81-24
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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 Monday,
July 27, 1981, commencing at 7:30 o'clock p.m.
The following members were present:
Acting Mayor Neveaux,
Councilmen Swenson, Geving and Horn.
and the following were absent:
Mayor Hamilton.
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The following resolution was presented by Councilmember
Geving
who moved its adoption:
RESOLUTION NO. 81-24
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF $4,715,000
GENERAL OBLIGATION TAX INCREMENT
BONDS OF 1981, -SERIES A,
AND THE READVERTISEMENT FOR BIDS THEREFOR.
BE :T RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHANHASSEN,
MINNESOTA, AS FOLLOWS:
1. PURPOSE OF RESOLUTION. This Council by Resolution No. 81-20
adopted on June 15, 1981, (the "Authorizing Resolution") authorized -
the issuance and sale of $4,715,000 General Obligation Tax Increment
Bonds of 1981, Series A, (the "Bonds") at a sale to be held on July 6,
1981. The Council by Resolution No.81-20Aadopted on July 6, 1981,
rejected the bid received for the Bonds and authorized the City Manager
to negotiate the sale of the Bonds as provided by law. This Council
now finds it necessary and desirable to the sound financial manage-
ment of the City to readvertise the Bonds for public sale in accor-
dance with the terms of Authorizing Resolution; provided, however,
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that if a suitable offer to purchase the Bonds is received by the City
prior to August 4, 1981, the City reserves the right to accept such
an offer in accordance with the terms of Resolution No.81-20A, of
July 6, 1981. The Authorizing Resolution is unaffected by
this Resolution except to the extent that the time and place
of the sale of the Bonds specified therein is modified by this
Resolution.
2. FINDINGS. It is hereby determined that it is necessary
and desirable that the City finance a portion of the Public
Redevelopment Costs (as defined in the Authorizing Resolution) of
a Redevelopment Project Area (as defined in the Authorizing Resolu-
tion) 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 defined in the Authorizing
Resolution) .
3. 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
4It accordance with the terms of the following Official Notice of Sale:
4It
OFFICIAL
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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., Thursday, August 13, 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 regu~ar
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.
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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
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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
8xceed 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.
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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 purchaser, the printed and executed Bonds, the unqualified
opinion thereon of bond counsel, ~nd 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
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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
purchaser. 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 informaility
in any bid.
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
4It Dated: July 27, 1981
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4. SPECIAL PROVISIONS.
4It 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. In accordance with the provisions of Minnesota
Statutes, 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.
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 Thursday, August 13, 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.
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The motion for the adoption of the foregoing resolution was
duly seconded by Member
Horn
and upon vote
being taken thereon, the following voted in favor of the motion:
Acting Mayor Neveaux, Councilmen Swenson, Horn and Geving.
and the following voted against: ~ None.
whereupon said resolution was declared duly passed and adopted.
ATTEST:
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STATE OF MINNESOTA
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COUNTIES OF CARVER AND
HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the City Manager of the City of
Chanhassen, Minnesota, do hereby certify that I have carefully
compared the attached and foregoing extract of a regular meeting
of the City Council of the City of Chanhassen, Minnesota, held
on Monday, July 27, 1981, with the original thereof on file
in my office and the same is a full, true and correct copy thereof,
insofar as the same related to a request for the issuance and
sale of $4,715,000 General Obligation Tax Increment Bonds of the
City.
WITNESS My hand as such City Manager of the City of Chanhassen,
Minnesota, and the seal of the City, this 18th day of Auqust
1981.
( SEAL)
~{l {k~
City Manager
City of Chanhassen, Minnesota
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EXHIBIT liB"
NOTICE OF SALE
$4,715,000 GENERAL OBLIGATION TAX INCREMENT
BONDS OF 1981, SERIES A
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
Sealed bids for the purchase of the above Bonds will be
received until 3:00 o'clock p.m., C.T., Thursday, August 13, 1981,
in the Board Room at the offices of Juran & Moody, Inc., 114
East Seventh Street, St. Paul, Minnesota. Dated August 1,
1981, the Bonds will mature on August 1 in the years and amounts
as follows:
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
All Bonds of this issue maturing after August 1, 1991 will be
subject to redemption on said date and any interest payment date
thereafter at par plus accrued interest. Interest will be payable
on August 1, 1982, and semiannually thereafter. Each rate must
be in an integral multiple of 5/100 of 1% and no rate may exceed
12% per annum. Minimum price, $4,625,000. An unqualified legal
opinion will be furnished by Messrs. LeFevere, Lefler, Kennedy,
O'Brien & Drawz, a Professional Association, of Minneapolis,
Minnesota. The purpose of the Bonds is to finance public redevelopment
costs in a Redevelopment Project Area in the City.
BY ORDER OF THE CITY COUNCIL
Isl Donald W. Ashworth
City Manager
Dated: July 27, 1981.