98-50 AExtract of Minutes of Meeting
of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at the City Hall in the City
on Tuesday, May 26, 1998, commencing at 6:30 P.M.
The following members of the Council were present:
MANCINO, SENN, ENGEL, BERQUIST
and the following were absent: M A S 0 N
The following resolution was presented by Councilmember B e r o u ± s t who moved
its adoption:
RESOLUTION NO. 98-50A
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,225,000 GENERAL OBLIGATI. ON
TAX INCREMENT BONDS, SERIES 1998D
BE IT RESOLVED By the City Council of the City of ChAnhs.~,~, Carver and Hennepin
Counties, Minnesota (City) as follows:
le
It is hereby determined that:
(a)
the City has duly ~tablished certain tax increment flnan~ districts CrlF
District) pursuant to Minnesota Statutes, Section 469.174 to 469.179 (TIF
Act);
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(b)
(c)
the City is amhorized 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) identified in the tax increment financing plans (Plan) for the
TIF Districts;
the following Costs to be fma.n~ by the Bonds are at~orized by the
Plans:
Public Improvements:
City Recreation Center- Road Construction
Costs of Issuance
Allowance for Discount Bia_alng
Less: Investment Earnings
Total Bond Issue
Development Cost
$1,200,000
18,600
9,800
(3.400)
$1,225,000
(e)
it is necessary and expedient to the sound financial management of the
affairs of the City to issue $1,225,000 General Obligation Tax
Increment Bonds, Series 1998D (Bonds) to provide financing for the
2. In order to provide financing for the Costs, the City will therefore issue and
sell Bonds in the amount of $1,215,200. In order to provide in part the additional interest
required to market the Bonds at this time, additional Bonds will be issued in the amount of
$9,800. The excess of the purchase price of the Bonds over the sum of $1,215,200 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 ~ee
with the terms of the following Terms of Proposal:
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THE CITY HAS AUTHORIZED 8PRINGSTED INCORPORATED TO NEGOTIATE TH~S
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,225,000
CITY OF CHANHASSEN, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES t998D
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, June 22, 1998, until 12:30 P.M., Central
Time, at the offices of Sprlngsted Incorporated, 85 East Seventh Place, Suite 100, Salnt Paul,
Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 6:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted In a sealed envelope or by fax (612) 22.3-3002 t~ Springsted.
Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be respons~le for submitting to Springsted the final Proposal
price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Sprlngsted will assume no liability for the Inal~'lity of the bidder to reach
Springsted prior to the time of sale spec. Jfled above. All bidders are advised that each Proposal
shall be deemed to con~ · contract between the bidder and the City to purchase the Bonds
regardless of the manner of the Pmposel submitted.
DETAILS OF THE BONDS
The Bonds will be dated July 1, 1998, as the date of original Issue, and will bear Interest
payable on February 1 and August 1 of each year, commencing February 1, 1999. Interest will
be computed on the basis of a 360-day year of twelve 30-clay months.
The Bonds will mature February 1 In the years and amounts as follows:
1999 $ 85,000 2002
2000 $ 60,000 2003 $296,000
2001 $170,000 2004 $3e0,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical dL~tflbution of
Bonds made to the publlc. The Bonds will be issued in fully registered form and one Bonds,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in' the name of Cede & Co. as nominee of The Depository Trust Cempany C'DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or arty multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and Interest am payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and Interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such partiGipants and other nominees of beneficial
ownem. The purchaser, as a cond'~on of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar whioh shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2002, and on any day thereafter, to prepay Bonds due on or
after February 1, 2003. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity em
called for redemption, the CK7 will notify DTC of the particular amount of such maturity to be
prepaid. D'I'C will determine by lot the amount of each participant's Interest in such rnatu~ to
be redeemed and each participant will then select by lot the beneficial ownership Interests In
such maturity to be redeemed. All prepayments shall be at a price of par plus aocrued InteresL
SECURITY AND PURPOSE
The Bonds will be general Obligations of the City for which the City will pledge its full faith and
cred'~ and power to levy direct general ad valorem taxes. In adcfffion the City will pledge .tax
Increment revenues from the Ctty's Tax Inorement District No. 2. The proceeds will be used to
finance the construction of the mad servicing the City's recreation center.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,215,200 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Fe'flJ~ Deposit ("Deposit'~ in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $12,250,
payable to the order of the City. If a check is used, It must accompany each proposal. If a
FinanGlal Surety Bond is used, It must be from an Insurance company licensed to Issue such a
bond in the State of Minnesota, and preapproved by the Clty. Such bond must be submitted to
Springsted Incorporated pdor to the opening of the proposals. The Financial Surety Bond must
Identify each underwriter whose Depose 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 subrnlt its Depose to Sprlngsted Incorporated in the form of a certJfled or cashiers
check or wire transfer as instructed by Springsted inoorpomted 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
§me, the Financial Surety Bond may be drawn by the Ctty to satisfy the DeposIt requirement.
The City v~ll deposit the cheok of the purchaser, the amount of which will be deduoted at
settlement and no Interest will accrue to the pumhaser. In the event the purchaser falls to
comply with the accepted proposal, said amount w~l be retained by the City. No proposal can
be withdrawn or amended after 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 data
without award of the Bonds having been made. Rates shall be In Integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to tbs date of maturity. No conditional proposals will be
acoe~.
AWARD
The Bands ~ll be awarded on the basis of the lowest Interest rate to be determined on a true
Interest cost CTIC) basis. The City's computation of the Interest rote of each proposal. In
accordance with =Jatomary practice, will be controlling.
The City will reserve flue right to: (!)waive non-substantive lnformalrdes of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii)reject all proposals
without muse, and, (!!!) reject any proposal which the City determines to have falied to comply
with the terms heroin.
BOND INSURANCE AT PURCI-V~ER'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 purohase 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 lsstrance of the Bonds resulting from suoh purchase of
inaurance shall be paid by the purohaser, except that, if the City has requested and received a
rating on the Bonds from s rating agency, the City will pay that rating fee. Any other rating
agenoy fees shall be the responsibility of the purr.
Failure of the municipal bond Insurer to Issue the policy after Bonds have been awarded to the
pumhaser shall not cortstitute cause for failure or refusal by the purchaser tn accept delivery on
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be pdnted on the
Bonds, but neither the failure to pflnt such numbers on any Bonds nor any error with respect
thereto will constitute cause for failure or refusal by the pumhaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP Identification numbem
shall be paid by the purchaser.
SETTLEMENT
V~thln 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Dei'rvery will be
subject to receipt by the purchaser of an approving legal opinion of Kennedy & Graven,
Chartered of Minneapolis` Minnesota, and of customary dosing papers, 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. ~pt as compliance with the terms of payment for the Bonds shall'
have been made Impceslble 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 of the purchaser's non-compliance with said
terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution
awa.rding sale of the Bonds, to provide annual reports and notices 'of certain events. A
des~ptlon of this undertaking is set forth In the Official Statement. The purchaser's obligation
t~ pumhase the Bonds will be conditioned upon receiving evidence of this undertaking at or
pdor to dellvm7 of the Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement cont~ning pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Offioial Statement or for any add'~ional Information prior to sale, any
proses purchaser is referred to the Financial Advisor to the city, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 22.3-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
matudty dates, principal amounts and Interest rates of the Bonds, together with any other
Information required by law, shall co~ a "Final Official S/atement' of the City with respect
to the Bonds, as that term is defined In Rule 15=2-12. By awarding the Bonds to any
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undenefil~r or underwriting syndicate submlffing a proposal therefor, the City agrees that, no
mom than seven busies days after the date of such award, R shall provide without cost to the
senior managing un~ of the ejndicate to which the Bonds are awarded 50 c~ples of the
Official Statement and the addendum or addenda described above. The City des'Lgnates the
senior managing underwriter of the syndioate to which the Bonds are awarded as Its agent for
purposes of distributing co~ 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 aooept~ by the City (i) it shall aocept such designation and (ii) it shall enter Into a
contractual relationship with all Participating Underwdtem of the Bonds for purposes of assudng
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated May 26, 1998
BY ORDER OF THE CITY COUNCIL
Is/Donald W. Ashworth
City Manager
3. Springsted Inc, o~~ is authorized and directed to negotiate the Bonds in
accordance with the foregoing Term, of Proposal. The City Council will meet at 6:30 pan.
on Monday, June 22, 1998, to consider proposals on the Bonds and take any other appropriate
action with respect to the Bonds.
Councilmember E nfl e i
The motion for the adoption of the foregoing resolution was duly seconded by
, and upon vote being taken thereon the following members
voted in favor of the motion:
Mancino, Senn, Engel, Berquist
and the following voted against:
None
whereupon the resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTIES OF 'CAKVER AND
HENNEP1N
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City Manager of the City of
Chanhassen, Minnesota, hereby certify that I have care~y compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on Tuesday, May 26,
1998, with the original minutes on file in my offic~ and the extract is a full, true and correct copy
of the minutes, insofar as they relate t~ the issuance and sale of $1,225,000 General Obligation
Tax Increment Bonds, Series 1998D of the City.
WITNESS My hand as City Manager and the corporate seal of the City this day
of ,1998.
City Man~er
City of ~ Minnesota
(SEAL)
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