HomeMy WebLinkAbout85-136 CERTIFICATION=OF M~ZNUTES RELATING TO
$1,050,000 GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 1985C"
Issuer: City of Lakeville, Minnesota
Governing Body:.. City.Councl
Kind, date, time. and place of meeting: A special meeting held
December 18, 1985, at 7x00 o`clock P.M., at City: Hall
Members. present: N.-Enright,. P. Harvey, R. Nelson, E. Sindt &
Mayor D. Zaun
Members absent:None
Document Attached:
Minutes. of said meeting,(pages)e
RESOLUTION NO. 85-136
RESOLUTION AUTHORIZING LSSUANCE, PRESCRIBING FORM AND
DETAILS AND PROVIDING FOR.PAYMENT OF $1,050,000
GENERAL OBLIGATION TAX. INCREMENT BONDS, SERIES 1985C.
I, the undersigned, being the fully qualified and
acting recording officer of .the public corporation issuing the
Bonds referred to in the title of the certificate, certifying ;
.that the documents attached hereto,.. as described above, have
been carefully co-pared with. the original records of said
corporation in my legal custody, from which they have. been
transcribe~~; that said documents are a correct and complete
transcript of the.. minutes o£ the governing body of said
carporation,.and correct. and complete copies of all resolutions
and other actions. taken and of all documents approved. by the
governing body-at said meeting, so far as they. relate to said
Bonds; and that said meeting was. duly held by the governing
body at the time and place and was attended throughout by the
members indicated above, pursuant to call an~3 notice of such
meeting given as required by law.
'WITNESS my hand officially as such recording officer
this 1g~; day of December,. 1985. - "
~~a€'~c.,_.,,~
Signature
Patrick McGarvey,
- City Clerk-Administrator
The Clerk presented. to the Council affidavits showing
publication in the official newspaper and the Commercial West
of a notice of sale of $1,050,000 General..Obligatian Tax
Increment. Bonds., Series 1985C, of the City,: for which sealed
bids were to be received and considered at this meeting in
accordance with. the resolution adopted. by the City Council on
December 2, 1985. Said affidavits were examined and found
satisfactory and directed to be placed on file in the office of
the City Clerk.
The. Clerk then announced that. 4 sealed bids
had bean received pursuant to said notice of .call .fore bids, -
which bids had been opened, read. and tabulated,. and the highest.
and best bid of each bidder was found to be as follows:
• Bid For Interest Total Interest Cost
Name of Bidder Principal Rates -Net Average Rate.:
See. Attached
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SPRINGSTED
.INCORPORATED. .
PUBLIC FINANCE
ADVISORS
~I,OSO,ooo
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985C
CITY_OF LAKEVILLE, MINNESOTA
AWARD: NORINEST INVESTMENT SERVICES "
and Associates
SALES December 18, ! 985 Moody's Rating: A
Interest Netlnterest
Bidder Rates Price Cost & Rate
NORWEST INVESTMENT SERVICES 6.40% 1989 $1,038,975.00 $545,567,92
American National Bank & Trust 6.60% 1990 (7.3526%)
Company of Saint Paul 6,80% 1991
Kidder, Peabody & Company, Incorporated. 7.00% 1992
Dougherty, Dawkins, Strand & Yost 7.10% 1993
Incorporated - 7.25% 1994
Dean Witter Reynolds Incorporated 7.40% 1995
F & M Marquette National Bank 7.60% 1996
ALLISON-WILLIAMS COMPANY 6.50% f989 $1,036,875.00 $544,435.#2
Piper, Jaffray & Hopwood Incorporated 6.70% 1990 (7.4721%)
Moore, Juran & Company,. Incorporated b.9090 199 f
7.10% 1992
7,259'0 1993
• 7.40% 1994
7.50°,G 1995
7:.60%0 1996
FIRST NATIONAL BANK OF MINNEAPOLIS 6.40°~ 1989 $1,035,300,00 $555,135.83
Duran & Moody, Incorporated 6..60% 1990 (7,4816%)
Craig-Hallum, Incorporated 6.80% 1991
M.H. P~ovick & Company, Incorporated 7.00% 1992
7.20% 1993
7.40% 1994
.7.50% 1995
7.70% 1996
CRONIN & COMPANY, INCORPORATED 6,50% 1989 $1,035,825.00' $557,213.75
DAIN BOSWORTH INCORPORATED 6.70% 1990 (7.5096%)
MILLER SECURITIES, INCORPORATED 6.90% I99I
7.1096 1992
7.25% 1993
7.40% 1994
7.50% 1995
7.70°6 1996
These Bonds are being reoffered at Par.
Bg1: 8.42
Average Maturity: 7.07 Years
` 800 Osborn Building, Saint Paul, Minnesota 55102 (612) 222-4241
250 North Sunnyslope Road, Brookfield, Wisconsin 53005 td141782-8222
Councilmember Sindt introduced the
• following resolution and :moved its adoption:
RESOLUTION NO. $5-136
RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING FORM AND
DETAILS AND. PROVIDING FOR PAYMENT OF $1,0.50,00.0
GENERAL OBLIGATION TAX INCREMENT BONDS, .SERIES 1985C.
BE IT RESOLVED by the City Council of the. City of
Lakeville, Minnesota (the City), as follows:
Section 1. Project and Plan..
1.01. The Housing .and Redevelopment Authority of
Lakeville (the. Authority). has duly established a redevelopment
project (the Project). pursuant to Minnesota Statutes, Chapter
462,. in and for the City, known as the I-35 Redevelopment
Praject No. 2 and has establishedtherein.a tax increment
financing district (the District) known as Tax Increment
Financing District No. 2. This Council and the Authority have
approved a.Redevelopment.Plan for the Project (the
Redevelapment Plan) and a Financing Planfor the District (the
Financing Plan) (together, the Redevelopment .Plan-and the
Financing Plan are hereinafter .referred to as the Plan); all
pursuant to and in accordance with Minnesota.Statutes,. Sections
462.411 et seq. and 273.71 to 273.78 (the Acts).
1.02. The Project constitutes a "redevelopment
project" as defined in Minnesota Statutes, Section .462.421,
Subd. l3, and the District constitutes an "economic development
tax increment financingdistrict" within the meaning of
..Minnesota Statutes, Chapter 273, and thus the Authority has
authority under. said Chapters 273 and 462 toexpend ad valorem
tax increments derived from the District to pay public costs
incurred or to be_incurred by the Authority in aid of the
Project, or to pay the principal of and interest on bonds
issued to finance. such costs, in accordance. with said Plan, and
the City has authority to issue bonds to provide funds for the
public costs of the Project, as provided in. Section 273..77(a).
1.03. The City and the Authority will enter 'into,;
before°the date.-of issuance of any bonds, a Cooperation
Agreement (the Cooperation Agreement), whereby the City. will `
agree to issue and sell. its general obligation tax increment
bonds to provide the.. funds needed for the public"costs and
whereby the Authority will agree to :apply. such funds to the'
costs of implementing and carrying out the:Project in
accordance with-the Plan and .whereby the Authority .will pay to
the City each year sufficient tax increment received from-the
• District to enable the. City to pay all. principal and interest'
when due on said bonds. The Mayor and City Clerk are hereby
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authorized to execute a Cooperation. Agreement on_behalf of the
• City..
1.04. This Council,. by resolution adopted December 2,
1985, authorized the issuance and public sale. of $1,050,000
General Obligation Tax Increment Bonds, .Series 1985C, of the
City, to fund the following public .costs of the Project:
.Property Acqusition $700,.000
Demolition 100,000
.Special Assessments 15,000
Administration Expenses 25,000.:
Issuance Casts 34,_450
Capitalized. Interest 175,550
(net.. of investment earnings)
$1,050,000
1.05.. Notice of sale of the Bonds has been duly
published, and the Council, having examined and considered all
bids received pursuant to the published notice, .hereby awards
the sale of the Bonds to Norwest Investment Services ,
of Minnea~oli~s Minnesota at a price a 1.038.975
plus accrued interest to t e ate of delivery. The Mayor and
City Clerk are hereby authorized and directed on behalf: of the
City to execute a contract for the sale of the Bonds in
accordance withthetermsof said bid. The. good-faith check of
the successful bidder shall be deposited by the Treasurer. The
good faith checks of .other bidders shall. be returned to them
forthwith.
Section 2. Bond Terms, Execution anc~ Delivery.
2.01 The Bonds shall: be designated "General Obligation
Tax Increment Bonds, Series 1985B," shall be originally dated
December 1, 1985, and shall be in the denomination of _$5,000 or
any integral multiple thereof, and the Bonds. shall mature on
February 1 in the respective. years and amounts .stated below,
and shall bear interest from date of ..issue until paid or duly
called far redemption, at the rates set forth opposite said
years and. amounts as follows:
Year Amount Rate
1989. $100,000_ 6.400
1990 105,000 6.60
1991 115 , 000- 6.80 0
1992. 125,000 7.00
1993 135,000 7.10
1994 145,000 7.25
1995 155,000 _ 7.40
1996 170,000 7.600
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For purposes of complying with the provisions of Minnesota
Statutes Section 475.54 the Bonds shall be combined with all...
• outstanding general obligation Bond issues of the City.
2.02. The Bonds shall be subject to mandatory redemption
and prepayment, in whale or in part in mintiples of $5,000, by
lot as selected by the Registrar, an December 1, 1988, in the
event the Authority has not entered into a development
agreement .with respect for the District pursuant to Minnesota
Statue, Section 273.75, at a price equal to 101$ of .the
principal amount to be redeemed with interest accrued to the
date of redemption.. The City Clerk shall cause notice of
redemption to be published as required by .law, and not less
than thirty days prior to the date fixed for redemption shall `
cause the notice to be mailed to the. registered awner at such
owner's address as it appears on the bond register described in
Section 2.04-.hereof, and to the bank at which principal and
interest are then .payable. The Bonds are not otherwise subject.
to redemption and prepayment.
2.03. Each Bond issuable hereunder shall be dated as
of ..the last interest payment .date preceding the date of
execution to which interest on the Bond. has .been paid or made
available far payment, unless (i) the date of execution is an
interest payment date to .which interest has been paid or made
available for payment, in which case such .Bond shall. be dated-
as of the date of execution, or (ii) the. date of execution is
prior to August 1, 1986,. in which .case such ..Bond shallbe dated
as of December 1, 1985. The interest on the Bonds shall be
payable by .check or draft of the Agent (as hereinafter defined)
an February 1 and .August 1 in each year, commencing .August 1,
1986, to the awner of retard thereof as of the close of
business on the .fifteenth day .(whether or nota business day)
of the immediate'y preceding month.
2.04. The Bands issuable hereunder shall be fully
registered as to both principal and interest. The. City hereby
appoints Norwest Bank Minnea obis, N.A. in Minneapolis ,
,Minnesota, to act as bond registrar, transfer agent and paying
agent (the Agent), and agrees to pay reasonable and customary
charge`s for the services. of the Agent.
(a) Register. The Agent shall keep a bond register
in which it shall provide far the registration of Bonds
issuable hereunder and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred
ar exchanged.
(b) Transfer of Bonds. Upon surrender for transfer
of any Band issuable hereunder endorsed by the registered
owner or accompanied by a written instrument of transfer,
in form satisfactory to the Agent, duly executed by .the.
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registered owner thereof ar an attorney duly authorized by'
the registered owner in writing, the .Agent shall
authenticate and deliver, in the name of the'. designated
transferee or transferees, one or mare new Bonds of a like
:aggregate principal amount and maturity, as requested by
the transferor. The Agent may, however, close the books
fora registration of any transfer after the fifteenthday of
the month preceding each interestgayment date and until:
such interest payment-date.
(c) Exchange of Bonds. Whenever any Band issuable
hereunder is surrendered by the. registered owner for
exchange, the Agent shall authenticate and deliver one ar
more new Bands of a like aggregate. principal amount and
maturity, as requested. by the registered owner ar the
registered owner's attorney. in writing.
(d) Cancellation. All Bonds surrendered .upon any
transfer or exchange shall be promptly cancelled by the
.Agent and disposed of as directed by the City.
{e) Improper or Unauthorized Transfer. When any Bond
issuable hereunder is presented to the Agnet far transfer,
it may refuse to transfer the same until the Agent is
satisfied that the endorsement. thereon ar instrument of
transfer is valid and genuine and that the requested
transfer is legally authorized: The Agent shall incur na
liability .for the refusal, in good faith, to make transfers
..which it, in its judgment, .deems improper ar unauthorized.
(f) Persons Deemed Owners. The Agent. and the .City
may treat the person in whose name any: Band issuable
hereunder is registered in the band register as the
absolute owner of such Band,.whether such Band shall be
overdue or not, for the purpose of receiving payment af, or
on account of, the principal af_and interest on such_Bond
and for all other purposes., and all such payments so .made
to any such registered ~wnerar upon .the owner's order
shall be valid and effectual to satisfy and discharge the
liability upon-such Bond to the extent of the sum ar sums
sa paid.
(g) Taxes, Fees and Charges. Far every. transfer or
exchange of Bonds issuablehereunder,. the Agent may impose
a charge upon the. owner thereof sufficient to reimburse the
Agent far any tax,,fee'or other governmental charge
required to be paid with respect. to such transfer ar
.exchange.
(h) Mutilated, Last, Stolen ar Destroyed Bonds. In
case any .Bond issuable hereunder shall become .mutilated or
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be destroyed, stolen or lost, the Agent shall deliver a new
Bandof like amount, number, maturity date and. tenor in
exchange and substitution for and upon. cancellation of such
mutilated Bond or in lieu of and in substitution far such
Band. destroyed, stolen or lost,..upon the payment of the -
reasonable expenses and :.charges of the Agent in connection
therewith, and, in case of a Band destroyed, stolen or
lost, upon filing with the Agent evidence satisfactory to
.the... Agent that such Bond was destroyed, stolen ar last, and
of the ownership thereof, and furnishing the Agent with an
appropriate band or indemnity in form, substance and .amount
satisfactory to the Agent. in which the. Agent and City shall
be named as obligees.. All Bonds sa surrendered to the"
Agent shall be cancelled. by it. If the mutilated,
destroyed, stolen or lost. Bond has already :matured or has
been called for redemption, it shall not be necessary to
issue a new Bond prior to payment..
2.05.. Upon merger or consolidation of the Agent with
another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business, such
corporation shall be authorized to act as successor Agent. The
City reserves .the .right to remove the Agent upon thirty (30)
days notice and upon the appointment of'a successor Agent.
2.06. The Bond shall be prepared under the direction
of the City Clerk. and shall be executed on behalf afthe.City
by the printed facsimile signatures of the Mayor and City
Clerk. In case any officer whose-signature or a facsimile of
whose signature shall appear on the Bonds shall cease to be
such officer before the delivery of the Bonds., such signature.
or-facsimile shall nevertheless be valid and sufficient far all
purposes, the same as if he had remained in :office until
delivery. Notwithstanding such execution, no Bond shall be
valid or obligatory far any purpose or entitled to any security
or benefit .under this Resolution unless and until a certificate
of authentication on such Bona has been duly executed by the
manual signature of an authorized representative of the:. Agent.
Certificates of authentication an different Bonds need not be
signed by the same representative... The executed certificate of
authentication on each Band shall be conclusive evidence that
it has .been authenticated and delivered under this Resolution.
When the Bonds have been so prepared, executed .and
authenticated, the Treasurer shall deliver the same to the
.purchaser thereof :upon. payment of the purchase price in
accordance with the contract of sale heretofore`made and
.executed, and said purchaser shall not be obligated to see to
the application of the purchase price.
2.07. The Bands shall be printed in substantially the
fallowing. form:
•
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[Face of the Bond)
UNITED STATES OF AMERICA
' STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF LAKEVILLE
GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1985C
Date of
Rate Maturity Original Issue CUSIP
December 1, 1985
REGISTERED :OWNER:.
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Lakeville, a duly organized and existing. municipal corporation
of Dakota County, Minnesota., acknowledges .itself to be indebted
and far value received promises to pay to the registered owner..
specified .above, or registered assigns,. the principal sum
specified above on the the maturity date specified above, with
interest thereon. from the date hereof at the..annual rate
specified above, such interest payable on February l and
Augustal in each year, commencing August 1, 1986, to the .owner
of record of this Bond an the. 15th day (whether ar not a-
business day) afthe immediately preceding month, all subject
to the provisions referred to herein with respect to the
redemption of this Bond before maturity.. The interest hereon
and,.upon presentation and .surrender hereof, the principal
hereof.. are payable in lawful money of the United States. of
America by check or draft by
in as Bond Registrar and Paying
Agent, or its designated successor. For the prompt and full
payment of such principal and interest as the: same. become due,
the full faith, credit and taxing power of the City have. been
and are hereby irrevocably pledged.
This. Bond is one of an issue in the total principal
amount of $1,050,000, issued for. the purpose of financing
.public costs of the I-35 Redevelopment Project Na. 2 (the
Project) heretofore established by the Housing and
Redevelopment Authority of .Lakeville (the Authority) and. is
issued under and pursuant to resolutions duly adopted by the
Board of Commissioners of the Authority and the City Council,
including an authorizing resolution of the City Council adopted. on
•
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December 18, 1985, af~d under and. pursuant to and infull
conformity with the Constitution and. laws of the State of
Minnesota thereunto enabling,including Minnesota Statutes,
Sections. 2.7.3.71 through 273.78, and Chapters 462 and 475.
Additional provisions of this Bond are contained on
the reverse hereof and such provisions shall for all purposes
have the same effect. as though fully set forth at ..this place.
This Bond. shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the.
Resolution until the Certificate of Authentication hereon shall
have .been executed. by the Bond Registrar by manual signature of
one of its authorized representatives.
IN WITNESS WHEREOF the City of Lakeville, Dakota
County, Minnesota, by its City Council,: has caused this bond to
be executed in its behalf by the printed facsimile signatures
of its Mayor and City Clerk-Administrator and has caused this
bond to be dated as of the date set forth below.
Dated
CITY OF ZAKEVILLE, KINNESOTA
(,facsimile' signature) (facsimile signature}
• City Clerk-Administrator Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the bonds delivered pursuant. to the
Resolution mentioned within.
By
Authorized Representative.
•
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[Reverse of the Bond].
The Bonds of this series shall be subject to mandatory
redemption and prepayment, in whole or in part in multiples of,
X5,000, by lot as selected by the Registrar, on December-1,
1988, in the event the Authority. has not entered into a
development .agreement with respect to Tax Increment Financing
District No. 2 pursuant to Minnesota Statues, Section 273.75,
at a price equal to 101 of the principal amount to be redeemed
with .interest accrued to the date of redemption. The City.
Clerk shall cause notice of .redemption to be published as
required by law and, at .least thirty days prior to the date
.fixed for redemption, shall .cause said notice to be mailed to
the registered owner at such owner's address as it appears on
the bond register hereinafter described, and to the bank at
which principaland interest are then. payable.. Upon partial
redemption of this Bond, a new bond or bonds will be delivered
to the owner without .charge, representing the .remaining
principal amount outstanding. The Bonds are not otherwise
subject to .redemption and. prepayment.
As provided in the. resolution authorizing its
issuance, and .subject to certain-limitations set forth therein,
this. Bond is'transferable upon the. books of the City at the
principal office of the Bond Registrar, by the. registered owner
hereof in person or_bythe owner's attorney duly authorized in
writing upon .surrender hereof together with a written
instrument of transfer satisfactory to the Bond Registrar, duly
executed by the registered owner or the owner's attorney; and
may also be surrendered in exchange for bonds of other
• authorized denominations. Upon such transfer or exchange,'the
.City: will cause a new bond or bonds to be issued in the name of
the transferee or registered owner, of the same aggregate
principal amount, bearing interest at the same rate and
maturing on the same date, subject to reimbursement for any
tax, fee or .governmental charge required to be paid with
respect to such transfer or .exchange..
The City and the Bond Registrar may deem and treat the
person in whose name this Bond is registered as the absolute
owner hereof, whether this ..Bond is overdue or not, for-the
purpose of receiving payment and for all other purposes, and
shall. not be affected by .any notice to the contrary..
IT IS HEREBY. CERTIFIED, RECITED, COVENANTED AND. AGREED
than all acts, conditions and .things. required by the
Constitution and laws of the State of Minnesota to be done, to
exist, to happen and to be performed preliminary to and in the
issuance of this. Bond in order to make it a .valid and- binding
general obligation of the City in accordance with its terms,
have been done, do .exist, .have happened and have been performed
as so required;. that, prior to the. issuance. hereof,. the City
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i
has entered into an ,agreement with the .Authority. providing for
the payment to the City of ad valorem tax .increments tC~ be
derived from said tax increment financing district within the
I-35 Redevelopment Project No. 2 (the. Project) and has
irrevocablypledged and appropriated said ad valorem tax
• increments. to the payment of the principal of and interest. on
the Bonds of this series, which tax increments are estimated to
be collectible .for the years and in amounts. sufficient to
produce, sums not less. than five percent in excess of the
principal of and interest on the Bonds of this series when due;
that, if necessary for the payment of such principal and
interest, ad valorem taxes are required. to be levied .upon all
taxable property in the City, without limitation as to rate or
amount; and that the issuance of this Bond does not cause the
indebtedness of the City to exceed any constitutional or
statutory limitation of indebtedness.
(Form of certificate to be printed on .the reverse side
of each Bond, following a full copy of the legal
opinion)
We. certify that the above is a full, true and correct
copy of the legal opinion rendered by bond counsel on the issue
of Bonds of the. City of Lakeville, Minnesota, which includes
the within Bond, .dated as of the date. ofdeliveryof and.
payment forthe Bonds..
(Facsimile Signature) (Facsimile .Signature)
City Clerk Mayor
The following abbreviations, when used on this Bond,
shall be. construed as though they were writtenout in full.
according to applicable laws or regulations:
TEN COM as tenants UNIF GIFT MIN ACT Custodian
in common Cust Minor
TEN ENT as tenants
by entireties under Uniform Gifts to
Minors
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•
JT TEN as joint tenants.
• with right. of Act........
survivorship and (State}
not as tenants in
• common
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 allxights
thereunder, and does .hereby irrevocably constitute ..and appoint
attorney to transfer the. said Bond on
the books kept or registration of the within Bond, 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 enlargement orany 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.
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The Bond .Registrar wild not effect transfer of this
. Bond'unle~s the information concerning the assignee .requested
.below is provided.
Name :and Address:
Include information for all joint
owners if. this Bond is held by
joint account)
Please insert social. security
or other identifying. number of
assignee
.Section 3. Use of Proceeds. Other than accrued and
capitalized interest and unused bond discount, if any, the
proceeds of .the Bonds shall be made available to the Authority
pursuant to the Cooperation Agreement to pay costs and expenses.
of the Project as described in Section 1.04 hereof..
Section 4. Sinking Fund. The Bonds shall be payable
from the "I-35 .Redevelopment Project Tax-Increment Bona Fund"
to be established by the City (the Fund), which the City agrees..
to maintain as a separate. and special account on its official
books. and. records until all principal of and interest on the
Bonds have been paid in full. The moneys on hand in the. Fund"
from time to-time shall be usedonly to pay or prepay. the
princ.pal of and interest on the Bonds outstanding under this
resolution or any additional bonds this Council directs to be
payable therefrom when due. There is appropriated to the Fund,
and into the Fund shall be paid as received: (1) all proceeds
of the Bonds received from the purchaser. in excess of
$1,034,250; {2) capitalized interest in the amount of
~ 1$2000 (3) all tax increments received by the .City from
the Authority pursuant to the Cooperation Agreement to the
extent required to ensure payment. of the Bonds, and (4) any
.taxes levied pursuant to Section 5.hereof.
Section 5. Pledge of Credit anti Taxing Power. It is
estimated .that the collections.. of tax increments to be received
from the_Authority pursuant: to the Cooperation Agreement will
be not less than 5~ in excess of amounts needed to pay
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•
principal and interest on the Bonds wizen due, and, therefore,
no ad' valorem tax levy is presently required. The City, '
however, recognizes and reaffirms its pledge of the full faith
andcredit of the City to the payment of the Bonds, and, in the
event that said tax increments do not prove sufficient. to pay.
• said principal and interest, the City will promptly levy ad
valorem taxes upon .all taxable property in the Gity as
necessary for such. payment, without limitation as to rate. or
.amount.
Section 6. Additional Bonds. The City reserves-the
right to issue. additional tax increment bonds payable primarily
ar wholly from tax increments derived from the District on a
parity with the Bonds and payable ratably f_romsuch tax.
increments and other funds pledged and appropriated to the Fund
pursuant to the Plan or any modifications .thereof duly adopted;
provided that the tax increments. and other funds pledged and
appropriated to the Fund, including any. additional. tax
increment, taxes levied or other funds pledged and appropriated.
thereto, .shall produce amounts not less. than 5 percent in
excess of the principal of and interest on all bonds payable
from the Fund when due. Such additional bonds shall be issued
under Minnesota Statutes, Section 273.77 br any amending law.
Section 7. Registration of Bond with.County Auditor.
The Clerk is hereby authorized and directed to files certified
copy of thus. resolution with the County Auditor of Dakota.
County, together with such additional information as the
Auditor shall. require, and to obtain from said County Auditor a
certificate.-that the Bonds have been .duly. entered upon his bond
register.
Section 8. Authentication of Transcript.- The
officers of the City and the County Auditor of Dakota County
are hereby authorized and directed to prepare andfurnish to
.the purchaser of the Bonds and to the attorneys approving the
legality .thereof, certified copies of all proceedings and
records relating to the Bonds and such other affidavits,
certificates and information as may be required to show the
facts relating to the legality and marketability. of the Bonds,
as the same appear from the books and recordsin their custody
and control. or as otherwise know to them, and all such certifed
copies, affidavits and certificates,. including any-heretofore
furnished, shall be deemed representations of the City as' to
the correctness of all statements contained therein.
.Section 9. Arbitrage and Tax Covenants..
9.01. The City covenants-and agrees with the
registered owners from time to time of the Bonds thatit will:.
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not take, or permit to be taken by any of its officers,
employees 'or agents, any .action. which would. cause the interest
payments. on the Bonds to become. subject. to taxation under the
Internal Revenue Code; and that it will take, or it will cause'
its officers, employees and agents to take all actions which
• may be necessary to insure that such interest will not become
subject o taxation under the Internal Revenue Code. In
particular, unless.. required by_state law to da otherwise, `the
City covenants that it shall not take any action or exercise
any remedies .pursuant to any development agreement relating to
the I-35 Redevelopment Project No. 2 if the effect thereof
.would be, in the opinion of bond. counsel furnished to the City,
to cause. the Bonds to be considered "industrial development
bonds" or "consumer loan bonds" pursuant-to Section 103(b) of
the Internal Revenue Code. Internal Revenue Code as used
herein .includes the United States Internal Revenue Code of
1954, as amended, and all regulatons,.amended regulations and,_
proposed regulations issued. thereunder, as now existing or as
hereafter amendedorproposed.
9.02. The Mayor anal the City Clerk, being the
officers of the City charged with the responsiblity for issuing
the ..Bond pursuant to this resolution, are authorized and
directed to execute and deliver to the purchaser a certifica-
tion in order to satisfy the provisions of Section 103(c)-of
the Internal Revenue Code and the .applicable regulations.
Adopted. by the Council this 8th day of December, 1985.
• ' - ~ ~
M r
r
Attest:
City leek
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Themotion for.. the adoption of the foregoing
resolution was duly seconded by Councilmember Enright ,
and upon vote being .taken thereon, the following 'voted in favor
thereof: All: member
andthe..followng voted against the same: None
whereupon theresolutionwas declared passed and adopted.
•
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