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EXTRACT OF MINUTES OF A MEETING
<br />OF THE CITY COUNCIL
<br />CITY OF HUGO, MINNESOTA
<br />HELD: February 25, 2013
<br />Pursuant to due call and notice thereof, a regular or special meeting of the City Council
<br />of the City of Hugo, Washington County, Minnesota, was duly called and held at the City Hall
<br />on February 25, 2013, at 7:00 P.M., for the purpose, in part, of authorizing the issuance and
<br />awarding the sale of $5,835,000 General Obligation Refunding Bonds, Series 2013A.
<br />The following members were present: Bronk, Haas, Klein, Petryk, Weidt
<br />and the following were absent: None
<br />Member Petryk introduced the following resolution and moved its adoption:
<br />RESOLUTION 2013-5 ACCEPTING PROPOSAL ON THE SALE OF $5,835,000 GENERAL
<br />OBLIGATION REFUNDING BONDS, SERIES 2013A, AND LEVYING A TAX FOR THE
<br />PAYMENT THEREOF
<br />A. WHEREAS, the City Council of the City of Hugo, Minnesota (the "City"), hereby
<br />determines and declares that it is necessary and expedient to provide moneys for a crossover
<br />refunding of the City's (i) $2,560,000 original principal amount of General Obligation Capital
<br />Improvement Plan Bonds, Series 2004A, dated July 1, 2004 (the "Prior Capital Improvement
<br />Bonds"), which mature on and after February 1, 2016; and (ii) $7,920,000 original principal
<br />amount of General Obligation Tax Abatement Bonds, Series 2005A, dated May 1, 2005 (the
<br />"Prior Abatement Bonds", and together with the Prior Capital Improvement Bonds, the "Prior
<br />Bonds"); and
<br />B. WHEREAS, in connection with the Prior Abatement Bonds the City has
<br />heretofore established a tax abatement program (the "Program") pursuant to the provisions of
<br />Minnesota Statutes, Sections 469.1812 through 469.1815; and
<br />C. WHEREAS, in connection with the Program the City and Independent School
<br />District No. 624, White Bear Lake, Minnesota, (the "School District") have heretofore adopted
<br />resolutions (the "Abatement Resolutions"), providing for the abatement of property taxes for a
<br />period of fifteen years on various properties in the City, as described in the Abatement
<br />Resolutions and the property taxes to be abated are estimated to be at least equal to the principal
<br />amount of the Abatement Refunding Portion of the Bonds (as defined herein); and
<br />D. WHEREAS, the City has heretofore entered into a Joint Powers Agreement (the
<br />"Agreement") with the School District for the Prior Abatement Bonds for the purpose, in part, of
<br />determining the method for the School District to transfer to the City the School District's share
<br />of the property taxes payable in the years 2005 through 2019 derived from the increased market
<br />value resulting from development on the Tax Abatement Property (as defined in Exhibit A of the
<br />Agreement and in the Abatement Resolutions) (the "School District Abatements") which were
<br />pledged to the payment of the Prior Abatement Bonds and interest thereon together with the
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