#204 05-05-80 Issue General Obligation Redevelopment BondsResolution #204
May 5, 1980
- Member Johnson introduced the following
resolution and moved its adopted:
RESOLUTION NO 204
RESOLUTION AUTHORIZING, SELLING AND
ESTABLISHING THE TERMS OF $1,825;000
GENERAL OBLIGATION REDEVELOPMENT BONDS,
AND LEVYING TAXES FOR THEIR PAYI4ENT
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 April 15, 1980, to issue $1,825,000
General Obligation Redevelopment Bonds of the City (the
Bonds), for the payment of which the Housing and Redevelop-
ment 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 Valley Square Project Area (the Project Area), as certi-
fied by the Director of Finance and Records of Hennepin
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 considered all sealed bids presented in conformity with
the Notice. The most favorable of such bids is ascertained
to be that of Piper, Jaffrey, & Hopwood, Inc.
, of Minneapolis Minnesota to
purchase the Bonds at a price of $ , 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 accor-
dance with the proposal described in Section 1.02, and to
deliver a duplicate to the purchasers. The Finance Director -
Clerk is directed to retain the purchasers' 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:
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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 first day of February, , 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
percent ( %) per annum, payable February 1, 1981, and semi-
annually thereafter on February 1 and August 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
Council 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 principal 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 aggre-
gate principal amount of $1,825,000, all of like date and
tenor except as to serial number, maturity date, redemption
privilege and interest rate, issued for the purpose of pro-
viding moneys in aid of a redevelopment project designated
as Valley Square Project Area, in anticipation of the collec-
tion of the tax increment resulting from the redevelopment
of the project area, as certified annually by the Director
of Finance and Records 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, Sections 462.581
and 462.585, Section 273.77 and Chapter 475.
Bonds of this issue maturing in 1991 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,
1990, and any interest payment date thereafter, at a price
equal to the principal amount thereof plus accrued 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 redemption 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,
conditions and things required by the Constitution and laws
of the State of Minnesota to exist, to happen and to be
performed precedent 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 prin-
cipal 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
limitation.
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 certifi-
cate on the reverse side hereof to be executed and authenticated
by the signatures of the Mayor and City Manager, and its cor-
porate seal to be affixed hereto, all such signatures and the
seal being authentic printed, engraved or lithographed fac-
similes except for the manual signature of one of such officers
on the face of this Bond, and has dated this Bond as of June
1, 1980.
C—MOyor
Attest: "
City Manager
(SEAL)
2.02. Form of Coupons. Interest to the maturity
date of each of the Bonds shall be represented by consecu-
tively numbered coupons attached thereto, in substantially
the following form:
RIM
$5,000
On the first day of February (August), , 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
, in ,
the amount shown hereon in lawful money of the United States
of America for the installment of interest then due on its
General Obligation Redevelopment Bond, June 1, 1980, No.
(Facsimile signature) (Facsimile signature)
City Manager Mayor
2.03. Form of Certificate. A certificate in sub-
stantially 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, Minnesota, which includes
the within Bond, dated as of delivery of and payment for the
Bonds.
(Facsimile signature) (Facsimile signature)
City Manager Mayor
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Section 3. Terms, Execution and Delivery.
3.01. Date, Denomination, Maturities and Rates. The
Bonds shall be dated June 1, 1980, 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 opposite their maturity years:
The Bonds shall be in the aggregate principal amount of
$1,825,000, shall be 365 in number and numbered from 1 to
365 each in the denomination of $5,000.
3.02. Interest Payment Dates, Paying Agent. The
interest on the Bonds shall be payable February 1, 1981, and
semiannually thereafter on February 1 and August -1 in each
year. Both principal and interest shall be payable at
Northwestern National Bank, 7th & Marquette, Minneapolis, which is
designated as paying agent, or in the event of its resig-
nation, 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
reasonable and customary charges of the paying agent for
this service. Upon merger or consolidation of the paying
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 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 appoint-
ment which the Council shall cause to be published in a
financial newspaper published in a Minnesota city of the
first class or its metropolitan area, not less than thirty
days before said effective date.
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Interest
Interest
Year
Amount
Rate
Year
Amount
Rate
(1984
$ 30,000
6.10%
1992
$115,000
6.50%
1985
40,000
1993
125,000
6.55%
50,000
6.15%
1994
135,000
6.60%
01986
1987
65,000
1995
150,000
6.70%
1988
70,000
6.20%
1996
170,000
6.80%
1989
85,000
6.30%
1997
180,000
6.90%
1990
100,000
6.35%
1998
195,000
7.00%
1991
105,000
6.40%
1999
(210,000
The Bonds shall be in the aggregate principal amount of
$1,825,000, shall be 365 in number and numbered from 1 to
365 each in the denomination of $5,000.
3.02. Interest Payment Dates, Paying Agent. The
interest on the Bonds shall be payable February 1, 1981, and
semiannually thereafter on February 1 and August -1 in each
year. Both principal and interest shall be payable at
Northwestern National Bank, 7th & Marquette, Minneapolis, which is
designated as paying agent, or in the event of its resig-
nation, 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
reasonable and customary charges of the paying agent for
this service. Upon merger or consolidation of the paying
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 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 appoint-
ment which the Council shall cause to be published in a
financial newspaper published in a Minnesota city of the
first class or its metropolitan area, not less than thirty
days before said effective date.
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3.03. Redemption Privilege. Bonds maturing in 1991 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, 1990, 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 redemption 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 signatures 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 delivered by the City Manager
to the purchasers on receipt of the purchase 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 official books
and records of the City and disbursed solely in payment of
valid claims duly allowed by the Council for capital expen-
ditures included in the public redevelopment cost of the
redevelopment 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
outstanding and
any principal of or interest thereon unpaid,
the City Finance
Director -Clerk shall maintain a bond fund
(the "Bond Fund")
for the Bonds as a separate and special
bookkeeping account
on the officials 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 redevelopment project in the Project
Area and any other
public redemption cost of the Project Area
financed by the
Bonds. If the balance in the Bond Fund is ever
insufficient to
pay all principal and interest then due on the
Bonds, the City shall nevertheless 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, the
accrued interest and any amount in excess of $1,795,000
bid for the Bonds and received from the ppurchaser upon
delivery of the Bonds and the sum of $ X75,000.00 repre-
senting 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, 1984,
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
1980
1981
$211,900
1989
1990
$208,600
1981
1982
127,100
1990
1991
212,100
1982
1983
158,600
1991
1992
214,700
1983
1984
167,200
1992
1993
216,600
1984
1985
175,200
1993
1994
223,000
1985
1986
187,600
1994
1995
233,400
1986
1987
188,700
1995
1996
231,800
1987
1988
199,900
1996
1997
234,600
1988
1989
210,000
1997
1998
235,900
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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 Director of Finance and
Records has certified that the original taxable value of real
property within the Project Area according to the assessment
as of Januar)? 1 , 1979, is $ 7,471,499, Under the pro-
visions of Minnesota Statutes, Section 462.585, Subdivision 3,
the Director of Finance and Records will include only the
original taxable value according to the assessment as of
January 1 , 1979, in the assessed valuation upon which
he computes the rate of all state, county, city, school dis-
trict and other taxes, but will extend the rates so deter-
mined against the entire assessed valuation of such real
property in 1980 and each subsequent year, and the County
Treasurer will remit to the Housing and Redevelopment
Authority of the City of Golden Valley that proportion of
the taxes paid each year on such real property within the
Project Area which the excess of the assessed valuation over
the original taxable value bears to such original taxable
value. The Authority has agreed to segregate the tax incre-
ments so received until the public redevelopment cost of the
project, including 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 increments to the Bond Fund
for the payment of such principal and interest and the reduc-
tion, 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 Director of Finance and Records 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 Director
of Finance and Records to reduce by the amount so certified,
and if possible, to cancel, the amount of tax levy otherwise
to be included in the tax rolls next thereafter prepared.
Section 5. Defeasance. When all of the Bonds and
all coupons appertaining thereto have been discharged as pro-
vided in this section, 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 never-
theless 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 dis-
charge its obligations with respect to any prepayable Bonds
which are called for redemption on any date 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 thereon,
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 authorizing 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 securities of United States agencies which are
authorized by law to be so deposited, bearing interest pay-
able at such times and at such rates and maturing on such
dates as shall be required to pay all principal and interest
to become due thereon to maturity or said redemption date.
Section 6. Registration, Certification of Proceedings,
Investment of Moneys and Arbitrage.
6.01. Registration. The City Finance Director -Clerk
is directed to file with the Director of Finance and Records
of Hennepin County a certified copy of this resolution, and
such other information as he shall require, and to obtain
from the Director of Finance and Records 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.
6.02. Certification of Proceedings. The officers
of the City and the Director of Finance and Records are hereby
authorized and directed to prepare and furnish to the pur-
chasers of the Bonds, and to the attorneys rendering an
opinion as to the legality of the issuance thereof, certified
copies of all proceedings and records of the City relating to
the authorization and issuance of the Bonds and such other
affidavits, certificates and information 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, in-
cluding any heretofore furnished, shall be deemed representa-
tions of the City as to the correctness of the facts recited
therein and the actions stated therein to have been taken.
6.03. 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 the Regulations
issued thereunder, as now existing or as hereafter amended or
proposed and in effect at the time of such action. 0
6.04. Investment of Monevs on Deposit in Bond Fund.
From and After June 1, 1990, the Finance Director -Clerk
shall ascertain monthly the amount on deposit in the Bond
Fund. If the amount on deposit therein ever exceeds by more
than $273,750 the aggregate amount of principal and interest
due and payable from the Bond Fund within 13 months there-
after, such excess shall either (a) be used to prepay and
redeem Bonds, or (b) not be invested except at a yield less
than or equal to the yield on the Bonds, based upon their
amount, maturities and interest rates on their date of issue,
computed by the actuarial method. The City reserves the right
to amend the provisions of this section at any time, whether
prior to or after the delivery of the Bonds, if and to the
extent that this Council determines that the provisions of
this section are not necessary in order to assure that the
Bonds are not arbitrage bonds under Section 103(c) of the
Code and the applicable Regulations.
6.05. Arbitrage. The Mayor and Finance Director -
Clerk, being the officers of the City charged with the respon-
sibility for issuing the Bonds pursuant to this resolution,
are authorized and directed to execute and deliver to the
purchaser 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 the facts, estimates
and circumstances in existence on the date of issue and deli-
very of the Bonds which indicate that the proceeds of the
Bonds will not be used in a manner that would cause the Bonds
to be arbitrage bonds within the meaning of the Code and the
Regulations.
Section 7. Official Statement. The Official
Statement relating to the Bonds, prepared for the City by
Evensen-Dodge, Inc., is approved, and its distribution to
prospective bidders for the Bonds ratified. The City
Finance Director -Clerk is authorized, in behalf of the
City, to sign and deliver to the original purchaser of the
Bonds a certificate as to the accuracy and completeness of
the Official Statement.
PASSED AND ADOPTED, THIS 5TH DAY OF MAY, 1980
Attest: /s/John Murphy
Finance Director -Clerk
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/s/Rosemary Thorsen
Mayor
The motion for the adoption of the foregoing
resolution was seconded by Member Mitchell , and upon
vote being taken thereon, the following voted in favor
thereof: Anderson, Johnson, Mitchell, 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 and her signature
attested by the Clerk.
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