91-036 - 04-08 Authorize $5,110,000 Tax Increment Refunding Bonds Series 1991AResolution No. 91-36
April 8, 1991
iMember Thompson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING THE FORM
AND DETAILS AND PROVIDING FOR THE PAYMENT OF $5,110,000
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1991A
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota
(the Issuer), as follows:
Section 1. Authorization and Sale.
1.01. By resolution adopted March 5, 1991, this Council authorized the
public sale of its General Obligation Tax Increment Refunding Bonds, Series
1991A, hereinafter called "the Bonds," in the principal amount of $5,110,000
(subject to adjustment in accordance with the Official Terms of Offering
approved by said resolution), the proceeds of which would be used, together with
any additional funds of the Issuer which might be required, to refund in advance
of maturity the outstanding principal amount of bonds of the issue of General
Obligation Tax Increment Bonds, Series 1985C, dated December 1, 1985, which
mature in the years 1997 through 2006 and aggregrate $4,995,000 in principal
amount (hereinafter, the "Refunded Bonds"). Said refunding constitutes a
"crossover refunding" as defined in Minnesota Statutes, Section 475.17, subd.
13.
• 1.02. Bids have been received in accordance with said resolution of
March 5, 1991 and the Official Terms of Offering and the Council has publicly
considered all sealed bids presented in conformity with the Official Terms of
Offering. The most favorable of such bids is ascertained to be that of
Prudential Securities, Inc. , of Chicago
Illinois and associates. In accordance with the Official Terms of
Offering, it is hereby determined to issue the Bonds in the principal amount of
$ 5,110,000 at a price of $ 5,098,900.00 plus accrued interest, and upon
the further terms and conditions set forth in this resolution.
1.03. The sale of the Bonds in the amount set forth in Section 1.02 is
hereby awarded to said bidder, and the Mayor and City Manager are hereby
authorized and directed on behalf of the Issuer to execute a contract for the
sale of the Bonds in accordance with the terms of said bid. It is hereby deter-
mined that by issuance of the Bonds the Issuer will realize a substantial
interest rate reduction, a gross savings of approximately $ 310,314.45 and a
present value savings of approximately $ 164,595.96 (using the yield of
the Bonds, computed in accordance with Section 148 of the Internal Revenue Code
of 1986, as amended, as the discount rate).
Section 2. Bond Terms: Registration; Execution and Delivery.
2.01. Maturities: Interest Rates: Denominations. The Bonds shall be
designated General Obligation Tax Increment Refunding Bonds, Series 1991A, shall
be originally dated as of May 1, 1991, shall be in the denomination of $5,000
each, or any integral multiple thereof, shall mature on February 1 in the
Resolution No. 91-36 - Continued
April 8, 1991
. 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
set forth opposite such years and amounts, as follows:
Year Amount Rate
1997 $
1998
1999
2000
2001
2002
2003
2004
2005
2006
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 Registrar described herein.
2.02. Dates: Interest Payment Dates. Each Bond shall be dated as of
the last interest payment date preceding the date of authentication to which
interest on the Bond has been paid or made available for payment, unless (i) the
date of authentication is an interest payment date to which interest has been
paid or made available for payment, in which case such Bond shall be dated as of
• the date of authentication, or (ii) the date of authentication is prior to
February 1, 1992, in which case such Bond shall be dated as of May 1, 1991.
The interest on the Bonds shall be payable on February 1 and August 1 in each
year, commencing February 1, 1992, to the owner of record thereof as of the
close of business on the fifteenth day of the immediately preceding month,
whether or not such day is a business day.
2.03. Registration. The Issuer shall appoint, and shall maintain, a
bond registrar, transfer agent and paying agent (the Registrar). The effect of
registration and the rights and duties of the Issuer and the Registrar with
respect thereto shall be as follows:
(a) Re ister. The Registrar shall keep at its principal corporate
trust office a bond register in which the Registrar shall provide for the
registration of 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 the registered owner thereof or accompanied by a written instrument
of transfer, in form satisfactory to the Registrar, duly executed by the
registered owner thereof or by an attorney duly authorized by the registered
owner in writing, the Registrar shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Bonds of a like aggre-
gate principal amount and maturity, as requested by the transferor. The
Registrar may, however, close the books for registration of any transfer after
the fifteenth day of the month preceding each interest payment date and until
such interest payment date.
Resolution No. 91-36 - Continued
April 8, 1991
• (c) Exchange of Bonds. Whenever any Bonds are surrendered by the
registered owner for exchange the Registrar shall authenticate and deliver one
or more new Bonds of a like aggregate principal amount and maturity, as
requested by the registered owner or the owner's attorney in writing.
(d) Cancellation. All Bonds surrendered upon any transfer or exchange
shall be promptly cancel ed by the Registrar and thereafter disposed of as
directed by the Issuer.
(e) Improper or Unauthorized Transfer. When any Bond is presented to
the Registrar for transfer, the Registrar may refuse to transfer the same until
it is satisfied that the endorsement on such Bond or separate instrument of
transfer is valid and genuine and that the requested transfer is legally
authorized. The Registrar shall incur no liability for the refusal, in good
faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The Issuer and the 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 effec-
tual to satisfy and discharge the liability upon such Bond to the extent of the
sum or sums so paid.
• (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds,
the Registrar may impose a charge upon the owner thereof sufficient to reimburse
the 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 destroyed, stolen or lost, the 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 destroyed, stolen or lost, upon
the payment of the reasonable expenses and charges of the Registrar in connec-
tion therewith; and, in the case of a Bond destroyed, stolen or lost, upon
filing with the Registrar of evidence satisfactory to it that such Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to
the Registrar of an appropriate bond or indemnity in form, substance and amount
satisfactory to it, in which both the Issuer and the Registrar shall be named as
obligees. All Bonds so surrendered to the Registrar shall be cancelled by it
and evidence of such cancellation shall be given to the Issuer. If the muti-
lated, destroyed, stolen or lost 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.
2.04. Appointment of Initial Registrar. The Issuer hereby appoints
American National Bank & Tny , St. Paul , Minnesota, as
• the initial Registrar. The Mayor and the City Manager are authorized to execute
and deliver, on behalf of the Issuer, a contract with said Registrar. Upon
merger or consolidation of the Registrar with another corporation, if the
Resolution No. 91-36 - Continued April 8, 1991
• resulting corporation is a bank or trust company authorized by law to conduct
such business, such corporation shall be authorized to act as successor
Registrar. The Issuer agrees to pay the reasonable and customary charges of the
Registrar for the services performed. The Issuer reserves the right to remove
the Registrar upon thirty (30) days notice and upon the appointment of a suc-
cessor Registrar, in which event the predecessor Registrar shall deliver all
cash and Bonds in its possession to the successor Registrar and shall deliver
the bond register to the successor Registrar.
2.05. Redemption. Bonds maturing in 2001 and subsequent years shall be
subject to redemption and prepayment at the option of the Issuer, in whole or in
part in integral multiples of $5,000, in such order of maturity years as the
Issuer may determine and at random as selected by the Registrar for Bonds
maturing on the same date, on February 1, 2000, and any date thereafter, at a
price equal to the principal amount thereof plus accrued interest to the date of
redemption. Prior to the date set for redemption of any Bond prior to its
stated maturity date, the Clerk shall cause notice of the call for redemption
thereof to be published as required by law, and, at least 30 days prior to the
designated redemption date, shall cause notice of the call thereof for redemp-
tion to be mailed by first class mail to the registered holders of any Bonds to
be redeemed at their addresses as they appear on the bond register described in
Section 2.03 hereof, provided that no defect in or failure to mail any notice
shall affect the validity of redemption of any Bond not affected by such defect
or failure.
2.06. Execution, Authentication and Delivery. The Bonds shall be pre-
pared under the direction of the Clerk and shall be executed on behalf of the
Issuer by the signatures of the Mayor and City Manager, provided that all signa-
tures may be printed, engraved or lithographed facsimiles of the originals. In
case any officer whose signature or a facsimile of whose signature shall appear
on the Bonds shall cease to be such officer before the delivery of any Bond,
such signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if he had remained in office until delivery.
Notwithstanding such execution, no Bond shall be valid or obligatory for any
purpose or entitled to any security hereunder until a certificate of authen-
tication on such Bond has been duly executed by the manual signature of an
authorized representative of the Registrar. Certificates of authentication on
different Bonds need not be signed by the same representative. The executed
certificate of authentication on each Bond shall be conclusive evidence that it
has been authenticated and delivered under this Resolution. When the Bonds have
been so prepared, executed and authenticated, the Finance Director shall deliver
the same to the purchaser thereof upon payment of the purchase price in accor-
dance with the contract of sale heretofore made and executed, and said purchaser
shall not be obligated to see to the application of the purchase price.
2.07. Form of Bonds. The Bonds shall be printed in substantially the
following form:
Resolution No. 91-36 - Continued April 8, 1991
[Face of the Bonds]
• UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND, SERIES 1991A
r:
U
Date of
Rate Maturity Original Issue CUSIP
May 1, 1991
REGISTERED OWNER:
PRINCIPAL AMOUNT: Dollars
KNOW ALL PERSONS BY THESE PRESENTS that City of Golden Valley,
Minnesota (the Issuer) acknowledges itself to be indebted and for value received
hereby promises to pay to the registered owner specified above, or registered
assigns, the principal amount specified above 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 in each year, commencing February 1,
1992, to the person in whose name this Bond is registered at the close of busi-
ness on the 15th day (whether or not a business day) of the immediately pre-
ceding 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 by
Minnesota, as
Bond Registrar and Paying Agent,lor its designated successor under the
Resolution described herein. For the prompt and full payment of such principal
and interest as the same respectively become due, the full faith and credit and
taxing powers of the Issuer have been and are hereby irrevocably pledged.
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 in this place.
This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security 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.
Resolution No. 91-36 - Continued
April 8, 1991
IN WITNESS WHEREOF, the Issuer, by its City Council, has caused this
Bond to be executed on its behalf by the facsimile signatures of the Mayor and
City Manager and has caused this Bond to be dated as of the date set forth
below.
Dated:
CITY OF GOLDEN VALLEY,
MINNESOTA
By (facsimile)
Mayor
By (facsimile)
City Manager
CERTIFICATE OF AUTHENTICATION
within. This is one of the Bonds delivered pursuant to the Resolution mentioned
•
f ,
as Bond Registrar
By
Authorized Representative
L`
Resolution 91-36 - Continued
April 8, 1991
• [Reverse of the Bonds]
This Bond is one of a series in the aggregate principal amount of
$ all of like date and tenor, except as to maturity date,
interest rate, denomination and redemption privilege, issued, pursuant to a
resolution adopted by the City Council on April 8, 1991 (the Resolution), to
provide funds to refund certain outstanding general obligation bonds of the
Issuer, and is issued pursuant to and in full conformity with the Constitution
and laws of the State of Minnesota thereunto enabling, including Minnesota
Statutes, Chapter 475. The Bonds of this series are issuable only as fully
registered bonds, in denominations of $5,000 or any integral multiple thereof,
of single maturities.
Bonds of this series having stated maturity dates in 2001 and later
Years are each subject to redemption and prepayment at the option of the Issuer,
in whole or in part in multiples of $5,000, and if in part in such order of
maturity dates as the Issuer may determine and at random as selected by the Bond
Registrar as to Bonds maturing on the same date, on February 1, 2000 and any
date thereafter, at a price equal to the principal amount thereof plus interest
accrued to the date of redemption. Prior to the date specified for the redemp-
tion of any Bond prior to its stated maturity date, the Issuer will cause notice
of the call for redemption to be published as required by law, and, at least 30
days prior to the designated redemption date, will cause notice of the call
thereof to be mailed by first class mail to the registered owner of any Bond to
be redeemed at the owner's address as it appears on the bond register maintained
by the Bond Registrar. Upon partial redemption of any Bond, a new Bond or Bonds
• will be delivered to the owner without charge, representing the remaining prin-
cipal amount outstanding.
As provided in the Resolution and subject to certain limitations set
forth therein, this Bond is transferable upon the books of the Issuer at the
principal office of the Bond Registrar, by the registered owner hereof in person
or by the owner's 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 the owner's attorney, and
may also be surrendered in exchange for Bonds of other authorized denominations.
Upon such transfer or exchange the Issuer 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 governmental charge required
to be paid with respect to such transfer or exchange.
The Issuer and 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 the purpose of receiving payment and for all other
purposes, and neither the Issuer 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
Resolution No. 91-36 - Continued April 8, 1991
obligation of the Issuer in accordance with its terms, have been done, do exist,
have happened and have been performed in regular and due form, time and manner
as so required; that the Bonds are payable from a separate debt redemption fund
of the Issuer, and from tax increments paid to the Issuer by the Housing and
Redevelopment Authority of the Issuer (the Authority) and derived from the
Golden Hills Redevelopment Tax Increment Financing District created by the
Authority within the Golden Hills Redevelopment Project Area, and certain other
funds, which have been appropriated to such debt redemption fund; that, if
necessary for payment of principal of and interest on the Bonds of this series,
ad valorem taxes are required be levied upon all taxable property in the Issuer
without limitation as to rate or amount; and that the issuance of this Bond does
not cause the indebtedness of the Issuer to exceed any constitutional or statu-
tory limitation.
(Form of certificate to be printed on the reverse side
of each Bond, following a full copy of the legal opinion)
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 City of Golden Valley,
Minnesota, which includes the within Bond, dated as of the date of original
delivery of and payment for the Bonds.
(Facsimile Signature) (Facsimile Signature)
City Manager Mayor
• 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 applicable laws or regulations:
TEN COM -- as tenants UTMA as Custodian for
in common Cust Minor
TEN ENT -- as tenants
by entireties under Uniform Transfers to Minors
JT TEN -- as joint tenants
with right of Act........... .... ................
survivorship and (State)
not as tenants in
common
Additional abbreviations may also be used though not in the above list.
Resolution No. 91-36 - Continued April 8, 1991
0 ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers
unto the within Bond
and all rights thereunder, and does hereby irrevocably constitute and appoint
attorney to transfer the said
Bond on the books kept for registration of the within Bond, with full power of
substitution in the premises.
Dated:
Notice: The assignor's 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
enlargement or any change whatever.
Signature Guaranteed:
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.
Please insert social security
or other identifying number
of assignee:
0
Resolution No. 91-36 - Continued April 8, 1991
• Section 3. Use of Proceeds. The proceeds of the Bonds in the amount
of $5,016,611.82 are irrevocably appropriated for the payment of interest to
become due on the Bonds to and including February 1, 1996 (the Crossover Date)
and for the payment and redemption of the principal amount of the Refunded Bonds
on said date. The Finance Director is hereby authorized and directed, simul-
taneously with the delivery of the Bonds, to deposit the proceeds thereof, to
the extent described above, in escrow with American National Bank & Trust Co.,
in St. Paul Minnesota, a banking institution whose
deposits are insured by the Federal Deposit Insurance Corporation and whose com-
bined capital and surplus is not less than $500,000, and shall invest the funds
so deposited in securities authorized for such purpose by Minnesota Statutes,
Section 475.67, subdivision 8, maturing on such dates and bearing interest at
such rates as are required to provide funds sufficient, with cash retained in
the escrow account, to make the above-described payments. The Mayor and City
Manager are hereby authorized to enter into an escrow agreement with said Bank
establishing the terms and conditions for the escrow account in accordance with
Minnesota Statutes, Section 475.67. Of the remaining proceeds of the Bonds,
$ 49,466.29 shall be applied to pay issuance expenses and
$ -0- shall be deposited in the Sinking Fund created pursuant
to Section 4.01 hereof.
Section 4. Sinking Fund and Tax Levies.
4.01. The Bonds shall be payable from a separate Series 1991A Tax
Increment Refunding Bond Sinking Fund (the Sinking Fund) which shall be created
• and maintained on the books of the Issuer as a separate debt redemption fund
until the Bonds, and all interest thereon, are fully paid. All receipts of
principal and interest on the investments held in the escrow account established
in Section 3 to and including February 1, 1996 (other than the sum of
$4,995,000 received from maturing investments on February 1, 1996 to be used to
retire the Refunded Bonds), all tax increments received from the Housing and
Redevelopment Authority of the Issuer (the Authority) and appropriated by
Section 4.02 hereof, and any ad valorem taxes levied and collected as
hereinafter specified, shall be credited to said Sinking Fund, as well as any
other funds appropriated by the Council for the payment of the Bonds.
4.02. The Authority and the Issuer have heretofore duly established
the Golden Hills Redevelopment Tax Increment Financing District (the District)
within the Golden Hills Redevelopment Project Area (the Project). Pursuant to
the Tax Increment Financing Plan (the Plan) adopted and approved by the
Authority and the Issuer, ad valorem tax increment is paid each year to the
Authority and deposited into a separate tax increment account maintained in
accordance with Section 469.177, subd. 5, to be used in accordance with the
Plan, including the payment of principal and interest on general obligation
bonds issued by the Issuer to finance public redevelopment costs in accordance
with the Plan. The Authority and the Issuer have heretofore entered into a
Cooperation Agreement pursuant to Minnesota Statutes, Section 469.178, subd. 2,
whereby the Authority pledged to the Issuer payment of sufficient tax increment
from the segregated tax increment account to enable the Issuer to pay principal
and interest on the Issuer's General Obligation Tax Increment Bonds, Series
• 1985C, as such becomes due. In connection with the issuance of the Bonds, the
Cooperation Agreement shall be amended so as to provide sufficient tax increment
Resolution No. 91-36 - Continued April 8, 1991
• to the Issuer to pay principal and interest on the General Obligation Tax
Increment Bonds, Series 1985C, through the Crossover Date, and then to pay prin-
cipal and interest on the Bonds thereafter during their term. The Mayor and
City Manager are authorized to execute an amendment to the Cooperation Agreement
for such purpose. All tax increments received by the Issuer pursuant to said
Cooperation Agreement subsequent to the Crossover Date shall be deposited in the
Sinking Fund. It is anticipated that the investment proceeds appropriated to
the Sinking Fund as specified in Section 4.01, together with the tax increments
to be received from the Authority as specified in this Section 4.02, will be at
least 5% in excess of the amounts required to pay principal of and interest on
the Bonds as such becomes due and therefore no ad valorem tax levy is required
at this time. However, the Issuer affirms that the full faith, credit and unli-
mited taxing powers of the Issuer are pledged to repayment of the Bonds.
4.03. In order to ensure compliance with the Internal Revenue Code of
1986, as amended (the Code), and applicable regulations, the Finance Director,
upon allocation of any funds to the Sinking Fund, shall ascertain the balance
then on hand in the Fund. If it exceeds the amount of principal and interest on
the Bonds to become due and payable through February 1 next following, plus a
reasonable carryover equal to 1/12th of the debt service due in the following
bond year, said excess shall (unless an opinion is otherwise received from bond
counsel) be used to prepay or purchase Bonds, or invested at a yield which does
not exceed the yield on the Bonds calculated in accordance with Section 148 of
the Code.
Section 5. Tax Certifications.
• 5.01. It is hereby determined that, except as otherwise specified in
Section 1313(b) of the Tax Reform Act of 1986, the provisions of the Internal
Revenue Code of 1954, as amended (the 1954 Code) shall be applicable to the
Bonds. In compliance with Section 1313(b), it is hereby found and determined as
follows:
(a) The Issuer, on April 8, 1991, held a public hearing on the
issuance of the Bonds after publication of notice of hearing in the official
newspaper of the Issuer not less than 14 days prior to the date of said hearing.
(b) No more than 2% of the proceeds of the Bonds will be expended to
pay costs of issuance of the Bonds.
(c) The Bonds constitute the first advance refunding of the General
Obligation Tax Increment Bonds, Series 1985C, and the Refunded Bonds are being
called for redemption on their earliest redemption date.
(d) The provisions of Section 148 of the Code shall apply to the Bonds,
except Section 148(d)(3) shall not apply to proceeds used to discharge the
Refunded Bonds. It is hereby determined that the arbitrage rebate requirements
of Section 148(d) of the Code are applicable to the Bonds, and the Issuer hereby
covenants and agrees to make computations, retain records and pay amounts to the
United States at the times and in the manner required by said Section 148(f), to
the extent such amounts are due.
•
Resolution No. 91-36 - Continued
April 8, 1991
• (e) The average maturity of the Bonds is 10.77 years. The proceeds of
the Refunded Bonds were used primarily to finance land acquisition with the
District and under the provisions of Section 147(b) of the Code such land is
treated as having an economic life of 30 years (from December 1, 1985). Hence
the average maturity of the Bonds does not exceed the remaining economic life of
the land so financed (approximately 24.7 years).
(f) The General Obligation Tax Increment Bonds, Series 1985C, were not
industrial development bonds as defined in Section 103(b) of the 1954 Code or
private loan bonds as defined in Section 103(o) of the 1954 Code.
(g) The Issuer covenants and agrees with the owners from time to time
of the Bonds herein authorized, 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 payable on the Bonds to become subject to taxation under the Code or
the 1954 Code and any regulations issued thereunder, in effect at the time of
such action, and that it will take, or it will cause its officers, employees or
agents to take, all affirmative actions within its powers which may be necessary
to insure that such interest will not become subject to taxation under the Code
or the 1954 Code and applicable Treasury Regulations, as presently existing or
as hereafter amended and made applicable to the Bonds.
5.02. The Mayor and the City Manager being the officers of the Issuer
charged with the responsibility for issuing the Bonds pursuant to this resolu-
tion, are authorized and directed to execute and deliver to the purchaser an
arbitrage certification in order to satisfy the provisions of the Code and 1954
Code and the regulations promulgated thereunder.
Section 6. Redemption of Refunded Bonds and Certification of
Proceedings.
6.01. The Clerk is directed to call the Refunded Bonds for redemption
and prepayment at their earliest permissible redemption date (February 1, 1996)
and to give notice of redemption in accordance with the resolution authorizing
issuance of the Refunded Bonds.
6.02. The Clerk is directed to file with the County Auditor of
Hennepin County a certified copy of this resolution, and to obtain from the
County Auditor a certificate stating that the Bonds have been entered upon the
Auditor's bond register.
6.03. The officers of the Issuer and said 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
Issuer relating 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 officer's books and records or are otherwise known to them. All such
certified copies, certificates and affidavits, including any heretofore fur-
nished, shall be deemed representations of the Issuer as to the correctness of
• all statements contained therein.
Resolution No. 91-36 - Continued
•
ATTEST:
Shirley J.[,N l son, City Clerk
U
The motion for the adoption of the
Russell and upon a vote being take
thereof: Bakken, Russell, Stockman
the same: none; and the following
tion was declared duly passed and
attested by the City Clerk.
•
•
April 8, 1991
foregoing resolution was seconded
n thereon, the following voted in
and Thompson, and the following v
was absent: Johnson; whereupon sa
adopted, signed by the Mayor and h
by Member
favor
oted against
id resolu-
is signature