2001.08.20 RESO 2001-0042 - Laserfiche WebLink

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N WHEREAS, the City is an obligated person under the provisions of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934, as amended, and is therefore subject to continuing disclosure requirements under the Rule and accordingly, the City will enter into a Continuing Disclosure Agreement (the "Continuing Disclosure Agreement") with the Trustee; WHEREAS, unless an exception is available, bonds which are tax-exempt are subject to the federal arbitrage requirement of rebating earnings in excess of the bond yield on certain investments; WHEREAS, ordinarily bonds are subject to rebate if issued by a governmental unit that lacks general taxing powers, such as the Authority-, WHEREAS, if the Authority issues bonds on behalf of a governmental unit with general taxing powers, such as the City it will be treated as having general taxing powers if the bonds do not exceed the lesser of $5,000,000 or such amount of the . $5,000,000 small issuer limitation as a governmental unit with general taxing powers may allocate to the Authority; and WHEREAS, the City is a governmental unit with general taxing powers. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hugo, Minnesota, as follows: 1. Authorization of Bonds: Documents Presented. The Authority proposes to issue its Public Facility Lease Revenue Bonds, Series 2001 (City of Hugo, Minnesota Lease Obligation) (the "Bonds") payable from rental payments to be made by the City under the Lease as hereinafter described. The Bonds shall be in an aggregate principal amount of $1,870,000 (plus any amount representing original issue discount) and shall bear interest at the rates as are prescribed by the Indenture. Forms of the following documents (collectively, the "Bond Documents") relating to the Bonds and the Project have been submitted to the City Council and are now on file in the office of the Administrator: (a) the Ground Lease; (b) the Lease; and (c) the Continuing Disclosure Agreement. 2. _Auuroval and Execution of Bond Documents. The Mayor and the Administrator are hereby authorized and directed to execute, and deliver, on behalf of the City the Bond Documents in substantially the forms on file with the Administrator. All of the provisions of the Bond Documents when executed and delivered as authorized herein shall be deemed to be a part of this resolution as fully. and to the same extent as if incorporated herein and shall be in full force and effect from the date of execution and delivery thereof. 1299457vl 2