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HomeMy WebLinkAbout08.07.86 SM MINUTES OF MAPLEi400D CITY COUNCIL 5:00 P.M., Thursday, Auaust 7, 1986 Council Chambers, Municipal Building Meeting No. 86-19 A. CALL TO ORDER A special meeting of the City Council of Maplewood, Minnesota, was held in the Council Chambers, Municipal Building, and was called to order at 5:01 P.24. by Acting Dlayor Bastian. - B. ROLL CALL John C. Greavu, tdayor Absent - Arrived at 5:21 P.M. Norman G. Anderson, Councilmember Present Gary W. Bastian, Councilmember Present Frances L. Joker, Councilmember Present Charlotte Wasiluk, Councilmember Present C. APPROVAL OF MINUTES PSone . D. APPROVAL OF AGENDA Acting Mayor Bastian moved to approve the Agenda as amended: 1. City Hall 2. Hillcrest Development Letter Seconded by Councilmember Anderson. Ayes - all. E. CONSENT AGENDA. None. F. PUBLIC HEARINGS None_ G. AWARD OF BIDS 1. General Obligation Improvement Bonds a. Mr. Dan Hartman, Miller and Schroeder, presented the bids for the above mentioned bonds. b. Councilmember Anderson introduced the followinq resolution and moved its adoption: 8/7 86 - 8 - 143 RESOLUTION ACCEPTING BID Otd SALE OF $3,265,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1986 -PROVIDING FOR THEIR ISSUANCE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MAPLEWOOD, MINNESOTA, as follows: 1. The bid of The First National Bank of St. Paul (the "Purchaser") to purchase $3,265,000 General Obligation Improvement Bonds of 1986 of the City (hereinafter referred to as "Bonds" or individually as "Bond"), in accordance with the-notice of bond sale, at the rates of .interest hereinafter set forth, andto .pay therefor the sum of $3,207,862.50 plus interest accrued to settle- ment is hereby found, determined and declared to be the most favorable bid re- ceived and is hereby accepted, and the Bonds are hereby awarded to said bidder. The City Clerk is directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. 2. The Bonds shall be dated August 1, 1986, as the date of original issue and shall be issued forthwith as fully registered bonds. The Bonds shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof. The Bonds shall mature on February 1 in the years and amounts as follows: 1989 - 1991 $180,000 1992 $185,000 1993 - 1995 $180,000 1996 $185,000 1997 - 1998 $180,000 1999 $185,000 2000 - 2002 $180,000 2003 $185,000 2004 - 2005 $180,000 2006 $185,000 3. The Bonds shall provide funds for the construction of various improve- ments (the "Improvements") in the City. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds herein authorized. Work on the Improvements shall proceed with due diligence to completion. 4. The Bonds shall bear interest payable semi-annually on February 1 and August 1 of each year commencing August 1, 1987 at the respective rates per annum set forth opposite the maturity years as follows: Maturity Years Interest Raiies 1989 5.40 1990 5.70 1991 6.00 1992 6.20 - 2 - 8/7 1993 6.40 1994 6.60 1995 6.60 1996 7.0 1997 7.10 1998 7.25 1999 7.40 2000 7.50 2001 7.50 2002 7.60 2003 7.60 2004 7.70 2005 7.70 2006 7.70 5. All Bonds of this issue maturing in the Years 1997 to 2006, both inclusive, shall be subject to redemption and prepayment at the option of the City on February 1, 1996, and on any interest payment due thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds _ subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for prepayment, the spe- cific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Pub- lished notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the paying agent and to each registered holder of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption, shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Binds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and the Bond Registrar duly executed by the holder thereof or his attorney duly authorized in writing) and the City shall execute and the Bond Registrar shall authenticate and deliver to the holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such holder, in aggregate prin- cipal amount equal to and in exchange for the unredeemed portion o£ the princi- pal of the Bond so surrendered. 6, First Trust Company, Inc., in St. Paul, Minnesota, is appointed to act as bond registrar and transfer agent (the "Bond Registrar") and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent here- with. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holder) of the Bonds in the - 3 - 8/7 manner set forth in the form of Bond and paragraph 12 of this resolution. - 7. The Bonds to be issued hereunder, together with the BondRegistrar's Certificate of Authentication, the form of Assignment and the registration information thereon shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF MAPLEWOOD R- $ GENERAL OBLIGATION IMPRO~IEMENT BOND OF 1986 INTEREST MATURITY DATEOF RATE DATE ORIGINAL ISSUE CUS IP August 1, 1986 REGISTERED OWNER: PRINCIPAL AMOUNT: KNOW ALL PERSONS BY THESE PRESENTS that the City of Maplewood, Ramsey County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date") commencing August 1, 1987 at the rate per annum specified above, (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided fora ThisBond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the prin- . cipal office of First Trust Company, Inc., in St. Paul, Minnesota, a cor- poration duly organized and validly existing under the laws of the State of Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed bythe Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special - Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. -4- 8/7 • REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 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 Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Maplewood, Ramsey County, Minnesota, by its City Council has caused this Bond to be executed in its behalf by the facsimile signatures of the Mayor and the City Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date ofRegistration: Registrable by: First Trust~Company, Inc. Payable at: First Trust Company, Inc. BONDREGISTRAR"S CITY OF MAPLEWOOD, CERTIFICATE OF RAMSEY COUNTY, L4INNESOTA AUTHENTICATION This Bond is one of the /s/ Facsimile Bonds described in the Mayor within mentioned Resolution. /s/ Facsimile Clerk First Trust Company, Inc., Bond Registrar By Authorized Signature ON REVERSE OF BOND All Bonds of this issue maturing in the Years 1997 to 2006, both inclusive, are subject to redemption and prepayment at the option of the Issuer on February 1, 1996 and on any Interest Payment Date thereafter at par and accrued interest. Redemption may be in whole or~in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest matur- ity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the paying agent and to the Holders of the Bonds. - 5 - 8/7 To effect a partial redemption of Bonds having a con~on maturity date, the Bond Registrar shall assign to each Bond having a common maturity date, a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the prin- cipal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be -the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrenderedto the Bond Registrar (with, if the Issuer or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and the Bond Registrar duly executed by the Holder thereof or his at- torney duly authorized in writing) and the Issuer shall execute and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in ex- change for the unredeemed portion of the principal of the Bond so surrendered. This Bond is one of an issue in the total principal amount of $3,265,000 - all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution issued pur- suant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on August 1, 1986 (the "Resolution") for the purpose of providing money to fi- nance the construction of various improvements in the City and is payable out of the General Obligation Improvement Bonds of 1986 Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. The Bonds are issuable solely as fully registered Bonds in the denominations of $5,000 and integral multiples thereof and are exchangeable for fully registered Bonds of other denominations in equal aggregate principal amounts and in author- ized denominations at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the _ Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. - This Bond is transferable by the Holder in person or by his attorney duly authorized in writing at the principal office of the Bond Registrar upon presen- tation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exbhange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an - 6 - 8/7 authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bear- ing interest at the same rate. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond. The Issuer and the Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided on the reverse side hereof with respect to the Record Date) and for all other .purposes, whether or not this Bond Registrar shall be affected by notice to the contrary. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full accord- ing to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT Custodian (Gust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. ASSIGNPAENT For Value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, with- out alteration osany change whatever. - 7 - 8/7 Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 8. The City may elect to deliver, in lieu of printed definitive bonds, - a single typewritten temporary bond in substantially the form set forth above. The temporary bond shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and cancelled. The Bonds shall be executed on behalf of the City by the signatures of its Mayor and City Clerk and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed facsimile; provided further that both of such signatures may be printed facsimiles and the corporate seal may be - omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signa- ture shall aooear on the Bonds shall cease to be such officer before the de- livery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in~ office until delivery. 9. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless and until a Certifi- cate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized represtentative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certifi- cate of Authentication on the Bond and by inserting as the date of registra- r tion in the space provided the date on which the Bond is authenticated, ex- cept that for the purposes .of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of origi- nal issue, which date is August 1, 1986. The executed Certificate of Authen- tication on each Bond shall be conclusive evidence that it has been authenti- cated and delivered under this resolution. 10. The City will cause to be kept at the principal office of the Bond Register a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Register shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. - 8 - 8/7 Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Regis- trar shall authenticate, insert the date of registration (as provided in paragraph 9) and deliver, in the name of the designated transferee or trans- ferees, one or more new Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and in- terest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. . At the option of the holder, Bonds may be exchanged for Bonds of any - authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the princi- pal office of the Bond Registrar. whenever any Bonds are to be surrenderecL-or exchanged,the City shallexecute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed'bf as directed by the City. All Bonds delivered in exchange for or upon transfer o£ Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be- duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the holder thereof or his attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any - tax or other governmental charge payable in connection with-the transfer or exchange of any Bond. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and Payment dates. 11. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest on any Bond shall be paid on each interest payment date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Regis- trar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such interest payment date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than 10 days prior to the Special Record Date. - 9 - 8/7 13. The City and the Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12 above) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. The Bonds when so prepared and executed shall be delivered bg the City Treasurer to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see the proper application thereof. 15. There is hereby created a special fund to be designated "General Obligation Improvement Bonds of 1986 Fund".(the "Fund") to be held and ad- ministered by the City Treasurer separate and apart from all other funds of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds herein authorized and the interest thereon have been fully paid. There shall be maintained in the Fund two separate accounts to be designated the "Construction Account" and the "Debt Service Account", re- spectively. The proceeds of the sad~e of the Bonds herein authorized, less any accrued interest received thereon, and less any amount paid for the Bonds in excess of $3,202,965, and less capitalized interest in the amount of $441,949 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before August 1, 1987), plus any special assessments levied with respect to Improvements financed by the Bonds and collected prior to completion of the Improvements and payment of the costs thereof, shall be credited to the Construction Account, from which there shall be paid all costs and expenses of making the Improvements listed in paragraph 16, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as other- wise provided by law; provided that the Bond proceeds may also be used to the extent necessary to pay interest on the Bonds dueprior to the anticipated date of commencement of the collection of taxes or special assessments herein levied or covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Construction Ac- count, the balance (other than any special assessments) may be transferred by the Council to the fund of any other improvement instituted pursuant to Minne- sota Statutes, Chapter 429; and provided further that any special assessments credited to the Construction Account are hereby pledged and shall be used only to pay principal and interest due on the Bonds. There is hereby pledged and there shall be credited to the Debt Service Account (a) all collections of special assessments herein covenanted to be levied and either initially credited to the Construction Account and required to pay any principal and interest due on the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $3,202,965; (d) capitalized interest in the amount of $441,949 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before August 1, 1987); (e) any collections of all collections of all taxes which may hereafter be _ levied in the event that the special assessments herein pledged to the payment of the principal and interest on the Bonds are insufficient therefore; (f) all funds remaining in the Construction Account after completion of the Improvements - 10 - 8/7 and payment of the costs thereof, not so transferred to the account of another improvement; and (g) all investment earnings on funds held in the Debt Service Account. The Debt Service Account herein created shall be used solely to pay the principal and interest and any premiums for redemp- ti on of the Bonds issued hereunder and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on suchinvestments after taking into account any ap- plicable"temporary periods" made available under the federal arbitrage regulations. In addition, money in the Account shall not be vested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 103(h) of the Internal Revenue Code of 1954, as amended. 16. It is hereby determined that no less than 100 of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota - Statutes, Section 475.58, Subdivision 1(3) shall be paid by special assess- ments to be levied against every assessable lot, piece and parcel of land benefited by the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one year after ordering each Improvement finances hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts and will do and perform as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that anysuch assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the 'making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assess- ments a valid and binding lien upon such property. The special assessments have not heretofore been authorized, and accordingly, for purposes of Minne- sota Statutes, Section 475.55, Subdivision 3, the special assessments are hereby authorized, except for Improvement Projects 83-07, 84-04, 85-04, and 85-07 which were heretofore authorized on July 14, 1986, July 8, 1985, July 14, 1986 and July 14, 1986, respectively, all at the rate of ten percent (10.00 0 per annum. Subject to such adjustments as are required by condi- tions in existence at the time the assessments are levied, the assessments are hereby authorized and it is hereby determined that~:the assessments shall be payable in equal, consecutive, annual installments, with general taxes for the years shown below and with interest on the declining balance of all such _ assessments at a rate per annum not greater than the maximum permitted by law (which maximum rate is hereby assumed to be 10.0 0 and not less than 9.0~ per annum: - 11 - g~7 Improvement Designation Amount Levy Years 81-20 McKnight Road (Highway 36 to Conway) 83-01 Frost Avenue (Adele to Birmingham) 83-07 Beaver Creek Storm Sewer 84-04 McClelland Street Water Main - 85-04 Ripley Avenue Water Main 85-07 Crestview Drive and Hudson Place Water Main 85-17 Southlawn - Beam to D 86-03 Water Service District #6 Improvements (Water Tower) 86-04 County Road C - W. Highway 61 Water Main At the time the assessments are in fact levied the City Council shall, based on the ten current estimated collections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 17. The special assessments are such that if collected in full they, to- gether with estimated collections of other revenues herein pledged for the pay- ment of the Bonds (other than cash on hand), will produce at least five percent in excess of the amount needed to meet when due the principal and interest pay- menu on the Bonds, except for interest payable hereunder from cash on hand on the date of Bond closing and pledged for such purpose. For the prompt and full payment of the principal and interest on the Bonds, and the same respectively become due, the full faith, credit and taxing powers of the City shall be and. are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a suf- ficient balance is available therein. 18. The Clerk i5 hereby directed to file a certified .copy of this resolution with the County Auditor of Ramsey County, Minnesota, together with such other in- formation as he shall require, and to obtain from the Auditor his certificate that the Bonds have been entered in the Auditor's Bond Register. 19. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser of the Bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City relating to the Bonds 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 Bonds as 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 affi- davits, including any heretofore furnished, shall be deemed representations of - 12 - g/7 the City as to the facts recited therein. 20. On the date this resolution is adopted, both the United States House of Representatives (the "House") and the United States Senate (the "Senate") have passed different versions of H.R. 3838 (to be cited as "H.R. 3838"L. The House version of H.R. 3838 proposes new rules applicable to bonds exempt from federal income taxation, to be made retroactively ef- fective for all bonds issued on or after January 1, 1986_ On March 14, 1986, a joint statement was made by the ranking majority and minority members of the House, Ways and Means Committee, the Senate Finance Committee and Secretary of the Treasury, James A. Baker 22I concerning certain provisions relating to the effective date of selective provisions of the House version of H. R. 3838 as it relates to certain essential function bonds. .The joint statement stated the five individuals are endorsing a selective postponement of the effective date of certain provisions and restrictions of H. R. 3838 to September 1, 1986, or until the enactment date of tax reform legislation, whichever occurs sooner. The applicable provisions of the Senate version of H.R. 3838 are not effective until date of enactment. Based on the joint statement and the delayed effec- tive dateof the Senate version of H.R. 3838, the City will not comply with _ the provisions of H.R. 3838 for which the effective date has been or (under the jointstatement) is to be postponed. However, because the joint state- . ment does not postpone the effective date of the provisions of the House version of H. R. 3838 relating to the calculation of yield based on the issue price, the City shall comply with this provision of the House version of H.R. 3838 in the form adopted on December 17, 1985, unless in the opinion of Bond Counsel, such compliance is not necessary to maintain the tax-exempt status of the Bonds. In addition, to the extent that H.R. 3838 is enacted in a form different from either the House or Senate version of H. R. 3838 and im- poses any requirements retroactively effective to the time the Bonds are issued, the City shall use its best efforts to meet such requirements, provided that in meeting such requirements, the City will do so only to the extent consistent with , the purposes of this resolution, to the extent that there is a reasonable period of time in which to comply. 21. In order to qualify the Bonds as "qualified project bonds" within the meaning of Section 802(e)(3) of the House Version of H.R. 3838, the City hereby makes the following factual statements and representations: _ (a) the City is apolitical subdivision and was in existence on October 23, 1985; (b) the reasonably anticipated amount of qualified tax-exempt obligations which will be issued by the City during Calendar Year 1986 will not exceed $10,000,000; (c) the Bonds are being issued in Calendar Year 1986 and are not non- essential function bonds as defined in Section 141 of the House version of H. R. 3838'; and (d) the Bonds are issued to provide project financing and the Bonds, together with any other bonds issued for the Project do not exceed $3,000,000; therefore, the City hereby designates the Bonds as "qualified project bonds" for the purpose of qualifying the Bonds as "qualified tax exempt obligations" pursuant to Section 803(e)(3) of the House version of H. R. 3838. - 13 - 8/7 Seconded by Counc~lmember Joker, Ayes - all: 2. General Obligation Tax Increment Bonds a. Mr. Dan Hartman, Miller and Schroeder, presented the bids for the G.O. Tax Increment Bonds, b. Mr. Ernie Clark, Miller and Schroeder, also spoke on behalf of the proposal. c. Councilmember Anderson-introduced thefollowing resolution and moved its adoption: 86 - 8 - 144 RESOLUTION ACCEPTING BID ON SALE OF $2,490,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1986 PROVIDING FOR THEIR ISSUANCE WHEREAS: The City Council has heretofore determined that it is necessary and expedient to issue $2,490,000 General pbligation Tax Increment Bonds of 1986, pursuant to Minnesota Statutes, Chapters 273, 472A and 475 to finance certain capital and administration costs within Development District No. 1 (the "Dis- trict") (the '"Project") in the City as set forth in the development program and the tax increment financing plans as most recently amended by the City - Council on June 23, 1986 (the "Plans") for Economic Development District No. 1-l, Housing District No. 1-1 and Housing District No. 1-2 (the "Tax Increment Districts") created by the City within the District. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCILOF THE CITY OF MAPLEWOOD, MINNESOTA, as follows: 1. The bid of The First National Bank of St. Paul (the "Purchaser") to purchase $2,490,000 General Obligation Tax Increment Bonds of 1986 of the City (hereinafter referred to as "Bonds" or individually as "Bond"), in accordance with the notice of bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $2,452,650 plus interest accrued to settlement is hereby found, determined and declared to be the most favorable bid received and is hereby accepted, and the Bonds are hereby awarded to said bidder. The City Clerk is directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. 2. The Bonds shall be dated August 1, 1986, as the date of original issue and shall be issued forthwith'as fully registered bonds. -The Bonds shall be - numbered from R-1 upward in thedenomination of $5,000 each or in any integral multiple thereof. The Bonds shall mature on February 1 in the years and amounts as follows: - 14 - 8/7 1989 $185,000 1990 190,000 1991 200,000 1992 210,000 1993 220,000 1994 230,000 1995 240,000 1996 155,000 1997 165,000 1998 180,000 ~ 1999 195,000 2000 210,000 2001 110,000 3. The Bonds shall provide funds to finance the Project. Pursuant to the Plans, tax increments derived from the Tax Increment Districts have been pledged to the payment of the Bonds and any other tax increment bonds issued to complete, modify or expand the Project. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is esimtated to be at least equal to the amount of the Bonds herein authorized. Work on the Project shall proceed with due diligence to completion. 4. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year commencing August 1, 1987 at the respective rates per annum set forth opposite the maturity years as follows: Maturity Years Interest Rates 1989 5.40 1990 5.70 1991 6.00 1992 6.20 _ 1993 6.40 1994 6.60 1995 6.80 1996 7.00 1997 7.10 1998 7.25 1999 7.40 2000 7.50 2001 7.50 5. All Bonds of this issue maturing in tfieYears 1994 through 2001, both inclusive, shall be subject to redemption and prepayment at the option of the City on February 1, 1993 and on any interest payment date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remain- ing unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for pre- payment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in ac- cordance with law, and mailed notice of redemption shall be given to the paying agent and to each registered holder of the Bonds. - 15 - 8/7 To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption, shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, numbers so assigned to such Bonds, as many numbers as, at $5,00-0 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a deno- mination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in Dart, it shall be surrendered to the Bond Registrar (with, if the City or the Bond Registrar so requires, a written instrument of transfer in form satis- factory to t1~e City and the Bond Registrar duly executed by the holder thereof or his attorney duly authorized in writing) and the City shall execute and the Bond Registrar shall authenticate and deliver to the holder of such Bond, with- out service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or de- nominations, as requested by such holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal o£ the Bond so - surrendered. - 6. First Trust Company, Inc., in St. Paul, Minnesota, is appointed to act as bond registrar and transfer agent (the "Bond Registrar") and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holder) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution. 7. The Bonds to be issued hereunder, together with the- Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF MAPLEWOOD R- $ GENERAL OBLIGATION TAX INCREMENT BOND OF 1986 INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE CUSIP August 1, 1986 - - 16 - 8/7 REGISTERED OWNER: PRINCIPAL AMOUNT: - - - KNOW ALL PERSONS BY THESE PRESENTS that the City of Maplewood, Ramsey County, Diinnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date") commencing August 1, 1987 at the rate per annum specified above, (calculated on the basis of a 360-day year of twelve :30-day months) until the original sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, frgm the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the princi- pal office of First Trust Company, Inc., in St. Paul, Minnesota, a corporation duly organized and validly existing under the laws of the State of Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer, Interest on this Bond will be paid on each Inter- est Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the"Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bond- holders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bondare payable in lawful money o£ the United States of America. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things re- quired 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 Bond, have been done, have happened and have been performed, in regular and due form, times and manner as required by law, and this Bond, together with all other debts of the Issuer outstanding oh the date of original issue hereof and the date of its issuance and delivery to the original purchaser does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of. Maplewood, Ramsey County, Minnesota, by its City Council has caused this Bond to be executed in its behalf by the facsimile signatures of the Mayor and the City Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law. - 17 - 8/7 Date of Registration: Registrable By: First Trust Company, Inc. - Payable at: First Trust Company, Inc. BOND REGISTRAR'S CITY OF MAPLE[dOOD, CERTIFICATE OF RAMSEY COUNTY, MINNESOTA AUTHENTICATION This Bond is one of the Bonds /s/ Facsimile described in the within Mayor mentioned Resolution. /s/ Facsimile Clerk FIRST TRUST COMPANY, INC., Bond Registrar By Authorized Signature ON REVERSE OF BOND All Bonds of this issue maturing in theYears 1994-through 2001, both inclu- sive, are subject to redemption and prepayment at the option of the Issuer on February 1, 1993 and on any Interest Payment Date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to per- payment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for prepayment, .the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in accordance with law, and mailednotice of redemp- tion shall be given to the paying agent and to the Holders of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date, a dis- tinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the princi- pal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and the Bond Registrar duly executed by the Holder thereof or his attorney duly authorized in writing) and the Issuer shall execute and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series hav- ing the same statedmaturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. - - l8 - 8/7 This Bond is one of an issue in the total principal amount of $2,490,000 all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on August 7, 1986 (the "Resolution") for the purpose of providing money to finance certain capital and administration costs within Development District No. 1 and is payable primarily from tax increments to be derived from Economic Develop- ment District No. 1-1, Housing District No. 1-1 and Housing District No. 1-2, of the Issuer which have been pledged to the General Obligation Tax Increment Bonds (Development District No. 1) Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the issuer have been and are hereby ir- revocably pledged. The Bonds are issuable solely as fully registered Bonds in the denominations of $5,000 and integral multiples thereof and are exchangeable for fully registered Bonds of other denominations in equal aggregate principal amounts and in author- ized denominations at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. This Bond is transferable by the Holder in person or by his attorney duly .authorized in writing at the principal office of the Bond Registrar upon presen- tation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this transferee (but not registered in blank or to "bearer" or similar desig- nation), of an authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond. - The Issuer and the Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided on the reverse side hereof with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. - 19 - 8/7 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT - Custodian (Gust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and doesherebyirrevocable constitute and appoint attorney to transfer the Bond on the books kept for the regis- tration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every piarticular, without al- teration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company o~r by a brokerage firm having a membership in one of the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the in- formation concerning the transferee requested below is provided. Name and Address: (Include info~+mation for all joint owners if the Bond is held by joint account.) - 20 - 8/7 8. The City may elect to deliver, in lieu of printed definitive bonds, a single typewritten temporary bond in substantially the form set forth above. The t:e~orary bond shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and cancelled. The Bonds shall be executed on behalf of the City by the signatures of its Mayor anc Clerk and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed facsimile; provided further that both of such signatures may be printed facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signa- ture of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. 9. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless and until a Certificate of _ Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Regis- trar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is August 1, 1986. The executed Certificate of Authentication on each Bond shall be conclusive evi- dence that it has been authenticated and delivered under this resolution. 10. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in para- graph 9) and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the princi- pal office of the Bond Registrar. Whenever any Bonds are to surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the holder making the exchange is entitled to receive. - 21 - 8/7 All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. - Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satis- factory to the Bond Registrar, duly executed by the holder thereof or his attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax of other governmental charge payable in connection with the transfer or ex- change of any Bond. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. 11. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest on any Bond shall be paid on each interest payment date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the BondRegis- trar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such interest payment date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted in- terest. Notice of the Special Record Date shall be given by theBond Regis- trar to the Holders not less than 10 days prior to the Special Record Date. 13. The City and the Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving pay- - ment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12 above) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. The Bonds when so prepared and executed shall be delivered by the Treasurer to the Purchaser upon receipt of the purchase price, and the Pur- chaser shall not be obliged to see to the proper application thereof. 15. There is hereby created a special fund to be designated "General Obligation Tax Increment Bonds (Development District No. 1) Fund" (the "Fund") to be held and administered by the Treasurer separate and apart from all other funds of the City. The Fund shall be maintained in the manner herein speci- fied until all of the Bonds herein authorized and made payable from the Fund and any other general obligation tax increment bonds hereafter issued to complete - 22 - 8/7 the Project, including any modifications or additions thereto, and made pay- able from the Fund and the interest thereon have been fully paid and the City has been fully reimbursed from the tax increments for all of the principal and interest of such bondspaid.by the City from .taxes levied on property in the City other than the Project area. There shall be maintained in the Fund two separate accounts to be designated the "Capital Account" and the "Debt Service Account", respectively. The proceeds of the sgle of the Bonds herein author- ized, less any accrued interest received thereon, and less any amount paid for the Bonds in excess of $2,442,690, and less capitalized interest in the amount of $236,512 (together with interest earnings thereon and subject to such other _ adjustments as are appropriate to provide sufficient funds to nay interest due on the Bonds on or before August 1, 1987), shall be credited to the Capital Account from which there shall be paid all costs and expenses of the Project, including the cost of any purchase and construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minne- sota Statutes, Section 475.65; and the moneys in said account shall be used for. no other purpose except as otherwise provided by law; provided that the Bond proceeds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of tax increments. There is hereby pledged and there shall be credited to the Debt Service Account (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $2,442,690; (c) capitalized inter- est in the amount of $236,512 (togehter with interest earnings thereon and sub- ject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before August 1, 1987); (d) tax incre- ments derived from the Tax Increment Districts in an amount which together with other revenues herein pledged to the payment thereof are sufficient to pay the principal and interest to become due on the Bonds; (e) any collections of all taxes which may hereafter be levied in the event that the tax increments and other revenues herein pledged to the payment of the principal and interest on the Bonds are insufficient therefore; (f) all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof; and (g) all investment earnings on funds held in the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds issued hereunder and any other general obligation tax increment bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield re- strictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" made available under the federal arbitrage regulations. In addition, money in the Account shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 103(h) of the Internal Revenue Code of 1954, as amended. 16. The County Auditor of Ramsey County has certified that the original assessed values (as defined in Minnesota Statutes, Section 273.73, Subdivison 7) of property in Economic Development District No. 1-l, Housing District No. 1-1 and Housing District No. 1-2, respectively, as of January 2, 1986 are - 23 - 8/7 $278,700, $3,160 and $37,440, respectively. The County Auditor shall determine in each year if the then current assessed values of property in the Tax Increment Districts exceeds the original assessed values, and shall calculate, in the manner provided in Dinnesota Statutes, Section 273.76, Subdivision 3, the captured assessed values (as defined therein) attributable to the Tax Increment Districts. The City has determined-to retain 100 of the captured assessed values for purposes of tax increment financing. The County Auditor shall in each such year, compute the mill rates to be extended against the captured assessed values in the manner provided in Minnesota Statutes, Section 273.76, Subdivision 3, and the taxes generated thereby shall constitute the tax increments for the year in which it is received. The County Treasurer will remit to theCity the _ - tax increments so received until the cost of the Project, including prin- . cipal and the interest on the Bonds, has been paid and the City has been fully reimbursed for any principal and interest on the Bonds which have - been paid from any taxes levied. The City hereby pledges and appropriates - the tax increments to the Debt Service Account, which pledge and appropria- tion shall continue until all of the Bonds, and any additional bonds payable _ from the Debt Service Account, are paid or discharged. The City hereby ex- pressly reserves the right to use the tax increments to finance costs set forth in the Plans not financed hereby or to finance costs of other projects to be undertaken from time to time within the Development District in accor- dance with the Program and the Plans, as the same may be amended from time to time. 17. On or before October 10 of each year, the Clerk shall certify to the County Auditor of Ramsey County the amount of tax increments and any other - funds appropriated to and then held in the Debt Service Account and the esti- mated collections of tax increments to be received in the next succeeding year. In the event that it is anticipated that the aggregate of said sums will not be sufficient to pay the principal and interest on. the Bonds to be- come due in the first calendar year thereafter and the first six months of the - succeeding calendar year, the City Council shall pass a resolution requesting the County Auditor of Ramsey County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in the Debt Service Account and said estimated collections of tax increments to pay the principal and interest on the Bonds to become due during said period. _ 18. The tax increments are such that if collected in full they, together with estimated collections of other revenues herein pledged for the payment of the Bonds (other than cash on hand), will produce at least five percent in excess of the amount needed to meet when due the principal and interest pay- menu on the Bonds, except for interest payable hereunder from cash on hand on the date of Bond closing and pledged for such purpose. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. - 24 - 8/7 19. The Clerk is hereby directed to file a certified copy of this _ resolution with the County Auditor of Ramsey County, Minnesota, together with such other information as he shall require, and to obtain from the Auditor his certificate that the Bonds have been entered in the Auditor's Bond Register. 20. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser of the Bonds, and to the attorneys approving the legality of the issuance thereof, certified copies of all proceedings and records of the City relating to the Bonds 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 Bonds 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, inclu- ding any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 21. Notwithstanding any provision herein to the contrary, the City re- _ serves the right to terminate, reduce or apply to other lawful purpose the tax increments herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. 22. On the date this resolution is adopted, both the United States House of Representatives (the "House") and the United States Senate (the "Senate") have passed different versions of H.R. 3835 (to be cited as "H.R. 3838"). The House version of H.R. 3838 proposes new rules applicable to bonds exempt from federal income taxation, to be made retroactively effective for all bonds issued on or after January 1, 1986. On March 14, 1986, a joint statement was made by the ranking majority and minority members of the House, Ways and Means Committee, the Senate Finance Committee and Secretary of the Tre asury ,James A. Baker III concerning certain provisions relating to the effective date of selec- tive provisions of the House version of H.R. 3838 as it relates to certain es- sential function bond..:. The joint statement stated the five individuals are endorsing a selective postponement of the effective date of certain provisions and restrictions of H.R. 3838 to September 1, 1986, or until the enactment date of tax reform legislation, whichever occurs sooner. The applicable pro- visions of the Senate version of H.R. 3838 are not effective until date of enactment. Based on the joint statement and the delayed effective date of the Senate version of H. R. 3838, the City will not comply with the provisions o£ H. R. 3838 for which the effective date has been or (under the joint statement) is to be postponed. However, because the joint statement does not postpone the effective date of the provisions of the House version of H .R. 3838 relating to the calculation c3' yield based on the issue price, the City shall comply with this provision of the klouse Version of H.R. 3838 in the form adopted on December 17, 1985, unless in the opinion of Bond counsel, such compliance is not necessary to maintain the tax-exempt status of the Bonds. In addition, to the extent that H.R. 3838 is enacted in a form different from either the House or Senate version of H.R.3838 and imposes any requirements retroactively effective to the time the Bonds are issued, the City shall use its best efforts to meet such requirements, provided that in meeting such requirements, the City will do so only to the ex- tent consistent with the purposes of this resolution, to the extent that there is a reasonable period of time in which to comply. 23. In order to qualify the Bonds as "qualified project bonds" within the meaning of Section 802(e)(3) of the House version of H. R. 3838, the City hereby - 25 - 8/7 makes the following factual statements and representations: (a) The City is a political subdivision and was in existence on October 23, 1985; (b) The reasonably anticipated amount of qualified tax-exempt obligations which will be issued by the City during Calendar Year 1986 will not exceed $10,000,000; (c) The Bonds are being issued in Calendar Year 1986 and are not nonessential function bonds as defined in Section 141 of the House version of HR. 3838; and (d) The Bonds are issued to provide project financing and the Bonds, together with any other bonds issued for the Project do not exceed $3,000,000. therefore, the City hereby designates the Bonds as "qualified project bonds" for the purpose of qualifying the Bonds as "qualified tax exempt obligations" pursuant to Section 803(e)(3) of the House version of H.R. 3838. Seconded by Councilmember Wasiluk. Ayes - all. H. UNFINISHED BUSINESS None. I. NEW BUSINESS 1. Data Processing Needs Report a. Ms. Ann Carroll, Carroll, Franck and Associates, presentedthe final Needs Assessment report concerning computer use. Mayor Greavu arrived at the meeting at 5:21 P.M. b. Councilmember Bastian moved to accept the report and instructed Staff to proceed to the next phase andthatthere be more involvement by the Council. Seconded by Mayor Greavu. Ayes - all. J. VISITOR PRESENTATION None. K. COUNCIL PRESENTATION ~ - 1. City Hall a. Councilmember Anderson requests Council, Staff, and the builders of the new City Hall meet and tour the building. b. A meeting was established for Wesnesday, August 13, 1986, at 6:00 P.M. at the new City Hall. 2. Hillcrest Development Letter - 26 - 8/7 _ a. Councilmember Bastian had questions regarding the letter from Hillcrest Development. b. No action taken. c, Councilmember Bastian requested no action be taken on the Emergency Services Tower request. He also requested a detailed plan showing the offices in the new City Hall and who was assigned the spaces, 3. City Hall Sign a. Councilme*sGners Wasiluk and Anderson commented on the new sign CITY HALL POLICE. They questioned if a more appropriate wording could be Found, L. ADMINISTRATIVE PRESENTATIONS None " M. ADJOURNMENT 5:51 P.M. City Clerk - 27 - 8/7