HomeMy WebLinkAbout85-135 ti
CERTIFICATION OF MINUTES RELATING TO
$600,000 GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 1985B
Issuer: City of Lakeville, Minnesota
.Governing Body: .City Council.
Kind, date, time and place of meeting: A special meeting held
December 18 1985, at 7:00 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):
RESOLUTION NO. 85-135
RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING FORM AND
DETAILS AND PROVIDING FOR PAYMENT OF $600,000 GENERAL
OBLIGATION.TAX INCREMENT BONDS, SERIES 1985B.
I, the undersigned, being .the fully :qualified and
acting recording officer of the public corporation issuing the
Bonds referred to in the title of the. certificate, certifying
that the documents attached .hereto, as described above, have
been carefully compared with the original .'records o£ said
corporation in my legal custody, from which .they have been
transcribed; that said documents are a correct and complete
transcript of the minutes of the governing body. of said
corporation, and correct and .complete copies of all resolutions
and other actions taken and of all documents approved, by the
governing body at said meeting, so far as they relate to said
Bonds; and that said. meeting was. duly held by the governing
body at the time and place and was attended throughout by the
.members indicated above, pursuant to call and notice of such
meeting given as required by law..
WITNESS my hand officially as such recording_cfficer
this t$Zti. day. of `December, 1985.
~
ignature
Patrick McGarvey,
City Clerk-Administrator
The•Clerk presented to .the Council offidavits showing
publication in the official newspaper and the Commercial West
of a notice of sale of $600,000 General Obligation Tax
Increment Bonds, Series 1985B, 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 been received pursuant. to said notice of ..call. for bid ,
which bids had been opened, read and tabulated, and the highest
and best bid of each. bidder wasfound to be asfollows:
• Bid For Interest Total Interest .Cost..
Name of Bidder Principal Rates -Net Average Ra e
See Attached
-2-
SPR114+IIGSTED
INCORPORATED
PUBLIC FINANCE
ADVISORS
$600 000
GENERAL.. OBLIGATION TAX INC~REME'NT BONDS, SERIES 19858..
CITY OF LAKEVILLE, MWNESOTA
AWARD: NORWEST INVESTMENT SERVICES
and Associates
SALE: December { 8, 1985 Moody's Rating: A
nterest Netlnterest
Bidder Rates Price Cost 8~ Rate
NORWEST INVESTMENT SERVICES 6.60% .1990 $593,700.00 $328,543.33
American National Bank & Trust 6.80% 1991 (7.3747%)
Company of Saint Paul 7.00% 1992
Kidder, Peabody 8~ Company, Incorporated 7.10% 1993
. Dougherty, Dawkins, Strand & Yost 7.25% 1994
Incorporated 7.40% 1995
Dean Witter Reynolds Incorporated 7.60% 1996
F & M Marquette National Bank
ALLISON-WILLIAMS COMPANY 6.70 1990 $592,500.00 $333,802.92
Piper, Jaffray & Hopwood Incorporated 6.90% 1991. (7.4927%)
Moore, Juran & Company, Incorporated 7. I0% I992
• 7.25 % 1993
7.40% 1994.
7.50% 1995.
7.60% 1996...
FIRST NATIONAL BANK OF MINNEAPOLIS 6.60% 1990 $591,600.00 $334,293.33
Juran & Moody, Incorporated. 6.80%_ 1991 (7.5037°6)
Craig-Hallum, Incorporated 7.00% 1992
M.H. Novick & Company, Incorporated 7.20% 1993
7.40% 1994
7.50% 1995
7.70% 1996
CRONIN & COMPANY, INCORPORATED 6.70% 1990 $591,900.00 $335,470.42
DAIN BOSWORTH INCORPORATED 6.90°~ 1991 (7.5302%)
MILLER SECURITIES, INCORPORATED. 7.10% 1992
7.25% 1993
.7.40% 1994
7.50% 1995
7.70% ! 996
These. Bonds are being reoffered at Par.
BBI: 8.42
Average Maturity:. 7.43 Years
800 Osborn building, Saint Paul, Minnesota 55102 (C12) 222-4241
250 North Sunnyslope Road, Broo~eld~ Wisconsin 53005 (414? 782-8222
• Councilmember Harvey introduced the
following. resolution and moved its adoption;
RESOLUTION NO. 85-135
RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING FORM AND
DETAILS AND PROVIDING FOR. PAYMENT OF $600,000 GENERAL
OBLIGATION. TAX INCREMENT BONDS, SERIES 19858.
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
Project No. 2 and has established therein a tax increment
financing district (the District) known as Tax Increment
Financing District No. 1. This Council and the Authority `have
approved a Redevelopment .Plan. for the Project (the
Redevelopment Plan and a Financing Plan for the District -(the
Financing Flan) (together, the. Redevelopment Plan and the.
• Financing Plana 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 constitutesa "redevelopment
:project" as defined in Minnesota Statutes, Section.462.421,-
Subd. 13, and the District constitutes an economic development
tax increment financing district" within the meaning of
Minnesota Statutes, Chapter 273, and thus the Authority. has.
authority under said Chapters 273 and 462 to expend. ad valorem
tax increments derived from the District to pay publiccosts...
.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 suchcosts., 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
accor~ianee with. the Plan andwherebythe.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
-3-
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 $600,000
General Obligation Tax Increment Bonds, .Series 1985A, of the
City, to fund the following public costs of the Project:.
Road. Improvements $472,000.
Issuance Costs (including discount) 24,000
Capitalized Interest 104,000
.$600,000
1.0.5. Notice of sale of the Bonds has been duly
..published, and the Council,. having examined and considered al
bids received pursuant to the published notice, hereby awards
thesale of the :Bonds to N rwe t Investment Services
of Minnea o ;s Minnesota. at a price of 593,700.00
plusaccrued interest to the date. of delivery. The Mayor and
City Clerk are hereby authorized. and directed on behalf of they
City to. execute a contract for the sale of the Bonds in
.accordance with. the terms of sand 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 and Delivery.
2.01 The Bonds shall be designated "General Obligation
Tax Increment Bonds, .Series 1985B," shall be orginallx dated
December 1, 1985, and shall be in the denomination of $5,000 or
any integral multiplethereof, 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 for redemption, at the rates .set forth opposite said
years .and amounts:. as follows:
Year Amount Rate
1990 $ 70,000 6.60
1991 75,000 6.80
1992 80,000 7.00$
1993.. 85,000 7.10
1994 90,000 7.25
1995 95,000 7.40
1996 105,000 7.60
-4-
• For purposes o£ 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 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 for. the District pursuant to Minnesota
Statue, Section 27.3.75, 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 owner 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.
x.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 for 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 shall be dated
as of December 1, 1985. The interest on the Bonds. shall be
payable by check or draft of the Agent (as hereinafter defined).
on February 1 and August 1 in each year, commencing August 1,
1986., to the owner o£ record thereof as of the close of
business on the-fifteenth day .(whether. or not a business day)
of the immediately preceding month.
2.04. The Bonds issuable hereunder .shall be fully
registered. as to .both principal and interest. The City hereby
appoints Norwest Bank Minneapolis, N.A, in'~iinneapolis ,
Minnesota, to act as bond registrar, transfer agent and. paying
agent (the Agent), and agrees to pay reasonable and customary
charges fore. the services of the Agent.
(a) Register. The Agent shall keeps bond register
in which it shall provide for the registration of Bonds -
issuable hereunder and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred.
or exchanged.
(b) Transfer of Bonds. Upon surrender for. transfer
of any Bond 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
-5-
• registered owner thereof or an attorney duly authorized by
.the registered owner in writing, the Agent shall
.authenticate and. deliver, in the name o£ the designated
transferee or transferees, one or more new Bonds of a like
aggregate principal amount and maturity, as requested by
the transferor. The .Agent may, however., close the books
for registration of any transfer after the fi€teenth day. of
the month preceding each interest payment date and until
.such interest payment date.
(c) Exchange of Bonds. Whenever any. Bond issuable
hereunder is surrendered by the registered. owner for
exchange, the Agent shall authenticate and deliver one or
.more new Bonds of_ a like aggregate principal amount and
maturity, as requested by the registered. owner or the
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 for transfer,.
it may refuse to transfer.. the same until the.Agent is
satisfied that the endorsement thereon or instrument of`
• transfer is valid and genuine .and that the requested
transfer is legally authorized. The Agent shall incur no
liabilityfor the refusal, in good faith, to make transfers
which it, in-its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The Agent and the City
may.`treat the person in whose name any Bond issuable
hereunder is registered in the bond register as the
absolute owner of such Bond, whether such Bond shallbe
overdue or not, for the purpose of receiving payment of, or
on account of, the principal of and interest on such. Bond
.and for all other. purposes, and all suchpayments so made
to any such registered owner or 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 or sums
so paid.
(g) Taxes, Fees .and Charges. For every transfer or
exchange of Bonds issuable hereunder, the Agent may impose
a charge upon the owner thereof sufficient to reimburse the
Agent for any tax, fee or other governmental. charge
required: to be paid with respect. to such aransferor
exchange.`
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In
case any. Bond issuable. hereunder shall become mutilated or
-6_
. be destroyed, .stolen or lost, the .Agent shall. deliver a new
Bond. of .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 for such
Bond destroyed, stolen or lost, upon the payment of the
..reasonable expenses and charges of the Agent in connection
therewith, and, in case of a Bond destroyed, stolen or
lost, upon filing with the Agent. evidence satisfactory to
the Agent that such Bond was destroyed, .stolen or lost, and
of the ownership..thereof, and furnishing the Agent with an
appropriate bond or indemnity in form, substance and amount`
satisfactory to the Agent in which the Agent .and City shall
be named as obligees. All Bonds. so surrendered to the
Agent shall be cancelled by it. Tf 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 thee.City.Clerk and sha]_1 be executed on behalf of the City
by the printed facsimile signatures of the Mayor and City.:
Clerk. Ln 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 for .all
purposes, the same as if he had remained in office until
.delivery. Notwithstanding such execution, no Bond shall be
valid 'or obligatory for any purpose or entitled to any security
or benefit. under this Resolution .unless and until a certificate
of authentication on such Bond has been duly `executed by the.
manual signature of an authorized representative of the. Agent.
Certificates .of authentication on different-Bonds need not be
.signed by>the same :.representative. The executed certificate of
authentication on each Bond 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 tothe
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 Bonds shall be printed in substantially the
following forms
-7-
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA..
CITY OF LAKEVILLE
.GENERAL OBLIGATION TAX INCREMENT BOND, SERLES 1985E
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 for 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 1 and
August l in each year, commencing August 1, 1986, to the owner
of .record of this Bond on-the 15th day (whether or not a
business day)'of the immediately preceding month, .all subject
to the provisions- referred to herein with respect to .the
redemption. of 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 $600,000, issued for the purpose of; financing public
costs of the I-35 Redevelopment Project No. 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, inc uding
an authorizing resolution of the City. Council adopted on
•
_g_
December 18, 1985, and under and .pursuant to and in full
conformity. with the Constitution and laws of the .State of
Minnesota thereunto enabling, including Minnesota Statutes,
Sections 273.71 through 273.7F3, 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 LAKEVILLE, MINNESOTA
(facsimile signature) (facsimile signature)
.City Clerk-Administrator Mayor
CERTIFICATE OF AUTHENTICATION
'This is one of the bands delivered pursuant to .the
Resolution mentioned. within.
gY
Authorized Representative
-9-
[Reverse of the Bondl
.The Bonds of this series shall be subject to mandatory
redemption and prepayment, in whole or in part in multiples of
$5,000, by lot as selected by the Registrar, on December. 1,
1988, in the event the Authority has not entered into a
development agreement with respect to Tax Increment Financing
.District No. 1 pursuant to Minnesota Statues, Section 273.75,
at a price equal to 101$-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 tothe bank at
which principal and interest are then payable., Upon partial:
redemption of this Bond, a new bond or bonds will be delivered
to the owner without charge, representinq 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 by .the 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 ornot, 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
that all acts, conditions anti 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
-10-
• has entered into an agreement with the Authority providing for
the payment to the. City of ad valorem tax increments to be
derived from said tax increment financing district within the-
I-35 Redevelopment Project No. 2 (the.Project).and has
irrevocably pledged 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 of delivery ofand
payment fore the Bonds....
(Facsimile Signature). (Facsimile Signature)
City Clerk Mayor
The following abbreviations,-when used. on this Bond,
shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM as tenants UNIF GIFT MIN ACT _ Custodian
in common (Cush) Minor)
TEN ENT as tenants
by entireties under Uniform Gifts to
...Minors
•
-11-
• 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 undefsigned hereby sells,
assigns and transfers unto
the within Bond and all rights
thereunder, and does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on
the books kept for 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 he
face of the within Bond in every particular,..
withou alteration or enlargement 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..
•
-12-
The Bond Registrar will. not. effect transfer of this
Bond unless 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 Bond 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 used only to pay or prepay the
principal of and interest on the Bonds outstanding under thi
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 $591,000;
(2) capitalized interest in the amount of $ 104 000 ~ (3) all
tax increments received by the City from-the
Aug
arity pursuant.
to the. Cooperation Agreement to the extent required to ensure
payment of the Bonds, and (4)'.any taxes levied pursuant to
Section S hereof,
Section 5. Pledge. of Credit and 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
-13-
• principal and interest on the Bonds when. due, and, therefore,
no ad valorem tax levy is presently required. The City,
however, recognizes and reaffirms its pledge of the full faith
and credit 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 propexty in the City. 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
or wholly from tax increments derived from the. District on a
parity with the Bonds and payable ratably from. such 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 or any. amending law.
Section 7. Registration of Bond .with County Auditor.
T}he Clerk is hereby authorized and directed to file a certified
copy of this 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. and furnish;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 records in their custody
and control or as. otherwise know to them, and all suchcertifed
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 fxomtime to time of the Bonds that. it will
-14-
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 to taxation under the Internal Revenue Code. In
particular, unless required by state law to do 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 ifthe 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 regulations, amended regulations and
proposed regulationsissued thereunder, as now existing. or as
hereafter amended or proposed.
9.02. The Mayor and 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 thi 18th day of December, 1985.
/ ~(.-tG
yor
P
Attest ~ -l -Gc,~-~.-~..
...City Clerk'
•
-15-
• The motion for the adoption of the foregoing
resolution was duly seconded by Councilmember Sindt
and upon vote being taken thereon, the following voted in favor
thereof: All members
and the .following .voted against the same: None
whereupon the resolution was. declared passed and. adopted.
•
•
-16-