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HomeMy WebLinkAbout7734 (Res.) r n ~.,., (1 ,_., 000098 Counc ilmember Farrell then introduced the following resolution and moved its adoption: RESOLUTION NO. 7734 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING FORM AND DETAILS AND PROVIDING FOR PAYMENT OF $600,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1987A. BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota (the City), as follows: Section 1. proiect and Plan. 1.01. This Council has heretofore duly established Municipal Development District No. 1 (the Development District) and has established a housing tax increment financing district therein known as Tax Increment Financing District No. 3 (the District). This council has approved a Development District Plan for the Development District (the Development Plan) and a Financing Plan for the District (the Financing Plan) (together, the Development Plan and the Financing Plan are hereinafter referred to as the Plan) I all pursuant to and in accordance with Minnesota Statutes, Chapter 472A and Sections 273.71 to 273.78 (the Acts). 1.02. The Development District constitutes a -project- and the District is a -housing tax increment financing district- within the meaning of Minnesota Statutes, Chapter 273, and thus the City has authority under said Chapter 273 to expend ad valorem tax increments derived from the District to pay public development costs incurred or to be incurred by the City in aid of the Development District, 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 development costs of the Development District, as provided in Section 273.77(aY. 1.03. The City has requested the County Auditor of Washington County to certify to it the Assessed Value of all taxable property in the District as of January 1, 1985 (the Original Assessed Value), and to certify to the City each year thereafter the then current Assessed Value of all taxable property in the District (the Current Assessed Value). The County Auditor has certified the Original Assessed Value to be $12,708. The Current Assessed Value, less the Original Assessed Value is the Captured Assessed Value. The ad valorem -3- ,., ~ ;Lji; I,,' . 000097 ~ taxes derived from the property in the District in eacn year, by application of the aggregate mill rate levied by all governmental entities having authority to levy taxes on sucn property to the Captured Assessed Value, is the Tax Increment to be derived from the District. 1.04. By resolution adopted November 18, 1986, the Council sold $600,000 General Obligation Temporary Tax Increment Bonds, Series 1986B, dated December 1, 1986 (the 1986B Bonds), to provide temporary funding for certain public development costs as identified in the Plan. Said 1986B Bonds mature on June 1, 1987 and, to provide funds to retire said 1986B Bonds (along with funds on hand), the Council has authorized the issuance and sale of $600,000 General Obligation Tax Increment Bonds, Series 1987A, dated May 1, 1987 (the Bonds). The public costs permanently financed by the Bonds are as follows: Lalld Write-down Road Improvements Capitalized Interest Issuance Costs Bond Discount Allowance $354,000 155,000 79,000 3,000 9,000 Total $600.000 r The Bonds will permanently finance the above costs relating primarily to the second and third phases of the Orleans Home project, which aggregate B8 units of rental housing. The City has in place a development agreement for phases 2 and 3, and construction is currently in progress. 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 nereby find and determine that the most favorable bid received is that of Oain Bosworth InC!or~ated , of M; nnca~"if 1 ; !Cl , Minnesota , and assoc ates, to purchase the Onds at a price of $5/1.000.00 plus accrued interest on all Bonds to tne date of de ivery 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 tne 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. r -4- 00009G f' Section 2. Bond Terms, Execution and Delivery. 2.01 The Bonds shall be designated "General Obligation Tax Increment Bonds, Series 1987A," shall be originally dated May 1, 1987, 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: ~ Amount ~ 1991 $25,000 5.50% 1992 25,000 5.75% 1993 25,000 6.00% 1994 25,000 6.20% 1995 25,000 6.40% 1996 30,000 6.60% 1997 35,000 6.70% 1998 35,000 6.80% 1999 3S,000 6.90% 2000 35,000 7.00% 2001 45,000 7.10% r 2002 45,000 7.20% 2003 45,000 7.30% 2004 55,000 7.40% 2005 115,000 7.50% The Bonds shall be combined with the City's General Obligation Tax Increment Bonds, Series 1986A, dated December 1, 1986, for purposes of meeting the requirements of Minnesota Statutes, Section 475.54. 2.02. The Bonds maturing in 1995 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, 1994, and any interest payment date thereafter, at a price 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 (30) 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. r -5- n (', r ,,.,, A ~ 000095 2.03. Each Bond issuable hereunder shall be dated as of the last interest payment date preceding the date of execut'ion 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 February 1, 1988, in which case such Bond shall be dated as of May 1, 1987. 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 February 1, 1988, to the owner of 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 American National Bank T ",lst , Minnesota, 0 act as on reg s rar, rans er agent an 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. (e) Exchange of Bonds. Whenever any Bond issuable hereunder is surrenoered 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. -6- ,-, A r: (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) Impro~er or Unauthorized Transfer. When any Bond is~uab1e hereun er is presented to the Agent 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 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 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 inter.est 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. n (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 reimourse 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. All Bonds so 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. r -7- 000094 r r (". .a , I ~. " I ".a , ~~ 000093 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 Bonds 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 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: -8-