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City Council Resolution 1989-17CITY OF MONTICELLO, MINNESOTA RESOLUTION NUMBER 1989-17 RESOLUTION AUTHORIZING ISSUANCE OF $260,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1989A OF THE CITY OF MONTICELLO BE IT RESOLVED by the City Countil (the "Council") of the City of Monticello, Minnesota (the "City"), as follows: 1. Bond Purpose and Authorization Sale. a. Pursuant to the provisions of Minnesota Statutes, Chapters 469 and 475, the City is authorized to issue bonds for the purposes of providing funds to finance certain public redevelopment costs of a project (the "Project") undertaken pursuant to Minnesota Statutes, Chapter 469. b. It is hereby found, determined and declared that (i) the issuance of the Series 1989A Bonds is necessary and desireable to provide funds to finance certain public redevelopment costs of the Project in the City; and (ii) to provide for issuance costs thereof; and that the City should issue, and the City hereby authorizes and directs the issuance and sale of, its General Obligation Taxable Tax Increment Bonds, Series 1989A in the aggregate principal amount of $260,000 (the "Bonds"). 2. Sale. This Council shall meet at the time and place specified in the form of the Official Notice of Sale for the Bonds attached hereto as Exhibit A for the purpose of opening and considering sealed bids for, and awarding the sale of the Bonds. 3. Notice of Bond Sale. The Council hereby authorizes the publication of notice of advertisement for sealed bids for the Bonds in the official newspaper of the City, and in Commercial West, in substantially the form attached hereto as Exhibit A. Each and all of the terms and provisions set forth in such notice are adopted and confirmed as the terms and conditions of the Bonds and the sale thereof. 4. Official Terms of Offering. The Official Terms of Offering of the Bonds in substantially the form attached hereto as Exhibit B shall constitute the terms and conditions for the sale of the Bonds, and the Council hereby authorizes the incorporation of such terms and conditions in the material to be distributed to prospective bidders for the Bonds. Information and bidding forms may be obtained from the undersigned or from Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101-2143; telephone 612-223-3000, financial consultants to the City. Dated this 12th day of June, 1989. ~ ~.~_ Mayor Attest: _,t-~_~ Ad inistrator EXHIBIT A OFFICIAL NOTICE OF SALE City of Monticello, Minnesota =260,000 General Obligation Taxable Taa Increment Bonds Series 1989A NOTICE IS HEREBY GIVEN that sealed bids for the purchase of $260,000 General Obligation Taxable Tax Increment Bonds, Series 1989A (hereinafter referred to as the "Bonds") of the City of Monticello, Minnesota (the "Issuer") will be received until 12:00 noon, Central Time, on the 10th day of July, 1989, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143, at which time any bids received will be opened and tabulated. Bids of not less than $255,320 and accrued interest on the Bonds will be considered. The bids will be considered and acted upon by the City Council (the "Council") at a meeting of the Council at ?:30 p. m., Central Time, of the same day. The Bonds will be issued pursuant to Minnesota Statutes, Chapters 475 and 469, for the purpose of financing certain public redevelopment costs within the City of Monticello. The Bonds will be issued as fully registered bonds in denominations of $5,000, or any integral multiples thereof as requested by the purchaser, will be dated August 1, 1989, and will mature serially on February 1 in the following years and amounts: YEAR AMOUNT YEAR AMOUNT 1992 $ 5,000 2000 $ 15,000 1993 5,000 2001 20,000 1994 5,000 2002 20,000 1995 10,000 2003 20,000 1996 10,000 2004 25,000 1997 10,000 2005 25,000 1998 15,000 2006 30,000 1999 15,000 2007 30,000 Interest will be payable on each February 1 and August 1, commencing February 1, 1990. The Bonds maturing on or after February 1, 2000, will be subject to redemption and prepayment on February 1, 1999 and any interest payment date thereafter, at a price equal to par plus accrued interest. Exhibit B OFFICIAL TERMS OF OFFERING 5260,000 CITY OF MONTICELLO, MINNESOTA GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1989A Sealed bids for the Bonds will be received by the City on Monday, July 10, 1989, until 12:00 Noon, Central Time, at the offices of SPRINGSTED Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 551 01-21 43 after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated August 1, 1989, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 1990. Interest will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amounts as follows: 1992 $ 5,000 1996 $10,000 2000 $15,000 2004 $25,000 1993 $ 5,000 1997 $10,000 2001 $20,000 2005 $25,000 1994 $ 5,000 1998 $15,000 2002 $20,000 2006 $30,000 1995 $10,000 1999 $15,000 2003 $20,000 2007 $30,000 OPTIONAL REDEMPTION The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or after February 1, 2000. Redemption may be in whole or in part and if in part, in inverse order of maturity and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par and accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax increment income from the City's Tax Increment Financing District No. 1-2. The proceeds will be used for the acquisition of property and site improvements. TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in gross income of the recipient for United States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and bank excise taxes measured by net income. TYPE OF BID Bids shall be for not less than $255,320 and accrued interest on the total principal amount of the Bonds, and shall be accompanied by a certified or cashier's check in the amount of $2,600, payable to the order of the City. No bid will be considered for which said check has not been received. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted bid, said amount will be retained by the City. No bid can be withdrawn after the time set for receiving bids unless the meeting of the City scheduled 'for award of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1 /S of 1 %. There is no limit on the interest rate spread 'rf bid in ascending order; however, no rate for any maturity shall be more than 1 % lower than any prior rate. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional bid will be accepted. AWARD The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be determined by the deduction of the premium, if any, from, or the addition of any amount less than par, to the total dollar interest on the Bonds from their date to their final scheduled maturity. The City's computation of the total net dollar interest cost of each bid, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and,-(iii) reject any bid which the City determines to have failed to comply with the terms herein. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of, Holmes 8~ Graven, Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reasons of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The purchaser will be provided with 25 copies of the Official Statement. Dated June 12, 1989 BY ORDER OF THE CITY COUNCIL /s/ Rick Wolfsteller Administrator _ CERTIFICATION OF MINUTES Issuer: The City of Monticello Governing body: City Council Meeting: A meeting of the City Council of the City of Monticello, Minnesota held on the 12th day of June, 1989, at 7 : oo p . m . at the City Hall in the City of Monticello, Minnesota. Council Members present: Kenneth Maus, Shirley Anderson, Dan Blonigen, Frances Fair and Warren Smith Council Members absent: None Documents: A copy of a resolution adopted by the City Council of the City of Monticello at said meeting. Certification: I, Rick Wolfsteller, 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 reQUlar 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 Fair moved the adoption of the attached resolution. The motion for adoption of the attached resolution was seconded by Member Smith A vote being taken on the motion, the following voted in favor of the resolution: Maus, Anderson, Blonigen, Fair and Smith and the following voted against the resolution: None 1 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. Wi ness my hand officially as the Administrator of the City of Monticello this 1~~ay of June , 1989. City , dministrator 2