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Home My Public Portal About1985-020Extract of Minutes of Meeting of the City Council of the City of Medina, Hennepin County, Minnesota Pursuant to due call and notice thereof a special meeting of the City Council of the City of Medina, Hennepin County, Minnesota, was held at the City Hall in said City on Wednesday, March 13, 1985, commencing at 7:30 o'clock P.M. The following members were present: Reiser, Anderson, Heideman, Mitchell, Scherer and the following were absent: None * * * The following resolution was presented by Council.member /L/ ..'/ild/7 who moved its adoption: RESOLUTION NO. fi--qe, RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,345,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1985 BE IT RESOLVED By the City Council of the City of Medina, Hennepin County, Minnesota (City) as follows: Section 1. Findings: Costs. 1.01. The City has duly established Development District No. 1 (District), Economic Tax Increment Financing Districts Nos. 1-1 and 1-2 (TIF Districts), and adopted a Tax Increment Financing Plan (TIF Plan) for the TIF Districts all pursuant to Minnesota Statutes, Chapters 472A and 475, and Sections 273.71 to 273.78 (collectively, Act) . d 1.02. The purpose of the TIF Plan is to provide financing for the public development costs (Costs) of various public improvements (Project) to be constructed in the District. 1.03. The Costs for the various elements of the Project as identified in the TIF Plan are presently estimated to be as follows: Tax Increment Financing District No. 1 (Phase I) Development District No. I Estimated Project Costs for Construction of 16 Inch Water Trunk Line and Water Tower Phase 1 - 16 Inch Pipe Phase 2 - Water Tower Total Contract Items Design and Inspection 13.90% Legal, Fiscal & Administrative 2.30% Sub Total $ 534,829 420,000 954,829 132,500 30,935 $1,118,264 Less Investment Earnings (.40 years @ 9.00%) (47,7P8) Net Project Cost $1,070,476 Interest During Construction (2.25% years @ Bond Interest Rate of 8.20%) 248,152 Principal Amount Needed 1,318,628 Discount Allowance (2.00%) 26,372 Bond Issue $1,3L5,000 1.04. It is necessary and desirable to the sound financial management of the city and its orderly economic development that the City issue and sell its General Obligation Tax Increment Bonds of 1985 pursuant to the Act to provide financing for the Costs. Section 2. Sale of Bonds. 2.01. In order to provide financing for the Project, the City shall therefore issue and sell Bonds in the amount of $1,318,628. 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 $26,372. Any excess of the purchase price of the Bonds over the sum of $1,318,628 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 following Official. Notice of Sale: OFFICIAL NOTICE OF SALE $1,345,000 General Obligation Tax Increment Bonds of 1985 City of Medina Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the purchase of the above bonds will be received until 7:30 p.m. C.T. on Tuesday, April 9, 1985 at the office of the City Clerk in City Hall in Medina, Minnesota, at which time the bids will be opened and considered for award by the City Council. The bonds are offered on the following terms: Purpose and Security The purpose of the bonds is to provide funds to finance public development costs of various public improvements in Development District No. 1 in the City. The bonds will he general obligations of the City for which its full faith, credit and taxing powers will be pledged together with tax increments from an economic tax increment financing district in the City. Date and Maturities The bonds will be issued in fully registered form, will be dated April 1, 1985, wi1.l be in denominations of integral multiples of $5,000 each and will mature on April 1 in the following years and amounts: Year Amount Year Amount 1988 $120,000 1992 $175,000 1989 125,000 1993 200,000 1990 125,000 1994 225,000 1991 150,000 1995 225,000 Redemption Feature The bonds of this issue will not be subject to prior redemption. Interest Interest on the bonds will be payable on October 1, 1985, and semiannually thereafter on each April 1 and October 1. A11 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 1/20 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 The City will name the Registrar. 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. CUSTP Numbers The City will assume no obligation for the assignment or printing of CUSTP 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 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 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, 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 he accompanied by a cashier's or certified check or bank draft in the amount of $26,900, payable to the City Clerk, 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 $1,345,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $1,318,628 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 to waive any informality in any bid. Further information may be obtained from and bids may be delivered to: Ehlers and Associates, Inc., First National -Soo Line Concourse, 507 Marquette Avenue, Minneapolis, Minnesota, 55402, telephone: (612) 339-8291, financial consultants to the City. If bids are delivered to Ehlers and Associates, Inc., the bid security will he retained in the offices of Ehlers and Associates, Inc., with the same effect as if delivered to the City Clerk. BY ORDER OF THE CITY COUNCIL Is' �(t /t City Clerk Dated: March 13, 1985 2.02. The City Clerk 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 requried by law. The City Council shall meet on Tuesday, April 9, 1985, at 7:30 o'clock p.m., for the purpose of considering sealed bids on the Bonds and taking any other appropriate action. Dated: March 13, 1985 Attest: ✓u r/� 1«- «e / l Donna Roehl, Clerk -Treasurer The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor of the motion: ./7// cI E Y •,[ I 1 and the following voted against: J , / A /;- 'e whereupon said resolution was declared duly passed and adopted. Exhibit A NOTICE OF SALE $1,345,000 General Obligation Tax Increment Bonds of 1985 City of Medina Hennepin County, Minnesota Sealed bids for these bonds will be opened by the City Clerk on Tuesday, April 9, 1985, at 7:30 o'clock p.m., C.T., for consideration and award by the City Council at the City Hall in Medina, Minnesota. Dated April 1, 1985, the bores will mature without option of prior redemption on April 1 in the years and amounts as follows: Year Amount Year Amount 1988 $120,000 1992 $1.75,000 1989 125,000 1993 200,000 1990 125,000 1994 225,000 1991 150,000 1995 225,000 Interest will be payable on October 1, 1985, and semiannually thereafter. Each rate must be in an integral_ multiple of 1/20 of 1% and no rate may exceed the maximum rate of interest permitted by law on the day of sale. Minimum price, $1,318,628. An unqualified legal opinion will be furnished by LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, Minneapolis, Minnesota. The purpose of the bonds is to finance public development costs in an economic tax increment financing district in the City. BY ORDER. OF THE CITY COUNCIL City Clerk Dated: March 13, 1985 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF MEDINA SS. I, the undersigned, being the duly qualified and acting City Clerk of the City of Medina, Minnesota do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a special meeting of the City Council of said City held on Wednesday, March 13, 1985, 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 issuance and sale of $1,345,000 General Obligation Tax Increment Bonds of 1985, of the City. WITNESS My hand as such City Clerk and the corporate seal of the City this / day of A, ,7 7 , 1985. City Clerk City of Medina, Minnesota (SEAL)