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HomeMy WebLinkAbout4513 - ADMIN Resolution - City Council - 1972/05/24Original RESOLUTION NO. 4513 RESOLUTION ACCEPTING THE BID FOR $5,000,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1972, FIXING THE FORM AND SPECIFICATIONS, DIRECTING THEIR EXECUTION AND DELIVERY AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. The bid of BancNorthwest and Halsey Stuart and Company, Chicago, and the First National Bank of Boston, The First National Bank and Trust Company, Oklahoma, Dean Witter and Co., Inc., The Chicago Corporation and American Securities Corporation to purchase $5,000,000 General Obligation Improvement Bonds of 1972 of the City, described in the notice of sale thereof is hereby found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and shall be and is hereby accepted, said bid being to purchase bonds bearing interest as follows: 3.5070 1973 - 1976 incl. 3.70% 1977 - 1978 incl. 3.907. 1979 - 1980 incl. 4.1070 1981 - 1982 incl. 4.25% 1983 - 1984 incl. 4.50% 1985 4.6070 1986 - 1987 incl. at a price of $4,964,750.00. The sum of $27,250.00, being the amount bid in excess of $4,937,500 shall be credited to the bond sinking fund. The City Treasurer is directed to retain the good faith check of the successful bidder pending completion of the sale and delivery of the bonds, and the City Clerk is directed to return the checks of the unsuccessful bidders forthwith. The Mayor and City Manager are directed to execute on behalf of the City the purchase agreement submitted by the purchaser. 2. The City shall forthwith issue its negotiable coupon General Obligation Improvement Bonds of 1972 in the principal amount of $5,000,000 dated June 1, 1972, being 1,000 in number and numbered 1 to 1,000, both inclusive, in the denomination of $5,000 each, all bearing interest payable June 1, 1973, and semi-annually thereafter on December 1 and June 1, and maturing on June 1 in the years and amounts as follows: $325,000 in each of the years 1973 to 1982, both inclusive; and $350,000 in each of the years 1983 to 1987, both inclusive; all bonds maturing after June 1, 1982, are subject to redemption at the option of the City in inverse numerical order on said date and any interest payment date thereafter at par and accrued interest. 3. The bonds shall be payable at the main office of the Northwestern National Bank of Minneapolis, Minneapolis, Minnesota. 4. It is hereby determined that the sum of $4,937,500 is the amount necessary to finance the improvements set forth in the Council's Resolution No. 4493 adopted April 17, 1972, and additional bonds in the amount of $62,500 represent the higher rate of interest authorized by MSA Section 475.56 and do not exceed two percent (2%) of the amount otherwise authorized. 5. The general obligation improvement bonds and the interest coupons thereto attached shall be in substantially the following form: STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF ST. LOUIS PARK GENERAL OBLIGATION IMPROVEMENT BOND OF 1972 No. $ ,000.00 KNOW ALL MEN BY THESE PRESENTS, that the City of St. Louis Park, Hennepin County, Minnesota, acknowledges itself to be indebted and for value received hereby promises to pay to BEARER the sum of THOUSAND DOLLARS on the first day of June 19 , and to pay interest thereon from the date hereof until the principal amount is paid at the rate of per annum, all interest payable June 1, 1973, and semi-annually thereafter on the 1st day of December and the 1st day of June in each year, in accordance with and upon presentation and surrender of the attached interest coupons as they severally become due. Both principal and interest are payable at in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts and to provide money for the prompt and full payment of said principal and interest as the same become due, the full faith, credit and taxing powers of the City has been and are hereby irrevocably pledged. THIS BOND is one of an issue in the total principal amount of $5,000,000, all of like date all tenor except as �o maturity, serial number, interest rate, and right of redemption issued by the City pursuant to the Constitution and Laws of the State of Minnesota, including Section 6.15 and other charter authority of the Home Rule Charter of the City of St. Louis Park, Minnesota, for the purpose of defraying expenses incurred and to be incurred kr public improve- ments in progress and heretofore completed by the said City, and payable primarily from special assessments which have been or will hereafter be levied. -2- t All bonds of this issue maturing after June 1, 1982, shall be subject to redemption in inverse numerical order on said date and any interest payment date thereafter at par and accrued interest, upon 30 days prior notice given in the manner provided by law. IT IS HEREBY CERTIFIED AND RECITED, that all acts, conditions, and things required by the Constitution and Laws of the State of Minnesota and the City Charter to be done, to happen, to exist and to be performed precedent to and in the issuance of this bond have been done, have happened, do exist and have been performed in regular and due form and that this bond with all other debts of the City outstanding a the date hereof, and the date of its actual issuance and delivery, does not exceed any constitutional or statutory or charter limitations of indebtedness. IN TESTIMONY WHEREOF, the City of St. Louis Park, Hennepin County, Minnesota, by its City Council, has caused this bond to be executed on its behalf by the facsimile signature of its Mayor and the manual signature of its City Manager, and sealed with a facsimile of the City Seal, and the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, all as of June 1, 1972. (Facsimile) City Manager (SEAL) (Facsimile) FORM OF COUPON Mayor On the first day of June (December), 19_, the City of St. Louis Park, Hennepin County, Minnesota, will pay to bearer at the sum of Dollars, for interest then due on its General Obligation Improvement Bond of 1972, dated June 1, 1972. (Facsimile) Mayor (Facsimile) City Manager 6. It is hereby expressly found and determined that the aforedescribed General Obligation Improvement Bonds issued hereunder shall be payable from special assessments to be levied and that at least 20% of the costs have been assessed or will be assessed against benefited properties and said special assessments are hereby pledged to repayment of said bonds, and are hereby irrevocably appropriated and pledged to the sinking fund for said obligations created by this resolution. All said bonds being issued are being issued in accordance with Resolution No. 4493 adopted by the City Council on April 17, 1972. It is further ascertained and determined that the maturity dates above specified do not extend for a longer period than the reasonable life expectancy of the respective improvements so financed by the issuance of these bonds. -3- 7. The City shall pay the reasonable charges of the bank designated by the purchaser for their services as paying agent. 8. The bonds shall be prepared under the direction of the City Clerk and shall be executed on behalf of the City by the printed facsimile signature of the Mayor and the manual signature of the City Manager, and a facsimile of the city seal shall be printed on each bond. The interest coupons shall be executed and authenticated by the printed facsimile signatures of said Mayor and City Manager, and when said bonds have been so executed and authenticated, the sane shall be delivered by the City Manager to the purchaser upon receipt of the ,urchase price plus accrued interest, and the purchaser shall not be required to see the application thereof. 9. There is hereby created a separate fund for the General Obligation Improvement Bonds of 1972, which shall be used for no other purpose than to pay principal and interest on said bonds. Into such fund shall be paid all special assessments levied on account of the improvements listed in Resolution No. 4493, and the proceeds of the general tax levy provided herein, or by budgeted or other proper funds for meeting said principal and interest payments when due; if any payment of principal or interest shall become due when there is not sufficient money in said fund to pay the same, the treasurer shall pay such principal or interest from the general fund of the City. 10. It is hereby determined that the City's share of the cost of General Obligation Improvement Bonds of 1972 is $2,000,000. The balance of the cost of said improvements is to be paid by the proceeds of special assessments against properties specially benefited thereby. To pay the City's share of principal and interest on said improvement bonds issued to finance the improvements listed in Resolution No. 4493, there is hereby levied a direct, annual ad valorem tax upon all property in the City, to be collected in the years and amounts as follows. The years shown are years of levy for taxes collectible during the following year: Year Levy Year Levy 1972 220,200 1980 180,300 1973 215,400 1981 174,700 1974 210,700 1982 179,600 1975 205,900 1983 173,400 1976 201,100 E34 34 16' ,100 1977 196,100 1985 160,500 1978 191,000 1986 153,800 1979 185,700 11. It is hereby determined that the estimated collection of special assessments levied or to be levied for the improvements against property specially benefited thereby and the ad valorem tax levies will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the bonds. The Clerk shall deliver a certified copy of this resolution to the County Auditor of Hennepin County and obtain his certificate as required by Section 475.63, Minnesota Statutes, that a tax has been levied as required by law. -4- 12. The aforementioned tax levy herein provides shall be irrepealable until all of said bonds are paid, provided that the Clerk may annually, prior to October 10th, certify to said County Auditor that a surplus amount exists in the General Obligation Improvement Bond Fund of 1972 to pay principal and interest due during the ensuing year, and the County Auditor shall thereupon reduce the levy collectible during such year by the amount so certified. 13. The City Clerk shall obtain a copy of the proposed approving legal opinion of Messrs. Howard, LeFevere, Lefler, Hamilton and Pearson, which shall be compete except as to dating thereof, and shall cause said opinion to be printed on each bond, together with a certificate to be signed by his facsimile signature, in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal opinion executed by the above named attorneys, except as to the dating thereof, which opinion has been handed to me for filing in my office prior to the time of bond delivery. (Facsimile Signature) City Clerk City of St. Louis Park, Minnesota The Clerk shall obtain a copy of the opinion at the time of bond delivery and execute a separate certificate as to such opinion upon receipt of such opinion and shall file the opinion in his office. 14. It is hereby determined that the improvements to be financed by the issuance of bonds hereunder will benefit the entire City, and the City hereby covenants with the holders from time to time of said bonds as follows: (a) The City will cause the assessments for said improvements to be promptly levied so that the first installment will be collectible during 1973 and will take all steps necessary to assure prompt collection. (b) That if any assessment is for any reason set aside by a court of competent jurisdic:ion or if any part of the proceedings are invalid for any season, the City Council will make a reassessment or a new assessment as to such parcel or parcels. (c) The City will keep complete and accurate books and records showing all receipts and disbursements in connection with the improvements, the assessments levied therefor and other funds appropriated for their payment and all collections thereof and disbursements therefrom, moneys on hand and balance of unpaid assessments. (d) The City will cause its said books and records to be audited at least annually by qualified public accountants and will furnish copies of such audit reports to any interested person upon request. -5- 15. It is hereby determined that the improvements financed by these bonds has no relationship to the comprehensive municipal plan and that these items need not be referred to the Planning Commission under the provisions of MSA 462.356, Subd. 2. 16. The County Auditor and the officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of said bonds and to the attorneys approving the same certified copies of all proceedings and records of the City relating to said bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts as ,:o the validity and marketability of said bonds, and the power and authority of the City to issue said bonds within their knowledge or as shown on the books and records under their custody and control, and such certified copies and certificates, including any heretofore furnished, shall be deemed the responsibility of the City as to the facts stated therein. The motion for the adoption of the foregoing resolution was duly seconded by Councilman Griak, and upon vote being taken thereon, the following voted in favor thereof: Councilman Fleetham, Councilman Graves, Councilman Griak, Councilman Hanks, Councilman Heltzer, Councilman Thiel and the following voted against the same: Att st: ity Clerk None Adopted by the City Council X24, 1972. nistration: City ana:er -6- President P Tem Approved as to form and legality: Cit ttorney