City Council Resolution 1985-32CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 1985 #32
BEING A RESOLUTION AUTHORIZING AND AWARDING THE
SALE OF, AND PROVIDING THE FORMS, TERMS,
COVENANTS AND DIRECTIONS. FOR 5350,000
GENERAL OBLIGATION TAX INCREMENT BONDS,
SERIES 1985, PLEDGING FOR THE SECURITY THEREOF
TAX INCREMENT FROM TAX INCREMENT REDEVELOPMENT DISTRICT
NO. 6, 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 Redevelopment District No. 6 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
sec., 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 Redevelopment District No. 6 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, 1985. The original assessed value of the
District is $2,795.00, and will be adjusted each year in accordance with Minnesota
Statutes, Section 273.76, Subdivision 1.
1.03 Based upon present and anticipated mill rates for ad valorem taxes to
be levied on taxable property in Redevelopment District No. 6, the Council hereby
determines that the total annual tax increment to be derived by the HRA from the
District commencing in 1988 will be approximately $41,000.
Section 2. Award of Sale; Terms of Bonds.
2.01. The City of Monticello (the "Issuer") hereby awards the sale of the
$350,000 General Obligation Tax Increment Bonds, Series 1985 (the "Bonds") to
"Purchaser") as the bidder offering the lowest net interest cost
purchase the Bonds at a price of $ plus accrued interest
delivery, the Bonds to bear interest at the rates per annum as follows:
(the
by its bid to
to the date of
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1989 1998
1990 1999
1991 2000
1992 2001
1993 2002
1994 2003
1995 2004
1996 2005
1997 2006
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
$350,000, dated December 1, 1985 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 August 1, 1986 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
1989 10,000 1998 20,000
1990 10,000 1999 20,000
1991 10,000 2000 20,000
1992 10,000 2001 25,000
1993 10,000 2002 25,000
1994 15,000 2003 30,000
1995 15,000 2004 30,000
1996 15,000 2005 35,000
1997 15,000 2006 35,000
2.03. All Bonds maturing on or after February 1, 1996, 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, 1995, 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.
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2.04. The Bonds shall be payable as to principal upon presentation at the
~~~~,« office of (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.
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- $
GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1985
Rate Maturity Nominal Date of Original Issue CUSIP
December 1, 1985
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 December 1, 1985, 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 August 1, 1986, 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.
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The Bonds of this series maturing on or after February 1, 1996, are subject
_ lemption 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 Bond is one of a series of Bonds in the aggregate principal amount of
Three Hundred and Fifty Thousand Dollars ($350,000) of like date and tenor except
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
Redevelopment District No. 6 established by the Monticello Housing and
Redevelopment Authority (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 December 9, 1985, and 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 General Obligation Bonds,
Series 1985 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
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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.
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 /
Mayor
Clerk-Administrator
Certificate of Authentication
This is one of the Bonds described in the within mentioned Resolution.
Bond Registrar
By
Authorized Signature
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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, 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 Notice: The signature(s) on this
commercial bank or trust company or assignment must correspond with the
by a brokerage firm having name(s) appearing on the face of this
membership in one of the major stock Bond in every particular, without
exchanges. 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 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 & 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. is
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, 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 do 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. The Official Statement relating to the Bonds, on file with the Clerk-
Administrator presented to this meeting, is hereby approved, and the furnishing
thereof to prospective bidders for the Bonds is hereby ratified and confirmed,
insofar as the same relates to the Bonds and the sale thereof.
4.03. If such officers find the same to be accurate, the Mayor and the
Clerk-Administrator are authorized and directed to furnish to the Purchaser at the
closing a certificate that, to the best of the knowledge of such officers, the
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al 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.
4.01. There is hereby created a special fund of the Issuer designated
"General Obligation Tax Increment Bonds, Series 1985 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 Aeeount" 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) $68,250 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
_ __.____ling 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 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 (5%) 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 tax increment
district established pursuant to a Tax Increment Financing Plan, adopted as of
November 12, 1985, as determined according to the assessment as of January 2,
1985, and certified by the County Auditor on , 1985 is $2,795.00. 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
10
_ ___ property in each subsequent year, an
will remit to the HRA that proportion o
property which the excess of the assessed
bears to such original value.
d the County Treasurer of Wright County
f the taxes paid each year on such real
valuation over the original taxable value
5.02. 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 103(c) of the Internal Revenue Code of 1954, as amended,
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 103(c) 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 industrial
development bonds under Section 103(b) of the Internal Revenue Code of 1954, as
amended. The proceeds of the Bonds will likewise be used in such manner that the
Bonds are not private loan bonds as defined in Section 103(0) of the Internal
Revenue Code of 1954, as amended.
7.02. 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.
7.03. 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 9th day of December, 1985.
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ATTACHMENT
Lew Year Collection Year Amount Levied
1987 1988 $
1988 1989 $
1989 1990 $
1990 1991 $
1991 1992 $
1992 1993 $
1993 1994 $
1994 1995 $
1995 1996 $
1996 1997 $
1997 1998 $
1998 1999 $
1999 2000 $
2000 2001 $
2001 2002 $
2002 2003 $
2003 2004 $
2004 2005 $
2005 2006 $
EXHIBIT A
TA% 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
1985, 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 Redevelopment District No. 6 (the
"District"), prepared the Tax Increment Financing Plan #6 (the "Plan") for the
District, and approved the Plan on October 10, 1985; and
WHEREAS, the City Council of the City approved the Plan on November 12,
1985; 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
$350,000 General Obligation Tax Increment Bonds, Series 1985, 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(x).
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:
Clerk-Administrator
CITY OF MONTICELLO
By
Mayor
(SEAL)
ATTEST:
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
Secretary
I3y
Chairman