81-28
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After due consideration of the bids, Councilmember Neveaux
introduced the following resolution and moved its adoption:
RESOLUTION NO. 81-28
RESOLUTION AWARDING THE SALE OF $4,715,000
GENERAL OBLIGATION TAX INCREMENT BONDS OF 1981, SERIES A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT.
BE IT RESOLVED By the City Council of the City of
Chanhassen, Minnesota, as follows:
1. The bid of Banc Northwest/First Bank of Minneapolis
to purchase $4,715,000 General Obligation Tax Increment Bo~d~ of 1981,
Series A, of the City described in the notice of sale thereof is
hereby found and determined to be the highest and best bid received
pursuant to duly advertised notice of sale and shall be and is hereby
accepted, such bid being to purchase such bonds at a price of
$4,631,905.82 plus accrued interest to date of delivery, such bonds to
bear interest as follows:
Year of Maturity
Interest Rate Per Annum
1984 through 1991
1992 and 1993
1994 and 1995
1995 through 1999
11.50%
11.60%
11.80%
12.00%
The sum of $6,905.82, being the amount bid in excess of $4,625,000,
and the sum of $500,000 representing capitalized interest, shall be
credited to the Debt Service Fund hereinafter created. The City
Treasurer is directed to retain the good faith check of the successful
bidder pending completion of the sale and delivery of the bonds. The
Ci ty Manager is directed to return the checks of the unsuccessful
bidders forthwith.
2. The City shall forthwith issue and sell its General
Obligation Tax Increment Bonds of 1981, Series A, (the "Bonds"), in
the principal amount of $4,715,000, dated August 1, 1981, the Bonds
being 943 in number and numbered 1 to 943, both inclusive, in the
denomination of $5,000 each, bearing interest as above set forth, all
interest payable August 1, 1982, and semiannually thereafter on
February 1 and August 1 in each year, and which Bonds mature serially
on August 1 in the years and amounts as follows:
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BANe NORTHWEST/FIHST BANK MPLS., Mgr.
~-ri ca-n-Nat i onal Ban-k---
Cronin & Marcotte, fne.
Merrill Lynch White Weld
Capital Markets Grp.
John Nuveen & Co., Inc.
Dougherty Dawkins Strand & Yost
Moore Juran & Company, I nc.
M. H. Novick & Co., Inc.
In Association With
Oain Bosworth. Inc.) Jt. Managers
The First National Bank of St. Paul)
Allison Williams Company
nlyth Eastman Paine Webber Inc.
Piper, Jaffray & Hopwood, Inc.
Dean Witter Reynolds, Inc.
Robert W. Baird & Co., Inc.
Miller & Schroeder Municipals, Inc.
Robert S. C. Peterson,- INc.
Par Va] ue
Purchase Price
$ 4 I 71 5 1000.00
$~31.9U5.82
Total Int~rest Cost $~32.594.18
Net Interest Rate
$
11 . 999%
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YEAR AMOUNT YEAR, AMOUNT
e 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
The Bonds maturing after August 1, 1991, are sub~ect to redemption in
inverse numerical order on said date and on any interest payment date
thereafter at a price of par plus accrued interest to date of redemp-
tion.
3. Both principal of and interest on the Bonds shall be
payable at the main office of the Northwestern National Bank of
Minneapolis, in the City of Minneapolis, Minnesota, and the City shall
pay the reasonable charges of said bank for its services as paying
agent.
4. The Bonds and the interest coupons to be thereto at-
tached shall be in substantially the following form:
No.
$5,000
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
GENERAL OBLIGATION TAX INCREMENT BOND OF 1981, SERIES A
KNOW ALL MEN BY THESE PRESENTS that the City of Chanhassen,
Carver and Hennepin Counties, Minnesota, acknowledges itself to be
indebted and, for value received, hereby promises to pay to bearer the
sum of FIVE THOUSAND DOLLARS on the 1st day of August, 19 , and to
pay interest thereon from the date hereof until the principal amount
is paid at the rate of percent ( %) per annum,
interest to maturity payable August 1, 1982, and semiannually there-
after on the 1st day of February and the 1st day of August in each
year in accordance with and upon presentation and surrender of the
interest coupons hereto attached as they severally become due. Both
principal of and interest on this bond are payable at the
in any coin or currency of the United States of America which on the
date of payment is legal tender for public and private debts.
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All bonds of this issue maturing after August 1, 1991, are sub-
ject to redemption at the option of the City in inverse numerical
order 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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This bond is one of an issue of bonds in the total principal
amount of $4,715,000, all of like date and tenor except as to
maturity, interest rate, redemption privilege and serial number, all
issued by the City for the purpose of providing money to defray the
expenses incurred and to be incurred in financing a Redevelopment
Project in the City, pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota
Statutes, Sections 273.71 to 273.78 inclusive, and Sections 462.411 to
462.711, and is payable primarily from tax increments resulting from
increases in assessed valuation of real property in the Project Area
in which said Project is located pursuant to a Tax Increment Agreement
executed by the City and the Housing and Redeve_lopment Authority of
the City of Chanhassen on June 11, 1981, but constitutes a general
obligation of the City, and, to provide moneys for the prompt and full
payment of the principal of and interest on the bonds as the same
become due, the full faith and credit of the City is hereby irre-
vocably pledged, and the City Council will levy ad valorem taxes, if
required for such purpose, which taxes may be levied on all of the
taxable property in the City without limitation as to rate or amount.
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IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions
and things required by the Constitution and laws of the State of
Minnesota to be done, to happen and to be performed precedent to and
in the issuance of this bond have been done, have happened and have
been performed in regular and due form, time and manner as required by
law; and that this bond, together with all other indebtedness of the
City outstanding on the date hereof and on the date of its actual
issuance and delivery does not exceed any constitutional or statutory
limitation thereon.
IN WITNESS WHEREOF, the the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, by its City Council, has caused this
bond to be executed by the facsimile signature of the Mayor and the
manual signature of the City Manager and sealed with a facsimile of
the corporate seal of the City and the interest coupons hereto
attached to be executed and authenticated by the facsimile signatures
of said officers, all as of August 1, 1981.
(Facsimile Signature)
Mayor
(manual signature)
City Manager
(facsimile seal)
(Form of Coupon)
No.
$
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On the 1st day of August (February), 19_ , the City of
Chanhassen, Carver and Hennepin Counties, Minnesota, will pay to
bearer at the
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the amount shown hereon for interest then due on its General Obliga-
tion Tax Increment Bond of 1981, Series A, dated August 1, 1981, No.
(facsimile signature)
Mayor
(facsimile signature)
City Manager
5. The City Manager shall obtain a copy of the proposed
approving legal opinion of Messrs. LeFevere, Lefler, Kennedy, O'Brien
& Drawz, A Professional Association, of Minneapolis, Minnesota, which
shall be complete except as to dating thereof and shall cause said
opinion to be printed on each Bond, together with a certificate to be
signed by the facsimile signature of the City Manager in ~ub~tantially
the following form:
I hereby certify that the foregoing is a full, true and
correct copy of the legal opinion executed by the above
named attorneys, except as to the dating thereof, which
opinion has been handed to me for filing in my office prior
to the time of bond delivery.
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(facsimile signature)
City Manager
City of Chanhassen, Minnesota
The City Manager is hereby authorized and directed to execute such
certificate in the name of the City upon receipt of such opinion and
to file the opinion in the City offices.
6. The Bonds shall be executed on behalf of the City by the
facsimile signature of the Mayor and the manual signature of the City
Manager, and the interest coupons shall be executed and authenticated
by the printed facsimile signatures of the Mayor and City Manager, and
the facsimile of the corporate seal of the City may, but need not be,
printed thereon; provided, however, that the signatures of both the
Mayor and the City Manager may be facsimile signatures, duly authenti-
cated by the manual signature of an officer of The First National Bank
of St. Paul, St. Paul, Minnesota, hereby designated authenticating
agent pursuant to Minnesota Statutes, Section 475.55, Subdivision 1,
and, if the bonds are to be so executed and authenticated, the bond
form set forth in paragraph 4 hereof shall be modified as follows:
a) Substitute the following paragraph for the final paragraph
of the bond:
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"IN WITNESS WHEREOF, the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, by its City Council, has
caused this bond to be executed by the facsimile signatures
of its Mayor and City Manager and to be sealed with (the
facsimile of) the corporate seal of the City, and the
interest coupons hereto attached to be executed and authen-
ticated by the facsimile signatures of said officers, and
such signatures to be authenticated by the manual signature
of the City's duly authorized Authenticating Agent on the
reverse side of this bond, all as of August 1, 1981."
b)
Add the following on the reverse side o~ the bond:
"This Bond is one of the Bonds of the series designated
herein issued pursuant to the resolution authorizing its
issuance and delivery."
The First National Bank of St. Paul
As Authenticating Agent
By
Its Authorized Officer
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The Bonds, when fully executed, shall be delivered by the City Manager
to the purchaser thereof upon receipt of the purchase price, and the
purchaser shall not be obligated to see to the proper application
thereof.
7. The Bonds issued hereunder and additional bonds Sl.ml.-
larly authorized and issued shall be payable from the General Obliga-
tion Tax Increment Bonds Fund hereby created (the "Debt Service Fund")
and the proceeds of any general taxes hereafter levied for the Bonds
and all tax increments (the "Tax Increments") from the Project Area in
which the project financed by the Bonds (the "Project") is located
received by the City from the Housing and Redevelopment Authority of
Chanhassen (the "Authority") pursuant to the Tax Increment Agreement
(the "Agreement") executed by the City and the Authority on June 11,
1981; and such tax increments and taxes are hereby irrevocably appro-
priated and pledged to the Debt Service Fund. If any payment of
principal or interest on the Bonds shall become due when there is not
sufficient money in the Debt Service Fund to pay the same, the City
Manager shall pay such principal or interest from the general fund of
the City and such fund may be reimbursed for such advances out of
proceeds of the tax increments when received. Moneys in the Debt
Service Fund shall be invested as provided in paragraph 11.
8. It is hereby determined that the Tax Increments
received by the City under the Agreement will equal at least 20% of
the cost of the Project. To further secure the payment- of principal
and interest on the Bonds, there is hereby levied a direct, annual,
irrepealable ad valorem tax levy against all taxable properties in the
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City, which tax levies shall be in the years and amounts as follows
(year stated being year of levy of collection the following year):
YEAR
LEVY
YEAR
LEVY
1982 $60,000
1983 60,000
1984 15,000
It is hereby determined that the estimated coll_ection of Tax Incre-
ments for the payment of the Bonds and the foregoing ad valorem tax
levies will produce at least five percent in excess of the amount
needed to meet, when due, the principal and interest payments on the
Bonds. The City Manager is directed to file a certified copy of this
resolution with the County Auditors of Carver and Hennepin Counties
and obtain the certificates required by Minnesota Statutes, Section
475.63. The tax levy herein provided shall be irrepealable until all
of the Bonds are paid, provided that the City Manager may annually,
prior to October 10th, certify to the respective County Auqitors the
amount available in the Debt Service Fund to pay principal and
interest due during the ensuing year, and the County Auditors shall
thereupon reduce the levy collectible during such year by the amount
so certified.
10. There is hereby created a Project Area Acquisition Fund
(the "Acquisition Fund"). The proceeds from the sale of the Bonds,
less capitalized interest, accrued interest, and the sum of $6,905.82
(which sums are to. be deposited in the Debt Service Fund), shall be
deposited in the Acquisition Fund. The City Manager shall disburse to
the Housing and Redevelopment Authority of the City from the Acquisi-
tion Fund the amounts necessary to pay the Public Redevelopment Costs
of the Project Area in accordance with the terms of the Agreement.
Any balance in the Acquisition Fund remaining upon completion of the
Project Area and expenditure of necessary Public Redevelopment Costs
shall be transferred to the Debt Service Fund.
11. It is found and determined that the itemization of
Public Redevelopment Costs set out in Resolution 81-20 authorizing the
sale of the Bonds must be modified to reflect (i) changed circum-
stances relating to the amounts estimated to be required for item B
listed therein, namely "Option and Acquisition Costs: Riviera, Huber,
Mobil Properties and Other Properties", and (ii) amounts necessary for
capitalized interest on the Bonds. That cost item is reduced to
$300,000. The sum of $100,000 from Bond proceeds shall be deposited
in the Debt Service Fund. The sums in the Debt Service Fund shall be
invested and reinvested as authorized by law. Investment earnings of
the Debt Service Fund in an amount not to exceed $100,000 may be
transferred to the Acquisition Fund for the payment of any Public
Redevelopment Cost, provided, however, that no investment earnings may
be so transferred if such transfer reduces the amount in the Debt
Service Fund necessary to pay interest on the Bonds in each of the
years 1982, 1983 and 1984. Thus modification from the originally
proposed capitalization of the Bonds is required because of the extra-
ordinarily high rate of interest borne by the Bonds.
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12. The officers of the City are hereby authorized and
directed to prepare and furnish to the purchaser of the Bonds and to
the attorneys approving the same, certified copies of proceedings and
records of the City relating to the Bonds and to the financial condi-
tion and affairs of the City, and such other certificates, affidavits
and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and
under their control, relating to the validity and marketability of the
Bonds and such instruments, including any heretofore furnished, shall
be deemed representations of the City as to the facts stated therein.
13. The Mayor and the City Manager are hereby authorized
and directed to certify that they have examined the official statement
or prospectus prepared and circulated in connection with the issuance
and sale of the Bonds and that to the best of their knowledge and
belief said statement is a complete and accurate representation of the
facts and representations made therein as of the date of said official
statement or prospectus as it relates to the City.
The motion for the adoption of the foregoing resolution was
duly seconded by
Mayor Hamilton
, and upon vote
being taken thereon, the following voted in favor thereof: Mayor
Hamilton, Councilmen Neveaux, Swenson and Horn.
and the following voted against: CounciDnan Geving.
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
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SS.
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting
Manager of the City of Chanhassen, Minnesota do bereby certify that I
have carefully compared the attached and foregoing extract of minutes
of a special meeting of the City Council held on Thursday, August 13,
1981, with the original thereof on file in my office and the same is a
full, true and complete transcript therefrom insofar as the same
relates to the issuance and sale of $4,715,000 General Obligation Tax
Increment Bonds of 1981, Series A, of the City.
WITNESS My hand as Manager and the corporate seal of the
City this
24th
day of
August
, 1981.
L2 ()J.h~
City Manager .
City of Chanhassen, Minnesota
(SEAL)
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STATE OF MINNESOTA
DIRECTOR OF PROPERTY TAXATION
CERTIFICATE AS TO
REGISTRATION WHERE NO
AD VALOREM TAX LEVY
COUNTY OF HENNEPIN
I, the undersigned Deputy Director of Property Taxation of
Hennepin County, Minnesota, hereby certify that a resolution adopted
by the governing body of the City of Chanhassen, Minnesota, on
Thursday, August 13, 1981, levying taxes for the payment of $4,715,000
General Obligation Tax Increment Bonds, Series A, of siad municipality
dated August 1, 1981, has been filed in my office and said bonds have
been entered on the register of obligations in my office and that such
tax has been levied as required by law.
WITNESS My hand and official seal this
I\.~ ,1981.
'3.tJ
day of
~ QAI W V....tL
,
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~
uty Director of Property
Taxation
Hennepin County, Minnesota
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STATE OF MINNESOTA
COUNTY AUDITOR'S
CERTIFICATE AS TO
REGISTRATION WHERE NO
AD VALOREM TAX LEVY
COUNTY OF CARVER
I, the undersigned County Auditor of Carver County, Minnesota,
hereby certify that a resolution adopted by the governing body of the
City of Chanhassen, Minnesota, on Thursday, August 13, 1981, levying
taxes for the payment of $4,715,000 General Obligation Tax Increment
Bonds, Series A, of siad municipality dated August 1, 1981, has been
filed in my office and said bonds have been entered on the register of
obligations in my office and that such tax has been levie~ a& required
by law.
:JS~
day of
O:;::;Y
hand and official seal
this
, 1981.
ff/21t:4.rL; j/tiL
Carver County, Minnesota
(SEAL)