85-029 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 meeting
of the City Council of the City of Elk River, Sherburne County,
Minnesota, was held at the City Hall in said City on Monday,
July 15, 1985, commencing at 7:30 p.m.
The following members were present: E. Gunkel, G. Schuldt,
W. Williams, A. Engstrom & Mayor R. Hinkle
and the following were absent:
None
The following resolution was presented by Councilmember
Gunkel who moved its adoption:
RESOLUTION NO. 85-.29-
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $850,000 GENERAL OBLIGATION
TAX INCREMENT BONDS, SERIES 1985A
BE IT RESOLVED by the City council of the City of Elk
River, Sherburne County, Minnesota (City) as follows:
Section 1. "Findinqs: Costs.
1.01 The City has duly established Development District
No.1 (District), Tax Increment Financing District No.1 (TIF
District), and adopted a Tax Increment Financing Plan (TIF
Plan) for the TIF District all pursuant to Minnesota Statutes,
Chapters 472A and 475, and Sections 273.71 to 273.78
(collectively, the Act).
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 of the various elements of the Project are
presently estimated to be as follows:
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One million gallon hydropillar watertower
Water mains
Property acquisition
Engineering expense
Legal and administrative expense
Costs of issuance
Bond discount
Capitalized interest
Total Costs
Less: Investment earnings
Net Bond Issue
$537,245
113,800
10,000
50,000
15,000
25,000
16,600
102,355
$870,000
20,000
$850,000
Capitalized Interest covers the period from September 1, 1985
through February 1, 1987 (seventeen months at 8.5%).
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, Series 1985A (the Bonds) pursuant to the Act
to provide financing for the Costs. .
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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 $850,000.
The Bonds shall be issued and sold in accordance with the terms
of 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 authorized 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 by law. The City
Council shall meet on Monday August 12, 1985, at 7:30 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 resolution was
duly seconded by Councilmember Williams and upon vote
being taken thereon, the following vote in favor of the motion:
All members
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and the following was voted against: None
whereupon said resolution was declared duly passed and adopted.
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EXHIBIT A
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OFFICIAL TERMS OF OFFERING
$850,000
CITY OF ELK RIVER, MINNESOTA
GEf'.ERAL OBLIGATION TAX INCREMENT BONDS, SERIES I985A
Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday,
August 12, 1985, at 1:00 P.M., Central Time, at the office of SPRINGSTED Incorporated, 800
Osborn Building, Saint Paul, Minnesota. Consideration for award of the Bonds will be by the City
Council at 7:30 P.M.f Central Time, of the same day.
DET AILS OF THE BONDS
The Bonds will be dated September I, 1985 and will bear interest payable on February I and
August I of each year, commencing August I, 1986. Interest will be computed upon the basis of
a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The
Bonds will be issued in integral multiples of $5,000, 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
the last business day prior to the interest payment date to the registered holder thereof at his
address as it appears on the books of the Registrar as of the 15th of the calendar month next
preceding the interest payment.
The Bonds will mature February I in the amounts and years as follows:
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$30,000
$55,000
$60,000
1988
1989
1990
$65,000
$70,000
$75,000
1991
1992
1993
$ 80,000
$ 85,000
$110,000
1994
1995
1996
$110,000
$110,000
1997
1998
The City may elect on February I, 1994, and on any interest payment date thereafter, to prepay
Bonds due on or after February I, 1995. Redemption may be in whole or in part of the Bonds
subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the
latest maturity date will be prepaid first. If only part of the Bonds having a common maturity
date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the
Registrar. All prepayments shall be at a price of par and accrued interest.
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. I. The proceeds will be
used to defray the expense of acquiring and constructing a new water tower.
TYPE OF BID
A sealed bid for not less than $833,400 and accrued interest on the total principal amount of the
Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior
to the time set for bid opening, a certified or cashier's check in the amount of $8,500, payable to
the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated,
the City's Financial Advisor. No bid will be considered for which said check has not been filed.
The check of the Purchaser will be retained by the City as liquidated damages in the event the
Purchaser fails to comply with the accepted bid. The City will deposit the check of the
. Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after
the time set for opening bids, unless the meeting of the City scheduled for consideration of the
bids is adjourned, recessed, or continued to another date without award of the Bonds having been
made. Rates offered by Bidders shall be in integral multiples of 5/ I 00 or 1/8 of I %. No rate for
any maturity shall be more than I % lower than any prior rate. No rate nor the net effective rate
. for the entire Issue of the Bonds shall exceed the maximum rate permitted by law. Bonds of the
same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
bid may be conditioned upon award of any other offering of obligations by the City.
AWARD
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, (ij) 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
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
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 &
Lindgren, Ltd. of Minneapolis, 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 I :00 P.M., Central Time of the day of settlement. 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 reason of the Purchaser's non-compliance with said terms for payment.
At settlement the Purchaser will be furnished with '0 certificate, signed by appropriate officers
of the City, to the effect that the Official Statement did not as of the date of the Official
Statement, and does not as of the date of settlement, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.
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 15 copies of the Official
. Statement.
Dated July 15, 1985 BY THE ORDER OF THE CITY COUNCIL
/s/ Thomas R. Bublitz
Clerk
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EXHIBIT B
NOTICE OF SALE
$850,000 General Obligation Tax
Increment Bonds, Series 1985A
City of Elk River
Sherburne County, Minnesota
Sealed bids for these bonds will be opened by the City
Administrator, or his designee, on Monday, August 12, 1985, at
1:00 p.m., for consideration and award by the City Council at
7:30 p.m. at the City Hall in Elk River, Minnesota. Dated
September 1, 1985, the bonds will mature on February 1 in the
years and amounts as follows:
Year Amount
1988 - $30,000
1989 - $55,000
1990 - $60,000
1991 - $65,000
1992 - $70,000
1993 - $75,000
Year Amount
1994 - $80,000
1995 - $85,000
1996 - $110,000
1997 - $110,000
1998 - $110,000
Bonds maturing on or after February 1, 1995, are subject to
prior redemption on February 1, 1994, and any interest paYment
date thereafter at par plus accrued interest. Interest will be
payable on August 1, 1986, and semiannually thereafter. Each
rate must be in an integral multiple of 1/8 of 1% and no rate
may exceed the maximum rate of interest permitted by law on the
day of sale. Minimum price, $833,400. An unqualified legal
opinion will be furnished by Larkin, Hoffman, Daly & Lindgren,
Ltd., 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
Thomas R. Bublitz
City Clerk
Dated: July 15, 1985
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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, July 15, 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 $850,000 General Obligation
Tax Increment Bonds, Series 1985A of the City.
WITNESS my hand as such City Clerk and the corporate seal
of the City this \S~day of ~ ,1985.
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City Clerk /
City of Elk River, Minnesota
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