#113 11-17-81 Execution Levying TAxes186 Resolution #113
November 17, 1981
Member Johnson introduced and read the following resolution and moved its
adoption:
RESOLUTION RELATING TO $560,000 GENERAL OBLIGATION TAX INCREMENT BONDS;
FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF
AND THE SECURITY THEREFOR AND LEVYING TAXES FOR THE PAYMENT THEREOF
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota
(the City), as follows:
Section 1. Authorization and Sale.
1.01. Authorization. This Council has, by Resolution No. 92 adopted on
October 6, 1981, determined to issue $560,000 General Obligation Tax Increment
Bonds (the Bonds), for the purpose of providing funds for the payment of public
redevelopment costs in connection with a project area designated as North Wirth
Parkway Project Area (the Project Area) and in accordance with a redevelopment
plan (the Plan) of the Housing and Redevelopment Authority in and for the City
of Golden Valley. For the orderly and economic development of the City and for
the development of additional real estate tax base, this Council finds that the
City's assistance is needed to complete the redevelopment of the Project Area.
It is anticipated that the tax increment revenue generated from the Project Area
will be segregated and pledged for the payment of principal of and interest on
the Bonds under Tax Increment Pledge Agreement, dated April 24, 1979, between
the Housing and Redevelopment Authority in and for the City of Golden Valley
(the Authority) and the City.
1.02. Sale. A public sale of the Bonds was held on November 17, 1981, and
this Council, Fy resolution adopted on that date, accepted the bid of First
National Bank of Minneapolis, of Minneapolis, Minnesota (the Purchaser) to
purchase the Bonds on the terms and conditions set forth in the Terms and
Conditions of Sale.
1.03. Issuance of Bonds. All acts, conditions and things which are
required by the Constitution and laws of the State of Minnesota to be done, to
exist, to happen and to be performed prior to the issuance of the Bonds having
been done, existing, and having happened, it is now necessary for this Council
to establish the form and terms of the Bonds, to provide for the security
thereof, and to issue the Bonds forthwith.
Section 2. Forms of Bonds and Couaons.
2.01.
following
No.
Form of Bonds.
form:
The bonds shall be prepared in substantially the
UNITED STATE OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION TAX INCREMENT BOND
$5,000
Resolution #113 - Continued November 17, 1981 187 Q7
The City of Golden Valley, Hennepin County, Minnesota (the City),
acknowledges itself to be indebted, and, for value received, hereby promises to
pay to bearer upon presentation and surrender hereof, the principal sum of
FIVE THOUSAND DOLLARS
on February 1, , or, if this Bond is prepayable as stated below, on any date
prior thereto on which it shall have been duly called for redemption, and to pay
interest thereon from the date hereof until said principal sum is paid, or, if
this Bond is prepayable, until it has been duly called for redemption and the
principal thereof and the interest thereon to the date of redemption have been
paid or deposited with the paying agent designated below, at the rate of
hundredths percent ( %) per annum. Interest hereon is payable
semiannually on February 1 and August -T in each year, commencing August 1, 1982,
in accordance with and upon presentation and surrender of the interest coupons
hereto appurtenant. Both principal and interest are payable at the ,
in , or its successor as paying agent, 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 in the aggregate principal amount of $560,000
(the Bonds), all of like date and tenor except as to serial number, interest
rate, maturity date, and redemption privilege, issued for the purpose of
providing moneys in aid of a redevelopment project designated as North Wirth
Parkway Project Area (the Project Area) in anticipation of the collection of the
tax increment revenue from the Project Area in the City, and is issued pursuant
to and in full conformity with the provisions of the Constitution and laws of
the State of Minnesota thereunto enabling, including Minnesota Statutes, Section
462.581, Section 462.585, Section 273.77(a) and Chapter 475.
Bonds maturing in the years 1984 through 1990 are payable on their respective
stated maturity dates without option of prior payment, but Bonds having stated
maturity dates in the years 1991 through 1995 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 on any interest payment date thereafter, at their principal
amount plus accrued interest to the date of redemption. At least thirty days prior
to the date set for redemption of any Bond, notice of the call for redemption will 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, and will be mailed to the bank at which the
Bonds are then payable and to the holders thereof, if known, but no defect in or
failure to give such mailed notice of redemption shall affect the validity of
proceedings for the redemption of any Bond. Holders of prepayable Bonds who desire
to receive such notice may register their names and addresses and the serial numbers
of their Bonds with the City Finance Director -Clerk in Golden Valley, Minnesota.
IT IS HEREBY CERTIFIED, RECITED, COVENATED 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 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 have been done, 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
188 Resolution #113 - Continued
November 17, 1981
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 did not cause the
indebtendess of the City to exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Golden Valley, Hennepin County, State of
Minnesota, by its City Council, has caused this Bond to be executed by the
facsimile signature of the Mayor and the manual signature of the City Manager,
and by a printed facsimile of the offical seal of the City, has caused the
interest coupons appurtenant hereto and the certificate appearing on the reverse
side hereof to be executed and authenticated by the facsimile signatures of said
officers, and has caused this Bond to be dated as of December 1, 1981.
ATTEST:
(Facsimile Signature)
City Manager Mayor
(FACSIMILE SEAL)
2.02. Form of Coupons. Interest on each Bond to maturity shall be
represented by a consecutively numbered set of interest coupons printed in
substantially the following form:
On the first day of February (August), 19 , unless the Bond to which
this coupon appertains shall previously have been called for redemption and
provision for the payment thereof has been made, the City of Golden Valley,
Hennepin County, Minnesota will pay to bearer at the , in
the sum shown hereon in coin or currency of
the United States of America which at the time of payment is legal tender for
payment of public and private debts, for interest then due on its General
Obligation Tax Increment Bond, dated December 1, 1981, No.
(Facsimile Signature)
City Manager
(Facsimile Signature)
Mayor
2.03. Form of Certificate. A certificate in substantially the following
form shall be printed on the reverse side of each Bond, 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 the date of
delivery of and payment for the Bonds.
(Facsimile Signature)
City Manager
(Facsimile Signature)
Mayor
Section 3.01. Bond Terms, Execution and Delivery.
3.01. Date, Amount, Denomination and Maturity. The City shall forthwith
issue and deliver the Bonds, which shall be negotiable coupon bonds, denominated
General Obligation Tax Increment Bonds. The Bonds shall be dated as of December
1, 1981, shall be 112 in number and numbered serially from 1 to 112, inclusive,
each in the denomination of $5,000, shall mature serially on February 1 in the
years and amounts set forth below, and the Bonds of each annual maturity shall
1
J
Resolution #113 - Continued November 17, 1981 189
bear interest from date of issue until paid at the rate per annum shown opposite
the year of such maturity as follows:
Year
Amount
Rate
Year
Amount
Rate
1984
$25,000
%
1990
$45,000
%
1985
$25,000
%
1991
$50,000
%
1986
$30,000
%
1992
$55,000
%
1987
$35,000
%
1993
$65,000
%
1988
$40,000
%
1994
$70,000
%
1989
$40,000
%
1995
$80,000
%
3.02. Interest. Interest on the Bonds shall be payable semiannually on
February 1 an ugust 1 in each year, commencing on August 1, 1982.
3.03. Paying Agent. The Purchaser has designated First National Bank of
Minneapolis, in inneapolis, Minnesota, as paying agent. That recommendation
is hereby approved. The City will pay the usual and customary charges of said
paying agent for the receipt and disbursement of principal and interest moneys.
The principal of and interest on the Bonds shall be payable at the principal
corporate trust office of the paying agent designated herein, or, in the event
of its resignation, removal or incapability of said paying agent, at the office
of such successor paying agent as may be approved by this Council. 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 an no appointment of a successor paying agent
shall become effective until the date specified in a notice which the City
Finance Director -Clerk shall cause to be printed 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, not less than thirty days before said effective date.
3.04. Redemption. Bonds maturing in the years 1984 through 1990 are
payable on their respective stated maturity dates without option of prior
payment, but Bonds having stated maturity dates in the years 1991 through 1995
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 on any interest payment
date thereafter, at their principal amount plus accrued interest to the date of
redemption. At least thirty days prior to the date set for redemption of any
Bond, notice of the call for redemption will 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, and will be mailed to the bank at which the Bonds are then
payable and to the holders thereof, if known, but no defect in or failure to
give such mailed notice of redemption shall affect the validity of proceedings
for the redemption of any Bond. Holders of prepayable Bonds who desire to
receive such notice may register their names and addresses and the serial numbers
of their Bonds with the City Finance Director -Clerk in Golden Valley, Minnesota.
3.05. Preparation and Delivery. The Bonds shall be prepared under the
direction of the City Manager and Shall be exeucted on behalf of the City by
the signatures of the Mayor and the City Manager, and shall be sealed with the
official corporate seal of the City, provided that one of said signatures and
the corporate seal may be printed, engraved, or lithographed facsimiles thereof.
On the reverse side of each Bond shall be printed a copy of the legal opinion
rendered thereon by Bond Counsel and the certificate of the Mayor and City
190 Resolution #113 - Continued November 17, 1981
Manager. The certificate as to legal opinion and interest coupons attached to
the Bonds shall be executed and authenticated by the printed, engraved or
lithographed facsimile signatures of the Mayor and City Manager. When the Bonds
have been so executed and authenticated, they shall be delivered by the City
Manager to the Purchaser upon payment of the purchase price in accordance with
the contract of sale heretofore made and executed, and the Purchaser shall not
be obliged to see to the application of the purchase price.
Section 4. Security Provisions.
4.01. Construction Fund. A Construction Fund is hereby created as a
special fund and designated on the books of the City as the "North Wirth Parkway
Project Area Construction Fund" (the Construction Fund), to be held and
administered by the City Finance Director -Clerk separate and apart from all
other funds of the City. The City hereby appropriates to the Construction Fund
all of the proceeds received from the sale of the Bonds, less the amount to be
deposited in the Bond Fund, as hereinafter defined, pursuant to Section 4.02
hereof. Moneys on hand in the Construction Fund from time to time shall be used
solely to pay public redevelopment costs in connection with the Project as set
fourth in the plan. Any amounts remaining in the Construction Fund upon completion
of the Project and payment of all of the costs thereof shall be transferred to
the Bond Fund.
4.02. Bond Fund. So long as any of the Bonds, or any additional bonds
issued pursuant 4.04 hereof and made payable from the Bond Fund, are
outstanding and any principal thereof or interest thereon unpaid, the City
Finance Director -Clerk shall maintain the Bond Fund, created by Resolution No.
43, adopted by the Council on April 16, 1979 (the Bond Fund), as a separte and
special account to be used for no purpose other than the payment of the principal
of, premium, if any, and interest on the Bonds and any other bonds heretofore or
hereafter issued by the City and made payable therefrom. The City hereby
irrevocably appropriates to the Bond Fund (a) $85,000 of the proceeds of the
Bonds representing capitalized interest, (b) the accrued interest and any amount
in excess of $550,000 bid for the Bonds and received from the Purchaser upon
delivery of the Bonds, and (c) any other moneys appropriated or pledged by the
terms of this Resolution to the Bond Fund.
4.03. Tax Increment. The Director of Property Taxation has certified that
the original taxable value of real property within the Project Area according to
the assessment of January 2, 1978, is $865,659. Under the provisions of Minnesota
Statutes, Section 462.585, Subdivision 3, the Director of Property Taxation will
include only the original taxable value according to the 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
Authority that the 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 value. The Authority has agreed
to segregate the tax increments 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 reduction, cancellation and reimbursement
of such taxes.
1
Resolution #113 - Continued
4.04. Additional Bonds. The City r
bonds payable from the Bond Fund as may be
Project not financed hereby or to finance
taken by the City within the Project Area.
4.05. Tax Levy. The full faith an
are irrevocably pledged for the prompt a
interest on the Bonds and on all other b
such principal and interest become due.
appropriated to the Bond Fund in Section
payment of the Bonds at the times and in
Section 475.61, and therefor as permited
no taxes are levied for this purpose at
the the city's liability on the Bonds is
funds, and that the City is required by
Section 475.61, to levy and cause to be
valorem taxes necessary for the payment
November 17, 1981 Iq I
eserves the right to issue additional
required to finance costs of the
costs of other projects to be under -
d credit and taxing powers of the City
nd full payment of the principal of and
onds made payable from the Bond Fund, as
It is estimated that the tax increments
4.02 will produce sums available for the
the amount required by Minnesota Statutes,
by Minnesota Statues, Section 273.77(a),
the present time. It is recognized, however
not limited to the provision of these
Minnesota Statues Section 273.77(a) and
extended, assessed and collected any ad
of principal of and interest on the Bonds.
Section 5. Defeasance. When all of the Bonds and all coupons appertaining
thereto have been discharged as provided in this Section 5, 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 irrevocably 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 at any time discharge its obligations with respecct 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 payable at such time
and at such rates and maturing on such dates as shall be required, without
reinvestment, to pay all principal and interest to become due thereon to maturity.
Section 6. Registration, Certification of Proceedings, Investment of
Moneys and Arbitrage.
6.01. Registration. The City Finance Director -Clerk is hereby authorized
and directed to file a certifed copy of this resolution with the Director of
Property Taxation of Hennepin County, together with such other information and
he/she shall require, and to obtain from said Director of Property Taxation a
certificate that the bonds have been entered on the bond register of Hennepin
County and that the tax required for the payment thereof has been levied and
filed as required by law.
6.02. Certification of Proceedings. The officers of the City and the
Director of Property Taxation of Hennepin County are hereby authorized and
directed to prepare and furnish to the Purchaser and to Dorsey, Windhorst,
Hannaford, Whitney & Halladay, Bond Counsel, certifed copies of all proceedings
and records of the City, 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 under their custody
and control or as otherwise known to them, and all such certified copies,
certificates and affidavits, including any heretofore furnished, shall be deemed
representations of the City as to the facts recited therein.
Iq D. Resolution #113 - Continued
November 17, 1981
6.03. Covenant. The City covenants and agrees with the holders from time
to time of t e 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 Treasury Regulations promulgated thereunder.
6.04. Investment of Moneys on Deposit in Bond Fund. The City Finance
Director -Clerk shall ascertain monthly the amount on--Fe-posit in the Bond Fund.
If the amount on deposit therein ever exceeds by more than $84,000 the aggregate
amount of principal and interest due and payable from the Bond Fund within the
next succeeding 13 months, such excess shall not be invested except at a yield
less than or equal to the yield on the Bonds, based upon their amounts, maturities
and interest rates on their date of issue, computed by the actuarial method be
or used to prepay and redeem bonds which are then redeemable in accordance with
their terms. If any additional bonds are ever issued and made payable from the
Bond Fund pursutant to Section 4.04 hereof, the dollar amount in the preceding
sentenence shall be changed to equal 15 percent of the aggregate principal
amount of all bonds, including the Bonds, which are then outstanding and payable
therefrom. The City reserves the right to amend the provisions of this Section
6.04 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 6.04
are not necessary in order to ensure that the Bonds are not arbitrage bonds
within the meaning of Section 103(c) of the Code and applicable Treasury
Regulations.
6.05. Arbitrage. The Mayor and City Manager, being the officers of the
City charged with the responsibility 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 delivery of
the Bonds which make it reasonable to expect 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 Regulations.
6.06. Execution of Documents. The Mayor, City Manager and City Finance
Director -Clerk are hereby aut orized to execute and deliver on behalf of the
City such documents as may be appropriate to evidence the pledge and appropriation
of the Tax Increment Revenues to the City by the Authority.
6.07. Official Statement. The Official Statement dated as of October 30,
1981, relating to the Bonds, prepared and distributed by the City in cooperation
with Evensen-Dodge, Inc., is hereby approved and the appropriate officers of the
City are hereby authorized and directed to execute such certificates as are
appropriate with respect to the completeness and accuracy of the official
statement.
Ro emary Th ayor
ATTEST:
Resolution #113 - Continued
t
VVrrhy, Ci ty Cl :Tr;
The motion for the adoption of the foregoing resolution was
Mitchell and upon a vote being taken thereon, the following
thereof: Anderson, Johnson, Mitchell and Stockman, and the
absent: Thorsen, and the following voted against the same:
said resolution was declared duly passed and adopted, signed
her signature attested by the City Clerk.
1
1
November 17, 1981 193
seconded by Member
voted in favor
following were
none, whereupon
by the Mayor and