowa:
Year of Maturity Interest Rate
1991
5.90%
1992
6.10%
1993
6.20%
1994
6.30%
1995
6.40%
1996
6.50%
Net effective interest rate: 6.5003%
1.02. The sum of $8,213.75 being the amount bid by the Purchaser
In excess of $1,007.100 shall be credited to the Debt Service Fund herein-
after created. The City Clerk is directed to retain the good faith check
of the Purchaser, pending completion of the sale of the Bonds, and to
return the good faith checks of the unsuccessful bidders forthwith. The
Mayor and City Manager are directed to execute a contract with the Purchas-
er on behalf of the City.
1.03. The City shall forthwith issue and sell the Bonds in the total
principal amount of $1,025,000, originally dated August 16. 1988, in the
denomination of $5,000 each or any integral multiple thereof, numbered No.
R-1, upward, bearing interest as above set forth, and which mature serially
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
1.04. Optional Redemption. The City may elect on February 1, 1994
and on any interest payment date thereafter to prepay Bonds maturing on or
after February 1, 1995. Redemption say be in whole or in part of the Bonds
subject_ to prepayment. If redemption is in part, those Bonds remaining
unpaid which have the latest maturity date will be prepaid first. If only
part of the Bonds having a common maturity date are called for prepayment
the specific Bonds to be prepaid will be chosen by lot by the Registrar.
All payments will be at a price of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds shall be issued only is 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,
unless (1) the date of authentication is an interest payment date to which
Interest has been paid or rude available for payment, in which case such
Bond shall be dated as of the date of authentication, or (ii) the date of
authentication is prior to the first interest payment date, in which case
such Bond shall be dated as of the date of original issue. The interest on
the Bonds shall be payable on February 1 and August 1 of each year, com-
mencing February 1, 1989, to the owner of record thereof as of the close of
business on the fifteenth day of the immediately preceding south, 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
written instrument of transfer, in form satisfactory to the Registrar,
duly executed by the registered owner thereof or by an attorney duly
' authorised 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 data.
(c) Exchange of Bonds. 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 Unauthorised 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 genuina and that
the requested transfer is legally authorised. The Registrar shall
Incur no liability for the refusal, in good faith, to make transfers
which it, in its judgment. deems improper or unauthorised.
(f) Persons Deemed Owners. The City and the Registrar my 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 rude 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 tax, fee or other govern-
mental charge required to be paid with respect to such transfer or
exchange.
(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 lien of and in substitution for any
such Bond destroyed, stolen or lost, upon the payment of ;he 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 such Bond was
destroyed, stolen or lost, and of the ownership thereof. and upon
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 to payment.
(1) 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 mailing a copy of the redemption notice
by first class mail (postage prepaid) not more than 60 and not less
than 30 days prior to the date fixed for redemption to the registered
owner of each Bond to be redeemed at the address shown on the reg.'s-
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 ;f any proceeding for the redemption of Bonds.
All Bonds so called for redemption gill cease to bear interest after
the specified redemption data. provided that the funds for the redemp-
tion are on deposit with the place of payment at that time.
2.04. Appointment of Initial Reb-strar. The City hereby appoints
the Finance Director of the City of Plymouth. Minnesota. as the initial
Registrar. In the event the Bonds are no longer registered in the name of
a securities depository as provided in Saction 3 the Finance Director may
continue as Registrar or the Mayor and the City Manager are authorized to
execute and deliver. on behalf of the City, a contract with a Successor
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
avant 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 the manual or facsimile 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 he 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 certif-
icate of authentication 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 rep-
resentative. The executed certificate of authentication on each Bond shall
be conclusive evidence that it has been authenticated and delivered under
this Resolution. 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. Temporary Bonds. The City may elect to deliver in lieu of
printed definitive Bonds, one or more typewritten temporary Bonds in
substantially the form set forth in Section 3 with such changes as may be
necessary to reflect more than one maturity in a single temporary bond.
Upon the execution and delivery of definitive Bonds, the temporary Bonds
shall be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds shall be printed or typewritten 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 1988A
Date of
Rate Maturity Original Issue CUSIP
August 16, 1988
No.
The City of Plymouth, Minnesota, a duly organised and existing munici-
pal corporation in Hennepin County, Minnesota (City), acknowledges itself
to be indebted and for value received hereby promisr,s to pay to
or registered assigns, the principal sum of f_ on the maturity
date specified above, with interest thereon from the date hereof at the
annual rate specified above, payable February 1 and August I in each year,
commencing February 1, 1989, to the person in whose name this Bond is
registered at the close of business on the fifteenth 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 the
Finance Director of the City of Plymouth. Minnesota, as Bond Registrar,
Paying Agent, Transfer Agent and Authenticating Agent, or the designated
successor Registrar under the Resolution described herein. For the prompt
and full payment of such principal and interest as the same respectively
become due, the full faith and credit and taxing power■ of the City have
been and are hereby irrevocably pledged.
The City may elect on February 1, 1994, and on any interest payment
date thereafter, to prepay Bonds of this issue maturing on or after Feb-
ruary 1, 1995. Redemption may be in whole or in part of the Bonds subject
to prepayment. If redemption is in part, those Bonds remaining unpaid
which have the latest maturity date will be prepaid first. If only part of
the Bonds having a common maturity date are called for prepayment the
specific Bonds to be prepaid will be chosen by lot by the Registrar. All
prepayments shall be at a price of par plus accrued interest.
The City Council has designated the Bonds as "qualified tax exempt
obligations" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986. as amended (the Code) relating to disallowance of
Interest expense for financial institutions and within the $10 million
limit allowed by the Code for the calendar year of issue.
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 or of an authorized representative.
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 manual or facsimile signatures of the Mayor and City Manager and has
caused this Bond to be dated as of the data set forth below.
Dated:
CITY OF PLYMOUTH, MINNESOTA
City Manager Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution men-
tioned within.
By
Authorized Representative
[Reverse of the Bond)
This Bond is one of an issue in the aggregate principal amount of
$1,025,000 all of like original issue date and tenor, except as to number,
maturity date, redemption privilege, and interest rate, all issued pursuant
to a resolution adopted by the City Council on August 1, 1988 (the Resolu-
tion), for the purpose of providing money to aid in financing the public
development costs of a project in a municipal development district
(District) development project in the City, pursuant to Minnesota Statutes,
Chapter 469, and the principal hereof and interest hereon are payable
primarily from tax increments resulting from increases in assessed valua-
tion of real property in tax increment financing districts in the Project
Area, as set forth in the Resolution to which reference is made for a full
statement of rights and powers thereby conferred. The full faith and
credit of the City are irrevocably pledged for payment of this Bond and the
City Council has obligated itself to levy additional ad valorem taxes on
all taxable property in the City in the event of any deficiency of tax
Increments pledged, which taxes may be levied 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
maturities.
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 Bond Registrar, 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 City's home rule charter and Consti-
tution 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 boon 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 statu-
tory limitation of indebtedness.
(Form of certificate to be printed on the reverse side of each Bond,
following a full copy of the legal opinion if the Bonds are in printed
form.)
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
CERTIFICATE OF REGISTRATION
(For use if Finance Director is Registrar)
This Bond has been registered as to principal and interest in the name
of the Registered Owner specified above on the registration book.i of the
City of Plymouth, Minnesota.
The following abbreviations, when used in the inscription on 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 (Cast Minor
TEN ENT -- as tenants
by entireties under Uniform Gifts or
Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act . .
not as tenants in cossion (State)
Additional abbreviations may also be used though not in the above
list.
ASSIGNMENT
For value received, the undersigned hereby sells, assio,ns and trans-
fers 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 promises.
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, without alteration or any change
whatever.
Signature Guaranteed:
Signatures) must be guaranteed by a national bank or trust company or by a
brokerage firm having a membership in one of the major stock exchantes.
The Bond Registrar will not effect transfer of this Bond unless the
Information concerning the assignee requested below is provided.
Name and Address:
include information for all joint owners if
this Bond is held by joint account.)
Please insert social security or
other identifying number of assignee
3.02. The City Clerk shall obtain a copy of the proposed approving
legal opinion of Wavers, Lefler, Kennedy, O'Brien i Draws, 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 Clark
to hereby authorised and directed to execute such certificate in the some
of the City upon receipt of such opinion and to file the opinion in the
City offices.
3.03. Book -Entry System; Limited Obligation of City. The Bonds shall
be initially issued in the form of a separate single typewritten or printed
fully registered Bond for each of the maturities set forth in Section 1.03
hereof. Upon initial issuance, the ownership of each such Bond shall be
registered in the registration books kept by the Bond Registrar in the name
of Cede 6 Co., as nominee for The Depository Trust Company, New York, New
York, and its successors and assigns (DTC ). Except as provided in
Section 3 hereof, all of the outstanding Son& shall be registered in the
registration books kept by the Bond Registrar in the name of Cede i Co., as
nominee of DTC.
3.04. With respect to Bonds registered in the registration books kept
by the Bond Registrar in the name of Cede 6 Co., as nominee of DTC, the
City, the Bond Registrar and the Paying Agent shall have no responsibility
or obligation to any broker dealers, banks and other financial institutions
from time to time for which DTC holds Bonds as securities depository (the
Participants) or to any other person on behalf of which a Participant holds
an interest in the Bonds, including but not limited to any responsibility
or obligation with respect to (i) the accuracy of the records of DTC, Cede
6 Co. or any Participant with respect to any ownership interest in the
Bonds. (ii) the delivery to any Participant or any other person other than
a registered owner of Bonds, as shown by the registration books kept by the
Bond Registrar, of any notice with respect to the Bonds. including any
notice of redemption, or (iii) the payment to any Participant or any other
person, other than a registered odner of Bonds, or any amount with respect
to principal of, premium, if any, or interest on the Bonds. The City, the
Bond Registrar and the Paying Agent say treat and consider the person in
whose name each Bond is registered in the registration books kept by the
Bond Registrar as the holder and absolute owner of such Bond for the
purpose of payment of principal, premium and interest with respect to such
Bond, for the purpose of registering transfers with respect to such Bond,
and for all other purposes. The Paying Agent shall pay all principal of.
premium, if any, and interest on the Bonds only to or on the order of the
respective registered owners, as shown in the registration books kept by
the Bond Registrar. and all such payments shall be valid and effectual to
fully satisfy and discharge the City's obligations with respect to payment
of principal of, premium, if any, or interest on the Bonds to the extent of
the sus or sums so paid. No person other than a registered owner of Bonds,
as shown in the registration books kept by the Bond Registrar, shall
receive a certificated Bond evidencing the obligation of the City to sake
payments of principal, premium, if any, or interest pursuant to this Bond
Resolution. Upon delivery by DTC to the Finance Officer of a written
notice to the effect that DTC has determined to substitute a new nominee in
place of Cede 6 Co.. and the words "Cede 6 Co.," shall refer to such new
nominee of DTC; and upon receipt of such a notice, the Finance Director
shall promptly deliver a copy of the same to the Bond Registrar and Paying
Agent, if the Bond Registrar or Paying Agent is other than the Finance
Officer.
3.05. Representation Letter. The fors of Representation Letter
proposed to be submitted to DTC, which is on file with the Finance Director
and presented to this sooting, is hereby approved, and the Finance Director
is authorised to execute and deliver the Representation Letter in substan-
tially the fors on file, with such changes therein not inconsistent with
law as the Finance Director and the City Attorney say approve, which
approval shall be conclusively evidenced by the execution thereof. Any
Paying Agent or Bond Registrar subsequently appointed by the City with
respect to the Bonds shall agree to take all action necessary for all
representations of the City in the Representation Letter with -respect to
the Bond Registrar and Paying Agent, respectively, to at all times be
complied with.
3.06. Transfers Outside Book -Entry System. in the event the City, by
resolution of the City Council. determines that it is in the beat interests
of the persons having beneficial interest in the Bonds that they be able to
obtain Bond certificates. the City shall notify DTC, whereupon DTC shall
notify the Participants, of the availability tbrough DTC of Bond certifi-
cates. In such event the City shall issue, transfer and exchange Bond
certificates as requested by DTC and may other registered owners in accor-
dance with the provisions of this resolution. DTC may determine to discon-
tinue providing its services with respect to the Bonds at any time by
giving notice to the City and discharging its responsibilities with respect
thereto under applicable law. In such event, if no successor securities
depository is appointed. the City shall issue and the Bond Registrar shall
authenticate Bond certificates in accordance with this Boni! Resolution and
the provisions hereof shall apply to the transfer, exchange and method of
payment thereof.
3.07. Payments to Cede 6 Co. Notwithstanding any other provision of
this Bond Resolution to the contrary, so long as any Bond is registered in
the name of Cede 6 Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on such Bond and all notices
with respect to such Bond shall be made and given, respectively, in the
manner provided in the Representation Letter.
Section 4. Payment: Security: Pledges and Covenants.
4.01. The Bonds shall be payable from the Series 1988A Increment
Bonds Debt Service Fund (Debt Service Fund) hereby created, and all tax
increments (Tax Increments) from Tax Increment Districts 1-2, I-2, 1-2A,
1-3, 1-4 and 1-5 in Development District No. 1 where the ptjject to be
financed by the Bonds is located received by the City are hereby pledged to
the Debt Service Fund to the extent necessary to pay principal of and
interest on the Bonds. There is hereby appropriated to the Debt Service
Fund the following amounts, together with any accrued interest incurred
with the purchase price of the Bonds:
Capitalized Interest $ 0
Excess Over Minimum Purchase Price 8,213.75
Total $ 8,213.75
4.02. It is hereby determined that the estimated collection of Tax
Increments for payment of principal and interest on 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 and that no tax levy is needed
at this time. 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 certificates required by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. 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
furnished, shall be deemed representations of the City as to the facts
stated therein.
5.02. The Hayor, Manage: =-,d Finance Director are hereby authorized
and directed to certify that the;, have examined the Official Statement pre-
pared and circulated in connection with the issuance and sale of the Bonds
and that to the best of their knowledge and belief the Official Statement
Is a complete and accurate representation of the facts and representations
made therein as of the date of the Official Statement.
Section 6. Tax. Covenant.
6.01. The City 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 the Internal Revenue Code of
1986, 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 action
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.
6..02. (a) The City shall comply with requirements necessary under
the Code to establish and maintain the exclusion from gross income of the
Interest on the Bonds under Section 103 of the Code, including without
limitation requirements relating to temporary periods for investments,
limitations on amounts invested at a yield greater than the yield on the
Bonds, and the rebate of excess investment earnings to the United States if
the Bonds (together with other obligations reasonably expected to be issued
In calendar year 1988) exceed the small -issuer exception amount of
$5,000,000.
(b) For purposes of qualifying for the small issuer exception to the
federal arbitrage rebate requirements, the City hereby finds, determines
and declares that the aggregate face amount of all tax-exempt bonds (other
than private activity bonds) issued by the City (and all subordinate
entities of the City) during the calendar year in which the Bonds are
Issued and outstanding at one time is not reasonably expected to exceed
$5,000,000, all within the meaning of Section 149(f)(4)(C) of the Code.
6.03. The City further covenants not to use the proceeds of the Bonds
or to cause or permit them or any of them to be used, in such a manner as
to cause the Bonds to be "private activity bonds" within the meaning of
Sections 103 and 141 through 150 of the Code.
6.04. In order to qualify the Bonds as "qualified tax-exempt obliga-
tions" within the meaning of Section 265(b)(3) of the Code, the City hereby
makes the following factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in
Section 141 of the Code;
(b) the City hereby designates the Bonds as "qualified tax-ex-
empt obligations" for purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations
(other than private activity bonds, treating qualified 501(c)(3) bonds
as not being private activity bonds) which will be issued by the City
(and all subordinate entities of the County) during calendar year 1988
will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City
during calendar year 1988 have been designated for purposes of Section
265(b)(3) of the Code.
6.05. The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designa-
tions made by this section.
The motion for the adoption of the foregoing resolution was duly
seconded by Member Ricker , and upon vote being taken
thereon, the following voted in favor thereof: Mayor Virgil Schneider,
Lloyd Ricker, Maria Vasiliou, Robert Zitur, Jerry Sisk
and the following voted against the same: None.
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS.
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting Clerk of the
City of Plymouth, Hennepin County, Minnesota, do hereby certify that I have
carefully compared the attached and foregoing extract of minutes of a
regular meeting of the City Council of the City held on August 1, 1988 with
the original minutes on file in my office and the extract is a full, true
and correct copy of the minutes insofar as they relate to the issuance and
sale of $1,025,000 General Obligation Tax Increment Bonds, Series 1988A of
the City.
WITNESS My hand officially as such Clerk and the corporate seal of the
City this 1st day of August , 1988.
-City Clerk
Plymouth, Minnesota
(SEAL)
P5:00660788.RAW
Extract 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, Minnesota, was duly held in the City Hall in
said City on Monday, August 1, 1988, commencing at 7:30 o'clock P.M.
The following members were present: Mayor Virgil Schneider, Lloyd Ricker,
Maria Vasiliou, Robert Zitur, Jerry Sisk
and the following were absent: None.
The Mayor announced that the next order of business was consideration of
the bids which had been received for the purchase of the City's $3,950,000
General Obligation Improvement Bonds, Series 1988A, as advertised for sale. The
City Clerk presented affidavits showing publication of the notice of sale in the
City's official newspaper and in Commercial West, a financial paper published in
Minneapolis, Minnesota, which affidavits were examined and found satisfactory
and ordered placed on file.
The City Clerk presented a tabulation of the bids which had been received
In the manner specified in the Official Notice of Sale of the Bonds. The bids
were as follows:
See Bid Tabulation Attached
BID TABULATION
$3,950,000 General Obligation Improvement Bonds, Series 1988A
City of Plymouth, Minnesota
SALE: Monday, August 1, 1988
AWARD: HARRIS TRUST AND SAVINGS BANK
RATING: Moody's "Aa"
NAME OF BIDDER
HARRIS TRUST AND SAVINGS BANK
Chicago, Illinois
BEAR. STEARNS & COMPANY
Chicago. Illinois
United Missouri Bank of Kansas City
The Exchange National Bank of Chicago
One Milwaukee. N.A.
lWhinson. Shockey. Erley & Company. Inc.
CRONIN & COMPANY, INC.
Minneapolis, Minnesota
MERRILL LYNCH CAPITAL MARKETS
Chicago, Illinois
MILLER SECURITIES, INC.
Minneapolis. Minnesota
DAIN BOSWORTH, INC.
Minneapolis, Minnesota
THE NORTHERN TRUST COMPANY
'Chicago, Illinois
SMITH BARNEY, HARRIS UPHAM
3 COMPANY, INC.
Minneapolis, Minnesota
BBI- 7.76%
COUPON NET INTEREST COST
RATE YEAR & RATE PRICE
5.80%
6.00%
6.20%
6.375%
6.50%
5.90%
6.10%
6.20%
6.30%
6.40%
1991
1992
1993
1994
1995
$1,125.564.64
6.4371%
$1,126,485.83
6.4424%
$3,916,820.00
$3.912,672.50
607 Merquem. Avenue
MinnMpdia. MN 55402
(612)330.6291
$3,950.000 C-ineral Obligation Improvement Bonds, Series 1988A
Clty of Plymouth, Minnesota •
Monday, August 1, 1988
Paae 2
COUPON
NET INTEREST COST
NAME OF BIDDER
RATE
YEAR
& RATE PRICE
PIPER, JAFFRAY & HOPWOOD INC.
5.875%
1991
$1,132,464.32 $3,912,475.00
Minneapolis, Minnesota
6.00%
1992
American National Bank & Trust Company
6.20%
1993
6.4766%
:- Robert W. Baird & Company, Inc.
6.40%
1994
Craig-Hallum, Inc.
6.50%
1995
Marquette Bank Minnepolis, N.A.
Peterson Financial Corporation
IN ASSOCIATION WITH -
NORWEST INVESTMENT SERVICES, INC.
Minneapolis, Minnesota
FBS CAPITAL MARKETS GROUP
Minneapolis, Minnesota
., Dougherty, Dawkins. Strand & Yost, Inc.
John G. Kinnard & Company, Inc.
M.H. Novick & Company, Inc.
McClees Investments, Inc.
_ SHEARSON LEHMAN HUTTON, INC.
5.90%
1991
$1,135,627.08 =3,914,450.00
Chicago. Illinois
6.10%
1992
PRUDENTIAL-BACHE CAPITAL FUNDING
6.25X
1993
6.4947%
Chicago, Illinois
6.40%
1994
DEAN WITTER REYNOLDS, INC.
6.50%
1995
Chicago, Illinois
BLUNT, ELLIS & LOEWI. INC.
6.00%
1991
$1,146,432.29 $3,906,550.00
Chicago. Illinois
6.10%
1992
GRIFFIN. KUBIK. STEPHENS & THOMPSON, INC.
6.25%
1993
6.5507%
Chicago. Illinois
6.40%
1994
6.50%
1995