85-009 - 01-15 Authorize $1,265,000 Tax Increment Bonds Series 1985Resolution 85-9
January 15, 1985
Member Stockman introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING THE SALE, PRESCRIBING
THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $1,265,000
GENERAL OBLIGATION TAX INCREM1ENT BONDS, SERIES 1985
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota,
as follows:
1.01. Recitals and Authorization. The Golden Valley Housing and Redevelopment
Authority (the Authority) has prepared a tax increment financing plan for the
Valley Square Redevelopment Project Area (the District) in Golden Valley. After
appropriate proceedings, this Council by resolution approved the tax increment
financing plan of the Authority. The Plan calls for the acquisition of certain
properties within the District, payment of relocation expenses and other associated
redevelopment costs and sale of District properties to a developer for construction
of improvements in Area "D" of the District (the Project).
1.02. The ,cost of the Project is estimated to be as follows:
Land Acquisition Costs
$1,127,000
Relocation Expenses
90,000
Administrative and Legal Costs
40,500
City's Share of Performance Bonds
17,000
Total Project Expenditures
$1,274,500
Less: Land Sale Proceeds
<394,500>
Net Project Costs
$ 880,000
Plus: Capitalized Interest (Net of Reinvestment)
335,000
Bond Discount Allowance
24,700
Issuance Costs
25,300
Net Bond Issue Requirements $1,265,000
1.03. Thi Council, under the authority of Minnesota Statutes, Sections
273.77(a) and 42.581 and Minnesota Statutes, Chapter 475, and pursuant to a
resolution adopted on December 4, 1984, ordered that a public sale of $1,265,000
General Obligation Tax Increment Bonds, Series 1985 (the Bonds) to be held on
this date. Notice of the public sale of the Bonds was duly given as required by
Minnesota Statutes, Section 475.60. In accordance with the respective Terms and
Conditions for Receipt of Bids and Award of Sale, sealed bids were received by
the Finance Director prior to 12:00 Noon, C.T., on this date. Those bids have
been opened, publicly read aloud and considered by this Council and the terms
of each have now been determined.
Resolution 85-9 - Continued January 15, 1985
1.04. Sale. The bid of Piper, Jaffray & Hopwood Inc. of Minneapolis,
Minnesota (thePurchaser), for the purchase of the Bonds on the terms set forth
in the Terms an Conditions for Receipt of Bids and Award of Sale, at a price of
$1,247,240.10 pli,us accrued interest from the date of the Bonds to the date of
delivery thereof, the Bonds to bear interest at the rates set forth in Section 3
hereof, resulting in a net interest cost of $1,956,309.90, which is the lowest
net interest cost of all bids received pursuant to the Notice of Sale and Terms
and Conditions for Receipt of Bids and Award of Sale, is therefore declared to
be the best bid received, and is hereby accepted. The Mayor and the City Manager
are hereby authorized and directed to execute a contract for the sale of the
Bonds to the Purchaser in accordance with the terms of said bid, the Terms and
Conditions for Receipt of Bids and Award of Sale and this resolution. The
Finance Director shall deposit the good faith check of the Purchaser, pursuant
to the Terms an Conditions of Sale, and shall return the good faith checks of
the unsuccessful bidders forthwith.
1.05. Issyance 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 precedent to and in the valid issuance of
the Bonds having been done, existing, having happened and having been performed,
it is now necessary for this Council to establish the form and terms of the
Bonds, to provide security therefor and to issue the Bonds forthwith.
Section 2.i Form of Bonds and Certificate as to Legal Opinion.
2.01. Bon Form. The Bonds shall be prepared in substantially the following
form: [Face of Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION TAX INCREMENT BOND
SERIES 1985
Date of
Rate Maturity Original Issue CUSIP
February 1, 1985
No.
THE CITY OF GOLDEN VALLEY, Hennepin County, Minnesota (the City), acknowledges
itself to be indebted and, for value received, hereby promises to pay to ,
or registered assigns, the principal sum of DOLLARS, on the maturity date
specified above' with interest thereon from the date hereof at the annual rate
specified above payable on February 1 and August 1, commencing February 1, 1986,
to the person i whose name this Bond is registered at the close of business 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 the principal 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 drawn by in
as Bond Registrar, Transfer Agent and Paying Agent the
Bond Registrar or a successor designated under the Resolution described herein.
Resolution 85-9 - Continued
January 15, 1985
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 hereon.
This Bond $hall not be valid or become obligatory for any purpose or be
entitled to anylsecurity 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 Golden Valley, Hennepin County, State of
Minnesota, by its City Council, has caused this Bond to be executed by the
facsimile signatures of the Mayor and the City Clerk and by a printed facsimile
of the official seal of the City and has caused this Bond to be dated as of
February 1, 198.
DATE OF AUTHENTICATION:
(Facsimile Signature)
City Clerk
(Facsimile Seal)
CERTIFICATE OF AUTHENTICATION
(Facsimile Signature)
Mayor
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
as Bond Registrar
By
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate principal amount of $1,265,000
(the Bonds), issued pursuant to a resolution adopted by the City Council on
January 15, 198$ (the Resolution) to finance public redevelopment costs within
the Valley Square Redevelopment Project Area in the City (the Project), 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, Sections 462.581 and 273.77 and Chapter 475. This Bond is payable
primarily from the "1985 General Obligation Tax Increment Bond Fund" (the Bond
Fund) of the City, but the City is required by law to pay maturing principal
hereof and interest hereon from any available funds of the City if moneys on
hand in the Bond Fund are insufficient therefor. The Bonds are issuable only as
fully registered bonds, in denominations of $5,000 or any integral multiple
thereof, of single maturities.
Resolution 85-9'- Continued January 15, 1985
Bonds maturing in the years 1990 through 1995 are payable on their respective
stated maturity 'dates without option of prior payment, but Bonds having stated
maturity dates in the years 1996 through 2008 are each subject to redemption and
prepayment, at the option of the City and in inverse order of maturities and by
lot, assigned ir proportion to their principal amount, within any maturity, on
February 1, 199E and on any interest payment date thereafter, at a price equal
to the principal amount thereof to be redeemed plus interest accrued 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 cir ulates throughout the state and furnishes financial news as part
of its service, !,and will be mailed to the Bond Registrar and to the registered
owner of each Bond to be redeemed at his address appearing in the Bond Register,
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. Upon partial
redemption of any Bond, a new Bond or Bonds will be delivered to the registered
owner without charge, representing the remaining principal amount outstanding.
As provided in the Resolution 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 his
attorney duly authorized in writing upon surrender hereof together with a written
instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or his 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 governmentallcharge required to be paid with respect to such transfer or exchange.
The City a d 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 thelpurpose of receiving payment and for all other purposes, and neither
the City nor the Bond Registrar shall be affected by any notice to the contrary.
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 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 re ular and due form as so required; that prior to the issuance hereof,
the City has pledged and appropriated all of the tax increments to be derived by the
the City from said District to a bond fund established for the payment of all
bonds issued to finance costs of said District; that said tax increment are
estimated to be collectible for the years and in amounts sufficient to pay not
less than 20% of the principal of and interest on the bonds of this issue when
due; that prior 'to the issuance hereof the City as levied a direct, general ad
valorem tax upon all taxable property within its corporate limits for the years
and in amounts sufficient, with the estimated collections of said tax increments,
to produce sums not less than five percent in excess of the principal of and
interest on the Bonds as such principal and interest respectively become due, and
has appropriatec the same to said bond fund; that, in the event of any accumulated
or anticipated ceficiency in the bond fund, additional ad valorem taxes are
required by law to be levied upon all taxable property in the City without
limitation as t� rate or amount; and that the issuance of this Bond does not cause
the indebtednes of the City to exceed any constitutional or statutory limitation.
Resolution 854- Continued
January 15, 1985
The following abbreviations, when used in the inscription on the face of
this Bond, shall be construed as though they were written out in full according
to the applicable laws or regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT.....Custodian..........
in common (Cust) (Minor)
TEN ENT -- as tenants
by the entireties
JT TEN -- as joint tenants with under Uniform Gifts to Minors
rightlof survivorship
and not as tenants in Act ...............................
common (State)
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and hereby
irrevocably constitutes and appoints attorney to
transfer the within Bond on the books kept for registration thereof, with full
power of substitution in the premises.
Dated:
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE: NOTICE: The 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 any change whatsoever.
Signature(s) must be guaranteed by a commercial bank or trust company or by
a brokerage firm having a membership in one of the major stock exchanges.
2.02. Certificate as to Legal Opinion. The following certificate shall be
printed on the rleverse side of each Bond and executed by the printed facsimile
signature of the City Clerk:
STATE OF MINNESOTA)
_I ) SS.
COUNTY OF HENNEPIN)
I, the and rsigned, being the duly qualified and acting City Clerk of the
City of Golden Valley, Hennepin County, Minnesota, certify that printed above is
a full, true and correct copy of the legal opinion rendered by Bond Counsel on
the issue of Bonds of the City which includes the within Bond, dated as of the
date of delivery of and payment for the Bonds.
(Facsimile Signature)
City Clerk
Resolution 85-91- Continued January 15, 1985
Section 3. Bond Terms, Execution and Delivery.
3.01. Date, Maturities, Interest Rates. The Bonds shall be designated
General Obligation Tax Increment Bonds, dated February 1, 1985, shall be issued
in the denomination of $5,000 each, or any integral multiple thereof, 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
respective annual rates stated opposite their maturity years:
Year ount Rate Year Amount Rate
1990 $25,000 7.30% 2000 $65,000 9.00%
1991 5,000 7.50 2001 70,000 9.10
1992 10,000 7.70 2002 75,000 9.20
1993 35,000 7.90 2003 85,000 9.30
1994 35,000 8.10 2004 95,000 9.30
1995 40,000 8.25 2005 100,000 9.40
1996 45,000 8.50 2006 110,000 9.40
1997 $0,000 8.70 2007 125,000 9.50
1998 5,000 8.80 2008 140,000 9.50
1999 0,000 8.90
The Bonds shall'be issuable only in fully registered form. The interest thereon
and, upon surrender of each Bond, the principal amount thereof, shall be payable
by check or draft issued by the Bond Register described herein.
3.02. Dates; Interest Payment Dates. Each Bond shall bear a date of
original issue mf February 1, 1985. Upon the initial delivery of the Bonds
pursuant to Section 3.06 and upon any subsequent transfer or exchange pursuant
to Section 3.03b the date of authentication shall be noted on each Bond so
delivered, exchanged or transferred. The interest on the Bonds shall be payable
on each February 1 and August 1, commencing February 1, 1986 to the owner of
record thereof as of the close of business on the fifteenth day of the immediately
preceding month'b whether or not such day is a business day.
3.03. Registration. The City shall appoint, and shall maintain, a bond
registrar, transfer agent and paying agent (the Bond Registrar). The effect of
registration and the rights and duties of the City and the Bond Registrar with
respect thereto shall be as follows:
(a) Regi ster. The Bond Registrar shall keep at its principal corporate
trust office a bond register in which the Bond Registrar shall provide for the
registration ofl ownership of Bonds 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 duly
endorsed by thee, registered owner thereof or accompanied by a written instrument
of transfer, inform satisfactory to the Bond Registrar, duly executed by the
registered owner thereof or by an attorney duly authorized by the registered
owner in writing, the Bond Registrar shall authenticate and deliver, in the name
of the designated transferee or transferees, one or more new Bonds of a like
aggregate prinipal amount and maturity, as requested by the transferor. The
Bond Registrarcmay, 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.
Resolution 85-9 - Continued
January 15, 1985
(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered
owner for exchange, the Bond Registrar shall authenticate and deliver one or
more new Bonds f a like aggregate principal amount and maturity, as requested
by the register,d owner or the owner's attorney duly authorized in writing.
(d) Cancellation. All Bonds surrendered upon any transfer or exchange
shall be promptly cancelled by the Bond Registrar and thereafter disposed of as
directed by the ',City.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the
Bond Registrar for transfer, the Bond Registrar may refuse to transfer the same
until it is satsfied that the endorsement on such Bond or separate instrument
of transfer is egally authorized. The Bond Registrar shall incur no liability
for its refusal in good faith, to make transfers which it, in its judgment,
deems improper Ir unauthorized.
(f) Persons Deemed Owners. The City and the Bond Registrar may treat the
person in whose name any Bond is at any time 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
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 of the City upon such Bond to the extent
of the sum or sums so paid.
(g) Taxes; Fees and Char es. For every transfer or exchange of Bonds,
the Bond Registrar may impose a charge upon the owner thereof sufficient to
reimburse the Bond Registrar 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 shall
become mutilated or be lost, stolen or destroyed, the Bond Registrar shall
deliver a new Bond of like amount, number, maturity date and tenor in exchange
and substitution for and upon cancellation of any such mutilated Bond or in
lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the
payment of the reasonable expenses and charges of the Bond Registrar in connection
therewith; and,',in the case of a Bond lost, stolen or destroyed, upon filing
with the Bond Registrar of evidence satisfactory to it that such Bond was lost,
stolen or destroyed, and of the ownership thereof, and upon furnishing to the
Bond Registrar of an appropriate bond or indemnity in form, substance and amount
satisfactory tout, in which both the City and the Bond Registrar shall be named
as obligees. All Bonds so surrendered to the Bond Registrar shall be cancelled
by it and evidence of such cancellation shall be given to the City. If the
mutilated, lost, stolen or destroyed Bond has already matured or been called for
redemption in accordance with its terms, it shall not be necessary to issue a
new Bond prior to payment.
Resolution 85-9',- Continued January 15, 1985
3.04. Appointment of Bond Registrar. The City hereby appoints First
National Bank of Minneapolis, as the Bond Registrar. The Mayor and the City
Clerk are authorized to execute and deliver, on behalf of the City, a contract
with First National Bank of Minneapolis, as Bond Registrar. Upon merger or
consolidation of the Bond Registrar with another corporation, if the resulting
corporation is o bank or trust company authorized by law to conduct such business,
such corporation shall be authorized to act as successor Bond Registrar. The
City agrees to pay the reasonable and customary charges of the Bond Registrar for
the services performed. The City reserves the right to remove any Bond Registrar
upon thirty (30) days' notice and upon the appointment of a successor Bond
Registrar, in which event the predecessor Bond Registrar shall deliver all cash
and Bonds in its possession to the successor Bond Registrar and shall deliver
and the bond register to the successor Bond Registrar. On or before each
principal or interest due date, without further order of this Council, the City
Clerk shall transmit to the Bond Registrar from the bond fund described in
Section 4.02 he eof, moneys sufficient for the payment of all principal and
interest then due.
3.05. Redemption. Bonds maturing in the years 1990 through 1995 shall not
be subject to redemption prior to maturity, but Bonds maturing in the years 1996
through 2008 shall each be subject to redemption and prepayment, at the option
of the City, in inverse order of maturities and, within any maturity, in $5,000
principal amounts selected by the Bond Registrar by lot, on February 1, 1995 and
on any interest payment date thereafter at a price equal to the principal amount
thereof to be redeemed plus interest accrued to the date of redemption. At least
thirty days prior to the date set for redemption of any Bond, the City Clerk
shall cause notice of the 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, and to be mailed to the Bond Registrar and to the
registered owner of each Bond to be redeemed, 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 not affected by such defect or failure.
3.06. Pre0aration and Delivery. The Bonds shall be prepared under the
direction of the City Clerk and shall be executed on behalf of the City by the
signatures of the Mayor and the City Clerk, and shall be sealed with the official
corporate seal of the City; provided that said signatures and the corporate seal
may be printed,engraved, or lithographed facsimiles thereof. In case any officer
whose signature, or a facsimile of whose signature, shall appear on the Bonds
shall cease to he such officer before the delivery of any Bond, such signature
or facsimile shall nevertheless be valid and sufficient for all purposes, the
same as if suchlofficer had remained in office until delivery. Notwithstanding
such execution,jno Bond shall be valid or obligatory for any purpose or entitled
to any securitylor 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 r presentative of the Bond Registrar. Certificates of authentication
on different Bo ds need not be signed by the same representative. The executed
certificate of iuthentication on each Bond shall be conclusive evidence that it
has been authen icated and delivered under this resolution. When the Bonds have
been so executel and authenticated, they shall be delivered by the City Clerk to
the purchaser t ereof upon payment of the purchase price in accordance with the
contract of sal heretofore made and executed, and the purchaser shall not be
obligated to se2 to the application of the purchase price.
Resolution 85-91- Continued
Section 4.1 Security Provisions.
January 15, 1985
4.01. Con'truction Fund. A Construction Fund is hereby created as a special
fund and design ted on the books of the City as the "Valley Square Redevelopment
Project Area Construction Fund" (the Construction Fund), to be held and administered
by the Finance Director 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 soley to pay capital
and administrat,ve costs in connection with the Project as set forth in the
Plan. Any amou is remaining in the Construction Fund upon completion of the
Project and pay ent of all of the costs thereof shall be transferred to the Bond
Fund.
4.02 *Bond Fund. The City has created, by resolution adopted May 5, 1980,
and so long as any of the Bonds or any additional bonds issued pursuant to
Section 4.04 hereof are outstanding and any principal thereof or interest
thereon unpaid,lthe Finance Director shall maintain a bond fund therefor (the
Bond Fund) as a separate and special account to be used for no purpose other
than the paymen of the principal of, premium, if any, and interest on the Bonds,
such additionallbonds and then outstanding general obligation bonds of the City
issued for the'ayment of the cost of redevelopment projects in the District, or
any other deve1pment costs in connection with the District which are authorized
by law to be pa d from tax increments derived from the District. The City
hereby irrevocably appropriates to the Bond Fund (a) $335,000 of the proceeds
of the Bonds representing capitalized interest, (b) the accrued interest and
any amount in excess of $1,240,300 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 District according to the
assessment of January 2, 1979, is $7,471,499. 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 assessment as of
January 2, 1979'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
each 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 District 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 public redevelopment cost of the Project, including principal
and interest on:he
the Bonds, has been paid and the City has been fully reimbursed
for any princip1 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.
4.04. Additional Bonds. The City reserves the right to issue additional
bonds payable from the Bond Fund as may be required to finance costs of the
Project not financed hereby or to finance costs of other projects to be undertaken
by the City within the District.
Resolution 85-9i- Continued
January 15, 1985
4.05. 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. It is estimated that the tax increments
appropriated to the Bond Fund in Section 4.02 will produce sums available for
the payment of �he Bonds at the times and in the amount required by Minnesota
Statutes, Secti n 475.61, and therefore as permitted by Minnesota Statutes,
Section 273.77( 1), no taxes are levied for this purpose at the present time. It
is recognized, iowever, that the City's liability on the Bonds is not limited to
the provision o these funds, and that the City is required by Minnesota Statutes,
Section 273.77(1) and Section 475.61, to levy and cause to be extended, assessed
and collected a y ad valorem taxes necessary for the payment of principal of and
interest on the Bonds.
Section 5. Defeasance. When any Bond has been discharged as provided in
this section, all ppledges, covenants and other rights granted by this resolution
to the holders 4f such Bonds shall cease, and such Bonds shall no longer be deemed
to be outstanding under this Resolution. The City may discharge its obligations
with respect to any Bond thereto which are due on any date by depositing with
the paying agenic on or before that date a sum sufficient for the payment thereof
in full; or, iflany Bond 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 ful V with interest accrued to the date of such deposit. The City may
also discharge its obligations with respect to any prepayable Bond according to
its terms, by depositing with the paying agent on or before that date an amount
equal to the pr ncipal, 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 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
authorized by low to be do 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 date4
Section 6.1 County Auditor Registration, Certification of Proceedings,
Investment of Moneys and Arbitrage.
6.01. County Auditor Registration. The City Clerk is hereby authorized
and directed to'file a certified copy of this resolution with the County Auditor
of Hennepin County, together with such other information as the County Auditor
shall require, and to obtain from said County Auditor a certificate that the
Bonds have been entered on his bond register and the taxes described in Section
4.05 hereof have been levied as required by law.
6.02. Certification of Proceeding. The officers of the City and the
County Auditor f Hennepin County are hereby authorized and directed to prepare
and furnish to he purchaser of the Bonds and to Dorsey & Whitney, Bond Counsel,
certified 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.