HomeMy WebLinkAbout85-057 ' CERTIFICATION OF MINUTES RELATING TO
® $125,000 GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 1985A
Issuer: City of Lakeville, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A special meeting held
August 12, 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 (gages).:
RESOLUTION NO. 85-57
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING FORM AND DETAILS AND PROVIDING FOR PAYMENT
OF $125,000 GENERAL OBLIGATION TAX INCREMENT BONDS,.
SERIES 1985A.
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 of 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 officer
this day of August, 1985.
T
ig azure
Patrick M cGarvey,
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 $125,000 General Obligation Tax
..Increment Bonds, Series 1985A, 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
July 15, 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 1 sealed bids had.
been received pursuant to said notice of call forbids, which
:bides 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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SPRlIVGSTED
tNCORPOR~?TED
PUBL(C FINANCE
AD\ItSORS
! 25,.000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES I985A
CITY OF LAKEVILLE, MINNESOTA
AWARD: FIRST NATLONAL BANK OF`MINNEAPOLIS
SALE: August 12, 198.5 Moody's'Rating: A
Interest Netinteres#
Bidder Rates Price Cost.& Rate
FIRST NATIONAL BANK OF 8.00% 1990-1993 $122, 825.00 $102, 512.50
MINNEAPOLIS 8.209'0 1994 (8.7090%)
$.409'0 1995
8.60% 1996
8.70% 1997
8.80% 1998
..:8.90% 1999
Reoffering Schedule of the Purchaser..
Rate Year Yie d
8.00% t 990 7.25%
8.00% 199 f 7.50°~
8.00% 1992 7.7:5%
8.00% 1993 Par
8.209'0 1994 Par
8.40% 1995 Par
8.60% i 996 Par
8.70% _1997 Par
8.80% 1998 Par
8.90°:0 1999 Par
BBi: 9.02
Average Maturitys '9.42 Years
800 Osborn Building, Saint Paul, Minnesota 55102 .(612) 222-4241
250: North Sunnyslope Road, BrookfielcT Wisconsin 53005 (414) 782-8222
Councilmember Sindt then. introduced the
following resolution and .moved itsadoption:
RESOLUTION NO. 85-57
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING FORM AND. DETAILS AND PROVIDING FOR PAYMENT
OF $125,000 GENERAL OBLIGATION TAX INCREMENT BONDS,
SERIES 1985A.
BE IT RESOLVED by the City Council of the City of
Lakeville, Minnesota (the City), as follows:
Section 1. Projectand Plan..
1.01. The Housing and Redevelopment Authority of
Lakeville (the Authority) has duly established a housing
development project pursuant to Minnesota Statutes, Chapter
462, in and for the City, known. as the Meadows North Project
and has established. therein a tax increment financing district,
known as Tax Increment Financing District No. 5. This Council
and the Authority have approved a Development Plan for the
Project (the Development Plan) and a Financing Plan for Tax.
Increment Financing District No. 5 (the Financing Plan)
(together, the Development Plan and the Financing Plan are
hereinafter. referred to as .the Plan); all pursuant to and. in
accordance with Minnesota Statutes, Sections 4.62.411 et seq.
and 273.71 to 273.78 (the Acts).
1.02. The Meadows North Project constitutes a
"housing development project" as defined in Minnesota Statutes,
Section 462.421, Subds. 14 and 25, and Tax Increment 'Financing
District No. 5 constitutes "housing 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 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 obligati an .tax increment.
bonds to provide the funds needed for the public costs and
whereby the Authority will-agree to apply such funds to the
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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-Administrator
are hereby authorized to execute a Cooperation Agreement on
behalf of the City..
1.04. This Council, by resolution adopted July 15,
1985, authorized the issuance and public sale of $125,000
General Obligation Tax Increment Bonds., Series 1985A, of the
City, to fund the following public costs of the Project:
Net Land Acquisition and Improvement Costs $93,249
Issuance Costs (including discount) 14,970
Capitalized Interest 16,.781
$125,000
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, does hereby
find and determine that the most favorable bid received is that
of First National Bank of Minneapolis, in Minneapolis,
Minnesota , and .associates, to purchase the Bonds at a price
of $ 122,825.00 plus accrued interest on all Bonds to the. date
of delivery and payment, on the further terms and conditions
hereinafter set forth.
1.06. The sale. of the Bonds is hereby awarded. to said.
bidder, and 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 with the terms of said bid.
The good faith check of the successful bidder shall be
deposited by the Finance Director. 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 1985A," shall be
originallydated September 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 for redemption, at the rates
set forth opposite. said. years and amounts as follows::
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Year Amount Rate
1990 $10,000 8.00
1991 10,000 8.00
1992 1-0,.000 8.00
.1993 10,000 8.00.E
1994 10,000 8.20
1995 15,000 8.40
1996 15,000 8.60
1997 15,000 8.70
1998 15,000 8.80
1999 15,000 8.90
For the purpose of complying with the .provisions of Minnesota
Statutes, Section 475.54, the Bonds shall be combined with the
issue of $1.,435,000 General Obligation Improvement Bonds,
Series 1985A, of the City, dated September 1, 198.5.
2.02. The Bonds maturing in 1996 and subsequent years
shah be subject to redemption and .prepayment,.. at the option of
the City and in whole or in part in multiples of $5,000., in
inverse order of maturity years and by lot as to Bonds maturing
in the same year, assigned in proportion to the principal
amount thereof to `be redeemed, on February 1, 1995, and any
interest payment date thereafter., at aprice equal to 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.
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 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, 198.6, in which case such .Bond shall be dated
as of September 1, 1985. The interest on the Bonds snail be
payable by check or draft of the Agent (as hereinafter defined)
on February 1 and August l in each year, commencing August 1,
.1986, to the owner of record thereof as of the close of
business. on the fifteenth day (whether or not a business clay)
of the immediately preceding month.
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. 2.04. The Bonds is suable hereunder .shall be fully
registered as to both principal and interest. The City hereby
appoints First. National Bank of Minneapolis. in Minneapolis,
Minnesota, to act as bond registrar, transfer agent and paying
agent (the Agent), and agrees to pay reasonable and customary
charges for. the services of the Agent.
(a) Register. The Agent shall keep a 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
registered owner thereof or 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 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 fifteenth day of
the month preceding each interest payment date and until.
such interest payment date.
(c) Exchange of Bonds. Whenever any Bond ssuable
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) Im .proper or Unauthorized Transfer. When any Bond
issuable hereunder is_presented to the:~gent for transfer,
it may refuse to transfer the same until the Agent is
satisfied that the endorsement thereon ox instrument of
transfer is valid and genuine and that the requested
transfer is legally authorized. The Agent shall incur no
liability .for 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
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absolute owner of such Bond, whether such Bond shall be
-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 such. payments 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 Bands 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 transfer or
exchange.
(h) Mutilated, Lost, Stolen. or Destroyed Bonds. In
case any Bond issuable hereunder shall become mutilated or
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. A11 Bonds so surrendered to the
Agent-shall be cancelled by it. If the mutilated,
destroyed, stolen or lost Bond has already matured or has
beencalled 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 of the 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 for all
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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 Finance Director 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 Bonds shall be printed in substantially the
following 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 1985A
.Date of
Rate. Maturity Original Issue CUSIP
September 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 $125,000, issued .for .the purpose of financing public
costs of the Meadows North 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
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Council adopted on August 12, 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 273.78, 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:
(f acsimile 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
[Reverse of the: Bond]
The Bonds of this series maturing in 1996 and
subsequent years shall be subject to redemption. and prepayment,
at the option of the City and in~whole or in part in multiples
of $5,000, in inverse order of maturity years and by lot as to
Bonds maturing in the same year', on February 1, .1995, .and any
interest payment date thereafter, at a price equal to the
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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 leas t
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
then .payable. U on Principal and interest are
P partial redemption of this Bond, anew bond.
or bonds will be delivered to the owner without charge.,
representing the remaining principal amount outstanding.
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 uponsurrender. 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
shall not be affected by any notice to the contParyoses, and
iT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that 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 ha
as so required; that PPened and. have been performed
prior to the issuance hereof, the City
has .entered into an agreement with the Authority providing for
the payment to the City of ad valorem tax increments to be
derived from Tax Increment Financing District No. 5 within the
Meadows North Project and has irrevocably pledged and
appropriated said ad valorem tax increments to the payment of
the principal o£ 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
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• 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 of and
payment for the Bonds.
(Facsimile Signature) (Facsimile Signature)
City Clerk-Administrator Mayor
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The following abbreviations, when used on this Bond,
shall be construed as though they were written. out in full
according to applicable .laws or regulationsz
TEN COM as tenants UNIF GIFT MIN ACT Custodian
in common (Gust) (Minor)
TEN.ENT as tenants
by entireties under Uniform Gifts to
Minors
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..
•
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ASSIGNMENT
For value received, the undersigned 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 the
face of the within Bond in every particular,
without 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.
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
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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.G4 hereof.
Section 4. Sinking Fund. The Bonds shall be payable
from the "1985A Tax Increment Bond Fund" to be establisned 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. T he 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 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 $122,825; (2)
capitalized interest in_the amount of $ 16,781 (3) all tax
increments received by the City from. the Authority pursuant to
.the Cooperation Agreement; and (4) any .taxes levied pursuant to
Section 5 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 S~ in excess of amounts needed to pay
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 property 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 npt 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.
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• Section 7. Registration of Bond with County Auditor.
The Clerk is hereby authorized and. directed to file a certified
copy of this resolution .with the County Auditor of .Dakota
County., tog ether-with .such additional inf ormation as the -
A uditor 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 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.
9.01. The City .covenants .and agrees. with the
registered owners from time to time. of the Bonds that it will
• 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 God e; and that it will take, or it will cause
its officers, employees and agents to take all actions which
may be'necessaryto insure that such. interest will. not become
subject to taxation under .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 regulations issued thereunder, as now
existing or as hereafter amended or proposed.
9.02. From and after February 1, 1995, the Finance
Director shall ascertain monthly the amount on deposit in the
Sinking.Fund. If the amount on"deposit therein ever exceeds by
more than $18,750 the aggregate amount of principal and inter
est due and payable from the Fund through the next following
February 1, plus a "reasonable carryover" as permitted by the
Code and .applicable regulations, such excess.-shall either (1)
be used to purchase or to prepay and redeem the. Bonds, or (2)
not be invested except at a yield less than or equal to the
yield on the Bonds, unless an opinion is received from bond.:
counsel permitting a higher investment rate.
i
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9.03. 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 t 12th day of August, 1985.
or
Attest:
City Clerk-Ad instrat
The motion 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 members
• and the following voted against the same: None
whereupon the resolution was declared passed and adopted.
•
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