City Council Resolution 1987-12CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 87-12
BEING A RESOLUTION AUTHORIZING AND AWARDING THE
SALE OF, AND PROVIDING THE FORMS, TERMS,
COVENANTS AND DIRECTIONS FOR 5365,000
GENERAL OBLIGATION TAX INCREMENT BONDS,
SERIES 1987A, PLEDGING FOR THE SECURITY THEREOF
TAX INCREMENT FROM TAX INCREMENT REDEVELOPMENT DISTRICT
NO. 5, AND AUTHORIZING EXECUTION OF A
TAR INCREMENT PLEDGE AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL (THE "COUNCIL") OF THE
CITY OF iVIONTICELLO, MINNESOTA (THE "ISSUER") AS FOLLOWS:
Section 1. Re_
1.01 The Housing and Redevelopment Authority in and for the City of
;Monticello (the "HRA") has heretofore adopted and this Council has duly approved
a modification to Tax Increment Redevelopment District No. 5 pursuant to
Dinnesota Statutes, Sections 273.71 to 273.78, within the modified Central
Monticello Redevelopment Project created and modified pursuant to Minnesota
Statutes, Section 462.411, et se ., for the purpose of financing or otherwise paying
public redevelopment costs pursuant to Minnesota Statutes, Chapter 462.
1.02 The Issuer has heretofore adopted a modification to the Tax
Increment Financing Plan for its Tax Increment Redevelopment District No. 5
within the modified Central Monticello Redevelopment Project. The County
Auditor of Wright County has certified the Original Assessed Value of all taxable
property in the Tax Increment Redevelopment District as of January 2, 1984. The
original assessed value of the District is $18, 840.00. '
1.03 Based upon present and anticipated mill rates for ad valorem taxes to
be levied on taxable property in Tax Increment Redevelopment District No. 5 (the
"District"), the Council hereby determines that the total annual tax increment to
be derived by the HRA from the District commencing in 1989 will be
approximately 554,710.
Section 2. Award of Sale; Terms of Bonds.
2.01. The City of Monticello (the "Issuer") hereby awards the sale of the
5365,000 General Obligation Tax Increment Bonds, Series 1987A (the "Bonds") to
'r t National Bank of Saint Paul in St. Paul Minnesota (the
"Purchaser") as the bidder offering the lowestlus accrued nterest to the date of
purchase the Bonds at a price of 5 358, 795 P
delivery, the Bonds to bear interest at the rates per annum as follows:
1
Year of Interest Year of Interest
Rate
Maturit Rate Maturit
__---Y
1990
5.50% 1995
1996 6.70%
7.00%
1991 5.75% 1997 7.20%
1992 6.00% 1998 7.40%
1993 6.25% 1999 7.50%
1994 6.50%
The Clerk-Administrator of the Issuer is airs ce ed for the 1Bondsg and f to return the
the Purchaser pending delivery of and p Y
checks of the unsuccessful bidders.
2.02. The Issuer shall issue the Bonds in the aggregate principal amount of
$365,000.dated June 1, 1987 as fullyo~ean tentegraldmult ple thereofnnot exc tiding
shall be to denominations of $5,000 Y
the principal amount of a single manner s~tsatlthe rates st forth abovep payable
order of issuance, and shall bear i
February 1, 1988 and semiannually tars and amounts as folio s 1 and August 1, and
chap mature on February 1 in the ye
Amount
Year
Amount
Year
1995 $35,000
1990 $30,000 1996 40,000
1991 30,000 1997 40,000
1992 30,000 1998 45,000
1993 35,000 1999 45,000
1994 35,000
2.03. All Bonds maturing on or after February 1, 1996, shall be subject to
redemption and prior payment in whoneogrthepCrty on February 1 ~ 1995,uand any
by lot within maturity at the optio
interest payment date thereafter at a price of p firstuclassrmail to the Registrar
days' prior notice of redemption shall be given by
and to the registered owners of tCha ter 475nM nnesota Statut sptUpon notice
published in the manner provided by P
having been so given, the Bonds or ion date and pr cetwethlaccruedl nterest to the
and payable at the stated redempt ment being held by or on behalf of the
redemption date, and upon funds for such pay
Registrar for such payment on the specnf dateed No defect in the retailed notice olf
cease to accrue after such redemptio
redemption shall affect the validity of the call for redemption of any Bond.
2.04. The Bonds shall be payannea oli priNcA al Mpnnear olis atMN at (the
main office of Mar uette Eank M
"Registrar"), or at the office of such other successor registrar as the Issuer may
hereafter designate upon 60 days mheck ortdraft f the Registrar ma'led the last
on each Bond shall be payable by e
rior to the interest payment date to the registered holder thereof at
business day p ~ ears on the bond register at the close of business on the
his or her address as it app of the calendar month next preceding the
15th day (whether or not a business day)
interest payment date.
2
Section 3. Form and Execution of the Bonds.
3.Olvariat ons ass to nnmber,nCUSIPaNumber, rateolof venter st and datet of
necessary
maturity, the blanks to be properly filled in:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
CITY OF MONTICELLO
No. R-__
GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1987A
Rate Maturit Nominal Date of Original Issue CUSIP
June 1, 1987
The City of Monticello, Minnesota (the "City"), for value received, hereby
certifies that it is indebted and hereby promises to pay to
or registered assigns, the principal sum of
Dollars ($ ) on the maturity
date specified above, upon the presentation and surrender hereof, and to pay to the
registered owner hereof interest on such principal sum at the interest rate
specified above from June 1, 1987, or the most recent interest payment date to
which interest has been paid or duly provided for as specified below, on August 1
and February 1 of each year, commencing February 1, 1988, until said principal
sum is paid. Principal and the redemption price are payable in lawful money of tag
United States of America at Minnesota, or at
Registrar, Transfer Agent and Paying Agent, in
the offices of such successor agent as the City may designate upon 60 daylnterest
to the registered owners at their registered addresses (the "Registrar").
shall be paid on each February 1 and August 1 by check or draft of the Registrar
mailed the last business day prior to the interest payment date to the person in
whose name this Bond is registered at the close of business on the preceding
January 15 and July 15 (whether or not a business day) at his or her address set
forth on the bond register maintained by the Registrar. Any such interest not
punctually paid or provided for will be paid to the person in whose name this Bond
is registered at the close of business on a special record date established by the
Registrar for the payment of such defaulted interest.
The Bonds of this series maturing on or after February 1, 1996, are subject
to redemption at the option of the City, in whole or in part in inverse order of
maturity and by lot within a maturity, on February 1, 1995 and any interest
payment date thereafter at a price equal to par and accrued interest. Thirty days'
prior notice of redemption will be given by first-class mail to the Registrar and to
the registered owners, and notice of redemption will be published in the manner
provided by Minnesota Statutes, Chapter 475. No defect in mailed notice will
affect the validity of the call for redemption of any Bond.
This Bondtxt °f ve Thousand DolBars ($365,000) o8f like date and tenoroexcept
Three Hundred S y
for number, interest rate, deu~ oseatof providing funds torflnance oreotherwise
privilege, and is issued for the p p
pay public redevelopment costs, pursuant to Minnesota Statutes, Chapter 462, of
Tax Increment Redevelopment District No. 5 established by the Housing and
Redevelopment Authority in an Section 273.73, andM pursuant tohan11authorizing
pursuant to Minnesota Statutes,
resolution (the "Resolution") onformi tyw th t to Constit tion tand Caws of t e State
1887, pursuant to and in full c Y
of Minnesota, including Minnesota Statutes, Chapter 475 and Sections 273.71
through 273.78.
The Bonds of this series are payable from the General Obligation Tax
Increment Bonds, Series 19ncremen t gene atedl from the tax acrement financ ng
been pledged certain tax
district. All taxable prop re uired bytlaw to be levy eduandce tended if needed for
general ad valorem taxes q
this purpose, without limisgtofnthe Cityotoaexceed any const tutional orB tatutory
not cause the indebtedne
limitation thereon.
As provided in the Resolution, and subject to certain limitations set forth
therein, this Bond is transferable upon the the re ~stered owner hereoft n person or
at the principal office of the Registrar, by g
by such owner's attorney dulyment of transferrsati~factorystorthe Registrar, duly
together with a written instru
executed by the registered e t of an s tax,ofeeeor governmental chargerrequired to
such transfer and the paym Y
be paid by the City or the Regferee a new Bond or Bonds of theesameeaggregate
issued in the name of the tra
principal amount as the surrendered Bond.
The Bonds of this series are issuable only as fully registered bonds without
coupons in denominations ofn SinOa ° one year.~As providedtinethef Resolution and
the principal amount maturt g Y
subject to certain limitations therer ncieal amount of Bonds of his series ofra
exchangeable for a like aggregate p ' p
different authorized denominaender thereof totheyRegistgartered owner or his duly
authorized attorney, upon surr
It is hereby Certified and Recited 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 perfora cordin rt or it lterms,hhave been done,ndo texistg,
general obligation of the Clty g
have happened and have been performed in due form, time and manner as so
required.
This Bond shall not be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been manually signed by a person
authorized to sign on behalf of the Registrar.
4
IN WITNESS WHEREOF, The City of Monticello, Minnesota has caused this
Bond to be executed wit he Nomanal Date o8f Original Issue spec fiednabove.Clerk-
Administrator, both as of t
Dated:
THE CITY OF MONTICELLO, MINNESOTA
By
(Facsimile)
Mayor
(Facsimile)
Clerk-Administrator
Certificate of Authentication
This is one of the Bonds described in the within mentioned Resolution.
Bond Registrar
By
Authorized Signature
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(Please Print or Typewrite Name and Address of Transferee.
Include information for all joint owners if the Bonds are held by joint account.)
the within Bond and all rights thereunder, at orneyto transferbhe w thin Bond on
appoints
the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed by:
Signature(s) must be guaranteed by a
commercial bank or trust company or
by a brokerage firm having
membership in one of the major stock
exchanges.
Notice: The signature(s) on this
assignment must correspond with the
name(s) appearing on the face of this
Bond in every particular, without
alteration or any change whatever.
Please Insert Social Security Number
or Other Identifying Number of
Assignee
(Form of Certificate)
CERTIFICATE AS TO LEGAL OPINION
I, Thomas Eidem, Clerk-Administrator of the City of Monticello, Minnesota,
hereby certify that except for the date line, the above is a full, true and compared
copy of the legal opinion of Holmes be Graven, Chartered, of Minneapolis,
Minnesota, which was delivered to me upon delivery of the bonds and is now on file
in my office.
(Facsimile)
Clerk-Administrator
3.02. As long as any of the Bonds issued hereunder shall remain
outstanding, the Issuer shall cause to be kept at the principal office of the
Registrar the Register in which, subject to such reasonable regulations as the
Registrar may prescribe, the Registrar shall provide for the registration of Bonds
_....,, u,,,ti Ntinneapolis N.A.
and the registration of transfers of Bonds. ~~------
hereby appointed Registrar, Transfer Agent and Paying Agent with respect to the
Bonds.
Upon surrender for transfer of any Bond with a written instrument of
transfer satisfactory to the Registrar, went ofcanyt ax, fee ogother governmental
duly authorized attorney, and upon pay
charge required to be paid with respect to such transfer, the Issuer shall execute
and the Registrar shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more fully registered Bonds of any authorized
denominations and of a like aggregate principal amount, interest rate and maturity.
Any Bonds, upon surrender thereof at the office of the Registrar mac, ate princil al
of the registered owner thereof, be exchanged for an equal aggr g p
amount of Bonds of the same maturity and interest rate of any authorized
denominations. In all cases in which the privilege of exchanging or transferring
fully registered Bonds is exercised, the Issuer shall execute and the Registrar shall
deliver Bonds in accordance with the provisions of this Resolution. For every such
exchange or transfer of Bonds, whet uffic ent to reimburse) it for anystax, fee or
bond Registrar may make a charge s
other governmental charge required to be paid with respect to such exchange or
transfer, which sum or sums shall be paid by the person requesting such exchange
or transfer as a condition precedent to the exercise of the privilege of making such
exchange or transfer. Notwithstanding any other provision of this Resolution, the
cost of preparing each new Bond upon each exchange or transfer, and any other
expenses of the Issuer or the Bond Registrar incurred in connection therewith
(except any applicable tax, fee or other governmental charge) shall be paid by the
Issuer. The Issuer shall not be obligated to make any such exchange or transfer of
Bonds during the fifteen (15) days. next preceding the date of the first publication
of notice of redemphall not becrequ~red to make anyetransfer oBexcha geeofsany
and the Registrar s
Bonds called for redemption.
3.03. Interest on any Bond which is payable, and is punctually paid or duly
provided for, on any interest payment date shall be paid to the person in whose
name that Bond (or one or more Bonds for which such bond was exchanged) is
registered at the close of business on the preceding January 15 and July 15, as the
case may be. Any interest on any Bond which is payable, but is not punctually paid
or duly provided for, on any interest payment date shall forthwith cease to be
payable to the registered holder on the relevant regular record date solely by
virtue of such holder having been such holder; and such defaulted interest may be
paid by the Issuer to the person in whose name such Bond is registered at the close
of business on a special record date established by the Registrar for the payment of
such defaulted interest. Subject to the foregoing provisions of this paragraph, each
Bond delivered under this Resolution upon transfer of or in exchange for or in lieu
of any other Bond shall carry all the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Bond and each such Bond shall bear
interest from such date that neither gain nor loss in interest shall result from such
transfer, exchange or substitution.
3.04. As to any Bond, the Issuer and the Registrar and their respective
successors, each in its discretion, may deem and treat the person in whose name
the same for the time being shall be registered as the absolute owner thereof for
all purposes and neither the Issuer nor the Registrar nor their respective successors
shall be affected by any notice to the contrary. Payment of or on account of the
principal of any such Bond shall be made only to or upon the order of the registered
owner thereof, but such registration may be changed as above provided. All such
7
payments shall be valid and esum ors ms sot paid and discharge the liability upon
such Bond to the extent of the
3.05. If (i) any mutilated Bond is surrendered to the Registrar, and the
Issuer and the Registrar receiver etherecs deliverred torthe Issuer and the Registrar
loss, or theft of any Bond, and (t )
such security or indemnity as ofanotce touthe Issuerhor the Registrarhthattsuch
harmless, then, in the absence
Bond has been acquired by a bi authentpicate and~deleveru n exchange for~orninupeu
its request the Registrar shal
of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of like to irorc se
principal amount, bears 8 o ed,niost,nor stolen Bond has lbeeomea orris s• about to
any such mutilated, d y
become due and payable, the Issuer in its discretion may, instead of issuing a new
Bond, pay such Bond.
Upon the issuanc a sumnsuffic etnto cover tany taxs ortother governmental
require the payment of
charge that may be imposed in destro ed,elost, or sto en Bond shall constitute an
this subsection in lieu of any y
original additional contractual shallgber at any tt me senforceable by anyone, and
destroyed, lost, or stolen Bond
shall be entitled to all the benef issued hereunderution equally and proportionately
with any and all other Bonds duly
The provisions of this Section are exclusive and shall preclude (to the a ment
lawful) all other righed lost, or stolen Bonds.spect to the replacement or pay
of mutilated, destroy ,
Section 4. Execution and Delivery
4.01. The Bonds shall be exec st se tforth insthetformaofrBondSrThe seal of
Mayor and the Clerk-Administrator a
the Issuer shall be omitted from t~eGBaven, Chartered, of Minneapol s, Minnesota,
approving legal opinion of Holmes
as bond counsel, shall be printeure of the Clerk-Administrator B Whennsa d Bonds
certified by the facsimile signet
shall have been duly executed and authenticated by the Registrar in accment of
with this resolutioe, and theereceipt of the Clerk-Administrator delivered to .the
the purchase pric ,
Purchaser thereof shall be a full au chasenmoneya The Bonds shall not be valid for
to see to the application of the p
any purpose until authenticated by the Registrar.
4.02. The Official Statement relating to the Bondoved,f and the furn shing
Administrator presented to this meeting, is hereby app
thereof to prospective bidders fo onds ad the sale thereof.tified and confirmed,
insofar as the same relates to the B
4.03. If such officers fie tend directed to furnish to~theePurchasernat the
Clerk-Administrator are authortz
closing a certificate that, to the best of the knowledge of such officers, the
8
Official Statement does not, at the date of closing, and did not, at the time of sale
of the Bonds, contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in the light
of the circumstances under which they were made, not misleading. Unless'
litigation shall have been commenced and be pending questioning the Bonds,
revenues pledged for payments of the bonds, or the organization of the Issuer or
incumbency of its officers, at the closing, the Mayor and the Clerk-Administrator
shall execute and deliver to the successful bidder a suitable certificate as to
absence of material litigation, and a certificate as to payment for and delivery of
the Bonds, together with the arbitrage certificate referred to below and the signed
approving legal opinion of Holmes & Graven, Chartered, as to the validity and
enforceability of the Bonds and the exemption of interest thereon from federal and
Minnesota income taxation (other than Minnesota corporate and bank excise taxes
measured by income) under present laws and rulings.
Section 5. Bond Fund and Accounts, Appropriations, Pledge.
5.01. There is hereby created a special fund of the Issuer designated
"General Obligation Tax Increment Bonds, Series 1987A Fund" (the "Bond Fund")
held and administered by the Clerk-Administrator separate and apart from all
other Funds of the Issuer. The Bond Fund shall be maintained in the manner
specified until all of the Bonds herein authorized, any refunding bonds issued to
refund the Bonds, and any other general obligation tax increment bonds hereafter
issued and made payable from the Bond Fund, and the interest thereon, have been
fully paid and the Issuer has been fully reimbursed from the pledge of tax
increment for any of the principal and interest of the Bonds paid by the Issuer from
general ad valorem taxes levied on property in the Issuer. In the Fund there shall
be maintained two separate accounts, to be designated as the "Capital Account"
and the "Debt Service Account," respectively.
Capital Account. The proceeds from the sale of the Bonds, less the amount
of the proceeds of the Bonds deposited in the Debt Service Account, and less any
accrued interest received thereon, shall be credited to the Capital Account, from
which there shall be paid all costs and expenses of the District, including the cost
of any construction contracts heretofore let and all other costs incurred and to be
incurred, of the kind authorized in Minnesota Statutes, Sections 475.65, 273.75,
subdivision 4, and Minnesota Statutes, Sections 462.411 et seg.
Debt Service Account. There is hereby pledged and there shall be credited
to the Debt Service Account (a) all unused discount and accrued interest received
upon delivery of and payment for the Bonds, (b) collections of tax increment
derived from the District and pledged to the payment of principal of and interest
on the Bonds, any taxes levied for the payment of the Bonds, and revenues derived
from any other sources available and pledged to pay principal, premium, if any, and
interest on the Bonds, (c) $15,000 to be used to pay interest on the Bonds prior to
the collection of tax increment and other revenues sufficient to pay debt service
on the Bonds, and (d) all funds remaining in the Capital Account after completion
of the Project and payment of the costs thereof. The Debt Service Account herein
created shall be used solely to pay principal of, premium, if any, and interest on
the Bonds and any other general obligation tax increment bonds hereafter issued
and made payable from said Debt Service Account, except that upon discharge of
the Bonds and such already outstanding or additional Bonds, the Issuer may use any
9
remaining funds in the Debt Service Account to reimburse the Issuer as provided
above.
5.02. To provide additional moneys for the payment of principal and
interest on the Bonds there is hereby levied upon all of the taxable property in the
issuer a direct annual ad valorem tax which shall be spread upon the tax rolls and
collected with and as part of, other general property taxes in said Issuer for the
years and in the amounts as follows:
Levy Year
Collection Year
Amount Levied
[See Attached]
Said tax levies are such that if collected in full, they, together with estimated
collections of tax increment from the District and the other amounts therein
pledged to the payment of the Bonds, will produce at least five percent (5%) in
excess of the amount needed *.o meet when due the principal and interest payments
on the Bonds (except for interest payable from funds which shall be on hand and
irrevocably deposited to the Debt Service Account as of the date of delivery of and
payment for the Bonds). Said tax levies shall be irrevocable so long as any of the
Bonds are outstanding and unpaid, provided that the Issuer reserves the right and
power to reduce the levies in the manner and to the extent permitted by Minnesota
Statutes Section 475.61, subdivision 3. The Issuer hereby determines that the
estimated collections of tax increment and other pledged amounts, together with
the above levy, if collected in full, will produce at least five percent (596) in excess
of the amount needed to meet when due the principal and interest payments on the
Bonds (except for interest and principal payable from funds, which are on hand and
irrevocably deposited to the Debt Service Account as of the date of delivery of and
payment for the Bonds). The full faith and credit and taxing powers of the Issuer
are hereby irrevocably pledged for the prompt and full payment of the principal of
and interest on the Bonds and such other general obligation indebtedness as may be
made payable from the Bond Fund, as such principal and interest respectively
become due.
5.03. The Clerk-Administrator is directed to keep on file in his office a
tabulation of the dates and amounts of the principal and interest payments to
become due and amounts of the principal and interest payments to become due on
bonds payable from the Bond Fund, and of the balance required in the Bond Fund
on October 1 in each year in order to cancel the taxes levied pursuant to this
Resolution for collection the following year.
Section 6. Tax Increment Pledge Agreement.
6.01. The County Auditor of Wright County (the "County Auditor") has
certified that the original assessed value of real property within the
District established pursuant to a Tax Increment Financing Plan, originally adopted
as of March 25, 1985, as determined according to the assessment as of January 2,
1984, and certified by the County Auditor on May 15 , 1985 is $18,840.
Under the provisions of Minnesota Statutes, the County Auditor will include only
the original assessed value in the assessed valuation upon which the County
Auditor 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
10
of such real property in each subsequent year, and the County Treasurer of Wright
County will remit to the HRA that proportion of the taxes paid each year on such
real property which the excess of the assessed valuation over the original taxable
value bears to such original value.
6.02. The HRA has agreed to segregate the tax increment derived from the
District on its official books and records and to remit to the Debt Service Account
of the Bond Fund the amount of tax increment required to be remitted to the Issuer
pursuant to a Tax Increment Pledge Agreement in substantially the form attached
hereto as Exhibit A. Such Tax Increment Pledge Agreement is hereby approved,
and the Mayor and Clerk-Administrator of the Issuer are hereby authorized to
execute the same on behalf of the Issuer with such necessary and appropriate
variations, omissions and insertions as are not materially inconsistent with such
form as the Mayor, in his discretion, shall determine; provided that the execution
thereof by the Mayor shall be conclusive evidence of such determination.
Section 7. Miscellaneous.
7.01. The Issuer covenants and agrees with the Purchaser and holders of
the Bonds that the investments of proceeds of the Bonds, including the investment
of any revenues pledged to the Bonds which are considered proceeds under the
applicable regulations, and accumulated sinking funds, if any, shall be limited as to
amount and yield in such manner that the Bonds shall not be arbitrage bonds within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the
"Code"), and regulations thereunder. On the basis of the existing facts, estimates
and circumstances, including the foregoing findings and covenants, the Issuer
hereby certifies that it is not expected that the proceeds of the Bonds will be used
in such manner as to cause the Bonds to be arbitrage bonds under Section 148 and
regulations thereunder. The Mayor and Clerk-Administrator shall furnish an
arbitrage certificate to the Purchaser embracing or based on the foregoing
certification at the time of delivery of the Bonds to the Purchaser. The proceeds
of the Bonds will likewise be used in such manner that the Bonds are not Private
Activity bonds under Section 103(b) of the Code.
?.02. The Issuer hereby designates the Bonds as "Qualified Tax-Exempt
Obligations" within the meaning of Section 265 of the Code. With respect to such
deisgnation, the Issuer covenants that it does not reasonably anticipate issuing
qualified tax-exempt obligations in an amount greater than $10,000,000 in calendar
year 1987.
7.03. The Clerk-Administrator is hereby authorized and directed to certify
a copy of this Resolution and to cause the same to be filed in the office of the
Wright County Auditor, together with such other information as such auditor may
require, and to obtain from the county auditor a certificate that the Bonds have
been entered upon his bond register.
7.04. The officers of the Issuer are authorized and directed to prepare and
furnish to the Purchaser and to the attorneys approving the Bonds, certified copies
of all proceedings and records of the Issuer relating to the power and authority of
the Issuer to issue the Bonds within their knowledge or as shown by the books and
records in their custody and control, and such certified copies and certificates shall
be deemed representations of the Issuer as to the facts stated therein.
Adopted this 27th day of April, 1987.
11
AMERICAN NATIONAL BANK 5.609'0
SAINT PAUL 5.90°~
Duran & M oody,lncorporated 6.10%
6.30%
6.60%
6.80%
7.00%
7.20%
7.40%
7.60%
1990 $359,160.00 $199,019.00
199 I (7.189 I %)
1992
1993
1994
1995
1996
1997
1998
1999
PIPER, JAFFRAY & HOPWOOD 5.70% 1990 $358,977.50 $199,455.83
INCORPORATED 5.90% 1991 (7.2049%)
6.10% 1992
6.40% 1993
6.70% 1994
6.90% 1995
7.00% 1996
7.20% 1997
7.40% 1998
7.50% 1999
DOUGHERTY, DAWKINS, STRAND & 5.75%
YOST, INCORPORATED .6.00%
6.20%
6.50%
6.70%
6.90%
7.10%
7.30%
7.40%
7.50%
1990 $359,525.00 $200,129.99
1991 (7.2292%)
1992
1993
1994
1995
1996
1997
1998
1999
MOORE, JURAN & COMPANY, 6.40% 1990-1991 $358,481.10 $202,395.57
INCORPORATED 6.25% 1992 (7.3110%}
6.50% 1993
6.75 % 1994
7.009'0 1995.
7.10.% 19'.96
7.25% 1997
7.40% 1998
7.50% 1999 _.
ALLISON-WILLIAMS COMPANY 5.75%
6.00%
6.2596
6.50%
6.75%
7.00%
7.25%
7.50%
7.75%
8.00%
-------------------------------------------------------
These Bonds are be
1990 $358,481.11 $207,227.23
1991 (7.4856%)
1992.
1993
1994
1995
1996
1997
1998
1999
-------------------------------------------------------
ing reoffered at par.
BBI: 7.82
Average Maturity: 7.58 Years
SPRINGSTED ~~JCORPORATE~
Public ~r~ance Advisors
85 East Seventh Place, Suite 100
Saint Paul Minnesota 551012143
612 223 3000
$365,000
CITY OF MONTICELLO, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1987A
AWARD: THE FIRST NATIONAL BANK OF SAINT PAUL
SALE:
Apri 127, 1987
Moody's Rating: A
Interest
Bidder Rates Netlnterest
Price Cost & Rate
THE FIRST NATIONAL BANK OF 5.50% 1990 $358,795.00 $197,872.50
SAINT PAUL 5.75% 1991 (7.1477%)
6.00% 1992
6.25% 1993
6.50% 1994
6.70% 1995
7.00% 1996
7.20% 1997
7.40% 1998
7.50% 1999
NORWEST INVESTMENT SERVICES, 5.50%
INCORPORATED 5.75%
6.00%
6.25%
6.50%
6.75%
7.00%
7.20%
7.40%
7.60°
1990 $359,160.00 $198,166.67
199 I (7.1583%)
1992
1993
1994
1995
1996
1997
1998
1999
DAIN BOSWORTH INCORPORATED 5.509'0 1990 $358,521.25 $198,805.42
5.75% 1991 (7.18141 %)
6.00% 1992
6.25% 1993
6.50% 1994
6.75% 1995
7.00% 1996
7.20% 1997
7.40% 1998
7.60% 1999
(continued)
ATTACHMENT
Levy Year Collection Year Amount Levied
1987 1988 $1,318
1988 1989 2,376
1989 1990 644
1990 1991 0
1991 1992 1,026
EXHIBIT A
TAX INCREMENT PLEDGE AGREEMENT
by and between
THE CITY OF MONTICELLO, MINNESOTA
and
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
THIS AGREEMENT is made and entered into on or as of the day of
1987, by and between the City of Monticello, Minnesota (the "City"),
and The Housing and Redevelopment Authority in and for the City of Monticello,
Minnesota (the "HRA").
WHEREAS, the HRA established Tax Increment Redevelopment District No.
5 (the "District"), prepared the Tax Increment Financing Plan (the "Plan") for the
District, and approved the modification of the Plan on January 7, 1987; and
WHEREAS, the City Council of the City approved the modification of the
Plan on February 9, 1987; and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section
273.77, and Minnesota Statutes, Chapter 475, the City has agreed to finance
certain public redevelopment costs to be incurred by the HRA in the District
through the issuance of general obligation bonds of the City, designated the
$365,000 General Obligation Tax Increment Bonds, Series 1987A, and hereinafter
referred to as the "Bonds"; and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to
the City for the payment of the principal of and interest on the Bonds; and
WHEREAS, pursuant to Minnesota Statutes, Section 273.77(a), any
agreement to pledge tax increment revenues must be made by written agreement
by and between the HRA and the City and must be filed with the County Auditor of
Wright County;
NOW, THEREFORE, the City and the HRA mutually agree to the following:
(1) The City will sell the Bonds.
(2) The proceeds from the sale of the bonds and the earnings from
the investment of such proceeds will be made available to the HRA to pay
or reimburse the HRA for public redevelopment costs paid, incurred, or to
be paid or incurred, by the HRA in the District.
(3) All tax increment generated by the District from and after the
date of this Agreement shall be deposited in a special fund (the "Project
Fund") held by the HRA. The HRA hereby pledges to the payment of the
principal and interest on the Bonds, tax increment from the Project Fund in
an amount equal to 105% of the annual principal and interest due on the
Bonds.
(4) Before the date of certification of City taxes in each year for
collection by Wright County (such date being hereinafter referred to as the
"Certification Date"), there shall be transferred from the Project Fund to
the Debt Service Account maintained by the City for the payment of the
Bonds, an amount which when taken together with amounts already on
deposit in the Debt Service Account, is equal to 10596 of all principal and
interest then due or to become due on the Bonds on the following three debt
service payment dates. If, prior to any Certification Date the Project Fund
contains an amount in excess of the amount to be transferred to the Debt
Service Account maintained by the City for the payment of the Bonds
before such Certification Date, then such excess amounts shall be available
to the HRA to pay or reimburse the HRA for public redevelopment costs
paid, incurred, or to be paid or incurred, by the HRA in the District.
(5) Without regard to anything in this Agreement to the contrary,
tax increment generated by the District shall be available to pay principal
of and interest on both the Bonds and any other obligations issued by the
City, HRA or any other public body to finance public redevelopment costs
paid or incurred by the HRA in the District.
(6) When the entire public redevelopment costs of the District
have been paid and all principal and interest on the Bonds and other
obligations issued to finance the public redevelopment costs of the District
have been paid, and the City has been reimbursed from collections of tax
increment from the Project for collections of general ad valorem taxes used
to pay principal of and interest on the Bonds, then the HRA shall report such
fact to the City Council of the City and the HRA shall submit a final
statement of such payments. Upon audit of this statement and approval
thereof by the City Council, the payment of the expenditures of the HRA in
the Project shall be reported to the County Auditor of Wright County.
(7) An executed copy of this Agreement shall be filed with the
County Auditor of Wright County pursuant to the requirement contained in
Minnesota Statutes, Section 273.77(a).
IN WITNESS WHEREOF, the City and the HRA have caused this Agreement
to be duly executed on their behalf and their seals to be hereunto affixed and such
signatures and seals to be attested, as of the day and year first above written.
ATTEST:
ay
Clerk-Administrator
CITY OF MONTICELLO
Mayor
(SEAL)
ATTEST:
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
Secretary
ay
Chairman
r a~
CERTIFICATION OF MINUTES
Municipality: City of Monticello, Minnesota
Governing body: City Council
r
Meeting: A meeting of the City Council of the City of Monticello,
Minnesota held on the 27th day of April, 1987, at 7:30
p. m. at the City Municipal Building in the City of Monticello,
Minnesota.
Members
present: D. Blonigen, F. Fair, W. Fair, W. Smith & Mayor A. Grimsmo
Members
absent: None
Documents: A copy of a resolution adopted by the;City Council of the City
of Monticello at said meeting.
Certification:
I, Thomas A. Eidem , Administrator of the City of
Monticello do hereby certify the following:
Attached hereto is a true and correct copy of a resolution on file and of
record in the offices of .the City of ;Monticello, which resolution was adopted by the
City Council, at the meeting referred to above. Said meeting was a regular
meeting of the City Council, was open to the public, and was held at the time and
place at which meetings of the City Council are regularly held. Member
W. Fair moved the adoption of the attached resolution. The motion for
adoption of the attached resolution was seconded by Member F. Fair A
vote .being taken on the motion, the following voted in favor of the resolution:
All members
and the following voted against the resolution:
None
1
,.
Whereupon said resolution was declared duly passed and adopted. The attached
resolution is in full Porce and effect and no action has been taken by the City
Council of the City of Monticello which would in any way alter or amend the
attached resolution.
Witness my hand officially as the Clerk-Administrator of the City of
Monticello, Minnesota, this Z~.l^ day of April, 1987.
Clerk-Administrator
2