HomeMy WebLinkAbout09-27-1999 MINUTES MAPLEWOOD CITY COUNCIL
7:00 P.M., Monday, September 27, 1999
Council Chambers, Municipal Building
Meeting No. 99-22
A. CALL TO ORDER:
A regular meeting of the City Council of Maplewood, Minnesota was held in the Council Chambers, Municipal
Building, and was called to order at 7:00 P.M. by Mayor Rossbach.
B. PLEDGE OF ALLEGIANCE:
C. ROLL CALL:
George Rossbach, Mayor Present
Sherry Allenspach, Councilmember Present
Dale H. Carlson, Councilmember Present
Kevin Kittridge, Councilmember Absent
Marvin C. Koppen, Councilmember Present
D. APPROVAL OF MINUTES:
Councilmember Allenspach moved to approve the minutes of meeting 99-19 (Member 13.1999) as
presented/corrected.
Seconded by Councilmember Koppen Ayes -all
E. APPROVAL OF AGENDA:
Councilmember Carlson moved to approve the Agenda as amended.
N-2. Partnerships
N-3. Public Safety
Seconded by Councilmember Koppen Ayes -all
F. APPOINTMENTS/PRESENTATIONS:
NONE
G. CONSENT AGENDA:
9-27-99 1
Councilmember Carlson moved to approve the Consent Agenda as presented.
Seconded by Allenspach Ayes -all
1. Approval of Claims
ACCOUNTS
PAYABLE
$103,377.55 Checks #8055 thru #8070 dated 9-1 thru 9-8-99
$94,667.26 Checks #45688 thru #45800 dated 9-14-99
$10,521.41 Checks #8071 thru #8078 dated 9-9 thru 9-17-99
$409,900.83 Checks #45803 thru #45934 dated 9-21-99
$618,467.05 Total Accounts Payable
PAYROLL
$300,373.32 Payroll Checks and Direct Deposits dated 9-17-99
$23,620.21 Payroll Deduction check #74286 thru #74292 dated 9-17-99
$323,993.53 Total Payroll
$942,460.58 GRAND TOTAL
2. Budget Transfers for 1999 Wage Increases
Authorized a budget transfer from the General Fund contingency account totaling $59,560 to finance 1999
wage increases granted after the budget was prepared.
3. Transfer to Close Tax Increment Fund -Finance Department
Authorized a transfer of $314.02 from the Tax Increment Economic Development District #1-3 Fund to the
Debt Service Fund for the 1993 Tax Increment Bonds and to make the appropriate budget adjustments.
4. Accept Donation -Police Department
Authorized the Maplewood Police Department be allowed to accept $2,750 from the Rotary for their
participation in the D.A.R.E. Bike-a-thon fiundraiser.
5. Drug Forfeiture Funds Purchase -Police Department
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Authorized the purchase of protective helmets and semi-automatic shotguns at a cost of $18,500 with drug
forfeiture funds.
6. Loading Zone 1510-1512 & 1490-1492 East County Road B
Authorized staff to contact Ramsey County and request a loading zone be established in front of 1510-1512 and
1490-1492 East County Road B.
7. Cash Connection Charge
Authorized staff to refund a cash connection charge paid by the owner of 2325 Maryland Avenue in the amount
of $3,080 plus interest.
8. Gasoline Filling Station -Transfer of Ownership -Keller Lake Convenience
Approved a Gasoline Filling Station License for David and Joanne Knutson at Keller Lake Convenience, 2228
Highway 61.
9. Cigarette & Tobacco License -Keller Lake Convenience
Approved a Cigarette and Tobacco Sales License for David and Joanne Knutson at Keller Lake Convenience,
2228 Highway 61.
10. Surplus Equipment -Fire Department
Declared that 24 self-contained breathing apparatuses which are 15 years old be surplused at no value and
donated to the Somerset Fire Department in return for a waiver prepared by the city attorney.
11. Change Order -Park Maintenance Building
Approved a change order in the amount of $8,900 to replace the insulation in the park maintenance building and
the Finance Director utilize the contingency monies.
12. Sunset Ridge Lot Sale
Approved the final sale of Lot 1, Block 1 in the amount of $42,000 with the proceeds to be placed in the city's
PAC.
13. Robinhood Park Master Plan
Adopted the Robinhood Park Master Plan as developed by the neighborhood resident and approved by the
Parks and Recreation Commission.
14. Fred Abbott -Soccer Field Dedication
Adopted a resolution proclaiming Saturday October 9 as Fred Abbot Day and that a plaque be installed at
Hazelwood Park commemorating his soccer accomplishments.
H. PUBLIC HEARINGS:
1. 7:00 P.M. US West Monopole -Church of the Presentation of the Blessed Virgin Mary
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(1725 Kennard St. )
1. Conditional Use Permit
2. Design Approval
a. Mayor Rossbach convened the meeting for a public hearing.
b. Acting City Manager Ken Haider introduced the staff report.
a Community Development Director Coleman presented the specifics of the report.
d. Commissioner Milo Thompson presented the Planning Commission report.
e Boardmember Matt Ledvina presented the Community Design Review Board report.
f Mayor Rossbach opened the public hearing, calling for proponents of opponents. The
following person was heard:
Ken Neilson, representing US West
g. Mayor Rossbach closed the public hearing.
Councilmember Koppen moved/introduced the following Resolution and moved its adoption:
99-09-087
CONDITIONAL USE PERMIT RESOLUTION
WHEREAS, Mr. Kenneth Nielsen, representing US West, applied for a conditional use permit to install a
73-foot-tall telecommunications monopole and related equipment.
WHEREAS, this permit applies to the property at 1725 Kennard Street. The legal description is:
Subject to County Road A (Larpenteur Avenue), the South 656 feet of part of the SE 1/4 between
Prosperity Road and Kennard Street in Section 15, Township 29, Range 22 in Ramsey County, Minnesota.
(PIN 15-29-22-43-0016)
WHEREAS, the history of this conditional use permit is as follows:
1. On August 16, 1999, the planning commission recommended approval of this request.
2. The city council held a public hearing on September 27, 1999. City staff published a notice in the
paper and sent notices to the surrounding property owners as required by law. The council gave
everyone at the hearing a chance to speak and present written statements. The council also
considered reports and recommendations of the city staff and planning commission.
NOW, THEREFORE, BE IT RESOLVED that the city council approve the above-described conditional
use permit, because:
1. The use would be located, designed, maintained, constructed and operated to be in conformity with
the city's Comprehensive Plan and Code of Ordinances.
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2. The use would not change the existing or planned character of the surrounding area
3. The use would not depreciate property values.
4. The use would not involve any activity, process, materials, equipment or methods of operation that
would be dangerous, hazardous, detrimental, disturbing or cause a nuisance to any person or
property, because of excessive noise, glare, smoke, dust, odor, fumes, water or air pollution,
drainage, water run-off, vibration, general unsightliness, electrical interference or other nuisances.
5. The use would generate only minimal vehicular traffic on local streets and would not create traffic
congestion or unsafe access on existing or proposed streets.
6. The use would be served by adequate public facilities and services, including streets, police and fire
protection, drainage structures, water and sewer systems, schools and parks.
7. The use would not create excessive additional costs for public facilities or
Seconded by Councilmember Carlson Ayes -Councilmembers Koppen, Allenspach
& Carlson
Nays -Mayor Rossbach
Councilmember Koppen moved to approve the site and design plans date-stamped July 23. 1999, fora 73-foot-
tall telecommunications monopole and equipment in the parking lot at 1725 Kennard Street. Approval is based
on the findings required by code and subject to the applicant doing the following:
1. Repeat this review in two years if the city has not issued permits for this project.
2. If the landscaping is not installed by the completion of the tower, the city shall require the applicant
to provide cash escrow or an irrevocable letter of credit for the required work. The amount shall be
150% of the cost of the unfinished work.
3. All work shall follow the approved plans. The director of community development may approve
minor changes.
Seconded by Councilmember Carlson Ayes -Councilmembers Koppen, Allenspach
& Carlson
Nays -Mayor Rossbach
2. 7:25 P.M. Changes to Tax-Increment Plan for Home Replacement Program
a. Mayor Rossbach convened the meeting for a public hearing.
b. Acting City Manager Ken Haider introduced the staff report.
a Community Development Director Coleman presented the specifics of the report.
d. Mayor Rossbach opened the public hearing, calling for proponents of opponents. The
following person was heard:
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Mary Derseth, Briggs & Morgan
e. Mayor Rossbach closed the public hearing.
Councilmember Koppen moved/introduced the following Resolution and moved its adoption:
99-09-088
RESOLUTION OF THE CITY OF MAPLEWOOD RATIFYING NOTICE OF PUBLICATION ,
APPROVING THE MODIFICATION OF THE DEVELOPMENT PROGRAM FOR DEVELOPMENT
DISTRICT NO. 1, AND APPROVING THE MODIFICATION OF THE TAX INCREMENT
FINANCING PLANS FOR HOUSING DISTRICTS NOS. 1-4, 1-5 AND 1-6 THEREIN
WHEREAS, there is a proposal to modify the Development Program for Development District No. 1, and
modify the Tax Increment Financing Plans for Housing Districts Nos. 1-4, 1-5 and 1-6 therein under the
provision of Minnesota Statutes, Sections 469.174 to 469.179 (the "AcY~; and
WHEREAS, the Modification of the Development Program for Development District No. 1 (the "Program
Modification"), and the Modification of the Tax Increment Financing Plans for Housing Districts Nos. 1-4, 1-5
and 1-6 (the "Plan Modification") have been prepared (the Program Modification and the Plan Modification
being collectively, the "Modification"); and
WHEREAS, the City of Maplewood, Minnesota (the"City"), has performed all actions required by law to
be performed prior to the approval of the Modifications, including but not limited to, notification of Ramsey
County, Independent School Districts No. 611 and Intermediate School District No. 916, and the holding of a
public hearing upon published and mailed notice as required by law for the City; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Maplewood:
1) The City finds, determines and declares that with respect to the Modification:
A. The City is not modifying the boundaries of Development District No. 1.
B. The City is not modifying the boundaries or term of Housing Districts Nos. 1-4, 1-5 and 1-6, but
is, however, allowing for the use of tax increments therefrom within the boundaries of Development
District No. 1 for the acquisition of housing facilities, demolition or rehabilitation of housing
facilities and the installation of public improvements related to housing facilities and modifying the
budget in the Tax Increment Financing Plans therefor.
C. The City reaffirms the findings previously made with respect to Housing Districts Nos. 1-4, 1-5
and 1-6.
2) The Plan Modification conform to the general plan for the development of the City as a whole.
3) The Plan Modification conform in all respects to the requirements of the Act and will help fulfill a need
to develop an area of the State which is already built up to provide employment opportunities to improve
the tax base and to improve the general economy of the State and thereby serves a public purpose and will
afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development
or redevelopment of the project only that public assistance necessary to make the private developments
financially feasible.
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4) The Modification are hereby approved.
5) The City Clerk is authorized and directed to file a copy of the Plan Modification with the Commissioner
of Revenue.
6) All prior actions taken by the staff of the City in causing the notice of public hearing which is attached
to this resolution as Exhibit A to be published as required by the Act is hereby ratified, affirmed and
approved.
EXHIBIT A
CITY OF MAPLEWOOD
COUNTY OF RAMSEY
STATE OF MINNESOTA
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of Maplewood (the"City"),
County of Ramsey, State of Minnesota, will hold a public hearing on Monday September 27, 1999 at 7:00 p.m.,
at the City Hall, 1830 East County Road B, in Maplewood, Minnesota, relating to the modification of the
Development Program for Development District No. 1, and the modification of the Tax Increment Financing
Plans for Housing Districts Nos 1-4, 1-5, and 1-6 within Development Districts No. 1 of the City , pursuant to
Minnesota Statutes, Sections 469.174 through 469.179, inclusive as amended. Copies of the Modification of
the Development Program for Development District No. 1 and the Modification of the Tax Increment Financing
Plans for Housing Districts Nos. 1-4, 1-5 and 1-6 as proposed to be adopted will be on file and available for
public inspection at the office of the City Clerk at City Hall. Development District No. 1 encompasses the
entire corporate boundaries of the City of Maplewood.
A map of the Housing Districts Nos. 1-4, 1-5 and 1-6 is set forth below:
(Insert Map of Housing Districts)
All interested persons may appear at the hearing and present their view orally or in writing.
Publish September 15th
Seconded by Councilmember Carlson Ayes -all
I. AWARD OF BIDS
1. Harvester Avenue /Sterling Street Improvements -Project 97-16, Professional Landscape Services
a. Acting City Manager Ken Haider introduced the staff report and presented the specifics of the
report.
Councilmember Carlson moved to authorize this expenditure for professional landscaping services on the
Harvester Avenue and Sterling Street Improvement, City Project 97-16.
Seconded by Councilmember Koppen Ayes -all
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2. Bid Award on 1999 Bonds
a. Acting City Manager Ken Haider introduced the staff report.
b. Finance Director Faust presented the specifics of the report.
c. Mayor Rossbach opened the public hearing, calling for proponents or opponents. The
following person was heard:
Dan Hartman, Springsted Inc.
Councilmember Carlson moved to adopt the following resolutions awarding the bid for the 1999 first issue
Bonds to Porey Summit and the second issue bonds to Piper Jaffery.
99-09-89
RESOLUTION ACCEPTING BID ON THE COMPETATIVE NEGOTIATED SALE OF $940,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A, PROVIDING FOR THEIR
ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF
WHEREAS, the City Council of the City of Maplewood, Minnesota (the "City"), has heretofore
determined and declared that it is necessary and expedient to issue $940,000 General Obligation Improvement
Bonds, Series 1999A (the "Bonds") of the City, pursuant to Minnesota Statutes, Chapters 429 and 475, to
finance the construction of various improvement projects within the City (the "Improvements"); and
WHEREAS, the Improvements and all their components have been ordered prior to the date hereof, after a
hearing thereon for which notice was given describing the Improvements or all their components by general
nature, estimated cost, and area to be assessed; and
WHEREAS, it is in the best interests of the City that the Bonds be issued in book-entry form as hereinafter
provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Maplewood, Minnesota, as
follows:
1. Acceptance of Bid. The bid of Dougherty Summitt Securities LLC (the "Purchaser"), to purchase the
Bonds of the City (or individually, a "Bond"), in accordance with the Terms of Proposal, at the rates of interest
hereinafter set forth, and to pay therefor the sum of $ 928,814.00, 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 to the unsuccessful bidders their good faith checks and drafts.
2. Bond Terms.
(A) Title: Original Issue Date: Denominations: Maturities. The Bonds shall be titled "General Obligation
Improvement Bonds, Series 1999A", shall be dated October 1, 1999, as the date of original issue and shall be
issued forthwith on or after such date 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 of a single maturity (the "Authorized
Denominations"). The Bonds shall mature on February 1 in the years and amounts as follows:
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Year Amount Year Amount
2002-2006 $65,000 2010-2011 $65,000
2007-2008 70,000 2012-2014 70,000
2009 60,000 2015 75,000
All dates are inclusive.
(B) Book Entry Only System. The Depository Trust Company, a limited purpose trust company
organized under the laws of the State of New York or any of its successors or its successors to its functions
hereunder (the "Depository") will act as securities depository for the Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the
"Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for
each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5
and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry
Only Period to the outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register
maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee
(it or any nominee of the existing or a successor Depository, the "Nominee").
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the
Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant
holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial
Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond
Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records
of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds,
or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any
notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any
Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with
respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other
action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of
securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an
omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants
to whose accounts the Bonds are credited on the record date identified in a listing attached to the
omnibus proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute
owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on
the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds,
for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as
paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to
the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be
valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of
and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the
Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to
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the transfer provisions in paragraph 10 hereof, references to the Nominee hereunder shall refer to such
new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to
the principal of and premium, if any, and interest on such Bond and all notices with respect to such
Bond shall be made and given, respectively, by the Bond Registrar or City, as the case maybe, to the
Depository as provided in the Letter of Representations to the Depository required by the Depository as
a condition to its acting asbook-entry Depository for the Bonds (said Letter of Representations, together
with any replacement thereof or amendment or substitute thereto, including any standard procedures or
policies referenced therein or applicable thereto respecting the procedures and other matters relating to
the Depository's role asbook-entry Depository for the Bonds, collectively hereinafter referred to as the
"Letter of Representations").
(vii) All transfers of beneficial ownership interests in each Bond issued in book-entry form shall
be limited in principal amount to Authorized Denominations and shall be effected by procedures by the
Depository with the Participants for recording and transferring the ownership of beneficial interests in
such Bonds.
(viii) In connection with any notice or other communication to be provided to the Holders
pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to
betaken by Holders, the Depository shall consider the date of receipt of notice requesting such consent
or other action as the record date for such consent or other action; provided, that the City or the Bond
Registrar may establish a special record date for such consent or other action. The City or the Bond
Registrar shall, to the extent possible, give the Depository notice of such special record date not less
than 15 calendar days in advance of such special record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution
and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to
time to comply with the requirements of the Letter of Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of surrendering the
Bonds for a Bond of a lesser denomination as provided in paragraph 5 hereof, make a notation of the
reduction in principal amount on the panel provided on the Bond stating the amount so redeemed.
(C) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and
termination of the book-entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with respect to the
Bonds at any time by giving written notice to the City and discharging its responsibilities with respect
thereto under applicable law. The City may terminate the services of the Depository with respect to the
Bond if it determines that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the Depository is not in the
best interests of the City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the preceding paragraph,
and if no substitute securities depository is willing to undertake the functions of the Depository
hereunder can be found which, in the opinion of the City, is willing and able to assume such functions
upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or
the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the
Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the
Nominee, but maybe registered in whatever name or names the Holder of the Bonds shall designate at
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that time, in accordance with paragraph 11 hereof. To the extent that the Beneficial Owners are
designated as the transferee by the Holders, in accordance with paragraph 10 hereof, the Bonds will be
delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10 hereof.
(D) Letter of Representations. The provisions in the Letter of Representations are incorporated herein
by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with
the other provisions of this resolution, the provisions in the Letter of Representations shall control.
3. Purpose. The Bonds shall provide funds to finance the Improvements. 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. Work on the Improvements shall proceed with due diligence to
completion. The City covenants that it shall do all things and perform all acts required of it to assure that work
on the Improvements proceeds with due diligence to completion and that any and all permits and studies
required under law for the Improvements are obtained.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each
year (each, an "Interest Payment Date"), commencing August 1, 2000, calculated on the basis of a 360-day year
of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
2002 4.20 2009 4.90
2003 4.30 2010 5.00
2004 4.40 2011 5.10
2005 4.50 2012 5.20
2006 4.60 2013 5.30
2007 4.70 2014 5.35
2008 4.80 2015 5.40
5. Redemption. All Bonds maturing in the years 2009 to 2015 both inclusive, shall be subject to
redemption and prepayment at the option of the City on February 1, 2008, and on any date thereafter at a price
of par plus accrued interest. Redemption maybe in whole or in part of the Bonds subject to prepayment. If
redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be
determined by the City; 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. Bonds or portions thereof called
for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from
and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each
affected 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, from the 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 Bonds 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 Bond Registrar so
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requires, a written instrument of transfer inform satisfactory to the City and Bond Registrar duly executed by
the holder thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if necessary)
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
exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. First Star Bank, N.A. , in St. Paul, Minnesota, is appointed to act as bond registrar
and transfer agent with respect to the Bonds (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
holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution.
7. Form of Bond. The Bonds, 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:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF MAPLEWOOD
R- $
GENERAL OBLIGATION IMPROVEMENT
BOND, SERIES 1999A
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
OCTOBER 1, 1999
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
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, 2000, 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 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, 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 principal office of , in
(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 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 neat 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. [So long as this Bond is
registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter
described, and as those terms are deFmed therein, payment of principal of, premium, if any, and interest
on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations,
as defined in the Resolution, and surrender of this Bond shall not be required for payment of the
redemption price upon a partial redemption of this Bond. Until termination of the book-entry only
system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its
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Nominee.]
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 that 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 on its behalf by the facsimile signatures of its Mayor and its Clerk,
the corporate seal of the Issuer having been intentionally omitted as permitted by law.
Include only until termination of the book-entry only system under paragraph 2
hereof.
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Date of Registration: Registrable by:
Payable at:
BOND REGISTRAR'S CITY OF MAPLEWOOD,
CERTIFICATE OF RAMSEY COUNTY,
AUTHENTICATION MINNESOTA
This Bond is one of the
Bonds described in the /s/ Facsimile
Resolution mentioned Mayor
within.
/s/Facsimile
Clerk
Bond Registrar
By
Authorized Signature
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ON REVERSE OF BOND
Redemption. All Bonds of this issue (the "Bonds") maturing in the years 2009 to 2015, both inclusive,
are subject to redemption and prepayment at the option of the Issuer on February 1, 2008, and on any date
thereafter at a price of par plus accrued interest. Redemption maybe in whole or in part of the Bonds subject to
prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be
redeemed shall be determined by the Issuer; 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. Bonds or
portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon
shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected Holder of the Bonds.
Selection of Bonds for Redemption; Partial Redemption. 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
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 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 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 Bond Registrar so
requires, a written instrument of transfer inform satisfactory to the Issuer and Bond Registrar duly executed by
the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if
necessary) 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 exchange for the unredeemed portion of the principal of the Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of
$940,000, 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 of the Issuer on
September 27, 1999 (the "Resolution"), for the purpose of providing money to finance various improvement
projects within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Improvement
Bonds, Series 1999A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to
provide moneys for the prompt and full payment of its principal, premium, if any, 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.
Denominations; Exchange; Resolution. The Bonds are issuable solely as fully registered bonds in
Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of
other Authorized Denominations in equal aggregate principal amounts 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.
Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized
in writing at the principal office of the Bond Registrar upon presentation 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
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Registrar shall authenticate and deliver, in exchange 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 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.
Fees upon Transfer or Loss. 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 and any
legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and 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.
Authentication. 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.
Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-
exemptobligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
ABBREVIATIONS
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
UTMA - as custodian for
(Gust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
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ASSIGNMENT
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, without
alteration or any change whatever.
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 or any other "Eligible Guarantor Institution" as defined in 17
CFR 240.17 Ad-15(a)(2).
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.)
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[Use only for Bonds when they are
Registered in Book Entry Only System]
PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
AUTHORIZED SIGNATURE
DATE AMOUNT OF HOLDER
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8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of the Purchaser,
typewritten) and shall be executed on behalf of the City by the signatures of its Mayor and Clerk and be sealed
with the seal of the City; provided, however, that the seal of the City may be a printed (or, at the request of the
Purchaser, photocopied) facsimile; and provided further that both of such signatures may be printed (or, at the
request of the Purchaser, photocopied) facsimiles and the corporate seal maybe omitted on the Bonds as
permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds
maybe 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 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. The City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten temporary
bonds in substantially the form set forth above, with such changes as may be necessary to reflect more than one
maturity in a single temporary bond. Such temporary bonds maybe executed with photocopied facsimile
signatures of the Mayor and Clerk. Such temporary bonds shall, upon the printing of the definitive bonds and
the execution thereof, be exchanged therefor and canceled.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or
benefit under this resolution unless 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 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 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 October 1, 1999. The
Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Registration: Transfer: Exchange. 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
paragraph 9) of, 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 maybe 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 principal office of the Bond Registrar. Whenever any Bonds are so 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.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly
canceled 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.
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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, her or its 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 and any legal or unusual costs
regarding transfers and lost Bonds.
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. The Clerk is hereby authorized to negotiate and execute the terms of said
agreement.
11. Rights Upon Transfer or Exchange. 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 Payment; Record Date. 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 Registrar and at the address appearing thereon at the close of
business on the fifteenth (15th) 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 ten (10) days prior to the Special Record Date.
13. Treatment of Registered Owner. The City and 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. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by
the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged
to see to the proper application thereof.
15. Funds and Accounts. There has heretofore been created a capital projects fund designated the
"Public Improvement Projects Fund" held and administered by the Finance Director separate and apart from all
other funds of the City. The Public Improvement Projects Fund shall continue to be maintained in the manner
heretofore specified. In the Public Improvement Projects Fund there shall be created and maintained separate
construction accounts (the "Construction Accounts") for each improvement financed by this bond issue. To the
Construo-tion Accounts there shall be credited the proceeds of the sale of the Bonds, less accrued interest
received thereon, and less any amount paid for the Bonds in excess of $928,500, plus any special assessments
levied with respect to the Improvements and collected prior to completion of the Improvements and payment of
the costs thereof. From the Construction Accounts 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 otherwise provided by law; provided that
the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the
io~asoa.i 21
9-27-99
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 Accounts, the balance (other than any special assessments) maybe
transferred by the Council to the accounts of any other improvement instituted pursuant to Minnesota Statutes,
Chapter 429, and provided further that any special assessments credited to the Construction Accounts shall only
be applied towards payment of the costs of the Improvements upon adoption of a resolution by the City Council
determining that the application of the special assessments for such purpose will not cause the City to no longer
be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1.
There is hereby created a debt service fund to be designated the General Obligation Improvement
Bonds, Series 1999A Fund (the "Debt Service Fund") to be administered and maintained by the Finance
Director as a bookkeeping account separate and apart from all other funds maintained in the official financial
records of the City. The Debt Service Fund shall be maintained in the manner herein specified until all of the
Bonds and the interest thereon have been fully paid. There are hereby irrevocably appropriated and pledged to,
and there shall be credited to, the Debt Service Fund: (a) all collections of special assessments herein
covenanted to be levied with respect to the Improvements and either initially credited to the Construction
Accounts and not already spent as permitted above 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 $928,500; (d)
any collections of all taxes herein or hereafter levied for the payment of the principal and interest on the Bonds;
(e) all funds remaining in the Construction Accounts after completion of the Improvements and payment of the
costs thereof, not so transferred to the account of another improvement (f) all investment earnings on funds
held in the Debt Service Fund; and (g) any and all other moneys which are properly available and are
appropriated by the governing body of the City to the Debt Service Fund. The Debt Service Fund shall be used
solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general
obligation bonds of the City hereafter issued by the City and made payable from said account as provided by
law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding
investments or to replace funds which were used directly or indirectly to acquire higher yielding investments,
except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the
Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent (5%)
of the proceeds of the Bonds or $100,000. To this effect any proceeds of the Bonds and any sums from time to
time held in the Construction Accounts or Debt Service Fund (or any other City account which will be used to
pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under
then-applicable federal arbitrage regulations maybe invested without regard to yield shall not be invested at a
yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments
after taking into account any applicable "temporary periods" or "minor portion" made available under the
federal arbitrage regulations. Money in the Fund 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 149(b) of
the Internal Revenue Code of 1986, as amended (the "Code").
16. Assessments. It is hereby determined that no less than twenty percent (20%) 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 assessments to be levied against every assessable lot piece and parcel
of land benefitted by any of the Improvements. The City hereby covenants and agrees that it will let all
construction contracts not heretofore let within one (1) year after ordering each Improvement financed
hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of
construction contracts. The City hereby further covenants and agrees that it will do and perform as soon as they
maybe done all acts and things necessary for the final and valid levy of such special assessments, and in the
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event that any such 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 betaken by the City or the City
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 the City Council will forthwith do all further acts and take all
further proceedings as may be required by law to make the assessments a valid and binding lien upon such
property. The special assessments have heretofore been authorized in accordance with Minnesota Statutes,
Section 475.55, Subdivision 3. The assessments are payable in equal annual installments with interest on the
declining balance at the rates specified below. Subject to such adjustments as are required by conditions 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 and not less than the rates per annum specified below:
Improvement Collection
Designation Amount Levy Years Years Rates
(i) Project 98-10 (Harvester
Avenue Area Streets)
$362,514 1999-2013 2000-2014 5.90%
(ii) Project 98-12
(Pleasantview Neighborhood
Streets)
70.796 1999-2006 2000-2007 5.70
TOTAL $433.310
At the time the assessments are in fact levied the City Council shall, based on the then-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. Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the
Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which
shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for
the years and in the amounts as follows:
Year of Tax Year of Tax
Levj% Collection Amount
2000 2001 $ 49,090
2001 2002 58,683
2002 2003 57,678
2003 2004 56,605
2004 2005 55,465
2005 2006 59,505
2006 2007 57,986
2007 2008 54,734
2008 2009 58,323
2009 2010 56,336
2010 2011 59,532
2011 2012 57,136
2012 2013 54,666
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2013 2014 57,415
The tax levies are such that if collected in full they, together with estimated collections of special
assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent
(5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The
tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City
reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota
Statutes, Section 475.61, Subdivision 3.
18. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges,
covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent
permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on
any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the
payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by
depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the
date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of
redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to
any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this
purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale
and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein
required has been duly provided for, to such earlier redemption date.
19. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended
to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the
"Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions
thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have
paid prior to the Closing Date (a "Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(A) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the City (or
person designated to do so on behalf of the City) has made or will have made a written declaration of the City's
official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself
for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a
general and functional description of the property, project or program to which the Declaration relates and for
which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the
"Project"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the
purpose of financing the Project; provided, however, that no such Declaration shall necessarily have been made
with respect to: (i) "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to
include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in
the aggregate do not exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of
Reimbursement Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds.
Notwithstanding the foregoing, with respect to any Declaration made by the City between January 27, 1992 and
June 30, 1993, with respect to a Reimbursement Expenditure made prior to March 2, 1992, the City hereby
represents that there exists objective evidence, that at the time the Expenditure was paid the City expected to
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9-27-99
reimburse the cost thereof with the proceeds of a borrowing (taxable or tax-exempt) and that expectation was
reasonable.
(B) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any
of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations.
(C) The "reimbursement allocation" described in the Reimbursement Regulations for each
Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the
Bonds and in all events within the period ending on the date which is the later of three years after payment of
the Reimbursement Expenditure or one year after the date on which the Project to which the Reimbursement
Expenditure relates is first placed in service.
(D) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond
proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued,
shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph
19 upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such action will not impair
the tax-exempt status of the Bonds.
20. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The
City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the
Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of
1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described
to:
(A) Provide or cause to be provided to each nationally recognized municipal securities
information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any,
for the State of Minnesota, in each case as designated by the Commission in accordance with the Rule,
certain annual financial information and operating data in accordance with the Undertaking. The City
reserves the right to modify from time to time the terms of the Undertaking as provided therein.
(B) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the
Municipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of the occurrence of certain
material events with respect to the Bonds in accordance with the Undertaking.
(C) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the
MSRB and (ii) the SID, notice of a failure by the City to provide the annual financial information with
respect to the City described in the Undertaking.
(D) The City agrees that its covenants pursuant to the Rule set forth in this paragraph 20
and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be
enforceable on behalf of such Holders; provided that the right to enforce the provisions of these
covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the
covenants.
The Mayor and Clerk of the City, or any other officer of the City authorized to act in their place
with "Officers" are hereby authorized and directed to execute on behalf of the City the Undertaking in
io~asoa.i 2 5
9-27-99
substantially the form presented to the City Council subject to such modifications thereof or additions
thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the
Bonds, and (iii) acceptable to the Officers.
21. General Obligation Pledge. 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 and any other 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.
22. Certificate of Registration. 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 or she shall
require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's
Bond Register, and that the tax levy required by law has been made.
23. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and
furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, 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, including
any heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
24. Negative Covenant as to Use of Proceeds and Improvements. The City hereby covenants not to use
the proceeds of the Bonds or to use the Improvements, or to cause or permit them to be used, or to enter into
any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to
be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
25. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under
the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the
interest on the Bonds, including without limitation (1) requirements relating to temporary periods for
investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds, and (3) the
rebate of excess investment earnings to the United States if the Bonds (together with other obligations
reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small-issuer
exception amount of $5,000,000.
For purposes of qualifying for the exception to the federal arbitrage rebate requirements for
governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that (1)
the Bonds are issued by a governmental unit with general taxing powers, (2) no Bond is a private activity bond,
(3) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be used for local governmental
activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the
City), and (4) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by
the City (and all subordinate entities thereof, and all entities treated as one issuer with the City) during the
calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed
$5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code.
26. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified
tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the
io~asoa.i 2 6
9-27-99
following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section
265(b)(3) of the Code;
(d) the reasonably anticipated amount oftax-exempt obligations (other than private activity bonds,
treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City
(and all entities treated as one issuer with the City, and all subordinate entities whose obligations are
treated as issued by the City) during this calendar year 1999 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued by the City during this calendar year 1999 have
been designated for purposes of Section 265(b)(3) of the Code.
The City shall use its best efforts to comply with any federal procedural requirements which may apply in order
to effectuate the designation made by this paragraph.
27. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or
unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not
affect any of the remaining provisions of this resolution.
28. Headings. Headings in this resolution are included for convenience of reference only and are not a
part hereof, and shall not limit or define the meaning of any provision hereof.
99-09-90
RESOLUTION ACCEPTING BID ON THE COMPETATIVE NEGOTIATED SALE OF $692,296.80
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1999B (CAPITAL APPRECIATION
BONDS), PROVIDING FOR THEIR ISSUANCE, AND PLEDGING FOR THE SECURITY THEREOF
TAX INCREMENTS
WHEREAS, the City Council of the City of Maplewood, Minnesota (the "City"), has heretofore
created Development District No. 1 (the "Development District") pursuant to the provisions of
Minnesota Statutes, Sections 469.124 through 469.134, and has approved a development program (the
"Program") with respect to the Development District; and
WHEREAS, the Council has also approved separate tax increment financing plans, as most
recently amended on September 27, 1999 (collectively, the "Plan") and designated Housing Districts
Nos. 1-4, 1-5 and 1-6 housing districts within the Development District (collectively, the "Tax
Increment District") under the provisions of Minnesota Statutes, Sections 469.174 through 469.179; and
WHEREAS, pursuant to the provisions of the Program and Plan, funds are to be expended
within the Development District to provide money to finance certain capital and administration costs of
the Development District, as set forth in the Plan (the "Project"), particularly to finance a scattered site
housing project; and
io~asoa.i 2 7
9-27-99
WHEREAS, the City Council has heretofore determined and declared that it is necessary and
expedient to issue the Bonds of the City, pursuant to Minnesota Statutes, Chapters 469 and 475, to
finance the Project; and
WHEREAS, it is in the best interests of the City that the Bonds be issued in book-entry form as
hereinafter provided; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Maplewood, Minnesota,
as follows:
1. Acceptance of Bid. The bid of U. S. Bancorp Piper Jaffray Inc. (the "Purchaser"), to purchase
the Bonds of the City (or individually, a "Bond"), in accordance with the Terms of Proposal established
for the Bonds, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ 680,527.75,
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 Clerk is directed to retain the deposit of said
bidder and to forthwith return to the unsuccessful bidders their good faith checks or drafts.
2. Bond Terms.
(A) Title; Original Issue Date; Denominations; Maturities; Combining Maturities. The
Bonds shall be titled "General Obligation Tax Increment Bonds, Series 1999B (Capital Appreciation
Bonds)", shall be dated the date of settlement, as the date of original issue and shall be issued forthwith
on or after such date 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 of a single maturity (the "Authorized
Denominations").
The Bonds shall be issued as capital appreciation obligations which shall mature, without
option of prepayment, on February 1 in the years and in the accreted amounts (the "Accreted
Amounts") set forth in the following table, which table also sets forth, for each maturity, the original
principal amount thereof per $5,000 of Accreted Amount at maturity (which Accreted Amount at
maturity is also referred to herein as "accreted maturity amount"), the aggregate original principal
amount thereof, and the approximate yield to maturity applicable thereto, as follows:
Original
Total Principal
Accreted Total Amount per Approximate
Year Amount at Original $5,000 Yield to
Maturi Principal Accreted Maturi
Amount at
Maturi
2013 $380,000.00 $187,457.80 (See Accreted 5.40%
2014 150,000.00 69,672.00 Value Table 5.45
2015 150,000.00 65,536.50 attached 5.50
2016 150,000.00 61,101.00 hereto) 5.60
io~asoa.i 2 8
9-27-99
2017 150,000.00 57,817.50 5.60
2018 150,000.00 54,226.50 5.65
2019 150,000.00 51,288.00 5.65
2020 150,000.00 48,033.00 5.70
2021 130,000.00 39,353.60 5.70
2022 105,000.00 29,724.45 5.75
2023 105,000.00 28,086.45 5.75
For the purpose of complying with Minnesota Statutes, Section 475.54, Subdivision 1, the
maturity schedule for the Bonds has been combined with the maturity schedule for the City's $
1,065,000 GO Improvement Bonds, 1999A, dated September 1, 1998, as permitted by Minnesota
Statutes, Section 475.54, Subdivision 2.
(B) Book Entry Only,
sue. The Depository Trust Company, a limited purpose trust
company organized under the laws of the State of New York or any of its successors or its successors to
its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this
end:
a. The Bonds shall be initially issued and, so long as they remain in book entry
form only (the "Book Entry Only Period"), shall at all times be in the form of a
separate single fully registered Bond for each maturity of the Bonds; and for
purposes of complying with this requirement under paragraphs 5 and 10
Authorized Denominations for any Bond shall be deemed to be limited during the
Book Entry Only Period to the outstanding principal amount of that Bond.
b. Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) in the name of
CEDE & CO., as the nominee (it or any nominee of the existing or a successor
Depository, the "Nominee").
c. With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial
institution for which the Depository holds Bonds as securities depository (the
"Participant") or the person for which a Participant holds an interest in the Bonds
shown on the books and records of the Participant (the "Beneficial Owner").
Without limiting the immediately preceding sentence, neither the City, nor the
Bond Registrar, shall have any such responsibility or obligation with respect to
(A) the accuracy of the records of the Depository, the Nominee or any Participant
with respect to any ownership interest in the Bonds, or (B) the delivery to any
Participant, any Owner or any other person, other than the Depository, of any
notice with respect to the Bonds, including any notice of redemption, or (C) the
io~asoa.i 9-~99
payment to any Participant, any Beneficial Owner or any other person, other than
the Depository, of any amount with respect to the principal of or premium, if any,
or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Registered Holder of any Bonds (the "Holder"). For purposes
of securing the vote or consent of any Holder under this Resolution, the City may,
however, rely upon an omnibus proxy under which the Depository assigns its
consenting or voting rights to certain Participants to whose accounts the Bonds
are credited on the record date identified in a listing attached to the omnibus
proxy.
d. The City and the Bond Registrar may treat as and deem the Depository to be the
absolute owner of the Bonds for the purpose of payment of the principal of and
premium, if any, and interest on the Bonds, for the purpose of giving notices of
redemption and other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to betaken by Holders for the purpose of
registering transfers with respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall pay all principal of and
premium, if any, and interest on the Bonds only to the Holder or the Holders of
the Bonds as shown on the bond register, and all such payments shall be valid and
effective to fully satisfy and discharge the City's obligations with respect to the
principal of and premium, if any, and interest on the Bonds to the extent of the
sum or sums so paid.
e. Upon delivery by the Depository to the Bond Registrar of written notice to the
effect that the Depository has determined to substitute a new Nominee in place of
the existing Nominee, and subject to the transfer provisions in paragraph 10
hereof, references to the Nominee hereunder shall refer to such new Nominee.
f So long as any Bond is registered in the name of a Nominee, all payments with
respect to the principal of and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, by the
Bond Registrar or City, as the case maybe, to the Depository as provided in the
Letter of Representations to the Depository required by the Depository as a
condition to its acting asbook-entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or
substitute thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other matters relating
to the Depository's role asbook-entry Depository for the Bonds, collectively
hereinafter referred to as the "Letter of Representations").
g. All transfers of beneficial ownership interests in each Bond issued in book-entry
form shall be limited in principal amount to Authorized Denominations and shall
be effected by procedures by the Depository with the Participants for recording
io~asoa.i 9-~99
and transferring the ownership of beneficial interests in such Bonds.
h. In connection with any notice or other communication to be provided to the
Holders pursuant to this Resolution by the City or Bond Registrar with respect to
any consent or other action to betaken by Holders, the Depository shall consider
the date of receipt of notice requesting such consent or other action as the record
date for such consent or other action; provided, that the City or the Bond
Registrar may establish a special record date for such consent or other action.
The City or the Bond Registrar shall, to the extent possible, give the Depository
notice of such special record date not less than 15 calendar days in advance of
such special record date to the extent possible.
i. Any successor Bond Registrar in its written acceptance of its duties under this
Resolution and any paying agency/bond registrar agreement, shall agree to take
any actions necessary from time to time to comply with the requirements of the
Letter of Representations.
(C) Termination of Book-Entr~~
sy tem. Discontinuance of a particular Depository's services and
termination of the book-entry only system may be effected as follows:
(1) The Depository may determine to discontinue providing its services with respect
to the Bonds at any time by giving written notice to the City and discharging its
responsibilities with respect thereto under applicable law. The City may
terminate the services of the Depository with respect to the Bond if it determines
that the Depository is no longer able to carry out its functions as securities
depository or the continuation of the system of book-entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
(2) Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the
functions of the Depository hereunder can be found which, in the opinion of the
City, is willing and able to assume such functions upon reasonable or customary
terms, or if the City determines that it is in the best interests of the City or the
Beneficial Owners of the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but maybe registered
in whatever name or names the Holder of the Bonds shall designate at that time,
in accordance with paragraph 10 hereof. To the extent that the Beneficial Owners
are designated as the transferee by the Holders, in accordance with paragraph 10
hereof, the Bonds will be delivered to the Beneficial Owners.
(3) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph
10 hereof.
io~asoa.i 9-~A99
(D) Letter of Representations. The provisions in the Letter of Representations are incorporated herein
by referenced and made a part of the resolution, and if and to the extent any such provisions are inconsistent
with the other provisions of this resolution, the provisions in the Letter of Representations shall control.
3. Purpose. The Bonds shall provide funds to finance the Project. Pursuant to the Plan, tax
increments derived from the Tax Increment District (the "Tax Increments") established pursuant to the Plan,
have been pledged to the payment of the Bonds and interest thereon. The estimated collection of Tax
Increments exceeds twenty percent (20%) of the cost of the Project. The total cost of the Project, 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. Proceeds of the Bonds shall be expended on costs or uses permitted by Minnesota
Statutes, Sections 469.174 through 469.179, including particularly Section 469.176, Subdivision 4, and shall
not be expended on any costs or devoted to any other uses.
4. Interest. The Bonds shall bear interest from their date of settlement. Interest on the
Bonds of each maturity shall be compounded at the yield to maturity applicable to that maturity, as set
out in paragraph 2 of this Resolution, commencing August 1, 2000, and semiannually thereafter on each
February 1 and August 1 (the "compounding date") and interest on the Bonds shall be payable, together
with the principal thereof, only at maturity. For purposes of this Resolution and the Bonds, the
Accreted Amount of each Bond as of a given compounding date shall be the original principal amount
thereof plus interest compounded in accordance with the foregoing provisions and accrued to said
compounding date; as of any other date, it shall be the Accreted Amount as of the most recent
compounding date prior to said date (or the original principal amount if such date precedes August 1,
2000), plus simple interest thereon at a rate equal to the yield to maturity set forth in paragraph 2 above
(calculated on the basis of a 360-day year of twelve 30-day months) accrued from and after said
compounding date (or the issuance date if the other date precedes August 1, 2000) to said other date.
5. No Redemption. The Bonds shall not be subject to redemption and prepayment prior
to their maturity.
6. Bond Re isg tray. Firstar Bank, N.A. , in St. Paul, Minnesota, is appointed to act as
bond registrar and transfer agent with respect to the Bonds (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 holders) of the Bonds in the manner set forth in
the form of Bond and paragraph 12 of this resolution.
7. Form of Bond. The Bonds, 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:
io~asoa.i 9-~R99
UNITED STATES OF AMERICA
STATE OF MINNESOTA
RAMSEY COUNTY
CITY OF MAPLEWOOD
R- $
GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1999B
(CAPITAL APPRECIATION BOND)
MATURITY DATE OF
DATE ORIGINAL ISSUE CUSIP
DATE HEREOF
REGISTERED OWNER:
ACCRETED AMOUNT AT MATURITY: DOLLARS
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, without option of prepayment, in the
manner hereinafter set forth, the Accreted Amount specified above, on the maturity date specified
above, being the original principal amount hereof with interest from the date of original issue hereof
stated above, accreted and payable with principal at maturity, at the yield to maturity which,
compounded on each February 1 and August 1, commencing August 1, 2000, results in the Accreted
Amount set forth for such date in the table printed on the reverse side hereof or the paragraph following
the table for the specified amount per $5,000 Accreted Amount at maturity; subject to the provisions for
redemption of this Bond before maturity referred to below. The "Accreted Amount" of this Bond, per
$5,000 of Accreted Amount at maturity (also referred to as "accreted maturity amount"), as of any
given August 1 is the original principal amount hereof plus interest accrued to such date, as set forth on
the table on the reverse side hereof for each applicable August 1. The Accreted Amount of this Bond is
payable upon presentation and surrender hereof at the principal office of
in
(the "Bond Registrar"), acting as paying agent, or any
successor paying agent duly appointed by the Issuer. Interest on this Bond will not be paid separately,
but will only be paid with principal as Accreted Amount. The Accreted Amount of this Bond is
io~asoa.i 9-~99
payable in lawful money of the United States of America. [So long as this Bond is registered in the
name of the Depository or its Nominee as provided in the Resolution hereinafter described, and
as those terms are defined therein, payment of principal of, premium, if any, and interest on this
Bond and notice with respect thereto shall be made as provided in the Letter of Representations,
as defined in the Resolution. Until termination of the book-entry only system pursuant to the
Resolution, Bonds may only be registered in the name of the Depository or its Nominee.]
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 that 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.
1N WITNESS WHEREOF, the City of Maplewood, Ramsey County, Minnesota, by its
City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor
and its Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law.
* Include only until termination of the book-entry only system under paragraph 2
hereof.
Date of Registration: Registrable by:
io~asoa.i 9-~R99
Payable at
BOND REGISTRAR'S CITY OF MAPLEWOOD,
CERTIFICATE OF RAMSEY COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the /s/ Facsimile
Resolution mentioned Mayor
within.
/s/ Facsimile
Clerk
Bond Registrar
By
Authorized Signature
io~asoa.i 9-~"h99
ON REVERSE OF BOND
No Redemption. The Bonds of this issue (the "Bonds") are not subject to redemption and
prepayment prior to their maturity.
Issuance; Purpose; General Obli ag
tion. This Bond is one of an issue in the total principal
amount of $692,296.80 and total Accreted Amount at maturity of $1,770,000.00, all of like date of
original issue and tenor, except as to number, maturity, interest rate and denomination, 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 of the Issuer on September 27, 1999 (the
"Resolution"), for the purpose of providing money to finance certain capital and administration costs of
Development District No. 1 within the jurisdiction of the Issuer. This Bond is payable out of the
General Obligation Tax Increment Bonds, Series 1999B (Capital Appreciation Bonds) Fund of the
Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt
and full payment of its Accreted Amount when the same becomes due, the full faith and credit and
taxing powers of the Issuer have been and are hereby irrevocably pledged.
Denominations; Exchange; Resolution. The Bonds are issuable solely as fully registered
bonds in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully
registered Bonds of other Authorized Denominations in equal aggregate Accreted Amounts 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.
Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation 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
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 Authorized Denomination or Denominations, in aggregate
Accreted Amount equal to the Accreted Amount of this Bond, of the same maturity and bearing interest
at the same rate.
Fees upon Transfer or Loss. 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 and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and 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
io~asoa.i 9-~99
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.
Authentication. 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.
Qualified Tax-Exempt Obli ag
tion. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of
1986, as amended.
Accreted Amounts. The Accreted Amounts of the Bonds of this issue, together with the
original principal amount thereof, per $5,000 of Accreted Amount at maturity, are set forth in the table
below and the following paragraph.
TABLE OF ACCRETED AMOUNTS
$5,000 ACCRETED AMOUNT AT MATURITY
DATE (See Accreted Value Table attached hereto)
ORIGINAL
PRINCIPAL
AMOUNT
The Accreted Amount on any date other than the maturity date set forth on the table above is (i)
if the date is a compounding date, the Accreted Amount as of the compounding date, or (ii) if the date is
not a compounding date, the Accreted Amount as of the most recent compounding date prior to such
date (or is the original principal amount if the date precedes August 1, 2000) plus simple interest at a
rate equal to the yield to maturity of the Bond (calculated on the basis of a 360-day year of twelve 30-
day months) accrued from and after said compounding date (or the issuance date if the other date
precedes August 1, 2000) to such other date.
ABBREVIATIONS
io~asoa.i 9-~99
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
UTMA - as custodian for
(Gust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
io~asoa.i 9-~99
ASSIGNMENT
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, without alteration or any change whatever.
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 or any other "Eligible Guarantor Institution" as
defined in 17 CFR 240.17 Ad-15(a)(2).
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.)
io~asoa.i 9-~99
8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of the Purchaser,
typewritten) and shall be executed on behalf of the City by the signatures of its Mayor and Clerk and be
sealed with the seal of the City; provided, however, that the seal of the City may be a printed (or, at the
request of the Purchaser, photocopied) facsimile; and provided further that both of such signatures may
be printed (or, at the request of the Purchaser, photocopied) 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 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. The City may elect to deliver, in lieu of
printed definitive bonds, one or more typewritten temporary bonds in substantially the form set forth
above, with such changes as may be necessary to reflect more than one maturity in a single temporary
bond. Such temporary bonds may be executed with photocopied facsimile signatures of the Mayor and
Clerk. Such temporary bonds shall, upon the printing of the definitive bonds and the execution thereof,
be exchanged therefor and cancelled.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any
security or benefit under this resolution unless 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 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 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 the date of delivery. The Certificate of
Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated
and delivered under this resolution.
10. Registration; Transfer; Exchange. 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 paragraph 10) of, 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.
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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 principal office of the Bond Registrar. Whenever any
Bonds are so 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.
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 satisfactory to the Bond Registrar, duly
executed by the Holder thereof or his, her or its 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 and any legal or
unusual costs regarding transfers and lost Bonds.
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. The Clerk is hereby authorized to negotiate and
execute the terms of said agreement.
11. Rights Upon Transfer or Exchange. 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 Pam. Interest shall be paid with principal as Accreted Value.
13. Treatment of Registered Owner. The City and 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
the Accreted Amount of 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. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be
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delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser
shall not be obliged to see to the proper application thereof.
15. Funds. There has heretofore been created a capital projects fund designated the
Development District No. 1 Fund (the "Capital Projects Fund") held and administered by the Finance
Director separate and apart from all other funds of the City. The Capital Projects Fund shall be used to
(a) account for the receipt and disbursement of Tax Increments derived from the Tax Increment District
that is not needed for the Debt Service Fund (as hereinafter defined) and (b) account for the expenditure
of the bond proceeds on the Project. To the Capital Projects Fund there shall be credited the proceeds
of the sale of the Bonds, less such amount as is necessary, together with other available funds, to pay
interest due on the Bonds prior to the receipt of Tax Increments. From the Capital Projects Fund there
shall be paid all costs and expenses of the Project, including all costs incurred and to be incurred of the
kind authorized in Minnesota Statutes, Sections 469.176 and 475.65; and the moneys in said account
shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of
the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the receipt
of Tax Increments.
There is hereby created a debt service fund to be designated the General Obligation Tax
Increment Bonds, Series 1999B (Capital Appreciation Bonds) Fund (the "Debt Service Fund") to be
administered and maintained by the Finance Director as a bookkeeping account separate and apart from
all other funds maintained in the official financial records of the City. The Debt Service Fund shall be
maintained in the manner herein specified until all of the Bonds herein authorized and any other general
obligation tax increment bonds hereafter made payable from the Debt Service Fund and issued for the
Project, including any modifications or additions thereto, and the interest thereon have been fully paid.
There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt
Service Fund: (a) Tax Increments, in an amount sufficient, together with other sums herein pledged, to
pay the annual principal and interest payments on the Bonds and interest on inter-fund loans; (b) all
investment earnings on funds held in the Debt Service Fund; (c) any and all other moneys which are
properly available and are appropriated by the governing body of the City to the Debt Service Fund;
and (d) any collections of all taxes which may hereafter be levied in the event that the Tax Increment
and other sums herein pledged to the payment of the Bonds are insufficient therefor. The Debt Service
Fund shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds 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.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher
yielding investments or to replace funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for
the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater
than the lesser of five percent (5%) of the proceeds of the Bonds or $100,000. To this effect, any
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proceeds of the Bonds and any sums from time to time held in the Capital Projects Fund or Debt
Service Fund (or any other City account which will be used to pay principal or interest to become due
on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbitrage
regulations may be invested without regard to yield shall not be invested at a yield in excess of the
applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into
account any applicable °temporary periods" or "minor portion" made available under the federal
arbitrage regulations. Money in the Fund 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 149(b) of the Internal Revenue Code of 1986, as amended (the "Code").
16. Original Assessed Value/Net Tax Capacity; Tax Increments; Use of Tax Increments. The
County Auditor of Ramsey County has certified the original assessed value or net tax capacity, as the
case may be, of property in the Tax Increment District. The County Auditor shall determine in each
year if the then-current net tax capacity of property in the Tax Increment District exceeds the original
assessed value or net tax capacity, as the case may be, and shall calculate, in the manner provided in
Minnesota Statutes, Section 469.177, Subdivision 3, the captured net tax capacity (as defined therein)
attributable to the Tax Increment District. The City hereby determines to retain 100% of the captured
tax capacity for purposes of tax increment financing. The County Auditor shall, in each such year,
compute the local tax rate to be extended against the captured net tax capacity in the manner provided
in Minnesota Statutes, Section 469.177, Subdivision 3, and the tax generated thereby shall constitute
the Tax Increments for the year in which it is received. The County Treasurer will remit to the City the
Tax Increments so received. The City hereby appropriates the Tax Increments to the Debt Service
Fund, which appropriation shall continue until all of the Bonds and any additional bonds payable from
the Debt Service Fund, are paid or discharged. The City hereby expressly reserves the right to use the
Tax Increments to finance costs set forth in the Plan not financed hereby or to finance costs of other
projects to be undertaken from time to time within the Development District in accordance with the
Program and the Plan, as they may from time to time be amended.
17. Reservation of Rights. Notwithstanding any provisions herein to the contrary, the City
reserves the right to terminate, reduce, or apply to other lawful purposes the Tax Increments herein
pledged to the payment of the Bonds and interest thereon to the extent and in the manner permitted by
law.
18. Future Tax Levies. In the event that it is anticipated that the aggregate of Tax Increments
and any other funds appropriated to and then held in the Debt Service Fund and the estimated
collections of Tax Increments to be received in the next succeeding year will not be sufficient to pay the
principal and interest on the Bonds to become due in the first calendar year after such determination
and the first six (6) 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
io~asoa.i 9-~99
necessary, together with the aforementioned funds then held in the Debt Service Fund and said
estimated collections of Tax Increments, to pay the principal and interest on the Bonds to become due
during said period.
19. Covera eg Test. The estimated collections of 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, will produce at least five percent (5%) in excess of the amount needed to meet when due the
principal and interest payments on the Bonds.
20. Defeasance. When all Bonds have been discharged as provided in this paragraph, all
pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds
shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any
Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that
date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it
may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment
thereof in full with interest accrued to the date of such deposit. The City may also at any time discharge
its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing
and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution
qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes,
Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on
such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to
become due thereon to maturity.
21. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are
intended to establish and provide for the City's compliance with United States Treasury Regulations
Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the
Bonds, being those portions thereof which will be used by the City to reimburse itself for any
expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement
Expenditure").
The City hereby certifies and/or covenants as follows:
(A) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the
City (or person designated to do so on behalf of the City) has made or will have made a
written declaration of the City's official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse itself for the payment of the
Reimbursement Expenditure out of the proceeds of a subsequent borrowing, (ii) gives a
general and functional description of the property, project or program to which the
Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a
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specific fund or account of the City and the general functional purpose thereof from
which the Reimbursement Expenditure was to be paid (collectively the "Project"); and
(iii) states the maximum principal amount of debt expected to be issued by the City for
the purpose of financing the Project; provided, however, that no such Declaration shall
necessarily have been made with respect to: (i) "preliminary expenditures" for the Project,
defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar prefatory costs, which in the aggregate do
not exceed 20% of the "issue price" of the Bonds, and (ii) a de minimis amount of
Reimbursement Expenditures not in excess of the lesser of $100,000 or 5% of the
proceeds of the Bonds. Notwithstanding the foregoing, with respect to any Declaration
made by the City between January 27, 1992 and June 30, 1993, with respect to a
Reimbursement Expenditure made prior to March 2, 1992, the City hereby represents that
there exists objective evidence, that at the time the Expenditure was paid the City
expected to reimburse the cost thereof with the proceeds of a borrowing (taxable or tax-
exempt) and that expectation was reasonable.
(B) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the
Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the
Reimbursement Regulations.
(C) The "reimbursement allocation" described in the Reimbursement Regulations for each
Reimbursement Expenditure shall and will be made forthwith following (but not prior to)
the issuance of the Bonds and in all events within the period ending on the date which is
the later of 18 months after payment of the Reimbursement Expenditure or one year after
the date on which the Project to which the Reimbursement Expenditure relates is first
placed in service, but not more than three years after the date of the Reimbursement
Expenditure.
(D) Each such reimbursement allocation will be made in a writing that evidences the City's
use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within
30 days after the Bonds are issued, shall be treated as made on the day the Bonds are
issued.
Provided, however, that the City may take action contrary to any of the foregoing covenants in this
paragraph 21 upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect that such
action will not impair the tax-exempt status of the Bonds.
22. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds.
The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated
by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange
io~asoa.i 9-3#799
Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter
described to:
(A) Provide or cause to be provided to each nationally recognized municipal securities
information repository ("NRMSIR") and to the appropriate state information depository
("SID"), if any, for the State of Minnesota, in each case as designated by the Commission
in accordance with the Rule, certain annual financial information and operating data in
accordance with the Undertaking. The City reserves the right to modify from time to time
the terms of the Undertaking as provided therein.
(B) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the
Municipal Securities Rulemaking Board ("MSRB") and (ii) the SID, notice of the
occurrence of certain material events with respect to the Bonds in accordance with the
Undertaking.
(C) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSRB
and (ii) the SID, notice of a failure by the City to provide the annual financial information
with respect to the City described in the Undertaking.
(D) The City agrees that its covenants pursuant to the Rule set forth in this paragraph 22 and
in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall
be enforceable on behalf of such Holders; provided that the right to enforce the provisions
of these covenants shall be limited to a right to obtain specific enforcement of the City's
obligations under the covenants.
The Mayor and Clerk of the City, or any other officer of the City authorized to act in their place
with "Officers" are hereby authorized and directed to execute on behalf of the City the Undertaking in
substantially the form presented to the City Council subject to such modifications thereof or additions
thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the
Bonds, and (iii) acceptable to the Officers.
23. General Obligation Pledge. 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 irrevocably pledged. If the balance in the Debt Service Fund 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 accounts of the City which are available for such purpose, and such other funds
may be reimbursed without interest from the Debt Service Fund when a sufficient balance is available
therein.
24. Certificate of Registration. The Clerk is hereby directed to file a certified copy of this
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resolution with the County Auditor of Ramsey County, Minnesota, together with such other
information as he or she shall require, and to obtain the County Auditor's certificate that the Bonds have
been entered in the County Auditor's Bond Register.
25. Records and Certificates. The officers of the City are hereby authorized and directed to
prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the
Bonds, 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, including any heretofore furnished, shall be deemed
representations of the City as to the facts recited therein.
26. Negative Covenant as to Use of Proceeds and Project. The City hereby covenants not to use
the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into
any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bonds
to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
27. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with requirements
necessary under the Code to establish and maintain the exclusion from gross income under Section 103
of the Code of the interest on the Bonds, including without limitation (1) requirements relating to
temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield
on the Bonds, and (3) the rebate of excess investment earnings to the United States if the Bonds
(together with other obligations reasonably expected to be issued and outstanding at one time in this
calendar year) exceed the small-issuer exception amount of $5,000,000.
For purposes of qualifying for the exception to the federal arbitrage rebate requirements for
governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares
that (1) the Bonds are issued by a governmental unit with general taxing powers, (2) no Bond is a
private activity bond, (3) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be
used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is
entirely within the jurisdiction of the City), and (4) the aggregate face amount of all tax-exempt bonds
(other than private activity bonds) issued by the City (and all subordinate entities thereof, and all
entities treated as one issuer with the City) during the calendar year in which the Bonds are issued and
outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of
Section 148(f)(4)(C) of the Code.
28. Designation of Qualified Tax-Exempt Obli atg
ions. In order to qualify the Bonds as
"qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City
hereby makes the following factual statements and representations:
io~asoa.i 9-~99
(A) the Bonds are issued after August 7, 1986;
(B) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(C) the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(D) the reasonably anticipated amount of tax-exempt obligations (other than private activity
bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be
issued by the City (and all entities treated as one issuer with the City, and all subordinate entities
whose obligations are treated as issued by the City) during this calendar year 1999 will not
exceed $10,000,000; and
(E) not more than $10,000,000 of obligations issued by the City during this calendar year 1999
have been designated for purposes of Section 265(b)(3) of the Code.
The City shall use its best efforts to comply with any federal procedural requirements which may apply
in order to effectuate the designation made by this paragraph.
29. Severability. If any section, paragraph or provision of this resolution shall be held to be
invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or
provision shall not affect any of the remaining provisions of this resolution.
30. Headings. Headings in this resolution are included for convenience of reference only and
are not a part hereof, and shall not limit or define the meaning of any provision hereof.
Seconded by Councilmember Koppen Ayes -all
J. UNFINISHED BUSINESS
NONE
K. NEW BUSINESS
NONE
L. VISITOR PRESENTATIONS
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Margaret Roustain, 1463 Myrtle Court
M. COUNCIL PRESENTATIONS
1. Mayor's Mailbox- Homicide Report
N. ADMINISTRATIVE PRESENTATIONS
1. Referendums -updates of meetings were given where the referendums will be presented to the
public.
2. Partnerships -Councilmember Allenspach reported on "Partnerships" and educating on drugs &
alcohol, Red Ribbon Events in Schools, N. St. Paul is the host city.
3. Public Safety -Councilmember Carlson requested an update on the fire at the Rolling Hills
Manufactured Home Park
O. ADJOURNMENT
Mayor Rossbach moved to adjourn the meeting at 8:00 P.M.
Seconded by Councilmember Koppen Ayes -all
Karen E. Guilfoile, City Clerk
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