HomeMy WebLinkAboutRES 85-054 RESOLUTION RELATING TO $2,125,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985B; AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION THEREOF AND THE SECURITY THEREFOR AND LEVYING AD VALOREM TAXES FOR THE PAYMENT T Meeting Sheet
IIIIII VIII VIII VIII VIII VIII IIII IIII
102403
Box: 23
Folder: RES 1985
Document: RES 85-054 RESOLUTION RELATING TO $2,125,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 198513;
AWARDING THE SALE, FIXING THE FORM AND DETAILS, PROVIDING
FOR THE EXECUTION THEREOF AND THE SECURITY THEREFOR AND
LEVYING AD VALOREM TAXES FOR THE PAYMENT T
Ranallo introduced the following
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resolution and moved its adoption:
RESOLUTION NO. 85-054
RESOLUTION RELATING TO $2, 125 , 00-0 GENERAL
OBLIGATION TAX INCREMENT BONDS, SERIES
1985B; AWARDING THE SALE, FIXING THE FORM
AND DETAILS, PROVIDING FOR THE EXECUTION
THEREOF AND THE SECURITY THEREFOR AND
LEVYING AD VALOREM TAXES FOR THE PAYMENT
THEREOF
BE IT RESOLVED by the City Council of the City of St .
Anthony, Minnesota, as follows :
Section 1 . Recitals ; Authorization and Sale of Bonds .
1 . 01 . The Housing and Redevelopment Authority of
St . Anthony, Minnesota (the HRA) , has approved a redevelopment
plan, as defined in Minnesota Statutes , Section 462 . 421 ,
• subdivision 15 , designated as the Kenzie Terrace -Redevelopment
Plan (the Redevelopment Plan) , and a redevelopment project , as
defined in Minnesota Statutes , Section 462 . 421 , subdivision 13 ,
designated as the Kenzie Terrace Redevelopment Project (the
Project) to be undertaken by the HRA pursuant to the Plan . To
finance the costs to be incurred by the HRA in connection with
the Plan and the Project , the HRA has approved a tax increment
financing plan, pursuant to the provisions of Minnesota
Statutes , Section 273 . 74 (the Financing Plan) , which
established a tax increment financing district , as defined in
Minnesota Statutes , Section 273 . 73 , subdivision 9 (the
District) . After appropriate proceedings conducted pursuant to
Minnesota Statutes , Section 273 . 74 , 462 . 515 and 462 . 521 , this
Council approved the Redevelopment Plan, the Project and the
Financing Plan._
1 . 02 . The District is located in Hennepin County and
the HRA has requested the Director of Property Taxation of
Hennepin County to certify to it the assessed value of all
taxable property in the District as defined in Minnesota
Statutes , Section 273 . 73 , Subdivision 7 (the Original Assessed
Value) , and to certify to the City in each year the -captured
assessed value of the District , as defined in Minnesota
Statutes , Section 273 . 73 , Subdivision 4 (the Captured Assessed
Value) . The ad valorem taxes derived from the property in the
• District in each year , by application of the aggregate mill
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rate levied by all governmental entities having authority to
levy taxes on such property to the Captured. Assessed Value, is
the Tax Increment to be derived from the District (the Tax
Increment) .
1 . 03 . The HRA has determined to pay certain public
redevelopment costs in connection with the Project in
accordance with the Plan as follows :
Land Acquisition $1 , 650 , 000
Relocation 400 , 000
Demolition 90 , 000
Capitalized Interest 420 , 573
Administrative and Legal 34 , 000
Issuance Costs 30 , 000
Allowance for Discount Bidding 41 , 500
Subtotal $2 , 666, 073
Less : Land Sales (442, 400)
Interest Earnings (98 , 673)
Total $2 , 125 , 000
1 . 04 . The City has previously issued its General
Obligation Tax Increment Bonds, Series 1985A (the "Series 1985A
Bonds) , in the principal amount of $545 , 000 , pursuant to
Resolution 85-025 duly adopted on May 7 , 1985 (the Series 1985A
Bond Resolution) . $165 , 000 of the proceeds of the Series 1985A
Bonds were used to finance costs and expenses of the Project
and such portion of the Series 1985A Bonds are payable from tax
increment to be derieved from the District . Such portion of
the Series 1985A Bonds payable from the tax increment to be
derived from the District are herein referred to as the "Kenzie
Bonds" .
1 . 05 . This Council , under the authority of Minnesota
Statutes , Chapers 273 and 475 , and pursuant to a resolution
adopted on November 12 , 1985, has determined to issue and sell
$2, 125 , 000 General Obligation Tax Increment Bonds , Series 1985B
(the Bonds) , $41 , 500 of said issue representing interest as
provided in Minnesota Statutes , Section 475 . 56 , for the purpose
of providing funds for the payment of the public redevelopment
costs in connection with the Project . The Tax Increment
generated from the District will be segregated and pledged for
the payment of principal and interest on the Bonds under an
agreement between the HRA and the City pursuant to. Minnesota
Statutes, Section 273 . 77( a) . A public sale of the Bonds was
held on December 4 , 1985 , and this Council by resolution
adopted on that date, accepted the bid of Norwest Investment Services
• ( and associates] , of Minneapolis, MN to purchase the Bonds
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on the terms and conditions set forth in the Terms and
Conditions of Sale.
1 . 06 . All acts , conditions and things which are
required by the Constitution and laws of the State of Minnesota
to be done, to exist, to happen and to be performed precedent
to and in the valid issuance of the Bonds having been done,
existing, having happened and having been performed, it is now
necessary for this Council to establish the form and terms of
the Bonds , to provide security therefor and to issue the Bonds
forthwith.
1 . 07 . For the purpose of complying with the
provisions of Minnesota Statutes , Section 475. 54 , subdivision
7, by Resolution No . 85-047 the maturities of the Bonds have
been combined with the maturities of the Series 1985A. Bonds ,
and such combination of maturities is hereby ratified,
confirmed and affirmed by this Council .
Section 2 . Form of Bonds .
2 . 01 . Bond Form. The Bonds shall be prepared in
substantially the following form:
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[Face of the Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF RAMSEY AND HENNEPIN
CITY OF ST. ANTHONY
GENERAL OBLIGATION TAX INCREMENT BOND
SERIES 1985B
No . $
Date of
Rate Maturity Original Issue CUSIP
REGISTERED December 1 , 1985 SEE REVERSE
OWNER FOR CERTAIN
DEFINITIONS
PRINCIPAL DOLLARS
AMOUNT
THE CITY OF ST . ANTHONY, Ramsey and Hennepin Counties ,
Minnesota (the City) , acknowledges itself to be indebted and,
for value received, hereby promises to pay to the registered
owner named above, or registered assigns , the principal sum
specified above, on the maturity date specified above, with
interest thereon from the date hereof at the annual rate
specified above, payable on February 1 and August 1 in each
year , commencing August 1 , 1986 , to the person in whose name
this Bond is registered at the close of business on the 15th
day (whether or not a business day) of the immediately
preceding month, all subject to the provisions referred to
herein with respect to the redemption of the principal of this
Bond before maturity. The interest hereon and, upon
presentation and surrender hereof , the principal hereof and
premium, if any, hereon are payable in lawful money of the
United States of America by check or draft
of ,
in as Bond
Registrar , Transfer Agent and Paying Agent (the Bond
Registrar) , or its successor designated under the Resolution
described herein.
Additional provisions of this Bond are contained on
the reverse hereof and such provisions shall for all purposes
have the same effect as though fully set forth hereon.
• This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon shall
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have been executed by the Bond Registrar by manual signature of
one of its authorized representatives .
IN WITNESS WHEREOF, the City of St . Anthony, Ramsey
and Hennepin Counties, State of Minnesota, by its City Council ,
has caused this Bond to be executed by the facsimile signatures
of the Mayor and the City Manager and by a printed facsimile of
the official seal of the City and has caused this Bond to be
dated as of the date set forth below.
Dated:
(Facsimile Signature) (Facsimile Signature)
City Manager Mayor
(Facsimile Seal )
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the
Resolution mentioned within .
By
Authorized Representative
(Reverse of the Bonds]
This Bond is one of an issue in the aggregate
principal amount of $2 , 125 , 000 ( the Bonds) , issued pursuant to
a resolution adopted by the City Council on December 4 , 1985
(the Resolution) to finance the public redevelopment costs
incurred by the City in aid of a redevelopment project
undertaken in a tax increment financing district in the City,
and is issued pursuant to and in full conformity with the
provisions of the Constitution and laws. of the State of
Minnesota thereunto enabling, including Minnesota Statutes ,
Chapter 475 and Sections 462 . 585 and 273 . 77 . This Bond is
payable primarily from the "Series 1985B Tax Increment Bond
Account'' (the Bond Account) in the General Obligation Sinking
Fund of the City, but the City is required by law to pay
maturing principal hereof premium, if any, and interest hereon
from any available funds of the City if moneys on hand in the
• Bond Account are insufficient therefor . The Bonds are issuable
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only as fully registered bonds , in denominations of $5, 000 or
any multiple thereof , of single maturities .
The Bonds are each subject to redemption and
prepayment, at the option of the City and in inverse order of
maturities and by lot, assigned in proportion to their
principal amount, within any maturity, on August 1, 1987 and on
any interest payment date thereafter, at the redemption price
expressed as percentages of the principal amount thereof to be
redeemed as set forth in the table below, plus interest accrued
to the date. of redemption:
Redemption Date Redemption Price
August 1 , 1987 through August 1 , 1992 102%
February 1 , .1993 and thereafter 100%
.. At least thirty days prior to the date set for redemption of
any Bond, notice of the call for redemption will be published
in a daily or weekly periodical , published in a Minnesota city
of the first class or its metropolitan area, which circulates
throughout the state and furnishes financial news as a part of
its service, and will be mailed to the Bond Registrar and to
• the registered owner of each Bond to be redeemed at his address
appearing in the Bond Register , but no defect in or failure to
give such mailed notice of redemption shall affect the validity
of proceedings for the redemption of any Bond. Upon partial
redemption of any Bond, a new Bond or Bonds will be delivered
to the registered owner without charge, representing the
remaining principal amount outstanding .
As provided in the Resolution and subject to certain
limitations set forth therein, this Bond is transferable upon
the books of the City at the principal office of the Bond
Registrar , by the registered owner hereof in person or by his
attorney duly authorized in writing upon surrender hereof
together with a written instrument of transfer satisfactory to
the Bond Registrar, duly executed by the registered owner or
his attorney; and may also be surrendered in exchange for Bonds
of other authorized denominations . Upon such transfer or
exchange, the City will cause a new Bond or Bonds to be issued
in the name of the transferee or registered owner , of the same
aggregate principal amount , bearing interest at the same rate
and maturing on. the same date, subject to reimbursement for any
tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the
person in whose name this Bond is registered as the absolute
owner hereof , whether this Bond is overdue or not, for the
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purpose of receiving payment and for all other purposes , and
neither the City nor the Bond Registrar shall be affected by
any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by the
Constitution and laws of the State of Minnesota to 'be done, to
exist , to happen and to be performed precedent to and in the
issuance of this Bond in order to make it a valid and binding
general obligation of the City according to its terms have been
done, do exist, have happened and have been performed in
regular and due form as so required; that prior to the issuance
hereof , the City has pledged and appropriated tax increments to
be derived by the City from a tax increment financing district
in which the redevelopment project to be financed by the
proceeds of the Bonds are located to the Bond .Account ; that all
taxable property within the City is subject to the levy of a
direct, annual , ad valorem tax, which has been levied and is
required to be extended, assessed and collected for the years
and in such amounts as may be required to pay the principal ,
premium, if any, and interest on the Bonds when due, which levy
is not limited as to rate or amount ; and that the issuance of
this Bond does not cause the indebtedness of the City to exceed
any constitutional or statutory limitation.
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 the
applicable laws or regulations :
TEN COM -- as tenants UNIF GIFT MIN ACT . . . . .Custodian. . . . .
in common (Cust) (Minor)
TEN ENT -- as tenants
by the entireties
under Uniform Gifts to
JT TEN -- as joint tenants Minors
with right of
. survivorship and Act . . . . . . . . . . . . . . . . . . . . . .
not as tenants in (State)
common
Additional abbreviations may also be used.
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells ,
assigns and transfers unto ,
the within Bond and all rights thereunder , and hereby
irrevocably constitutes and appoints
attorney to transfer .the within Bond on the books kept for
registration thereof, with full power of substitution in the
premises .
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER NOTICE: The signature to this
OF ASSIGNEE: assignment must correspond with
the name as it appears upon the
face of the within 'Bond in every
particular , without alteration
or any change whatsoever .
Signature( s) must be guaranteed by a commercial bank
or trust company or by a brokerage firm having a membership in
one of the major stock exchanges .
• 2 . 02 . Form of Certificate . A certificate in
substantially the following form shall appear on the reverse
side of each Bond, following a copy of the text of the legal
opinion of Bond Counsel :
We certify that the above is a full , true and correct .
copy of the legal opinion rendered by Bond Counsel on the issue
of Bonds of the City of St . Anthony which includes the within
Bond, dated as of the date of delivery of and payment for the
Bonds .
(Facsimile signature) (Facsimile signature)
City Manager Mayor
Section 3 . Bond Terms , Execution and Delivery.
3 . 01 . Maturities , Interest Rates , Denominations ,
Payment . The City shall forthwith issue and deliver the Bonds ,
which shall be denominated "General Obligation Tax Increment
Bonds , Series 1985B" and shall be payable primarily from, the
Series 1985B Tax Increment Bond Account created in Section 4 . 02
hereof . The Bonds shall be issuable in the denomination of
$5 , 000 each or any integral multiple thereof , shall mature on
February 1 in the years and amounts set forth below., and Bonds
maturing in such years and amounts shall bear interest from
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date of issue until paid or duly called for redemption at the
rates per annum shown opposite such years and amounts as
follows :
Year Amount Rate Year Amount Rate
1989 $ 75 , 000 6 . 20% 1994 $300 , 000 7 . 20%
1990 -0- ---- 1995 325 , 000 7 . 40%
1991 75 , 000 6 . 60% 1996 3.50 , 000 7 . 60%
1992 150 , 000 6 . 80% 1997 375 , 000 7 , 80%
1993 275 , 000 7 . 00% 1998 200 , 000 8 . 00%
The Bonds shall be issuable only in fully registered form. The
interest thereon and, upon surrender of each Bond, the
principal amount thereof, shall be payable by check or draft
issued by the Registrar described herein.
3 . 02 . Dates ; Interest -Payment Dates . Each Bond shall
be dated as of the last interest payment date preceding the .
date of authentication to which interest on the Bond has been
paid or made available for payment , unless ( i) the date of
authentication is an interest payment date to which interest
has been paid or made available for payment , in which case such
. Bond shall be dated as of the date of authentication, or
( ii) the date of authentication is prior to August 1 , 1986 in
which case such Bond shall be dated as of December 1 , 1985 .
The interest on the Bonds shall be payable on February 1 and
August 1 in each year , commencing August 1 , 1986 , to the owner
of record thereof as of the close of business on the fifteenth
day of the immediately preceding month, whether or not such day
is a business day.
3 . 03 . Registration. The City shall appoint , and
shall maintain, a bond registrar , transfer agent and paying
agent (the Registrar) . The effect of registration and the
rights and duties of the City and the Registrar with respect
thereto shall be as follows :
(a) Register . The Registrar shall keep at its
principal corporate trust office a bond register in which
the Registrar shall provide for the registration of
ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred
or exchanged.
(b) Transfer of Bonds . ' Upon surrender for transfer
of any Bond duly endorsed by the registered owner thereof
or accompanied by a written instrument of transfer , in form
satisfactory to the Registrar , duly executed by the
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registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar shall
authenticate and deliver, in the name of the designated
transferee or transferees , one or more new Bonds of a like
aggregate principal amount and maturity, as requested by
the transferor . The Registrar may, however , close the
books for registration of any transfer after the fifteenth
day of the month preceding each interest payment date and
until such interest payment date.
(c) Exchange of Bonds . Whenever any Bond is
surrendered by the registered owner for exchange, the
Registrar shall authenticate and deliver one or more new
Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner ' s attorney
duly authorized in writing.
(d) Cancellation. All Bonds surrendered upon any
transfer or exchange shall be promptly cancelled by the
Registrar and thereafter disposed of as directed by the
City.
(e) Improper or Unauthorized Transfer . When any Bond
is presented to the Registrar for transfer , the Registrar
may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of
transfer is legally authorized. The Registrar shall incur
no liability for its refusal , in good faith, to make
transfers which it , in its judgment , deems improper or
unauthorized.
( f) Persons Deemed Owners . The City and the Registrar
may treat the person in whose name any Bond is at any time
registered in the bond register as the absolute owner of
such Bond, whether such Bond shall be overdue or not , for
the purpose of receiving payment of , or on account of , the
principal of and interest on such Bond and for all other
purposes , and all such payments so made to any such
registered owner or upon the owner ' s order shall be valid
and effectual to satisfy and discharge the liability of the
City upon such Bond to the extent of the sum or sums so
paid.
(g) Taxes , Fees and Charges . For every transfer or
exchange of Bonds , the Registrar may impose a .charge upon
the owner thereof sufficient to reimburse the Registrar for
any tax, fee or other governmental charge required to be
paid with respect to such transfer or exchange .
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(h) Mutilated, Lost , Stolen or Destroyed Bonds . In
case any Bond shall become mutilated or be lost , stolen or
destroyed, the Registrar shall deliver a new Bond of like
amount , number , maturity date and tenor in exchange and
substitution for and upon cancellation of any such
mutilated Bond or in lieu of and in substitution for any
such Bond lost , stolen or destroyed, upon the payment of
the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond lost ,
stolen or destroyed, upon filing with the Registrar of
evidence satisfactory to it that such Bond was lost , stolen
or destroyed, and of the ownership thereof , and upon
furnishing to the Registrar of an appropriate bond or
. indemnity in form, substance and amount satisfactory to it ,
in which. both the City and the Registrar shall be named as
obligees.. All Bonds so surrendered to the Registrar shall
be cande.11ed by it and evidence of such cancellation shall
be given to the City. If the mutilated, lost , stolen or
destroyed Bond has already matured or been called for
redemption in accordance with its terms , it shall not be
necessary to issue a new Bond prior to payment.
3 . 04 . Appointment of Initial Registrar . The City
• hereby appoints Norwest Bank Minneapolis N A , as
the initial Registrar . The Mayor and the City Manager are
authorized to execute and deliver , on behalf of the City, a
contract with Norwest Bank Minneapolis , N.A. , as
Registrar . Upon merger or consolidation of the Registrar with
another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business , such
corporation shall be authorized to act as successor Registrar .
The City agrees to pay the reasonable and customary charges of
the Registrar for the services performed. The City reserves
the right to remove any Registrar upon thirty (30 ) days ' notice
and upon the appointment of a successor Registrar , in which
event the predecessor Registrar shall deliver all cash and
Bonds in its possession to the successor Registrar and shall
deliver the bond register to the successor Registrar . On or
before each principal or interest due date, without further
order of this Council , the City Manager shall transmit to the
Registrar from the Series 1985B Tax Increment Bond Account
described in Section 4 . 02 hereof , moneys sufficient for the
payment of all principal and interest then due.
3 . 05 . Redemption. The Bonds shall each be subject to
redemption and prepayment at the option of the City, in
inverse order of maturities and, ' within any maturity, in $5 , 000
principal amounts selected by the Registrar by lot, on
August 1 , 1987 and on any interest payment date thereafter at a
• redemption price expressed as percentages of principal amount
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thereof to be redeemed set forth below, plus interest accrued
to the date of redemption:
Redemption Date Redemption Price
August 1 , 1987 through August 1 , 1992 102%
February 1 , 1993 and thereafter 1000
At least thirty days prior to the date set for redemption of
any Bond, the City Manager shall cause notice of the call for
redemption to be published in a daily or weekly periodical
published in a Minnesota city of the first class or its
metropolitan area, which circulates throughout the state and
furnishes financial news as a part of its service, and to be
mailed to the Registrar and to the registered owner of each
Bond to be redeemed, but no _defect in or failure to give such
mailed notice of 'redemption shall affect the validity of
proceedings for the redemption of any Bond not affected by such
defect or failure.
3 . 06 . Preparation and Delivery. The Bonds shall be
prepared under the direction of the City Manager and shall be
executed on behalf of the City by the signatures of the Mayor
and the City Manager , and shall be sealed with the official
• corporate seal of the City; provided that said signatures and
the corporate seal may be printed, engraved, or lithographed
facsimiles thereof . In case any officer whose signature, or a
facsimile of whose signature, shall appear on the Bonds shall
cease to be such officer before the delivery of any Bond, such
signature or facsimile shall nevertheless be valid and
sufficient for all purposes , the same as if such officer had
remained in office until delivery. Notwithstanding such
execution, no Bond shall be valid or obligatory for any purpose
or entitled to any security or benefit under this resolution
unless and until a certificate of authentication on such Bond
has been duly executed by the manual signature of an authorized
representative of the Registrar . Certificates of
authentication on different Bonds need not be signed by the
same representative. The executed certificate of authenti-
cation on each Bond shall be conclusive evidence that it has
been authenticated and delivered under this resolution. When
the Bonds have been so executed and authenticated, they shall
be delivered by the City Manager to the purchaser thereof upon
payment of the purchase price in accordance with the contract
of sale heretofore made and executed, and the purchaser shall
not be obligated to see to the application of the purchase
price.
3 . 07 . Application of Proceeds . The proceeds of the
• Bonds shall be applied as follows :
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( a) $420 , 573 of the proceeds of the Bonds , together
with the amount in excess of $2, 083 , 500 paid by the
purchaser of the Bonds shall be deposited in the Series
1985B Tax Increment Bond Account referred to in
Section 4 . 02 hereof; and
(b) $1 , 662 , 927 of the proceeds of the Bonds shall be
deposited in the Series 1985B Tax Increment Bonds Capital
Expenditures Fund referred to in Section 4 . 01 hereof-.
Section 4 . Security Provisions .
4 . 01 . Capital Expenditures Fund. There is hereby
established on the official books and records of the City a
''Series 1985B Tax Increment Bonds Capital Expenditures Fund"
(the Capital Expenditures Fund) and the City Treasurer shall
maintain the Capital Expenditures Fund until all costs and
expenses to be financed by the proceeds of the Bonds deposited
therein have been paid. There is appropriated to the Capital
Expenditures Fund, and to said Fund there shall be credited the
amounts specified in Section 3 . 07 hereof . From the Capital
Expenditures Fund there shall be paid all costs and expenses
incurred and to be incurred by the City and the HRA in aid of
the Project . After payment of all costs and expenses of the
• Project to be paid from. the Capital Expenditures Fund, said
Fund shall be discontinued and any amounts remaining therein
shall be transferred to the Series 1985B Tax Increment Bond
Account referred to in Section 4 . 02 hereof .
4 . 02 . Bond Sinking Fund. The Bonds shall be payable
from a "Series 1985B Tax Increment Bond Account" (the Bond
Account) , which Account the City agrees to establish and
maintain until all bonds payable therefrom have been paid in
full . The moneys on hand in the Bond Account from time to time
shall be used only to pay when due the principal of and
interest on the Bonds and any additional bonds issued pursuant
to Section 4 . 04 which are payable therefrom. If the moneys on
hand in the Bond Account should at any time be insufficient to
pay principal and interest due on the bonds payable therefrom,
such amounts shall be paid from the General Fund of the City,
which shall be reimbursed therefor when sufficient money
becomes available in the Account . There is appropriated to the
Bond Account, and to the Bond Account there shall be credited
or transferred as the case may be, the amounts specified in
Section 3 . 07( a) hereof , all amounts transferred therein
pursuant to Section 4 . 01 or 4 . 03 hereof , all taxes levied
pursuant to Section 4 . 05 hereof , and all other moneys
appropriated thereto .
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4 . 0 3 . Kenzie District Bond Subaccount . B the Series
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1985A Bond Resolution there was established on the official
books of the City a "Kenzie District Bond Subaccount" into
which shall be paid the Tax Increments from the District
appropriated and pledged by the HRA to the City to pay the
principal of and interest on the Kenzie Bonds there shall also
be paid from the Kenzie District Bond Subaccount the principal
of , premium, if any, and interest on the Bonds . On or before
each interest payment date with respect to the Bonds the City
Treasurer shall transfer to the Bond Account the amount
necessary to pay the principal of and interest on the Bonds
coming due on such interest payment date.
4 . 04 . Additional Bonds . The City reserves the right
to issue additional bonds payable from the Bond Account and/or-
the Kenzie District Bond Subaccount as may be required to
finance costs to be paid or incurred by the City in accordance
with the Plan not financed hereby; provided that the City
Council shall , prior to the delivery of such additional bonds ,
levy or agree to levy by resolution sufficient additional ad
valorem taxes and special assessments which, together with
other moneys or revenues pledged for the payment of said
additional obligations , will produce revenues at least five
percent in excess of the amount needed to pay when due the
principal and interest on all bonds payable from the Bond
Account . The additional ad valorem taxes , special assessments
and moneys or revenues so pledged, levied or agreed to be
levied shall. be irrevocably appropriated to the Bond Account in
the manner provided by Minnesota Statutes , Section 475 . 61 .
4 . 05 . Pledge of Taxing Powers . The full faith and
credit and taxing powers of the City are hereby irrevocably
pledged to the payment of the principal of , premium, if any,
and the interest on the Bonds when due. In order to provide
moneys for the payment of such principal and interest which,
together with the Tax Increments , Bond proceeds and other
moneys appropriated for the payment and security of the Bonds
in Section 4 , will meet the requirements of Minnesota Statutes ,
Section 475 . 61 , there is hereby levied upon all of the taxable
property in the City a direct , annual , ad valorem tax which
shall be spread upon the tax rolls for collection in the years
and amounts set forth below, as a part of other general taxes
of the City, as follows :
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Levy Collection Levy Collection
Year Year Amount Year Year Amount
1986 1987 -0- 1992 1993 -0-
1987 1988 -0- 1993 1994 -0-
1988 1989 -0- 1994 1995 -0-
1989 1990 -0- 1995 1996 -0-
1990 1991 -0- 1996 1997 -0-
1991 1992 -0-
Said tax shall be irrepealable as long as any of the Bonds are
outstanding and unpaid; provided that the City reserves the
right and power to reduce the levies in the manner and to the
extent permitted by Minnesota Statutes , Section 475 . 61 .
4 . 07 . Execution of Documents . The Mayor and City
Manager are hereby authorized to execute and deliver on behalf
of the City such documents as may be appropriate to evidence
the pledge and appropriation of the Tax Increments by the HRA
to the City to pay the Bonds .
Section 5 . Defeasance. When any Bond has been
discharged as provided in this section, all pledges , covenants
and other rights granted by this resolution to the holders of
such Bonds shall cease, and such Bonds shall no longer be
deemed to be outstanding under this Resolution. The City may
discharge its obligations with respect to any Bond thereto
which are due on any date by depositing with the paying agent
on or before that date a sum sufficient for the payment thereof
in full ; or , if any Bond should not be paid when due, it may
nevertheless be discharged by depositing with the paying agent
a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit . The City may also
discharge its obligations with respect to any prepayable Bond
according to its terms , by depositing with the paying agent on
or before that date an amount equal to the principal , interest
and redemption premium, if any, which are _then due, provided
that notice of such redemption has been duly given as provided
herein. The City may also at any time discharge its
obligations with respect to any Bonds , subject to the
provisions of law now or hereafter authorizing and regulating
such action, by depositing irrevocably in escrow, with a bank
qualified by law as an escrow agent for this purpose, . cash or
securities which are authorized by law to be so deposited,
bearing interest payable at such times and at such rates and
maturing on such dates as shall be required to pay all
principal , interest and redemption premiums to become due
thereon to maturity or said redemption date.
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• Section 6 . County Auditor Registration, Certification
of Proceedings, Investment of Moneys and Arbitrage.
6 . 01 . County Auditor Registration. The City Clerk is
hereby authorized and directed to file a certified copy of this
resolution with the County Auditor of Ramsey County and the
County Auditor of Hennepin County, together with such other
information as the respective County Auditors shall require,
and to obtain from said County Auditors a certificate that the
Bonds have been entered on his bond register and the taxes
described in Section 4 . 07 hereof have been levied as required
by law.
6 . 02 . Certification of Proceedings . The officers of
the City, the County Auditor of Ramsey County and the County
Auditor of Hennepin County are hereby"authorized and directed
to prepare and furnish to the purchaser of the Bonds and to
Dorsey & Whitney, Bond Counsel , certified copies of all
proceedings and records of the City, and such other affidavits ,
certificates and information as may be required to show the
facts relating to the legality and marketability of the Bonds
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
City as to the facts recited therein.
6 . 03 . Covenant . The City covenants and agrees with
the holders from time to time of the Bonds that it will not
take or permit to be taken by any of its officers, employees or
agents any action which would cause the interest. on the Bonds
to become subject to taxation under the Internal Revenue Code
of 1954 , as amended (the Code) , and the Treasury Regulations
promulgated thereunder (the Regulations) , and covenants to take
any and all actions within its powers to ensure that the
interest on the Bonds will not become subject to taxation under
the Code and the Regulations . In particular , the City
covenants that it shall not take any action or exercise any
remedies pursuant to any development agreement relating to the
District if the effect thereof would be, in the opinion of the
City' s bond counsel , to cause the Bonds to be considered
" industrial development bonds" or ''consumer loan bonds"
pursuant to the Code .
6 . 04 . Investment of Moneys on Deposit in Bond
Account . The City Treasurer shall ascertain monthly the amount
on deposit in the Bond Account . If the amount on deposit
therein ever exceeds by more than $318 , 750 (so long as any
Bonds are outstanding; when no Bonds are outstanding this
• amount shall be zero unless additional bonds have been issued
and made payable
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• from the Bond Account, as hereinafter provided) the aggregate
o g
amount of principal and interest due and payable from the Bond
Account within the next succeeding 12 months , such excess shall
be used to prepay and redeem Bonds or be invested at a yield
less than or equal to the yield on the Bonds , based upon their
amounts , maturities and interest rates on their date of issue,
computed by the actuarial method. If any additional bonds are
ever issued and made payable from the Bond Account pursuant to
Section 4 . 05 hereof , the dollar amount in the preceding
sentence shall be changed to equal 15 percent of the aggregate
original principal amount of all bonds , including the Bonds ,
which are then outstanding and payable therefrom. The City
reserves the right to amend the provisions of this Section 6 . 04
at any time, whether prior to or after the delivery of the
Bonds , if and to the extent that this Council determines that
the provisions of this Section 6 . 04 are not necessary in order
to ensure that the Bonds are not "arbitrage bonds" within the
meaning of Section 103(c) of the Code and Regulations .
6 . 05 . Arbitrage Certification. The Mayor and City
Manager , being the officers of the City charged with the
responsibility for issuing the Bonds pursuant to this
resolution, are authorized and directed to execute and deliver
to the purchaser thereof a certificate in accordance with the
• provisions of Section 103(c) of the . Code, and Sections
1 . 103-13 , 1 . 103-14 and 1 . 103-15 of the Regulations , stating the
facts , estimates and circumstances in existence on the date of
issue and delivery of the Bonds which make it reasonable to
expect that the proceeds of the Bonds will not be used in a
manner that would cause the Bonds to be arbitrage bonds within
the meaning of the Code and Regulations .
Mayor
Attest :
City Clerk
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The motion for the adoption of the foregoing
resolution was duly seconded by Member Marks and upon
vote being -taken thereon, the following voted in favor thereof :
All members
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted,
and was signed by the Mayor, whose signature was attested by
the City Clerk.
•
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