HomeMy WebLinkAbout2021.09.07 CC Packet
Meetings of the City Council are held in the Council Chambers. For those wishing to
speak but do not wish to attend can participate in the meeting virtually via ZOOM
pursuant to MN Statute Sec. 13D.021. The meeting ID and passcode are below. For more
information on virtual participation, visit https://www.ci.hugo.mn.us/participate.
Meeting ID: 863 5132 3952
Passcode: 239616
A. CALL TO ORDER
B. ROLL CALL
C. PLEDGE OF ALLEGIANCE
D. APPROVAL OF MINUTES
1. August 16, 2021, Council Meeting
2. August 19, 2021, Midyear Budget Workshop
E. APPROVAL OF THE AGENDA
F. APPOINTMENTS/PRESENTATIONS
1. None Scheduled
G. CONSENT AGENDA
All matters listed under the Consent Agenda are considered to be routine by the City Council
and will be enacted by one motion and a roll call vote. If a member of the City Council or
the public wishes to discuss an item, that item will be removed from the Consent Agenda and
will be considered separately.
1. Approve Claims Roster
2. Approve Performance Review for Building Official Joel Hoistad
3. Approve Appointment of Ross Hoernemann as new Training Captain on the Hugo Fire
Department
4. Approve Retirement of Jodie Guareschi from the Hugo Fire Department
5. Approve Resolution Setting Speed Limit on 125th Street
6. Approve Tax-Forfeited Property Located at 6317 165th Street North to be Sold at a
Public Auction.
7. Approve Resolution Approving Variance for Garage Setback for Luke Hanscom at
12096 Everton Avenue
8. Approve Pay Request No. 11 to Ebert Construction for New Public Works Facility
9. Approve Pay Request No. 3 to Ebert Construction for Public Works Salt and Material
Storage Building
10. Approve Pay Request No. 1 to Schreiber Mullaney Construction for Lions Park Pavilion
11. Approve Reduction in Letter of Credit for Adelaide Landing 6th Addition
Agenda
HUGO CITY COUNCIL MEETING
HUGO CITY HALL
TUESDAY, SEPTEMBER 7, 2021 – 7 P.M.
H. PUBLIC HEARING
1. None Scheduled
I. UNFINISHED BUSINESS
1. Approve Resolutions Declaring Costs to be Assessed and Setting Public Hearing for
the Downtown Improvement Project
2. Approve Resolution Providing for the Issuance and Sale of General Obligation Tax
Abatement Bonds
J. NEW BUSINESS
1. Authorization to Prepare the Feasibility Study for the 2022 Oneka Parkway
Improvement Project
K. VISITOR PRESENTATIONS
1. None Scheduled
L. COUNCIL PRESENTATIONS
1. None Scheduled
M. ADMINISTRATIVE PRESENTATIONS
1. Schedule Special Meeting for Monday, September 13, 2021, to Award the bid for the
121st Street/Acres of Bald Eagle Project
2. Fire Department Open House on Saturday, October 2, 2021
N. ADJOURNMENT
BACKGROUND MEMO FOR THE HUGO CITY COUNCIL MEETING
TUESDAY, SEPTEMBER 7, 2021
D.1 Approve Minutes for the August 16, 2021, Council Meeting
D.2 Approve Minutes for the August 19, 2021, Midyear Budget Workshop
Staff recommends Council approve the above meeting minutes as presented.
G.1 Approve Claims Roster
Staff recommends Council approve the Claims Roster as presented.
G.2. Approve Performance Review for Building Official Joel Hoistad
Joel Hoistad was hired on September 14, 2020, as the new building official to replace Chuck
Presiler when he retired in November 2020. Staff recommends Council approve the Annual
Performance Review for Building Official Joel Hoistad.
G.3 Approve Appointment of Ross Hoernemann as new Training Captain on the Hugo
Fire Department
The Hugo fire chiefs interviewed two interested firefighters for the training captain position and
have selected Ross Hoernemann to be the new training captain effective September, 1st 2021.
Ross will also continue to act as the department’s administrative captain and hold two positions
at least through the end of 2021. Staff recommends Council approve Ross Hoernemann as the
new training captian.
G.4 Approve Retirement of Jodie Guareschi from the Hugo Fire Department
In October 2001, Jodie was hired as a firefighter on the Hugo Fire Department. After 20 years,
Jodie has submitted her letter of retirement. Staff recommends Council approve the retirement
of Jodie Guareschi effective November 1, 2021.
G.5 Approve Resolution Setting Speed Limit on 125th Street
In May 2019, Minnesota State Legislature passed a bill granting cities the authority to set speed
limits under their jurisdiction. This statute went into effect August 1, 2019. Staff has received
multiple concerns related to the speeds on 125th Street and have reviewed the roadway. The
speed limit along 125th Street from Goodview Avenue to County Road 7 is currently not posted
and is therefore defaulted as a 55 MPH roadway. Staff has concluded that the roadway should be
posted. The action necessary to lower the speed limit would be to adopt the resolution
identifying the speed limit along 125th Street from Goodview Avenue to Hilo Avenue as 40
MPH, 125th Street from Hilo Avenue to County Road 7 as 30 MPH, with the curve between
Homestead and County Road 7 posted with 25 MPH advisory speed limit. The recommended
speed limits have been determined based on the vertical and horizontal geometrics of the existing
roadway. A speed limit adopted is not effective unless the road authority passes the resolution
and has erected signs designating the speed limit on which the speed limit applies. Staff
recommends approval of the resolution as outlined.
G.6 Approve Tax-Forfeited Property Located at 6317 165th Street North to be Sold at a
Public Auction.
Each year Washington County sends out a notification listing the tax-forfeited parcels in the
City. The City has received information that one property is in tax forfeiture. The property is
located at 6317 165th Street North. The County requests that the City review the property and
either approve the property to be sold at a public auction or conveyed to the City for an
authorized public use or public purpose. The adjacent property owners would be notified of the
public auction. The property includes a vacant home and Washington County has cleaned up the
property and cleaned out the home. Staff recommends the City Council approve the property to
be sold at a public auction.
G.7 Approve Resolution Approving Variance for Garage Setback for Luke Hanscom at
12096 Everton Avenue
The Board of Zoning reviewed the variance request submitted by Luke Hanscom for property
located at 12096 Everton Avenue North. The variance request is to allow a front yard building
setback of 25 feet, where 30 feet is required by ordinance. The Board of Zoning reviewed the
request at their August 26, 2021 meeting and held a public hearing. No one spoke at the public
hearing. The Board of Zoning found that the applicant meet the conditions necessary for
approval and recommended approval of the variance request to allow a front yard building
setback of 25 feet, where 30 feet is required by ordinance for property located at 12096 Everton
Avenue North.
G.8 Approve Pay Request No. 11 to Ebert Construction for New Public Works Facility
Ebert Construction has submitted a pay request for work completed to date on the Public Works
Facility. The quantities completed to date have been agreed upon by the architect, contractor and
City staff. Staff recommends the City Council approve Pay Request No. 11 in the amount of
$393,604.75 to Ebert Construction for the work completed at the City of Hugo Public Works
facility.
G.9 Approve Pay Request No. 3 to Ebert Construction for Public Works Salt and Material
Storage Building
Ebert Construction has submitted a pay request for work completed to date on the Salt and
Materials Storage buildings. The quantities completed to date have been agreed upon by the
architect, contractor and City staff. Staff recommends the City Council approve Pay Request
No.3 in the amount of $234,982.12 to Ebert Construction for the work completed at the City of
Hugo Public Works facility salt and materials building.
G.10 Approve Pay Request No.1 to Schreiber Mullaney Construction for Lions Park
Pavilion
Schreiber Mullaney has submitted Pay Request No. 1 for the new Pavilion in Lions Park in the
amount of $40,836.82. The quantities completed to date have been reviewed and agreed upon by
the architect, contractor and city staff. The amount indicated above reflects the work certified
through August 31, 2021 with a 5% retainage applied. The total retainage being held to date will
be $2,149.31. Staff recommends Council approve payment request #1 in the amount of
$40,836.82 to Schreiber Mullaney Construction for the construction of the City of Hugo Lions
Park Pavilion.
G.11 Approve Reduction in Letter of Credit for Adelaide Landing 6th Addition
Adelaide Landing 6th Addition has had significant work completed to date and The Excelsior
Group is requesting a reduction in the letter of credit. The current letter of credit for the 6th
Addition is in the amount of $1,854,238. Staff has inspected the work completed to date and
recommends Council approve the reduction in the letter of credit to $1,029,737 based on the
value of work remaining to be completed.
I.1 Approve Resolutions Declaring Costs to be Assessed and Setting Public Hearing for the
Downtown Improvement Project
Staff has prepared two resolutions for Council consideration in accordance with the requirement
of state statutes Chapter 429 for assessments to benefitting properties. The first resolution is a
resolution declaring the costs to be assessed and ordering the preparation of the proposed
assessment roll for the 2021 Downtown Improvement Project. The second resolution is a
resolution calling the hearing on assessments for the 2021 Downtown Improvement Project.
Staff is requesting that the assessment hearing for the 2021 Downtown Improvement Project be
set for October 4th, 2021. The total project cost is $3,240,800 with $259,639.75 to be assessed.
Construction will continue through the fall of 2021. Staff recommends Council approve both
resolutions.
I.2 Approve Resolution Providing for the Issuance and Sale of General Obligation Tax
Abatement Bonds
At the August 2, 2021 City Council meeting, Council adopted a Resolution Providing for the
Competitive Negotiated Sale of $8,380,000 General Obligation Tax Abatement Bonds, Series
2021A. The bonds are being issued to finance the Lions Park improvement project and related
improvements. Bids for the sale of the bonds will be accepted until 11:00am on Tuesday,
September 7, 2021. The principal amount of the bond and debt service schedule will not be
finalized until after the sale takes place. A preliminary Resolution Accepting Offer on the Sale
of $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A, Providing for Their
Issuance and Pledging Tax Abatements and Levying a Tax for the Security and Payment Thereof
has been drafted and is subject to change after the bids are tabulated. The final resolution will be
prepared based on the bids received and will be presented to the City Council at the meeting.
Paul Steinman with Baker Tilly will present the bid tabulation to the City Council, along with a
recommendation for awarding the sale.
J.1 Authorization to Prepare the Feasibility Study for the 2022 Oneka Parkway
Improvement Project
Staff has worked to develop a 5-year Capital Improvement Plan for roadway infrastructure which
was approved in 2020 by the City Council as part of the City’s overall 5-year Capital
Improvement Plan. Next year’s improvement project is identified as the 2022 Oneka Parkway
Improvement Project and includes mill and overlay improvements along Oneka Parkway from
Frenchman Road (CSAH 8) to 149th Street N and full street reconstruction along Oneka
Parkway from 149th Street N to Heritage Parkway (see attached project location map). Staff
would like to confirm the improvements as outlined in the 5-year Capital Improvement Plan
remains the City’s next priority. Staff is requesting authorization to prepare the feasibility study
for the 2022 Street Improvement project.
M.1 Schedule Special Meeting for Monday, September 13, 2021, to Award the Bid for the 121st
Street/Acres of Bald Eagle Project
Bids for the 121st Street and Acres of Bald Eagle Improvement Project will be opened at 10 a.m.
on October 9, 2021. Due to timing, staff would like to schedule a special meeting to accept the
bids and award the project. Staff recommends Council schedule a special meeting for Monday
September 13, 2021, at 5 p.m., if Council is available, for the award of bid for the 121st St/Acres
of Bald Eagle Improvement Project.
M.2 Fire Department Open House on Saturday, October 2, 2021
The Hugo Fire Department will hold their open house on Saturday, October 2, 2021, from 11a.m.-3
p.m. at the Hugo Fire Hall. Staff recommends Council schedule a meeting if they choose to attend the
open house.
M. Adjournment
Call to Order
Mayor Weidt called the meeting to order at 7:00 p.m.
COUNCIL PRESENT: Klein, Miron, Petryk, Strub, Weidt
OTHERS PRESENT: City Administrator Bryan Bear, City Engineer Mark Erichson, City Clerk
Michele Lindau
Approval of Minutes for the August 3, 2021, Council Meeting
Klein made motion, Strub seconded, to approve the minutes for the City Council meeting held
on August 3, 2021, as presented.
All Ayes. Motion carried.
Approval of Agenda
Weidt made motion, Klein seconded, to approve the agenda as presented.
All Ayes. Motion carried.
Approval of Consent Agenda
Klein made motion, Petryk seconded, to approve the following Consent Agenda:
1. Approve Claims Roster
2. Approve Annual Performance Review for Public Works Worker Matt Klein
3. Approve Amendment to Community Development Block Grant Agreement
4. Approve Special Event Permit for Tents Sales/Oktoberfest at the Hugo Legion on
October 2, 2021
5. Approve Special Event Permit for Private Fireworks Display at 6421 165th Street
6. Approve Common Interest Agreement Between Hugo and Other Cities Impacted by the
White Bear Lake Water Level Litigation
7. Approve Purchase of Bunge Property at 14696 Fondant Avenue North
8. Approve Agreement between Washington Conservation District and Members of
EMWREP-Lower St. Croix Water Education Program
9. Approve Purchase of Cutting Wheel Skid Steer Attachment for the Public Works Department
10. Approve Pay Request No.1 to Peterson Companies for the 2021 Downtown
Improvement/Lions Park Project
11. Approve Reduction in Cash Escrow for Hugo Gardens
12. Approve Resolution Restricting Parking Along Portions of Generation Avenue
All Ayes. Motion carried.
Minutes
HUGO CITY COUNCIL MEETING
HUGO CITY HALL
MONDAY, AUGUST 16, 2021 – 7 P.M.
Hugo City Council Meeting Minutes for August 16, 2021
Page 2 of 5
Approve Claims Roster
Adoption of the Consent Agenda approved the Claims Roster as presented.
Approve Annual Performance Review for Public Works Worker Matt Klein
Public Works Worker Matt Klein was hired by the City of Hugo on August 27, 2012. Adoption
of the Consent Agenda approved the Annual Performance Review for Public Works Worker
Matt Klein.
Approve Amendment to Community Development Block Grant Agreement
In 2000, the City of Hugo became a part of the Community Development Block Grant Program.
Participation in this program entitled Washington County to receive funds from the U.S.
Department of Housing and Urban Development (HUD) for programs that benefit low and
moderate income residents, including housing and housing rehabilitation, public infrastructure,
and economic development. Only communities that had signed an agreement were eligible to
receive funds. HUD had updated verbiage on language that needed to be included to comply
with HUD’s guidance on civil rights. The amendment to this agreement did not changed the
regulations. Adoption of the Consent Agenda approved the amendment to the Community
Development Block Grant Agreement.
Approve Special Event Permit for Tents Sales/Oktoberfest at the Hugo Legion on October
2, 2021
The Hugo American Legion had applied for a Special Event Permit to hold a craft show and
Oktoberfest on Saturday, October 2, 2021. A Special Event Permit approved by Council was
necessary because alcohol would be sold outdoors, more than 200 people may attend, it would
extend after dark, and there would be amplified music. Vendors would be open from 9 a.m. to 2
p.m., and there would be music and a bean bag tournament until 7 p.m. Alcohol would be
served outside in a confined area. The Legion had worked out details with neighboring
properties for parking. The event had been held in the past with no problems staff was aware of.
Adoption of the Consent Agenda approved the Special Event Permit for the Hugo Legion for
their tent sales/Oktoberfest Event subject to the conditions in the staff memo.
Approve Special Event Permit for Private Fireworks Display at 6421 165th Street
Spencer Grundhofer, Grundhofers Old Fashion Meats, had hired Spark1 INC to display
fireworks at a private birthday party to be held at 6421 165th Street North on August 28, 2021.
A special event permit approved by Council was required because it would be after dark and
there would be sound heard off the property. Jesse Ahlman from Spark1 INC, had applied for a
special event permit to hold the fireworks display. The Hugo Fire Department required all
firework displays to have standby firefighters and equipment. Adoption of the Consent Agenda
approved the Special Event Permit for a fireworks display at 6421 165th Street on August 28,
2021.
Hugo City Council Meeting Minutes for August 16, 2021
Page 3 of 5
Approve Common Interest Agreement Between Hugo and Other Cities Impacted by the
White Bear Lake Water Level Litigation
As a result of the White Bear Lake water level litigation, the Court ordered the DNR to place
additional restrictions on Hugo's municipal groundwater pumping as well as those permits held
by numerous other cities in the east metro. The cities involved wished to have the opportunity
to share resources and data, and to do that it was necessary that they signed some type of joint
defense agreement. A joint defense agreement was an agreement whereby litigants agreed to
share certain information without waiving the privileges that would normally be waived if that
information were shared with others. Accordingly, the cities had collectively put together a
Common Interest Agreement that allowed the cities to share information relating to the lawsuit
without waiving the attorney-client or work product privileges. Adoption of the Consent
Agenda approved the Common Interest Agreement between Hugo and other cities impacted by
the White Bear Lake Water Level Litigation.
Approve Purchase of Bunge Property at 14696 Fondant Avenue North
The City had been purchasing property in the downtown area from willing sellers since 1999 for
economic development purposes as a way to facilitate redevelopment in the downtown area.
Staff was notified by the property owner at 14696 Fondant Avenue North that they were
planning on moving and selling their house. This property, if purchased, would make all of the
property the City owns in this area contiguous. Staff worked on an offer and presented it to the
seller, which was accepted. Staff had signed the purchase agreement contingent on City Council
approval. Adoption of the Consent Agenda approved the purchase agreement for the property
located at 14696 Fondant Avenue North with a purchase price of $480,000.
Approve Agreement between Washington Conservation District and Members of
EMWREP-Lower St. Croix Water Education Program
In March, 2016, Council first approved membership to the East Metro Water Resource
Education Program (EMWREP) as part of the SWPPP educational component. This was an
agreement between Washington Conservation District and Members of the EMWREP with
common objective to educate citizens about water resource, stormwater, and groundwater
management. This partnership allowed the City to more efficiently deliver water resource
education and meet the MS4 permit education requirement. This agreement was renewed for
another three years in January, 2019, and would expire in January, 2022. Adoption of the
Consent Agenda approved the agreement between Washington Conservation District and
members of the EMWREP in the annual amount of $2865.26 for another three years.
Approve Purchase of Cutting Wheel Skid Steer Attachment for the Public Works
Department
In 2006, the City purchased a Bobcat Wheel Saw/Planer to assist in the cutting and milling of
asphalt patches. After 15 seasons in service, it was near the end of its useful life, and staff
wanted to replace it with a Caterpillar SW345 Wheel Saw. A quote from Ziegler Cat had been
reviewed with the Finance Department, and money was included in the 2021 budget to cover
this purchase. This piece of equipment would be purchased using the Sourcewell Cooperative
Contract #032119-CAT, which was equivalent to the Mn/DOT Cooperative Purchasing Venture
Hugo City Council Meeting Minutes for August 16, 2021
Page 4 of 5
(CPV) assuring that the City of Hugo would receive the best price available while providing the
necessary options to choose from. Adoption of the Consent Agenda approved the purchase of
an asphalt wheel saw in the amount of $23,206.
Approve Pay Request No.1 to Peterson Companies for the 2021 Downtown
Improvement/Lions Park Project
Peterson Companies, Inc. had submitted Pay Voucher No. 1 in the amount of $290,945.85 for
work certified through July 31, 2021, on the 2021 Downtown Improvement/Lions Park Project.
The building demo had been completed and grading work had begun in Lions Park as well as
construction of the 147th Street connection to Oneka Parkway. Adoption of the Consent Agenda
approved payment to Peterson Companies, Inc. in the amount of $290,945.85.
Approve Reduction in Cash Escrow for Hugo Gardens
The Hugo Gardens Project had grading and utility work completed to date, and the Hugo
Garden Apartments, LLC was requesting a reduction in the cash escrow. The current amount of
cash escrow for the Hugo Gardens Project was in the amount of $1,651,778. Staff had inspected
the work completed to date and recommended approval. Adoption of the Consent Agenda
approved the reduction in cash escrow to $1,376,798 based on the value of work remaining to
be completed.
Approve Resolution Restricting Parking Along Portions of Generation Avenue
Staff had recently received concerns from residents along Generation Avenue North between
Oneka Lake Boulevard North and 150th Street North that the road was too narrow to allow for
parking on both sides of the roadway while still allowing traffic in both directions. Emergency
access and pedestrian concerns were also raised. Generation Avenue was currently 30-feet wide
as measured from back-of-curb to back-of-curb. Based on MnDOT design guidelines for
roadways with on street parking, the existing road width would allow for parking on one side of
the road while still maintaining traffic in both directions. Adoption of the Consent Agenda
approved RESOLUTION 2021-55 RESTRICTING PARKING ALONG THE EAST SIDE OF
GENERATION AVENUE NORTH FROM ONEKA LAKE BOULEVARD NORTH TO 150TH
STREET NORTH.
Review Draft Short Term Rental Ordinance and Adequate Public Facilities Ordinance
and Authorize Public Hearings at the Planning Commission
City Administrator Bryan Bear explained in July, the City Council authorized staff to draft an
ordinance that would prohibit short term rentals. Bear explained short term rental was defined as
renting a dwelling for fewer than 30 consecutive days, and the ordinance would prohibit them.
Staff was also proposing to make changes to the Adequate Public Facilities Ordinance to clarify
what developments it applied to. There would be no substantive changes to this ordinance. Bear
requested Council authorize staff to hold public hearings at the Planning Commission on both
these ordinances.
Hugo City Council Meeting Minutes for August 16, 2021
Page 5 of 5
Miron made motion, Strub seconded, to authorize staff to hold public hearings at the Planning
Commission on Short Term Rental and Adequate Public Facility Ordinances.
All Ayes. Motion carried.
Midyear Budget Workshop on Thursday, August 19, 2021
City Administrator Bryan Bear reminded Council the Midyear Budget review was scheduled for
Thursday, August 19, 2021, at 5 p.m. in the Council Chambers.
Hugo Good Neighbors Food Shelf Volunteer Appreciation Dinner on Sunday, October 3,
2021
City Administrator Bryan Bear informed Council the Hugo Good Neighbors Food Shelf had
invited them to their Volunteer Appreciation Dinner on Sunday, October 3, 2021 at 5 p.m. at the
Hugo American Legion. No action was taken.
Schedule 15th Annual Bus Tour for Saturday, October 9, 2021
For the past 14 years, excluding 2020 due to COVID, the City held a bus tour for Council,
commission members, legislators, school board members, and interested residents. City
Administrator Bryan Bear recommended Council schedule this year’s Annual Bus Tour for
Saturday, October 9, 2021, beginning at 10 a.m.
Klein made motion, Petryk seconded, to schedule the annual bus tour for Saturday, October 9,
2021.
All Ayes. Motion carried.
Adjournment
Klein made motion, Miron seconded, to adjourn at 7:07 p.m.
All Ayes. Motion carried.
Respectfully Submitted,
Michele Lindau, City Clerk
Mayor Weidt called the meeting to order at 5:00 p.m.
PRESENT REMOTELY: Klein, Miron, Petryk, Strub Weidt
ABSENT: None
STAFF PRESENT REMOTELY FROM CITY HALL: City Administrator Bryan Bear, Interim
Finance Director Anna Wobse, Community Development Director Rachel Juba
Interim Finance Director Anna Wobse began by talking about American Rescue Plan funds
saying the City was expected to receive approximately $1.6 million, and a workshop would be
scheduled in the future to discuss the best use of these funds.
Wobse explained the City had been using the same contingency budgeting technique for the past
30 years, which usually assured the budget would be balanced or there would be a surplus.
Without any unforeseen events, it was estimated there would be a surplus of $300,000 that would
to go into the Stormwater Fund. This was in addition to the $200,000 budgeted for tax rate
stabilization. She talked about the long-standing preference to keep a flat urban tax rate. For
2020, taxable market value increased 7.2%, which equated to 8% increase in tax capacity. To
keep the flat tax rate, the levy for 2022 could not exceed $9,757,096.
She reviewed the seven components of the levy beginning with debt service. There were two
outstanding bond issues: the Improvement Bond of 2011 and the Public Works Facility Bond of
2020. The City would soon be taking bids on a $8.38 million tax abatement bond to fund Lions
Park. Outstanding bonds would then total $16.715 million, or $1,058 per capita. The average for
bonded debt is $1,876 per capita.
Wobse reviewed the five non-general fund tax levies equaling $1,792,430, and she provided an
explanation of each, which included the Fire Relief Pension Fiscal Policy that was adopted nine
years ago. Next she explained the largest portion of the proposed tax levy, the general fund
budget, which included personnel. There were 25 full-time employees and a vacant finance
director and planner position. She talked about future adjustments to the Public Works structure
that would divide the department into streets, parks, and utilities. Also included in the budget was
a new administrative intern position that would work on communications and facility rentals. She
had compared the City’s salary matrix to 19 other metro cities of the same population that showed
Hugo pay grade minimums and maximums were 4% less than the average. The proposed budget
included pay grade adjustments for the public works director and community development
director and step increases for eleven employees as well as a 4.5% cost of living adjustment
(COLA) for a total cost to the general fund of $249,119. She explained the general fund also
included funds to continue the retention program for firefighters and increased salaries for the fire
chief, deputy chief, assistant chief, and fire marshal positions. Health insurance premiums
increased by only 3.33% compared to 21% three years ago, and deductibles increased by $400 for
single contracts and $800 for family contracts. The total 2022 general fund was up $919,552 due
to employee related costs, insurance for new Public Works facility and Lions Park pavilion, and
increases to the youth diversion programs. The fund also contained $200,000 for tax stabilization.
Minutes
HUGO CITY COUNCIL MEETING
MIDYEAR BUDGET WORKSHOP
TUESDAY, AUGUST 19, 2021 – 5 P.M.
Hugo City Council Meeting Minutes for 15, 2020, Midyear Budget Review
Page 2 of 2
Wobse explained revenues were conservatively budgeted by leaving permit fee revenues
equivalent to 50 housing starts and eliminating investment earnings. Room rentals were also
budgeted conservatively.
She stated the proposed tax levy of $9,757,096 would not increase the tax rate. Fiscal disparities
distribution amounts had not been released but staff estimated it would increase 10.26%. Fiscal
disparities pay for almost 10% of the total tax levy. The median value home increased 6.83%,
and keeping the flat tax rate on that home would increase the tax by $84.80.
Council asked questions on funding for maintenance of buildings, audit of COVID dollar
expenditures, and the needs of the Sheriff’s Department and Fire Department.
Staff replied the building maintenance fund was created a while ago and had a healthy balance.
The first round of COVID dollars had been audited, and it was good. For the ARP funds, there
would be a workshop scheduled, and the City may want to allocate money for projects already in
motion. The money budgeted for the Sheriff’s Department was sufficient for 2022, but there may
be a need to add another deputy in 2023. The goal of the Fire Department was to create a staffing
plan and have a workshop with Council. There would likely be a 2023 budget item.
Council agreed to stay with a flat tax rate and directed staff to prepare a resolution certifying the
tax levy for approval at their September 20, 2021, Council meeting.
Adjournment
The meeting adjourned at 5:30 p.m.
Respectfully Submitted,
Michele Lindau
City Clerk
City of Hugo Claims
September 7, 2021 G. 1
Vendor Invoice Amount Description Department
Able Concrete Raising Inc 6110 950.00$ Concrete Repairs - City Hall Gen Gov't Bldgs
Able Concrete Raising Inc 6111 450.00$ Concrete Repairs - Well House No. 6 Water Utility
Alex Air Apparatus Inc INV-44421 106.66$ Gear Clean Laundry Soap Fire Dept
Allstream 17667945 103.53$ Fax Lines Administration
Al's Fan Balancing Services LLC 5290 360.00$ Motor Balancing - Well No. 6 Water Utility
Ancom Communications 103319 1,183.75$ Impres Multi Unit Charger Fire Dept
Applewood Nursery 4453 413.16$ Mulch - CSAH 8 Landscaping Street Dept
Applewood Nursery 4454 413.16$ Mulch - CSAH 8 Landscaping Street Dept
Applewood Nursery 4476 447.59$ Mulch - CSAH 8 Landscaping Street Dept
Aspen Mills 277836 904.15$ HFD Shirts & Vests Fire Dept
Aspen Mills 278277 269.50$ EMS Jumpsuit Fire Dept
Aspen Mills 278310 97.70$ HFD Sweatshirts Fire Dept
B & B Commercial Coating LLC 1005 20,400.00$ Fire Hydrant Painting (200) Water Utility
B & B Commercial Coating LLC 1006 16,932.00$ Fire Hydrant Painting (166) Water Utility
Bieniek, Bob CLAIM 25.71$ Disinfectant (Menards) Fire Dept
Brock White Company LLC 14867213-00 36.52$ Tuck-Pointing Materials (CH) Gen Gov't Bldgs
Brock White Company LLC 14874921-00 756.50$ Paint - Victor Gardens Bridge (Vandalism Repairs) Street Dept
Bronk & Sons Low Voltage Inc BASLV 4914 360.00$ Tech Support - City Hall Alarm System Monitoring Gen Gov't Bldgs
Busch Systems International Inc IN21-004976 551.07$ Mixed Recyclables & Waste Bins - PW Public Works
Busch Systems International Inc IN21-004976 551.07$ Mixed Recyclables & Waste Bins - FH Fire Dept
Busch Systems International Inc IN21-004976 313.50$ Mixed Recyclables & Waste Bins - CH Gen Gov't Bldgs
Canteen Refreshment Services MSP30436 146.70$ Breakroom Supplies Gen Gov't Bldgs
Canteen Refreshment Services MSP30437 135.48$ Breakroom Supplies Public Works
Century Link 651 426-8763 69.70$ 911 Emergency Line Administration
Century Link 651 429-3212 72.35$ Fire Station Phone Lines Fire Dept
Century Link 651 653-1154 64.70$ SCADA Lines Water & Sewer
Christianson, Paul CLAIM 111.50$ Lodging - MN Rural Water Assn Conference Water & Sewer
Christianson, Paul CLAIM 32.18$ Cell Phone Accessories (Walmart) Street Dept
Cintas Corporation 5068211973 143.98$ First Aid Supplies Gen Gov't Bldgs
Cintas Corporation 5068211973 207.10$ First Aid Supplies Public Works
Cintas Corporation 5071402625 174.25$ First Aid Supplies Gen Gov't Bldgs
Cintas Corporation 5071402625 197.32$ First Aid Supplies Public Works
City of Roseville 230200 7,172.51$ July Computer Service Various
City of Roseville 230273 7,172.51$ August Computer Service Various
Comcast 8/5/2021 2.25$ Business Internet (thru September 14) Fire Dept
Comcast 8/12/2021 25.17$ Business Cable (thru September 21) Administration
Comcast 8/18/2021 154.67$ Business Internet (thru September 27) Fire Dept
Comcast 127925199 503.11$ Business Internet (August) Administration
Comcast 127925199 503.11$ Business Internet (August) Public Works
Companion Animal Control LLC July 609.25$ Callout Fees & Mileage Animal Control
Compton Jr, Jim CLAIM 40.79$ Cell Phone Accessories (Target) Fire Dept
Core & Main LP P273562 1,614.27$ Hydrant Repair Parts Water Utility
Core & Main LP P476813 907.40$ Hydrant & Gate Valve Repair Parts Water Utility
Cornerstone Occupational Health Spec. LOEFFL0000 50.00$ Personnel Testing Street Dept
Cornerstone Occupational Health Spec. SMITH(0025 50.00$ Personnel Testing Water & Sewer
Custom Fire Apparatus Inc 0020635-IN 919.24$ Parts - Unit #E1 Fire Dept
Custom Fire Apparatus Inc 0020672-IN 141.55$ Parts - Unit #E1 Fire Dept
De Lage Landen Financial Services Inc 73356860 311.37$ August Copier Lease Payment Administration
Denaway, Shayla CLAIM 200.00$ MRPA Conference Registration Parks Dept
Earl F. Andersen 0127297-IN 1,039.55$ Maintenance Crew & Road Work Ahead Signs Street Dept
Filter Recycling Services LLC adj6445 70.00$ Used Oil Filters Pick Up Public Works
Finance & Commerce Inc 745144562 258.31$ Ad for Bids - 121st Street Imps/Acres of Bald Eagle Street Reconstruction
Fire Instruction Rescue Education 5150 600.00$ Officer Leadership Training (Part 2) Fire Dept
Forest Lake Napa July 326.94$ Auto Parts and Shop Supplies Various
Forest Lake YMCA 61119 2,500.00$ Park Play Days Parks Dept
Frattallone's Hardware Stores 146871 8.99$ Irrigation Hardware - FH Fire Dept
Frattallone's Hardware Stores 146871 5.48$ Irrigation Hardware Parks Dept
Gene's Disposal Service Inc 419029 1,045.71$ July Waste Hauling - PW Facility Public Works
Gene's Disposal Service Inc 419029 195.38$ July Waste Hauling - Fire Station Fire Dept
Gene's Disposal Service Inc 419029 91.91$ July Waste Hauling - City Hall Gen Gov't Bldgs
Gene's Disposal Service Inc 419029 386.08$ Dumpster Rental - Lions Park Imps Special Parks Fund
Gopher State One Call 1070479 612.90$ July Service Charges Water & Sewer
Grainger 9026611393 13.03$ Parts - Unit #E1 Fire Dept
Hawkins Inc 5005067 4,378.54$ Water Chemicals Water Utility
HCM Architects 2066-9 9,756.27$ Lions Park Architect Services Special Parks Fund
Hisdahl Inc 17283 112.00$ HFD Shirts & Logo Digitizing Fire Dept
Holiday Companies 114500003 26.54$ Fuel Street Dept
Holiday Companies 153628004 36.87$ Fuel Street Dept
Holiday Companies 204518008 24.08$ Fuel Fire Dept
Page 1
City of Hugo Claims
September 7, 2021 G. 1
Vendor Invoice Amount Description Department
Hugo Equipment Company 170137 476.94$ Husqvarna Hedge Trimmer - Unit #445-B Parks Dept
Hugo Equipment Company 169816 89.99$ Parts - Unit #445-A Parks Dept
Hugo Equipment Company 167528 83.71$ Parts - Unit #462 Parks Dept
Hugo Feed Mill 111358 6.36$ No Trespassing Signs Parks Dept
Hugo Feed Mill 59730 33.43$ Painting Supplies (Vandalism Repairs) Street Dept
Hugo Feed Mill 111557 29.96$ Paint & Hardware (Vandalism Repairs) Parks Dept
Hugo Feed Mill 111728 185.00$ Straw for House Burn Fire Dept
Hugo Feed Mill 59952 29.47$ Painting Supplies (Vandalism Repairs) Street Dept
Innovative Office Solutions LLC IN3435465 179.99$ Toner Cartridges Finance Dept
Innovative Office Solutions LLC IN3449733 126.36$ Copy Paper Administration
Innovative Office Solutions LLC IN3449733 82.01$ Folders & Adding Machine Ribbon Administration
Innovative Office Solutions LLC IN3449733 58.07$ Trash Can Liners Gen Gov't Bldgs
Innovative Office Solutions LLC IN3449733 55.69$ Cardstock & Markers Building Inspections
Innovative Office Solutions LLC IN3451178 22.92$ Breakroom Supplies Public Works
Innovative Office Solutions LLC IN3451178 19.77$ Folders & Key Tags Public Works
Innovative Office Solutions LLC IN3452046 92.22$ Toner Cartridges Water & Sewer
Innovative Office Solutions LLC IN3453600 58.55$ Breakroom Supplies Public Works
Innovative Office Solutions LLC SCN-107689 (25.89)$ Breakroom Supplies (Returned) Gen Gov't Bldgs
Instrumental Research Inc 3534 100.00$ Water Bacteria Testing Water Utility
Interstate Battery System of Minneapolis 110052123 349.85$ Batteries Public Works
Johnson Controls Fire Protection LP 88035298 650.00$ Alarm Tech Service Gen Gov't Bldgs
Johnson/Turner July 4,829.00$ Prosecution Fees (Flat Fee) General Legal
Johnson/Turner July 294.95$ Disbursements (Prosecution Costs) General Legal
Johnson/Turner July 3,729.00$ Civil Legal Fees - See Attached Breakdown General Legal
Kath Fuel Oil Service Co. 12320094 6,214.16$ July Unleaded Gas & Diesel Purchases Various
Kieffer, Rick CLAIM 111.50$ Lodging - MN Rural Water Assn Conference Water & Sewer
Knife Lake Concrete Inc 99.21.02.01 48,400.00$ 2021 Misc Concrete Work Street Dept
Knife Lake Concrete Inc 99.21.02.01 3,829.50$ Concrete Work - Beaver Ponds (Play Equip. Relocation)Special Parks Fund
Knife Lake Concrete Inc 99.21.02.02 2,640.00$ Curbing for Catch Basin Repairs Stormwater Fund
Knowlan's Super Markets Inc 1159 32.97$ Supplies for Live Burn Fire Dept
Knowlan's Super Markets Inc 9343 27.15$ Meeting Supplies Parks Dept
Laughlin's Pest Control 45910 85.00$ August Pest Control Service (CH) Gen Gov't Bldgs
Lawson Products 9308668067 88.47$ Bulk Hardware Supplies Public Works
Lawson Products 9308731761 640.02$ Bulk Hardware Supplies Public Works
Lawson Products 9308735510 835.46$ Bulk Hardware Supplies Public Works
Lawson Products 9308735511 38.30$ Bulk Hardware Supplies Public Works
Lawson Products 9308738020 95.44$ Bulk Hardware Supplies Public Works
Lawson Products 9308742143 308.90$ Bulk Hardware Supplies Public Works
Lawson Products 9308745692 356.58$ Bulk Hardware Supplies Public Works
Lindus Construction 8/5/2021 510.00$ Gutter System - Well House No. 6 (1/3 down) Water Utility
Loeffler, Mike CLAIM 42.95$ Vice Cover - Unit #107-20 Water & Sewer
Loffler Companies Inc 3787540 253.80$ August Copier Service Payment Administration
Marco INV8990206 44.68$ August Copier Maintenance Building Inspections
Menards 68101 119.99$ Mailbox Repairs Street Dept
Menards 68511 320.60$ Lumber & Rebar - Training Platform Materials Fire Dept
Menards 68511 26.99$ Landscaping Supplies - FH Fire Dept
Menards 69057 35.94$ Lumber - Hopkins School House Gen Gov't Bldgs
Minnesota Cleaning Services Inc 0921HH01 605.00$ August Cleaning Service Gen Gov't Bldgs
Minnesota Cleaning Services Inc 0921HH03 500.00$ August Cleaning Service Public Works
Minnesota Cleaning Services Inc 0921HH03 450.00$ August Cleaning Service Fire Dept
Minnesota Cleaning Services Inc 0921HH02 100.00$ August Cleaning Service - Hanifl Parks Dept
Minnesota Rural Water Association Registration 275.00$ Conference Registration - Paul Christianson Water & Sewer
Minnesota State Fire Chiefs Association 2715 300.00$ 2021 Conference Registration - Jim Compton Jr Fire Dept
Minnesota State Fire Chiefs Association 2724 300.00$ 2021 Conference Registration - Ross Hoernemann Fire Dept
Minnesota State Fire Chiefs Association 2753 300.00$ 2021 Conference Registration - Dave Jensen Fire Dept
Minnesota State Fire Chiefs Association 2755 300.00$ 2021 Conference Registration - Brian Kindelberger Fire Dept
Minnesota State Fire Chiefs Association 2756 300.00$ 2021 Conference Registration - Colin Emans Fire Dept
Minnesota State Fire Chiefs Association 2762 300.00$ 2021 Conference Registration - Doug Millard Fire Dept
MN Fall Expo Registration 300.00$ 2021 Fall Maintenance Expo (10) Public Works
Municipal Code Corporation 361592 577.54$ Supplement Pages City Clerk
NAC Mechanical Corp A3446-01 11,912.00$ Make-Up Air Unit - HFD Apparatus Bay (1/2) Fire Dept
New Studio Architecture LLC 06-28-0258 4,700.15$ Hopkins Schoolhouse Conditions Assessment Historical Commission
Northern Door Company 69343 366.95$ Garage Door Repairs Public Works
Oertel Architects 20-01.15 7,128.80$ Public Works Facility Public Works
Olsen Chain & Cable Inc 668860 342.85$ Annual Hoist Inspection Public Works
Olson's Sewer Service Inc 95691 4,043.50$ Watermain Repairs - 140th & Flay Water Utility
Olson's Sewer Service Inc 95749 2,663.75$ Watermain Repairs - Freeland Water Utility
O'Reilly Auto Parts 5914-172378 22.05$ Parts - Unit #103 Parks Dept
Oxygen Service Company 3499739 54.56$ Welding Supplies Public Works
Page 2
City of Hugo Claims
September 7, 2021 G. 1
Vendor Invoice Amount Description Department
Premier Lighting Inc 59026 79.95$ Ballasts Fire Dept
Premier Lighting Inc 59072 89.97$ Emergency Lighting Public Works
Press Publications 711415 48.40$ Ordinance 2021-505 Ordinances/Proceedings
Press Publications 711417 54.45$ Local Board of Appeals Public Hearing Ordinances/Proceedings
Press Publications 711419 72.60$ Ordinance 2021-506 Ordinances/Proceedings
Press Publications 712737 66.55$ Planning Commission Public Hearing Notice Ordinances/Proceedings
Rehbeins Black Dirt 11756 300.00$ Black Dirt Parks Dept
Rehbeins Black Dirt 11756 450.00$ Black Dirt - Arcand Park Special Parks Fund
Ricoh USA, Inc 105270763 194.61$ September Copier Lease Payment Public Works
Safe-Fast Inc INV249001 39.30$ Shop Tools Public Works
Sam's Club 73004 262.03$ Fire Department Supplies Fire Dept
Schifsky (T.A.) & Sons Inc 67544 100.50$ Asphalt Street Dept
Schifsky (T.A.) & Sons Inc 67572 444.88$ Asphalt Street Dept
Schifsky (T.A.) & Sons Inc 67607 1,597.54$ Asphalt Street Dept
Schwaab Inc 6206771 23.94$ Plan Review Stamp Building Dept
Signature Lighting Inc 1267 217.00$ Streetlight Repairs Street Dept
SiteOne Landscape Supply LLC 111760392-001 216.46$ Herbicide Parks Dept
SiteOne Landscape Supply LLC 111940650-001 204.87$ Herbicide - CSAH 8 Street Dept
SiteOne Landscape Supply LLC 111940650-001 67.00$ Irrigation Hardware - FH Fire Dept
SiteOne Landscape Supply LLC 111964442-001 610.96$ Irrigation Hardware - Arcand Park Special Parks Fund
SiteOne Landscape Supply LLC 111964442-001 250.68$ Fertilizer - CSAH 8 Street Dept
SiteOne Landscape Supply LLC 111964442-001 106.20$ Poly Pipe - New PW Facility Irrigation Public Works
SiteOne Landscape Supply LLC 111964442-001 98.70$ Irrigation Hardware Parks Dept
Snap-On Industrial ARV / 49145468 116.84$ Shop Tools Public Works
Sun Life Financial September 1,024.16$ Disability Premium Finance Dept
Synchrony Bank 26BLEHVKPZQ 10.49$ Pest Control Supplies Parks Dept
Tablet Command INV-0487 3,150.00$ Tablet Command Annual Licenses (7) Fire Dept
T-Mobile 870254054 977.73$ Cellular Phone Charges Various
Toshiba Financial Services 5016395342 175.23$ September Copier Lease Payment Fire Dept
Toshiba Financial Services 5016395342 2.62$ Overage Charges (B & W) Fire Dept
Toshiba Financial Services 5016395342 15.50$ Overage Charges (Color) Fire Dept
TruGreen 144291955 239.00$ Grub Control - Public Works Public Works
UniFirst Corporation 090 0640469 161.16$ Uniform, Supplies & Floor Mat Services (PW) Public Works
UniFirst Corporation 090 0641858 199.22$ Uniform, Supplies & Floor Mat Services (PW) Public Works
UniFirst Corporation 090 0643228 14.08$ Supplies & Floor Mat Services (CH) Gen Gov't Bldgs
UniFirst Corporation 090 0643229 139.52$ Supplies & Floor Mat Services (FH) Fire Dept
UniFirst Corporation 090 0643230 173.70$ Uniform, Supplies & Floor Mat Services (PW) Public Works
UniFirst Corporation 090 0644628 135.30$ Uniform, Supplies & Floor Mat Services (PW) Public Works
Verizon Wireless 9885557357 1,165.38$ Cellular Phone Charges Various
Wellens Agronomics LLC 6860 1,500.00$ Reseed & Fertilize - Arcand Park Special Parks Fund
WSB & Associates June 86,151.75$ Engineering Fees - See Attached Breakdown Various
Xcel Energy 51-0013009096-8 125.21$ Water Tower No. 4 Electric Water Utility
Xcel Energy 51-0013297123-1 11.97$ Public Works Natural Gas Service Public Works
Xcel Energy 51-0013297123-1 26.78$ Public Works Natural Gas Service Public Works
Xcel Energy 51-0013297123-1 26.78$ Public Works Natural Gas Service Public Works
Ziegler Inc IN000192744 24,760.00$ Skidsteer Trade-Up - Unit #327 Street Dept
Ziegler Inc IN000194321 5,125.00$ Motor Grader Rental - Graveling Project Street Dept
Ziegler Inc IN000198393 357.52$ Parts - Unit #316 Stormwater Fund
Ziegler Inc IN000200767 141.34$ Parts - Unit #340 Street Dept
Ziegler Inc IN000211919 55.86$ Parts - Unit #327 Street Dept
Ziegler Inc IMP000097954 8,658.49$ Repairs - Unit #326 Street Dept
341,541.73$ Total Claims for September 7, 2021
Page 3
H;/clients all/hugo/city engineer/125th street speed limit 178 E 9TH STREET | SUITE 200 | SAINT PAUL, MN | 55101 | 651.286.8450 | WSBENG.COM September 1, 2021
Honorable Mayor and City Council
City of Hugo
14669 Fitzgerald Avenue North
Hugo MN, 55038
Re: Speed Limit – 125th Street
WSB Project No. 017062-000
Dear Mayor and Council:
In May 2019, Minnesota State Legislature passed a bill granting cities the authority to set speed
limits under their jurisdiction. This statute went into effect August 1, 2019. The purpose of this
memo is to provide the City Council with background information on the speed limit rules and to
provide information on what next steps they would need to follow to implement new speed limits
on local streets in the City of Hugo.
Following the 2019 legislation change a local road authority may reduce the speed
limit on streets under their jurisdiction without an engineering investigation for the following
conditions (County and state roads are not included in this authority):
A city may establish speed limits for city streets under the city's jurisdiction other than the
limits provided in subdivision 2 of Minnesota Statute 169.14. A city must implement
speed limit changes in a consistent and understandable manner. A city must develop
procedures to set speed limits based on the city's safety, engineering, and traffic
analysis. At a minimum, the safety, engineering, and traffic analysis must consider
national urban speed limit guidance and studies, local traffic crashes, and methods to
effectively communicate the change to the public.
The current City of Hugo policy addressing speed limit related concerns is based upon
guidelines from Minnesota Statutes, Minnesota Department of Transportation (MnDOT) policies,
Minnesota Manual on Uniform Traffic Control Devices (MnMUTCD), and engineering judgement.
The speed limit along 125th Street from Goodview Avenue to County Road 7 is currently not
posted and is therefore defaulted as a 55 MPH roadway. The action necessary to lower the
speed limit would be to adopt the resolution identifying the speed limit along 125th Street from
Goodview Avenue to Hilo Avenue as 40 MPH, 125th Street from Hilo Avenue to County Road 7 as
30 MPH, with the curve between Homestead and County Road 7 posted with 25 MPH advisory
speed limit. The recommended speed limits have been determined based on the vertical and
horizontal geometrics of the existing roadway.
A speed limit adopted is not effective unless the road authority passes the resolution and has
erected signs designating the speed limit on which the speed limit applies.
Honorable Mayor and City Council
September 1, 2021
Page 2
H;/clients all/hugo/city engineer/125th street speed limit
If you have any questions or items you wish to discuss, you can contact me at 651-286-8463.
Sincerely,
WSB
Mark Erichson, PE
City Engineer
Attachment
cc: Bryan Bear, City Administrator, City of Hugo
Scott Anderson, Public Works Director, City of Hugo
Liz Finnegan, Senior Engineering Technician, City of Hugo
S:\Office_SHARED\Resolutions\2021 Resolutions\2021- 125th Speed Limit.doc
RESOLUTION NO. 2021 -
RESOLUTION SETTING SPEED LIMIT ALONG
125TH STREET FROM GOODVIEW AVENUE TO COUNTY ROAD 7
WHEREAS, the speed limit along 125th Street from Goodview Avenue to County Road 7 is
currently not posted; and
WHEREAS, the current City of Hugo policy addressing speed limit related concerns is based
upon guidelines from Minnesota Statutes, Minnesota Department of Transportation (MnDOT)
policies, Minnesota Manual on Uniform Traffic Control Devices (MnMUTCD), and engineering
judgement; and
WHEREAS, Minnesota State Statute 169.14 subdivision 5 allows cities to establish speed limits
outside of the statutory guidelines outlined in Minnesota State Statute 169.14 subdivision 2
without an engineering investigation as long as, at a minimum, the safety, engineering, and
traffic analysis considers national urban speed limit guidance and studies, local traffic crashes,
and methods to effectively communicate the change to the public; and
WHEREAS, Staff has reviewed the existing horizontal and vertical geometrics of the roadway
and has recommended the following speed limits along 125th Street:
40 MPH along 125th Street from Goodview Avenue to Hilo Avenue
30 MPH along 125th Street from Hilo Avenue County Road 7
25 MPH advisory speed limit for the curve located between Homestead Avenue and
County Road 7
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota,
as follows:
1. The City of Hugo shall adopt the following speed limits along 125th Street from
Goodview Avenue to 122nd Street:
40 MPH along 125th Street from Goodview Avenue to Hilo Avenue
30 MPH along 125th Street from Hilo Avenue to County Road 7
25 MPH advisory speed limit for the curve located between Homestead
Avenue and County Road 7
S:\Office_SHARED\Resolutions\2021 Resolutions\2021- 125th Speed Limit.doc
Upon roll call, the following members voting AYE:
Upon roll call, the following members voting NAY:
Whereupon said resolution was declared passed and adopted this 7th day of September, 2021.
________________________________
Tom Weidt, Mayor
ATTEST:
_____________________________________
Michele Lindau, City Clerk
165th Street North
6317 165th Street North
Location MapHugo, MN
Site
Roads
Hugo Border
Parcel Boundary
¯0 50Feet1 in = 50 feet Document Path: S:\Mapping\Emily\LocationSite Maps\2021\6317 165th St.mxdSite
G.6
Agenda Number: G.7
CITY OF HUGO
PLANNING AND ZONING
APPLICATION STAFF REPORT
TO: Bryan Bear, City Administrator
FROM: Emily Weber, Community Development Assistant
SUBJECT: Luke Hanscom, 12096 Everton Avenue North – Variance request to allow a
front yard building setback of 25 feet, where 30 feet is required by ordinance.
DATE: September 2, 2021, for the City Council meeting of September 7, 2021
ZONING: Single Family Detached Residential (R-3)
LAND USE: Large Lot Single-Family Residential District (R-1)
60-DAY REVIEW DEADLINE: October 4, 2021
1. PLANNING COMMISSION UPDATE:
The Board of Zoning reviewed the request at their August 26, 2021 regularly scheduled meeting.
The Board Members generally agreed that the variance request was reasonable and the applicant
meets the conditions necessary to approve a variance request. The Board held a public hearing
and no one spoke. The Board of Zoning recommends approval of the of the variance request
from Luke Hanscom to allow a front yard building setback of 25 feet, where 30 feet is required
by ordinance, at property located at 12096 Everton Avenue North.
2. DESCRIPTION OF REQUEST:
The applicant is requesting a variance from the front yard building setback to allow an addition
to be added to the existing garage on site. The applicant is proposing a 25 foot front yard
building setback, where 30 feet is required by ordinance. The existing garage currently sits at
23.4 feet from the front yard lot line.
3. CONTEXT:
A. Surrounding Land Use and Zoning
All surrounding properties are zoned as R-1 and guided as Very Low Density in the 2040
Comprehensive Land Use Plan.
Hanscom Variance Request
12096 Everton Avenue North
B. Natural Characteristics of Site
The property is 0.47 acres and is along Bald Eagle Lake. The property falls within the Shoreland
Overlay District, which requires a building setback of 100 feet from the Ordinary High Water
(OHW) level of Bald Eagle Lake. The OHW level of Bald Eagle Lake is at 910.64 feet and the
proposed garage addition is located 107.3 feet from the OHW level, meeting the ordinance
requirements.
4. ANALYSIS:
Staff used these standards to review the request and finds that it meets the standards as follows:
(1) Law. The variance as requested is permissible by law.
The proposed variance is permissible by law.
(2) Practical Difficulties. The applicant for a variance shall establish that there are practical
difficulties in complying with the provisions of the zoning regulations. The term “Practical
Difficulties” as used in the granting of a variance means:
a. Reasonable Use. The property owner proposes to use the property in a reasonable
manner not permitted by the zoning ordinance and;
The applicant’s request to add on to the attached garage is reasonable. The total square
footage for the proposed garage is under the square footage allowed for an attached
garage. The location of the proposed garage addition meets all remaining setback
requirements and is proposed to be located further from the front lot line than the existing
garage on site.
b. Unique Circumstances. The plight of property owner is due to circumstances unique
to the property not created by the landowner and;
The property is under unique circumstances as the existing house and garage do not meet
the front yard building setback requirements. Additionally, the proximity to Bald Eagle
Lake and the shoreland setback requirement limit the buildable area of the lot.
c. Character of Neighborhood. The variance, if granted, will not alter the essential
character of the neighborhood.
There are several properties in the area that have similar front yard building setbacks and
do not conform to the zoning district regulations. The proposed garage will be of the
same materials of the existing garage and will not alter the character of the neighborhood.
It is in staff’s opinion that there are practical difficulties in meeting the ordinance as outlined in
the City Code. The size of the proposed garage addition is permitted by ordinance and it is a
reasonable request to add on to an existing garage. The property is unique in that the existing
house and garage do not meet the front yard building setback requirements and the buildable area
Hanscom Variance Request
12096 Everton Avenue North
on the lot is limited due to the shoreland setback requirement from Bald Eagle Lake.
Additionally, the applicant’s request will not alter the character of the neighborhood.
(3) Spirit and Intent. The granting of the variance would be in keeping with the spirit and
intent of this chapter and with the policies of the City’s Comprehensive Plan.
The requested variance is keeping with the spirit and intent of the ordinance. The intent of the
ordinance is to allow green space in the front yard. The proposed garage addition will be further
back from the front lot line than the house and attached garage. The proposed garage addition
will not create a sight distance issue and will be cohesive with the existing garage and home on
site.
(4) Prohibited Use. The variance, if granted, shall not have the effect of allowing any use
prohibited in the district.
Garages are permitted in the R-1 zoning district.
(5) Hazard Consideration. The variance, if granted, shall not permit a lower degree of flood
protection than required by this chapter. The variance shall be determined the minimum
necessary, considering the flood hazard, to afford relief, and the variance shall not be issued
within any designated regulatory floodway if any increase in flood levels during the base flood
discharge would result.
The proposed garage addition is not located within a FEMA floodplain. However, the building
will be required to meet building code regulations regarding low floor separation from the
groundwater elevation.
(6) Septic and Well Compliance. The sewage treatment system and water system of the subject
property is in compliance with city and state codes.
The property is served with City sewer and water.
5. CONCLUSION AND THE BOARD OF ZONING RECOMMENDATION:
It is in staff’s opinion that the applicant meets all the criteria necessary to approve the variance
request.
The Board of Zoning recommends approval of the variance request from Luke Hanscom to allow
a front yard building setback of 25 feet, where 30 feet is required by ordinance, at property
located at 12096 Everton Avenue North.
ATTACHMENTS
1. Location Map
2. Survey
3. Resolution
E
verton Avenue N
orth
120th Street North
121st Street North
12096 Everton Ave N - Variance Request
Location MapHugo, MN
Site
Roads
Hugo Border
Parcel Boundary
¯0 100Feet1 in = 100 feet Document Path: S:\Mapping\Emily\LocationSite Maps\2021\Hanscom Variance 08.12.21.mxdSite
RESOLUTION 2021 - XX
APPROVING A VARIANCE REQUEST FROM LUKE HANSCOM TO ALLOW
A FRONT YARD BUILDING SETBACK OF 25 FEET, WHERE 30 FEET IS
REQUIRED BY ORDINANCE, AT PROPERTY LOCATED AT 12096 EVERTON
AVENUE NORTH
WHEREAS, Luke Hanscom has requested approval of a variance to allow front yard
building setback of 25 feet, where 30 feet is required by ordinance, at property legally
described as:
Lots 1 and 2, except the South 40 feet thereof, and Lots 3 and 4, Block 10, SHADYSIDE
No. 4 and the south 26 feet of Euclid Avenue nka 121st Street North that lies West of the
East line of Block 10 extended North, according to the recorded plat thereof, and situate
in Washington County, Minnesota.
WHEREAS, the Board of Appeals and Adjustments has reviewed said variance at a duly
called public hearing on August 26, 2021, and recommends approval with the following
findings and conditions:
1. The proposed garage addition shall be in adherence to the Certificate of Survey
dated August 5, 2021.
2. The proposed variance is permissible by law.
3. There are practical difficulties in meeting the ordinance standards.
a. Reasonable Use – The applicant’s request to add on to an existing garage
is reasonable.
b. Unique Circumstances – The property is under unique circumstances as
the existing house and garage do not meet the front yard building setback
requirements.
c. Character of the Neighborhood – There are several properties in the area
that have similar front yard building setbacks and the variance will not
alter the essential character of the neighborhood.
4. The variance meets the spirit and intent of the ordinance.
5. The variance does not affect the surrounding properties.
6. The property is not located within a floodplain area.
7. The property is served by City sewer and water.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF HUGO, MINNESOTA, that it should and hereby does approve the
variance request for Luke Hanscom to allow a front yard building setback of 25 feet,
where 30 feet is required by ordinance, at property located at 12096 Everton Avenue
North.
Resolution 2021-XX
Page 2
ADOPTED by the City Council this 7th day of September, 2021.
_______________________________
Tom Weidt, Mayor
ATTEST:
__________________________________
Michele Lindau, City Clerk
CITY OF HUGO
CITY COUNCIL AGENDA REPORT
TO: Bryan Bear, City Administrator
FROM: Scott Anderson, Public Works Director
SUBJECT: Construction Payment Request #11
Hugo Public Works Facility
Ebert Construction
DATE: For the City Council Meeting of September 7, 2021
BACKGROUND
Please find the enclosed application for payment for the City of Hugo Public Works
Facility project in the amount of $393,604.75. The quantities completed to date have
been reviewed and agreed upon by the architect, contractor and city staff.
The amount indicated above reflects the work certified through August 31, 2021, with a
5% retainage applied. Total retainage being held for the project to date is $276,161.00.
DESIRED ACTION
Staff recommends the City Council approve payment request #11 in the amount of
$393,604.75 to Ebert Construction for the construction of the City of Hugo Public Works
facility.
CITY OF HUGO
CITY COUNCIL AGENDA REPORT
TO: Bryan Bear, City Administrator
FROM: Scott Anderson, Public Works Director
SUBJECT: Construction Payment Request #3
Hugo Public Works Salt and Materials Storage Building
Ebert Construction
DATE: For the City Council Meeting of September 7, 2021
BACKGROUND
Please find the enclosed application for payment for the City of Hugo Public Works Salt
and Materials Storage Building project in the amount of $234,982.12. The quantities
completed to date have been reviewed and agreed upon by the architect, contractor
and city staff.
The amount indicated above reflects the work certified through August 31, 2021 with a
5% retainage applied. The total retainage being held to date will be $23,358.27.
DESIRED ACTION
Staff recommends the City Council approve payment request #3 in the amount of
$234,982.12 to Ebert Construction for the construction of the City of Hugo Public Works
salt and materials storage building.
- 1 -
Schreiber Mullaney #1
September 7, 2021
CITY OF HUGO
PARKS COMMISSION REPORT
TO: Bryan Bear, City Administrator
FROM: Shayla Denaway, Parks Planner
SUBJECT: Construction Payment Request #1
Lions Park Pavilion
Schreiber Mullaney Construction
DATE: September 2, 2021 for the Parks Commission meeting of September 7,
2021
1.BACKGROUND:
Please find the enclosed application for payment for the City of Hugo Lions Park
Pavilion in the amount of $40,836.82. The quantities completed to date have been
reviewed and agreed upon by the architect, contractor and city staff.
This is the first payment request and the amount indicated above reflects the work
certified through August 31, 2021. A 5% retainage is applied and the total retainage
being held for the project to date $2,149.31.
2.RECOMMENDATION:
Staff recommends the City Council approve payment request #1 in the amount of
$40,836.82 to Schreiber Mullaney Construction.
C:\Users\michele.lindau\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\PD3H9O9W\Declare assessments and set assessment hearing.docx 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM Memorandum
To: Honorable Mayor and City Council
Bryan Bear, City Administrator
From: Mark Erichson, City Engineer
Date: September 1, 2021
Re: 2021 Downtown Improvement Project
Declare Costs to be Assessed and Set Assessment Hearing
WSB Project No. 015887-000
Staff has prepared two resolutions for your consideration in accordance with the
requirement of state statutes Chapter 429 for assessments to benefitting properties.
The first resolution is a resolution declaring the costs to be assessed and ordering the
preparation of the proposed assessment roll for the 2021 Downtown Improvement
Project. The second resolution is a resolution calling the hearing on assessments for the
2021 Downtown Improvement Project. Staff is requesting that the assessment hearing
for the 2021 Downtown Improvement Project be set for October 4th, 2021. A summary of
the project costs is shown below:
Total Project Cost: $3,240,800.00
Portion to be assessed: $ 259,639.75
Construction will continue through the fall of 2021.
14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762‐6300 • www.ci.hugo.mn.us
C:\Users\michele.lindau\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\PD3H9O9W\015887-000 LTR NOTICE OF HEARING ON ASSESSMENT.docx
NOTICE OF HEARING ON ASSESSMENTS
FOR THE 2021 DOWNTOWN IMPROVEMENT POJECT
TO: <NAME>
<ADDRESS>
Property Identification Number: <PID>
Property Address: <ADDRESS>
TIME AND PLACE Notice is hereby given that the City Council
GENERAL NATURE OF of the City of Hugo, Minnesota, will
IMPROVEMENTS: meet in the City Hall in the City of Hugo,
Minnesota, on the 4th day of October 2021, at 7:00
o’clock P.M. to consider objections to the proposed
assessments for 2021 Downtown Improvement
Project heretofore ordered by the City Council.
ASSESSMENT ROLL The proposed assessment roll is on file with
OPEN TO INSPECTION: the City Clerk and open to public inspection.
AREA PROPOSED The area proposed to be assessed consists of
TO BE ASSESSED: every lot, piece or parcel of land benefitted by said
improvement, which has been ordered made and is
as follows: roadway improvements on 147th Street
from just west of TH 61 to Finale Avenue, 147th
Street from Finale Avenue to Oneka Parkway (new
construction), Flay Avenue north of 147th Street to
its existing termination point, Upper 146th Street
from Finale Avenue to Fitzgerald Avenue, 146th
Street from Finale Avenue to Fitzgerald Avenue,
Finley Avenue from Upper 146th Street to 145th
Street, and Fitzgerald Avenue from 147th Street to
146th Street, in the City of Hugo, Minnesota.
TOTAL AMOUNT OF The total amount proposed to be assessed is
PROPOSED ASSESSMENT: $259,639.75.
WRITTEN OR ORAL Written or oral objections will be considered
OBJECTIONS: at the hearing on October 4, 2021.
Page 2 of 3
Property Identification Number: «PID»
Property Address: «PROPERTY_ADDRESS»
RIGHT OF APPEAL: An owner of property to be assessed may appeal the
assessment to the district court of Washington
County pursuant to Minnesota Statutes, Section
429.081 by serving notice of the appeal upon the
Mayor or Clerk of the City within 30 days after the
adoption of the assessment and filing such notice
with the district court within ten days after service
upon the Mayor or Clerk.
LIMITATION ON No appeal may be taken as to the amount of
APPEAL: any assessment adopted by the City Council unless
a written objection signed by the affected property
owner is filed with the Clerk prior to the assessment
hearing or presented to the presiding officer at the
hearing. All objections to the assessments not
received at the assessment hearing in the manner
prescribed by Minnesota Statutes, Section 429.061
are waived, unless the failure to object to the
assessment hearing is due to a reasonable cause.
DEFERMENT OF Under the provisions of Minnesota Statutes,
ASSESSMENTS: Sections 435.193 to 435.195, the City may, at its
discretion, defer the payment of assessments for any
homestead property owned by a person 65 years of
age or older for whom it would be a hardship to
make the payments. [However, the City has elected
not to establish any deferment procedure pursuant
to those Sections.]
SPECIFIC AMOUNT TO The amount to be specifically assessed
BE ASSESSED: against your particular lot, piece of parcel of land is
$<AMOUNT>.
PREPAYMENT: You may prepay the entire assessment to the
Treasurer of the City until the assessment roll is
certified to the County Auditor; after certification to
the County Auditor, prepayments of the entire
amount remaining due may be made to the
Treasurer at any time prior to November 15 of any
year.
NO PARTIAL The City Council has authorized the partial
PREPAYMENT prepayment of assessments prior to certification of
the assessment or the first installment thereof to the
County Auditor.
Page 3 of 3
Property Identification Number: «PID»
Property Address: «PROPERTY_ADDRESS»
PREPAYMENT WITHOUT No interest shall be charged if the entire
INTEREST, OR WITH assessment is paid within 30 days from the
INTEREST TO END OF adoption of the assessment roll. At any time
YEAR: prior to November 15 of any year, the owner may
prepay to the Treasurer the whole assessment
remaining due with interest accrued to December 31
of the year in which the prepayment is made.
INTEREST RATE: If the assessment is not prepaid within 30 days from
the adoption of the assessment roll, interest will
accrue on the assessment at the rate of 4.0%.
Interest accrues from the date to be specified in the
resolution levying the assessment, but not earlier
than the date of such resolution.
TERM OF ASSESSMENT: Assessments will be payable over a 15 year period
unless the assessment is prepaid or paid off prior to
the full 15-year term.
DATED: September 6, 2021
BY ORDER OF THE CITY COUNCIL
/s/ Michele Lindau
City \ Clerk
RESOLUTION NO. 2021 –
RESOLUTION CALLING HEARING ON ASSESSMENTS
FOR THE 2021 DOWNTOWN IMPROVEMENT PROJECT
WHEREAS, the City Clerk, with the assistance of the City consulting engineer, has prepared an
assessment roll for the 2021 Downtown Improvement Project and said proposed assessment roll
is on file with the City Clerk and open to public inspection;
NOW, THEREFORE, IT BE RESOLVED, by the City Council of the City of Hugo,
Minnesota, as follows:
1. The Clerk shall publish notice that this Council will meet to consider the proposed
assessments on October 4th, 2021, at 7:00 o’clock P.M. in the in the City Hall in the City
of Hugo, Minnesota. The published notice shall be in substantially the form set forth on
Exhibit A attached hereto.
2. A copy of the notice in substantially the form set forth in Exhibit B attached hereto shall
be mailed to the owners of each parcel of property described in the assessment roll.
Council members voting AYE:
Council members voting NAY:
Whereupon said resolution was declared passed and adopted this 7th day of September 2021.
________________________
Tom Weidt, Mayor
ATTEST:
___________________________________
Michele Lindau, City Clerk
S:\Office_SHARED\Resolutions\2021 Resolutions\2021- DT Imp Project Declare Assessment Costs.doc
RESOLUTION NO. 2021 –
A RESOLUTION DECLARING THE COST TO BE ASSESSED AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT ROLL
FOR THE 2021 DOWNTOWN IMPROVEMENT PROJECT
WHEREAS estimated costs have been calculated for the Goodview Avenue Improvement
consisting of roadway improvements on 147th Street from just west of TH 61 to Finale Avenue,
147th Street from Finale Avenue to Oneka Parkway (new construction), Flay Avenue north of
147th Street to its existing termination point, Upper 146th Street from Finale Avenue to Fitzgerald
Avenue, 146th Street from Finale Avenue to Fitzgerald Avenue, Finley Avenue from Upper 146th
Street to 145th Street, and Fitzgerald Avenue from 147th Street to 146th Street. The estimated cost
for such improvements is $3,240,800. That portion of the project that is assessable is the roadway
improvements with estimated costs is $259,639.75; and
NOW, THEREFORE, IT BE RESOLVED, by the City Council of the City of Hugo,
Minnesota, as follows:
1. The portion of the cost of the roadway improvement is hereby declared to be $3,240,800;
and the portion of the cost to be assessed against benefited property owners is declared to
be $259,639.75.
2. Assessments shall be payable in equal annual installments extending over a period of 15
years, the first of the installments to be payable on or before the first Monday in January,
2021 and shall bear interest at the rate of 4.00 percent per annum from the date of the
adoption of the assessment resolution.
3. The city clerk, with the assistance of the city engineer, shall forthwith calculate the proper
amount to be specially assessed for such improvement against every assessable lot, piece or
parcel of land within the district affected, without regard to cash valuation, as provided by
law, and he shall file a copy of such proposed assessment in his office for public inspection.
4. The clerk shall upon the completion of such proposed assessment, notify the council
thereof.
Council members voting AYE:
Council members voting NAY:
Whereupon said resolution was declared passed and adopted this 7th day of September 2021.
________________________
Tom Weidt, Mayor
ATTEST:
___________________________________
Michele Lindau, City Clerk
13590415v1
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF HUGO, MINNESOTA
HELD: September 7, 2021
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of Hugo, Washington County, Minnesota, was duly called and held at the City Hall
on September 7, 2021, at 7:00 P.M., for the purpose, in part, of authorizing issuance and
awarding the sale of $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A.
The following members were present:
and the following were absent:
RESOLUTION ACCEPTING OFFER ON THE SALE OF $8,380,000 GENERAL
OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A, PROVIDING FOR THEIR
ISSUANCE AND PLEDGING TAX ABATEMENTS AND LEVYING A TAX FOR THE
SECURITY AND PAYMENT THEREOF
A.WHEREAS, the City Council of the City of Hugo, Minnesota (the "City"), has
heretofore determined and declared that it is necessary and expedient to issue $8,380,000
aggregate principal amount General Obligation Tax Abatement Bonds, Series 2021A (the
"Bonds" or individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475 and Sections
469.1812 through 469.1815, particularly Section 469.1814, to finance the improvements of Lions
Park and related public improvements in the City (the “Project”); and
B.WHEREAS, the City has requested, in writing, that Independent School District
No. 624 (the “White Bear School District”) grant an abatement for the Project. The White Bear
School District has declined, in writing, to grant an abatement and therefore the City has the
authority to grant an abatement for up to 20 years; and
C.WHEREAS, the City has heretofore established a tax abatement program) the
"Program"), pursuant to the provisions of Minnesota Statutes, Sections 469.1812 through
469.1815, with respect to providing for the abatement of property taxes for a period of twenty
(20) years on various properties in the City, as described in the Resolution adopted by the City
Council on July 19, 2021, approving the Program (the "Abatement Resolution"); and
D.WHEREAS, the amount of the property taxes abated are estimated to be at least
equal to the principal of the Bonds and pursuant to the provisions of the Abatement Resolution,
Bond proceeds are to be expended to provide money to pay for costs of the Project; and
E.WHEREAS, the City has retained Baker Tilly Municipal Advisors, LLC, in St.
Paul, Minnesota ("Baker Tilly MA"), as its independent municipal advisor for the sale of the
Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with
Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have
been solicited by Baker Tilly MA; and DRAFT
13590415v1
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F.WHEREAS, the proposals set forth on Exhibit A attached hereto were received
by the Administrator, or designee, at the offices of Baker Tilly MA at 11:00 A.M. this same day
pursuant to the Terms of Proposal established for the Bonds; and
G.WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hugo,
Minnesota, as follows:
1.Acceptance of Proposal. The proposal of ____________________ in
____________, ______________ (the "Purchaser"), to purchase the Bonds, in accordance with
the Terms of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of
$_______________, plus interest accrued to settlement, is hereby found, determined and
declared to be the most favorable proposal received, is hereby accepted and the Bonds are hereby
awarded to the Purchaser. The Administrator is directed to retain the deposit of the Purchaser
and to forthwith return to the unsuccessful bidders their good faith checks or drafts.
2.Bond Terms.
(a)Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds
shall be dated October 7, 2021, as the date of original issue and shall be issued forthwith on or
after such date in fully registered form, shall be numbered from R-1 upward in the denomination
of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized
Denominations") and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2023 $ 2033 $
2024 2034
2025 2035
2026 2036
2027 2037
2028 2038
2029 2039
2030 2040
2031 2041
2032 2042
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b)Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its DRAFT
13590415v1
3
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i)The Bonds shall be initially issued and, so long as they remain in book entry form
only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized
Denominations for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
(ii)Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of
CEDE & CO., as the nominee (it or any nominee of the existing or a successor
Depository, the "Nominee").
(iii)With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds
shown on the books and records of the Participant (the "Beneficial Owner").
Without limiting the immediately preceding sentence, neither the City, nor the
Bond Registrar, shall have any such responsibility or obligation with respect to
(A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any
Participant, any Owner or any other person, other than the Depository, of any
notice with respect to the Bonds, including any notice of redemption, or (C) the
payment to any Participant, any Beneficial Owner or any other person, other than
the Depository, of any amount with respect to the principal of or premium, if any,
or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Registered Holder of any Bonds (the "Holder"). For purposes
of securing the vote or consent of any Holder under this Resolution, the City may,
however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds
are credited on the record date identified in a listing attached to the omnibus
proxy.
(iv)The City and the Bond Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall pay all principal of and
premium, if any, and interest on the Bonds only to the Holder or the Holders of
the Bonds as shown on the bond register, and all such payments shall be valid and
effective to fully satisfy and discharge the City's obligations with respect to theDRAFT
13590415v1
4
principal of and premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid.
(v)Upon delivery by the Depository to the Bond Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of
the existing Nominee, and subject to the transfer provisions in paragraph 10,
references to the Nominee hereunder shall refer to such new Nominee.
(vi)So long as any Bond is registered in the name of a Nominee, all payments with
respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the
Bond Registrar or City, as the case may be, to the Depository as provided in the
Letter of Representations to the Depository required by the Depository as a
condition to its acting as book-entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or
substitute thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role as book-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
(vii)All transfers of beneficial ownership interests in each Bond issued in book-entry
form shall be limited in principal amount to Authorized Denominations and shall
be effected by procedures by the Depository with the Participants for recording
and transferring the ownership of beneficial interests in such Bonds.
(viii)In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Bond Registrar with respect to
any consent or other action to be taken by Holders, the Depository shall consider
the date of receipt of notice requesting such consent or other action as the record
date for such consent or other action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or other action. The City or
the Bond Registrar shall, to the extent possible, give the Depository notice of such
special record date not less than fifteen calendar days in advance of such special
record date to the extent possible.
(ix)Any successor Bond Registrar in its written acceptance of its duties under this
Resolution and any paying agency/bond registrar agreement, shall agree to take
any actions necessary from time to time to comply with the requirements of the
Letter of Representations.
(x)In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in
paragraph 5, make a notation of the reduction in principal amount on the panel
provided on the Bond stating the amount so redeemed.
(c)Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows: DRAFT
13590415v1
5
(i)The Depository may determine to discontinue providing its services with respect
to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may
terminate the services of the Depository with respect to the Bond if it determines
that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
(ii)Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the
City, is willing and able to assume such functions upon reasonable or customary
terms, or if the City determines that it is in the best interests of the City or the
Beneficial Owners of the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but may be registered
in whatever name or names the Holder of the Bonds shall designate at that time,
in accordance with paragraph 10. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 10, the
Bonds will be delivered to the Beneficial Owners.
(iii)Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph
10.
(d)Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall control.
3.Purpose. The Bonds shall provide funds to finance the Project. Pursuant to the
Abatement Resolution, the City's share of real estate taxes generated as a result of the Project and
the Program (the "Tax Abatements") have been pledged to the payment of principal on the
Bonds. The principal amount of the Bonds does not exceed the estimated amount of Tax
Abatements of $9,000,000. The total cost of the Project, which shall include all costs
enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount
of the Bonds. Proceeds of the Bonds shall be expended on costs or uses permitted by Minnesota
Statutes, Sections 469.1812 through 469.1815, and shall not be expended on any costs or devoted
to any other uses. The City covenants that it shall do all things and perform all acts required of it
to assure that work on the Project proceeds with due diligence to completion and that any and all
permits and studies required under law for the Project are obtained.
4.Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022,
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows: DRAFT
13590415v1
6
Maturity Year Interest Rate Maturity Year Interest Rate
2023 % 2033 %
2024 2034
2025 2035
2026 2036
2027 2037
2028 2038
2029 2039
2030 2040
2031 2041
2032 2042
5.Redemption. All Bonds maturing on February 1, 2032, and thereafter, shall be
subject to redemption and prepayment at the option of the City on February 1, 2031, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the maturities and the principal
amounts within each maturity to be redeemed shall be determined by the City; and if only part of
the Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds
having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. The City hereby appoints U.S. Bank National Association, in St.
Paul, Minnesota, to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is DRAFT
13590415v1
7
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF HUGO
R-_______ $_________
GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A
Interest Rate Maturity Date Date of Original Issue CUSIP
% February 1, October 7, 2021
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA (the "Issuer"),
certifies that it is indebted and for value received promises to pay to the registered owner
specified above, or registered assigns, in the manner hereinafter set forth, the principal amount
specified above, on the maturity date specified above, unless called for prepayment, and to pay
interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest
Payment Date"), commencing August 1, 2022, at the rate per annum specified above (calculated
on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has
been provided for. This Bond will bear interest from the most recent Interest Payment Date to
which interest has been paid or, if no interest has been paid, from the date of original issue
hereof. The principal of and premium, if any, on this Bond are payable upon presentation and
surrender hereof at the principal office of U.S. Bank National Association, in St. Paul, Minnesota
(the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by
the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft
mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on
the registration books of the Issuer maintained by the Bond Registrar and at the address
appearing thereon at the close of business on the fifteenth day of the calendar month next
preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely
paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record
Date, and shall be payable to the person who is the Holder hereof at the close of business on a
date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes
available for payment of the defaulted interest. Notice of the Special Record Date shall be given
to Bondholders not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the United States of DRAFT
13590415v1
8
America. So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be
made as provided in the Letter of Representations, as defined in the Resolution, and surrender of
this Bond shall not be required for payment of the redemption price upon a partial redemption of
this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds
may only be registered in the name of the Depository or its Nominee.
Optional Redemption. The Bonds of this issue (the "Bonds") maturing on February 1,
2032, and thereafter, are subject to redemption and prepayment at the option of the Issuer on
February 1, 2031, and on any date thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the
maturities and the principal amounts within each maturity to be redeemed shall be determined by
the Issuer; and if only part of the Bonds having a common maturity date are called for
prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar.
Bonds or portions thereof called for redemption shall be due and payable on the redemption date,
and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each affected Holder of the Bonds prior to
the date fixed for redemption.
Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed
in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying
the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the
addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear
interest on the specified redemption date, provided funds for their redemption have been duly
deposited.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption
of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided,
however, that only so much of the principal amount of such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's
attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the
Bond so surrendered. DRAFT
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Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $8,380,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and a resolution adopted by the City
Council on September 7, 2021 (the "Resolution"), for the purpose of providing to finance the
improvements of Lions Park and related public improvements in the City that benefits the
property for which property taxes are levied and/or abated as described in the Resolution. This
Bond is payable out of the General Obligation Tax Abatement Bonds Fund of the Issuer. This
Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and
full payment of its principal, premium, if any, and interest when the same become due, the full
faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided herein with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended. DRAFT
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IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Hugo, Washington County, Minnesota, by its City
Council has caused this Bond to be executed on its behalf by the facsimile signatures of its
Mayor and its City Administrator, the corporate seal of the Issuer having been intentionally
omitted as permitted by law.
Date of Registration:
_____________________
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota,
Bond Registrar
By:
Authorized Signature
Registrable by: U.S. BANK NATIONAL
ASSOCIATION
Payable at: U.S. BANK NATIONAL
ASSOCIATION
CITY OF HUGO,
WASHINGTON COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
City Administrator
DRAFT
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ABBREVIATIONS
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 applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - ___________ as custodian for ______________
(Cust) (Minor)
under the _____________________ Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
___________________________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________________________________ the within Bond
and does hereby irrevocably constitute and appoint _________________ attorney to transfer the
Bond on the books kept for the registration thereof, with full power of substitution in the
premises.
Dated:_____________________ ___________________________
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
___________________________
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address: ________________________________________
________________________________________
________________________________________
(Include information for all joint owners if the Bond is held by joint account.)
DRAFT
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8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the
City; provided, as permitted by law, both signatures may be photocopied facsimiles and the
corporate seal has been omitted. In the event of disability or resignation or other absence of
either officer, the Bonds may be signed by the manual or facsimile signature of the officer who
may act on behalf of the absent or disabled officer. In case either officer whose signature or
facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if the officer had remained in office until delivery
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of
October 7, 2021. The Certificate of Authentication so executed on each Bond shall be
conclusive evidence that it has been authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee
or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a
like aggregate principal amount, having the same stated maturity and interest rate, as requested
by the transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. DRAFT
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All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or the Holder's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The City Administrator is
hereby authorized to negotiate and execute the terms of said agreement.
11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by
notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the City Administrator to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper application thereof.
15. Fund and Accounts. There is hereby established a special fund to be designated
"General Obligation Tax Abatement Bonds Fund" (the "Fund") to be administered and
maintained by the City Administrator as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the City. The Fund shall be maintained in DRAFT
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the manner herein specified until all of the Bonds and interest thereon have been fully paid and
the City has been fully reimbursed from the pledge of Tax Abatements for payment of the
principal on the Bonds paid by the City from taxes levied on property in the City other than the
Project. There shall be maintained in the Fund the following separate accounts:
(a) Construction Account. To the Construction Account there shall be credited the
proceeds of the sale of the Bonds. From the Construction Account there shall be paid all costs
and expenses of the Project, including the cost of any construction contracts heretofore let and all
other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section
475.65. Moneys in the Construction Account shall be used for no other purpose except as
otherwise provided by law. Proceeds of the Bonds may be used to the extent necessary to pay
interest on the Bonds due prior to the anticipated date of commencement of the collection of Tax
Abatements and taxes herein levied or covenanted to be levied and if upon completion of the
Project there shall remain any unexpended balance in the Construction Account, the balance
shall be transferred to the Debt Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby irrevocably
appropriated and pledged, and there shall be credited (i) Tax Abatements in an amount sufficient
to pay the annual principal payments on the Bonds; (ii) any collections of all taxes herein and
hereafter levied for the payment of the interest on the Bonds; (iii) all funds remaining in the
Construction Account after completion of the Project and payment of the costs thereof; (iv) all
investment earnings on funds held in the Debt Service Account; and (v) any and all other moneys
which are properly available and are appropriated by the governing body of the City to the Debt
Service Account. The Debt Service Account shall be used solely to pay the principal and interest
and any premiums for redemption of the Bonds.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Construction
Account or Debt Service Account (or any other City account which will be used to pay principal
or interest to become due on the bonds payable therefrom) in excess of amounts which under
then-applicable federal arbitrage regulations may be invested without regard to yield shall not be
invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage
regulations on such investments after taking into account any applicable "temporary periods" or
"minor portion" made available under the federal arbitrage regulations. Money in the Fund shall
not be invested in obligations or deposits issued by, guaranteed by or insured by the United
States or any agency or instrumentality thereof if and to the extent that such investment would
cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the
Internal Revenue Code of 1986, as amended (the "Code").
16. Tax Abatements; Use of Tax Abatements. The Council has adopted the
Abatement Resolution and has thereby approved the Tax Abatements, including the pledge
thereof to the payment of principal of the Bonds. As provided in the Abatement Resolution, the
estimated total amount of Tax Abatements, if received as estimated for the full maximum term DRAFT
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thereof, is $9,000,000, and therefore the principal amount of the Bonds does not exceed the
maximum projected amount of the Tax Abatements. The Council hereby confirms the
Abatement Resolution, which is hereby incorporated as though set forth herein.
17. Tax Levy; Coverage Test. To provide moneys for payment of the interest on the
Bonds, 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 and collected with and as part of other
general property taxes in the City for the years and in the amounts as follows:
Year of Tax Levy Year of Tax Collection Amount
See Attached Tax Levy Schedule
The tax levies are such that if collected in full they, together with estimated collections of
Tax Abatements, will produce at least five percent in excess of the amount needed to meet when
due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so
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, Subdivision 3.
18. General Obligation Pledge. For the prompt and full payment of the principal of
and interest on the Bonds as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds
payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City
which are available for such purpose, and such other funds may be reimbursed without interest
from the Debt Service Account when a sufficient balance is available therein.
19. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar 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 Bond
Registrar 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 Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given. 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
suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date. DRAFT
13590415v1
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20. Compliance With Reimbursement Bond Regulations. The provisions of this
paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(a) Not later than sixty days after the date of payment of a Reimbursement
Expenditure, the City (or person designated to do so on behalf of the City) has made or will have
made a written declaration of the City's official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not
exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of
Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the
proceeds of the Bonds.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of
the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for
each Reimbursement Expenditure shall and will be made forthwith following (but not prior to)
the issuance of the Bonds, and not later than three years after the later of (i) the date of the
payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the
Reimbursement Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a writing that evidences the
City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30
days after the Bonds are issued, shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating
in effect that such action will not impair the tax-exempt status of the Bonds.
21. Certificate of Registration. A certified copy of this resolution is hereby directed
to be filed with the County Auditor of Washington County, Minnesota, together with such other
information as the County Auditor shall require, and to obtain the County Auditor's Certificate DRAFT
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that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy
required by law has been made.
22. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described:
(a) Provide or cause to be provided to the Municipal Securities Rulemaking Board
(the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual
financial information and operating data in accordance with the Undertaking. The City reserves
the right to modify from time to time the terms of the Undertaking as provided therein.
(b) Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10) business days after the occurrence of
the event, in accordance with the Undertaking.
(c) Provide or cause to be provided to the MSRB notice of a failure by the City to
provide the annual financial information with respect to the City described in the Undertaking, in
not more than ten (10) business days following such occurrence.
(d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
The Mayor and City Administrator of the City, or any other officer of the City authorized
to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of
the City the Undertaking in substantially the form presented to the City Council subject to such
modifications thereof or additions thereto as are (i) consistent with the requirements under the
Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
23. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are 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.
24. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby
covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them
to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such
a manner as to cause the Bonds to be "private activity bonds", other than qualified 501(c)(3)
bonds, within the meaning of Sections 103 and 141 through 150 of the Code. DRAFT
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25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(i) requirements relating to temporary periods for investments, (ii) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment
earnings to the United States. The City expects to satisfy the twenty-four month exemption for
gross proceeds of the Bonds as provided in Section 1.148-7(e) of the Regulations. The Mayor
and/or the Administrator, are hereby authorized and directed to make such elections as to
arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or
desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and
treated as, elections of the City.
26. Designation of Qualified Tax-Exempt Obligations; Issuance Limit. In order to
qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)
of the Code, the City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2021 will
not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the City during this calendar
year 2021 have been designated for purposes of Section 265(b)(3) of the Code; and
(f) the aggregate face amount of the Bonds does not exceed $10,000,000.
The City shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this paragraph.
27. Official Statement. The Official Statement relating to the Bonds prepared and
distributed by Baker Tilly MA is hereby approved and the officers of the City are authorized in
connection with the delivery of the Bonds to sign such certificates as may be necessary with
respect to the completeness and accuracy of the Official Statement.
28. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
29. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. DRAFT
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The motion for the adoption of the foregoing resolution was duly seconded by member
_____________ and, after a full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted. DRAFT
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting City Clerk of the City of Hugo,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council, duly called and held on the
date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding
the sale of $8,380,000 General Obligation Tax Abatement Bonds, Series 2021A.
WITNESS my hand on ______________________, 2021.
________________________________
City Clerk DRAFT
13590415v1
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EXHIBIT A
PROPOSALS
[To be provided by Baker Tilly Municipal Advisors, LLC]
DRAFT
13590415v1
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EXHIBIT B
TAX LEVY SCHEDULE
[To be supplied by Baker Tilly Municipal Advisors, LLC]
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C:\Users\michele.lindau\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\PD3H9O9W\Authorize preparation of feasibility study.docx 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM Memorandum
To: Honorable Mayor and City Council
Bryan Bear, City Administrator
From: Mark Erichson, City Engineer
Date: September 1, 2021
Re: 2022 Oneka Parkway Improvement Project
WSB Project No. 018888-000
Staff has worked to develop a 5-year Capital Improvement Plan for roadway
infrastructure which was approved in 2020 by the City Council as part of the City’s
overall 5-year Capital Improvement Plan. Next year’s improvement project is identified
as the 2022 Oneka Parkway Improvement Project and includes mill and overlay
improvements along Oneka Parkway from Frenchman Road (CSAH 8) to 149th Street N
and full street reconstruction along Oneka Parkway from 149th Street N to Heritage
Parkway (see attached project location map). Staff would like to confirm the
improvements as outlined in the 5-year Capital Improvement Plan remains the City’s
next priority.
Staff is requesting authorization to prepare the feasibility study for the 2022 Street
Improvement project. If authorized, staff will notify residents of this effort and coordinate
an early informational meeting (format to be determined) about the proposed project.
147TH ST N
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FRENCHDRNHERITAGEPKWYN
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FRENCHDRN FARNHAMDRNONEKA PKWY157TH ST N
146TH ST N157TH WAY NELM DR NFA
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REEDOMDRNProject Location
0 600Feet¯2022 Oneka Parkway Improvement ProjectHugo, MN Document Path: K:\014560-000\GIS\Maps\2022ReconstructionArea.mxd Date Saved: 9/1/2021 11:25:51 AM1 inch = 621 f eet
RESOLUTION NO. ______
CITY OF HUGO
WASHINGTON COUNTY, MINNESOTA
A RESOLUTION
ORDERING PREPARATION OF A FEASIBILITY REPORT FOR
PUBLIC IMPROVEMENTS TO ALL OR PORTIONS OF ROADWAYS IDENTIFIED AS THE
2022 ONEKA PARKWAY IMPROVEMENT PROJECT
WHEREAS, it is proposed to improve all or portions of Oneka Parkway from Frenchman Road
(CSAH 8) to Heritage Parkway and to potentially assess the benefited property for all or a
portion of the cost of the improvement, pursuant to Minnesota Statutes, Chapter 429.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUGO, MINNESOTA:
That the proposed improvement, called the 2022 Oneka Parkway Improvement Project for study
and that the engineer is instructed to report to the council with all convenient speed advising the
council in a preliminary way as to whether the proposed improvement is necessary, cost-
effective, and feasible; whether it should best be made as proposed or in connection with some
other improvement; the estimated cost of the improvement as recommended; and a description
of the methodology used to calculate individual assessments for affected parcels.
This resolution was adopted by the City Council of the City of Hugo on the 7th day of September,
2021, by a vote of Ayes and Nays.
Tom Weidt, Mayor
ATTEST:
Michele Lindau, City Clerk
(seal)
19/2/2021 3:36 PMScheduled/posted meetings in greenSu Mo Tu We Th Fr Sa123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30September 2021Su Mo Tu We Th Fr Sa12345678910 11 12 13 14 15 1617 18 19 20 21 22 2324 25 26 27 28 29 3031October 2021September 2021Aug 293031Sep 1234567891011Labor Day (United States)7:00pm City Council6:30pm BOZA7:00pm Planning Comm121314151617187:00pm Parks Comm192021222324257:00pm City Council5:30pm EDA6:30pm Hist Comm6:30pm BOZA7:00pm Planning Comm2627282930Oct 12SUNDAY MONDAY TUESDAY WEDNESDAYTHURSDAY FRIDAY SATURDAY
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EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF HUGO, MINNESOTA
HELD: September 7, 2021
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of Hugo, Washington County, Minnesota, was duly called and held at the City Hall
on September 7, 2021, at 7:00 P.M., for the purpose, in part, of authorizing issuance and
awarding the sale of $8,170,000 General Obligation Tax Abatement Bonds, Series 2021A.
The following members were present:
and the following were absent:
Member _________ introduced the following resolution and moved its adoption.
RESOLUTION ACCEPTING OFFER ON THE SALE OF $8,170,000 GENERAL
OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A, PROVIDING FOR THEIR
ISSUANCE AND PLEDGING TAX ABATEMENTS AND LEVYING A TAX FOR THE
SECURITY AND PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Hugo, Minnesota (the "City"), has
heretofore determined and declared that it is necessary and expedient to issue $8,170,000
aggregate principal amount General Obligation Tax Abatement Bonds, Series 2021A (the
"Bonds" or individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475 and Sections
469.1812 through 469.1815, particularly Section 469.1814, to finance the improvements of Lions
Park and related public improvements in the City (the “Project”); and
B. WHEREAS, the City has requested, in writing, that Independent School District
No. 624 (the “White Bear School District”) grant an abatement for the Project. The White Bear
School District has declined, in writing, to grant an abatement and therefore the City has the
authority to grant an abatement for up to 20 years; and
C. WHEREAS, the City has heretofore established a tax abatement program) the
"Program"), pursuant to the provisions of Minnesota Statutes, Sections 469.1812 through
469.1815, with respect to providing for the abatement of property taxes for a period of twenty
(20) years on various properties in the City, as described in the Resolution adopted by the City
Council on July 19, 2021, approving the Program (the "Abatement Resolution"); and
D. WHEREAS, the amount of the property taxes abated are estimated to be at least
equal to the principal of the Bonds and pursuant to the provisions of the Abatement Resolution,
Bond proceeds are to be expended to provide money to pay for costs of the Project; and
E. WHEREAS, the City has retained Baker Tilly Municipal Advisors, LLC, in St.
Paul, Minnesota ("Baker Tilly MA"), as its independent municipal advisor for the sale of the
Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with
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Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have
been solicited by Baker Tilly MA; and
F. WHEREAS, the proposals set forth on Exhibit A attached hereto were received
by the Administrator, or designee, at the offices of Baker Tilly MA at 11:00 A.M. this same day
pursuant to the Terms of Proposal established for the Bonds; and
G. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hugo,
Minnesota, as follows:
1. Acceptance of Proposal. The proposal of Robert W. Baird & Co., Inc. in
Milwaukee, Wisconsin (the "Purchaser"), to purchase the Bonds, in accordance with the Terms
of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of
$8,715,749.52, plus interest accrued to settlement, is hereby found, determined and declared to
be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to
the Purchaser. The Administrator is directed to retain the deposit of the Purchaser and to
forthwith return to the unsuccessful bidders their good faith checks or drafts.
2. Bond Terms.
(a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds
shall be dated October 7, 2021, as the date of original issue and shall be issued forthwith on or
after such date in fully registered form, shall be numbered from R-1 upward in the denomination
of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized
Denominations") and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2023 $235,000.00 2033 $430,000.00
2024 310,000.00 2034 435,000.00
2025 325,000.00 2035 440,000.00
2026 340,000.00 2036 450,000.00
2027 350,000.00 2037 455,000.00
2028 365,000.00 2038 465,000.00
2029 380,000.00 2039 475,000.00
2030 395,000.00 2040 485,000.00
2031 410,000.00 2041 495,000.00
2032 425,000.00 2042 505,000.00
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
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(b) Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book entry form
only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized
Denominations for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of
CEDE & CO., as the nominee (it or any nominee of the existing or a successor
Depository, the "Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds
shown on the books and records of the Participant (the "Beneficial Owner").
Without limiting the immediately preceding sentence, neither the City, nor the
Bond Registrar, shall have any such responsibility or obligation with respect to
(A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any
Participant, any Owner or any other person, other than the Depository, of any
notice with respect to the Bonds, including any notice of redemption, or (C) the
payment to any Participant, any Beneficial Owner or any other person, other than
the Depository, of any amount with respect to the principal of or premium, if any,
or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Registered Holder of any Bonds (the "Holder"). For purposes
of securing the vote or consent of any Holder under this Resolution, the City may,
however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds
are credited on the record date identified in a listing attached to the omnibus
proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall pay all principal of and
premium, if any, and interest on the Bonds only to the Holder or the Holders of
the Bonds as shown on the bond register, and all such payments shall be valid and
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effective to fully satisfy and discharge the City's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of
the existing Nominee, and subject to the transfer provisions in paragraph 10,
references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments with
respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the
Bond Registrar or City, as the case may be, to the Depository as provided in the
Letter of Representations to the Depository required by the Depository as a
condition to its acting as book-entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or
substitute thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role as book-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in book-entry
form shall be limited in principal amount to Authorized Denominations and shall
be effected by procedures by the Depository with the Participants for recording
and transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Bond Registrar with respect to
any consent or other action to be taken by Holders, the Depository shall consider
the date of receipt of notice requesting such consent or other action as the record
date for such consent or other action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or other action. The City or
the Bond Registrar shall, to the extent possible, give the Depository notice of such
special record date not less than fifteen calendar days in advance of such special
record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under this
Resolution and any paying agency/bond registrar agreement, shall agree to take
any actions necessary from time to time to comply with the requirements of the
Letter of Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in
paragraph 5, make a notation of the reduction in principal amount on the panel
provided on the Bond stating the amount so redeemed.
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(c) Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with respect
to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may
terminate the services of the Depository with respect to the Bond if it determines
that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the
City, is willing and able to assume such functions upon reasonable or customary
terms, or if the City determines that it is in the best interests of the City or the
Beneficial Owners of the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but may be registered
in whatever name or names the Holder of the Bonds shall designate at that time,
in accordance with paragraph 10. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 10, the
Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph
10.
(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall control.
3. Purpose. The Bonds shall provide funds to finance the Project. Pursuant to the
Abatement Resolution, the City's share of real estate taxes generated as a result of the Project and
the Program (the "Tax Abatements") have been pledged to the payment of principal on the
Bonds. The principal amount of the Bonds does not exceed the estimated amount of Tax
Abatements of $9,000,000. The total cost of the Project, which shall include all costs
enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount
of the Bonds. Proceeds of the Bonds shall be expended on costs or uses permitted by Minnesota
Statutes, Sections 469.1812 through 469.1815, and shall not be expended on any costs or devoted
to any other uses. The City covenants that it shall do all things and perform all acts required of it
to assure that work on the Project proceeds with due diligence to completion and that any and all
permits and studies required under law for the Project are obtained.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022,
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calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Year Interest Rate Maturity Year Interest Rate
2023 4.00% 2033 1.20%
2024 4.00 2034 1.30
2025 4.00 2035 2.00
2026 4.00 2036 2.00
2027 4.00 2037 2.00
2028 4.00 2038 2.00
2029 4.00 2039 2.00
2030 4.00 2040 2.00
2031 3.00 2041 2.00
2032 1.10 2042 2.00
5. Redemption. All Bonds maturing on February 1, 2032, and thereafter, shall be
subject to redemption and prepayment at the option of the City on February 1, 2031, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the maturities and the principal
amounts within each maturity to be redeemed shall be determined by the City; and if only part of
the Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds
having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. The City hereby appoints U.S. Bank National Association, in St.
Paul, Minnesota, to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
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Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF HUGO
R-_______ $_________
GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A
Interest Rate Maturity Date Date of Original Issue CUSIP
% February 1, October 7, 2021
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA (the "Issuer"),
certifies that it is indebted and for value received promises to pay to the registered owner
specified above, or registered assigns, in the manner hereinafter set forth, the principal amount
specified above, on the maturity date specified above, unless called for prepayment, and to pay
interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest
Payment Date"), commencing August 1, 2022, at the rate per annum specified above (calculated
on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has
been provided for. This Bond will bear interest from the most recent Interest Payment Date to
which interest has been paid or, if no interest has been paid, from the date of original issue
hereof. The principal of and premium, if any, on this Bond are payable upon presentation and
surrender hereof at the principal office of U.S. Bank National Association, in St. Paul, Minnesota
(the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by
the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft
mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on
the registration books of the Issuer maintained by the Bond Registrar and at the address
appearing thereon at the close of business on the fifteenth day of the calendar month next
preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely
paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record
Date, and shall be payable to the person who is the Holder hereof at the close of business on a
date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes
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available for payment of the defaulted interest. Notice of the Special Record Date shall be given
to Bondholders not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the United States of
America. So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be
made as provided in the Letter of Representations, as defined in the Resolution, and surrender of
this Bond shall not be required for payment of the redemption price upon a partial redemption of
this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds
may only be registered in the name of the Depository or its Nominee.
Optional Redemption. The Bonds of this issue (the "Bonds") maturing on February 1,
2032, and thereafter, are subject to redemption and prepayment at the option of the Issuer on
February 1, 2031, and on any date thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the
maturities and the principal amounts within each maturity to be redeemed shall be determined by
the Issuer; and if only part of the Bonds having a common maturity date are called for
prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar.
Bonds or portions thereof called for redemption shall be due and payable on the redemption date,
and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each affected Holder of the Bonds prior to
the date fixed for redemption.
Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed
in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying
the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the
addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear
interest on the specified redemption date, provided funds for their redemption have been duly
deposited.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption
of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided,
however, that only so much of the principal amount of such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's
attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
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principal amount equal to and in exchange for the unredeemed portion of the principal of the
Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $8,170,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and a resolution adopted by the City
Council on September 7, 2021 (the "Resolution"), for the purpose of providing to finance the
improvements of Lions Park and related public improvements in the City that benefits the
property for which property taxes are levied and/or abated as described in the Resolution. This
Bond is payable out of the General Obligation Tax Abatement Bonds Fund of the Issuer. This
Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and
full payment of its principal, premium, if any, and interest when the same become due, the full
faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided herein with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
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Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Hugo, Washington County, Minnesota, by its City
Council has caused this Bond to be executed on its behalf by the facsimile signatures of its
Mayor and its City Administrator, the corporate seal of the Issuer having been intentionally
omitted as permitted by law.
Date of Registration:
_____________________
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota,
Bond Registrar
By:
Authorized Signature
Registrable by: U.S. BANK NATIONAL
ASSOCIATION
Payable at: U.S. BANK NATIONAL
ASSOCIATION
CITY OF HUGO,
WASHINGTON COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
City Administrator
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ABBREVIATIONS
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 applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - ___________ as custodian for ______________
(Cust) (Minor)
under the _____________________ Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
___________________________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________________________________ the within Bond
and does hereby irrevocably constitute and appoint _________________ attorney to transfer the
Bond on the books kept for the registration thereof, with full power of substitution in the
premises.
Dated:_____________________ ___________________________
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
___________________________
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address: ________________________________________
________________________________________
________________________________________
(Include information for all joint owners if the Bond is held by joint account.)
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8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the
City; provided, as permitted by law, both signatures may be photocopied facsimiles and the
corporate seal has been omitted. In the event of disability or resignation or other absence of
either officer, the Bonds may be signed by the manual or facsimile signature of the officer who
may act on behalf of the absent or disabled officer. In case either officer whose signature or
facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if the officer had remained in office until delivery
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of
October 7, 2021. The Certificate of Authentication so executed on each Bond shall be
conclusive evidence that it has been authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee
or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a
like aggregate principal amount, having the same stated maturity and interest rate, as requested
by the transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
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All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or the Holder's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The City Administrator is
hereby authorized to negotiate and execute the terms of said agreement.
11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by
notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the City Administrator to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper application thereof.
15. Fund and Accounts. There is hereby established a special fund to be designated
"General Obligation Tax Abatement Bonds Fund" (the "Fund") to be administered and
maintained by the City Administrator as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the City. The Fund shall be maintained in
53590415v1
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the manner herein specified until all of the Bonds and interest thereon have been fully paid and
the City has been fully reimbursed from the pledge of Tax Abatements for payment of the
principal on the Bonds paid by the City from taxes levied on property in the City other than the
Project. There shall be maintained in the Fund the following separate accounts:
(a) Construction Account. To the Construction Account there shall be credited the
proceeds of the sale of the Bonds. From the Construction Account there shall be paid all costs
and expenses of the Project, including the cost of any construction contracts heretofore let and all
other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section
475.65. Moneys in the Construction Account shall be used for no other purpose except as
otherwise provided by law. Proceeds of the Bonds may be used to the extent necessary to pay
interest on the Bonds due prior to the anticipated date of commencement of the collection of Tax
Abatements and taxes herein levied or covenanted to be levied and if upon completion of the
Project there shall remain any unexpended balance in the Construction Account, the balance
shall be transferred to the Debt Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby irrevocably
appropriated and pledged, and there shall be credited (i) Tax Abatements in an amount sufficient
to pay the annual principal payments on the Bonds; (ii) any collections of all taxes herein and
hereafter levied for the payment of the interest on the Bonds; (iii) all funds remaining in the
Construction Account after completion of the Project and payment of the costs thereof; (iv) all
investment earnings on funds held in the Debt Service Account; and (v) any and all other moneys
which are properly available and are appropriated by the governing body of the City to the Debt
Service Account. The Debt Service Account shall be used solely to pay the principal and interest
and any premiums for redemption of the Bonds.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Construction
Account or Debt Service Account (or any other City account which will be used to pay principal
or interest to become due on the bonds payable therefrom) in excess of amounts which under
then-applicable federal arbitrage regulations may be invested without regard to yield shall not be
invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage
regulations on such investments after taking into account any applicable "temporary periods" or
"minor portion" made available under the federal arbitrage regulations. Money in the Fund shall
not be invested in obligations or deposits issued by, guaranteed by or insured by the United
States or any agency or instrumentality thereof if and to the extent that such investment would
cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the
Internal Revenue Code of 1986, as amended (the "Code").
16. Tax Abatements; Use of Tax Abatements. The Council has adopted the
Abatement Resolution and has thereby approved the Tax Abatements, including the pledge
thereof to the payment of principal of the Bonds. As provided in the Abatement Resolution, the
estimated total amount of Tax Abatements, if received as estimated for the full maximum term
53590415v1
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thereof, is $9,000,000, and therefore the principal amount of the Bonds does not exceed the
maximum projected amount of the Tax Abatements. The Council hereby confirms the
Abatement Resolution, which is hereby incorporated as though set forth herein.
17. Tax Levy; Coverage Test. To provide moneys for payment of the interest on the
Bonds, 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 and collected with and as part of other
general property taxes in the City for the years and in the amounts as follows:
Year of Tax Levy Year of Tax Collection Amount
See Attached Tax Levy Schedule
The tax levies are such that if collected in full they, together with estimated collections of
Tax Abatements, will produce at least five percent in excess of the amount needed to meet when
due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so
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, Subdivision 3.
18. General Obligation Pledge. For the prompt and full payment of the principal of
and interest on the Bonds as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds
payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City
which are available for such purpose, and such other funds may be reimbursed without interest
from the Debt Service Account when a sufficient balance is available therein.
19. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar 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 Bond
Registrar 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 Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given. 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
suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date.
53590415v1
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20. Compliance With Reimbursement Bond Regulations. The provisions of this
paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(a) Not later than sixty days after the date of payment of a Reimbursement
Expenditure, the City (or person designated to do so on behalf of the City) has made or will have
made a written declaration of the City's official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the Cit y and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not
exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of
Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the
proceeds of the Bonds.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of
the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for
each Reimbursement Expenditure shall and will be made forthwith following (but not prior to)
the issuance of the Bonds, and not later than three years after the later of (i) the date of the
payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the
Reimbursement Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a writing that evidences the
City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30
days after the Bonds are issued, shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating
in effect that such action will not impair the tax-exempt status of the Bonds.
21. Certificate of Registration. A certified copy of this resolution is hereby directed
to be filed with the County Auditor of Washington County, Minnesota, together with such other
information as the County Auditor shall require, and to obtain the County Auditor's Certificate
53590415v1
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that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy
required by law has been made.
22. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described:
(a) Provide or cause to be provided to the Municipal Securities Rulemaking Board
(the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual
financial information and operating data in accordance with the Undertaking. The City reserves
the right to modify from time to time the terms of the Undertaking as provided therein.
(b) Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10) business days after the occurrence of
the event, in accordance with the Undertaking.
(c) Provide or cause to be provided to the MSRB notice of a failure by the City to
provide the annual financial information with respect to the City described in the Undertaking, in
not more than ten (10) business days following such occurrence.
(d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
The Mayor and City Administrator of the City, or any other officer of the City authorized
to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of
the City the Undertaking in substantially the form presented to the City Council subject to such
modifications thereof or additions thereto as are (i) consistent with the requirements under the
Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
23. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are 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.
24. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby
covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them
to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such
a manner as to cause the Bonds to be "private activity bonds", other than qualified 501(c)(3)
bonds, within the meaning of Sections 103 and 141 through 150 of the Code.
53590415v1
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25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(i) requirements relating to temporary periods for investments, (ii) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment
earnings to the United States. The City expects to satisfy the twenty-four month exemption for
gross proceeds of the Bonds as provided in Section 1.148-7(e) of the Regulations. The Mayor
and/or the Administrator, are hereby authorized and directed to make such elections as to
arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or
desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and
treated as, elections of the City.
26. Designation of Qualified Tax-Exempt Obligations; Issuance Limit. In order to
qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)
of the Code, the City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2021 will
not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the City during this calendar
year 2021 have been designated for purposes of Section 265(b)(3) of the Code; and
(f) the aggregate face amount of the Bonds does not exceed $10,000,000.
The City shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this paragraph.
27. Official Statement. The Official Statement relating to the Bonds prepared and
distributed by Baker Tilly MA is hereby approved and the officers of the City are authorized in
connection with the delivery of the Bonds to sign such certificates as may be necessary with
respect to the completeness and accuracy of the Official Statement.
28. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
29. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
53590415v1
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The motion for the adoption of the foregoing resolution was duly seconded by member
_____________ and, after a full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
53590415v1
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting City Clerk of the City of Hugo,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council, duly called and held on the
date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding
the sale of $8,170,000 General Obligation Tax Abatement Bonds, Series 2021A.
WITNESS my hand on September ____, 2021.
________________________________
City Clerk
53590415v1
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EXHIBIT A
PROPOSALS
53590415v1
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EXHIBIT B
TAX LEVY SCHEDULE
$8,170,000
City of Hugo, Minnesota
General Obligation Tax Abatement Bonds, Series 2021A
Post Sale
Post-Sale Tax Levies
Principal
Payment Date
Levy Amount Levy/Collect Years
02/01/2023 303,720.18 2021/2022
02/01/2024 227,379.50 2022/2023
02/01/2025 215,109.50 2023/2024
02/01/2026 202,209.50 2024/2025
02/01/2027 188,429.50 2025/2026
02/01/2028 174,479.50 2026/2027
02/01/2029 159,899.50 2027/2028
02/01/2030 144,689.50 2028/2029
02/01/2031 128,849.50 2029/2030
02/01/2032 116,684.50 2030/2031
02/01/2033 112,025.75 2031/2032
02/01/2034 106,857.75 2032/2033
02/01/2035 101,170.00 2033/2034
02/01/2036 92,430.00 2034/2035
02/01/2037 83,230.00 2035/2036
02/01/2038 74,175.00 2036/2037
02/01/2039 64,910.00 2037/2038
02/01/2040 55,435.00 2038/2039
02/01/2041 45,750.00 2039/2040
02/01/2042 35,855.00 2040/2041
Total $2,633,289.18 -
53590415v1
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53590415v1
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL
CITY OF HUGO, MINNESOTA
HELD: September 7, 2021
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of Hugo, Washington County, Minnesota, was duly called and held at the City Hall
on September 7, 2021, at 7:00 P.M., for the purpose, in part, of authorizing issuance and
awarding the sale of $8,170,000 General Obligation Tax Abatement Bonds, Series 2021A.
The following members were present:
and the following were absent:
Member _________ introduced the following resolution and moved its adoption.
RESOLUTION ACCEPTING OFFER ON THE SALE OF $8,170,000 GENERAL
OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A, PROVIDING FOR THEIR
ISSUANCE AND PLEDGING TAX ABATEMENTS AND LEVYING A TAX FOR THE
SECURITY AND PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Hugo, Minnesota (the "City"), has
heretofore determined and declared that it is necessary and expedient to issue $8,170,000
aggregate principal amount General Obligation Tax Abatement Bonds, Series 2021A (the
"Bonds" or individually a "Bond"), pursuant to Minnesota Statutes, Chapter 475 and Sections
469.1812 through 469.1815, particularly Section 469.1814, to finance the improvements of Lions
Park and related public improvements in the City (the “Project”); and
B. WHEREAS, the City has requested, in writing, that Independent School District
No. 624 (the “White Bear School District”) grant an abatement for the Project. The White Bear
School District has declined, in writing, to grant an abatement and therefore the City has the
authority to grant an abatement for up to 20 years; and
C. WHEREAS, the City has heretofore established a tax abatement program) the
"Program"), pursuant to the provisions of Minnesota Statutes, Sections 469.1812 through
469.1815, with respect to providing for the abatement of property taxes for a period of twenty
(20) years on various properties in the City, as described in the Resolution adopted by the City
Council on July 19, 2021, approving the Program (the "Abatement Resolution"); and
D. WHEREAS, the amount of the property taxes abated are estimated to be at least
equal to the principal of the Bonds and pursuant to the provisions of the Abatement Resolution,
Bond proceeds are to be expended to provide money to pay for costs of the Project; and
E. WHEREAS, the City has retained Baker Tilly Municipal Advisors, LLC, in St.
Paul, Minnesota ("Baker Tilly MA"), as its independent municipal advisor for the sale of the
Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with
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Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have
been solicited by Baker Tilly MA; and
F. WHEREAS, the proposals set forth on Exhibit A attached hereto were received
by the Administrator, or designee, at the offices of Baker Tilly MA at 11:00 A.M. this same day
pursuant to the Terms of Proposal established for the Bonds; and
G. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hugo,
Minnesota, as follows:
1. Acceptance of Proposal. The proposal of Robert W. Baird & Co., Inc. in
Milwaukee, Wisconsin (the "Purchaser"), to purchase the Bonds, in accordance with the Terms
of Proposal, at the rates of interest hereinafter set forth, and to pay therefor the sum of
$8,715,749.52, plus interest accrued to settlement, is hereby found, determined and declared to
be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to
the Purchaser. The Administrator is directed to retain the deposit of the Purchaser and to
forthwith return to the unsuccessful bidders their good faith checks or drafts.
2. Bond Terms.
(a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds
shall be dated October 7, 2021, as the date of original issue and shall be issued forthwith on or
after such date in fully registered form, shall be numbered from R-1 upward in the denomination
of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized
Denominations") and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2023 $235,000.00 2033 $430,000.00
2024 310,000.00 2034 435,000.00
2025 325,000.00 2035 440,000.00
2026 340,000.00 2036 450,000.00
2027 350,000.00 2037 455,000.00
2028 365,000.00 2038 465,000.00
2029 380,000.00 2039 475,000.00
2030 395,000.00 2040 485,000.00
2031 410,000.00 2041 495,000.00
2032 425,000.00 2042 505,000.00
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
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(b) Book Entry Only System. The Depository Trust Company, a limited purpose
trust company organized under the laws of the State of New York or any of its successors or its
successors to its functions hereunder (the "Depository") will act as securities depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book entry form
only (the "Book Entry Only Period"), shall at all times be in the form of a separate
single fully registered Bond for each maturity of the Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized
Denominations for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of
CEDE & CO., as the nominee (it or any nominee of the existing or a successor
Depository, the "Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds
shown on the books and records of the Participant (the "Beneficial Owner").
Without limiting the immediately preceding sentence, neither the City, nor the
Bond Registrar, shall have any such responsibility or obligation with respect to
(A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any
Participant, any Owner or any other person, other than the Depository, of any
notice with respect to the Bonds, including any notice of redemption, or (C) the
payment to any Participant, any Beneficial Owner or any other person, other than
the Depository, of any amount with respect to the principal of or premium, if any,
or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Registered Holder of any Bonds (the "Holder"). For purposes
of securing the vote or consent of any Holder under this Resolution, the City may,
however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds
are credited on the record date identified in a listing attached to the omnibus
proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall pay all principal of and
premium, if any, and interest on the Bonds only to the Holder or the Holders of
the Bonds as shown on the bond register, and all such payments shall be valid and
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effective to fully satisfy and discharge the City's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of
the existing Nominee, and subject to the transfer provisions in paragraph 10,
references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments with
respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the
Bond Registrar or City, as the case may be, to the Depository as provided in the
Letter of Representations to the Depository required by the Depository as a
condition to its acting as book-entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or
substitute thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role as book-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in book-entry
form shall be limited in principal amount to Authorized Denominations and shall
be effected by procedures by the Depository with the Participants for recording
and transferring the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Bond Registrar with respect to
any consent or other action to be taken by Holders, the Depository shall consider
the date of receipt of notice requesting such consent or other action as the record
date for such consent or other action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or other action. The City or
the Bond Registrar shall, to the extent possible, give the Depository notice of such
special record date not less than fifteen calendar days in advance of such special
record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under this
Resolution and any paying agency/bond registrar agreement, shall agree to take
any actions necessary from time to time to comply with the requirements of the
Letter of Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in
paragraph 5, make a notation of the reduction in principal amount on the panel
provided on the Bond stating the amount so redeemed.
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(c) Termination of Book-Entry Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with respect
to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may
terminate the services of the Depository with respect to the Bond if it determines
that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the
City, is willing and able to assume such functions upon reasonable or customary
terms, or if the City determines that it is in the best interests of the City or the
Beneficial Owners of the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but may be registered
in whatever name or names the Holder of the Bonds shall designate at that time,
in accordance with paragraph 10. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 10, the
Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph
10.
(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall control.
3. Purpose. The Bonds shall provide funds to finance the Project. Pursuant to the
Abatement Resolution, the City's share of real estate taxes generated as a result of the Project and
the Program (the "Tax Abatements") have been pledged to the payment of principal on the
Bonds. The principal amount of the Bonds does not exceed the estimated amount of Tax
Abatements of $9,000,000. The total cost of the Project, which shall include all costs
enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount
of the Bonds. Proceeds of the Bonds shall be expended on costs or uses permitted by Minnesota
Statutes, Sections 469.1812 through 469.1815, and shall not be expended on any costs or devoted
to any other uses. The City covenants that it shall do all things and perform all acts required of it
to assure that work on the Project proceeds with due diligence to completion and that any and all
permits and studies required under law for the Project are obtained.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022,
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calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
Maturity Year Interest Rate Maturity Year Interest Rate
2023 4.00% 2033 1.20%
2024 4.00 2034 1.30
2025 4.00 2035 2.00
2026 4.00 2036 2.00
2027 4.00 2037 2.00
2028 4.00 2038 2.00
2029 4.00 2039 2.00
2030 4.00 2040 2.00
2031 3.00 2041 2.00
2032 1.10 2042 2.00
5. Redemption. All Bonds maturing on February 1, 2032, and thereafter, shall be
subject to redemption and prepayment at the option of the City on February 1, 2031, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the maturities and the principal
amounts within each maturity to be redeemed shall be determined by the City; and if only part of
the Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common maturity date, the Bond
Registrar prior to giving notice of redemption shall assign to each Bond having a common
maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in
its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected; provided, however,
that only so much of the principal amount of each such Bond of a denomination of more than
$5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If
a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the
City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds
having the same stated maturity and interest rate and of any Authorized Denomination or
Denominations, as requested by the Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. The City hereby appoints U.S. Bank National Association, in St.
Paul, Minnesota, to act as bond registrar and transfer agent with respect to the Bonds (the "Bond
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Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all
pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith.
The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12.
7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of
Authentication, the form of Assignment and the registration information thereon, shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF HUGO
R-_______ $_________
GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A
Interest Rate Maturity Date Date of Original Issue CUSIP
% February 1, October 7, 2021
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA (the "Issuer"),
certifies that it is indebted and for value received promises to pay to the registered owner
specified above, or registered assigns, in the manner hereinafter set forth, the principal amount
specified above, on the maturity date specified above, unless called for prepayment, and to pay
interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest
Payment Date"), commencing August 1, 2022, at the rate per annum specified above (calculated
on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has
been provided for. This Bond will bear interest from the most recent Interest Payment Date to
which interest has been paid or, if no interest has been paid, from the date of original issue
hereof. The principal of and premium, if any, on this Bond are payable upon presentation and
surrender hereof at the principal office of U.S. Bank National Association, in St. Paul, Minnesota
(the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by
the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft
mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on
the registration books of the Issuer maintained by the Bond Registrar and at the address
appearing thereon at the close of business on the fifteenth day of the calendar month next
preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely
paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record
Date, and shall be payable to the person who is the Holder hereof at the close of business on a
date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes
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available for payment of the defaulted interest. Notice of the Special Record Date shall be given
to Bondholders not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the United States of
America. So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be
made as provided in the Letter of Representations, as defined in the Resolution, and surrender of
this Bond shall not be required for payment of the redemption price upon a partial redemption of
this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds
may only be registered in the name of the Depository or its Nominee.
Optional Redemption. The Bonds of this issue (the "Bonds") maturing on February 1,
2032, and thereafter, are subject to redemption and prepayment at the option of the Issuer on
February 1, 2031, and on any date thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the
maturities and the principal amounts within each maturity to be redeemed shall be determined by
the Issuer; and if only part of the Bonds having a common maturity date are called for
prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar.
Bonds or portions thereof called for redemption shall be due and payable on the redemption date,
and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each affected Holder of the Bonds prior to
the date fixed for redemption.
Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed
in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying
the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the
addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear
interest on the specified redemption date, provided funds for their redemption have been duly
deposited.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption
of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided,
however, that only so much of the principal amount of such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's
attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
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principal amount equal to and in exchange for the unredeemed portion of the principal of the
Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $8,170,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination and redemption privilege issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and a resolution adopted by the City
Council on September 7, 2021 (the "Resolution"), for the purpose of providing to finance the
improvements of Lions Park and related public improvements in the City that benefits the
property for which property taxes are levied and/or abated as described in the Resolution. This
Bond is payable out of the General Obligation Tax Abatement Bonds Fund of the Issuer. This
Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and
full payment of its principal, premium, if any, and interest when the same become due, the full
faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in
whose name this Bond is registered as the owner hereof for the purpose of receiving payment as
herein provided (except as otherwise provided herein with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond
Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security unless the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
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Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law, and that this
Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof
and the date of its issuance and delivery to the original purchaser, does not exceed any
constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Hugo, Washington County, Minnesota, by its City
Council has caused this Bond to be executed on its behalf by the facsimile signatures of its
Mayor and its City Administrator, the corporate seal of the Issuer having been intentionally
omitted as permitted by law.
Date of Registration:
_____________________
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota,
Bond Registrar
By:
Authorized Signature
Registrable by: U.S. BANK NATIONAL
ASSOCIATION
Payable at: U.S. BANK NATIONAL
ASSOCIATION
CITY OF HUGO,
WASHINGTON COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
City Administrator
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ABBREVIATIONS
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 applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants in common
UTMA - ___________ as custodian for ______________
(Cust) (Minor)
under the _____________________ Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
___________________________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________________________________ the within Bond
and does hereby irrevocably constitute and appoint _________________ attorney to transfer the
Bond on the books kept for the registration thereof, with full power of substitution in the
premises.
Dated:_____________________ ___________________________
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
___________________________
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address: ________________________________________
________________________________________
________________________________________
(Include information for all joint owners if the Bond is held by joint account.)
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8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of
the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the
City; provided, as permitted by law, both signatures may be photocopied facsimiles and the
corporate seal has been omitted. In the event of disability or resignation or other absence of
either officer, the Bonds may be signed by the manual or facsimile signature of the officer who
may act on behalf of the absent or disabled officer. In case either officer whose signature or
facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if the officer had remained in office until delivery
9. Authentication. No Bond shall be valid or obligatory for any purpose or be
entitled to any security or benefit under this resolution unless a Certificate of Authentication on
the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of
October 7, 2021. The Certificate of Authentication so executed on each Bond shall be
conclusive evidence that it has been authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the principal
office of the Bond Registrar a bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds
and the registration of transfers of Bonds entitled to be registered or transferred as herein
provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the
City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee
or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a
like aggregate principal amount, having the same stated maturity and interest rate, as requested
by the transferor; provided, however, that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
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All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general
obligations of the City evidencing the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or
be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar,
duly executed by the Holder thereof or the Holder's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in any
agreement with the Bond Registrar, including regulations which permit the Bond Registrar to
close its transfer books between record dates and payment dates. The City Administrator is
hereby authorized to negotiate and execute the terms of said agreement.
11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in
exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each
Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered (the "Holder") on the registration books of the City maintained by the Bond Registrar
and at the address appearing thereon at the close of business on the fifteenth day of the calendar
month next preceding such Interest Payment Date (the "Regular Record Date"). Any such
interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder thereof at the
close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever
money becomes available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the
person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by
notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the City Administrator to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper application thereof.
15. Fund and Accounts. There is hereby established a special fund to be designated
"General Obligation Tax Abatement Bonds Fund" (the "Fund") to be administered and
maintained by the City Administrator as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the City. The Fund shall be maintained in
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the manner herein specified until all of the Bonds and interest thereon have been fully paid and
the City has been fully reimbursed from the pledge of Tax Abatements for payment of the
principal on the Bonds paid by the City from taxes levied on property in the City other than the
Project. There shall be maintained in the Fund the following separate accounts:
(a) Construction Account. To the Construction Account there shall be credited the
proceeds of the sale of the Bonds. From the Construction Account there shall be paid all costs
and expenses of the Project, including the cost of any construction contracts heretofore let and all
other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section
475.65. Moneys in the Construction Account shall be used for no other purpose except as
otherwise provided by law. Proceeds of the Bonds may be used to the extent necessary to pay
interest on the Bonds due prior to the anticipated date of commencement of the collection of Tax
Abatements and taxes herein levied or covenanted to be levied and if upon completion of the
Project there shall remain any unexpended balance in the Construction Account, the balance
shall be transferred to the Debt Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby irrevocably
appropriated and pledged, and there shall be credited (i) Tax Abatements in an amount sufficient
to pay the annual principal payments on the Bonds; (ii) any collections of all taxes herein and
hereafter levied for the payment of the interest on the Bonds; (iii) all funds remaining in the
Construction Account after completion of the Project and payment of the costs thereof; (iv) all
investment earnings on funds held in the Debt Service Account; and (v) any and all other moneys
which are properly available and are appropriated by the governing body of the City to the Debt
Service Account. The Debt Service Account shall be used solely to pay the principal and interest
and any premiums for redemption of the Bonds.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To
this effect, any proceeds of the Bonds and any sums from time to time held in the Construction
Account or Debt Service Account (or any other City account which will be used to pay principal
or interest to become due on the bonds payable therefrom) in excess of amounts which under
then-applicable federal arbitrage regulations may be invested without regard to yield shall not be
invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage
regulations on such investments after taking into account any applicable "temporary periods" or
"minor portion" made available under the federal arbitrage regulations. Money in the Fund shall
not be invested in obligations or deposits issued by, guaranteed by or insured by the United
States or any agency or instrumentality thereof if and to the extent that such investment would
cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the
Internal Revenue Code of 1986, as amended (the "Code").
16. Tax Abatements; Use of Tax Abatements. The Council has adopted the
Abatement Resolution and has thereby approved the Tax Abatements, including the pledge
thereof to the payment of principal of the Bonds. As provided in the Abatement Resolution, the
estimated total amount of Tax Abatements, if received as estimated for the full maximum term
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thereof, is $9,000,000, and therefore the principal amount of the Bonds does not exceed the
maximum projected amount of the Tax Abatements. The Council hereby confirms the
Abatement Resolution, which is hereby incorporated as though set forth herein.
17. Tax Levy; Coverage Test. To provide moneys for payment of the interest on the
Bonds, 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 and collected with and as part of other
general property taxes in the City for the years and in the amounts as follows:
Year of Tax Levy Year of Tax Collection Amount
See Attached Tax Levy Schedule
The tax levies are such that if collected in full they, together with estimated collections of
Tax Abatements, will produce at least five percent in excess of the amount needed to meet when
due the principal and interest payments on the Bonds. The tax levies shall be irrepealable so
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, Subdivision 3.
18. General Obligation Pledge. For the prompt and full payment of the principal of
and interest on the Bonds as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds
payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City
which are available for such purpose, and such other funds may be reimbursed without interest
from the Debt Service Account when a sufficient balance is available therein.
19. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar 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 Bond
Registrar 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 Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given. 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
suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if
notice of redemption as herein required has been duly provided for, to such earlier redemption
date.
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20. Compliance With Reimbursement Bond Regulations. The provisions of this
paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(a) Not later than sixty days after the date of payment of a Reimbursement
Expenditure, the City (or person designated to do so on behalf of the City) has made or will have
made a written declaration of the City's official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not
exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of
Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the
proceeds of the Bonds.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of
the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for
each Reimbursement Expenditure shall and will be made forthwith following (but not prior to)
the issuance of the Bonds, and not later than three years after the later of (i) the date of the
payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the
Reimbursement Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a writing that evidences the
City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30
days after the Bonds are issued, shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Bonds stating
in effect that such action will not impair the tax-exempt status of the Bonds.
21. Certificate of Registration. A certified copy of this resolution is hereby directed
to be filed with the County Auditor of Washington County, Minnesota, together with such other
information as the County Auditor shall require, and to obtain the County Auditor's Certificate
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that the Bonds have been entered in the County Auditor's Bond Register and that the tax levy
required by law has been made.
22. Continuing Disclosure. The City is the sole obligated person with respect to the
Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"),
promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the
Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the
"Undertaking") hereinafter described:
(a) Provide or cause to be provided to the Municipal Securities Rulemaking Board
(the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual
financial information and operating data in accordance with the Undertaking. The City reserves
the right to modify from time to time the terms of the Undertaking as provided therein.
(b) Provide or cause to be provided to the MSRB notice of the occurrence of certain
events with respect to the Bonds in not more than ten (10) business days after the occurrence of
the event, in accordance with the Undertaking.
(c) Provide or cause to be provided to the MSRB notice of a failure by the City to
provide the annual financial information with respect to the City described in the Undertaking, in
not more than ten (10) business days following such occurrence.
(d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under
the covenants.
The Mayor and City Administrator of the City, or any other officer of the City authorized
to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of
the City the Undertaking in substantially the form presented to the City Council subject to such
modifications thereof or additions thereto as are (i) consistent with the requirements under the
Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers.
23. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and records of the City relating to the
Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are 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.
24. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby
covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them
to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such
a manner as to cause the Bonds to be "private activity bonds", other than qualified 501(c)(3)
bonds, within the meaning of Sections 103 and 141 through 150 of the Code.
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25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(i) requirements relating to temporary periods for investments, (ii) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment
earnings to the United States. The City expects to satisfy the twenty-four month exemption for
gross proceeds of the Bonds as provided in Section 1.148-7(e) of the Regulations. The Mayor
and/or the Administrator, are hereby authorized and directed to make such elections as to
arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or
desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and
treated as, elections of the City.
26. Designation of Qualified Tax-Exempt Obligations; Issuance Limit. In order to
qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)
of the Code, the City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for
purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax-exempt obligations (other than private
activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will
be issued by the City (and all entities treated as one issuer with the City, and all subordinate
entities whose obligations are treated as issued by the City) during this calendar year 2021 will
not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the City during this calendar
year 2021 have been designated for purposes of Section 265(b)(3) of the Code; and
(f) the aggregate face amount of the Bonds does not exceed $10,000,000.
The City shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this paragraph.
27. Official Statement. The Official Statement relating to the Bonds prepared and
distributed by Baker Tilly MA is hereby approved and the officers of the City are authorized in
connection with the delivery of the Bonds to sign such certificates as may be necessary with
respect to the completeness and accuracy of the Official Statement.
28. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
29. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
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The motion for the adoption of the foregoing resolution was duly seconded by member
_____________ and, after a full discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting City Clerk of the City of Hugo,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council, duly called and held on the
date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding
the sale of $8,170,000 General Obligation Tax Abatement Bonds, Series 2021A.
WITNESS my hand on September ____, 2021.
________________________________
City Clerk
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EXHIBIT A
PROPOSALS
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EXHIBIT B
TAX LEVY SCHEDULE
$8,170,000
City of Hugo, Minnesota
General Obligation Tax Abatement Bonds, Series 2021A
Post Sale
Post-Sale Tax Levies
Principal
Payment Date
Levy Amount Levy/Collect Years
02/01/2023 303,720.18 2021/2022
02/01/2024 227,379.50 2022/2023
02/01/2025 215,109.50 2023/2024
02/01/2026 202,209.50 2024/2025
02/01/2027 188,429.50 2025/2026
02/01/2028 174,479.50 2026/2027
02/01/2029 159,899.50 2027/2028
02/01/2030 144,689.50 2028/2029
02/01/2031 128,849.50 2029/2030
02/01/2032 116,684.50 2030/2031
02/01/2033 112,025.75 2031/2032
02/01/2034 106,857.75 2032/2033
02/01/2035 101,170.00 2033/2034
02/01/2036 92,430.00 2034/2035
02/01/2037 83,230.00 2035/2036
02/01/2038 74,175.00 2036/2037
02/01/2039 64,910.00 2037/2038
02/01/2040 55,435.00 2038/2039
02/01/2041 45,750.00 2039/2040
02/01/2042 35,855.00 2040/2041
Total $2,633,289.18 -
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