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City Council Resolution 1992-32Extract of Minutes of Meeting of the City Council of the City of Monticello, Wright County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Monticello, Minnesota, was duly held in the City Hall in said City on November , 23 , 19 9 2, commencing at 7: o o P . M. The following members were present: Ken Maus, Shirley Anderson, Brad Fyle, Clint Herbst, Dan Blonigen and the following were absent: None Member Shirley Anderson introduced the following resolution and moved its adoption: RESOLUTION NO. 92-32 A RESOLUTION RELATING TO $120,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1992; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; PROVIDING FOR THEIR PAYMENT; AND PROVIDING FOR THEIR SALE AND PURCHASE BE IT RESOLVED By the City Council of the City of Monticello, Wright County, Minnesota ( City) as follows: Section 1. Findings, Authorization of Bonds. 1.01. It is hereby determined that: (a) the City has duly established Redevelopment Project No. I (Project Area) pursuant to Minnesota Statutes, Sections 469.001 through 469.047 (Act) ; (b) the City has duly established tax increment financing district no. 1-12 (TIF District) within the Project Area pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (TIF Act) ; (c) the City is authorized by section 469.178 of the TIF Act to issue and sell its general obligations to pay all or a portion of the public redevelop- ment costs ( Costs) related to the Project Area as identified in the redevelopment plan and tax increment financing plan (Plan) for the TIF District. SNG44187 MN190-38 1 (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue $120,000 General Obligation Taxable Tax Increment Bonds, Series 1992 (Bonds) to provide financing for the Costs; 1.02 . The issuance by the City of the Bonds is hereby u": -Lr o�rized . Section 2. Sale of Bonds. 2.01. The sale of the Bonds to the City, and the purchase of the Bonds with certain investment funds of the City is hereby authorized. 2.02. The City will forthwith issue and sell the Bonds in the total principal amount of $120,000, originally dated as of the date of delivery thereof, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, and which mature serially on February 1 in the years, amounts and bearing interest at rates as follows: Investment Investment Year Amount Rate Year A;r.ount Rate 1995 $10,000 6.50% 1999 $15,000 6.50% 1996 15,000 6.50 2000 20,000 6.50 1997 15,000 6.50 2001 20,000 6.50 1998 15,000 6.50 2002 10,000 6.50 2.03. Optional Redemption. The City may prepay Bonds at any time in whole or in part. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first . If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot. All payments will be at a price of par plus accrued interest. Section 3. Registration and Payment. 3.01. Registered Form. The Bonds shall be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft. 3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case such Bond shall be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case such Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 1993, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 3.03. Registration. The City may appoint and maintain a bond registrar, transfer agent, authenticating agent and paying agent (Registrar) . After such appointment, the effect of registration and the rights and duties of the City and the Registrar with respect thereto will be as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the SNG44187 MN190-38 2 registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon any transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For a transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the SNG44187 MN190-38 3 Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice in the manner required by law. Failure to give notice by publication or by mail to any registered owner, or any defect therein, will not affect the validity of any proceeding for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. (j) Appointment of Registrar . Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Finance Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 3.04. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the Administrator and executed on behalf of the City by the signatures of the Mayor and the Administrator. In case any officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of any Bond, such signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Section 4. Form of Bond. 4.01. The Bonds will be in substantially the following form: SNG44167 mN190-3s 4 [ Face of the Bond] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF MONTICELLO GENERAL OBLIGATION TAXABLE TAX INCREMENT BOND, SERIES 1992 Date of Rate Maturity Original Issue No. The City of Monticello, Minnesota, a duly organized and existing municipal corporation in Wright County, Minnesota (City), acknowledges itself to be indebted and for value received hereby promises to pay to or registered assigns, the principal sum of $ on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 1993, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft of the City, or a registrar designated under the Resolution described herein. 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. The City may prepay Bonds of this issue in whole or in part on any date. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first . If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot. All prepayments shall be at a price of par plus accrued interest. This Bond is one of an issue in the aggregate principal amount of $120, 000 all of like original issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution adopted by the City Council on , 19 (the Resolution) , for the purpose of providing money to aid in financing public redevelopment costs in a Redevelopment Project (Project) in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.179, the Minnesota Tax Increment Financing Act, and Minnesota Statutes, Sections 469.001 through 469.047, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxable valuation of real property in the Tax Increment Financing District (TIF District) within the Project as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency of tax SNG44187 MN190-38 5 increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. The City may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and the City will not be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED 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 preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Monticello, Wright County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below. Dated: City Adminis gator Section 5. Payment; Security. CITY OF CE O, MINNESOTA ayor 5.01. The Bonds are-)ayable from the General Obligation Taxable Tax Increment Bonds Series 1992 Debt Service Fund (Debt Service Fund) hereby created, and all tax increments (Tax Increments) received by the City from the TIF District, pursuant to the Tax Increment Agreement, dated November 1, 1992, between the City and the Housing and Redevelopment Authority of the City of Monticello, are pledged to the Debt Service Fund. If any payment of principal or interest on the Bonds shall become due when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director will pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for such advances out of the proceeds of Tax Increments when received. There is hereby appropriated to the Debt Service Fund all capitalized interest financed from Bond proceeds, if any. 5.02. It is hereby determined that the estimated collection of Tax Increments for payment of principal and interest on the Bonds will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and that no tax levy is needed at this time. 5.03. The City Administrator is authorized and directed to file a certified copy of this resolution with the County Auditor of Wright County and to obtain the certificate required by Minnesota Statutes, Section 475.63. SNG44187 MN190-38 6 5.04. The Mayor and City Administrator are authorized and directed to execute the Tax Increment Agreement substantially in the form on file with the Administrator. The motion for the adoption of the foregoing resolution was duly seconded by Member Clint Herbst , and upon vote being taken thereon, the following voted in favor thereof: Ken Maus, Shirley Anderson, Clint Herbst Dan Blonigen, Brad Fyle and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. SNG44187 MN190-38 7