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HomeMy WebLinkAboutCCRes_85-23~• ~~ 513V EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF FALCON HEIGHTS, MINNESOTA HELD: JUNE 10, 1985 Pursuant to due call and notice thereof, a special meeting of the City Council of the City of Falcon Heiylits, Ra-nsey County, Minnesota, was duly called and held at the City Hall in said City on the 10th day of June, 1985, at 6:00 P.M. for the purpose of opening, considering bids for and awarding the sale of $1,300,000 General Obliyation Tax Increment Bonds of 1985 of the City. The following ,nembers were present: Mayor Eggert, Ciernia, Hard, Baldwin, Chenowet~h :~ and the following were absent: -None The Clerk-Treasurer presented affidavits showing Nublication of notice of call for bids on $1,300,000 General Obligation Tax Increment Bonds of 1985 of the City, for which bids were to be received at this ,neeting, in accordance with the resolution adopted by the City Council on April 24, 1985. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475, and were approved and ordered placed on file. The Council proceeded to receive and open bids for the sale of the Bonds. The following bids were received: Bidder Interest Rate Net Interest Cost (See following page.) • BID TABULATION $1.300,000 General Obligation Tax Increment Bonds Falcon Heights, Minnesota SALE: Monday, June 10, 1985 AWARD: FIRST BANK ST. PAUL RATING: "A-1" COUPON NET INTEREST COST NAME OF BIDDER RATE YEAR & RATE PRICE FIRST BANK ST. PAUL 6.5096 1989 $998,375.00 $1,282,450.00 St. Paul, Minnesota 6.7596 1990 FIRST BANK MINNEAPOLIS 7.00% 1991 7.9869% Minneapolis, Minnesota 7.20% 1992 PAINEWEBBER, INC. 7.40% 1993 Minneapolis, Minnesota 7.60% 1994 7.80% 1995 8.00% 1996 ' 8.10 % 8 20% 1997 1998 . NORWEST INVESTMENT SERVICES 6.50% 1989 $999,025.00 $1,281,800.00 Minneapolis, Minnesota 6.75% 1990 Moore, Juran & Company, Inc. 7.00% 1991 7.9921 % M.H. Novick & Company, Inc. 7.20% 1992 Miller & Schroeder Municipals, Inc. 7.40% 1993 7.60% 1994 7.80 % 1995 8.00% 1996 8.1096 1997 8.20% 1998 E.F. HUTTON & COMPANY, INC. 6.50% 1989 $999,805.00 $1,282,020.00 Chicago, Illinois 6.75% 1990 DREXEL BURNHAM LAMBERT, INC. 7.00% 1991 7.9984% Chicago, Illinois 7.20% 1992 7.40% 1993 7.60% 1994 7.80% 1995 8.00 % 1996 8.10% 1997 8.20% 1998 • EHLERS AND ASSOCIATES, INC. $1,300,000 G.O. Tax Increment Bonds Falcon Heights, Minnesota June 10, 1985 Page 2 NAME OF BIDDER COUPON NET INTEREST COST RATE YEAR & RATE PRICE MERRILL LYNCH CAPITAL MARKETS GROUP 6.50% 1989 $1,002,237.50 $1,280,500.00 Minneapolis, Minnesota 6.75% 1990 DAIN BOSWORTH, INC. 7.00% 1991 8.0179% Minneapolis, Minnesota 7.20% 1992 CRONIN & MARCOTTE, INC. 7.40% 1993 Minneapolis, Minnesota 7.60% 1994 Marquette Bank Minneapolis, N.A. 7.80% 1995 8.00% 1996 8.10% 1997 8.25% 1998 AMERICAN NATIONAL BANK & 7.20% 1989 -1992 $1,005,768.75 $1,280,500• TRUST COMPANY 7.40% 1993 St. Paul, Minnesota 7.60% 1994 8.0461 % Juran & Moody, Inc. 7.80% 1995 Dougherty, Dawkins, Strand & Yost, Inc. 8.00% 1996 8.10% 1997 8.25 % 1998 PIPER, JAFFRAY & HOPWOOD. INC. 6.50% 1989 $1,011,646.88 $1,281,800.00 Minneapolis, Minnesota 6.75% 1990 Allison-Williams Company 7.10% 1991 8.0931 % Robert W. Baird & Company, Inc. 7.30% 1992 7.50% 1993 7.75% 1994 7.90% 1995 8.10% 1996 8.20% 1997 8.30% 1998 EHLERS AND ASSOCIATES, INC. 507 MARQUETTE AVENUE MINNEAPOLIS, MINNESOTA 55402 The Council then proceeded to consider and discuss the bids, after which member Mayor Eggert introduced • the following resolution and moved its adoption: RESOLUTION NO. 85-23 RESOLUTION ACCEPTING RID ON SALT (1F $1,300,000 GErTFRAL ORLiGATioN TAX iNCRF~~*'*^J' BONDS OF 1985 PROVITIING FOR TuFIR ISSTTANCF, AnTD PLEDGING TAX INCREMENTS FOR TNF, SFC[1RITY TT~F.RF,f1F WHEREAS: A. The City Council of the City of Falcon Heights has heretofore created Development District *10. 1 (the "Development District") pursuant t_o the provisions of Minnesota Statutes, Chapter 472A, and has approved a development program (the "Program") with respect to the Development nistrict; B. The Council has also approved a tax increment financing plan (the "Plan") and created Tax Increment Financing District No. 2 (Housing District No. 2) within the nevel~pment District (the "Tax Increment District") under the provisions of Minnesota Statutes, Section 273.71 to 273.78; C. Pursuant to the provisions of_ the Program and the Plan, funds are to be expended within the Development nistrict • for land acquisition and .certain capital and administration costs within the Development District (hereinafter referred to as the "Project"); NnW, THERF.FORF', RF IT RFSOL~IF,D by the ['ouncil of the City of Falcon Heights, Minnesota, as follows: 1. mhe bid of First IIank St. Paul (the "Purchaser") to purchase 1,300,000 general Obligation Tax Increment Bonds of 1985 of the City (hereinafter referred to as "Bonds" or individually as "Bond"), in accordance with the notice of bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ 1,282,450 plus interest accrued to settlement is hereby found, determined and declared to be the most favorable bid received and is hereby accepted, and the Bonds are hereby awarded to said hidc~er. "'he Clerk-Treasurer is directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. • 2 2. The Bonds shall be dated June 1, 1985, as the date of original issue and shall be issued forthwith as fully • registered bonds. The Bonds shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof. The Bonds shall mature on March 1 in the years and amounts as follows: 1989-90 $ 50,000 1991-93 $100,000 1994 $125,000 1995-96 $150,000 1997 $175,000 1998 $300,000 3. For the purposes of complying with Minnesota Statutes, Section 475.54, Subdivision 1, the maturity schedule for the Bonds has been combined with the maturity schedules for the City's outstanding $525,000 General Obligation Tax Increment Improvement Ronds of 1983, dated September 1, 1983 and $600,000 General Obligation Tax Increment Bonds of 1984, Series B, dated November 1, 1984, as permitted by Minnesota Statutes, Section 475.54, Subdivision 2. 4. The Bonds shall provide funds to finance the Project. Pursuant to the Plan adopted by the City, tax increments derived from the Tax Increment District established pursuant to the Plan, have been pledged to the payment of the • Bonds and interest thereon. The estimated collection of the tax increments exceeds 20$ of the cost of the Project. It is not anticipated that any net proceeds from the Project will be available for the payment of debt service of the Ronds. '^he total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Ronds herein authorized. Work on the Project shall proceed with due diligence to completion. 5. The Bonds shall bear interest payable semi- annually on March 1 and September 1 of each year commencing March 1, 1986 at the respective rates per annum set forth opposite the maturity years as follows: Maturity Years Interest Rates 1989 6.50$ 1990 6.75$ 1991 7.00$ 1992 7.20$ 1993 7.40$ • 3 Maturity Years Interest Rates • 1994 1995 1996 1997 1998 7.60b 7.80 8.00$ 8.10$ 8. 20~ 6. All Bonds of this issue maturing in the years 1995 to 1998, both inclusive, shall be subject to redemption and prepayment at the option of the City on March 1, 1994 and on any interest payment date thereafter at nar and accrued interest. Redemption may be in whole or in part of the Ronds subject to prepayment. If redemption is in part, those Ronds remaining unpaid which have the latest maturity date shall be prepaid first; and if. only part of the Ronds having a common maturity date are called for prepayment, the specific Ronds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the paying agent and to each registered holder of the Bonds. To effect a partial redemption of Ronds having a com- mon maturity date, the Bond Registrar prior to giving notice of redemption, shall assign to each Bond having a common mat~irity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, numbers so assigned to such Ronds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Ronds to be redeemed. The Ronds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Rond of a denomination of more than $5,~0~ shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Rond Registrar with, if the City or the Rond Registrar so requires, a written instrument of transfer in form satisfactory to the City and the Bond Registrar duly executed by the holder thereof or his attorney duly authorized in writing) and the City shall execute and the Rond Registrar shall authenticate and deliver to the holder of such Bond, without service charge, a new Rond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such holder,. in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Rond so surrendered. • ~ • * in Minnesota is appointed to act as bond registrar and transfe r • agent (the "Bond Registrar") and shall do so unless and until a successor Aond Registrar is duly appointed, all pursuant to any contract the City and Rond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holder) of the Ronds in the manner set forth in the form of Bond and paragraph 13 of this resolution. 8. The Bonds to be issued hereunder, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon shall be in substantially the following form; *The First National Bank of Minneapolis, Minneapolis, Minnesota • 5 r: UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY c:ITY OF FALCON HEIGHTS R- GENERAL OBLIGATION TAX INCREMENT BONll OF 1985 INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE June 1, 1985 REGISTERED OWNER: PRINCIPAL AMOUNT: CUSIP KNOW ALL PERSONS l3Y THESE PRESENTS that the City of Falcon Heights, Ramsey County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns in the manner hereinafter set forth, the principal • amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest t2~ereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date") corcunencing March 1, 1986 at the rate per annum specified above, (calculated on the basis of a 360-day year of twelve 30-day months) until the principal surn is paid or has been provided for. This Bond will bear interest from the tnost recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of a _ duly organized and validly existing under the laws of (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft ,nailed to the person in whose name this Bond is registered (the "Holder" or "Bonaholder") on the *The First National Bank of Minneapolis, Minneapolis, Minnesota • 6 registration books of the Issuer maintained by the Bond Registrar and at the address appeariny thereon at the close of business on the fifteenth day of the calendar month next precediny such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payi~~ent of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the Unites States of America. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND S~;T r,ORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that. all acts, conditions and thinys required by the Constitution ana 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 regular and due forra, time and manner as required by law, and this Bond, together with all other debts of the Issuer outstanding . on the date of original issue hereof and the date of its issuance and delivery to the original purchaser does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Falcon Heights, Ramsey County, Minnesota, by its City Council has caused this Bond to be executed in its behalf by the facsimile signatures of the Mayor and the Clerk-Treasurer, the corporate seal of the Issuer having been intentionally omitted as permitted by law. 7 • Date of Registration: Registrable by: Payable at: • • BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the t3onds described in the within t~-entioned Resolution. CITY OF FALCON HEIGHTS, RAMSEY COUNTY, MINNESOTA /s/ Facsimile Mayor Bond Registrar By Authorized Signature /s/ Facsimile Clerk-Treasurer 8 • ON REVERSE OF BOND All Bonds of this issue maturing in the years 1995 to 1998, both inclusive, are subject to redemption and prepayment at the option of the Issuer on March 1, 1994 and on any Interest Payment Date thereafter at par and accrued interest. Redemption may be in whole or in part or the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall ~e prepaid first; and if only part of the Bonds having a common maturity gate are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in~ accordance with law, and mailed notice of redemption shall be yiven to the paying agent and to the Holders of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bona Reyistrar shall assign to each Bond having a common maturity date, a distinctive number for each $S,OOU of the principal a,-iount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to • which were assiyned numbers so selected; provided, however, that only so ,much of the principal amount of such Bond of a denomination of ,sore than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and the Bond Registrar duly executed by the Holder thereof or his attorney duly authorized in writing) and the Issuer shall execute and the Bond Registrar shall authenticate and deliver to the riolder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated ,maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in ayyregate principal amount equal to and in exchanye for the unredeemed portion of the principal of the Bond so surrendered. r~ 9 This Rond is one of an issue in the total principal amount of $1,300,000 all of like date of original issue and • tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Rond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resol»tion adopted by the City Council on June 10, 1985 (the "Resolution") for the purpose of providing money to finance the payment of certain capital and administration costs within nevelopment District No. 1 and is payable out of the General obligation Tax Increment Roods of 1985 Fund of the Issuer primarily from certain tax increments derived from a tax increment district located within the City of Falcon Heights. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. The Bonds are issuable solely as fully registered Bonds in the denominations of $5,000 and integral multiples thereof and are exchangeable for fully registered Roods of other denominations in equal aggregate principal amounts and in_ authorized denominations at the principal office of the Rond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and • duties of the Rond Registrar. Copies of_ the Resolution are on file in the principal office of the Bond Registrar. This Rond is transferable by the Holder in person or by his attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Rond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonaY~le regula- tions of the Issuer contained in any agreement with the Rond Registrar. Thereupon the Issuer shall execute and the. Rond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Roods in the name o£ the transferee (but not registered in blank or to "bearer" or similar designation), of an authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond. • 10 The Issuer and the Bond Registrar r,-ay treat the • person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provides (except as otherwise provided on the reverse side hereof with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have Qeen executed by the Bond Registrar. The following abbreviations, when uses in the inscription on the face of this Sond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common • UNIF GIFT MIN ACT Custodian Cust) Minor) under Uniform Gifts to Minors Act State Adaitional abbreviations may also be used though not in the above list. • 11 ASSIGNMENT r~ LJ For value received, assigns and transfers unto hereby irrevocably constitute attorney to transfer the Bond registration thereof, with fu premises. Dated: the undersigned hereby sells, the within Bond and does and appoint on the books kept for t2ie L1 power of substitution in the iJotice: The assignor's siynature to this assignment must correspond with the name as it appears upon the face of the within Bona in every particular, without alteration or any change whatever. siynature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of • the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the infor,nation concerning the transferee requested below is provided. Nai~ie and Address: Include inforiaation for all point owners if the Bond is held~by joint account.) 12 9. The Bonds shall be executed on behalf of the Citv by the signatures of its Mayor and Clerk-Treasurer and be • sealed with the seal of the City; provided, however, that the seal of the City may be a printed facsimile; provided further that both of such signatures may be printed facsimiles and the corporate seal may be omitted on the Ronds as permitted by law. In the event of disability or resignation or other absence of_ either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either s»ch officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 10. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless and until a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. 'r'he Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Rond . is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is June 1, 1985. The executed Certificate of_ Authentication on each Rond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 11. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Rond Registrar may prescribe, the Bond Registrar shall provide for the registration of Ronds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Rond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 1Q) and deliver, in the name of the designated transferee or transferees, one. or more new Bonds of any authorized 13 • denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as • requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Ronds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Aonds which the holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Ronds surrendered for s~~ch exchange or transfer. Every Bond presented or surrendered for transfer or • exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the holder thereof or his attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond. Transfers shall also be subject to reasonable regula- tions of the City contained in any agreement with the Bond Registrar, including regulations which permit the Rond Registrar to close its transfer books between record dates and payment dates. 12. Each Bond delivered upon transfer of or in exchange for. or in lieu of any other Rond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 14 • 13. Interest on any Bond shall be paid on each • interest payment date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such interest payment date (the "Regular Record Hate"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof_ as of the Regular Record Hate, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than 10 days prior to the Special Record Date. 14. The City and the Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 13 above) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 15. The Bonds when so prepared and executed shall be delivered by the Clerk-Treasurer to the Purchaser upon receipt • of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 16. There is hereby created a special fund to be designated "General Obligation Tax Increment Ronds of 1985 Fund" (the "Fund") to be held and administered by the Clerk-Treasurer separate and apart from all other funds of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds herein authorized and any other general obligation tax increment bonds hereafter issued for the Project, including any modifications or additions thereto and made payable from the Fund, and the interest thereon have been fully paid. There shall be maintained in the Fund two separate accounts to be designated the "Capital Account" and the "Debt Service Account", respectively. The proceeds of the sale of the Bonds herein authorized, less any accrued interest received thereon, and less any amount paid f_or the Bonds in excess of $1,280,500, and less capitalized interest in the amount of $ 286,823 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before March 1, 1987), shall be credited to • 15 the Capital Account, from which there shall be paid all costs and expenses of the Project, including the cost of any . construction contracts heretofore let anc~ all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the Bond proceeds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes herein levied or covenanted to be levied and the receipt of tax increments. There is hereby pledged and there shall be credited to the Debt Service Account (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $1,280,500; (c) capitalized interest in the amount of $ 286,823 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before March 1, 1987); (d) collection of all of the tax increments the "Tax Increments") to be received from the Tax Increment District for the payment of the principal of and the interest on the Bonds, subject to the right of the City, to pledge or apply the Tax Increments to the payment of any other public costs of redevelopment of the Development District, as may be from time to time modified, including debt service on any obligations issued or otherwise incurred with respect to such costs, whether or not such pledge or application is made prior to, on a parity with or subordinate to the pledge and • application of the Tax Increments to the payment of debt service on the Bonds; (e) any guaranty payments or letter of credit proceeds paid pursuant to the Development Agreement dated June 10, 1985 between the City and Coffman Housing Partnership (the "Development Agreement"), but only to the extent such payments do not exceed 25$ of the debt service on the Bonds in any calendar year; (f) any collections of all taxes which may hereafter be levied in the event that the tax increments herein pledged to the payment of the principal and interest on the Bonds are insufficient therefore; (g) all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof; and (h) all investment earnings on funds held in the nebt Service Account. The Debt Service Account herein created shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds issued hereunder and any other general obligation tax increment bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in 16 • ' excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall • not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" made available under the federal arbitrage regulations. In addition, money in the Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of_ Section 103(h) of the Internal Revenue Code of 1954, as amended. 17. The County Auditor of Ramsey County has certified the original assessed value (as defined in Minnesota Statutes, Section 273.73, Subdivision 7) of property in the Tax Increment District as of January 1, 1984 is $ ~ The County Auditor shall determine in each year if the then current assessed value of property in the Tax Increment District exceeds the original assessed value, and shall calculate, in the manner provided in Minnesota Statutes, Section 273.76, Subdivision 3, the captured assessed value (as defined therein) attributable to the Tax Increment District. The City hereby determines to retain 100$ of the captured assessed value for purposes of tax increment financing. The County Auditor shall, in each such year, compute the mill rates to be extended against the captured • assessed value in the manner provided in Minnesota Statutes, Section 273.76, Subdivision 3, and the tax generated thereby shall constitute the Tax Increments for the year in which it is received. The County Treasurer will remit to the City the Tax Increments so received until the cost of the Project, including principal of the interest on the Bonds, has been paid and the City has been fully reimbursed for any principal of and interest on the Bonds which have been paid from any taxes levied. The City hereby appropriates the Tax Increments to the Debt Service Account,. which appropriation shall continue ~intil all of the Bonds, and any additional bonds payable from the Debt Service Account, are paid or discharged. The City hereby expressly reserves the right to use the Tax Increments to finance costs set forth in the Plan not financed hereby or to finance costs of other projects to be undertaken from time to time within the Development District in accordance with the Program and the Plan as may from time to time be amended. 17 • 18. On or before October 10 of each year, the Clerk-Treasurer shall certify to the County Auditor of Ramsey • County the amount of Tax Increments and any other funds appropriated to and then held in the Debt Service Account and the estimated collections of Tax Increments to be received in the next succeeding year. In the event that it is anticipated that the aggregate of said sums will not be sufficient to pay the principal and interest on the Bonds to become due in the first calendar year thereafter and the first six months of the succeeding calendar year, the City council shall pass a resolution requesting the County Auditor of Ramsey County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in the Debt Service Account and said estimated collections of Tax Increments to pay the principal and interest on the Bonds to become due during said period. 19. For the purpose of complying with the provisions of Minnesota Statutes, Section 273.75, Subdivision 5, the City has entered into the Development Agreement for the development for housing purposes of at least 90 percent of the Tax Increment District property to be acquired by the City with the proceeds of the Bonds, which Development Agreement provides for recourse for the City should such development not be completed. 20. The Tax Increments are such that if collected in full they, together with estimated collections of other revenues herein pledged for the payment of the Bonds, will • produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Ronds. 21. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers o.f the City shall he and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the nebt Service Account when a sufficient balance is available therein. 22. The Clerk-Treasurer is hereby directed to file a certified copy of this resolution with the County Auditor of Ramsey County, Minnesota, together with such other information as he shall require, and to obtain from the Auditor his certificate that the Bonds have been entered in the Auditor's Bond Register. 18 • 23. The officers of the City are hereby authorized • and directed to prepare and furnish to the Purchaser of the Bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the Aonds and to the fianncial condition and affairs of the City, and such oteer affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Ronds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the pity as to the facts recited therein. 24. Notwithstanding any provisions herein to the contrary the City reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments herein pledged to the payment of the Ronds and interest thereon to the extent and in the manner permitted by law. The motion for the adoption of the foregoing resolution was duly seconded by member Ciernia and upon vote being taken thereon, the following voted in favor thereof: all • and the following voted against the same: none Whereupon said resolution was declared duly passed and adopted. 19 • STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF b'ALCON HEIGHTS I, the undersigned, being the duly qualified and acting Clerk-Treasurer of the City of Falcon Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and toreyoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such -ninutes relate to opening and considering bids for, and awarding the sale of $1,3UU,000 General Obligation Tax Increiaent Bonds of 1985 of said City. . WITNESS my hand and the seal of said City this 10 day of June , 1985. ~s>i ' Clerk-Treasurer (SEAL) • 20