HomeMy WebLinkAboutCity Council Resolution 1988-901CITY OF PLYMOUTH
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Plymouth, Minnesota,
was held on the 19th day of December , 19_M. The following
members were present: Mayor Schneider, Councilmembers Vasiliou, Ricker
and Zitur
and the following members were absent: Councilmember Sisk
Councilmember Zitur introduced the following resolution and
moved its adoption:
RESOLUTION NO. 88-901
RESOLUTION ELECTING TO DESIGNATE
CERTAIN BONDS ISSUED IN 1986
AS "QUALIFIED TAX-EXEMPT OBLIGATIONS"
A. WHEREAS, the City of Plymouth, Minnesota (the "Issu-
er"), issued its $1,650,000 Water and Sewer Revenue Bonds, dated
June 1, 1986; $4,725,000 General Obligation Improvement Bonds,
dated June 1, 1986; and $2,175,000 Tax Increment Bonds, dated
August 1, 1986 (the "Bonds") while the federal Tax Reform Act of
1986 was pending with a retroactive effective date, specifically
on or after January 1, 1986, and on or before August 7, 1986; and
B. WHEREAS, when the Bonds were issued, the Issuer made a
designation that it intended to qualify the Bonds under Section
802(e)(3) of H.R. 3838 of the 99th Congress as passed by the
House of Representatives; and
C. WHEREAS, the Issuer covenanted to take such actions as
are necessary to effectuate such attempted designation; and
D. WHEREAS, for the Bonds to get the benefit of being
designated as "qualified tax-exempt obligations" under Section
265(b)(3) of the federal Internal revenue Code of 1986, as
amended (the "-Code"), it is necessary that the Issuer make an
Resolution No. 88-901
Page 2
election under subparagraphs (C) of Section 1009(b)(3) of the
federal Technical and Miscellaneous Revenue Act of 1988 ("TAMRA")
and designate the Bonds pursuant to subparagraph (B) of Section
1009(b)(3) of TAMRA and Section 265(b)(3) of the Code; and
E. WHEREAS, the Bonds qualify for such designation because
they are not private activity bonds (or, if private activity
bonds, are qualified 501(c)(3) bonds, or refunded bonds which
were not industrial development bonds or private loan bonds), the
Issuer with respect to bonds issued in 1986 is a "qualified small
issuer" of $10,000,000 or less of bonds, and not more than
$10,000,000 of bonds issued in 1986 have been designated:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Plymouth, Minnesota, as follows:
1. Election. The Issuer hereby makes an election with
respect to the Bonds under Section 1009(b) (3) (C) of the federal
Technical and Miscellaneous Revenue Act of 1988.
2. Designation of Qualified Tax -Exempt Obligations. In
order to qualify the Bonds as qualified tax-exempt obligations"
within the meaning of Section 265(b) (3) of the Code, the Issuer
hereby makes the following factual statements and representa-
tions:
(a) the Bonds are treated as issued on August 8, 1986,
because:
(i) the Bonds were issued on or after January 1,
1986, and on or before August 7, 1986,
(ii) when the Bonds were issued, the Issuer made a
designation that it intended to qualify the
Bonds under Section 802(e)(3) of H.R. 3838 of
the 99th Congress as passed by the House of
Representatives, and
(iii) the Issuer, in paragraph 1 above, has made
an election under Section 1009(b) (3) (C) of
TAMRA; and
(b) the Bonds are not "private activity bonds" as
defined in Section 141 of the Code, or, if private
activity bonds, they are:
(i) qualified 501(c)(3) bonds as defined in
Section 145 of the Code, or
(ii) obligations issued to refund (or which are
part of a series of obligations issued to
refund) obligations issued before August 8,
Resolution No. 88-901
Page 3
1986, which were not industrial development
bonds (as defined in Section 103(b)(2) of the
federal Internal Revenue Code of 1954, as
amended, as in effect on the day before the
date of the enactment of the federal Tax
Reform Act of 1986) or a private loan bond
(as defined in Section 103 (o) (2) (A) as so in
effect, but without regard to any exemption
from such definition other than Section
103 (o) (2) (A) ) ;
(c) the Issuer hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(d) at the time the Bonds were issued, the amount of
tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds
as not being private activity bonds) which had
been and were to be issued in 1986 by the Issuer
(and all entities treated as one issuer with the
Issuer, and all subordinate entities thereof)
during calendar year 1986 was not .reasonably
expected to exceed $10,000,000; and
(e) not more than $10,000,000 of obligatiori,s issued by
the Issuer during calendar year 1986 have been
designated for purposes of Section 265(b)(3) of
the Code.
The motion for adoption of the foregoing resolution was duly
seconded by Councilmember Ricker , and upon vote being taken
thereon, the following voted in favor thereof: Mayor Schneider,
Councilmembers Vasiliou, Ricker and Zitur
the following voted against or abstained: None
whereupon the resolution was declared duly passed and adopted.
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