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City Council Resolution 1983-88a } RB.SOLIITION NO. 1983 #88 RESOLUTION AUTHORIZING THE LSSUANCE AND SALE OF $32,000 GENERAL OBLIGATION TAX INCREMENT NOTE OF 1983 WHEREAS, the City of Monticello (the "City's is authorized to issue its tax increment general obligation bonds pursuant to Minnesota Statutes, Section 273.77 in the manner provided in Minnesota Statutes, Chapter 475; and WHEREAS, The Housing and Redevelopment Authority in and for the City of Monticello and the City Council of the City (the "Council") have adopted a redevelopment project in accordance with Minnesota Statutes, Sections 462.411 et sec. and have established a tax increment financing district designated the Monticello Tax Increment Redevelopment District No. 3 (the "District's pursuant to Minnesota Statutes, Sections 273.71 et sey; and WHEREAS, the sale of the General Obligation Tax Increment Note of the City of Monticello in the aggregate principal amount of $32,000 (the "Note's has been negotiated pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(2), and the City has not issued other obligations in the aggregate principal amount in excess of $268,000 in the three-month period beginning August 11, 1983. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Monticello, Minnesota, as follows: 1. The City hereby accepts the offer of Citizen's State Bank of Big Lake, Minnesota to purchase the Note at an interest rate of 9% per annum and to pay therefore the sum of $32,000 plus accrued interest to the date of delivery. Principal of and interest on the l~fi'ote shall be payable by check or draft mailed from the City to the registered owners of the Note. 2. The Note shall be dated November 1, 1983 and shall be issued forthwith as a fully registered note without coupons. Principal of the Note shall mature in accordance with the schedule attached thereto on each February 1 from February 1, 1986 to February 1, 1997, and shall bear interest, payable on each February 1 and each August 1 from February 1, 1984 to August 1, 1985, and on each February 1 thereafter. 3. The Note is being issued for the purpose of financing certain public redevelopment costs incurred with respect to the District. Tax increment ~., generated by the District will be pledged to the payment of principal of, premium, if any, and interest on the Note. In compliance with Minnesota Statutes, Section 475.58, the estimated collection of tax increment from the District is not less than 20% of the cost of the improvement for which the Note is sold. The public ' redevelopment costs shall include the costs enumerated in Minnesota Statutes, Section 475.65, and it is estimated that said costs will exceed the amount o the Note herein authorized. Public redevelopment activities in the District shall be commenced within six months from the date of delivery of the Bonds and shall proceed with due diligence to completion. -1 - 4. The Note will be subject to prepayment in whole but not in part at the option of the City on any interest payment date at a price equal to the outstanding principal amount of the Note, plus accrued interest to the date of prepayment. Notice of prepayment shall in each case be published not less than 30 days prior to the prepayment date in a daily or weekly periodical published in a Minnesota city of the first class, or its metropolitan area, which circulates throughout the State of Minnesota and furnishes financial news as part of its service, and at least thirty (30) days prior to the prepayment date a copy of the prepayment notice shall be mailed by first class mail to the registered holder of the Note. 5. (A) The Note to be issued hereunder shall be in substantially the following form: STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO No. GENERAL OBLIGATION TAX INCREMENT NOTE The City of Monticello, Minnesota (the "City', for value received promises to pay to Citizen's State Bank of Big Lake, Minnesota, or registered assigns, in the manner hereinafter provided the principal sum of Thirty-two Thousand Dollars with interest on the unpaid principal balance at the rate of nine percent (9°b) per annum, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. The principal of and interest on this Note are payable in installments due as follows: (1) On or before February 1, 1984 there shall be paid an interest only payment equal to $720.000. On each August 1 and February thereafter through August 1, 1985 there shall be paid interest payments equal to $1440.00; and (2) On or before February 1, 1986, and on each February 1 thereafter to and including February 1, 1996, principal and interest shall be payable in equal monthly installments of Four Thousand Two Hundred and Eighty Four and 33/100 Dollars ($4,284.33), (representing principal of and ~. interest on the Note in the amounts set forth in Schedule A attached hereto and incorporated herein by reference) with a final payment of Four Thousand Two Hundred and Eighty Four and 29/100 ($4,284.29) on February 1, 1997. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Note is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution duly adopted by the -2- City Council of the City on November 14, 1983. Principal of and interest on this Note are payable from the 1983 General Obligation Tax Increment Note Fund of the City. The unpaid principal balance of this Note together with accrued interest may be prepaid in whole, but not in part on any installment date without penalty or premium. Published notice of the prepayment of this Note shall be published not less than thirty (30) days prior to the prepayment date in a daily or weekly periodical published in a Minnesota city of the first class, or its metropolitan area, which circulates throughout the State of Minnesota and furnishes financial news as part of its service, and at least thirty (30) days prior to the prepayment date a copy of the prepayment notice shall be mailed by first-class mail to the registered holder of the Note. The City shall register this Note upon its books. Upon such registration, this Note shall be transferable only by the Holder hereof in person or by its attorney duly authorized in writing by registration hereon and on the books of the City kept for that purpose at the office of the City Administrator and upon surrender hereof together with a written instrument of transfer satisfactory to the City Administrator, duly executed by the Holder or its duly authorized attorney. Upon such transfer, the City Administrator will note the date of registration and the name and address of the new Holder upon the books of the City and in the registration blank appearing below. The City may deem and treat the person in whose name this Note is last registered upon the books of the City, with such registration also noted on this Note, as the absolute owner hereof, whether or not overdue, for the purpose of receiving payment of or on account of the principal hereof, interest hereon or any other sums payable hereunder, and for all other purposes, and all such payments so made to the Holder or upon its order shall be valid and effectual to satisfy and discharge the liability on this Note to the extent of the sum or sums so paid, and the City shall not be affected by any notice to the contrary. In the event this Note is mutilated, lost, stolen, or destroyed, the City shall execute a new Note of like terms; provided that in the case of mutilation, the Note shall first be surrendered to the City, and in the case this Note is lost, stolen, or destroyed, there shall be first furnished to the City evidence of such loss, theft, or destruction satisfactory to the City, together with an indemnity satisfactory to it. In the event this Note shall have matured or been called for redemption, instead of issuing a duplicate Note, the City may pay the same without surrender thereof. The City may charge the holder or owner of this Note with its reasonable fees and expenses in this connection. 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 happen and to be performed, precedent to and in the issuance of this Note, in order to make it a valid and binding obligation of the City in accordance with its terms, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and this Note, together with all other debts of the City outstanding on the date hereof and the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. -3 - In witness whereof, the City of Monticello, Minnesota, by its City Council has caused this Bond to be sealed with its official seal, to be executed in its behalf by the signatures of the Mayor and City Administrator as of ber 1, 1983. .amity Administrator Mayor (SEAL) Certificate of Registration It is hereby certified that the City of Monticello, Minnesota, has this day registered the within Note as to principal and interest, in the name of the party set forth in the registration blank below, on the books kept by the undersigned for such purpose: Name Registered Date of Owner Registration Authorized Signature of City Administrator Citizens State Bank November _, 1983 of Big Lake, Minnesota Schedule A ' To General Obligation Tax Increment Note Total Date Due Principal Interest Debt Service 2/1/84 $ - $ 720.00 $ 720.00 8/1/84 - 1440.00 1440.00 2/1/85 - 1440.00 1440.00 8/1/85 - 1440.00 1440.00 2/1/86 2844.33 1440.00 1440.00 2/1/87 1660.32 2624.01 4284.33 2/1/88 1809.75 2474.58 4284.33 2/1/89 1972.63 2311.70 4284.33 2/1/90 2150.16 2134.17 4284.33 2/1/91 2343.68 1940.65 4284.33 211/92 2554.61 1729.72 4284.33 2/1/93 2784.52 1499.81 4284.33 2/1/94 3035.13 1249.20 4284.33 2/1/95 3308.29 976.04 4284.33 2/1/96 3606.04 678.29 4284.33 2/1/97 3930.54 353.75 4284.29 -4-• 6. The Note shall be executed on behalf of the City by the Mayor and City Administrator of the City and shall be sealed with the official seal of the City. 7. Upon receipt of the purchase price of the Note, within forty (40) days of the date hereof, the Note shall be delivered by the City Administrator or other officer of the City, to the purchaser, together with the signed legal opinion of Holmes 8c Graven, Chartered, of Minneapolis, Minnesota, as bond counsel as to the validity of the Note, the exemption from federal income taxation of interest on the Note, and as to certain other matters. The City shall register the Note upon its books, and the Note shall be transferable by the holder thereof in the manner set forth above in the Note. The person in whose name any Bond is registered may be deemed the owner thereof by the City and any notice to the contrary shall not be binding upon the City. 8. There is hereby created a special fund designated "1983 General Obligation Tax Increment Note Fund" (the "Fund's to be held and administered by the Finance Director of the City separate and apart from all other funds of the City. The Fund shall be maintained in the manner herein specified until the Note, any refunding bond issued to refund the Note, and any other general obligation tax increment note hereafter issued and made payable from the Fund have been fully paid and the City has been fully reimbursed for all of the principal and interest of the Note paid by the City from taxes levied on property in the City other than the District or from any source other than tax increment generated by the District. In said Fund there shall be maintained two separate accounts, to be designated the "Capital Account," and the "Debt Service Account." Capital Account. There shall be deposited in the Capital Account the proceeds from the sale of the Note, less any accrued interest, as well as tax increment, land sale proceeds, special assessments or other District income not otherwise transferred pursuant to this section to the Debt Service Account for the payment of principal of and interest on the Note. All public redevelopment costs and expenses, including the cost of any construction contract heretofore let, and all other costs incurred and to be incurred, of the kind authorized in Minnesota Statutes, Section 475.65, shall be paid from the Capital Account. In addition, the monies in the Capital Account may be used if necessary to pay principal of or interest on the Note due prior to the date of commencement of the collection of sufficient tax increment, and if upon completion of the public redevelopment improvements in the District there shall remain any unexpended monies in the Capital Account, such monies shall be deposited in the Debt Service Account. Debt Service Account. There shall be deposited in the Debt Service Account all accrued interest received upon delivery of and payment for the Note. In addition, there shall be deposited in the Debt Service Account as collected that portion of tax increment and any general ad valorem taxes hereafter levied which, together with monies then on deposit in the Debt Service Account, are sufficient for the payment of principal and interest to become due on the Note at the two succeeding installment payment dates, and any amounts in the Capital Account required to pay principal of or interest on the Note from time to time, or remaining after completion of the public improvements in the District. Monies in the Debt Service Account are hereby pledged to pay principal of and interest on -5- the Note when due. The Debt Service Account shall be used to pay principal of and interest on the Notes, and any other general obligation tax increment bonds of the City hereafter issued by the City and made payable from the Debt Service Account as provided by law. 9. That the City will request that the County Auditor of Wright County (the "County Auditor's certify that the original assessed value of real property within the District, as determined according to the assessment as of January 2, 1983. It is estimated that collections of tax increment together with other revenues pledged to the payment of principal of and interest on the Note will produce at least five percent (59b) in excess of the amount needed to meet when due the principal and interest payments on the Note. The full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Note, as the same respectively become due and payable. 10. Interest earnings from the investment of money in the Debt Service Account and the Capital Account shall remain in each respective account. 11. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Wright County, together with such other information as shall be required, and to obtain from such County Auditor his or her certificate that the Note has been entered in the Auditor's Bond Register. 12. The officers of the City are hereby authorized and directed to prepare and furnish to the purchaser of the Note, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the Note and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the Note as to the facts recited therein. T ~A'f.