Resolution 6659 - Laserfiche WebLink

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WHEREAS, the City Council of the City deems it desirable and in the best interests of the City to redeem bands maturing in the years 2007 through 2014, inclusive, totaling $2,300,000 in principal amount, on • January 1, 2006, in accordance with the Bond Resolution; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Mounds View, Minnesota, as follows: Section 1. Findin s. The City finds that the conditions for taking a remedial action under Section 1.141-12(a)(1) through (5) of the Regulations are met, for the following reasons: (a) The City reasonably expected on the date of issue of the Series 1994A Bonds that the Series 1994A Bonds would meet neither the private business test nor the private loan financing test for the entire term of the Series 1994A Bonds. (b) The term of the Series 1994A Bonds is not longer than reasonably necessary for the governmental purposes of that issue; specifically, the City finds that the weighted average maturity of the Series 1994A Bonds (15.1454 years) is not greater than 120 percent of the average expected economic life of the property financed with proceeds of the Series 1994A Bonds. (c) Medtronic paid fair market value for the Golf Course Property, as evidenced by the fact that the purchase price payable to the Authority in the Contract is at least equal to the appraised value of the Golf Course Property as determined by appraisals undertaken for both Medtronic and the City (taking into account allocations to the Golf Course Property in the case of the City appraisal, which includes additional property). (d) Proceeds from the conveyance of the Golf Course Property will be treated as gross proceeds of the Series 1994A Bonds, allocable to such bonds in proportion to the outstanding • principal amount of such bonds; no sources of funding other than proceeds of the Series 1994A Bonds were used to finance acquisition and betterment of the Golf Course. (e) The City will redeem the outstanding Series 1994A Bonds in accordance with Section 2 of this resolution, within 90 days after the date of closing under the Contract, which timely redemption constitutes a remedial action under Section 1.141-12(d) of the Regulations. Section 2. Redemption of Series 1994 Bonds. (a) The Series 1994A Bonds maturing in the years 2007 through 2014, inclusive, totaling $2,300,000 in principal amount shall be redeemed and prepaid on January 1, 2006, at par, plus accrued interest. (b) The bond registrar and paying agentfor the Series 1994A Bonds (U.S. Bank National Association, successor to Firstar Trust Company, (as agent for Firstar Bank, N.A.), successor to American Bank, National Association, formerly, American National Bank & Truk Company in St. Paul, Minnesota; hereafter the "Registrar"), is authorized and directed to give mailed notice of call for redemption of the outstanding maturities of the Series 1994A Bonds to all holders of the Series 1994A Bonds, such notice to be mailed at least 30 days prior to January 1, 2006 in substantially the form shown as Exhibit A. (c) The City Clerk-Administrator of the City is hereby authorized and directed to deposit with the Registrar prior to the call date of January 1, 2006, disposition proceeds from conveyance of the Golf Course Property in the amount sufficient to pay all principal and interest due on the Series 1994A Bonds as of the call date. Section 3. Further Proceedings. The City Clerk-Administrator is authorized and directed to take • all other actions necessary to carry out the intent of this resolution, including without limitation delivering to the SJB-268626v1 M1J205-30 2