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HomeMy WebLinkAboutCity Council Resolution 1988-677Extract 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, October 3, 1988, commencing at 7:30 P.M. The following members of the Council were present: Mayor Virgil Schneider, Council Members Lloyd Ricker, Maria Vasiliou, Robert Zitur, Jerry Sisk and the following were absent: None. ' The following resolution was presented by Councilmember Sisk who moved its adoption: RESOLUTION NO. 88-677 - RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,050,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS OF 1988 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 City Development District No. 3 (Project Area) pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and Sections 469.174 through 469.179 (collectively, the Act). (b) the City has duly established a tax increment financing ' district (TIF District) within the Project Area pursu- ant to the Act. Resolution No. 88-677 (c) the City is authorized by Section 469.178 of the Act to issue and sell its general obligations to pay all or a portion of the public redevelopment costs (Redevelop- ment Costs) related to the Project Area as identified In the redevelopment plan (Plan) for the Project Area, which Redevelopment Costs are as follows: Public Improvements: Land Acquisition Administration Expenses Capitalized Interest Subtotal Discount Bond Issue Redevelopment Cost 809,500 33.375 186,625 1,029,500 20,500 1,050,000 (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $1,050,000 General Obligation Taxable Tax Increment Bonds of 1988 to provide financing for the Redevelop- ment Costs. 2. In order to provide financing for the Redevelopment Costs, the City will therefore issue and sell Bonds in the amount of $1,029,500. 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 $20,500. The excess of the purchase price of the Bonds over the sum of $1,029,500 will be credited to the debt service fund for the Bonds for the purpose of paying interest first coming due on the additional Bonds. The Bonds will be issued, sold qnd delivered in accordance with the terms of the following Official Notice of Sale: Resolution No. 88-677 OFFICIAL NOTICE OF SALE $1,050,000 General Obligation Taxable Tax Increment Bonds of 1985 City of Plymouth Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the above bonds will be received until 6:30, p.m., C.T. on Monday, November 7, 1988, in the offices of the Plymouth City Clerk at City Hall 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: Purpose and Security The purpose of the bonds is to provide funds for the finan- cing of public redevelopment costs in a redevelopment project area in the City. rhe 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 Area. Date and Maturities The bonds will be issued in fully registered form, will be dated November 1, 1988, will be in denominations of integral multiples of $5,000 each and will mature on February 1, in the years and amounts as follows: Year Amount Year Amount 1992 $25,000 1996 $200,000 1993 50,000 1997 225,000 1994 100,000 1998 300,000 1995 150,000 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 cn the bonds will be payable on August 1, 1989, and semiannually thereafter on each February 1 and August 1. Bonds maturing on the same date must bear interest from date of issue until Resolution No. 88-677 . 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 lf. Registrar 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 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 cubtomary 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. 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 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 LeFevers, Lefler, Kennedy, O'Brien b Drawz, 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. 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 $21.000 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 6 Trust Company, ABA l09-19-0550-6 for further credit to Ehlers and Associates, Inc.. Resolution No. 88-677 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 bonds. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities less any cash premum or plus any discount) will be deemed the most favorable. No oral bid and no bid of less than $1,029.500 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 Rauenhorst City Clerk Dated: October 3. 1988. Resolution No. 88-677 NOTICE OF BOND SALE $1,050,000 GENERAL OBLIGATION TAXABLE TAR INCREMENT BONDS OF 1988 CITY OF PLYMOUTH, HENNEPIN COUNTY, MINNESOTA Exhibit A 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, November 7, 1988. in the offices of the Plymouth City Clerk at City Hall at which time the bids will be opened and tabulated for conal- deration 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 November 1, 1988, will bear interest payable semiannually on each February 1 and August 1, commencing August 1. 1989, and will mature on Februar; 1 in the years and amounts as follows: Year Amount Year 1992 $25,000 1996 1993 50,000 1997 1994 100,000 1998 1995 150,000 I%* City may elect on February 1, 1994, or date thereafter to redeem and prepay bonds In part, in inverse order of maturities and maturing on or after February 11, 1995, at a Interest to date of redemption. Amount $200,000 225,000 300,000 on any interest payment of tbis issue in whole or by lot within maturities, price of par plus accrued Bidders must specify a price of not less than $1.029,500 plus accrued Interest. A legal opinion on the bonds will be furmisbad by Lelsvers, Lefler, Kennedy, O'Brien i Draws, a Professional Association. Mim:eapolis, Minnesota. The proceeds of the bonds will be used to finance public redevelopment costs related to a tax increment financing district in the City. Resolution No. 88-677 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 ORDEL OF THE CITY COUNCIL /s/ Laurie Rauenhorst City Clerk Dated: October 3, 1988. Resolution No. 88-677 3. The City 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, November 7, 1988, to consider bids on the Bonds and take any other appropriate action with respect to the Bonds. 4. For the purposes of Minnesota Statutes, Section 475.54, subd. 1, the maturities of this issue have been combined with those of the City's $2,175,000 General Obligation Tax Increment Financing Bonds, Series 1986A. 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, Members Ricker, Vasiliou, Zitur, Sisk and the following voted against: None. whereupon the resolution was declared duly passed and adopted.