81-20
EXTRACT 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 said City on
June 15, 1981, commencing at 7:30 o'clock p.m.
The following members were present:
Mayor Hamilton,
Councilmen Horn, Neveaux, Swenson and Geving.
and the following were absent:
None.
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The following resolution was presented by Councilmember
Geving
who moved its adoption:
RESOLUTION NO.
81-20
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF $4,715,000
GENERAL OBLIGATION TAX INCREMENT
BONDS OF 1981, SERIES A
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHANHASSEN,
MINNESOTA, AS FOLLOWS:
1. FINDINGS. It is hereby determined that it is necessary
and desirable that the City finance a portion of the Public
Redevelopment Costs (as hereinafter defined) of a Redevelopment
Project Area (as hereinafter defined) in the city, presently
estimated to be $4,625,000, with the proceeds of general obligation
tax increment bonds issued pursuant to the Tax Increment Financing
Act (as hereinafter defined) .
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2. SALE OF BONDS: TERMS: SALE NOTICE. In order to
provide such financing, the City shall therefore issue and sell its
General Obligation Tax Increment Bonds (the "Bonds") in the amount
of $4,625,000. In order to provide in part the additional
interest required to market the Bonds at this time, additional
Bonds shall be issued in the amount of $90,000. Any excess of
the purchase price of the Bonds over the sum of $4,625,000 shall
be credited to the debt service fund for the Bonds for the
purpose of paying interest first coming due thereon. The $4,715,000
General Obligation Tax Increment Bonds shall be issued and sold in
accordance with the .terms of the following Official Notice of Sale:
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OFFICIAL
NOTICE OF SALE
$4,715,000 General Obligation Tax Increment
Bonds of 1981, Series A
City of Chanhassen
Carver and Hennepin Counties, Minnesota
NOTICE IS HEREBY GIVEN that sealed bids for the purchase
of the above bonds will be received until 3:00 o'clock p.m.
C.T., Monday, July 6, 1981, in the Board Room at the offices of
Juran & Moody, Inc,114 East Seventh Street, St. Paul, Minnesota,
at which time the bids will be opened, read and tabulated for
presentation to the City Council for its consideration at a regular
meeting at 7:30 o'clock p.m. C.T. on the same day. The $4,715,000
negotiable coupon, general obligation bonds (the "Bonds") are
offered on the following terms:
Purpose and Security
The purpose of the Bonds is to finance a portion of the public
redevelopment costs in a Redevelopment Project Area in the City.
The Bonds will be general obligations of the issuer, for which
its full faith, credit and taxing powers are pledged, but will be
payable primarily from tax increments resulting from increased
valuations of property within the Redevelopment Project Area.
Date and Maturities
The Bonds will be dated August 1, 1981, will be in
denomination of $5,000 each, and will mature on August 1 in the
following years and amounts:
Year Amount Year Amount
1984 $ 5,000 1992 $275,000
1985 10,000 1993 350,000
1986 25,000 1994 425,000
1987 50,000 1995 500,000
1988 75,000 1996 600,000
1989 125,000 1997 700,000
1990 175,000 1998 825,000
1991 225,000 1999 350,000
Redemption Feature
All Bonds of this issue maturing after August 1, 1991
will be subject to prior redemption at the option of the City in
inverse order of serialy numbers on said date and on any interest
payment date thereafter at a price of par plus accrued interest
to date of redemption.
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Interest
Interest on the Bonds will be payable on August 1, 1982, and
semiannually thereafter on each February 1 and August 1. All
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 5/100 of 1%, and no rate of
interest nor the net effective average rate of the issue may
exceed 12% per annum.
Paying Agent
Principal and interest will be made payable at any suitable
bank recommended by the purchaser and approved by the
City Council, and the City will pay the customary charges for
this service, provided that such recommendation is received
within 48 hours after the sale, and the Council will select the
paying agent if the recommendation is not approved.
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 45 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 purc~l~ser, the printed and executed Bonds, the unqualified
opinion thereon of bond counsel, and a certificate stating that no
litigation in any manner questioning validity of the Bonds 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, or within five days after deposit with the delivery
agent, 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 Messrs. LeFevere, Lefler, Kennedy, O'Brien & Drawz,
A Professional Association, of Minneapolis, Minnesota. The legal
opinion will be printed on the Bonds at the request of the
purchase~. The legal opinion will state that the Bonds are valid
and binding general obligations of the City, and that the City
is obligated and required to levy taxes for the principal and
interest thereon as the same become due without limit as to rate
or amount.
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Type of Bid - Amount
Sealed bids must be mailed or delivered to the undersigned
and must be received prior to the time specified above. Each bid
must be unconditional and must be accompanied by a cashier's or
certified check or bank draft in the amount of $94,300, payable
to the City Treasurer, to be retained by the City as liquidated
damages if the bid is accepted and the bidder fails to comply
therewith. The bid authorizing the lowest net interest cost (total
interest from date of Bonds to stated maturities, less any cash
premium, or plus any amount less than $4,715,000 bid for principal)
will be deemed the most favorable. No oral bid and no bid of
less than $4,625,000 for principal plus accured 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/ Donald W. Ashworth
City Manager
Dated:
June 15, 1981
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3. OTHER PROVISIONS:
3.01. pursuant to the provisions of Minnesota Statutes,
Sections 462.411 to 462.711 and Section 273.71 to 273.78 collec-
tively, the "Tax Increment Financing Act"), the Housing and
Redevelopment Authority of the City of Chanhassen (the "Authority")
has applied to the City Council of the City of Chanhassen (the
"City") for approval of a redevelopment project, described as the
Downtown Chanhassen Redevelopment Project, (the IIproject Area") .
3.02. The City Council held a public hearing after public
notice and has made findings as required by Section 462.521,
Subdivision 2 of the Act and has approved the Project Area by
Resolutions adopted on March 29, 1977, December 18, 1978 and
March 20, 1980.
3.03. By resolution of June 11, 1981, the Authority has
requested the City to issue and sell its General Obligation Tax
Increment Bonds to finance a portion of the Public Redevelopment
Costs of the Project Area, and submitted a form of Tax Increment
Agreement (the "Agreement") to this Council for its approval.
3.04. Monies are needed at this time to provide funds for
land acquisition within the Project Area, to provide monies for
capitalized interest, and to pay administrative costs, all of
which costs (the "Public Redevelopment Costs") are presently
estimated as follows:
Public Redevelopment Costs
Acquisition of Instant Web Property and
Relocation Costs
Option and Acquisition Costs: Riviera,
Huber and Mobil properties and Other
Properties
Engineering Fees
Capitalized Interest
Cost of Issuance
$3,500,000
400,000
200,000
500,000
25,000
TOTAL
$4,625,000
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3.05. The City is authorized by Section 273.77 of the Act to
issue its general obligation tax increment bonds if the Authority
pledges tax increments received from a redevelopment project for
the payment of principal of and interest on bonds issued in aid
of the Project.
3.06. The pledge of tax increments must be made by written
agreement executed by the Authority and the City and filed with
the County Auditor, and when such an agreement is made and filed,
the City may issue general obligation bonds as provided in
Minnesota Statutes, Chapter 475, subject only to the conditions
required for bonds issued to finance improvement costs reimbursable
from special assessments.
3.07. The Authority has adopted a resolution determining the
need for the financing, has approved the form of Agreement attached
hereto and marked "Exhibit A," and has requested this Council
to issue general obligation tax increment bonds under the authority
contained in the Act for the aforementioned purposes.
3.08. The form of the Agreement is approved, and the Mayor
and the City Manager are hereby authorized and directed to execute
the Agreement, and the City Manager is directed to file an executed
copy of the Agreement with the County Auditor of Carver County
and Obtain a certificate of filing.
4. SPECIAL PROVISIONS.
4.01. For the purpose of establishing a maturity schedule for
the Bonds that conforms to Minnesota Statutes Section 475.54,
Subdivision 1, the maturities of the Bonds are hereby combined
with the maturities of the City's General Obligation Improvement Bonds
of 1972, dated August 1, 1972, all as provided in Minnesota Statutes,
Section 475.54, Subdivision 2.
4.02. It is the intent of the Council in adopting this
resolution to ratify and formalize the action taken by it at its
regular meeting on Monday, June 1, 1981 relating to the Bonds.
4.03. In accordance with the provisions of Minnesota
St&t~tes, Section 475.60, Subdivision 3, the City Manager is hereby
designated as the City official to be present at the opening of
bids for the Bonds at the offices of Juran & Moody, Inc. as
provided in the Official Notice of Sale.
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5. NOTICE OF SALE.
The City Manager is authorized and directed to advertise the
Bonds for sale in accordance with the foregoing Official Notice
of Sale and to cause the abbreviated notice of sale attached
hereto as Exhibit "B", to be published in the manner required by
law. The City Council shall meet on Monday, July 6, 1981, at
7:30 o'clock p.m. for the purpose of considering bids for the
purchase of the Bonds and taking any other appropriate action.
The motion for the adoption of the foregoing resolution was
duly seconded by Member
and upon vote
Hamilton
being taken thereon, the following voted in favor of the motion:
Mayor Hamilton, Councilmen Horn, Geving, Neveaux and Swenson.
and the following voted against:
None.
whereupon said resolution was declared duly passed and adopted.
ATTEST:
I- 0. J OiL~ CZ/(:)
Don Ashworth, CiEy Manager
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EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
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Pursuant to due call and notice thereof, a regular meeting
of the Council of the City of Chanhassen, Minnesota, was duly
held in the City Hall in the City of Chanhassen on Monday,
July 6, 1981, commencing at 7:30 o'clock p.m., C.T.
The following members were present; Mayor Hamilton,
Councilmen Geving, Neveaux, Horn and Swenson.
and the following were absent: None
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The Mayor announced that the meeting was convened for the
consideration of the bids which had been received for the
purchase of $4,715,000 General Obligation Tax Increment Bonds
of 1981, Series A, as advertised for sale. The City Manager
presented affidavits showing publication of notice of sale
in the official newspaper and in Commercial West, a financial
paper published in Minneapolis, Minnesota, which affidavits
were examined and found satisfactory and ordered placed on
file.
The City Manager presented the tabulation of bids which
had been received prior to the time specified in the notice of
sale, and which had been opened and tabulated in his presence
e with the assistance of representative of Juran & Moody, Inc.,
financial advisers to the City. The single bid received was
as follows:
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$4,715,000 GENERAL OBLIGATION TAX INCREMENT
'- BONDS OF 1981~ SERIES A
$4,625,000
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TABULATION OF BIDS
MUNICIPALITY: CITY OF CHANHASSEN, MINNESOTA
ISSUE
MINIMUM BID
BIDDERS:
BancNorthwest, Account Manager
Par Value
First Bank Mpls., Joint Manager
American National Bank, St. Paul
Cronin & Marcotte, Inc.
Merrill Lynch White Weld Cap Mkts Grp.
John Nuveen & Co. Inc.
E. F. Hutton & Co., Inc.
Dougherty Dakwins Strand & Ekstrom, Inc.
Moore Juran & Company, Inc.
Purchase Price
DATE: 7/6/81
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$ 4,715,000
4,625,000
Total Interest Cost 7,555,225
Net Interest Rate
IN ASSOCIATION WITH:
Dain Bosworth, )
)Joint Managers
The First National Bank of St. Paul)
Allison Williams Company
Piper Jaffray & Hopwood, Inc.
Blyth Eastman Paine Webber Inc.
Dean Witter Reynolds, Inc.
Miller & Schroeder Municipals, Inc.
Robert S C Peterson, Inc.
Robert W Baird & Co., Inc.
BID WAS REJECTED
11. 4291%