#043 04-16-79 Issue Redevelopment Bonds Levying TaxesMember Stockman then introduced the following
resolution and moved its adoption:
RESOLUTION NO. 43
RESOLUTION AUTHORIZING, SELLING AND ESTAB-
LISHING THE TERMS OF $1,925,000 GENERAL
OBLIGATION REDEVELOPMENT BONDS, AND
LEVYING TAXES FOR THEIR PAYMENT
BE IT RESOLVED by the City Council of the City of Golden
Valley, Minnesota, as follows:
Section 1. Authorization and Sale.
1.01 Authorization. The City has determined by the
resolution adopted March 5, 1979, to issue $1,925,000 General
Obligation Redevelopment Bonds of the City (the Bonds), for the
payment of which the Housing and Redevelopment Authority of the
City of Golden Valley has agreed to segregate and to pledge and
appropriate the tax increments resulting from redevelopment of
a project area, designated as North Wirth Parkway Project Area
(the Project Area), as certified by the County Auditor of Hen-
nepin County from year to year, pursuant to Minnesota Statutes,
Section 462.585, Subdivision 4.
1.02 Sale. Notice of sale of the Bonds has been duly
published and the Council has publicly received, opened and con-
sidered all sealed bids presented in conformity with the notice.
The most favorable of such bids is ascertained to be that of
John Nuveen s Co., Inc. of ChicaonIII ,
inois , to purchase the Bonds at a price of
$ 1,900,0113-50 , plus accrued interest to the date of delivery, and
upon the further terms and conditions set forth in this resolution.
1.03 Contract for Sale. The Mayor and City Finance
Director -Clerk are directed to execute in duplicate a contract on
the part of the City for the sale of the Bonds in accordance with
the proposal described in Section 1.02, and to deliver a duplicate
to the purchasers. The Treasurer is directed to retain the pur-
chasers' check securing the contract of sale until the Bonds are
delivered and the purchase price is paid and to return the checks
securing other bids to the respective bidders.
Section 2. Forms.
2.01 Form of the Bonds. The Bonds shall be printed in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION REDEVELOPMENT BOND
No. $5,000
KNOW ALL MEN BY THESE PRESENTS that the City of Golden
Valley, a duly organized and existing municipal corporation of
Hennepin County, Minnesota, acknowledges itself to be indebted and
for value received promises to pay to bearer upon presentation and
surrender hereof the principal sum of
FIVE THOUSAND DOLLARS
on the 1st day of February, 19_, or, if this Bond is redeemable
as provided below, then on the date prior thereto on which it shall
have been duly called for redemption, and to pay interest on the
principal sum from the date hereof until paid or until this Bond,
if redeemable, has been duly called for redemption, at the rate
of per cent ( %) per annum,
payable February 1, 1980, and semiannually thereafter on August 1
and February 1 in each year, interest to maturity being payable
in accordance with and upon presentation and surrender of the
interest coupons appurtenant hereto. Both principal and interest
are payable at '
in or at the office of
such successor paying agent as may be designated by the City Coun-
cil under the provisions of the resolution authorizing the issuance
hereof, in any coin or currency of the United States of America
which on the respective dates of payment is legal tender for public
and private debts. For the prompt and full payment of such princi-
pal and interest as the same become due, the full faith, credit and
taxing powers of the City are hereby irrevocably pledged.
This Bond is one of an issue of Bonds in the aggregate
principal amount of $1,925,000, all of like date and tenor except
as to serial number, maturity date, redemption privilege and in-
terest rate, issued for the purpose of providing moneys in aid of
a redevelopment project designated as North Wirth Parkway Project,
in anticipation of the collection of the tax increment resulting
from the redevelopment of the project area, as certified annually
by the County Auditor of Hennepin County, pursuant to Minnesota
Statutes, Section 462.585, Subdivision 4; and is issued pursuant
to a resolution duly adopted by the City Council and pursuant to
and in full conformity with the provisions of the Constitution
and laws of the State of Minnesota, including Minnesota Statutes,
Section 462.581 and 462.585 and Chapter. 475.
Bonds of this issue maturing in 1992 and later years are
each subject to redemption and prepayment at the. option of the City
and in inverse order of serial numbers on February 1, 1991, and any
interest payment date thereafter, at a price equal to the princi-
pal amount thereof plus accured interest. Notice of call for
redemption will be published in a financial newspaper published
in a Minnesota city of the first class, or its metropolitan area,
and will be mailed to the bank at which principal and interest
are then payable and to the holder of each Bond called for redemp-
tion who has filed with the City Finance Director -Clerk a written
request to receive such notice, but failure to mail notice shall
not affect the validity of any published call for redemption.
IT IS HEREBY CERTIFIED AND RECITED that all acts, con-
ditions and things required by the Constitution and laws of the
State of Minnesota to exist, to happen and to be preformed pre-
cedent to and in the issuance of this Bond in order to make it a
valid and binding general obligation of the City according to its
terms do exist, have happened and have been performed in regular
and due form, time and manner; that all taxable property within
the City is subject to the levy of a direct, annual, ad valorem
tax, which has been levied and is required to be extended, assessed
and collected for the years and in such amounts as may be required
to pay the principal of and interest on the Bonds of this issue
when due, which levy is not limited as to rate or amount; and that
the issuance of this Bond does not cause the indebtedness of the
City to exceed any applicable constitutional or statutory limita-
tion.
IN WITNESS WHEREOF the City of Golden Valley, Hennepin
County, Minnesota, by its City Council, has caused this Bond and
the interest coupons appurtenant hereto and the certificate on the
reverse side hereof to be executed and authenticated by the sig-
natures of the Mayor and City Manager, and its corporate seal to
be affixed hereto, all such signatures and the seal being authen-
tic printed, engraved or lithographed facsimiles except for the
manual signature of one of such officers on the face of this Bond,
and has dated this Bond as of May 1, 197
z,v
Mayor
Attest:
City Manager
(SEAL)
2.02 Form of Coupons. Interest to the maturity date of
each of the Bonds shall be represented by consecutively numbered
coupons attached thereto, in substantially the following form:
No. $5,000
On the first day of February (August), 19 , unless the
Bond described below is subject to and has been duly called for
redemption, the City of Golden Valley, Hennepin County, Minnesota,
will pay to bearer at
the amount shown hereon 41
in- IT
in lawful money of the United States of America for the installment
of interest then due on its General Obligation Redevelopment Bond,
dated May 1, 1979, No.
(Facsimile Signature) (Facsimile Signature)
City Manager Mayor
2.03 Form of Certificate. A certificate in substantially
the following form shall be printed on the reverse side of each of
the Bonds, following a copy of the text of the legal opinion to be
rendered by bond counsel:
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 Golden Valley, which includes the within
Bond, dated as of delivery of and payment for the Bonds.
(Facsimile Signature) (Facsimile Signature)
City Manager Mayor
Section 3. Terms, Execution and Delivery.
3.01 Date, Denomination, Maturities, Rates. The Bonds
shall be dated May 1, 1979, shall mature in order of serial numbers
on February 1 in the following respective years and amounts, and
shall bear interest at the respective annual rates indicated oppo-
site their maturity years:
Interest
Interest
Year
Amount
Rate
Year
Amount
Rate
1982
$10,000
5.25
1990
$145,000
5.40
1983
10,000
5.25
1991
160,000
5.50
1984
10,000
5•�5
1992
175,000
5.50
1985
80,000
5.25
1993
195,000
5.60
1986
90,000
5.25
1994
215,000
5.60
1987
105,000
5.30
1995
235,000
5.70
1988
115,000
5.30
1996
250,000
5.70
1989
130,000
5.40
The Bonds shall
be in the
aggregate principal amount of $1,925,000,
shall
be 385 in
number and
numbered from
1 to 385
each in the de-
nomination of $5,000.
3.02 Interest Payment Dates, Paying Agent. The interest
on the Bonds shall be payable February 1, 1980, and semiannually
thereafter on February 1 and August 1 in each year. Both principal
and interest shall be payable at Northwestern National Bank of
Minneapolis , which -is designated as paying agent, or in the
event of its resignation, removal or incapability of acting as
paying agent, at the office of such successor paying agent as may
be appointed by the Council, and the City agrees to pay the reason-
able and customary charges of the paying agent for this service.
Upon merger or consolidation of the paying agent with another cor-
poration, 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 paying agent. No resignation of
the paying agent and no appointment of a successor paying agent
shall become effective until the date specified in a notice of the
appointment which the Council shall cause to be published in a
financial newspaper in a Minnesota city of the first class or its
metropolitan area, not less than thirty days before said effective
date.
3.03 Redemption Privilege. Bonds maturing in 1992 and
later years shall each be subject to redemption and prepayment at
the option of the City, in inverse order of serial numbers, on
February 1, 1991, and any interest payment date thereafter, at a
price equal to the principal amount thereof plus accrued interest.
Not less than 30 days before the date specified for redemption,
the City Finance Director -Clerk shall cause notice of call for re-
demption to be published in a daily or weekly periodical published
in a Minnesota city of the first class or its metropolitan area,
which circulates throughout the state and furnishes financial news
as a part of its service. The City Finance Director -Clerk shall
also mail notice to the bank at which principal and interest on
the Bonds are then payable and to the holder of each Bond called
for redemption who has filed with the City Finance Director -Clerk
a written request to receive such notice, but published notice shall
be effective without mailing.
3.04 Execution and Delivery. The Bonds and the interest
coupons and the certificate on the reverse side of each of the
Bonds shall be executed and authenticated in behalf of the City by
the signatures of the Mayor and City Manager, and the corporate
seal of the City shall be affixed to each of the Bonds. All sig-
natures and the seal shall be printed, engraved or lithographed
facsimiles except for the manual signature of one of such officers
on the face of each of the Bonds. The Bonds shall then be deliv-
ered by the City Manager to the purchasers on receipt of the pur-
chase price stated in Section 1.02. The purchasers shall not be
required to see to the application of the proceeds of the Bonds.
All proceeds shall be credited to a special account on the offi-
cial books and records of the City and disbursed solely in payment
of valid claims duly allowed by the Council for capital expendi-
tures included in the public redevelopment cost of the redevelop-
ment project in the Project Area financed by the Bonds.
Section 4. Bond Fund, Tax Levies and Tax Increments.
4.01 Bond Fund. So long as any of the Bonds are out-
standing and unpaid, the City Finance Director -Clerk shall main-
tain a bond fund (the "Bond Fund") for the Bonds as a separate
and special bookkeeping account on the official books and records
of -the City, to be used for no purpose other than the payment of
the principal of and interest on the Bonds and such other general
obligation bonds of the City, if any, as may be issued for the
payment of the cost of the Project Area and any other public re-
development cost of the Project Area financed by the Bonds. If
the balance in the Bond Fund is ever insufficient to pay all prin-
cipal and interest then due on the Bonds, the City shall neverthe-
less provide sufficient money from any other funds of the City
which are available for that purpose, and such other funds shall
be reimbursed from the proceeds of the taxes levied for the Bond
Fund. The City shall deposit in the Bond Fund all money which
may at any time be received or appropriated to the payment of the
Bonds and interest thereon, including the taxes levied by this
resolution and the tax increments herein pledged, and the accrued
interest and any amount in excess of $1,900,000 bid for the Bonds
and received from the purchaser upon delivery of the Bonds and the
sum of $360,000 representing interest costs during construction.
4.02 Tax Levy. The full faith and credit and taxing
powers of the City are irrevocably pledged for the prompt and full
payment of the principal of and interest on the Bonds and on all
other bonds made payable from the Bond Fund, as such principal
and interest become due. For that purpose there is appropriated
to the Bond Fund from the proceeds of the Bonds the sum set forth
in Section 4.01 for the purpose of paying interest thereon to
February 1, 1983, after which it is presently estimated that the
tax increments will be received in sufficient amounts to provide
for the principal of and interest on the Bonds; and a direct,
annual, ad valorem tax is levied upon all taxable property within
the corporate limits of the City, to be spread upon the tax rolls
prepared in each of the following years and collected in each of
the respective ensuing years, in the following respective amounts
for the Bonds:
Levy Collection Levy Collection
Year Year Amount Year Year Amount
1979 1980 194,850 1986 1987 215,200
1980 1981 121,850 1987 1988 224,600
1981 1982 121,300 1988 1989 232,900
1982 1983 120,800 1989 1990 240,500
1983 1984 193,700 1990 1991 247,000
1984 1985 199,800 1991 1992 257,900
1985 1986 210,600 1992 1993 267,400
1993 1994 275,800
1994 1995 277,400
The above tax levy shall be irrevocable, except that the right is
reserved to reduce each annual levy in the manner and to the extent
provided in Section 4.03.
4.03 Tax Increment. The County Auditor has certified
that the original taxable value of real property within the Pro-
ject Area according to the assessment as of January 2 , 1978,
is $ 865,659.00• Under the provisions of Minnesota Statutes,
Section 462.585,Subdivision 3, the County Auditor will include
only the original taxable value according to the assessment as
of January 2 , 1978 in the assessed valuation upon which he
computes the rate of all state, county, city, school district and
other taxes, but will extend the rates so determined against the
entire assessed valuation of such real property in 1979 and each
subsequent year, and the County Treasurer will remit to the
Housing and Redevelopment Authority of the City of Golden Valley
that the proportion of the taxes paid each year on such real pro-
perty within the Project Area which the excess of the assessed
valuation over the original taxable value bears to such original
value. The Authority has agreed to segregate the tax increments
so received until the public redevelopment cost of the project, in-
cluding principal and interest on the Bonds, has been paid and the
City has been fully reimbursed for any principal of and interest
on the Bonds which has been paid from the city-wide taxes herein
levied. The Authority has pledged and appropriated the tax in-
crements to the Bond Fund for the payment of such principal and
interest and the reduction, cancellation and reimbursement of such
taxes. In accordance with the provisions of Minnesota Statutes,
Section 475.61, the City Finance Director -Clerk shall certify
annually to the County Auditor of Hennepin County the amount of
tax increments and any other funds appropriated to and then held
in the Bond Fund and shall request the County Auditor to reduce
by the amount so certified, and if possible, to cancel, the amount
of the tax levy otherwise to be included in the tax rolls next
thereafter prepared.
Section 5. Certification of Proceedings, Defeasance and
Arbitrage.
5.01 County Auditor's Certificate. The City Finance
Director -Clerk is directed to file with the County Auditor of Hen-
nepin County a certified copy of this resolution, and such other
information as the County Auditor may require, and to obtain from
the County Auditor a certificate stating that the tax required by
law for the payment of the Bonds has been duly levied and that the
Bonds have been entered upon his bond register.
5.02 Certification of Proceedings. The officers of the
City and the County Auditor are authorized and directed to prepare
and furnish to the purchasers of the Bonds, and to bond counsel,
certified copies of all proceedings and records of the City relat-
ing to the authorization and issuance of the Bonds and such other
affidavits and certificates as may reasonably be required to show
the facts relating to the legality and marketability of the Bonds
as such facts appear from the officers' books and records or are
otherwise known to them. All such certified copies, certificates
and affidavits, including any heretofore furnished, constitute
representations of the City as to the correctness of the facts
recited therein and the actions stated therein to have been taken.
5.03 Defeasance. When all of the Bonds, and all coupons
appertaining thereto have been discharged as provided in this sec-
tion, all pledges, covenants and other rights granted by this
resolution to the holders of the Bonds shall cease. The City may
discharge its obligations with respect to any Bonds and coupons
appertaining thereto which are due on any date by depositing with
the paying agent on or before that date a sum sufficient for the
payment thereof in full; or if any Bond or coupon should not be
paid when due, it may nevertheless be discharged by depositing with
the paying agent a sum sufficient for the payment thereof in full
with interest accrued to the date of such deposit. The City may
also discharge its obligations with respect to any prepayable Bonds
according to their terms, by depositing with the paying agent on or
before that date an amount equal to the principal, interest and
redemption premium, if any, which are then due, provided that notice
of such redemption has been duly given as provided herein: The City
may also at any time discharge its obligations with respect to any
Bonds, subject to the provisions of law now or hereafter authoriz-
ing and regulating such action, by depositing irrevocably in escrow,
with a bank qualified by law as an escrow agent for this purpose,
cash or securities which are general obligations of the United
States or securites of United States agencies which are authorized
by law to be so deposited, bearing interest payable at such times
and at such rates and maturing on such dates as shall be required
to pay all principal, interest and redemption premiums to become
due thereon to maturity or said redemption date.
5.04 Investment of Moneys on Deposit in Bond Fund;
Arbitrage.
(a) Covenant. The City covenants and agrees with the
holders 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 on the Bonds to become
subject to taxation under the Internal Revenue Code of 1954, as
amended (the "Code"), and regulations, amended regulations and
proposed regulations issued thereunder, as now existing or as
hereafter amended or proposed and in effect at the time of such
action.
(b) Investment of Moneys on Deposit in Bond Fund.
Unless and until the proposed regulations under Section 103(c) of
the Code which have been published by the Internal Revenue Service
prior to the date hereof have been modified or amended in perti-
nent part, the Finance Director -Clerk shall ascertain monthly the
amount on deposit in the Bond Fund for payment of the Bonds. If
the amount on deposit therein ever exceeds by more than $288,750.
the aggregate amount of principal and interest due and payable
from the Bond Fund within 13 months thereafter, such excess shall
not be invested except at a yield less than or equal to the yield
on the Bonds computed by the actuarial method.
D
(c) Certification. The Mayor and the Finance Director -
Clerk, being the officers of the City charged with the responsi-
bility for issuing the Bonds pursuant to this resolution, are
authorized and directed to execute and deliver to the purchasers
a certificate in accordance with the provisions of Section 103(c)
of the Code, and Treasury Regulations, Sections 1.103-13 and
1.103-14, stating that on the basis of the facts, estimates and
circumstances in existence on the date of issue and delivery of
the Bonds, as such facts, estimates and circumstances are set
forth in the certificate, it is not expected t at the proceeds of
the Bonds will be used in a manner that wou ause the Bonds to
be arbitrage bonds within the meaning of t e C de and Regulations.
Mayor
Attest: _
Finance Director lerk
The motion for the adoption of the foregoing resolution
was seconded
by Member
Johnson
, and upon vote
being
taken
thereon, the
following
voted in
favor thereof: Anderson,
Hoover,
Johnson,
Stockman and Thorsen
and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted,
and was signed by the Mayor, which was attested by the Finance
Director -Clerk.
J