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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 -2- 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. -3- 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 -4- 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 -5- (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 -6- 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. -7- 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, -8- 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. -9- 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, -10- 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) -11-