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9-20-1977 • EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF HOPKINS, HENNEPIN COUNTY, MINNESOTA . Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Hopkins , Hennepin County, Minnesota, was held at the City Hall in said City on Tuesday, September 20, 1977 , commencing at 7 :30 o'clock p.m. The following members were present: Mayor Miller, Councilmen McDonald, Milbert, Slaton and Lohmann and the following were absent: none * * * * * * * * * Councilmember Lohmann introduced the following • written resolution and moved its adoption, the reading of which had been dispensed with my unanimous consent: Resolution No. 77-2615 A RESOLUTION DETERMINING THE NEED FOR FINANCING; PROVIDING FOR THE ISSUANCE AND SALE OF $400 , 000 GENERAL OBLIGATION REDEVELOPMENT BONDS OF 1977 : AUTHORIZING THE EXECUTION OF A TAX INCREMENT AGREEMENT WITH THE HOUSING AND REDEVELOPMENT AUTHORITY OF HOPKINS WHEREAS , pursuant to the provisions of Minnesota Statutes , Section 462 . 521, the Housing and Redevelopment Authority of the City of Hopkins (the "Authority") has applied to the City Council of the City of Hopkins (the "City" ) for approval of a redevelopment project, described as the Central Business District Redevelopment Area Project, (the "Project" ) ; and 41/ WHEREAS, the City Council held a public hearing after public notice and has made findings as required by Section 462 . 521, Subdivision 2 and has approved said project by Resolution adopted December 7 , 1976 ; and WHEREAS, by resolution of September 12 , 1977 , the Authority has requested the City to issue and sell its General Obligation Redevelopment Bonds to finance public redevelopment costs of the CBD north project (the "Project" ) within the Project Area, and submitted an executed tax increment agreement (the "Agreement' ) to the council for approval; and 410 WHEREAS, funds are needed at this time to provide funds for site improvements within the project area and provide monies for capitalized interest and pay administrative costs , all of which costs (the "Public Redevelopment Costs") are presently esimated as follows: CBD-North Project Costs Land Acquisition $ 311,000 Relocation 26,000 D rroLition 8,000 Building Pbve 88,000 legal & Admin. 13,000 Proposed Bond Discount 5,000 Utility Disconnects 2,000 Misc. Public Construction (walks,etc.) 5,000 Contingency 10,000 Capitalized Interest 50,000 $ 518,000 less Project Income • Sale of site for retail food store $ 71,000 Sale of parking lot to City 47,000 $ 118,000 NET PROTECT COST $ 400,000 • and, WHEREAS, the City is authorized by Minnesota Statutes , Section 462 . 585 , Subdivision 4 , to issue General Obligation Redevelopment Bonds if the Authority pledges tax increments received from a redevelopment project for the payment of principal of and interest on bonds issued in aid of the Project pursuant to Minnesota Statutes, Sections 462 . 551 and 462 . 581; and WHEREAS, the pledge of "tax increments" must be made by written agreement executed by the Authority and the City and filed with the County Finance Director, and when such an agreement is made and filed, the City may issue general obligation bonds as provided in Minnesota Statutes, Chapter 475, subject only to the conditions required for bonds issued to finance improvement costs reimbursable from special assessments; and WHEREAS, the Authority has adopted a resolution determining the need for the financing, has approved the Agreement attached hereto and marked "Exhibit A" , and has requested the City Council to issue General Obligation Redevelopment Bonds under the authority contained in Minnesota Statutes , Sections 462 . 581 and 462 . 585 and Chapter 475 for the aforementioned purposes: NOW, THEREFORE, BE IT RESOLVED By the City Council of the City of Hopkins, Minnesota, as follows : 1 . It is hereby determined that it is necessary to sell its General Obligation Redevelopment Bonds to provide funds for the • purpose of financing the Public Redevelopment Costs of the Project and that the sum of $395, 000 is necessary to defray the Public Redevelopment Costs. 2 . The form of Agreement attached hereto and marked "Exhibit A" is approved, and the Mayor, City Manager and City Clerk are hereby authorized and directed to execute said agreement, and the City Clerk is directed to file an executed copy of the agreement with the Finance Director of Hennepin County and obtain his certificate of filing . 3. In order to provide financing for such costs , the City shall therefore issue and sell its General Obligation Redevelopment Bonds of 1977 , in the amount of $395 , 000 . In order to provide in part the additional interest required to market such bonds at this time, additional bonds shall be issued in the amount of $5 , 000 . Any excess of the purchase price over the sum of $395, 000 shall be credited to the debt service fund for the purpose of paying interest first coming due on said bonds. 4 . The $400 , 000 General Obligation Redevelopment Bonds of 1977 , • (the "Bonds" ) shall be issued in accordance with the following official notice of sale: • ( Exhibit A ) OFFICIAL NOTICE OF SALE $400, 000 General Obligation Redevelopment Bonds of 1977 City of Hopkins Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that the City Council of the City of Hopkins, Minnesota, will meet at the City Hall in the City of Hopkins, 1010 South First Street, Hopkins, Minnesota, on Tuesday, November 1, 1977 , at 7 : 30 o 'clock p.m. , C.T. to receive, open and consider bids for the' purchase of $400, 000 negotiable coupon, general obligation bonds of the City on the following terms : Purpose and Security The proceeds of the Redevelopment Bonds will be used to finance the public redevelopment costs associated with a redevelop- ment project undertaken by the Housing and Redevelopment Authority of the City and are issued pursuant to Minnesota Statutes, Section 462 . 585, Subdivision 4 , and Chapter 475 . The Redevelopment Bonds are payable primarily from tax increments to be derived from • increases in the taxable valuation of property within a Redevelopment Project Area in the City, but are general obligations of the City for which the full faith, credit and taxing powers of the City will be pledged. Date and Maturities The bonds will be dated November 1 , 1977 , will be in the denomination of $5 , 000 each and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1980 $30, 000 1985 $40 , 000 1981 30, 000 1986 45 , 000 1982 35 , 000 1987 45 , 000 1983 35, 000 1988 50 , 000 1984 40, 000 1989 50 , 000 Redemption Feature • All bonds of this issue maturing after February 1 , 1987 are subject to prior redemption at the option of the City on said date and any interest payment date thereafter in inverse order of serial numbers at a price of par plus accrued interest. Interest Interest on the bonds will be payable August 1 , 1978 , and semiannually thereafter on each February 1 and August 1 . All 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 . Not more than eight rates may be specified for the issue. Each rate must be in 111/ an integral multiple of 5/100 of 1% , and no rate of interest nor the net effective average rate of the issue may exceed 7% per annum. No supplemental or "B" coupons will be permitted. Paying Agent Principal and interest will be made payable at a suitable bank recommended by the purchaser and approved by the Council, and the City will pay customary charges for this service provided that such recommendation is received within 48 hours after the sale and the Council will select the paying agent if the recommendation is not approved. 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 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, or within five days after deposit with the delivery agent, 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 Messrs . LeFevere, Lefler , Pearson, O ' Brien & Drawz of Minneapolis, 410 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 110 must be unconditional and must be accompanied by a cashier' s or certified check or bank draft in the amount of $8 , 000, payable to the City Finance Director, to be retained by the City as liquidated damages if the bid is accepted and 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 $400, 000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $395 , 000 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. BY ORDER OF THE CITY COUNCIL /s/ H.E. Richardson City Clerk • Dated: September 20, 1977 • • (Exhibit B) NOTICE OF SALE $400, 000 General Obligation Redevelopment Bonds of 1977 City of Hopkins Hennepin County, Minnesota These bonds will be offered on Tuesday, November 1, 1977 , at 7 : 30 o ' clock p.m. , C .T. , at the City Hall in Hopkins, 1010 South First Street, Hopkins , Minnesota. Dated November 1 , 1977 , the bonds will mature on February 1 in the years and amounts as follows : Year Amount Year Amount 1980 $30 , 000 1985 $40, 000 1981 30, 000 1986 45, 000 1982 35 , 000 1987 45 , 000 1983 35 , 000 1988 50, 000 1984 40 , 000 1989 50 , 000 All bonds maturing after February 1, 1987 subject to redemption on said date and any interest payment date thereafter at par plus accrued interest. Interest will be payable on August 1 , 1978 , and semiannually thereafter. Each rate must be in an integral multiple • of 5/100 of 1% and no rate may exceed 7% per annum. Minimum price, $395 , 000. An unqualified legal opinion will be furnished by Messrs . LeFevere, Lefler, Pearson, O'Brien & Drawz of Minneapolis , Minnesota. The purpose of the bonds is to finance public redevelopment costs of a redevelopment project in the City. BY ORDER OF THE CITY COUNCIL A /s/ H.E. Richardson City Clerk Dated: September 20, 1977 Further information : T.G. Evensen & Associates , Inc. , 1910 First • National Bank Building, Minneapolis, Minnesota 55402 Telephone: (612) 338-3535 3 . The City Clerk is authorized and directed to advertise the Bonds for sale in accordance with the foregoing notice of sale and to cause the abbreviated notice of sale attached hereto as Exhibit "B" to be published in the manner required by law. The City Council shall meet on Tuesday, November 1, 1977 , at 7 : 30 o ' clock p.m. 11/ for the purpose of considering sealed bids on such bonds and taking any other appropriate action. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Milbert and upon vote being taken thereon, the following voted in favor of the motion: councilmen McDonald, Milbert, Slaton and Lohman, also Mayor Miller. and the following voted against: None whereupon said resolution was declared duly passed and adopted. • • STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS . 411 CITY OF HOPKINS I, the undersigned, being the duly qualified and acting City Clerk of the City of Hopkins , Minnesota , do hereby certify that I have carefully compared the attached and foregoing extract of a regular meeting of the City Council of said City held on Tuesday, September 20 , 1977 , 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 $400, 000 General Obligation Redevelopment Bonds of 1977, of the City. • WITNESS My hand as such Clerk and the corporate seal of the City this 29th day of September. , 1977 . 4 City Clerk City of Hopkins, Minnesota (SEAL) w • EXHIBIT "A" TAX INCREMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 1977 , by and between the City of Hopkins, Minnesota, a municipal corporation organized and existing under and by virtue of the Laws of the State of Minnesota (the "City") and the Housing and Redevelopment Authority of Hopkins , Minnesota, a governmental agency formed and existing under the Laws of the United States of America and the State of Minnesota, (the "Authority") . WITNESSETH: WHEREAS, the Authority has approved a certain redevelopment 0 project described in the attached exhibit entitled "the Central Business District Project Area (the "Project" ) and has , by appropriate action, applied to the City Council for approval of the Project and WHEREAS, the City has by resolution approved the Project and WHEREAS, Minnesota Statutes , Section 462 . 585 authorizes tax increment agreements between a Housing and Redevelopment Authority and the Municipality within which such redevelopment projects are situated: NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, it is hereby agreed by and between the parties hereto as follows; 1 . The Authority hereby expressly pledges that any ' and all tax increment payments made to the Authority by the Hennepin County Finance Director from the Project described in the attached Exhibit, and all revenues from land within the Project Area while owned by the Authority, shall be pledged and assigned to the City, for the purpose of paying principal of, interest on and redemption premium, if any, of any and all bonds of the City which may hereafter be issued by the City for the financing of public redevelopment costs in the Project described in said Exhibit. 2 . The City expressly agrees that it will from time to time and at the request of the Authority issue its General Obligation Redevelopment Bonds in separate series of Bonds to finance the 110 public redevelopment costs of the Project. 3. The City hereby acknowledges the request of the Authority by its Resolution of September 12 , 1977, to authorize and issue General Obligation Redevelopment Bonds of 1977 , in the aggregate principal amount of not to exceed $400, 000, and agrees that it will authorize and issue such Bonds . 4 . All series of Bonds issued pursuant to this Agreement shall be on a parity one with the other, and the tax increments and other revenues pledged hereby shall be used solely for the purpose of payment of principal and interest on all series of Bonds . 5. The parties hereto do hereby mutually agree that it is the express intent purpose of this agreement to utilize the provisions of Minnesota Statutes, Section 462 . 585 , commonly referred to as the authorization for tax increment financing, for the Project described in the attached Exhibit, and that all tax increments received with respect to the Project shall be segregated by the Authority in a special account on its official books until the public redevelopment costs of the Project, including interest on all money borrowed therefor, has been fully paid, and the City has been fully reimbursed from the tax increments or revenues from lands within the Project Area for all principal and interest on general obligation bonds which the City has issued in aid of the Project or has which it has paid from taxes levied on other property within the City ' s corporate limits . IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first above written. • CITY OF HOPKINS By Attest: Mayor By City Clerk City Manager (SEAL) HOUSING AND REDEVELOPMENT AUTHORITY OF HOPKINS , MINNESOTA By Attest: Chairman By Executive Director Secretary (SEAL)