88-109 C
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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 held at the City Hall in the City on Monday, October 10, 1988, commenc-
ing at 7:30 P.M.
The following members of the Council were present: Geving, Horn, Boyt,
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. 8S-l09C
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $1,015,000 GENERAL OBLIGATION
TAX INCREMENT BONDS OF 1988, SERIES 3
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 that:
(a) the City has duly established Development District No.
2 (Project Area) pursuant to Minnesota Statutes,
Sections 469.124 through 469.134 and Sections 469.17~
through 469.179 (collectively, the Act).
(b) th~ City has duly established a tax increment financing
district ern' Dis'.:;:dct) within the Project Area pursu-
ant to the Act.
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(c) 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 development costs (Costs) related
to the Proj ect Area as identified in the development
program and Tax Increment Financing Plan (Plan) for the
Proj ect Area.
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(d) the City has identified the following Costs to be
financed by the Bonds:
Public Improvements:
Redevelopment Cost
Sewer, water, streets and
drainage improvements
Engineering, legal, appraisal
and administration
Capitalized Interest
Costs of Issuance
Subtotal
Discount
Bond Issue
$ 697,845
209,354
62,155
25,853
$ 995,207
19,793
$1,015,000
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(e) it is necessary and expedient to the sound financial
management of .the affairs of the City to issue
$1,015,000 General Obligation Tax Increment Bonds of
1988, Series 3 (Bonds) to provide financing for the
Costs.
2. In order to provide financing for the Costs, the City will
therefore issue and sell Bonds in the amount of $995,207. In order to
provide in part the additional interest required to market the Bonds
at this time, additional Bonds will be issued in the amount of
$19,793. The excess of the purchase price of the Bonds over the sum
of $995,207 will be credited to the debt service fund for the Bonds
for the purpose of paying interest first coming due on the additional
Bonds. The Bonds will be issued, sold and delivered in accordance
with the terms of the following Official Notice of Sale:
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OFFICIAL NOTICE OF SALE
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$1,015,000 General Obligation Tax
Increment Bonds of 1988, Series 3
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 p.m.,
C.T., for the purchase of the above bonds. The bonds are offered on
the following terms:
Purpose and Security
The purpose of the bonds is to provide funds for the finan-
cing of public development costs in a development district in the
City. The bonds will be general obligations of the City, for which
its full faith, credit and taxing powers are pledged together with tax
increments from the district.
Date and Maturities
The bonds will be issued in fully registered form, will be
dated November 1, 1988, will be in denominations of integral multiples
of $5,000 each and will mature on November 1, in the years and amounts
as follows:
Year Amount Year Amount
e 1990 $ 15,000 1994 $150,000
1991 50,000 1995 200,000
1992 75,000 1996 200,000
1993 100,000 1997 225,000
Redemption
The City may elect on November 1, 1994 or on any interest payment
date thereafter to redeem and prepay bonds of this issue maturing on
or after November 1, 1995 at a price of par plus accrued interest to
date of redemption. Prepayment may be in whole or in part and will be
in inverse order of maturities and by lot within maturities.
Interest
Interest on the bonds will be payable on November 1, 1989,
and semiannually thereafter on each May 1 and November 1. 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%.
Registrar
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The City will name the Registrar which shall be subject to
applicable SEC regulations. Principal will be payable at the prin-
cipal 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
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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 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.
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 Associa-
tion, 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
required by law 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 the meeting. A bid must be
unconditional and must be accompanied by a cashier's or certified
check or bank draft in the amount of $20,300, 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 author-
izing the lowest net interest cost (total interest from date of bonds
to stated maturities, less any cash premium or plus any amount less
than $1,015,000 bid for principal) will be deemed the most favorable.
No oral bid and no bid of less than $995,207 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 an infor-
mality in a bid.
BY ORDER OF THE CITY COUNCIL
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/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 will meet at 7:30 p.m. on Monday, November 7, 1988, to consid-
er bids on the Bonds and take any other appropriate action with
respect to the Bonds.
The motion for the adoption of the foregoing resolution was
duly seconded by Councilmember Johnson, and upon vote being taken
thereon the following members voted in favor of the motion: Geving,
Horn, Boyt, and Johnson
and the following voted against: None
whereupon the resolution was declared duly passed and adopted.
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Exhibit A
NOTICE OF BOND SALE
$1,015,000
GENERAL OBLIGATION TAX INCREMENT
BONDS OF 1988, SERIES 3
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the
above bonds will be considered at a 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 semian-
nually on each May 1 and November 1, commencing November 1, 1989, and
will mature on November 1 in the years and amounts as follows:
Year
Amount
Year
Amount
1990
1991
1992
1993
$ 15,000
50,000
75,000
100,000
1994
1995
1996
1997
$150,000
200,000
200,000
225,000
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 $995,207 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 development 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 bidders must
comply with the terms of the latter.
BY ORDER OF THE CITY COUNCIL
/s/ Don Ashworth
City Manager
Dated: October 10, 1988.
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e STATE OF MINNESOTA )
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COUNTIES OF CARVER )
AND HENNEPIN )
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CITY OF CHANHASSEN )
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I, the undersigned, being the duly qualified and acting City
Manager of the City of Chanhassen, Minnesota, hereby certify that I
have carefully compared the attached and foregoing extract of minutes
of a special meeting of the City Council of the City held on Monday,
October 10, 1988, 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 $1,015,000 General Obliga-
tion Tax Increment Bonds of 1988, Series 3 of the City.
WITNESS My hand as City Manager and the corporate seal of
the City this 24th day of October
, 1988.
fl ,Qa~/\~
City Manager
City of Chanhassen, Minnesota
(SEAL)
C13:05111088.RAU