HomeMy WebLinkAbout1990-058 Council ResolutionExtract of Minutes of Meeting
of the City Council of the
City of Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City
Council of the City of Lino Lakes, Minnesota, was duly held in the City Hall in the
City of Lino Lakes on Monday, August 13, 1990, commencing at 6:30 P.M.
The following members were present: Neal, Kuether, Bisel, Reinert,
Bohjanen.
and the following were absent: None.
* * *
The Mayor announced that the next order of business was approval of the
terms of the Lino Lakes Economic Development Authority's $1,115,000 Public
Project Revenue Bonds, Series 1990A (City of Lino Lakes Installment Contract
Obligations).
Member Bohjanen introduced the following written resolution
and moved its adoption the reading of which had been dispensed with by unanimous
consent:
RESOLUTION NO. 58 - 90
A RESOLUTION APPROVING THE TERMS OF
$1,115,000 PUBLIC PROJECT REVENUE BONDS,
SERIES 1990A (CITY OF LINO LAKES INSTALLMENT
CONTRACT OBLIGATIONS) OF THE LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka
County, Minnesota (the "City") as follows:
Section 1. Terms of Bonds.
1.01. By action taken by its Board of Commissioners, the Lino Lakes
Economic Development Authority (the "Authority") has approved the issuance and
sale of its Public Project Revenue Bonds, Series 1990A (City of Lino Lakes
Installment Contract Obligations) (the "Bonds") in the principal amount of
$1,115,000 originally dated September 1, 1990, in the denomination of $5,000 each
or any integral multiple thereof, numbered No. R-1, upward, bearing interest at the
rates and maturing on February 1 of the years as follows:
Year Principal Interest
(February 1) Amount Rate
1995 $ 25,000
1996 25,000
1997 25,000
1998 40,000
1999 50,000
2000 50,000
2001 75,000
2002 75,000
2003 75,000
2004 75,000
2005 100,000
2006 100,000
2007 100,000
2008 100,000
2009 100,000
2010 100,000
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Section 2. Installment Purchase Contract Schedule of Payments.
2.01. Pursuant to the Installment Purchase Contract dated as of June 28,
1990 between the City and the Authority, the City has agreed to make payments at
the times and in the amounts necessary to pay debt service on the Authority's
Bonds. The schedule of payments is as follows:
Date Amount
[See attached]
2.02. The foregoing payments shall be made to
, Minnesota, as trustee for the Authority's Bonds.
Section 3. Tax Covenants.
3.01. For purposes of qualifying for the small issuer exception to the
federal arbitrage rebate requirements, the City hereby finds, determines and
declares that the aggregate face amount of all tax-exempt bonds (other than
private activity bonds) issued by the City (and all subordinate entities of the City)
during the calendar year in which the Bonds are issued and outstanding at one time
is not reasonably expected to exceed $5,000,000, all within the meaning of Section
148(f)(4)(C) of the Code. The City hereby allocates to the Authority a portion of
the City's $5,000,000 limitation under Section 148(f)(4)(C)(i)(IV) of the Internal
Revenue Code of 1986, as amended, in the amount of $1,115,000. This allocation is
irrevocable and binding upon the City. The project which is being undertaken by
the Authority with the proceeds of the Bonds is a project which confers benefits on
the City since it is a project which will be sold to and occupied by the City
pursuant to the Installment Purchase Contract.
3.02. The City covenants not to use the project or the proceeds of the
Bonds or to cause or permit them or any of them to be used, in such a manner as to
cause the Bonds to be "private activity bonds" within the meaning of Sections 103
and 141 through 150 of the Code.
3.03. In order to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the City makes the following
factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section 141
of the Code;
(b) the reasonably anticipated amount of tax-exempt obligations (other
than private activity bonds, treating qualified 501(c)(3) bonds as not being private
activity bonds) which will be issued by the City (and all subordinate entities of the
City) during calendar year 1990 will not exceed $10,000,000; and
(c) not more than $10,000,000 of obligations issued by the City (or
entities subordinate to the City) during calendar year 1990 have been designated
for purposes of Section 265(b)(3) of the Code.
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The motion for the adoption of the foregoing resolution was duly seconded
by Member Kuether
, and upon vote being taken thereon, the
following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen.
and the following voted against the same: none/
whereupon said resolution was declared duly passed and adopted.
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