84-44
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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, August 20. 1984. commenc-
ing at 7:30 o'clock P.M.
The following members were present:
Mayor Hamilton, Councilmembers
Watson, SWenson, Geving and Hom.
and the following were. absent:
None
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The following resolution was presented by Councilmember Geving
who moved its adoption:
RESOLUTION NO. 84~44
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $845.000 GENERAL OBLIGATION BONDS
CONSISTING OF $575.000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1984. $215.000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1984. and $55.000 GENERAL OBLIGATION
EQUIPMENT CERTIFICATES OF INDEBTEDNESS OF 1984. SERIES 2.
BE IT RESOLVED By the City Council of the City of Chanhassen. Carver
and Hennepin Counties. Minnesota as follows:
Section 1. Improvement Bonds.
1. 01. The following assessable public improvements (Improvements)
have been made. duly ordered or contracts let for the construction thereof.
by the City pursuant to the provisions of Minnesota Statutes. Chapters 429
and 475 (Act):
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Pheasant Hill Project, Sanitary Sewer, Water nnd Storm Sewer.
Construction
Engineering
Administrative
Contingency
Issuance Costs
Capitalized Interest
$414,300
58,002
12,429
33,144
10,700
35,155
$563,730
1.02. It is further determined that the City shall issue and sell its
General Obligation Improvement Bonds of 1984 (Improvement Bonds) in the
amount of $563,730 to finance costs of the Project. The City shall also
issue and sell additional Improvement Bonds representing interest in the
amount of $11,270 as authorized by Section 475.56 of the Act, and any
excess of the purchase price of the Improvement Bonds over the sum of
$563,730 shall be credited to the debt service fund for the Improvement
Bonds for the payment of interest first coming due thereon.
1.03. The Improvement Bonds shall be issued and sold in accordance
with the terms of the Official Notice of Sale set out in Section 4.
Section 2. Tax Increment Bonds.
2.01. The City has pursuant to Minnesota Statutes, Chapter 472A and
Sections 273.71 to 273.78 duly established Development District No. 2
(District) and Tax Increment Economic Development District No. 2 (TIF
District) within the District.
2.02. The City has duly adopted a Development Program and Tax Incre-
ment Financing Plan (TIF Plan) for the District which has been designated
by the City as the TID No.2 Park One Project (Project).
2.03. The TIF Plan has identified public development costs (Costs) of
the Project to be financed in whole or in part by the proceeds of general
obligation bonds of the City secured by taxes and tax increments from the
TIF District. The Costs to be financed are as follows:
West 77th Street Project, Sanitary Sewer, Water, and
Street Improvements.
Construction
Engineering
Administrative
Contingency
Capitalized Interest
(Less contribution from
other funds)
Cost of Issuance
$230,000
32,200
6,900
11 ,500
12,800
(90,000)
7,386
Total
$210,786
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2.02. It is further determined that the City shall issue and sell its
General Obligation Tax Increment Bonds of 1984 (Tax Increment Bonds) in the
amount of $210,786 to finance development costs of the Project. The City
shall also issue and sell additional Tax Increment Bonds representing
interest in the amount of $4,214 as authorized by Section 475.56 of the
Act, and any excess of the purchase price of the Tax Increment Bonds over
the sum of $210,786 shall be credited to the debt service fund for the Tax
Increment Bonds for the payment of interest first coming due thereon.
2.03. The Tax Increment Bonds shall be issued and sold in accordance
with the terms of the Official Notice of Sale set out in Section 4.
Section 3. Certificate of Indebtedness.
3.01. The City is authorized by Minnesota Statutes, Section 412.301
to issue its certificates of indebtedness to finance the purchase of street
maintenance equipment.
3.02. It is determined that it is necessary and expedient for the
City to issue its certificates of indebtedness for the purchase of two dump
trucks and related expenses as follows:
Purchase Price
Costs of Issuance
$51,306
2,616
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Total
$53,922
3.03. The City shall therefore issue and sell its General Obligation
Equipment Certificates of Indebtedness of 1984, Series 2 (Certificates) in
the amount of $53,922 and shall issue and sell additional Certificates
representing interest as authorized by Section 475.56 of the Act in the
amount of $1,078. Any excess of the purchase price of the Certificates
over the sum of $53,922 shall be credited to the debt service fund for the
Certificates to pay interest first coming due thereon.
3.04. The Certificates shall be issued and sold in accordance with
the terms of the Official Notice of Sale set out in Section 4.
Section 4. Official Notice of Sale.
4.01. The Improvement Bonds, the Tax Increment Bonds and the Certifi-
cates (collectively, 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
$845,000 GENERAL OBLIGATION BONDS
CO~SISTING OF $575,000 GENERAL OBLIGATION Il~ROVEMENT
BONDS OF 1984, $215,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1984, and $55,000 GENERAL OBLIGATION
EQUIPMENT CERTIFICATES OF INDEBTEDNESS OF 1984, SERIES 2
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 11:00 a.m. C.T. at the offices of Juran
& Moody, Inc., Minnesota Mutual Life Center, 400 North Robert Street, Suite
800, St. Paul, Minnesota, 55101, at which time the bids will be opened and
tabulated by the Chanhassen City Manager for presentation to the City
Council for its consideration at a special meeting at 7:30 p.m. C.T. on
Monday, September 24, 1984.
Purpose and Security
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Three issues of general obligations (Bonds) are offered:
$575,000 General Obligation Improvement Bonds of 1984 (Improvement
Bonds) . The purpose of the Improvement Bonds is to finance all or a
portion of the costs of various assessable public improvements in the City.
The Improvement Bonds will be general obligations of the City payable
primarily from special assessments against benefited properties.
$215,000 General Obligation Tax Increment Bonds of 1984 (Tax Increment
Bonds). The purpose of the Tax Increment Bonds is to finance all or a part
of the costs of improvements. The Tax Increment Bonds will be general
obligations of the City payable from tax increments in an economic develop-
ment tax increment financing district in the City.
$55,000 General Obligation Equipment Certificates of 1984, Series 2
(Certificates). The purpose of the Certificates is to finance the costs of
the acquisition of various items of street maintenance equipment. The
Certificates will be g-eneral obligations of the City payable from general
ad valorem taxes and the full faith, credit and taxing powers of the City
are pledged to their payment.
Date and Maturities
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The Bonds will be dated October 1, 1984, will be in fully regis-
tered form in denominations of integral multiples of $5,000, and will
mature on December 1, in the following years and "amounts:
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Year Bonds Bonds Certificates Issue
1985 $ -0- $ 40,000 $10,000 $ 50,000
1986 70,000 40,000 15.000 125,000
1987 70,000 40,000 15,000 125,000
1988 70,000 45,000 15,000 130,000
1989 70,000 50,000 120,000
1990 70,000 70,000
1991 75,000 75,000
1992 75,000 75,000
1993 75,000 75,000
$575,000 $215,000 $55,000 $845,000
Redemption
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The Tax Increment Bonds and the Certificates are issued without
right of prior redemption. The City may elect on December 1, 1989 and on
any interest payment date thereafter to prepay Improvement Bonds due on or
after December 1, 1990. Redemption may be in whole or in part of the
Improvement Bonds subject to prepayment. If prepayment is in part those
Improvement Bonds remaining unpaid which have the latest maturity date will
be prepaid first. If only part of the Bonds having a common maturity date
are called for prepayment the specific Bonds to be prepaid will be chosen
by lot by the Registrar. All prepayments shall be at a price of par and
accrued interest.
Interest
Interest on the bonds will be payable on June 1, 1985, and
semiannually thereafter on each December 1 and June 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 the maximum rate of interest permitted by law on the day of
sale.
Paying Agent/Registrar
Principal and interest will be made payable at the office of
First Trust Company of Saint Paul in St. Paul, Minnesota. The City will
pay the reasonable charges of the Paying Agent and Registrar.
CUSIP Numbers
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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
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expense of the purchaser, if the purchaser \"aives any extension of the time
of delivery caused thereby.
Delivery
Within 40 days after sale, the City will furnish and deliver to
the office of the purchaser or, at his option, will deposit with a bank in
the United States selected by him 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, and a
certificate stating that no litigation in any manner questioning their
validity 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, 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
LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association,
Minneapolis, Minnesota. The legal opinion will be printed on the Bonds at
the request of the purchaser. The legal opinion will state, among other
things, that the bonds are valid and binding general obligations of the
City, that the City is obligated and required to levy taxes for the prin-
cipal and interest thereon as the same become due without limit as to rate
or amount, and that the interest on the Bonds is exempt from federal income
taxation.
Type of Bid - Amount
Sealed bids for all of the Bonds (the Bonds will not be sold
separately) must be mailed or delivered to the undersigned and must be
received prior to the time of said meeting. Each bid must be unconditional
and must be accompanied by a cashier's or certified check or bank draft in
the amount of $16,900, payable to the City Hanager, 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 $845,000 bid for principal) will be deemed the
most favorable. No oral bid and no bid of less than $828,438 for principal
plus accrued interest on all of the Bonds will be considered. 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/ Donnld Ashworth
City Manager
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Dated: August 20, 1984.
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3. The City Manager is authorized and directed to advertise the Bonds
for sale in accordance with the foregoing notice of sale and to cause the
abbreviated notice of sale attached hereto as Exhibit A, to be published in
the manner required by law. The City Council shall meet on Monday,
September 24, 1984, at 7:30 o'clock p.m. for the purpose of considering
sealed bids on the Bonds and taking any other appropriate action.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember
Horn
, and upon vote being
taken thereon, the following voted in favor: Mayor Hamilton, Councilmembers
SWenson, Watson, Horn and Geving.
and the following voted against: None
whereupon said resolution was declared duly passed and adopted.
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Exhibit "A"
NOTICE OF SALE
$845,000 GENERAL OBLIGATION BONDS
CO~SISTING OF $575,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1984, $215,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1984, and $55,000 GENERAL OBLIGATION
EQUIP~lliNT CERTIFICATES OF INDEBTEDNESS OF 1984, SERIES 2
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be received until 11:00 a.m. C.T. at the offices of Juran
& Moody, Inc., Minnesota Mutual Life Center, 400 North Robert Street, Suite
800, St. Paul, Minnesota, 55101, at which time the bids will be opened and
tabulated by the Chanhassen City Manager for presentation to the City
Council for its consideration at a special meeting at 7:30 p.m. C.T. on
Monday, September 24, 1984.
Three issues of general obligations (Bonds) are offered:
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$ 575,000 General Obligation Improvement Bonds of 1984 (Improvement
Bonds) . The purpose of the Improvement Bonds is to finance all or a
portion of the costs of various assessable public improvements in the City.
The Improvement Bonds will be general obligations of the City payable
primarily from special assessments against benefited properties.
$215,000 General Obligation Tax Increment Bonds of 1984 (Tax Increment
Bonds). The purpose of the Tax Increment Bonds is to finance all or a part
of the costs of improvements. The Tax Increment Bonds will be general
obligations of the City payable from tax increments in an economic develop-
ment tax increment financing district in the City.
$55,000 General Obligation Equipment Certificates of 1984, Series 2
(Certificates). The purpose of the Certificates is to finance the costs of
the acquisition of various items of street maintenance equipment. The
Certificates will be general obligations of the City payable from general
ad valorem taxes and the full faith, credit and taxing powers of the City
are pledged to their payment.
The Bonds will be dated October 1, 1984, will be in fully regis-
tered form in denominations of integral multiples of $5,000 and will mature
on December 1 in the following years and amounts:
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Year Bonds Bonds Certificates Issue
1985 $ -0- $ 40,000 $10,000 $ 50,000
1986 70,000 40,000 15,000 125,000
1987 70,000 40,000 15,000 125,000
1988 70,000 45,000 15,000 130,000
1989 70,000 50,000 120,000
1990 70,000 70,000
1991 75,000 75,000
1992 75,000 75,000
1993 75,000 75,000
$575,000 $215,000 $55,000 $845,000.
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Interest on the bonds will be payable on June 1, 1985, and
semiannually thereafter on each December 1 and June 1. The Tax Increment
Bonds and the Certificates will be issued without option of prior payment.
Tax Increment Bonds maturing after December 1, 1989 will be subject to
redemption on that date and on any interest payment date thereafter at par.
Each rate must be in an integral multiple of 5/100 of 1% and no rate may
exceed the maximum rate of interest permitted by law on the day of sale.
}1inimum price, $828,438. An unqualified legal opinion will be furnished by
LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association,
Minneapolis, Hinnesota.
The Official Notice of Sale contained in the Official Statement for
the Bonds may contain additional terms concerning the offering. In the
event of a variance between statements in this Notice of Bond Sale and the
Official Statement, the previous of the latter shall be those to be com-
plied with.
BY ORDER OF THE CITY COUNCIL
/s/ Donald Ashworth
City Hanager
Dated: August 20, 1984.
Further Information:
Juran & Moody, Inc.
400 No. Robert Street
St. Paul, MN 55101
(612) 224-1500
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STATE OF MINNESOTA
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COUNTIES OF-CARVER
AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City
~lanager of the City of Chanhassen, Minnesota do hereby certify that I have
carefully compared the attached and foregoing extract of minutes of a
regular meeting of the City Council of said City held on August 20, 1984,
with the original thereof on file in my office and the same is a full, true
and complete transcript thereof, insofar as the same relates to the issu-
ance and sale of $845,000 General Obligation Bonds of the City.
WITNESS My hand as such City Manager and the corporate seal of
the City this
2200
. 1984.
August
day of
All a~
City Manager
City of Chanhassen, Minnesota
(S EAL)