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.