HRA Resolution 2000-03Extract of Minutes of Meeting
of the Housing and Redevelopment Authority In and For the
City of Monticello, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the Housing and
Redevelopment Authority In and For the City of Monticello, Minnesota was duly held in the City
Hall in said City on Monday, February 2, 2000, commencing at 7: 00 o'clock P.M.
The following members were present:
Chair Bob Murray, Steve Andrews, Dan Frie, Darrin Lahr and Brad Barger
and the following were absent:
Council Liaison Brian Stumpf
The Chair announced that the next order of business was consideration of the proposals
which had been received for the purchase of the Authority's $7,555,000 Public Project Revenue
Bonds, Series 2000A.
Ehlers & Associates, Inc. presented a tabulation of the proposals which had been received in
the manner specified in the Terms of Proposal of the Series 2000A Bonds. The proposals were as
follows:
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After due consideration of the proposals, Member Steve Andrews then introduced
and moved the adoption of the following written resolution:
RESOLUTION NO. 00 -03
A RESOLUTION AWARDING THE SALE OF $7,555,000
PUBLIC PROJECT REVENUE BONDS, Series 2000A
BE IT RESOLVED By the Housing and Redevelopment Authority In and For the City of
Monticello, Minnesota (the "Authority "), as follows:
Section 1. Recitals.
1.01. The City of Monticello, Minnesota (the "City ") is authorized by Minnesota Statutes,
Section 465.7 1, as amended, to acquire real and personal property under lease - purchase agreements.
1.02. The Authority has agreed with the City that pursuant to a Ground Lease dated as of
December 1, 1998 (the "Ground Lease "), the Authority will acquire certain property from the City,
and the Authority will lease such property, together with the buildings, structures or improvements
now or hereafter located thereon, to the City pursuant to a Lease- Purchase Agreement dated as of
December 1, 1998 (the "Lease ").
1.03. The Authority issued its $7,385,000 Temporary Public Project Revenue Bonds,
Series 1998 (the "Temporary Bonds ") in order to finance the cost of acquisition, construction and
equipping of the Facilities described in the Lease.
1.04. Pursuant to a Trust Indenture dated as of March 1, 2000 (the "Indenture "), between
the Authority and , as trustee (the "Trustee "), the
Authority will issue its Public Project Revenue Bonds, Series 2000A (the "Series 2000A Bonds ") in
an aggregate principal amount of $7,555,000.
1.05. In connection with issuance of the Series 2000A Bonds, the Authority will enter into
an Amendment No. 1 to the Ground Lease and an Amendment No. 1 to the Lease, dated as of
March 1, 2000.
1.06. Under the Indenture, proceeds of the Series 2000A Bonds will be used to refund the
outstanding principal amount of the Temporary Bonds.
1.07. Pursuant to an Assignment and Security Agreement dated as of March 1, 2000 (the
"Assignment "), the Authority will assign to the Trustee all of the Authority's right, title and interest
in and to the Ground Lease as amended, the Lease as amended and the Lease Payments to be made
by the City thereunder (other than certain rights to indemnification and payment of expenses) as
security for the Series 2000A Bonds.
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1.08. Forms of Amendment No. 1 to the Ground Lease, Amendment No. 1 to the Lease,
the Indenture, the Assignment, the Official Statement for the Series 2000A Bonds, and a Continuing
Disclosure Certificate of the City dated as of March 1, 2000, have been prepared and submitted to
the Authority and are on file with the Authority.
Section 2. Sale of Series 2000A Bonds.
2.01. The proposal of (the "Purchaser ") to
purchase the Series 2000A Bonds is hereby found and determined to be a reasonable offer and is
hereby accepted, the proposal being to purchase the Series 2000A Bonds at a price of $
plus accrued interest to date of delivery, for Series 2000A Bonds bearing interest as follows:
Year of Interest
Year of Interest
Maturity Rate
Maturity Rate
2001
2009
2002
2010
2003
2011
2004
2012
2005
2013
2006
2014
2007
2015
2008
True interest cost: %
2.02. The Treasurer is directed to retain the good faith check of the Purchaser, pending
completion of the sale of the Series 2000A Bonds, and to deliver the good faith check to the Trustee
upon the issuance of the Series 2000A Bonds. The Authority shall return the good faith checks of
the unsuccessful proposers forthwith.
2.03. The Authority will forthwith issue and sell the Series 2000A Bonds in the total
principal amount of $7,555,000, originally dated March 1, 2000, in the denomination of $5,000 each
or any integral multiple thereof, numbered No. R -1, upward, bearing interest as above set forth, and
which mature serially on February 1, in the years and amounts as follows (subject to redemption
and prior payment as set forth in the Indenture):
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Year
Amount
Year
Amount
2001
$1201000
2009
$505,000
2002
90,000
2010
530,000
2003
40,000
2011
870,000
2004
135,000
2012
920,000
2005
260,000
2013
950,000
2006
260,000
2014
970,000
2007
430,000
2015
995,000
2008
480,000
2.04. Execution, Authentication and Delivery. The Series 2000A Bonds, substantially in
the form provided in the Indenture, will be prepared under the direction of the Authority staff and
executed on behalf of the Authority by the signatures of the Chair and one other officer of the
Authority, provided that all signatures may be printed, engraved or lithographed facsimiles of the
originals. Notwithstanding such execution, a Series 2000A Bond will not be valid or obligatory for
any purpose or entitled to any security or benefit under this Resolution or the Indenture unless and
until a certificate of authentication on the Series 2000A Bond has been duly executed by the manual
signature of an authorized representative of the Trustee. When the Series 2000A Bonds have been
so prepared, executed and authenticated, the Authority will deliver the same to The Depository
Trust Company, New York, New York, on behalf of the Purchaser, upon payment of the purchase
price, and the Purchaser is not obligated to see to the application of the purchase price.
Section 3. Approval and Execution of Documents. The Amendment No. 1 to the
Ground Lease, the Amendment No. 1 to the Lease, the Indenture, the Assignment, and the
Continuing Disclosure Certificate described in Section 1 are hereby approved. The Chair and one
other officer of the Authority are authorized and directed to execute and deliver the Amendment No.
1 to the Ground Lease, the Amendment No. 1 to the Lease, and the Indenture on behalf of the
Authority, substantially in the forms on file, but with all such changes therein as shall be approved
by the officers executing the same, which approval shall be conclusively evidenced by the execution
thereof. Copies of all of the transaction documents shall be delivered, filed and recorded as
provided therein. The Chair and other officers of the Authority are also authorized and directed to
execute such other instruments as may be required to give effect to the transactions herein
contemplated.
Section 4. Payment; Security Pledges and Covenants. The Series 2000A Bonds are
payable solely from the Lease Payments to be made by the City under the Lease as amended and
from other moneys realized by the Trustee after default or termination of the Lease by the City as
provided therein. No property or funds of the Authority, other than the property pledged pursuant to
the Indenture and assigned to the Trustee pursuant to the Assignment, is pledged to the payment of
the Series 2000A Bonds.
Section 5. Authentication of Transcript; Use of Proceeds.
5.01. The officers of the Authority are authorized and directed to prepare and furnish to
the Purchaser and to the attorneys approving the Series 2000A Bonds, certified copies of
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proceedings and records of the Authority relating to the Series 2000A Bonds and such other
certificates, affidavits and transcripts as may be required to show the facts within their knowledge or
as shown by the books and records in their custody and under their control, relating to the validity
and marketability of the Series 2000A Bonds and such instruments, including any heretofore
furnished, may be deemed representations of the Authority as to the facts stated therein.
5.02. The preparation and distribution of the Official Statement prepared and circulated in
connection with the issuance and sale of the Series 2000A Bonds is hereby approved.
5.03. The proceeds of the Series 2000A Bonds shall be deposited, held, invested and
disbursed as provided in the Indenture.
Section 6. Tax Covenants.
6.01. The Authority covenants and agrees with the holders from time to time of the Series
2000A Bonds that it will not take or permit to be taken by any of its officers, employees or agents
any action which would cause the interest on the Series 2000A Bonds to become subject to taxation
under the Internal Revenue Code of 1986, as amended (the "Code "), and the Treasury Regulations
promulgated thereunder, in effect at the time of such actions, and that it will take or cause its
officers, employees or agents to take, all affirmative action within its power that may be necessary
to ensure that such interest will not become subject to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to the
Series 2000A Bonds.
6.02. In order to qualify the Series 2000A Bonds as "qualified tax- exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the Authority makes the following factual
statements and representations:
(a) the Series 2000A Bonds are not "private activity bonds" as defined in
Section 141 of the Code;
(b) the Authority hereby designates the Series 2000A Bonds as "qualified tax -
exempt obligations" for purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax- exempt obligations (other than any
private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the
Authority (and all subordinate entities of the City) during calendar year 1998 will not exceed
$10,000,000; and
(d) not more than $10,000,000 of obligations issued by the Authority during
calendar year 1998 have been designated for purposes of Section 265(b)(3) of the Code.
6.03. The Authority will use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this Section.
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The motion for the adoption of the foregoing resolution was duly seconded by Member
Dan Frie , and upon vote being taken thereon, the following voted in favor
thereof. Steve Andrews, Dan Frie, Bob Murray, Darrin Lahr and Brad Barger
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
COUNTY OF WRIGHT ) SS.
CITY OF MONTICELLO )
I, the undersigned, being the duly qualified and acting Secretary of the Housing and
Redevelopment Authority In and For the City of Monticello, Minnesota, do hereby certify that I
have carefully compared the attached and foregoing extract of minutes of a regular meeting
of the Authority held on February 2, 2000 with the original minutes on file in my office and the
extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of
$7,555,000 Public Project Revenue Bonds, Series 2000A of the Authority.
WITNESS My hand officially as such Secretary this 2nd day of February, 2000.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO,
MINNESOTA
CA
Secretary
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