88-109 B
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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 special meeting of the City
Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota,
was duly held in the City Hall in the City on Monday, October 10, 1988,
commencing at 7:30 P.M.
The following members were present: Horn, Geving, Boyt, and Johnson
and the following were absent: Hamilton
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The following resolution was presented by Councilmember Geving who
moved its adoption:
RESOLUTION NO. 88-109B
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $740,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1988, SERIES 2
BE IT RESOLVED By the City Council of the City of Chanhassen, Carver
and Hennepin Counties, Minnesota, (City) as follows:
1. It is hereby determined:
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(a) That the City has duly established the Downtown Chanhassen
Redevelopment Project (Project Area) pursuant to Minnesota
Statutes, Sections 462.411, 462.716 and Sections 273.71
through 273.86 now codified and in effect as Minnesota
Statutes, Sections 469.001 through 469.047 and Minnesota
Statutes, Sections 469.174 through 469.179 (collectively,
the Act).
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(b) That the City has duly established a tax increment financing
district (TIF District) within the Project Area pursuant.to
the Act.
(c) That the City is authorized by Section 273.77 (469.178) of
the Act to issue and sell its general obligations (Bonds) to
pay all or a portion of the public redevelopment costs
(Redevelopment Costs) related to the Project Area as identi-
fied in the redevelopment plan (Plan) for the Project Area.
(d) The Housing and Redevelopment Authority of the City (Author-
ity) has identified the following Redevelopment Costs to be
financed by the Bonds:
Public Improvements: Downtown Redevelopment Project
Land Acquisition
Costs of Issuance
Subtotal
Discount
Bond Issue
$ 700,000
25,570
$ 725,570
14,430
$ 740,000
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(e) That it is necessary and expedient to the sound financial
management of the affairs of the City to issue $740,000
General Obligation Tax Increment Bonds of 1988, Series 2 to
provide financing for the Redevelopment Costs.
(f) That the Tax Increment Agreement between the Authority and
the City, dated June 15, 1981 and filed with the Auditor of
Carver County, is hereby ratified and confirmed.
(g) The issuance of the Bonds is subject to the request of the
Authority to issue and sell its general obligations to
finance a portion of the Redevelopment Costs.
2. In order to provide financing for the Redevelopment Costs, the
City shall therefore issue and sell Bonds in the amount of $725,570. 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
$14,430. Any excess of the purchase price of the Bonds over the sum of
$725,570 shall be credited to the debt service fund for the Bonds for the
purpose of paying interest first coming due on such additional Bonds. The
Bonds shall be issued and sold in accordance with the terms of the follow-
ing Official Notice of Sale:
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OFFICIAL
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NOTICE OF SALE
$740,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1988, SERIES 2
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of
Chanhassen, Minnesota, will consider sealed bids at the City Hall in the
City of Chanhassen, on Monday, November 7, 1988, at 7:30 o'clock p.m., C.T.
for the purchase of $740,000 General Obligation Tax Increment Bonds of
1988, Series 2 of the City on the following terms.
Purpose and Security
The purpose of the bonds is to provide funds for the financing of
public redevelopment costs in a redevelopment project area in the City.
The bonds will be general obligations to the City, for which its full
faith, credit and taxing powers are pledged together with tax increments
from the Project Area.
Date and Maturities
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The bonds will be issued in fully registered form, will be dated
November 1, 1988, will be in integral multiples of $5,000 each and will
mature on November 1 in the following years and amounts:
Year Amount Year Amount
1989 $ 15,000 1995 $ 50,000
1990 25,000 1996 75,000
1991 50,000 1997 75,000
1992 50,000 1998 75,000
1993 50,000 1999 75,000
1994 50,000 2000 75,000
2001 75,000
Redemption
The City may elect on November 1, 1994, or on any interest
payment date thereafter to redeem and prepay bonds of this issue in whole
or in part, in inverse order of maturities and by lot within maturities,
maturing on or after November 1, 1995, at a price of par plus accrued
interest to date of redemption.
Interest
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Interest on the bonds will be payable on November 1, 1989, and
semiannually thereafter on each May 1 and November 1. All bonds maturing
on the same date must bear interest from date of issue until paid at a
single, uniform rate. Each rate must be in an integral multiple of 1/20 or
1/8 of 1%.
Paying Agent
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The City will name the Registrar which shall be subject to
applicable SEC regulations. Principal will be payable at the principal
office of the Registrar and interest will be payable by check or draft of
the Registrar mailed to the registered holder of a bond. The City will pay
the reasonable and customary charges for the services of the Registrar.
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.
Delivery
Within 40 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, 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.
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Legal Opinion
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 that the bonds
are valid and binding general obligations of the City payable primarily
from tax increments, 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.
Type of Bid - Amount
Sealed bids 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 $14,800, payable to the City Manager, 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 $740,000 bid for principal)
will be deemed the most favorable. No oral bid and no bid of less than
$725,570 for principal plus accrued interest on all of the bonds will be
considered, and the City reserves the right to reject any and all bids and
t.o ~n~v~ any informality in any bid.
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BY ORDER OF THE CITY COUNCIL
/s/ Don Ashworth
City Manager
Dated: October 10, 1988.
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3. 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 A, to be
published in the manner required by law. The City Council shall meet at
7:30 p.m. on Monday, November 7, 1988, to consider bids on the Bonds and
take any other appropriate action.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Johnson and upon vote being taken thereon, the
following voted in favor of the motion: Horn, Geving, Boyt, and Johnson
and the following voted against: None
Whereupon said resolution was declared duly passed and adopted.
C13:05113D88.RAU
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STATE OF MINNESOTA )
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COUNTIES OF CARVER ) SSe
AND HENNEPIN )
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CITY CHANHASSEN )
I. the undersigned, being the duly qualified and acting City Manager
of the City of Chanhassen, Minnesota, do hereby certify that I have care-
fully compared the attached and foregoing extract of minutes of a special
meeting of the City Council of said City held on Monday, October 10, 1988,
with the original thereof on file in my office and the same is a full. true
and correct copy thereof, insofar as the same relates to the issuance and
sale of $740,000 General Obligation Tax Increment Bonds of 1988, Series 2.
WITNESS My hand as such City Manager and the corporate seal of the
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City this 24th day of
October
, 1988.
4Jj Q~
City Manager
City of Chanhassen, Minnesota
(SEAL)
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C13:05113D88.RAU
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EXHIBIT A
NOTICE OF BOND SALE
$740,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1988, SERIES 2
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MI~~ESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be considered at a regular meeting of the City
Council at 7:30 p.m. on Monday, November 7, 1988, at the City Hall in
Chanhassen, Minnesota. The Bonds are offered on the following terms.
The Bonds will be dated November 1, 1988, will bear interest payable
semiannually on each May 1 and November 1, commencing November 1 ,
1989, and will mature on August 1 in the years and amounts as follows:
Year Amount Year Amount
1989 $ 15,000 1995 $ 50,000
1990 25,000 1996 75,000
1991 50,000 1997 75,000
1992 50,000 1998 75,000
1993 50,000 1999 75,000
e 1994 50,000 2000 75,000
2001 75,000
The City may elect on November 1, 1994 or on any interest payment date
thereafter to redeem and prepay bonds of this issue in whole or in
part, in inverse order of maturities and by lot within maturities,
maturing on or after November 1, 1995 at a price of par plus accrued
interest to date of redemption.
Bidders must specify a price of not less than $ 725,570 plus accrued
interest. A legal opinion on the Bonds will be furnished by LeFevere,
Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneap-
olis, 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 information
relative to the bonds. In the event of a variance between statements
in this Notice of Bond Sale and the Official Statement the provisions
of the latter shall be those with which to comply.
BY ORDER OF THE CITY COUNCIL
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City Manager
Dated: October 10, 1988.
C13:05113D88.RAU