89-124 B
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CITY OF CHANHASSEN
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STATE OF MINNESOTA
COUNTIES OF CARVER
AND HENNEPIN
1. the undersigned. being the duly qualified and acting City
Manager of the City of Chanhassen. Minnesota. hereby certify that 1
have carefully compared the attached and foregoing extract of minutes
of a regular meeting of the City Council of the City held on Monday.
November 20. 1989. with the original minutes on file in my office and
the extract is a full. true and correct copy of the minutes. insofar
as they relate to the issuance and sale of $725.000 Taxable General
Obligation Tax Increment Bonds. Series 1989B of the City~
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WITNESS My hand as City Manager and the corporate 8eal of
the City this ~ day of November
. 1989.
/C)
City Manager
City of Cbanbassen.
\ Qo.:~
Minnesota
(SEAL)
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Extract of Minutes of Heeting
of the City Council of the City
of Chanhassen. Carver and Hennepin Counties. Minnesota
Pursuant to due call and notice thereof a regularmeeting of the City
Council of the City of Chanhassen. Carver and Hennepin Counties. Minnesota.
was held at the City Hall in ~h. City on Monday. November 20. 1989. com-
mencing at 7:30 P.M.
The following members of the Council were present: Mayor Chmiel,
Council members Workman, Dimler, Jolmson and Boyt.
and the following were absent: None
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The following resolution was presented by Member Dimler who
moved its adoption:
RESOLUTION NO. 89-124B
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RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $725.000 TAXABLE GENERAL OBLIGATION
TAX INCREMENT BONDS. SERIES 1989B
BE IT RESOLVED By tbe City Council of the City of Chanhassen. Carver
, .
and Hennepin Counties. Minnesota. (City) as follows:
1. - It is hereby determined that:
(a) tbe City has duly established a Downtown Redevelopment
Project Area and Tax Increment Financing District No. 1 (TIF
District) pursuant to Minnesota Statutes. Chapter 469 (Act);
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(b) the City is authorized by section 469. 178 of the Act to
issue and sell its general obligations to pay all or a
portion of the public redevelopment costs (Costs) related to
the TIF District as identified in the tax increment financ-
ing plan (Plan) for the TIF District.
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(c) the Plan lists the following Costs to be financed by the
general obligations:
Public Improvements
Project Budget:
Grocery/Retail
Hotel
Subtotal
Capitalized Interest
Bond Discount at 1.3%
Costs of Issuance
Insurance at 1.2%
Total
Less: Investment Earnings
New Bond Issue
Total Development Costs
$ 490,000
150,000
$ 640,000
46,400
9,425
21,000
8,700
$ 725,52S
(525)
$ 725,000
(d) it is necessary and expedient to the sound financial man-
agement of the affairs of the City and tbe TIF District to
issue $725,000 Taxable General Obligation Tax Increment
Bonds, Series 1989B (Bonds) to provide financing for the
Costs;
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2. To provide financing for the Costs, the City viII issue and sell
Bonds in the amount of $715,575. To provide in part the additional inter-
est required to market the Bonds at this time, additioaal Bonds will be
issued in the amount of $9,425. The excess of the purchase price of the
Bonds over the sum of $715,575 will be credited to tbe debt service fund
for the Bonds for the purpose of paying intereat first coming due on the
additional Bonds. The Bonds will be issued, sold and Aelivered in accor-
dance with the terms of the following Official Terms of Offering:
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OFFICIAL TERMS OF OFFERING
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$725,000
CITY OF CHANHASSEN, MINNESOTA
TAXABLE GENERAL OBUGATION TAX INCREMENT BONDS, SERIES 1989B
Sealed bids for the Bonds will be received by the City Manager or his designee on Monday,
December 4, 1989, until 2:00 P.M., Central Time, at the offices of SPRINGSTED Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota after which time they will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 1989, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1990. Interest will
be computed on the basis of a 360-day year of twelve 3O-day months and will be rounded
pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each,
or in integral multiples thereof, as requested by the purchaser, and fully registered as to
principal and interest. Principal will be payable at the main corporate office of the registrar and
interest on each Bond will be payable by check or draft of the registrar mailed to the registered
holder thereof at the holder's address as it appears on the books of the registrar as of the
close of business on the 15th day of the immediately preceding month.
The Bonds will mature February 1 in the years and amounts as follows:
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1992 $75,000
1993 $150,000
1994 $200,000
1995 $300,000
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax
increment income from the City's Tax Increment Financing District NO.1. The proceeds will be
used to finance non-public costs of projects within the Tax Increment Financing District.
TAXABILITY OF INTEREST
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The Interest to be paid on the Bonds is Includable in gross income of the recipient for United
States and State of Minnesota Income tax purposes, and is subject to Minnesota Corporate
and bank excise taxes measured by net Income.
TYPE OF BID
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Bids shall be for not less than $715,575 and accrued interest on the total principal amount of
the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $7,250,
payable to the order of the City. No bid will be considered for which said check has not been
received. The City will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser
fails to comply with the accepted bid, said amount will be retained by the City. No bid can be
withdrawn after the time set for receiving bids unless the meeting of the City scheduled for
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award of the ~ids Is adjourned, recessed, or continued to another date without award of the
Bonds having been made. Rates shall be In Integral multiples of 5/100 or 1/8 of 1 %. Rates
must be in ascending order. Bonds of the same maturity shall bear a single rate from the date
of the Bonds to the date of maturity. No conditional bid will be accepted.
AWARD
The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be
determined by the dedu~lon of the premium, if any, from, or the addition of any amount less
than par, to the total dollar interest on the Bonds from their date to their final scheduled
maturity. The City's computation of the total net dollar Interest cost of each bid, In accordance
with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive Informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (II) reject all bids without cause, and,
(Iii) reject any bid which the City determines to have failed to comply with the terms herein.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
CUSIP NUMBERS
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If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP Identification numbers
shall be paid by the purchaser.
SETTLEMENT
Prior to December 31, 1989, the Bonds will be delivered without cost to the purchaser at a
place mutually satisfactory to the City and the purchaser. Delivery will bEt subject to receipt by
the purchaser of an approving legal opinion of Holmes & Graven, Chartered of Minneapolis,
Minnesota, which opinion will be printed on the Bonds, and of customary closing papers,
including a no-litigation certificate. On the date of settlement payment for the Bonds shall be
made in federal, or equivalent, funds which shall be received at the offices of the City or its
designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of
payment for the Bonds shall have been made impossible by action of the City, or its agents,
the purchaser shall be liable to the City for any loss suffered by the City by reasons of the
purchaser's non-compllance with said terms for payment.
OFFICIAL STATEMENT
Underwriters may obtain a copy of the Official Statement by request to the City's Financial
Advisor prior to the bid opening. The purchaser will be provided with 50 copies of the Official
Statement.
Dated November 20, 1989
BY ORDER OF THE CIlY COUNCIL
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/s/ Donald W. Ashworth
City Manager
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Exhibit A
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NOTICE OF BOND SALE
$725.000
TAXABLE GENERAL OBLIGATION TAX
INCREMENT BONDS. SERIES 1989B
CITY OF ClIANHASSEN
CARVER AND HENNEPIN COUNTIES. MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be received until 2:00. p.m.. C.T. on Monday. Decem-
ber 4. 1989. in the offices of Springsted Incorporated, 85 East
Seventh Place, St. Paul. Minnesot., at which time the bids will be
opened and tabulated for consideration by the City Council at a
meeting at 7:30 p.m. on the same day. The bonds are offered on the
following terms. The bonds will be dated December I, 1989, will bear
interest payable semiannually on each February I and August 1, com-
mencing August I, 1990. and will mature without option of prior
payment on February 1 in the years and amounts as follows:
Year
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Year
Amount
Amount
1992
1993
$ 75,000
150,000
$200.000
300.000
1994
1995
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Bidders must specify a price of DOt less than $715,575 plus accrued
interest. A legal opinion on the bonds will be furnished by Ho~s &
Graven, Chartered, Minneapolis, Minnesota. The proceeds of the bonds
will be used to finance public redevelopment costs related to a tax
increment financing district in the City.
Bidders should be aware that the Official Statement to be distributed
for the Bonds may contain additional bidding terms and inforution
relative to the Bonds. In the event of a variance between stat...nts
in this Notice of Bond Sale and the Official Statement bidders must
comply with the terms of the latter.
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager ' ,
Dated: November 20, 1989.
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3. The City Mauger i8 authorized and directed to advertise the
BoDds for sale iD accordance with the foregoiDg Official Term. of OfferiDg
and to publish the abbreviated notice of sale attached hereto a. Exhibit A
in the MIlner required by law. The City Counc:il vill .et at 7:30 p.a. on
Monday, December 4, 1989, to consider bid. OIl the Bonds and take any other
appropriate action with respect to the Bonds.
The aotion for the adoption of the foreloiDl resolution vas
duly secouded by CouncilMllber Jolmson
, and upon vote beiDl
taken thereon the follov1D.g aembers voted iD favor of tM aotion:
Mayor Chmiel, Councilmanbers Workman, Dimler, Johnson and Boyt.
and the followinl voted ala1Dst:. None
vhereupon the resolution vas declared duly passed and adopted.
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