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HomeMy WebLinkAboutCCRes_85-68543G P.-85-~8 i EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF FALCON HEIGHTS, MINNESOTA HELD: December 3, 1985 Pursuant to due call and notice thereof, a special meeting of the City Council of the City of Falcon Heights, Ramsey County, Minnesota, was duly called and held at the City Hall in said City on Tuesday, the 3rd day of December, 1985, at 6:00 P.M. for the purpose of opening and considering bids for, and awarding the sale of, $745,000 General Obligation Tax Increment Bonds of 1985, Series B, of the City. The following members were present: Mayor r.ggert, Councilmembers Lard, Ciernia, Chenoweth and Ealdwin and the following were absent: ivTone The Clerk-Treasurer presented affidavits showing • publication of notice of call for bids on $745,000 General Obligation Tax Increment Bonds of 1985, Series B, of the City, for whic'n bids were to be received at this meeting, in accordance with the resolution adopted by the City Council on November 13, 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 .. The Council then proceeded to consider and discuss the bids, after which member _ Piayor Eggert introduced • the following resolution and moved its adoption: R-85-68 RESOLUTION ACCEPTING BID ON SALE OF $745,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1985, SERIES B, PROVIDING FOR THEIR ISSUANCE ACED PLEDGING TAX INCREMENTS FOR THE SECURITY THEREOF WHEREAS: A. The City Council of the City of Falcon Heights has heretofore created Development District No. 1 (the "Development District") pursuant to the provisions of Minnesota Statutes, Chapter 472A, and has approved a development program (the "Program") with respect to the Development District; B. The Council has also approved a tax increment financing plan (the "Plan") and created Economic Development District No. 1-3 within the Development District (the "Tax Increment District") under the provisions of Minnesota Statutes, Sections 273.71 through 273.78; C. Pursuant to the provisions of the Program and the Plan, funds are to be expended within the Development District . for certain capital and administrative costs of the Development District, specifically costs of acquiring land and making certain public storm drainage and sewer improvements (hereinafter referred to as the "Project"); NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Falcon Heights, Minnesota, as follows: 1. Acceptance of Offer. The bid of t e Purchaser") to pure ase , General Obligation Tax Increment Bonds of 1985, Series B, of the City (hereinafter referred to as the "Bonds" or individually as a "Bond"), in accordance with the notice of bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ 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 bidder. The 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 d 2. Original Issue Date; Denominations; Maturity. The Bonds shall be titled 'General Obligation Tax Increment • Bonds of 1985, Series B", shall be dated December 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 of a single maturity. The Bonds shall mature on March 1 in the years and amounts as follows: Years Amounts 1990 $ 20,000 1991 75,000 1992 125,000 1993 150,000 1994 175,000 1995 200,000 3. Combination of Maturities. 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 Bonds of 1983, dated September 1, 1983, $600,000 General Obligation Tax Increment Bonds of 1984, Series B, dated November 1, 1984, and $1,300,000 General Obligation Tax Increment Bonds of 1985, dated June 1, 1985, as permitted by Minnesota Statutes, Section • 475.54, Subdivision 2. 4. Purpose. The Bonds shall provide funds to finance the Project. Pursuant to the Plan adopted by the City, tax increments derived from the Tax Increment District established pursuant to the Plan, have been pledged to the payment of the Bonds and interest thereon. The estimated collection of the tax increments exceeds 20$ of_ the cost of the Project. The 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 Bonds herein authorized. Mork on the Project shall proceed with due diligence to completion. 5. Interest. The Bonds shall bear interest payable semiannually on arc 1 and September 1 of each year commencing September 1, 1986, at the respective rates per annum set forth opposite the maturity years as follows: 3 • Maturity Years • 1990 1991 1992 1993 1994 1995 Interest Rates 6. Redemption. All Bonds of this issue maturing in the years 1994 and 1995 shall be subject to redemption and prepayment at the option of the City on March 1, 1993, and on any interest payment date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date 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 given to the paying agent and to each registered holder of the Bonds. To effect a partial redemption of Bonds having a com- mon maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity • 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, from the numbers so assigned to such 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 assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more 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 City or the Bond 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 (if necessary) and the Bond Registrar shall authenticate and deliver to the holder of such Bond, without service charge, a 4 • 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 aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 7. Bond Registrar. , in Minnesota, is appointed to act as bond registrar and transfer agent (the "Bond Registrar") and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond 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 Bonds in the manner set forth in the form of Bond and paragraph 13 of this resolution. 8. Form of Bond. 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: • • 5 UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF FALCON HEIGHTS R- _ $ GENERAL OBLIGATION TAX INCREMENT BOND OF 1985, SERIES B INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP December 1, 1985 REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY 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 thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 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 sum is paid or has been provided for. This Bond will bear interest from the most 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 in Minnesota 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 mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the 6 Issuer 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 (t'ne "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 payment 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 United States of America. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH 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 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 regular and due form, 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 C7 Date of Registration: n U BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATIOI~T This Bond is one of the Bonds described in the within mentioned Resolution. Bond Registrar By Authorized Signature Registrable by: Payable at: CITY OF FALCON HEIGHTS, RAMSEY COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile Clerk-Treasurer 8 ON REVERSE OF BOND All Bonds of this issue maturing in the years 1994 and 1995 are subject to redemption and prepayment at the option of the Issuer on March 1, 1993 and on any Interest Payment Date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date 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 given to the paying agent and to the Holders of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity 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, 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 assigned numbers so selected; provided, however, • that only so much of the principal amount of such Bond of a denomination of more 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 (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder 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 aggregate lrincipal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 9 • This Bond is one of an issue in the total principal amount of $745,000, all of like date of original issue and • tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on December 3, 1985 (the "Resolu- tion"), for the purpose of providing money to finance the payment of certain capital and administration costs within Development District L~To. 1. This Bond is payable out of the General Obligation Tax Increment Bonds of 1985, Series B, 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 Bonds of other denominations in equal aggregate principal amounts and in authorized denominations at the principal office of the Bond 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 Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. This Bond 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 Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regula- tions of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of 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 and any legal or unusual costs regarding transfers and lost Bonds. • 10 The Issuer and the Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (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 any purpose or be entitled to Certificate of Authentication by the Bond Registrar. be valid or 'oecome obligatory for any security unless the hereon shall have been executed The following abbreviations, when used in the inscription on the face of this Bond, 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 Cush- tdinor under Uniform Gifts to Minors Ac t State Additional abbreviations may also be used though not in the above list. • 11 ASSIGNMENT • For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature 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 information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) C: 12 9. Execution. The Bonds shall be executed on behalf of the City 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 Bonds 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 such 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. Authentication. 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. The 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 Bond 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 December 1, 1985. The executed Certificate of Authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 11. Registration; Transfer; Exchange. 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 Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, • 13 insert the date of registration of (as provided in paragraph 10) and deliver, in the name of the designated transferee or • transferees, one or more new Bonds of any authorized 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 Bonds 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 Bonds 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 Bonds surrendered for such exchange or transfer. Every Bond presented exchange shall be duly endorsed instrument of transfer, in form Registrar, duly executed by the duly authorized in writing. ~r surrendered for transfer or or be accompanied by a written satisfactory to the Bond holder thereof or his attorney 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 and any legal or unusual costs regarding transfers and lost Bonds. 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 Bond Registrar to close its transfer books between record dates and payment dates. 14 12. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in. exchange for or in lieu of any • other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 13. Interest Payment; Record Date. 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 Date"). 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 Date, 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 ten (10) days prior to the Special Record Date. 14. Treatment of Registered Owner. The City and the Bond Registrar may treat t'ne 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. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Clerk-Treasurer to the Purchaser upon receipt of the purc'nase price, and the Purchaser shall not be obliged to see to the proper application thereof. 16. Fund and Accounts. There is hereby created a special fund to be designated "General Obligation Tax Increment Bonds of 1985, Series B, Fund" (the "Fund") to be held and administered by the Clerk-Treasurer. The Fund shall be continued and maintained as a separate permanent account of the City 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 • 15 modifications or additions thereto) Fund, and t'ne interest thereon, have • shall be maintained in the Fund two designated the "Capital Account" and Account", respectively. and made payable from the been fully paid. There separate accounts, to be the "Debt Service (i) Capital Account. The proceeds of the sale of the Bonds herein authorized, less any accrued interest received thereon, and less any amount paid for the Bonds in excess of $733,825, and less capitalized interest in the amount of $137,450 (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, 1988), shall be credited to 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 and 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. (ii) Debt Service Account. 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 $733,825; (c) capitalized interest in the amount of $137,450 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before March 1, 1988); (d) collection of all of the tax increments (the "Tax Increments") to be received from the Tax Increment District for the payment of the principal of and the interest on the Bonds, subject to the right of the City to pledge or apply the Tax Increments to the payment of any ot'ner public costs of redevelopment of the Development District, as it may be from time to time modified, including debt service on any • 16 obligations issued or otherwise incurred with respect to such costs, whether or not such pledge • or application is made prior to, on a parity with or subordinate to the pledge and application of the Tax Increments to the payment of debt service on the Bonds; (e) any guaranty payments paid pursuant to the Development Agreement dated December _, 1985, between the City and Stratford Investments, Ltd. (the "Development Agreement"), but only to the extent such payments do not exceed twenty-five percent (25~) of the debt service on the Bonds in any calendar year or five percent (5$) of the cumulative debt service on the Bonds, all as more specifically provided in the Develop- ment Agreement; (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; (h) tax increments generated by other tax increment districts in the Development District, to the extent necessary to pay debt service on the Ronds and to the extent available for such purpose and consistent with covenants made in any resolutions governing bonds payable from the tax increments of • such other tax increment districts; and (i) all investment earnings on funds held in the Debt 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 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 17 • periods" made available under the federal arbitrage regula- tions. In addition, money in the Fund 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 (the "Code"). 17. Original Assessed Value; Tax Increments; Use of Tax Increments. 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, 1954. 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 tha 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 until 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 they may from time to time be amended. 18. Future Tax Levies. 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 18 23. Records and Certificates. 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 Bonds and to the fianncial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear frorn 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 City as to the facts recited therein. 24. Reservation of Rights. Notwithstanding any provisions herein to the contrary tyre City reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. 25. Negative Covenants as to Use of Project. The City hereby covenants not to use, or cause or permit to be used, the Project in such a manner as to cause the Bonds to be "consumer loan bonds," "industrial development bonds," or "mortgage subsidy bonds", as those terms are defined in Sections 103(0), 103(b) and 103A of the Code. • 26. Headings. Headings in this resolution are included for convenience of reference only, and are not a part hereof. The motion for the adoption of the foregoing resolution was duly seconded by member Bard and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Mayor Eggert, Councilmembers Hard, Ciernia, Chenoweth anal Baldwin. and the following voted against the same: None 'v4hereupon said resolution was declared duly passed and adopted. 20 • ' STATE OF MINNESOTA COUNTY OF RAMSEY • CITY OF FALCON 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 foregoing 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 minutes relate to opening and considering bids for, and awarding the sale of, $745,000 General Obligation Tax Increment Bonds of 1985, Series B, of • said City. WITNESS my hand and the seal of said City this ~_ day of December, 1985. l l =L- --z.--~' Clerk-Treasurer SEAL) 21 STATE OF MINNESOTA COUNTY OF RAMSEY COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION I, the undersigned, being the duly qualified and • acting County Auditor of Ramsey County, Minnesota, DO HEREBY CERTIFY that on the day of December, 1985, there was filed in my office a certified copy of a resolution adopted on December 3, 1985, by the City Council of the City of Falcon Heights of said County, authorizing the issuance of $745,000 General Obligation Tax Increment Bonds of 1985, Series B, of said City, together with full information regarding the obligations; and said obligations have been entered in my Bond Register. WITNESS my hand and the seal of the County Auditor this day of December, 1985. (SEAL) Lou McKenna County Auditor Deputy •