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HomeMy WebLinkAboutCCRes_72-11r EXTRACT OF MINUTES OF MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF FALCON HEIG~iTS, MINNESOTA HELD: JUNE 8, 1972 Pursuant to due call and notice thereof, a regular meeting of the Village Council of the Village of Falcon Heights, Ramsey County, Minnesota, was duly held at the Village Hall in said Village on the 8th day of June, 1972, at 7:30 o~clock P .M. The following members were present: Acting Mayor Charles Stone, Councilmen Black, Ecklund and Taylor. and the following were absent: Mayor Warkentien until 10:50 P.M. Member Councilman Black introduced the following resolution and moved its adoption: RESOLUTION N0. 2-11 _ F,ESOLUTION AUTHORIZING THE ISSUANCE \ AND PUBLIC SALE OF $100,000 MUNICIPAL 1 BUILDING REVENUE BONDS OF 1972 • 1 WHEREAS, the Village of Falcon Heights is authorized to establish and operate a municipal liquor dispensary for the off-sale of intoxicating liquors in accordance with the provi- sions of Chapter 340 Minnesota Statutes; and WHEREAS, the Council deems it necessary and exped- ient to acquire, construct and furnish a municipal liquor dispensary to be owned and operated by the Village of Falcon Heights; NOW THEREFORE, BE IT RESOLVED by the Village Council of the Village of Falcon Heights, Minnesota, as follows: 1. It is hereby determined and declared that it is advisable, expedient and necessary to provide money in the amount of $100,000 to acquire, construct and furnish a municipal liquor dispensary by the issuance and sale of Municipal Building Revenue Bonds of 1972 in said amount, and that the receipts reasonably anticipated from the oper- ation of the dispensary will be sufficient to provide net revenues in an amount required to meet the payments of prin- cipal and interest on such obligations when due and that it s is for the best interests of the Village that revenue bonds be issued payable solely from the net revenues from the mun- icipal liquor dispensary. 2. The Village has no presently outstanding bonds, warrants, certificates or other obligations or evidences of indebtedness or money borrowed for or on account of the mun- icipal liquor dispensary or indebtedness for which any of the net revenues of said dispensary have been appropriated or pledged. 3. The Village shall forthwith issue and sell $100,000 Municipal Building Revenue Bonds of 1972 to be dated July 1, 1972, in accordance with the notice of bond sale hereinafter set forth, and each and all of the terms and conditions contained in said notice are hereby adopted as the terms and conditions of said bonds and the sale thereof. ~4. The Village Clerk is hereby authorized and directed to give notice of the sale by publication in the local official newspaper and in the Commercial West at least ten days in advance of the date of sale. Such notice shall be in substantially the following form: -2- • J • NOTICE OF BOND SALE $100,000 MUNICIPAL BUILDING REVENUE BONDS OF 1972 VILLAGE OF FALCON HEIGHTS RAMSEY COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that these bonds will beyoffered for sale according to the following terms: TIME AND PLACE: Thursday, July 13, 1972, at 8:00 o'clock P.M., CDST, at the Village Hall in the Village of Falcon Heights, Minnesota. TYPE OF BOND: Negotiable coupon, in the denomination of $1,000 or $5,000 each, at the dis- cretion of the bidder, for which bonds the net revenues of the Muni- . cipal Liquor Dispensary will be pledged. • PURPOSE: Acquisition, construction and furnishing of a municipal liquor store. DATE OF BONDS: August 1, 1972. INTEREST PAYMENTS: August 1, 1973, and semiannually thereafter on February 1 and August 1. MATURITIES: August 1 in the years and amounts as follows: $5,000 1975-1980 $10,000 1981-1987 All dated are inclusive. REDEMPTION: All bonds maturing in the years 1983 to 1987, both inclusive, are callable at the option of the Village in inverse order of their serial numbers on August 1, 1882, or any interest payment date there- after, at par and accrued interest plus a premium of 2~ of par for each bond called. -3- • PAYING AGENT: Suitable bank designated by • purchaser. DELIVERY: 40 days after award subject to approving legal opinion of Messrs. Briggs and Morgan, in St. Paul, Minnesota. Bond printing and legal opinion will be paid by the issuer and delivery will be any- .- where in the continental United States without cost to the pur- chaser. TYPE OF BID: _ Sealed bids only in an amount not less than $98,100 and accrued inter- est must be received by the Village Clerk prior to the time of the sale. Bids must be unconditional except as to legality. Certified or cash- ier's check payable to the Village .Clerk-Administrator in the amount of not less than $2,000 must accom- pany bid to be forfeited as liquid- ated damages if bidder fails to com- ply with accepted bid. RATES: All rates and combination of rates must be in integral multiples of 1/20 of 1~ and may not exceed 7~ per annum. All bonds of the same maturity date must bear a single basic rate from date of issue to maturity. Additional interest coupons will not be permitted. No limitation is placed upon the num- ber of rates which may be used. PREFERENCE OF BIDS:. .Lowest dollar amount of net interest cost, determined by addition of any discount to and deduction of any premium from the. total interest on all bonds, from date of issue to their stated maturity. The Village reserves the right to reject any and all bids, to waive informalities and to adjourn the sale. ADDRESS: Bids should be addressed to: Dewan B. Barnes - Village Clerk- Administrator - Village of Falcon Heights - 1644 41est Larpenteur Avenue - St. Paul, Minnesota 55113. Bidders are requested to indicate on envelope "Bid for $100,000 -4- ,~ r . DA rED Additional information may be obtained from: JURAN & MOODY, INC. 114 East Seventh Street St. Paul, Minnesofa 55101 Tel. No. 612-224-8661 Municipal Building Revenue Bonds of 1972." June $, 1972. BY ORDE OF~~~AGE COUNCIL /s/ ewan B. Barnes Village Clerk-Administrator -5- • ~ . 5. Said bonds and interest coupons appurtenant thereto shall be in substantially the following form: I• UNITED STA'1'ES OF AMERICA STA`L'E OF MINNESOTA RAMSEY COUNTY VILLAGE OF FALCON HEIGHTS No. MUNICIPAL .BUILDING REVENUE BOND OF 1972 $ 5,000 KNOW ALL MEN BY THESE PRESENTS that the Village of Falcon Heights, Ramsey County, Minnesota, has obligated itself to pay to bearer out of the Sinking and Interest Account of the Liquor Dispensary Fund of the Village the sum of FIVE THOUSAND DOLLARS on the first day of August, 19 _ and to pay interest thereon out of said account at the rate of hundredths per cent ( per annum from the date hereof until maturity, interest being payable August 1, 1973 and semiannually thereafter on the first day of February and the first day of August in each year, in accordance with and upon presentation and surrender of the interest coupons hereto attached, as the same sever- ally become due. Principal and interest are payable at the main office of the N.W. Nat'1~Bank of~Mpls., in Mils, Minn. 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. All bonds of this issue maturing in the years 1983 to 1987, both inclusive (bonds numbered TI to 20 both inclusive), are subject to redemption and pre- payment at the option of the Village in inverse order of serial numbers, on August 1, 1982 and on any interest payment date thereafter at par and accrued interest plus a premium of $ 100.00 At least thirty days prior mailed notice of redemption•shall in each case be given to the bank where said bonds are payable and to the last known holder, and published notice of redemption shall be given in accordance with law.. Holders desiring to receive mailed notice must register their names, addresses and bond numbers with the Village Clerk, but published notice shall be effective without mailed notice. -7- -_ ., ._ .. rya ~- . ,.,. ~ t ~,.. 1 This bond is one of an issue in the total principal amount, of $100,000, all of like date and tenor, except as to • serial, number, maturity, interest rate and redemption privi- lege, which bond has been issued for the purpose of providing funds for the acquisition, construction and furnishing of a new liquor dispensary building, and the said bonds and inter- est thereon are payable solely and exclusively out of the Sinking and Interest Account of the Liquor Dispensary Fund of the Village; from the net revenues of the municipal liquor dispensary, as provided by the resolution authorizing the issuance of said bonds, and do not constitute a debt of the Village within the meaning of any constitutional or statutory limitation of indebtedness. In the event of any default hereunder, the holder of this bond may exercise any of the rights and privileges granted by the. laws of the State of Minnesota subject to the provisions of the .authorizing resolution of the Council. The bonds of this issue are a first and prior lien upon the net revenues of the municipal liquor store of the Village, except that the Village is authorized to issue additional revenue obligations on a parity of lien with these bonds under certain limited condi- tions, all as specified in the resolution authorizing this issue. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done,. to happen and • to be performed, precedent to and in the issuance of this bond, have been done, have happened and have been performed, in due form and manner as required by law; that the Village will acquire, construct and furnish a liquor dispensary pursuant to law, that the Village will pay net revenues into the Sinking and Interest Account and maintain in said account a sufficient amount to pay principal and interest as the same _ become due; and that the Village will at all times maintain such operating policies as to produce revenues at least sufficient to meet the annual principal and interest require- ments of this issue. IN WITNESS WHEREOF., the Village of Falcon Heights, Ramsey County, Minnesota, by its Village Council has caused this bond to be executed in its behalf by the signatures of the Mayor and the Village Clerk-Administrator and the corporate seal of the Village to be hereto affixed and has caused the interest coupons hereto annexed to be executed and uthe Gated by the facsimile signatures of s d officer a a~ of gust 1, 1972. ,~ illage Clerk-Administrator Mayor -8- r. •-. R 4!l ."ter.. ...yrll"T. `. {^ .. i. rt...Tnw~l+~ ' YIMT"'ice. .. .. ... .. .. ...... ....~...-.. .. (Form of Coupon)` • No. $ On the first day of August (February), lg , unless the bond described below is called for earlier redemp- tion, the Village of Falcon Heights, Ramsey County, Minnesota, will pay to bearer out. of the Sinking and Interest Account of the Liquor Dispensary Fund of the Village at the sum shown hereon for interest then due on its Municipal Building Revenue Bond of 1972, No. dated August 1, 1972. /s/ Facsimile /s/ Facsimile Village Clerk-Administrator Mayor • • -9- .. ,, ,c. . , ~, ,....._ ,. ,~ , . _. .-. ~ , ,.• ~~,,. _. 6. After award or sale of said bonds, the Clerk • shall cause the printed bonds and coupons to be prepared, which shall then be executed in behalf of the Village by the signatures of the Mayor and Clerk and sealed with the manually affixed corporate seal of the Village affixed thereto, which execution shall operate as ratification and confirmation of the printed, engraved or lithographed ".facsimile signatures on the coupons.. When so prepared and executed, the Clerk shall cause the bonds to be delivered to the purchaser 'thereof, upon payment to the Treasurer of the Village of the agreed purchase price, and the. purchaser shall not be obligated to see to the use and .application of the purchase price. 7. In order to provide for the proper adminis- tration of all funds which will be derived from the oper- ation of the liquor dispensary and in order to provide security for the bonds to be issued hereunder, the Village Treasurer shall establish and maintain a Liquor Dispensary Fund with the following sub accounts: (a) A Building Construction Account, to which shall be credited all proceeds received from the sale of the bonds issued hereunder less the accrued interest and premium (if any.) paid by the purchaser, capitalized interest in an amount suffi- cient to pay interest due on the bonds as of August 1, 1973, ..and -any. other amounts which may be appropriated ror the purpose of acquiring, constructing and furnishing a liquor dispensary building. The moneys therein shall be used solely for the purpose of paying for the costs thereof, including legal, engineering, financing and other such expenses incidental thereto, and any surplus shall be transferred to the' Reserve Account hc~^einafter provided for . (b) An Operation and Maintenance Account, to which shall be credited, as received, all receipts from the operation of the Municipal Liquor Dispensary. There shall be charged against such account all items of disbursement which by sound accounting practices .constitute normal and reasonable costs of current operation and maintenance of the dispensary, exclud- ing allowance for depreciation,. capital improvements and extraordinary repairs. • Such costs shall include compensation for the manager and other necessary -10- employees, insurance, utility services, • costs of replacement of merchandise sold and similar expense items. There shall be retained in said account an amount which will be sufficient to pay • all anticipated expenditures for such current operation and maintenance for two months in advance. Any balance therein shall be deemed net revenue. (c) A Sinking and Interest Account, to which shall be credited on the first. secular day of each calendar month, com- a meneing on August 1, 1973, the amount of one-twelfth of the total amount of prin- eipal and interest due for said bonds issued herein authorized and any other bonds issued on a parity therewith for the ensuing twelve months, from the net revenues. in the Operation. and Maintenance Account, to pay only principal and inter- est on the bonds issued hereunder and. any other bonds which are .issued on a parity with said bonds until said bonds and interest have been fully paid. There shall also be credited to said Sinking • and Interest. Account the accrued interest and premium (if any} paid by the purchaser of said bonds upon delivery thereof and capitalized interest in an amount sufficient to pay •interest on the bonds due as of August 1, 1973. (d) A Reserve Account, to which shall be credited on the first secular day of each calendar month, commencing on August 1, 1973 from the remaining net revenues an amount at least sufficient to accumulate in fifty equal monthly installments a reserve equal to the maximum annual inter- est and principal thereafter due on the .bonds.. The moneys constituting said reserve shall be used only to the extent necessary for the payment of principal and interest on the revenue bonds issued hereunder and any other bonds issued on a parity therewith whenever other moneys in the Sinking and Interest Account are insufficient therefor, and whenever so used said balance shall be restored by the transfer of additional moneys from . the net revenues in the Operation and Maintenance Account except as hereinafter otherwise provided. -11- • (e) All credits to the Sinking .and - Interest Account and the Reserve Account shall be cumulative, and in the event the earnings are insufficient to make the credits required herein, the difference between the amount in fact credited and. the amount required hereunder shall be made up out of the next available net revenue; provided however, that the moneys constituting the reserve may be used to prepay bonds, when such prepayment will retire all bonds then payable from said account, and provided further that said reserve shall be terminated when there are sufficient funds in the Sinking and Interest Account to retire .all outstand- ing bonds and may be reduced to the ex- • tent that the sums therein exceed the maximum annual interest and principal thereafter due on said bonds. (f) Net revenues not required for the foregoing purpose shall be deemed surplus net revenues, and may be used .for any other corporate purpose. 8. The Village Clerk. shall maintain a bank account • separate from all other accounts of the Village in which there shall be kept the funds of the Sinking and Interest Account and Reserve Account. .Said funds shall be deposited in a bank mutu- ally acceptable to the Council and the purchaser of the bonds. All funds may be invested in all legal investments for Villages. g. The Village may authorize the issuance of an additional $30,000 of bonds on a parity of lien with this issue if necessary to defray the costs incurred in the com- pletion of the acquisition, construction and furnishing of the dispensary, but said bonds must be issued within 12 months from the date of this issue, and the Village reserves the right and privilege of issuing and selling refunding bonds of and to the extent needed to refund maturing bonds of the issue herein authorized, if moneys in the Sinking and Interest Account and Reserve Account are at any time insufficient for the payment in full of the principal and interest due thereon, which refunding bonds may be on a parity of lien with this issue but shall mature subsequent to all of the bonds payable from said Sinking and Interest Account which are to remain outstanding upon the completion of such refunding. The bonds herein authorized, or any part thereof, may also be refunded with the consent of the holders thereof (except as to maturing bonds in which case such consent shall not be required) and • the refunding bonds issued shall enjoy complete equality of lien with the portion of the bonds .not refunded and any other -12- . ti. . , C~ • outstanding bonds payable from the Sinking and Interest Account, if any there be. The refunding bonds shall continue to have whatever priority of lien over subsequent issues that the refunded bonds may have had. If only a portion of the out- standing bonds shall be so refunded and if such bonds shall be refunded in such manner that the interest rate of any refunding bond shall be greater. than the interest rate of the corresponding refunded bond,. or that the maturity date of any refunding bond shall be earlier than the maturity date of the corresponding refunded bond, then such bonds may not be refunded without the consent of the holders of the unrefunded portion of the bonds issued hereunder and any other outstanding bonds .payable from the. Sinking and Interest Account. 10. The Village may authorize the issuance of addi- tional municipal building revenue bonds or other obligations payable from the net revenues of the liquor dispensary and on a parity as to lien upon the earnings of such dispensary with the bonds authorized to be issued hereunder, if, but only if, the net revenues derived from the ownership and operation of said dispensary for the three completed fiscal years immedi- ately preceding the date of such additional issue shall have averaged an amount equal to at least ono and one-quarter times the average annual interest and principal requirements of the bonds then outstanding and such additional bonds during the then remaining life of the bonds then outstanding. 11. The Village hereby certifies and represents to, and covenants and agrees with, the purchaser and holders from time to time of .each bond. issued hereunder as follows: • 11.1. As long as any of said bonds are outstanding the Village will continue its ownership and operation of said dispensary as a revenue producing utility and convenience, in the manner authorized and subject to the restrictions imposed by the Statutes or Laws of the State of Minnesota, including Section 340.20, Minnesota Statutes, relating to elections on the licensing of intoxicating liquors, and will not authorize the establishment or operation of any other dispensary within the Village for the off-sale of intoxicating liquors at retail, and the Village will maintain the dispensary build- . ing, furnishings, equipment and merchandise in good condition, and free from all liens, provided that purchase money liens may be created on merchandise acquired for resale, or such merchandise may be acquired subject to liens existing at the time of acquisition. 11.2. If any properties constituting capital assets of the dispensary shall be sold and disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition shall be used either to produce other -13 - capital assets for the dispensary or applied to pay principal of and. interest on bonds issued hereunder. No such sale or sales shall be made at times or prices such as to imperil the prompt and full payment of the bonds issued hereunder and the interest thereon. 11.3. The Village will procure and keep in force insurance on the dispensary building and the equipment and furnishings thereof and all stocks of merchandise, protecting against loss or damage by fire, tornado, windstorm, flood, theft and. all other causes customarily insured against for like properties, in amounts sufficient to cover total loss thereof, and will procure and keep in force suitable fidelity bonds covering all employees handling moneys of the dispen- sary. The bond of the liquor store manager, and bonds of other employees shall be in such amounts as the Council shall determine will be adequate to protect the Village and the holders of bonds .issued hereunder. In the event of loss covered by said insurance policies or bonds, the proceeds shall be used to repair or restore the damage or to retire bonds payable from the revenues of said dispen- sary . The Village will further keep in force a liability insurance policy (covering its operation of said dispensary). Said policy shall specifically provide for the payment by the insurance company on behalf of the insured of all sums which the Village shall be obligated to pay by reason of liability imposed upon it by law for injuries or damage to persons, other than employees, including liability imposed by reason of M.S.A. 340.95• 11.4. The Village shall continue its "Liquor Dispensary Fund" and establish and continue therein the accounts specified in paragraph 7 hereof and its subdi- visions, and will cause proper and adequate books and records of account to be kept separate from all other records of the Village, reflecting all receipts and dis- bursements relating to said dispensary and its operation. All of said books. and records shall be open to inspection and copying at all reasonable times by the holder of any of said bonds or his agent or attorney and the Village will, without .cost, furnish copies of any portions thereof rea- sonably requested by any bondholder. The Village will cause annual operating statements to be prepared and an independent audit of the books of the dispensary to be made by a competent public accountant, within ninety days after the close of such fiscal year, and will furnish a copy thereof without cost, upon request, to any bondholder. -14- ,, • ., ~r ' 11.5. The gross and net revenues of the dispen- sary will be used and applied only as prescribed in paragraph 7 hereof and its subdivisions. The Village will at all .times maintain operating policies concerning the purchase .and sale of merchandise and do and perform all other acts and things necessary to assure that the net revenues col.- . lected will be at least sufficient to meet all payment of principal and interest on the bonds and to. establish and maintain the reserve therefor above defined. 11.6. In the event that moneys in said "Liquor Dispenary Fund" shall at any time be insufficient to pay principal and interest then due on bonds payable from the .Sinking and Interest Account, said money shall first be applied to pay pro rata the accrued interest on all such bonds then outstanding, and the balance shall be applied in payment of maturing principal, in order of the serial numbers, lowest numbers first, of the bonds which are then due and payable except that as between bonds of different .series maturing on the same date, the bonds of the series first issued shall be paid first. 11.7.. The appropriation and pledge of revenues hereinabove made to the Liquor Dispensary Fund and its subaccounts shall at all times constitute an irrevocable pledge and prior lien upon the net revenues of the munici- pal liquor store and appropriation for the benefit and security of the holders of bonds issued hereunder, and the Village will not issue any additional bonds or other evidences of indebtedness or incur or suffer to be incurred any obligation payable from said revenues on a parity of lien with the bonds herein authorized, except as expressly. authorized in paragraphs 9 and 10. 11.8. Each and all of the foregoing provisions of this resolution which in any wise tend to secure or assure prompt and full payment of the principal of and interest on bonds issued hereunder will be promptly and faithfully per- formed and carried out by the Village and its officers and agents. 11.9. The holders of 20% or more in aggregate principal amount of bonds under this resolution and at any time outstanding may, either by law or in equity, by suit, action, or other proceedings, protect and enforce the rights of all holders of bonds issued hereunder and then outstanding, or enforce and compel the performance of any and all of the covenants and duties herein specified to be performed by the Village or its officers and agents. -15- ~ Y ~ •r ~ 12. When all bonds issued under this resolution, and all coupons appertaining thereto, have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the holders of the bonds shall cease. The Village may discharge all bonds and coupons which are due on any date by depositing with the paying agent for such bonds on or before that date a sum sufficient for the payment thereof in full; or if any bond or coupon should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The Village may also discharge any pre- payable bonds which are called for redemption on any date when they are prepayable according to their terms, by depositing with the paying agent or agents on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemp- tion has been duly given as provided in the resolution authoriz- ing the bonds. The Village may also at any time discharge this issue of bonds in its entirety by complying with the provisions of Minnesota Statutes, Section 475.67, Subdivisions 4 to 11, and any amendments thereto, except that the funds deposited in escrow in accordance with said provisions may but not need be in whole or part proceeds of advance refunding bonds. The Village may discharge the bonds and coupons as herein provided • without the consent of any bondholders. 13. The Village Clerk is hereby authorized and directed to file copies of this resolution and the resolu- tion accepting the bid on the bonds with the County Auditor of Ramsey County and to obtain the certificate of said County Auditor that the bonds herein authorized have been duly registered in his Bond Register. 14. The officers of the Village are hereby authorized and directed to prepare and furnish to the purchaser of said bonds and to the attorneys approving the legality thereof, certified copies of such proceedings and records of the Village relating to the authorization and issuance of said bonds, and the establishment of said dispensary, and affidavits and certificates as to all other matters appearing in their official records or otherwise known to them which shall be reasonably necessary to evi- dence the validity and marketability of said bonds and all such certified copies, certificates and affidavits includ- ing any heretofore furnished, shall constitute the repre- sentations of said Village as to the truth of the statements contained therein. Member Councilman Stone seconded the motion for the adoption of the foregoing resolution and upon a vote being taken thereon, the following voted in favor thereof: Mayor Warkentien, Councilmen Black, Stone, and -16- . ,~" _ ~, , ~~ ~~ . r~ 1'~ and the following voted against the same: Councilmen Ecklund and Taylor. Whereupon said resolution was declared duly passed and adopted. Passed by the Village Council this 8th day of June, 1972. ~.i / ~' Willis C. A. Waxkentien, Mayor Attest ewan B. Barnes, Clerk-Administrator -17-