HomeMy WebLinkAboutCity Council Resolution 1990-199Extract 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, March 5, 1990, commencing at 7:00 P.M.
The following members of the Council were present: Mayor Bergman,
Councilmember HelAwell, Ricker, Vasiliou, and Zitur
and the following were absent: None
The following resolution was presented by Member Vasiliou who
moved its adoption!
RESOLUTION NO. 90-199
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE. OF $1,350,000 TAXABLE GENERAL OBLIGATION
TAX INCREMENT BONDS, SERIES 1990
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 Das duly e:,•►ablished City Development District No. 7 (District)
pursuant tc: Minnesota Statutes, Sections 469.124 through 469.134;
(b) the City has duly established tax increment financing district no. 7-1 l ,':F
District) within the District pursuant to Minnesota Statutes, 6riF •t,ol's
469.174 to 469.179 (TIF Act);
(e) the City is authorized by section 469.178 of the TIF Act to issue and sell
its general obligations to pay all or a portion of the public development
costs (Costs) related to the District as identified in the program and tax
increment financing plan (Plan) for the TIF District.
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(d) the Plan lists the following Costs to be financed by the general obligations:
Public Improvements Total Development Costs
Site Improvements
Administration
Capitalized Interest
Investment Earnings
Costs of Issuance
Discount
Subtotal
Total
$1,000,000
335,000
(-) 28,250
23,000
$1,329,750
202.50
$1,350,000
(e) it is necessary and expedient to the sound financial management of the
affairs of the City to issue $1;350,000 Taxable General Obligation Tax
Increment Bonds, Series 1990 (Bonds) to provide financing for the Costs;
2. To provide financing for the Costs, the City will issue and sell Bonds in the
amount of $1,329,750. To provide in part the additional interest required to
market the Bonds at this time, additional Bonds will be issued in the amount of
$20,250. The excess of the purchase price of the Bonds over the sum of $1,329,750
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 and
delivered in accordance with the terms of the following Official Notice of Sale:
OFFICIAL NOTICE OF SALE
$1,350,000 Taxable General Obligation Tax
Increment Bonds Ser,'ps 1990
City of Plymouth
Hennepin County, Minneso,a
(Global Book Entry System)
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above
bonds will be received until 11:00 a.m., C.T. on Monday, April 2, 1990, in the offices of
Ehlers and Associates, 2950 Norwest Center, Minneapolis, Minnesota, at which time
the bids will be opened in the presence of the city finance Director and tabulated for
consideration by the City Council at a meeting at 7:00 p.m., C.T. 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 financing of public
development costs in economic development tax increment financing districts in a
development district. The bonds will be taxable general obligations of the City, for
which its full faith, credit and taxing powers are pledged together with tax increments
from the districts.
Date and Maturities
The bonds will be issued only in fully registered global book entry form,
will b^ dated April 16, 1990, 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
1994
$ 150,000
1997
$ 250,000
i93"!
200,000
1998
250,000
1996
925,000
1999
275,000
Redemption
The City may elect on February 1, 1996 or on any interest payment date
thereafter to redeem and prepay bonds of this issue maturing on or after February 1,
1997 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 on the bonds will be payable on August 1, 1990, and semiannually
thereafter on each February 1 and August 1. Bonds maturing on the same date must
bear interest from date of issue until 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 1%.
Registration: Book Entry
The Bonds when issued will be registered in the name of Cede & Co., as
nominee of the Depository Trust Company, New York, New York (DTC). DTC will act
as securities depository for the Bonds. Individual purchases will be made in book entry
form only in principal amounts of $5,000 and integral multiples thereof. Purchasers
will not receive certificates representing their interest in the Bonds purchased.
Principal and interest will be paid by the City to DTC who will in turn remit such
principal and interest to its participants for subsequent disbursement to the beneficial
owners of the Bonds.
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 Holmes &
Graven, Chartered, 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, but that
the bonds will be subject to federal and state income taxes.
Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned and must be
received prior to the time specified above for the opening of bids. Each bid must be
unconditional. A good faith deposit in the amount of $27,000 rr ust 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 & Trust Company, ABA
#09-10-0550-6 for further credit to Ehlers & Associates, Inc., Bond Issue Escrow
Account #850-788-1, attention Molly Majerle. The good taith 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
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bonds to stated maturities less any cash premium or plus any discount) will be deemed
the most favorable. No oral bid and no bid of less than $1,329,750 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
/s/ Laurie Rauenhorst
City Clerk
Dated: March 5, 1990.
3. The Clerk is authorized and directed to adve, tise the Bonds for sale in
accordance with the foregoing Official Notice of Sale and to publish the abbreviated
notice of sale attached hereto as Exhibit A in the manner required by law. The City
Council will meet at 7:00 p.m. on Monday, April 2, 1990, to consider bids on the Bonds
and take A.ny other appropriate action with respect to the Bonds.
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:
Ricker, Vasiliou, and Zitur
and the following voted against: None
Mayor Bergman, Councilmembers Helliwell,
whereupon the resolution was declared duly passed and adopted.
Exhibit A
NOTICE OF BOND SALE
$1,350,000
TAXABLE GENERAL OBLIGATION TAX
INCREMENT BONDS SERIES 1990
CITY OF PLYMOUTH,
HENNEPIN COUNTY, MINNESOTA
(Global Book Entry System)
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds
will be received until 11:00 a.m., C.T. on Monday, April 2, 1990, in the offices of Ehles
& Associates in Minneapolis, Minnesota, at which time the bids will be opened and
tabulated for consideration by the City Council at a meeting at 7:00 p.m. on the same
day. The bonds are offered on the following terms. The bonds will be dated April 16,
1990, will bear interest payable semiannually on each February 1 and August 1,
commencing August 1, 1990, and will mature on February 1 in the years and amounts
as follows:
Year
Amount
1994
$ 150,000
1995
200,000
1996
225,000
Year Amount
1997 $ 250,000
1998 250,000
1999 275,000
The City may elect on February 1, 1996 or on any Interest payment date
thereafter to redeem and prepay bonds of this issue in whole or in part, in inverse
order of maturities and by lot within maturities, maturing on or after February 1, 1997
at a price of par plus accrued interest to date of redemption.
Bidders must specify a price of not less than $1,329,750 plus accrued
interest. A legal opinion on the bonds will be furnished by Holmes do Graven,
Chartered, Minneapolis, Minnesota. The proceeds of the bonds will be used to finance
public development costs related to a development district in the City.
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 ORDER OF THE CITY COUNCIL
/s/ Laurie Rauenhorst
Dated: March 5, 1990. City Clerk
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STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting Clerk of the City of
Plymouth, Minnesota, hereby certify that I have carefully compared the attached and
foregoing extract of minutes of a regular meeting of the City Council of the City held
on Monday, March 5, 1990, with the original minutes on file in my office and the
extract is a full, true and correct copy of the minutes, insofar as they relate to the
issuance and sale of $1,350,000 Taxable General Obligation Tax Increment Bonds
Series 1990 of the City.
WITNESS My hand as City Clerk and the corporate seal of the City this
0 _ day of March, 1990.
(SEAL)
N
City Clerk
City of Plymouth, Minnesota