89-059 RES
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EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE CITY
OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA
Pursuant to due call and notice thereof, a regular meetinq
of the City Council of the City of Elk River, Sherburne County,
Minnesota, was held at the City Hall in said City on Monday,
September 25, 1989, commencinq at 7:00 p.m.
The followinq members were present: H. DObel, D. Kropuenske,
G. Schuldt, R. Homgren & Mayor J. Tralle
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and the followinq were absent:
None
The followinq resolution was presented by Councilmember
Dobel who moved its adoption:
RESOLUTION NO. 89-59
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $410,000 GENERAL OBLIGATION
TAXABLE TAX INCREMENT BONDS, SERIES 1989B
BE IT RESOLVED by the City Council of the City of Elk
River, Sherburne County, Minnesota (City) as follows:
Section 1. Findings: Costs.
1.01 The City has duly established Development District
No. 1 (District) and Tax Increment Financinq District No. 6
(TIF District), and adopted a Tax Increment Financinq Plan (TIF
Plan) for the TIF District all pursuant to Minnesota Statutes,
Chapters 469 and 475 (collectively, the Act).
1.02 The purpose of the TIF Plan is to provide financinq
for the public development costs (Costs) of various public
improvements (Project) to be constructed in the District.
1.03 The Costs of the Project are presently estimated to
be as follows:
Property Acquisition
Site Clearance and Preparation
Administrative Costs
Capitalized Interest and
Issuance Costs
$ 270,000
40,000
31,000
69,000
TOTAL
$410,000
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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 Taxable Tax
Increment Bonds, Series 1989B (the Bonds) 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 issue and sell the Bonds in the amount of $4101.000.
The Bonds shall be issued and sold in accordance with the terms
stated in the Official Terms of Offering, a copy of which,
marked Exhibit A, is attached hereto and made a part hereof.
2.02 The City Clerk is a~thoirzed and directed to
advertise the Bonds for sale in accordance with such Official
Terms of Offering and to cause an abbreviated notice of sale in
the form of Exhibit B, attached hereto and made a part hereof,
to be published in the manner required bylaw. The City
Council shall meet on Monday, October 23, 1989, at 7:00 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
duly seconded by Councilmember Kropuenske
being taken thereon, the following vote in favor
All members
resolution was
and upon vote
of the motion:
and the following was voted against:
None
whereupon said resolution was declared duly passed and adopted.
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EXHIBIT A
OFFICIAL TERMS OF OFFERING
$410,000
CITY OF ELK RIVER, MINNESOTA
GENERAL OBUGATION TAXABLE TAX INCREMENT BONDS, SERIES 1989B
Sealed bids for the Bonds will be received by the City or its designee on Monday, October
23, 1989, until 11:00 A.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 7:00 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated November 1, 1989, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1990. Interest will
be computed on the basis of a 36O-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 integrat 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 Bonds 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:
1992 $15,000
1993 $15,000
1994 $15,000
1995 $15,000
1996 $15,000
1997 $20,000
1998 $20,000
1999 $25,000
2000 $25,000
2001 $25,000
2002 $30,000
2003 $30,000
2004 $35,000
2005 $40,000
2006 $40,000
2007 $45,000
OPTIONAL REDEMPTION
The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or
after February 1, 2000. Redemption may be in whole or in part and if in part, in inverse order of
maturity and within a maturity by lot as selected by the registrar. All prepayments shall be at a
price of par and accrued interest.
SECURITY AND PURPOSE
The Bonds will be generat 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 to be derived from the City's Tax Increment Financing District NO.6. The
proceeds will be used to finance the costs of land acquisition and site preparation for
improvements within Development District NO.1.
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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
Bids shall be for not less than $402,000 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 $4,100,
payable to the order of the City. No bid will be considered for which said check has not been
received. The City wiD 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
award of the bids 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
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The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be
determined by the deduction 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.
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
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 Bonds 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.
SElTLEMENT
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Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Larkin, Hoffman, Daly &
Undgren, Ud.. of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary dosing 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
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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 25 copies of the Official
Statement
Dated September 25, 1989
BY ORDER OF THE CITY COUNCIL
Is/ Patrick Klaers
Administrator
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EXHIBIT B
NOTICE OF SALE
$410,000 General Obligation Taxable Tax
Increment Bonds, Series 1989B
City of Elk River
Sherburne County, Minnesota
Sealed bids for these bonds will be opened by the City
Administrator, or his designee, on Monday, October 23, 1989, at
11:00 a.m., at the offices of Springsted Incorporated, 85 East
Seventh Place, Suite 100, Saipt Paul, Minnesota, for .
consideration and award by the City Council at 7:00 p.m. at the
the Elk River City Library in Elk River, Minnesota. Thebonds
will be tax increment bonds and shall be general obligations
supported by the full faith and credit of the City. Dated
November 1, 1989, the bonds will mature on February 1 in the
years and amounts as follows:
~ Amount ~ Amount
1992 $15,000 2000 $25,000
1993 $15,000 2001 $25,000
1994 $15,000 2002 $30,000
. 1995 $15,000 2003 $30,000
1996 $15,000 2004 $35,000
1997 $20,000 2005 $40,000
1998 $20,000 2006 $40,000
1999 $25,000 2007 $45,000
Bonds maturing on or after February 1, 2000, are subject to
prior redemption on February 1, 1999, and on any day thereafter
at par plus accrued interest. Interest will be payable on
February 1, 1990, and semiannually thereafter. Minimum price
$402,000, plus accrued interest. Bids shall specify interest
rates for each maturity in accord with the Official Terms of
Offering. An.approving legal opinion will be furnished by
Larkin, Hoffman, Daly & Lindgren, Ltd., Minneapolis, Minnesota.
The purpose of the bonds is to finance private development costs
in a redevelopment tax increment financing district in the
City.
The Official Terms of Offering to be published in the Official
Statement for the offering may contain additional bidding terms
and information relative to the issue. In the event of the
variance between the statements of this notice and the Official
Terms of Offering, the provisions of the latter shall govern.
BY ORDER OF THE CITY COUNCIL
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Dated: September 25, 1989
/s/ Patrick D. Klaers
City Administrator
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STATE OF MINNESOTA )
COUNTY OF SHERBURNE) ss
CITY OF ELK RIVER )
I, the undersigned, being the duly qualified and acting
City Clerk of the City of Elk River, 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 Monday, September 25, 1989, 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 $410,000 General Obliqation
Taxable Tax Increment Bonds, Series 1989B of the City.
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WITNESS my hand as such City-Cierk and the corporate seal
of the City thisc:::?,S-g.aay of September / 989. 1
(,.-~O:
City Clerk
City of Elk River,
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