City Council Resolution 2008-06CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 2008 -6
RESOLUTION GIVING FINAL APPROVAL TO ISSUANCE
OF PUBLIC PROJECT REVENUE REFUNDING BONDS,
SERIES 2008A (CITY OF MONTICELLO, MINNESOTA
LEASE OBLIGATION) RELATED TO CERTAIN PUBLIC
FACILITIES AND AGREEMENTS RELATED THERETO
BE IT RESOLVED By the City Council of the City of Monticello, Minnesota as follows:
Section 1. Recitals.
1.01. The City of Monticello, Minnesota (the "City") is authorized by Minnesota
Statutes, Section 465.71, as amended, to acquire real and personal property under lease- purchase
agreements.
1.02. Pursuant to a Ground Lease, dated as of December 1, 1998 and amended as of
March 1, 2000 (the "Original Ground Lease'), between the City and the Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota (the "HRA "), the HRA
acquired a leasehold interest from the City in certain property located within the City (the "Site").
1.03. Pursuant to a Lease- Purchase Agreement, dated as of December 1, 1998, between
the HRA and the City, the HRA leased the Site to the City in connection with the acquisition,
construction and equipping of a community center, armory and city hall (the "Facilities') financed
by the issuance of the HRA's $7,385,000 Temporary Public Project Revenue Bonds, Series 1998
(the "Series 1998 Bonds ").
1.04. The HRA refimded the Series 1998 Bonds by the issuance of its $7,555,000 Public
Project Revenue Bonds, Series 2000A (the "Series 2000A Bonds "), which issuance required an
Amendment No. 1 to the Lease- Purchase Agreement, dated as of March 1, 2000 (such agreement,
as amended, is referred to as the "Original Lease ").
1.05. By Resolution No. 2007 -85, adopted on October 22, 2007, the City Council
transferred the control, authority and operation of all projects of the HRA, including the
Series 2000A Bonds and all agreements related thereto, to the City of Monticello Economic
Development Authority (the "Authority'), pursuant to Minnesota Statutes, Section 469.094,
Subdivision 2.
1.06. The Authority is authorized by Minnesota Statutes, Chapter 469, as amended, to
issue and sell revenue bonds to finance the construction of the Facilities and related costs, and to
issue bonds to refund such bonds.
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)7. In order to refund the Series 2000A Bonds in advance of maturity, the Authority
.o issue a series of revenue bonds in the aggregate principal amount of
urzagnared as "Public Project Revenue Refunding Bonds, Series 2008A (City of Monticello,
Minnesota Lease Obligation)" (the "Bonds "), to be issued pursuant to a Trust Indenture, dated as of
February 1, 2008 (the "Indenture'), by and between the Authority and U.S. Bank National
Association, as trustee (the "Trustee").
1.08. Proceeds of the Bonds will be used to pay costs of issuance of the Bonds and to fund
the escrow account established to effectuate refunding of the Series 2000A Bonds, all pursuant to
the Escrow Agreement (Series 2008A), between the Authority and the Trustee, as escrow agent,
dated as of February 1, 2008 (the "Escrow Agreement! ').
1.09. Concurrent with the issuance of the Bonds, the Authority has deemed it necessary to
eater into an Amended and Restated Ground Lease, dated as of February 1, 2008, between the City
and the Authority (the "Ground Lease "), and an Amended and Restated Lease - Purchase Agreement,
dated as of February 1, 2008, between the Authority and the City (the "Lease "), which supersede in
all respects the Original Ground Lease and the Original Lease, respectively.
1.10. Pursuant to an Assignment and Security Agreement, dated as of February 1, 2008
(the "Assignment "), the Authority will assign to the Trustee all of the Authority's right, title and
interest in and to the Ground Lease, the Lease and the Lease Payments to be made thereunder
(except for certain rights to indemnification and payment of expenses and advances), as security for
the Bonds.
1.11. Forms of the Ground Lease, the Lease, the Assignment, the Indenture, the Escrow
Agrecment, and the Official Statement for the Bonds have been prepared and submitted to the City
and are on file with the City.
Section 2. Financing Documents.
2.01. In connection with issuance of the Bonds, the following documents have been
prepared:
a. the Ground Lease;
b. the Lease;
C. the Assignment;
d. the Indenture;
e. the Escrow Agreement; and
f: the Continuing Disclosure Certificate of the City
(collectively, the "Financing Documents")
2.02. The City Council has reviewed the Financing Documents and has determined that
approval of the Financing Documents will be in the best interests of the City and its residents and
will further the public health, safety, and welfare.
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ction 3. Approvals.
s.ut. ltie PInancing Documents are hereby approved, and the authorized officials are
directed to execute all Financing Documents to which the City is a party or signatory, subject to
modifications that do not alter the substance of the transactions and are approved by such
officials. Such officials are hereby authorized in their discretion to execute and deliver, on
behalf of the City, such other affidavits, certificates, and other documents in connection with the
issuance, sale, and delivery of proceeds of the Bonds. Execution of the Financing Documents
and any other affidavits, certificates, and other documents is conclusive evidence of their
approval.
3.02. The Official Statement for the Bonds, as completed and supplemented, and its
distribution to potential purchasers of the Bonds, are hereby approved. The City, as an
"obligated person" with respect to the Bonds, will comply with the requirements of Rule 15c2-
12(b)(5) of the Securities and Exchange Commission, as set forth in the Continuing Disclosure
Certificate for the Bonds.
3.03. The City hereby approves all actions taken or to be taken by the Authority with
regard to the issuance of the Bonds, including but not limited to the Authority's actions in
awarding the sale of the Bonds.
3.04. City staff and consultants are authorized to take all actions necessary to implement
the agreements hereby approved.
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.proved by the City Council of the City of Monticello, Minnesota. this 14th day of
January, 2008.
CITY OF MONTICELLO, MINNESOTA
Mayor
ATTEST:
.ity RapW suator
326499x2 AJP MN 190 -128