HomeMy WebLinkAboutCity Council Resolution 1995-654EXTRACT OF KNUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF PLYMOUTH, MINNESOTA
HELD: October 24,199S
Pursuant to due call and notice thereof a regular meeting of the City Council of
the City of Plymouth, Hennepin County, Minnesota, was duly held at the City Hall in
said City on the 24th day of October, 1995, at 7:00 p.m. for the purpose in part of
authorizing the sale of the $7,665,000 General Obligation Tax Incr.ment Bonds, Series
1995 of said City.
The following members were present:
Anderson, Wold, Lymangood, Helliwell, Edson, Tierney.
and the following were absent: Granath.
Member Helliwell introduced the following resolution and moved its
adoption: RESOLUTION 95-654
RESOLIMCN PROVIDING FOR THE SALE OF
$7,665,000
GENERAL OBLIGATION TAX INCREMEN`f BONDS,
SERIES 1995
A. WHEREAS, the City Council of the City of Plymouth, Minnesota (the
"City") has heretofore determined that:
(1) the City has duly established City Development District No. 7 (the
"District") pursuant to Minnesota Statutes, Sections 469.124 through
469.134, and the District is subject to modification in accordance with such
statutes;
(2) the City has duly established tax increment financing district no. 7-1 (the
'"TIF District") within the District pursuant to Minnesota Statutes, Sections
469.174 to 469.179 (the '"TIF Act"), and the TIF District is subject to
modification in accordance with the provisions of the TIF Act; and
(3) 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
(the "Coats") rr-lated to the District as identified in the program and tax
increment financing plan (the "Plan") for the TIF District, and the Plan is
subject to modification in accordance with the provisions of the TIF Act;
and
B. WHEREAS, the City Council of the City, has determined that it is
( necessary and expedient to issue its $7,665,000 General Obligation Tax Increment Bonds,
Series 1995 (the "Bonds") to provide financing for certain of the Costs described in the
Plan; and
C. WHEREAS, the City had retained Springsted Incorporated, in Saint Paul,
Minnesota ("Springsted*), as its independent financial advisor and is therefore authorized
to sell these obligations in accordance with Minnesota Statutes, Section 475.6%
Subdivision 2(9);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Plymouth, Minnesota, as follows:
1. Authorization: Findings. The City Council hereby authorizes Springsted to
solicit bids for the competitive negotiated sale of the Bonds in accordance with
Minnesota Statutes, Section 475.60, Subdivision 2(9).
2. Meetings ]Did QKning. This City Council shall meet at the time and place
specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of
considering sealed bids for, and awarding the sale of, the Bond;. The City Manager, or
his designee, shall open bids at the time and place specified in such Terms of Proposal.
3. Terns of Proposal. The terms and conditions of the Bonds and the
negotiation thereof are fully set forth in the 'Terns of Proposal" attached hereto as
Exhibit A and hereby approved and made a part hereof.
4. Official Statement. In connectins with said competitive negotiated We,
the City Manager, Finance Director and other officers or employees of the City are
hereby authorized to cooperate with Springsted and participate in the preparation of an
official statement for the Bonds, and to execute and deliver it on behalf of the City upon
its completion.
The motion for the adoption of the foregoing resolution was duly seconded by
member Wold and, after full discussion thereof and upon a vote being
taken thereon, the following voted in favor thereof:
Anderson, Wold, Lymangood, lielliwell, Edson, Tierney
and the following voted against the same: None
Whereupon said resolution was declared duly passed and adopted.
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EXHIBIT A
SHE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED r0 NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON TH': FOLLOWING BASIS:
TERMS OF PROPOSAL
ST,6t5,000
CITY OF PLYMOUTH, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 191150
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday. November 21, 1995, until 12:00 Noon,
Central Time, al the offices of Sprngsted Incorporated, 135 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the some day.
SUBMISSION OF PROPOSALS _•
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted.
Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
price and coupons, by telephone (612) 22;.x-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified apove. Proposals may also be filed electronically
via PARITY, In accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one-hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions In the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shad control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE,
Suite 100, Bellevue, Washington 96004, telephone (206) 635.3545. Neither the City nor
Springsted Incorporated assumes any liability If them is a malfunction of PARITY. All bidders
are advised that each Proposal shall be deemed to constitute a contract between the bidder
end the City to purchase the Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 1995l su the date of original Issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1995 Interest will
be computed on the basis of a 60 -day year of twelve 3D -day months.
The Bonds will mature February 1 in the years and amounts as follows:
1997 $2,465,000 1998 $2,550,000 1999 $2,650,000
BOOK ENTRY SYSTEM
The Bonds will be Issued by means of a took entry system with no physical distribution rof
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede 11; Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
�l
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC end its participants.
Principal and interest are payable by the registrar to DTC or its nominee as reglstered owner of
On Bonds. Transfer of principal end Interest payments to participants of DTC will be the
responsibility of VTC; transfer of principal and Interest payments to beneficial owners by
participants will be tM responsibility of such parls0pants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of ttx Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The Finance Director of the City will serve as registrar.
OPTIONAL REUEMPTION
The Son& will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds win be general obligations of the City for whicn the City will pledge its full faith end
credit and power to levy dir!tt general ad valorem taxes. In addition the City will pledge. tax
Increment income generated from 13 tax increment financing districts alt within Development
District No. 7. The proceeds will be used to finance public Improvements within various tax
Increment financing districts all within Development District No. 7.
TYPE OF PROPOSALS
Propot:als shall be for not Mess than $7,626,575 and accrued Interest an the total principal
amour • of the Bonds. Proposals shall be accompaNed by a Good Faith Deposit ("Depoi►t") In
the for.n of a ceKfied or cashier's check or a Financial Surety Bond in the amount of $76,650,
payable to the order of the City. If a check is used, it must accompany each proposal. It a
Financial Surety Bond is used, It must be from an insurance company licensed to Issue such a
bond in the State of Minnesota, and preapproved b, the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
Identify eac;i underwriter whose Deposit Is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser Is
required to submit its Deposit to Springsted Incorporated ih the form of a ceriified or cashiaes
check or wire transfer as instructed by Springsted Incorportikad not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply wit the sumpted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended eher the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds Is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in Integral multiples of 51100 or
116 of 1%. Rates must be In ascending order. Bonds of the some maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest Interest rate to be determined on a true
Interest cost (TIC) basis. The City's computation of the Interest rate of each proposal, in
accordance with customary practice, will be controlling.
n
The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of
matters relating .o the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, If the City has requested and received a
rating on the Bonds from a rating agency, the City Wil pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond Insurer to Issue the policy after Brands have been awardad to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause fmr failure or refusal by the purchaser to a=ept dt:livery of the
Bonds. The CUSIP Servlce Bureau charge for the assignment of CUSIP identification numbers,
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Soods will be deliverer' without cost to the
purchasdr at a place mutually satisfactory to the City and the purchaser. Delivery :,01 be
subject to receipt by the purchaser of an approving legal opinion of Best & Flanagan, P.L.L.P.,
Minneapolis, Minnesota, and of customary dosing poperu, including a no -litigation certificate.
On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been
made impossible by action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered by the City by reason o' the purchaser's non-compliance with sold terms for
payment.
CONTINUING DISCLOSURE
In order to assist bidders In complying with SEC Rule 15c2.12, as amended, the City will
undeilake, pursuant to the Award Resolution, to provide annuai reports and timt+ly notice o`
certain events lar the benefit of holders of the Bonds. A description of these details and terms
of the undertak6ig Is set forth in the Official Siatament.
OFFICIAL. STATEMENT
The City has authorized the preparation of an Officit I Statement containing pertinent
Information relative to the Bonds, and said Officiwi Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of rho SecunNeu and Exchange Commission.
For copies of the Official Statement or for any additional Information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporolao,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 4101, telephone (612) 223.3000.
•
The Official Statement, when further supplemented by an addendum or addenda specifying the
( maturity dates, principal amounts and interw, rates of � w Bonds, together with any other
Information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term Is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the dale of such award, h shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 225 copies of
the Officiul Statement and the addendum or addenda described above. The City designates
the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter, Any underwriter delivering a proposal with respect to the Bonds agrees thereby
that if its proposal is accepted by the City (I) it shall accept such designation and (ii) it shall
enter Into a contractual relationship with all Participating Underwriters of the Bonds for purposes
of assuring the receipt by each such Participating Underwriter of the Final "Official Statement.
Dated October 240 1995
BY ORDER OF THE CITY COUNCIL
/a/ Laurie Ahrens
City Clerk