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The portion of the Bonds ($1,145,000) being issued to finance the Tax Abatement Project
<br />is being issued pursuant to Minnesota Statutes, Chapters 475 and Section 469.1814 (the "Tax
<br />Abatement Bonds").
<br />The portion of the Bonds ($565,000) being issued to refinance the Street Reconstruction
<br />Project is being issued for the purpose described in Minnesota Statutes, Section 475.67,
<br />subdivision 3, section (b)(2)(i) and in compliance with Minnesota Statutes, Chapter 475 and
<br />Section 475.58, subdivision 3b (the "Street Reconstruction Bonds").
<br />The portion of the Bonds ($770,000) being issued to refinance the Improvement Project is
<br />being issued for the purpose described in Minnesota Statutes, Section 475.67, subdivision 3,
<br />section (b)(2)(i) and in compliance with Minnesota Statutes, Chapter 475 and Chapter 429 (the
<br />Improvement Bonds").
<br />Maturity schedules for each portion of the Bonds are attached hereto as Exhibit A.
<br />1.02. Sale. The City has retained Ehlers and Associates, Inc. ("Ehlers") as independent
<br />municipal advisor in connection with the sale of the Bonds. Pursuant to Minnesota Statutes,
<br />Section 475.60, subdivision 2, paragraph 9, the requirements as to a public sale do not apply to the
<br />issuance of the Bonds. Pursuant to the Preliminary Official Statement and Terms of Proposal
<br />prepared on behalf of the City by Ehlers, proposals for the purchase of the Bonds were received at
<br />or before the time specified for receipt of proposals. The proposals have been opened, publicly
<br />read and considered, and the purchase price, interest rates and net interest cost under the terms of
<br />each proposal have been determined. The most favorable proposal received is that of Northland
<br />Securities, Inc. of Minneapolis, Minnesota, and associates (the "Purchaser"). It is hereby
<br />determined to issue the Bonds at a purchase price of $2,694,730.72 (representing the principal
<br />amount of $2,480,000, plus an original issue premium of $225,915.25 less an underwriter's
<br />discount of $11,184.53) plus accrued interest, if any, and upon the further terms and conditions set
<br />forth herein.
<br />1.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor
<br />and City Manager are hereby authorized and directed on behalf of the City to execute a contract
<br />for the sale of the Bonds with the Purchaser in accordance with the Terms of Proposal. The good
<br />faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been
<br />delivered, and shall be deducted from the purchase price paid at settlement.
<br />SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY.
<br />2.01. Issuance of Bonds. All acts, conditions and things which are required by the
<br />Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed
<br />precedent to and in the valid issuance of the Bonds having been done, now existing, having
<br />happened and having been performed, it is now necessary for the Council to establish the form and
<br />terms of the Bonds, to provide security therefor and to issue the Bonds forthwith.
<br />2.02. Maturities; Interest Rates; Denominations and Payment. The Bonds shall be
<br />originally dated as of the date of issuance thereof, shall be in the denomination of $5,000 each, or
<br />any integral multiple thereof, of single maturities, shall mature on February 1 in the years and
<br />2
<br />4837-9618-831215
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