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81-24 . e e 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. * * * * * * * * * 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, e 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 e 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. e 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. e Interest e 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. e 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 e 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. e 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 1 e . . l' '.. 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. e 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: e , .. '.. , e tit . STATE OF MINNESOTA ) ) ) ) SSe ) ) 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 .~ r-:. . . . ',"" ~ ... . e e 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.