HomeMy WebLinkAboutCity Council Resolution 1964-091r
EXTRACT OF MINUTES OF MEETING OF THE
VILLAGE COUNCIL OF THE VILLAGE OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
Pursuant to due call and notice thereof, a regular meeting
of the Village Council of the Village of Plymouth, Minnesota, was
duly held on the 9th day of November, 1964, commencing at
7:30 o'clock P. M.
The following members were present: Mayor Staples, Trustees
Curtis, O'Fallon, Clifford and Humphrey; the following members
were absent: None.
Trustee 01iffopd introduced the following resolution and
moved its adoption:
RG'iU3I0i iti0.64-51
A RESOLUTION AUTHORIZING AND
DIRECTING THE ISSUANCE AND SALE
OF $100,000 MUNICIPAL LIQUOR
STORE REVENUE BONDS
BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF PLYMOUTH,
MINNESOTA, AS FOLLOWS:
1. That the Village Council of the Village of Plymouth,
Minnesota has investigated the facts and does hereby
find, determine and declare:
1.1 That the Village has by Ordinance No. 64-3,
adopted August 17, 1964, duly authorized the
establishment and operation of a municipal
liquor dispensary for the "off -sale" of in-
toxicating liquor and other merchandise in
accordance with the provisions of Chapter 340,
Minnesota Statutes, and it is deemed necessary
and expedient that the revenue bonds herein
authorized be issued and sold for the.purpose
of financing the furnishing and equipping of
a facility to be used as an off -sale liquor
store, and providing initial working capital
for such store.
1.2 That the revenues reasonably anticipated to be
received from the operation of said liquor store
during the period for which such bonds are
outstanding will be more than sufficient to
pay all costs of the operation and maintenance
thereof and to provide excess or net revenues
adequate to meet all payments of principal and
interest as the same shall fall due, and there
are no outstanding obligations payable from or
constituting a lien or charge upon said net
revenues, and it is in the Jest interest of the
Village that said bonds be made payable solely
from such net revenues.
2. That the Village shall forthwith issue and sell $100,000
Municipal Liquor Store Revenue Bonds to be dated
December 1, 1964, and numbered from 1 to 100
both inclusive, in the denomination of $1,000 each,
bearing interest payable December 1, 1965 and semi-
annually thereafter on December 1 and June 1 of each
year, at the rate or rates to be determined upon the
sale thereof and to mature serially on December 1 in
the years and amounts as follows:
1966 $ 8,000 1971 $10,000
1967 8,000 1972 11,000
1968 8,000 1973 11,000
1969 10,000 1974 12,000
1970 10,000 1975 12,000
All bonds maturing after December 1, 1972, shall be
subject to redemption at the option of the Village in
inverse numerical order on said date and any interest
payment date thereafter, at par and accrued interest,
plus a premium of $20. Thirty days' notice of such
redemption shall in each case be given to the bank
where said bonds are payable and to the last known
holder. Holders desiring to receive such notice musL
register their names, addresses and bond numbers with
the Village Clerk. Both principal and interest shall
be payable at any suitable bank designated by the success-
ful bidder, and the Village shall pay out of the net re-
venues of the dispensary the reasonable charges of such
paying agent.
3. The Village Clerk is authorized and directed to publish
once at least ten days prior to such sale, in the official
newspaper of the Village, and in Commercial west, a weekly
commercial paper published in Minneapolis, Minnesota, a
notice of sale, which notice shall be in substantially
the following form:
NOTICE OF BOND SALE
$100,000
VILLAGE OF PLYMOUTH
PLYMOUTH, MINNESOTA
MUNICIPAL LIQUOR STORE REVENUE BONDS
NOTICE IS HEREBY GIVEN, that the Village Council of
the Village of Plymouth, Minnesota, will meet at the
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96
Village :.all in said Village on Monday, December 7,
1964, at 7.30 o'clock P. M., for the purpose of receiv-
ing and considering sealed bids for the purchase of
$10Q000 Municipal Liquor Store Revenue Bonds of said
Village, bearing date December 1, 1964, in the de,�,oatina-
tion of $1,000 each, bearing interest at the rate a'r
rates designated by the successful bidder, payable
December 1, 1955, and semiannually thereafter on
December 1 ani June 1 in each year, and maturing
serially on Decemre;r 1 in the years and amounts as
follows:
1966
$ 8,000
1971
$10,000
1967
8,000
1972
11,000
1968
8,000
1973
11,000
1969
10,000
1974
12,000
1970
10,000
1975
12,000
All bonds maturing after December 1, 1972, will be sub-
ject to redemption in inverse numerical order on said
date and any interest payment date thereafter, at par
and accrued interest, plus a premium of $20.
The Village will furnish printed bonds and approving
legal opinion of Messrs. Howard, Peterson, LeFevere,
Lefler k Hamilton, Minneapolis, Minnesota, both with-
out expense to the purchaser. Both principal and in-
terest will be payable at any suitable bank designated
by the purchaser within 24 hours after award. The bonds
will be delivered to the purchaser within 40 days after
the date of sale, accompanied by an unqualified approving
legal opinion and customary final delivery papers, in-
cluding a certificate showing absence of litigation. A
copy of the approving legal opinion will be printed on
the back of each bond.
All bids must be in writing enclosed in a sealed envelope,
be unconditional except as to the above opinion, and be
left with the undersigned prior to the above time,
accompanied by a certified check, bank draft or cashier's
check in the amount of at least $2,000.00 , payable to
the order of the Village, to be forfeited as liquidated
damages in the event the bid is accepted and the bidder
fails to comply therewith. Bidders may state one or more
interest rates in multiples of one-quarter or one-tenth of
one percent. Each bid may specify additional_ intertest
represented by extra coupons for a period not exceeaing
one year and in an amount not exceeding $1,000.00
and the total interest rate for any period not to exceed
6%.
Bidders are also asked to state total interest cost and
average rate. No bid for less than par plus accrued
interest from date of issue to day of bond delivery will
be considered. Oral auction bids will not be received.
The right to waive any informality and the right to re-
ject any and all bids are reserved.
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Said bonds will not be general obligatiot,s of the
Village but ire to be payable solely out of the n�t
revenues derived from the op._�ration of the muni••^i,)al
liquor store to be furnished and equipped with the
proceeds obtained from the sale of s&id bonds.
By order of the Village Council.
Johnson
Village Clerk
Village of Plymouth
13800 State Highway No, 55
Minneapolis, Minnesota 55427
4. The said municipal liquor store revenue bonds and interest
coupons to be issued hereunder shall be in substantially
the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
VILLAGE OF PLYMOUTH
NO. $1,000
MUNICIPAL LIQUOR STORE REVENUE BOND OF 1964
KNOW ALL MSN BY THESE PRESENTS, that the Village of
Plymouth, Hennepin County, Minnesota, acknowledges
itself to be indebted and, for value received, hereby
promises to pay to bearer out of its liquor store re-
venue bond sinking fund, the sum of ONE THOUSAND DOLLARS
on the first day of December, 19 , and to pay interest
thereon at the rate of per annum, together with
additional interest
all interest to maturity payable December 1, 1965, and
semiannually thereafter on the first day of December and
the first day of June in each year, in accordance with
and upon presentation and surrender of the interest
coupons hereto attached as they severally become due.
Both principal and interest on this bond are payable
at
in the city of Minnesota, in any
coin or currency of the United States of America which
on the date of payment is legal tender for public and
private debts, and for the prompt payment of such princi-
pal and interest as the payment thereof respectively be-
comes due, the net revenues of the Village of Plymouth
municipal liquor dispensary have been and are hereby
irrevocably pledged.
All bonds of this issue maturing after Decembea° 1, 1972,
are subject to prepayment and redemption on said date
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and any interest payment date thereafter in inverse
numerical order at par and accrued interest plus a
premium of $20, upon thirty (30) days' prior notice
by mail to the bank where the bonds are payable, and
to the last known holder. Holders desiring to receive
such notice must register their names, addresses and
bond numbers with the Village Clerk of the Village of
Plymouth.
This bond is one of an issue of bonds in the total
principal amount of $100,000 , all of i4ke date and
tenor except as to the interest rate and maturity,
all issued by the Village cf Plymouth for the purpose
of providing money for the furnishing and equipping
of a municipal liquor dispensary.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and
laws of the State of Minnesota, to be done, to happen
and to be performed precedent to and in the issuance of
this bond have been done, have happened and have been
performed in regular and due form, time and manner.
IN WITNESS WHEREOF, the Village of Plymouth, Hennepin
County, Minnesota, by its Village Council, has caused
this bond to be executed in its behalf by the facsimile
signature of the Mayor and the manual signature of the
Village Clerk, and sealed with the corporate seal, and
the interest coupons hereto attached to be executed and
authenticated by the facsimile signatures of said
officers, all as of December 1, 1964.
Village Clerk
(SEAL)
(Form of Coupon)
Mayor
NO. $
On the first day of December (June), 19 , the Village
of Plymouth, Hennepin County, Minnesota, will pay to
bearer out of its liquor store revenue bond sinking fund
at
Minnesota, the amount shown hereon for interest then due
on its Muni 'pal Liquor Store Revenue Bond of 1964, dated
December 1, .964, No.
(facsimile signature)
Village Clerk
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(facsimile signature)
Mayor
5. The Village Clerk shall obtain a copy of the proposed
approving legal opinion of Messrs. Howard, Peterson,
LeFevere, Lefler &,Hamilton, which shall be complete
except as to dating thereof, and shall cause said
opinion to be printed on each bond, together with a
certificate to be signed by his facsimile signature,
in substantially the following form;
I hereby certify that the foregoing is a full,
true and correct copy of the legal opinion
executed by the above named attorneys, except
as to the dating thereof, which opinion has been
handed to me for filing in my office prior to the
time of bond delivery.
(facsimile signature)
Village Clerk
6. The bonds shall be prepared under the direction of the
Village Clerk and shall be executed on behalf of the
Village by facsimile signature of the Mayor and the
manual signature of the Village Clerk, and the corporate
seal of the Village shall be affixed to each thereof,
and the interest coupons shall be executed and
authenticated by the printed facsimile signatures of
said Mayor and Clerk. Said bonds, when fully executed,
shall be delivered by the Treasurer to the purchaser
thereof upon receipt of the purchase price, and the said
purchaser shall not be obligated to see to the proper
application thereof.
7. For proper administration of the monies so to be borrowed
and to make adequata and specific security to the purchaser
of the bonds and :he holders thereof from time to time,
the Village hereby creates and shall, until said bonds and
the interest thereon are fully paid, maintain a special
fund to be known as the Municipal Liquor Store..Ravenue
Bonds of 1964 Fund, hereinafter referred to as the
"Liquor Store Fund", and establish and maintain financial
records of receipts and disbursements in accordance with
this resolution. In such records there shall be established
and maintained a "Capital Expenditures Account" into which
shall be paid all the monies borrowed hereunder, with the
exception of the accrued interest paid by the purchaser at
the time of the delivery of said bonds which shall be paid
immediately into the Liquor Store Revenue Bond Sinking Fund,
hereinafter referred to. There shall be charged to and
paid from said capital expenditures account all but only,
the items of capital expenditure to be made for the
equipping and furnishing of the municipal liquor dispensary.
The remaining monies in said account shall be transferred
to said liquor store fund to provide an initial stock of
merchandise and reserve for working capital.
7.1 All revenues derived from the said municipal liquor
dispensary or arising from the operation or owner-
ship thereof or from the properties used or held in
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connection therewith shall be deposited daily,
as far as is practical, into said liquor store
fund with a depository designated by the govern-
ing body of the Village, and shall be used and
disposed of only as hereinafter provided. The
Golden Valley State Bank, Golden Valley, Minnesota,
is hereby designated as depository for said liquor
store fund and a separate checking account shall be
maintained with said bank for purposes of making the
payments herein stated.
7.2 There shall be charged to and paid from said liquor
store fund all, but only, the items of disbursements
which, by sound accounting practices, consitutute
normal, reasonable and current costs of operation
and maintenance of the dispensary. Such costs shall
include, but are not limited to, compensation of the
liquor store manager and other necessary employees,
insurance, bond paying agent's charges, cost of
an annual audit, utility services and costs of
maintenance of a reasonable stock of merchandise.
7.3 As of the first day of each month starting with
January 1, 1965, all revenues received in excess
of the amounts necessary to pay all expenses of
operation and maintenance as above defined, and to
maintain a reasonable reserve for operation and
maintenance emergencies, not exceeding such estimated
expenses for the succeeding month, shall be paid
into a special fund, which is hereby created and
designated as "ilunicipal Liquor Store Revenue Sink-
ing Fund" to be deposited with said Golden valley
State Bank, Golden Valley, Minnesota, which is de-
signated as depository for said sinking fund.
As soonas possible, there shall .be accumulated a
reserve of $8,000 in said sinking fund, which re-
serve shall be maintained intact as long as any
of the principal of or interest on the bonds issued
hereunder shall remain outstanding. The monies
constituting the $8,000 reserve required to be
maintained shall be used only to the extent necessary
for the payment of principal Lad interest on said
revenue bonds whenever other monies in said sinking
fund are insufficient therefor and when so used shall
be restored as soon as possible.
After $8,000 has been accumulated in said sinking
fund, ane -half of any excess thereof may be subject
to transfer by the Village to other Village funds,
except that but one such transfer may be made in
any one month and no such transfer shall exceed one-
half of the net profit of said liquor dispensary
for the preceding month. If during the existence
of said fund it shall reach the amount of $15,000,
any excess over said sum may be transferred by the
Village to other Village funds as hereinbefore
stated, or may be used for the redemption of the
bonds in accordance with other provisions of this
resolution.
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7.4 The Village reserves the right and privilege of
issuing and selling refunding bonds if and to
the extent needed to refund the maturing bonds
of the issue herein authorized, if monies in
the Liquor Store Revenue Bond Sinking Fund are
at anytime insufficient for the payment in full
of the principal and interest due thereon, which
refunding bonds shall be payable from said fund
on a parity with this issue as to interest, but
shall mature subsequent to all the bonds payable
from said fund which are to remain outstanding
upon the completion of such refunding.
7.5 Monies in the Liquor Store Revenue Bond Sinking
Fund may be invested as directeO by the Village
Council, but only in general obligations of the
United States Government.
8. The Village of Plymouth hereby certifies and represents
to and covenants and agrees with the purchaser and holders
from time to time of each bond issued hereunder as follows:
8.1 As long as any of said bonds are outstanding, the
Village will continue its ownership and operation
of said dispensary as a revenue producing utility
and convenience, in the manner authorized and sub-
ject to the restrictions imposed by the applicable
statutes and laws of the State of Minnesota and will
not authorize the establishment or operation of any
other establishment within the Village for the off -
sale of intoxicating liquors at retail, and the
Village will maintain the dispensary site, furnish-
ings, equipment and merchandise in good condition,
and free from all liens, provided that purchase money
liens may be created on merchandise acquired for re-
sale, or such merchandise may be acquired subject to
liens existing at the time of acquisition.
8.2 if any properties constituting capital assets of the
dispensary shall be sold and disposed of, it shall
be only at their fair market value, and the proceeds
of such sale or disposition shall be used either to
procure other revenue producing capital assets of like
nature or applied to paid principal of and interest
on bonds issued hereunder. No such sale or sales
shall be made at times or prices such as to imperil
the prompt and full payment of the bonds issued here-
under and the interest thereon.
8.3 The Village will procure and keep in force insurance
on the furnishings and equipment of said liquor
dispensary and on all stocks and merchandise, pro-
tecting against loss or damage by fire, tornado,
windstorm, flood, theft and all other causes
customarily insured against for like properties,
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in amounts sufficient to cover total loss thereof,
and will procure and keep in force suitable fidelity
bonds covering all employees handling monies of
the dispensary. The bonds of the liquor store
manager shall be in the amount of not less than
$10,000 and bonds of other employees shall be in
such amounts as the Council shall determine will
be adequate to protect the Village and the holder
of bonds issued hereunder. In the event of loss
covered by said insurance policies or bonds, the
proceeds shall be used to repair or restore the
damage or to retire bonds payable from the revenues
of said dispensary.
The Village will further keep in force a liability
insurance policy (covering its operation of said
dispensary) in the amount of at least $1,000,000.00.
Said policy shall specifically rovide for the pay-
ment by the insurance company on behalf of the in-
surer of all sums which the Village shall become
obligated to pay by reason of liability imposed
upon it by law for injuries or damage to persons,
other than employees, including the liability im-
posed by reason of Minnesota Statutes Annotated,
340.95.
8.4 The Village will continue its sinking fund specified
in paragraph 7 hereof and its subdivisions, and will
cause proper and adequate books and records of account
to be kept.separate from all other records of the
Village, reflecting all receipts and disbursements
relating to said dispensary and its operation. All
of said books and records shall be open to inspection
and copying at all reasonable times by the holder of
any of such bonds or his agent or attorney, and the
Village will, without cost, furnish copies of any
portions thereof reasonably requested by any bond
holder. The Village will cause annual operating state-
ments to be prepared and an independent audit of books
of the dispensary to be made by a competent public
accountant, within 90 days after the close of each
fiscal year, and will furnish a copy thereof without
cost to the purchaser of said bonds and, upon request
to any bond holder.
8.5 The gross and net revenues of the said dispensary
will be used and applied only as prescribed in
Paragraph 7 hereof and its subdivisions. The Village
will at all times maintain operating policies con-
cerning the purchase and sale of merchandise and do
and perform all other acts and things necessary to
assure that the net revenues collected will be at
least sufficient to meet all payments of principal
and interest on the bonds and establish and maintain
the reserve therefor as herein set forth.
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8.6 In the event that monies in said sinking fund
shall at anytime be insufficient to pay principal
and interest then due on bonds issued hereunder,
said monies shall first be applied to pay the
accrued interest on all such bonds then outstanding,
and the balance shall be applied in payment of
maturing principal, in order of the serial numbers,
the lowest numbers first, of the bonds which are
then due and payable.
8.7 The appropriation and pledge of revenues herein-
above made to the Liquor Store Fund and Sinking
Fund shall at all times constitute an irrevocable
pledge and appropriation for the benefit and
security of the holders of bonds issued hereunder,
and the Village will not issue any additional bonds
or other evidences of indebtedness or incur ox�
suffer to be incurred any obligation payable from
said revenues, except as expressly authorized in
Paragraph 7 and subdivisions thereof.
8.8 Each and all of the foregoing provisions of this
resolution, including those contained in the form
of bond and coupon, which in anywise tend to secure
or assure prompt and full payment of the principal
of and interest on bonds issued hereunder will be
promptly and faithfully performed and carried out
by the Village and its officers and agents.
8.9 The holders of 20% or more in aggregate principal
amount of bonds under this resolution and at anytime
outstanding may, either at law or in equity, by suit,
action or other proceedings protect and enforce the
rights of all holders of bonds issued hereunder and
then outstanding, or enforce and compel the performance
of any and all of the covenants and duties herein
specified to be performed by the Village or its
officers and agents.
8.10 The Village further covenants and agrees that as
long as any of the bonds issued hereunder or any
bonds issued to refund the same remain outstanding,
all personal properties acquired by the.Village
from the proceeds of bonds issued hereunder or from
revenues derived from such properties or from the
operation thereof, except as is herein provided,
shall be and are hereby irrevocably appropriated to
be used only for the liquor dispensary purposes of
the Village, including payment of the principal of
and interest on said bonds, and shall not be devoted
to any other use or purpose, except as is provided
by paragraph 7.3 hereof; that upon any discontinuance
of the operation of the liquor dispensary as a
municipally owned revenue producing convenience or
utility, while any of said bonds remain outstanding,
all of the bonds then outstanding shall forthwith be
and become immediately due and payable, notwithstand-
ing any provisions therein or herein to the contrary,
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and all such personal property, including the
stock of merchandise, shall be sold and disposed
of as specified in Paragraph 8.2 hereof; and the
net proceeds thereof and any working capital then
on hand are hereby irrevocably appropriated to be
used so far as needed for the pro rata payment of
the outstanding bonds and interest thereon.
9. The Village Clerk is hereby authorized and directed to
file a copy of this resolution with the County Auditor
of Hennepin County, Minnesota, and to obtain the cer-
tificate of said County Auditor that the bonds herein
authorized have been duly registered by him.
10. The officers of the Village are hereby authorized and
directed to prepare and furnish to the purchaser of
said bonds and to the attorneys approving the legality
thereof certified copies of the proceedings and records
of the Village relating to the authorization and issuance
of said bonds and the establishment of said dispensary,
and affidavits and certificates as to all other matters
appearing in their official records or otherwise known
to them which shall be reasonably necessary to evidence
the validity and marketability of said bonds and all
such certified copies, certificates and affidavits,
including any heretofore furnished, shall constitute
the representations of said Village as to the truth of
the statements contained therein.
The above motion was seconded by Trustee Humphre.,
and upon vote being taken thereon, the following voted in favor
thereof: Mayor Staples, Trustees On=ts�, O'Fallon, Clifford
:ru:-t e urns
and Humphrey;/the following voted against: None; whereupon said
resolution was declared duly passed and adopted.
STATE OF MINNESOTA )
COUNTY OF HENNE PIN ) ss.
VILLAGE OF PLYMOUTH)
I, the undersigned, being the duly qualified and acting
clerk of the Village of Plymouth, Minnesota, hereby certify that
I have carefully compared the attached and foregoing extract of
minutes of a regular meeting of the Village Council of said village
held November 9th , 1964, with the original thereof on file in my
office and the same is a full, true and complete transcript
therefrom insofar as the same relates to Municipal Liquor Store
Revenue Bonds of 1964.
WITNESS, My hand officially as such clerk and the corporate
seal of the village this 5th day of November, 1964.
r�
Viii
age.,. cierk—
Village of Plymouth, Minnesota
(SEAL)
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