City Council Resolution 1987-17
CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 1987-17
BEING A RESOLUTION AUTHORIZING AND AWARDING THE
SALE OF, AND PROVIDING THE FORM, TERMS,
COVENANTS AND DIRECTIONS FOR $155,000
TAXABLE GENERAL OBLIGATION TAR INCREMENT BONDS,
SERIES 1987B, PLEDGING FOR THE SECURITY THEREOF
TAX INCREMENT FROM TAX INCREMENT ECONOMIC DEVELOPMENT
DISTRICT NO. ?, AND AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT
BE IT RESOLVED BY THE CITY COUNCIL (THE "COUNCIL") OF THE
CITY OF MONTICELLO, MINNESOTA (THE "ISSUER") AS FOLLOWS:
Section 1. Recitals.
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
Tax Increment Economic Development District No. 7 pursuant to Minnesota
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 Tax Increment Financing Plan for
its Tax Increment Economic Development District No. 7 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 Economic Development District as of January 2, 1986. The original
assessed value of the District is $18,240.00.
1.03 Based upon present and anticipated mill rates for ad valorem taxes to
be levied on taxable property in Tax Increment Economic Development District No.
7 (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 $30,230.
Section 2. Award of Sale; Terms of Bonds.
2.01. The City of Monticello (the "Issuer") hereby awards the sale of the
$155,000 Taxable General Obligation Tax Increment Bonds, Series 1987B (the
"Bonds") to Miller & Schroeder Financial, Inc. (the "Purchaser")
as the bidder offering the lowest net interest cost by its bid to purchase the Bonds
at a price of $ 152, 458.00 plus accrued interest to the date of delivery, the Bonds
to bear interest at the rates per annum as follows:
w
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1990 8.00% 1994 8.70%
1991 8.25% 1995 8.80%
1992 8.50% 1996 8.90%
1993 8.60% 1997 9.00%
The Clerk-Administrator of the Issuer is directed to retain the good faith check of
the Purchaser pending delivery of and payment for the Bonds, and to return the
checks of the unsuccessful bidders.
2.02. The Issuer shall issue the Bonds in the aggregate principal amount of
$155,000 dated July 1, 1987 as fully registered bonds without coupons. The Bonds
shall be in denominations of $5,000 or any integral multiple thereof not exceeding
the principal amount of a single maturity, shall be numbered from R-1 upwards in
order of issuance, and shall bear interest at the rates set forth above, payable
February 1, 1988 and semiannually thereafter on each February 1 and August 1, and
shall mature on February 1 in the years and amounts as follows:
Year Amount Year .Amount
1990 $15,000 1994 $20,000
1991 15,000 1995 20,000
1992 15,000 1996 25,000
1993 20,000 1997 25,000
2.03. All Bonds maturing on or after February 1, 1995, shall be subject to
redemption and prior payment in whole or in part in inverse order of maturity and
by lot within maturity at the option of the City on February 1, 1994, and any
interest payment date thereafter at a price of par plus accrued interest. Thirty
days' prior notice of redemption shall be given by first-class mail to the Registrar
and to the registered owners of the Bonds, and notice of redemption will be
published in the manner provided by Chapter 475, Minnesota Statutes. Upon notice
having been so given, the Bonds or portions of Bonds therein specified shall be due
and payable at the stated redemption date and price with accrued interest to the
redemption date, and upon funds for such payment being held by or on behalf of the
Registrar for such payment on the specified redemption date, interest thereon shall
cease to accrue after such redemption date. No defect in the mailed notice of
redemption shall affect the validity of the call for redemption of any Bond.
2.04. The Bonds shall be payable as to principal upon presentation at the
main office of American National Bank and Trust Company (the
"Registrar"), or at the office of such other successor registrar as the Issuer may
hereafter designate upon 60 days mailed notice to the registered owners. Interest
on each Bond shall be payable by check or draft of the Registrar mailed the last
business day prior to the interest payment date to the registered holder thereof at
his or her address as it appears on the bond register at the close of business on the
15th day (whether or not a business day) of the calendar month next preceding the
interest payment date.
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Section 3. Form and Execution of the Bonds.
3.01. The Bonds shall be in substantially the following form, with the
necessary variations as to number, CUSIP Number, rate of interest and date of
maturity, the blanks to be properly filled in:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
CITY OF MONTICELLO
No. R-
TAXABLE GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1987B
Rate Maturity Nominal Date of Original Issue CUSIP
July 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 July 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 the
United States of America at , as
Registrar, Transfer Agent and Paying Agent, in ,Minnesota, or at
the offices of such successor agent as the City may designate upon 60 days notice
to the registered owners at their registered addresses (the "Registrar"). Interest
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, 1995, 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, 1994 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 Bond is one of a series of Bonds in the aggregate principal amount of
One Hundred Fifty-five Thousand Dollars ($155,000) of like date and tenor except
3
for number, interest rate, denomination, date of maturity and redemption
privilege, and is issued for the purpose of providing funds to finance or otherwise
pay public redevelopment costs, pursuant to Minnesota Statutes, Chapter 462, of
Tax Increment Economic Development District No. 7 established by the Housing
and Redevelopment Authority in and for the City of Monticello (the "Authority")
pursuant to Minnesota Statutes, Section 273.73, and pursuant to an authorizing
resolution (the "Resolution") adopted by the City Council of the City on June 22,
1987, pursuant to and in full conformity with the Constitution and laws of the State
of Minnesota, including Minnesota Statutes, Chapter 475 and Sections 273.71
through 273.78.
The Bonds of this series are payable from the Taxable General Obligation
Tax Increment Bonds, Series 1987B Fund of the City (the "Bond Fund") to which has
been pledged certain tax increment generated from the tax increment financing
district. All taxable property within the City is also subject to the levy of direct
general ad valorem taxes required by law to be levied and extended if needed for
this purpose, without limitation of rate or amount. The issuance of this Bond does
not cause the indebtedness of the City to exceed any constitutional or statutory
limitation thereon.
As provided in the Resolution, and subject to certain limitations set forth
therein, this Bond is transferable upon the books of the City kept for that purpose
at the principal office of the Registrar, by the registered owner hereof in person or
by such owner's attorney duly authorized in writing, upon surrender of this Bond
together with a written instrument of transfer satisfactory to the Registrar, duly
executed by the registered owner or such owner's duly authorized attorney. Upon
such transfer and the payment of any tax, fee or governmental charge required to
be paid by the City or the Registrar with respect to such transfer, there will be
issued in the name of the transferee a new Bond or Bonds of the same aggregate
principal amount as the surrendered Bond.
The Bonds of this series are issuable only as fully registered bonds without
coupons in denominations of $5,000 or any integral multiple thereof not exceeding
the principal amount maturing in any one year. As provided in the Resolution and
subject to certain limitations therein set forth, the Bonds of this series are
exchangeable for a like aggregate principal amount of Bonds of this series of a
different authorized denomination, as requested by the registered owner or his duly
authorized attorney, upon surrender thereof to the Registrar.
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 performed in order to make this Bond 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 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.
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IN WITNESS WHEREOF, The City of Monticello, Minnesota has caused this
Bond to be executed with the facsimile signatures of its Mayor and its Clerk-
Administrator, both as of the Nominal Date of Original Issue specified above.
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
5
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 Bond is held by joint account.)
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:
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 ac 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
and the registration of transfers of Bonds. American National Bank and Trust
Company is hereby appointed Registrar, Transfer Agent and Pavine Agent with
respect to tl:e Bond.
6
Upon surrender for transfer of any Bond with a written instrument of
transfer satisfactory to the Registrar, duly executed by the registered owner or his
duly authorized attorney, and upon payment of any tax, fee or other governmental
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 may, at the option
of the registered owner thereof, be exchanged for an equal aggregate principal
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, whether temporary or definitive, the Issuer or the
bond Registrar may make a charge sufficient to reimburse it for any tax, fee or
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 redemption in the case of a proposed redemption of Bonds. The Issuer
and the Registrar shall not be required to make any transfer or exchange of any
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
payments shall be valid and effectual to satisfy and discharge the liability upon
such Bond to the extent of the sum or sums so paid.
3.05. If (i) any mutilated Bond is surrendered to the Registrar, and the
Issuer and the Registrar receive evidence to their satisfaction of the destruction,
loss, or theft of any Bond, and (ii) there is delivered to the Issuer and the Registrar
such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Issuer or the Registrar that such
Bond has been acquired by a bona fide purchaser, the Issuer shall execute, and upon
its request the Registrar shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of like tenor and
principal amount, bearing a number not contemporaneously outstanding. In case
any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the Issuer in its discretion may, instead of issuing a new
Bond, pay such Bond.
Upon the issuance of any new Bond under this subsection, the Issuer may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto. Every new Bond issued pursuant to
this subsection in lieu of any destroyed, lost, or stolen Bond shall constitute an
original additional contractual obligation of the Issuer, whether or not the
destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Resolution equally and proportionately
with any and all other Bonds duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost, or stolen Bonds.
Section 4. Execution and Delivery
4.01. The Bonds shall be executed by the respective facsimile signatures of
Mayor and the Clerk-Administrator as set forth in the form of Bond. The seal of
the Issuer shall be omitted from the Bonds as permitted by law. The text of the
approving legal opinion of Holmes & Graven, Chartered, of Minneapolis, Minnesota,
as bond counsel, shall be printed on the reverse side of each Bond and shall be
certified by the facsimile signature of the Clerk-Administrator. When said Bonds
shall have been duly executed and authenticated by the Registrar in accordance
with this resolution, the same shall be delivered to the Purchaser upon payment of
the purchase price, and the receipt of the Clerk-Administrator delivered to the
Purchaser thereof shall be a full acquittance; and the Purchaser shall not be bound
to see to the application of the purchase money. The Bonds shall not be valid for
any purpose until authenticated by the Registrar.
4.02. 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 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
8
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
"Taxable General Obligation Tax Increment Bonds, Series 1987B 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 sec.
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) $21,482 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
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
1987-1995 1988-1996 -0-
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 to 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, as determined
according to the assessment as of January 2, 1986, and certified by the County
Auditor on May 4, 1987 is $18,240.00. 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 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,
10
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 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.
7.02. 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 22nd day of June, 1987.
11
r
~~
AWARD:
SALE:
June 22, 1987
Moody's Rating: A
Interest Net Interest
Ridder Rates Price Cost & Rate
MILLER & SCHROEDER, FINANCIAL
INCORPORATED
PIPER, JAFFRAY & HOPWOOD
INCORPORATED
AMERICAN NATIONAL BANK SAINT
PAUL
THE FIRST NATIONAL BANK OF
SAINT PAUL
MOORE, JURAN AND COMPANY,
INCORPORATED
8.00% 1990
8.25°~ 1991
8.50% 1992
8.60% 1993
8.70% 1994
8.80% 1995
8.90% 1996
9.00% 1997
8.25% 1990
8.40% 1991
8.60% 1992
8.70°~ 1993
8.80% 1994
8.90% 1995
9.00% 1996-1997
8.25% 1990
8.40% 1991
8.60% 1992
8.75% 1993
8.90% 1994
9.00% 1995
9.10% 1996
9.20% 1997
8.00°~ 1990
8.25% 1991
8.50% 1992
8.75% 1993
9.00% 1994
9.10% 1995
9.25% 1996-1997
8.25% 1990
8.50% 1991
8.75% 1992
9.00% 1993
9.20% d 99~,
9.309'0 1995
9.40% 1996
9.50% 1997
$152,458.00
$152,365.00
$152,600.00
$152,365.00
$152,365.00
These Bonds are being reoffered at par.
SPRINGSTED INCORPORATED
Public Finance Advisors
85 East Seventh Place, Suite 100
Saint Paul, Minnesota 551012143
612~223~3000
$ 155,000
CITY OF MONTICELLO, MINNESOTA
TAXABLE GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 19878
MILLER 8~ SCHROEDER FINANCIAL, INCORPORATED
$90,985.54
(9.0047%)
$91,934.38
(9.0986%)
$92,732.33
(9.1776%)
$93,446.04
(9.248%)
$95,615.83
(9.4630%)
BBI: 7.63
Average Maturity: 6.52 Years
EXHIBIT A
TAX INCREMENT PLEDGE AGREEMENT
by and between
THE CITY OF MONTICELLO, MINNESOTA
and
THE HOIISING AND REDEVELOPMENT AIITHORITY
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 Economic Development
District No. 7 (the "District"), prepared the Tax Increment Financing Plan (the
"Plan") for the District, and approved the Plan on , 1987; and
WHEREAS, the City Council of the City approved the Plan on
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
$155,000 Taxable General Obligation Tax Increment Bonds, Series 1987B, 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(x), 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`~O of the annual principal and interest due on the
Bonds.
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(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 105% 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 Projeet 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).
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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: CITY OF MONTICELLO
BY
Clerk-Administrator Mayor
(SEAL)
ATTEST:
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By
Secretary
Chairman
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CERTIFICATION OF MINUTES
Municipality: City of iVlonticello, Minnesota
Governing body: City Council
Meeting: A meeting of the City Council of the City of Monticello,
Minnesota held on the 22nd day of June, 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 ;1+ionticello 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
Bill Fair moved the adoption of the attached resolution. The motion for
adoption of the attached resolution was seconded by Member Dan Blonigen 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
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Whereupon said resolution was declared duly passed and adopted. The attached
resolution is in full force 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 ZZ.+~day of June, 1987 ~ ~ e
Clerk-Administrator
.. •~,
SPRINGSTED INCORPORATED
Public f u~~ncE Advisor
86 F-n t S wenfh Place, Suite 100
~ain(f aril, Mlnnr,~ota 5~101~?143
h12 72,3 3000
June 26, 1987
Mr. Rick Wolfsteller
Finance Director
City Hall
250 E. Broadway
Monticello, MN 55362-9245
RE: $155,000 Taxable G.O. Tax Increment Bonds, Series 1987
Dear Mr. Wolfsteller:
Enclosed you will find a completed copy of the resolution
awarding the sale, along with a copy of the debt service
schedule. These are for your files.
If you have any questions, please feel free to call me.
Sincerely,
Nancy Langnes
Vice President
Enclosures
/cep