HomeMy WebLinkAboutMay 26, 1987'OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
REGULAR COUNCIL MEETING
MAY 26, 1987
The meeting was called to order by Mayor Nawrocki at 7:30 p.m..
1. Roll Call
Paulson, Petkoff, Carlson, Peterson, Nawrocki - present
2. Invocation
The Invocation was offered by Pastor W. Karl Smith of Oak Hill Baptist Church.
3. Consent Agenda
The following items were on the consent agenda for Council consideration:
Approval of Minutes of Previous. Meetings
The Council approved the'-minutes of the Public Improvement Hearing of May Ilth
and the Regular Council Meeting of May llth. There were no corrections.
Traffic Commission Public Hearing .- T~o WRY .StRR at the Intersection of 43rd
Avenue and Washington Street
The Traffic Commission held a public hearing to discuss with affected residents
the placement of a two way stop sign at the intersection of 43rd Avenue and
Washington Street. The Council approved the installation of a two way stop
sign on Washington Street at 43rd Avenue and approved the removal of the "Yield"
sign on the west leg of 43rd Avenue a't the intersection.
Request of Athletic Boosters to Conduct Bingo and a Raffle at Fourth of July.
Celebration
The City Council requested that the City Manager advise the Minnesota Charitable
Gambling Control Board that the City has no objections to the Columbia Heights
Athletic Boosters Club (Minnesota Gambling License B-02072-001) conducting bingo
and selling raffles in conjunction with the Fourth of July Celebration on July
4, 1987 at John P. Murzyn Hall, 530 Mill Street N.E..
Request for Temporary Sig?age at Little Caesar's Pizza of Minnesota
The Council authorized the use of a temporary sign and the placement of a large
balloon on the roof of Little Caesar's Pizza located at 4353 Central Avenue with
the understanding that the permit shall not exceed five consecutive calendar days
and that such permit may be issued upon receipt of a $100 refundable fee.
Award of Sealcoat Bids - Project #8703
The Council awarded Project #8703 to Allied Blacktop Company based on their low,
formal bid of $146,391.06 and the Mayor and City Manager were authorized to enter
into an agreement for same.
Award of Contract for Weed Cuttin9
The Council accepted the proposal from Mr. Archie Romslow to perform the City's
week cutting duties at a rate of $25.00 per hour and authorized the Mayor and
City Manager to enter into an agreement with Mr. Romslow.
Adoption of Consent Agenda
Motiqn by Paulson, second by Peterson to adopt the consent agenda as presented.
Roll call: Ali ayes
Regular Council Meeting
May 26, 1987
page 2
4. Presentations
A check for $550 was presented to the Council for use in John P. Murzyn Hall
by the President of the Columbia Heights Youth Hockey Association.
On behalf 6f the City Councilmember Carlson had received a plaque from the
Traffic Safety Council in recognition of the City's merltorius safety record.
He presented the plaque to the Council.
5. Oral Petitions
There were no oral petitions.
Ordinances and Resolutlons
a. Resolution No..87-37; Being a Resolution Awarding the Sale of, and Providing
the Form, Terms, Covenants and Directions for $9,090,000 General Obligation Tax
Increment Refunding Bonds of 1987, Series A
This bond would replace two earlier tax increment bonds; one issued in 1980
having a principal sum of $7,240,000 and an issue of 1985 having a principal
sum of $1,860,OO0. The above amounts are the prlncipal sums to be refunded
and not the amounts of the original bond issues. The bond counsel, Steve
Emerson of Miller & Schroeder Financial, Inc., reviewed the bids received and
the sale of the bonds. He noted that bids have been received from firms who
have not bid in the past on issues of the City and added that Moody's had com-
mented on the sound financial status of the City. The City's A-1 credit rating
by Moody's continues.
The City Manager advised the Council that issuance fees have increased because
legal fees of the bond counsel!s firm have increased. The fees are now being
charged based on increments of the bond sale. He reviewed the old fee schedule
and the new schedule. The Mayor observed that the fees are fiscal fees and not
legal fees. He was correct and the bond counsel noted that the bonds issued in
1985 had been charged at the higher rate than what Is in the 1984 contract. The
difference of $2,825 will be rebated as the Council was not advised of this
higher rate on the 1985 issue. Mayor Nawrocki felt the last contract the City
had with the bond counsel's firm should be used and that it prevails as the
City was not notified of the higher fee schedule. The bond counsel stated that
the old fee schedule could be used if so desired rather than delay awarding the
bonds. He noted that a delay would cost much more than the difference in fees.
Motion by Petkoff, second by Carlson tO waive the reading of the resolution
there being ample copies available to the publlc. Roll call: All ayes
RESOLUTION NO. 87-37
RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND
DIRECTIONS FOR $9,090,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS OF
1987, SERIES A.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AS
FOLLOWS:
Section 1. Award of Sale: Term of Bonds.
1.01 Award of Sale. The City Council (the "Council") of the City of Columbia
Heights, Minnesota (the ~'lssuer") hereby awards the sale of $9,090,000 General
Obligation Tax Increment Refunding Bonds of 1987, Series A (the "Bonds") to a
syndicate headed by The First National Bank of Saint Paul (the "Purchaserm~) as
Regular Councll Meeting
May 26, 1987
page 3
the bidder offering the lowest net interest cost by its bid to purchase the
Bonds at a price of $8,930,925 plus accrued interest of the date of delivery,
the Bonds to bear interest at the rates per annum as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1991 5.75'~ 1997 7.00 ~
1992 6.00 1998 7.10
1993 6.20 1999 7.20
1994 6.40 2000 7.30
1995 6.60 2001 7.40
1996 6.80 2002 7.50
The City Manager of the Issuer. is directed to return the good faith checks of the
unsuccessful bidders.
1.02 Contract for Sale. The Mayor and the City Manager are hereby authorized
and directed to execute a contract for the sale of Bonds on behalf of the Issuer
in accordance with the terms of the accepted bid. The good faith check of the
Purchaser shall be retained by the City Manager until the Bonds have been deliv-
ered and the purchase price has been paid.
1.03 Maturities. The Issuer shall issue the Bonds in the aggregate principal
amount of $9,090,000 dated June ), 1987 as fully registered bonds. The Bonds
shall be in denominations of $5,000 or any integral multiple thereof not exce-
eding the principal amount of a single maturity, sha)l be numbered from R-1
upwards in order of issuance, and shall bear interest at the rates set forth
above, payable September ), 1987 and semiannually.thereafter on each March 1
and September l, and shall mature on March I in the years and amounts ms fo))ows:
Year Amount Year Amount
1991' $525,000 1997 $910,000
1992 640,000 1998 960,000
1993 680,000 1999 930,000
1994 695,000 2000 900,000
1995 820,000 2001 875,000
1996 910,000 2002 245,000
Bonds issued in exchange for Bonds shall' be dated as of the date of authentication
thereof and shall bear interest from the date to which interest due and payable
has been paid in full on the Bonds surrendered, except that Bonds issued upon a
transfer or exchange prior to the first interest payment date shall be dated as
of June 1, 1987.
1.04 Redemption. All Bonds maturing on or after March 1, 1995, shall be subject
to redemption and prior payment in whole or in part in inverse order of maturity
and by lot within maturity at the option of the Issuer on March 1, 1994, and any
interest payment date thereafter at a price of the principal amount thereof plus
accrued interest. Thirty days' prior notice of redemption shall be given by mail
to the Registrar and to the registered owners of the Bonds, and notice of redemp-
tion will be published in the manner provided by Minnesota Statutes, Chapter
475. Upon notice having been so given, the Bonds or portions of Bonds there~nl
specified shall be due and payable at the stated redemption date and price with
accrued interest to the redemption date, and upon funds for such payment being held
by or on behalf of the Registrar for such payment on the specified redemption date,
interest thereon shall cease to accrue after such redemption date. No defect in
Regular Council Meeting
May 26, 1987
page q
the mailed notice of redemption shall affect the validity of the call for
redemption of any Bond.
1.05 R~glstratlon. The Issuer shall appoint, and shall maintain, a bond registrar,
transfer agent and paying agent (the ~Registrar"). The effect of registration
and the rights and duties of the Issuer and the Registrar with respect thereto
shall be as follows:
(a)
Register. The Registrar shall keep at its principal corporate trust
office a bond register in which the Registrar shall provide for the
registration of ownership of Bonds and the registration of transfers
and exchanges of Bonds entitled to be registered, transferred or
exchanged.
(b)
(c)
Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed
by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the re-
gistered owner in writing, the Registrar shall authenticate and deliver,
in the name of the designated transferee or transferees, one or more new
Bonds of a like aggregate prlncipal amount and maturity, as requested by
the transferor. The Registrar may, however, close the books for registra-
tion of any transfer after the fifteenth day of the month preceding each
interest payment date until such interest payment date.
Excha~.ge of Bonds. Whenever aqy Bond is surrendered by the registered
owner for exchange, the Registrar shall authenticate and deliver oae or
more new Bonds of a like aggregate principal amount and maturity, as re-
quested by the registered owner or the owner's attorney duly authorized
in writing.
(d)
Cancellation. AI1 Bonds surrendered upon any transfer or exchange shall
be promptly cancelled by the Registrar and thereafter disposed of as
directed by the Issuer.
(el
Improper or Unauthorized Transfer. When any Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same
until it is satisfied that the endorsement on such Bond or separate in-
strument of transfer is legally authorized. The Registrar shall incur
no liability for its refusal, in good faith, to make transfers which
in its judgement deems improper or unauthori'zed.
(f)
Persons Deemed Owners. The Issuer and the Registrar may treat the person
in whose name any Bond is at any time registered in the bond register as
the absolute owner of such Bond, whether such Bond shall be everdue or
not, for the purpose of receiving payment of, or on account of, the prin-
cipal of and interest on such Bond and for all other purposes, and all
such payments so made to any such registered owner or upon the owner's
order shall be valid and effectual to satisfy and discharge the llabillty
of the Issuer upon such Bond to the extent of the sum or sums so paid.
(gl
Taxes, ~ees and Charges. For every transfer or exchange of Bonds, the
Registrar may impose a charge upon the owner thereof sufficient to re-
imburse the Registrar for any tax, fee or other governmental charge re-
quired to be paid with respect to such transfer or exchange.
.. Regular Council Meeting
May 26, 1~87
page 5
(h)
Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become
mutilated or be lost, stolen or destroyed, the Registrar shall deliver a
new Bond of llke amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of any such mutilated Bond or in
lieu of and in substitution for any such Bond lost, stolen or destroyed
upon the payment of the reasonable expenses and charges of the Registrar
in connection therewith; and, in the case of a Bond lost, stolen or des-
troyed, upon filing with the Registrar of evidence satisfactory to it that
such Bond was lost, stolen or destroyed, and of the ownership thereof, and
upon furnishing to the Registrar of an appopriate bond or indemnity in
form, substance and amount satisfactory to it, in which both the Issuer
and the Registrar shall be named as obligees. All Bonds so surrendered
to the Registrar shall be cancelled by it and evidence of such cancel-
lation shall be given to the Issuer. If the mutilated, lost, stolen or
destroyed Bond has already matured or been called for redemption in ac-
cordance with its terms, it shall not be necessary to issue a new Bond
prior to payment.
1.06 Appointment of Initial Registrar. The Issuer hereby appoints Marquette Bank
of Minneapolis, as the init'iai Registrar. The Mayor and City Manager are authorized
to execute and deliver, on behalf of the Issuer, a contract with Marquette Bank
Minneapolis, as Registrar. Upon merger or consolidation of the Registrar with
another corporation, if the resulting corporation is a bank or trust company
authorized by law to conduct such business, such corporation shall be authori-
zed by law to conduct such business, such corporation shall be authorized to act
as successor Registrar. The Issuer agrees to pay the reasonable and customary
charges of the Registrar for the services performed. The Issuer reserves the right
to remove any Registrar upon thirty (30) days' notice and upon the appointment
of a successor Registrar, in which event the predecessor Registrar shall deliver
all cash and Bonds in its'possession to the successor Registrar and shall deliver
the bond register to the successor Registrar. On or before each principal or
interest due date, without further order of this Council, the City Clerk-Treasurer
of the Issuer shall transmit to the Registrar, from the Bond Fund described in
Section 5.01 hereof, moneys sufficlent, together with moneys, if any, available
for the payment of debt service on the Bonds from the Escrow Agreements described
below pursuant to the terms thereof, for the payment of a11 principal and interest
then due.
1.07 Manner of Payment. The Bonds shal'l be payable as to principal upon presenta-
tion at the main office of the Registrar. If the stated maturity date for payment
of principal of any Bond shall not be a business day, then such payment shall be
made on the next succeeding business day with the same force and effect as if made
on the stated maturity, and without additional interest accruing thereon for the
period after such stated maturity. Interest on each Bond shall be payable by check
or draft of the Registrar mailed on the interest payment date or, if the interest
payment date is.not e business day, then such payment shall be mailed on the first
business day following the .interest payment date with the same force and effect
as if payment were made on the interest payment date, to the person who was the
registered holder thereof at the close of business on the lSth day (whether or
not a business day) of the calendar month next preceding the interest payment
date, at his or her address as it appears on the bond register. For purposes
of this resolution "business day" shall mean any day other than a Saturday,
Sunday, or other day on which banks in the city in which the principal office
of the Registrar is located are authorized to be closed.
Section 2. Form of the Bonds.
Regular Council Meeting
May 26, 1987
page 6
2.01 The Bonds shall be in substantially the following form, with the necessary
variations as to number, CUSIP Number, rate of interest and date of maturity,
the blanks to be properly filled in:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
ANOKA COUNTY
CITY OF COLUMBIA HEIGHTS
No. R- $
GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND OF 1987, SERIES A
Rate Maturity Nominal Date CUSIP
of Original Issue
The City of Columbia Heights, Minnesota (the "Issuer"), for value received,
hereby certifies that it is indebted and hereby promises to-pay to
or registered assigns, the principal sum of dollars ($ ')
on the maturity date specified above, upon the presentation and surrender hereof, and
to pay the registered owner hereof interest on such 'principal sum at the interest
rate specified above from June 1, 1987, or the most recent interest payment date
to which interest has been paid or duly provided for as specified below, on March
1 and September 1 of each year, commencing September 1, 1987, until said principal
sum is paid. Principal and the redemption price are payable in lawful money of
the United States of America at as Registrar, Transfer Agent and
Paying Agent, in , Minnesota, or at the offices of such owners at their
registered addressed (the "Registrar"). Interest shall be paid on each March 1
and September I by check or draft mailed by first class mail, postage prepaid, on
th~ ~terest payment date, or if the interest payment date is not a business day
thc ~'he first business day thereafter, to the person to whose name this Bond
is ~: ~,~ered at the close of business on the 15th day of the month, precediDq such
interest payment date (whether or not a business day) at his or her address set
forth on the bond'register maintained by the Registrar. Any such interest not
punctually paid or provided for will be paid to the person in whose name this
Bond is registered at the close of business on a special record date established
by the Registrar for the payment of such defaulted interest. "Business Day" shall
mean any day other than a Saturday, Sunday, or other day when banks located in the
city in which the principal office of the Registrar is located are authorized
to be closed.
Bonds of this Series maturing in the years 1991 through 1994 are not subject to
redemption prior to maturity. The Bonds of this series maturing on or after March
l, 1995, are subject to redemption at the option of the Issuer in whole or in part
in inverse order of maturity and by lot within a maturity, on March 1, )994 and any
interest payment date thereafter at a price equal ~o the principal amount thereof
and accrued interest. Thirty days' prior notice of redemption will be given by
mail to the Registrar and to the registered owners, and notice of redemption will
be published in the manner provided by Minnesota Statutes, Chapter 475. No defect
in mailed notice Will affect the valldity of the call for redemption.
This Bond is one of a series of Bonds in the aggregate principal amount of Nine
Million Ninety Thousand Dollars ($9,090,000), all of like date and tenor except
for number, interest rate, denomination, date of maturity and redemption prlvilege,
and is issued for the purpose of providing funds to crossover-refund the outstand-
ing principal amount of the Issuer's General Obligation Tax Increment Bonds of 1985,
Regular Council Meeting
May 26, 1987
page 7
Series A and its General Obligation Tax Increment Bonds of 1980 (together, the
"Prior Issues"), and is issued pursuant to an authorizing resolution (the "Reso-
lution''), duly adopted by the Issuer on May 26, 1987, and pursuant to and in full
conformity with the City Charter of the Issuer and the Constitution and laws of
the State of Minnesota, including Minnesota Statutes, Chapter q75. The Bonds of
this series are payable primarily from the Debt Service Fund of the Issuer estab-
lished pursuant to a resolution of the Issuer adopted on August ll, 1980, except
that prior to the refunding of the Prior Issues, a portion of the debt service
on the Bonds will be payable from escrow funds established pursuant to separate
Escrow Agreements relating to the Prior Issues dated as of June 1, 1987, between
the Issuer and Marquette Bank Minneapolis, in which certain proceeds of the Bonds
have been deposited. All taxable property within the l. ssuer is subject to the levy
of ad valorem taxes required by law to be levied and extended if needed for this
purpose, without limitation of rate or amount. The issuance of this bond does not
cause the indebtedness of the Issuer to exceed any constitutional, statutory, or
charter limitation thereon. The Bonds of this series are issuable only as fully
registered bonds without coupons in denominations of $5,O00 or any integral
multiple thereof not exceeding the principal amount maturing in any one year.
As provided in the Resolution, and subject to certain limitat|ons set forth
therein, this Bond is transferable upon the books of the Issuer kept for that
purpose at the principal office of the Registrar, by the registered owner hereof
in person or by such owner's attorney duly authorized in writing, upon surrender
of this Bond together with a written instrument of transfer satisfactory to the
Registrar, duly executed by the registered owner or such owner's du)'y authorized
attorney; and may also be exchanged for Bonds of other authorized denominations.
Upon such transfer or exchange and the payment of any tax, fee or governmental
charge required to be paid by the Issuer or the Registrar with respect to such
transfer, there will be issued in the name of the transferee a new Bond or Bonds
of the same aggregate principal amount as the surrendered Bond, bearing interest
at the same rate and maturing on the same date.
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 exist, to
happen and to be performed in order to make this Bond a valid and binding general
obligation of the Issuer according to its terms, have been done, do exist, have
happened and have been performed in due form, time and manner as so required.
This Bond shall not be valid or/become obligatory for any purpose until the
Authentication Certificate hereon shall have been manually signed by a person
authorized to sign on behalf of the Registrar.
IN WITNESS WHEREOF, the City of Columbia Heights, Minnesota has caused this
Bond to be executed with the facsimile signatures of its Mayor and by its City
Manager, all as of the Nominal Date of Original Issue specified above.
Dated:
(Facsimile)
CITY OF COLUMBIA HEIGHTS,
MINNESOTA
By
(Facsimile)
City Manager Mayor
Certification of Authentication
This is one of the Bonds described in the within mentioned resolution.
Regular Councll Heetlng
Hay 26, 1~87
page 8
Bond Registrar
By
Authorized Signature
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please print or typewrite name and address of' Transferee. Include information
for all joint owners if the Bonds are held by joint account).
The within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints attorney to transfer the wlthin Bond on the
books kept for registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed by:
Signature(~)' must be guaranteed by a
commercial bank or trust company or
by a brokerage firm having member-
ship in one of the major stock
exchanges.
Please insert social security
number or other identifying
number of Assignee.
Notice: The signature(s~ on this
assignment must correspond with
the name(s) which appear on the
face of this Bond in every par-
ticular, without alteration or
any change whatever.
(Form of Certificate)
CERTIFICATE AS TO LEGAL OPINION
I, Robert S. Bocwinski, City Hanager of the City of Columbia Heights, Minnesota,
hereby certify that except for the date line, the above is a full, true and com-
pared copy of the legal opinion of Holmes & Graven, Chartered, of Minneapolis,
Minnesota, which was dellvered to me upon dellvery of the bonds and is now on
file in my office.
(Facslmile)
City Manager
Section 3. Execution and Deliver~. The Bonds shall be executed on behalf of the
Issuer by the signatures of the Mayor and City Manager of the Issuer, and shall
be sealed with the official corporate seal of the Issuer; provided that said sig-
natures and the corporate seal may be printed, engraved, or lithographed facsimiles
thereof. In case of any officer whose signature, or a facsimile of whose signature,
shall appear on the Bonds shall cease to be such officer before the delivery of
any Bond, such signature or facsimile shall nevertheless be valid and sufficient
for a11 purposes, the same as if such officer had remained in office until deli-
very. Notwithstanding such execution, no Bond shall be valid or obligatory for
any purpose or entitled to any seeurity or benefit under this resolution unless
and until a certl(icate Sf authentication on such Bond has been duly executed by
Regular Council Meeting
May 26, 1987
page 9
the manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same representative.
The executed certificate of authentication on each Bond shall be conclusive evidence
that it has been authenticated and delivered under this resolution. When the Bonds
have been so executed and authenticated, and upon receipt of the approving legal
opinion of Holmes & Graven, Chartered, they shall be delivered by the City Manager
to the Purchaser thereof upon payment of the purchase pr,ice in accordance with the
contract of sale to be made and executed, and the purchaser shall not be obligated
to see to the application of the purchase price.
Section 4. Refunding of Prior Issue.
4.01 Escrow Agreement. The form of Escrow Agreement proposed to be made and entered
into between the Issuer and Marquette Bank Minneapolis, relating to the General
Obligation Tax Increment Bonds of 1985, Series A and the General Obligation Tax
Increment Bonds of 1980 ( the "Prior Issues") is hereby approved and shall be
executed on behalf of the Issuer by the Mayor and City Manager in substantially
the form attached hereto as Exhibit A, with such changes therein (including the
provision for a separate Escrow Agreement for each of the Prior Issues) not in-
consistent with Section 475.67, Minnesota Statutes, or other law, as the officers
executing the same may approve, which approval shall be conclusively evidenced by
the execution thereof. The Escrow Agreement shall be irrevocable and the Issuer
hereby covenants to perform the terms and conditions thereof as long as either of
the Prior Issues is outstanding. The Issuer hereby agrees to pay the reasonable
charges of the escrow agent for acting as such. Pursuant to Minnesota Statutes,
Section 475.67, Subd. 13, and the Escrow Agreement, moneys, including investment
earnings, in the escrow fund or funds, will be applied to the payment of a portion
of the interest on the Bonds prior to the date when moneys in the escrow fund or
funds, are applied to the redemption of the Prior Issues on the dates set fo6tb
in the Escrow Agreement.
4.02 Application of Proceeds. The proceeds of the Bonds are hereby appropriated
as follows: (al an amount sufficient to fund the escrow fund pursuant to the
Escrow Agreement (currently estimated to be $8,863,500) shall be deposited in
such Escrow Fund and applied in accordance with the Escrow Agreement; and (bi
an amount equal to the costs of issuing the Bonds '(currently estimated to be
$67,000) shall be applied to the payment thereof.
4.03 Verifications. The firm of Price Waterhouse, Independent public accountants
and consulting actuaries, is hereby authorized and directed to verify that the
deposits in the Escrow Fund for the Prior Issue will be sufficient to redeem
the Prior Issues as provided in the Escrow Agreement, and to make such calcula-
tions as may be necessary for the purpose of determining compliance wi'th Section
148 of the Internal Revenue Code of 1986, as amended (the "Code") and the ap-
plicable Treasury Regulations.
Section 5. prpject Account, Rebate Subaccount, Pledges, Appropriations.
5.01 Project Account. The Issuer's Project Account (the "Project Account")
created on the official records of the Issuer by a Resolution of the Issuer
adopted on August ll, 1980, shall continue to be held and administered by the
Clerk-Treasurer, deposited in one or more banks duty qualified as depositories
of funds of the Issuer, separate from ali other bank accounts, and invested
and reinvested in accordance with resolutions of the Issuer and Minnesota Statutes,
Regular Council Meeting
May 26, 1987
page 10
Section 475.66, and shall be used only to pay principal and interest and expenses
of payment when due on genera] obligation tax increment bonds of the {~suer made
payable therefrom, including the Prior Issues prior to their redemption pursuant
to the Escrow Agreement, and including the Bonds to the extent debt service thereon
is not payable from the escrow fund establlshed pursuant to the Escrow Agreement,
until all such principal and interest and expenses have been fully paid; provided
that if any payment falls due when the balance in the Project Account is insuf-
ficient to pay it, the deficiency shal] be paid out of any other funds of the
Issuer available for that purpose, and advances so made may be repaid from the
Project Account when a sufficient balance is available therein,
5.02 Rebate Account.
(a) There is hereby created an additional subaccount in the Project Account,
designated the I'Rebate Subaccount~l.
(bi No later than one year following the date of the closing on the Bonds,
on each anniversary thereof, and on the date of retirement of the last
outstanding Bond, the Issuer shall calculate or cause to be calculated
(ii the amount to be transferred to the Rebate Subaccount, If any, neces-
sary to increase the amount id the Rebate Subaccount to the amount of
Excess Earnings (as defined below) for the period from the preceding twelve
month period to such date of transfer, or (ii) the amount to be transferred
from the Rebate Subaccount to the Debt Service Subaccount of the Project
Account, if any, necessary to reduce the amount ,in the Rebate Subaccount
to the amount of the Excess Earnings for such period; and the Issuer shall
transfer such amount no later than the fifteenth (15th) day of the same
month,
(c) The Issuer shall pay to the United States of America from monies on
deposit in the Rebate Subaccount the Excess Earnings on the fifth anniver-
sary of the date of issuance of the Bonds, and on such date in each fifth
year thereafter.
(d) All amounts in the Rebate Subaccount shal! be used and withdrawn by
the Issuer as required above solely for the purposes set forth in (b) and
(c) above. In the event that the amount in the Rebate Subaccount is for any
reason insufficient to pay to the United States the amounts due as calculated
in this Section, the Issuer shall transfer to the Rebate Subaccount the
amount of such deficiency.
(e) Investment earnings on amounts held in the Rebate Subaccount shall be
retained in the Rebate Subaccount.
(fi For purposes of this resolution, "Excess Earnings" shall mean for any
given period (ii the aggregate amount of interest, profits and other income
earned in such period from the investment of amounts in the Project Account,
and the investment of Bond proceeds in the Escrow Fund, less (2) the aggregate
amount which would have earned in such period if such investments had been
at the yield on the Bonds, calculated pursuant to Section 148 of the Code
compounded semiannually, plus (3) investment earnings allocable to the dif-
ference between (1) and (2) above. The amount described in clause (1) of this
definition shall take into account.any gain or loss realized on the dispo-
sition of investment securities credited to any such fund or account. On the
date or retirement of the last Bond remaining unpaid, the amount described
Regular Council Heating
t4a¥ 26, 1~t87
page 1 i
in clause (ii of this definition shall include any unreallzed gain or
loss as of such date. Excess Earnings shall not include any amount earned
on the Debt Service Subaccount if (1) the gross earnings on such account
for the bond year is less than $100,000, and (ii) the Debt Service Sub-
account is depleted at least once in such bond year except for a carryover
amount which does not exceed the greater of one year's earnings on the debt
service account or one-twelfth of annual debt service on the Bonds.
5.03 Appropriations. The following sums are hereby appropriated and shall be
credited as received to the Debt Service Subaccount of the Project Account:
(al From the proceeds of the Bonds: (ii the accrued interest paid by the
Purchaser from the date of issue to the date of delivery thereof; and (ii)
the amount of proceeds in excess of $8,926,380 received from the sale of
the Bonds.
(bi All income and gain from investment of the Project Account (to which all
loss from such investment shall be charged).
(c) All tax increment paid to the 'Issuer by The Housing and Redevelopment
Authority in and for the City of Co]umbia Heights, Hinnesota (the "Authority"),
pursuant to the Tax Increment Pledge Agreement (the "Pledge Agreement") dated
as of August 11, )980, as the same has been and may be amended.
(d) Any sums collected from taxes extended and assessed in connection with
the Bonds or the Prior Issues.
(el Investment earnings on the escrow fund established pursuant to the Escrow
Agreement to the extent provided therein.
5.04 Pledge of Full Faith and Credit. The full faith and credit and taxing powers
of the Issuer are irrevocably p)edged for the prompt and full payment of the
prlncipa) of and interest on the Bonds and such other general obligation
indebtedness as may be made payable from the Project Account, as such prin-
cipal and interest respectively become due.
5.05 Tax Increment Pledge A~reement. In accordance with a Resolution of the Issuer
adopted on August 1¥, '1~80', the Issuer has entered into the Pledge Agreement
with the Authority. It is in the best interest of the Issuer to amend the
P]edge Agreement to expressly refer to the Bonds. Accordingly, the Mayor and
the City Manager are hereby authorized to enter into an amendment to the
Pledge Agreement adding a specific reference to the Bonds, and the City Mana-
ger is directed to cause a fully executed copy of such amendment to be filed
with the County Administrator of Anoka County. ~
5.06 Revenues Sufficient. It is estimated that the revenues pledged for the pay-
ment of the Bonds will produce sums in an amount not less than 5~ in excess
of the amounts needed to meet when due payments of principal of and interest
on the Bonds, and accordingly no tax is levied by this Resolution for that
purpose. Pursuant to the Pledge Agreement, as amended by the Authority will
deposit in the Project Account prior to each debt service payment date during
the term of the Bonds an amount sufficient to pay principal of, redemption
price, if applicable, and interest on the Bonds due on the Bonds on the next
succeeding-debt service payment.date.
Regular Council Meeting
May 26, 1987
page 12
5.07 The Clerk-Treasurer of the Issuer is directed to keep on file in his office
a tabulation of the dates and amounts of the principal and interest pay-
ments to become due on all bonds payable from the Project Account.
Section 6. Defeasance. When all of the Bonds have been discharged as provided
in this Section 6, all pledges, covenants and other rights granted by this reso-
lution to the holders of the Bonds shall cease. The Issuer may discharge its
obligations with respect to any Bonds which are due on any date by irrevocably
depositing with the 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 Registrar a sum sufficient
for the payment thereof in full with interest accrued to the date of such de-
posit. The Issuer may also discharge its obligations with r&spect to any pre-
payable Bonds called for redemption on any date when they are prepayable according
to their terms, by depositing with the Registrar on or before that date a sum
sufficient for the payment thereof in full, provided that notice of the redemp-
tion thereof has been duly given as provided in Section 1.Oq hereof. The Issuer
may also at any time discharge its obllgatlons 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 bank qualified by law as an escrow
agent for this purpose, cash or Securities which are general obligations of the~
United States or securities of United States agencies which are authorized by law
to be so deposited, bearing interest payable at such time and at such rates and
maturing on such dates as shall be required, without reinvestment, to pay all
principal and interest to become due thereon to maturity or, if notice of redemp-
tion as herein required has been duly provided for, to such earlier redemption
date.
Section 7. Non-Arbit?ge Covenants; Certification of Proceedings;'General Covenants.
7.01 Non-Arbitrage Covenants.
(al The Issuer covenants and agrees with the Purchaser and holders of the
Bonds that the investments.of gross proceeds of the Bonds, including the
investment of any revenues pledged to the Bonds which are considered pro~
ceeds under the applicable regulations, and accumulated sinking funds, if
any,'shall be limited as to amount and yield in such manner that the Bonds
shall not be arbitrage bonds within the meaning of Section 148 of the Inter-
nal Revenue Code of 1986, as amended, and applicable Treasury Regulations.
On the basis of the existing facts, estimates and circumstances, including
the foregoing covenant, the Issuer hereby certified that it is not expected
that the proceeds of the Bonds will be used in such manner as to cause the
Bonds to be arbitrage bonds under Section 148 and the applicable Treasury
Regulations. The Mayor and City Manager shall furnish an arbitrage certi-
ficate to the Purchaser embracing or based on the foregoing certification
at the time of delivery of the Bonds to the Purchaser.
(bi The Issuer further covenants to the United States of America any rebate
payment required to be made pursuant to Section 1q8 of the Cdde as and at
the times provided in Section 5.02 hereof.
7.02 Certification of Proceedings. The staff and officers of the Issuer are hereby
authorized and directed to prepare and furnish to the Puwchaser and to Holmes
& Graven, Chartered, Bond Counsel, certified copies of all proceedings and
Regular Council Meeting
May 26, 1987
page 13
and records of the Issuer, and such other affidavits, certificates and in-
formation as may be 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. Issuer as to the facts
recited therein.
7.03 General Covenant. The Issuer eovenants and agrees with the holders from time
to time of the Bonds that it will not take or permit to be taken by any of
its officers, employees or agents any action which would cause the interest
on the Bonds to become subject to taxation under the Internal Revenue Code
of 1954, as in effect immediately prior to the enforcement of the Tax Reform
Act of 1986 (the "Act"), and read as including certain provisions of the Act
as required by Section 1313(b) thereof, and the applicable Treasury Regulations,
and eovenants to take any and all actions within its power to ensure that
the interest on the Bonds will not become subject to taxation under the Code
and such Treasury Regulatlons.
7.04 County Auditor Certificate. The City Manager is authorized and directed to
certify a copy of this resolution, file the same with the County Auditor of
Anoka County and obtain a certification from such Auditor that the Bonds have
been entered upon the bond register maintained by the Auditor.
Adopted this 26th day of May, 1987.
Mayor Bruce G. NawroCki
Attest:
Robert S. Bocwinski, City Manager
b. Resolution No. 87-38; Being a Resolution Awarding the 5ale of, and Providing the
Form, Terms, Covenants and Directions for $2,230,000 General Obligation Refundin9
Improvement Bonds of 1987, Series A
It was noted that the fiscal fee schedule of 1984 will be used with the issuance
of these bonds. The fees of the new schedule were discussed relative to the old
fee schedule.
Motion by Peterson, second by Petkoff to waive the reading of the resolution there
being ample copies available to the public. Roll call: All ayes
RESOLUTION NO. B7-38
RESOLUTION AWARDING THE 5ALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND
DIRECTIONS FOR $2,230,000 GENERAL OBLIGATION REFUNDING BONDS OF 1987, SERIES A
BE'IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA
AS FOLLOWS:
Section 1. Award of Sale; Term of Bonds.
1.01 Award of Sale. The City Council (the "Council") of the City of Columbia
Heights, Minnesota (the "Issuer") hereby awards the sale of $2,230,000 General
Obligation Refunding Improvement Bonds of 1987, Series A (the "Bonds") to a
syndicate headed by The First National Bank of Saint Paul (the "Purchaser") as
Regular Council Meeting
May 26, 1987
page 14
the bidder offering the lowest net interest cost by its bid to purchase the
Bonds at a price of $2,203,240 plus accrued interest to the date of delivery,
the Bonds to bear interest at the rates per annum as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1988 5.00 ~ 1992 6.00
1989 5.25 1993 6.20
1990 5.50 1994 6.40
1991 5.75 1995 6.60
The City Manager of the Issuer is directed to return the good faith checks of the
unsuccessful bidders.
1.02 Contract for Sale. The Mayor and City Manager are hereby authorized and
directed to execute a contract for the sale of the Bonds on behalf of the Issuer
in accordance with the terms of the accepted bid. The good faith check of the
Purchaser shall be retained by the City Manager until the Bonds have been deli-
vered and the purchase price has been paid.
1.03 Maturities. The Issuer shall issue the Bonds in the aggregate principal
amount of $2,230,000 dated June 1, 1987 as fully registered bonds. The Bonds
shall be in denominations of $5,000 or any integral multiple thereof not exce-
eding the principal amount of a single maturity, shall be numbered from R-1 upwards
in order of issuance, and shall bear interest at the rates set forth above, payable
September 1, 1987 and semiannually thereafter on each March 1 and September 1, and
shall mature on March 1 in the years and amounts as follows:
Year Amount Year Amount
1988 $ 245,000 1992 $ 275,000
1989 260,000 1993 280,000
1990 265,000 1994 300,000
199I 275,000 1995 330,000
Bonds issued in exchange for Bonds shall be dated as of the date of authentication
thereof and shall bear interest from the date towhlch interest due and payable
has been paid in full on the Bonds surrendered, except that Bonds issued upon a
fransfer or exchange prior to the first interest payment date shall be dated
June 1, 1987.
i.04 Redemption. All Bonds maturing on or after March 1, 1992, shall be subject
to 'redemption and prior payment in whole or in part in inverse order of maturity
and by lot within maturity at the option of the issuer on March 1, 1991, and any
interest payment date thereafter at a price of the prlncipal amount thereof plus
accrued interest. Thirty days prior notice of redemption shall be given by mail
to the Registrar and to the registered owners of the Bonds, and notice of redemp-
tion will be publlshed in the manner provided by Minnesota Statutes, Chapter 475.
Upon notice having been so given, the Bonds or portlons of Bonds therein specified
shall be due and payable at the stated redemption date and price with accrued
interest to the redemption date, and upon funds for such payment being held on
or behalf of the Registrar for such payment on the specified redemption date,
interest thereon shall cease to accrue after such redemption date. No defect in
the mailed notice of redemption shall affect the validlty of the ca11 for redemption
Regular Council Meeting
May 26, 1987
page 15
of any Bond.
1.05 Registration. The Issuer shall appoint, and shall maintain, a bond registrar,
transfer agent and paying agent (the Registrar). The effect of registration and
the rights and duties of the Issuer and the Registrar with respect thereto shall
be as follows:
(a) Register. The Registrar shall keep at its principal corporate trust office
a bond register in which the Registrar shall provide for the registration of
ownership of Bonds and the registration of transfers and exchanges of Bonds
entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed
by the registered owner thereof or accompanied by a written instrument of
transfer, in 'form satisfactory to the Registrar, duly executed by the regis-
tared owner thereof or by an attorney duly authorized by the registered owner
in writing, the Registrar shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate
principal amount and maturity, as requested by the transferor. The Registrar may,
however, close the books for registration of any transfer after the fifteenth
day of the month precedln9 each interest payment date and untll such interest
payment date.
(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner
for exchange, the Registrar shall authenticate and deliver one or more new Bonds
of a like aggregate principal amount and maturity, as requested by the registered
owner or the owner's attorney duly authorized in writing.
(d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be
promptly cancelled by the Registrar and thereafter disposed of as directed by
the Issuer.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar
for transfer, the Registrar may refuse to transfer the same until it is satisfied
that the endorsement on such Bond or separate instrument of transfer i's legally
authorized. The Registrar shall incur no 1lability for its refusal, in 9ood raj. th,
to make transfers which it, in its judgement, deems improper or unauthorized.
(f) Persons Deemed Owners. The Issuer and the Registrar may treat the person
in whose name any Bond is at any time registered in the bond register as the
absolute owner of such Bond, whether such Bond shall be overdue or not, for the
purpose of receiving payment of, or on account of, the principal of and interest
on such Bond and for all other purposes, and all such payments so made to any
such registered owner or upon the owner's order shall be valid and effectual
to satisfy and discharge the liability of the Issuer upon such Bond to the extent
of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds, the Registrar
may impose a charge upon the owner thereof sufficient to reimburse the Registrar
for any tax, fee or other governmental charge required to be paid with respect
to such transfer or exchange.
(h) Hutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become
mutilated or be lost, stolen, or destroyed, the Registrar shal.1 deliver a new
Bond of like amount, number, maturity date and tenor in exchange and substitution
Regular Council Meeting
May 26, 1987
page 16
for and upon cancellation of any such, mutilated Bond or in 1leu of and in
substitution for any such Bond lost, stolen or destroyed, upon the payment
of the reasonable expenses and charges of the Registrar in connection there-
with; and, in the case of a Bond lost, stolen or destroyed, upon filing with
the Registrar of evidence satisfactory to it that such Bond was lost, stolen
or destroyed, and of the ownership thereof, and upon furnishing to the Registrar
of an appropriate bond or indemnity in form, substance and amount satisfactory
to it, in which both the Issuer and the Registrar shall be named as obligees.
All Bonds so surrendered to the Registrar shall be cancelled by it and evidence
of such cancellation shall be given to the Issuer. If the mutilated, lost,
stolen or destroyed Bond has already matured or been called for redemption in
accordance with its terms, it shall not be necessary to issue a new Bond prior
to payment.
1.06 Appointment.~f I~i~iallR~gistrar. The Issuer hereby appoints Marquette State
Bank Minneapolis, as the initial Registrar. The Mayor and City Manager are authori-
zed to execute and deliver, on behalf of the Issuer, a contract with Marquette Bank
Minneapolis, as Registrar. Upon merger or consolidation of the Registrar with
another corporation, if the resulting corporation is a bank or trust company autho~
rized to act as successor Registrar. The Issuer agrees to pay the reasonable and
customary charges of the Registrar for the services performed. The Issuer reserves
the right to remove any Registrar upon thirty (30) days' notice and upon the ap-
pointment of a successor Registrar, in which event the predecessor Registrar shall
deliver all cash and Bonds in its possession to the successor Registrar and shall
deliver the bond register to the successor Registrar. On or before each principal
or interest due date, without further order of this Council, the Clerk-Treasurer
of the Issuer shall transmit to the Registrar, from the Bond Fund described in
Section 5.O1 hereof, moneys sufficient for the payment of all principal and
interest then due.
1.~~'. ' of Payment. The Bonds shall be payable as to principal upon presen-
tatic>~: ~' '-~ main office of the Registrar. If the stated maturi'ty date for pay-
ment of p~;~.:ipal Of any Bond shall not be a business day, then such payment shall
be made on the next succeeding business day with the same force and effect as if
made on the stated maturity, and w!thout additional interest accruing thereon for
the period after such stated maturity. Interest on each Bond shall be payable by
check or draft of the Registrar mailed on the interest payment date or, if the
interest payment date is not a business day, then such payment shall be mailed 6n
the first business day following the interest payment date with the same force and
effect as l'f payment were made on the interest payment date, to the person who
was the registered holder thereof at the close of business on the 15th day (whether
or not a business day) of the calendar month next preceding the interest payment
date, ~t his or her address as it appears on the bond register. For purposes of
this resolution "business day" shall mean any day other than a Saturday, Sunday,
or other day on which banks in the city in which the principal office of the
Registrar is located are authorized to be closed.
Section 2. Form of the Bonds.
2.01 The Bonds shall be in substantially the following form, with the necessary
variations as to number, CUSIP Number, rate of interest and date of maturity,
the blanks .to be properly filled in:
UNITED STATES OF AMERiCAi
STATE OF MINNESOTA
Regular Council Heeting
Hay 26, 1987
page 17
No. R-
ANOKA COUNTY
CITY OF COLUHBIA HEIGHTS
GENERAL OBLIGATION REFUNDING IHPROVEHENT BOND OF 1987, SERIES A
Rate Haturity Nominal Date CUSIP
of Original Issue
June 1, 1987
The City of Columbia Heights, Hinnesota (the "Issuer"), for value received, hereby
certifies that it is indebted and hereby promises to pay to
or registered assigns, the principal sum of
dollars ($ ) on the maturity date specified above, upon the presentation
and surrender hereof, and to pay to the registered owner hereof interest on such
principal sum at the interest rate specified above from June 1, 1987, or the most
recent interest payment date to which interest has been Paid or duly provided for
as specified below, on Harch 1 and September 1 of each year, commencing September
1, 1987, until such principal sum is paid. Principal and the redemption price are
payable in lawful money of the United States of America at
as Registrar, Transfer Agent and Paying Agent, in , Hinnesota, or at
the offices of such successor agent as the Issuer may designate upon 30 days notice
to the registered owners at their registered addressed (the "Registrar"). Interest
shall be paid on each Hatch 1 and September 1 by check or draft mailed by first-class
mail, postage prepaid, on the interest payment date, or if the interest payment date
is not a Business Day, then on the first Business Day thereafter, to the person in
whose name this Bond is registered at the close of business on the 15th day of the
month preceding such interest payment date (whether or not a Business Day) at his
or her address set forth on the bond register maintained by the Registrar. Any such
interest not punctual]y paid or provided for will be paid to the person in whose
name this Bond is registered at the close of business on a special record date
established by the Registrar for the payment of such defaulted interest. "Business
Day'~ shall mean any day other than a Saturday, Sunday, or other day when banks
located in the city in which the principal office of the Registrar is located are
authorized to be closed.
Bonds of this Series maturing in the years 1988 through 1991 are not subject to
redemption prior to maturity. The Bonds of this series maturing on or after March
1, 1992, are subject to redemption at thA option of the Issuer in whole or in
part in inverse order of maturity and by lot within a maturity, on March 1, 1991
and any interest payment thereafter at a price equal to the principal amount
thereof and accrued interest. Thirty days' prior notice of redemption will be 91yen
by mail to the Registrar and to the registered owners, and notice of redemption
will be published in the manner provided by Hinnesota Statutes, Chapter 475. N°
defect in mailed notice will affect the validity of the call for redemption.
This B~nd is one of a series of Bonds in the aggregate principal amount of Two
Million Two Hundred Thirty Thousand Dollars ($2,230,000), all of llke date and
tenor except for number, interest rate, denomination, date of maturity and redemp-
tion privilege, and is issued for the purpose of providing funds to refund the
outstanding principal amount of the Issuer's General Obligation Refunding Bonds
of outstanding principal amount of the Issuer's General Obligation Refundin9 Bonds
Regular Council Meeting
May 26, 1987
page 18
of 1985, Series B, and is issued pursuant to an authorizing resolution (the
"Resolution") duly adopted by the Issuer on May 26, 1987, and pursuant to and
in full conformity with the City Charter of the Issuer and the Constitution
and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475.
The Bonds of this series are payable primarily from the Permanent Improvement
Fund Bonds of 1982 Debt Service Account in the I~suer's Sinking Fund. All tax-
able property within the Issuer is subject to the levy of ad valorem taxes
required by law to be levied and extended if needed for this purpose, without
limitation of rate or amount. The issuance of this bond does not cause the
indebtedness of the Issuer to exceed any constitutional, statutory, or charter
limitation thereon. The Bonds of this series are lssuable only as fully registered
bonds without coupons in denominations of $5,000 or any integral multiple thereof
not exceeding the principal amount maturing in any one year.
As provided in the Resolution, and subject to certain limitations set forth therein,
this Bond is transferable upon the books of the Issuer kept for that purpose at
the principal office of the Registrar, by the registered owner hereof in person
or by such owner's attorney duly authorized in writing, upon surrender of this
Bond together with a written instrument of transfer satisfactory to the Registrar,
duly executed by the registered owner or such owner's duly authorized attorney;
and may also be exchanged for Bonds of other authorized denominations. Upon such
transfer or exchange and the payment of any tax, fee or governmental charge
required to be paid by the Issuer or the Registrar with respect to such transfer,
there will be issued in the name of the transferee a new Bond or Bonds of the same
aggregate principal amount as the surrendered Bond, bearing interest at the same
rate and maturing on the same date.
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 exist, to
happen and to be performed in order to make this Bond a valid and binding general
obligation of the Issuer according to its terms, have been done, do exist have
happened and have been performed in due form, time and manner as So required.
This Bond shall not be valid or become obligatory for any purpose until the
Authentication Certificate hereon shall have been manually signed by a person
authorized to sign on behalf of the Registrar.
IN WITNESS WHEREOF, the City of Columbia Heights, Minnesota has caused this
Bond to be executed with the facsimile signatures of its Mayor and City Manager
all as of the Nominal Date of Original Issue specified above.
Dated:
(Facsimile)
City Manager
CITY OF COLUMBIA HEIGHTS,
MINNESOTA
BY (Facsimile)
Mayor
Certification of Authentication
This is one of the Bonds described in the within mentioned Resolution.
Bond Registrar
By
Authorized Signature
Regular Council Meeting
May 26, 1987
page 19
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please typewrite or print name and address of Transferee.
include information for all joint owners if the Bonds are held by joint account.)
the within Bond and all rights thereunder, and hereby irrevocably constitutes and
appoints attorney to transfer the within Bond on the books
kept for registration thereof, with full power of substitution in the premises.
Dated:
Signature Guaranteed by:
Signature(s) must be guaranteed by a
commercial bank or trust company or
by a brokerage firm having member-
ship in one of the major stock
exchanges.
Notice: The signature(s) on this
assignment must correspond with the
name(s) which appear on the face of
this Bond in every particular, without
alteration or any change whatever.
Please insert Social Security Number
or Other Identifying Number of
Assignee
(Form of Certificate)
CERTIFICATE AS TO LEGAL OPINION
I, Robert S. Bocwinski, City Manager of the City of Columbia Heights, Minnesota,
hereby certify that except for the date llne, the above is a full, true and com-
pared copy of the legal opinion of Holmes & Graven, Chartered, of Minneapolis,
Minnesota, which was delivered to me upon delivery of the bonds and is now on
file in my office.
(Facsimile)
City Manager
Section 3. Execution and Delivery. The Bonds shall be executed on behalf of the
Issuer by the signatures of the Mayor and City Manager of the Issuer, and shall be
sealed with the official corporate seal of the Issuer; provided that said signa-
tures and the corporate seal may be printed, engraved, or lithographed facsimiles
thereof. In case any officer whose signature, or a facsimile of whose signature,
shall appear on the Bonds shall cease to be such officer before the delivery of
any Bond, such signature or facsimile shall nevertheless be valid and sufficient
for all purposes, the same as if such officer had remained in office until delivery.
Notwithstanding such execution, no Bond shall be va]id or obligatory for any pur-
pose or entitled to any security or benefit under this reso]utlon unless and until.
a certificate of authentication on such Bond has been duly executed by the manual
signature of an authorized representative of the Registrar. Certificates of authe-
ntication on differen~ Bonds need not be signed by the same representative. The
executed certificate of authentication on each Bond shall be conclusive evidence
that it has been so executed and authenticated, and upon receipt of the approving
legal Opinion of Holmes & Graven, Chartered, they shall be delivered by the City
Manager to the Purchaser thereof upon payment of the purchase price in accordance
Regular Council Meeting
May 26, 1987
page 20
with the contract of sale to be made and executed, and the purchaser shall not be
obligated to see to the application of the purchase price.
Section 4. Refundin~ of Prior Issue.
4.01. Application of Proceeds. The proceeds of the Bonds are hereby appropriated
as follows: (al an amount sufficient to redeem the outstanding balance of the
Issuer's General Obligation Refunding Bonds of 1985, Series B (the "Prior Issue")
(currently estimated to be $2,195,000) shall be deposited in United States Trea-
sury Obligations maturing on or before September 1, 1987, and shall be applied to
the redemption of the outstanding principal balance of the Prior Issue ($2,195,O00)
on September 1, 1987; and(b) an amount equal to the costs of issuing the Bonds
(currently estimated to be $10,000) shall be applied to the payment thereof.
Section 5. Bond Fund, Account, Pledges, Appropriations.
5.01 Bond Fund. The Issuer's Permanent Improvement Fund Bonds of 1982 Debt Service
Account in the Issuer's Sinking Fund (the "Debt Service Account") created on the
official records of the Issuer by Resolution No. 82-55, adopted on October 25, 1982,
shall continue to be held and administered by the Clerk-Treasurer, deposited in one
or more banks duly qualified as depositories of funds of the Issuer, separate from
all other bank accounts, and invested and reinvested in accordance with resolutions
of the Issuer and Minnesota Statutes, Section 475.66, and shall be used only to pay
principal and interest and expenses of payment when due on general obligation impro-
vement bonds of the Issuer made payable therefrom, including the Bonds, until all
such principal and interest and expenses have been fully paid and the Issuer has
been fully reimbursed from special assessments as provided in Resolution No. 82-55;
provided that if any payment falls due when the balance in the Debt Service Account
is insufficient to pay it, the deficiency shall be paid out of any other funds of
the Issuer available for that purpose, and advances so made may be repaid from the
Debt Service Account when a sufficient balance is available therein.
5.02 Rebate Account.
(al There is hereby created an additional account in the Issuer's Sinking Fund
designated the "Series 1987 A Refunding Improvement Bonds Rebate Account'l.
(bi No later than one year following 'the date of the closing on the Bonds, on
each anniversary thereof, and on the date of retirement of the last outstanding
BOnd, the Issuer shall calculate or cause to be calculated (ii the amount to
be transferred to the Rebate Account, if any, necessary to increase the amount
in the Rebate Account to the amount of Excess Earnings(as defined below) for the
preceding twelve month period, or (ii) the amount to be transferred from the
Rebate Account, if any, necessary to reduce the amount in the Rebate Account to
the amount of the Excess Earnings for such period; and the Issuer shall deposit
such amount in the Rebate Fund no later than the fifteenth (15th} day of the
same month.
(c) The Issuer shall pay to the United States of America from monies on deposlt
in the Rebate Account the Excess Earnings on the fifth anniversary of the date
of issuance of the Bonds, and on such date in each fifth year thereafter.
(d) All amounts in the Rebate Account shall be used and withdrawn by the IsSuer
as required above solely for the purposes set forth in (bi and (c) above. In the
Regular Council Meeting
May 26, 1987
page 2]
I
event that the amount in the Rebate Account is for any reason insufficient
to pay to the United States the amounts due as calculated in this Section,
the Issuer shall transfer to the Rebate Account the amount of such deficiency.
(e) Investment earnings on amounts held in the Rebate Account Shall be retained
in the Rebate Account.
(f) For purposes of this resolution, "Excess Earnings" shall mean for any given
period (1) the aggregate amount of interest, profits and other income earned in
such period from the investment of amounts in the Bond Fund, and the Investment
of Bond proceeds in the Escrow Fund, less (2) the aggregate amount which would
have been earned in such period if such investments had been at the yield on
the Bonds, calculated pursuant to Section 148 of the Code compounded semi-
annually, plus (3) investment earnings allocable to the difference between
(1) and (2) above. The amount described in clause (1) of this definition shall
take into account any gain or loss realized on the disposition of investment
securities credited to any such fund or account. On the date of retirement of
the last Bond remaining unpaid, the amount described in clause (1) of this defi-
nition shall include any unrealized gain or loss as of such date. Excess Earnings
shall not include any amount earned on the Debt Service Account if ([) the gross
earnings on such account for the bond year is less than $100,000, and (ii) the
Debt Service Account is depleted at least once in such bond year except for a
carryover amount which does not exceed the greater of one year's earnings on
the debt service account or one-twelfth of annual debt service on the Bonds.
5.03 Appropriations. The following sums are hereby appropriated and shall be credited
as received to the Debt Service Account:
(a) From the proceeds of the Bonds: (i) the accrued interest paid by the Purchaser
from the date of issue to the date of delivery thereof; and (ii) in the amount of
proceeds in excess of $3,240.00 received from the sale of the Bonds.
(b) All income and gain from the investment of the Debt Service Account (to
which all loss from such investment shall be charged) other than Excess Earnings
required to be deposited in the Rebate Account.
(c) All special assessments paid to the Issuer pledged to the payment of the
Prior Issue pursuant to Resolution No. 85-43 of the Issuer adopted on September
9, 1985.
(d) Any sums collected from taxes extended and assessed in connection with the
Bonds.
5.Oh ~ledge of Full Faith and Credit. The full faith and credit and taxing powers of
the Issuer are irrevocably pledged for the prompt and full payment of the prlncipal
of and interest on the Bonds and such other general obligation indebtedness as may
be made payable from the Debt Service Account, as such principal and interest res-
pectively become due.
5.05. Revenues Sufficient. It is estimated that the revenues pledged for the payment
of the Bonds wi11 produce sums in an amount not less than 5% in excess of the amounts
needed to meet when due payments of principal of and interest on the Bonds, and
accordingly no tax Is levied by this Resolution for that purpose.
5.06. The Clerk-Treasurer of the IssUer is directed to keep on file in his office
Regular Councll Meeting
Hay 26, 1987
page 22
a tabulation of the dates and amounts of the principal and interest payments
to become due and amounts of the principal and interest payments to become due
on all bonds payable from the Debt Service Account.
Section 6. Defeasance. When all of the Bonds have been discharged as provided in
this Section 6, a]l pledges, covenants and other rights granted by this resolution
to the holders of the Bonds shall cease. The Issuer may discharge its obligations
with respect to any Bonds which are due on any date by irrevocably despositing with
the 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 dis-
charged by depositing with the Registrar a sum sufficient for the payment thereof
in full with interest accrued to the date of such deposit. The Issuer may also
discharge its obligations with respect to any prepayable Bonds called for redemp-
tion on any date when they are prepayab]e according to their terms, by depositing
with the Registrar on or before that date a sum sufficient for the payment thereof
in full, provided that notice of the redemption thereof has been duly given as pro-
vided in Section 1.04 hereof. The Issuer may also at any time discharge its obllta-
tions 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 bank qualified by law as an escrow agent for this purpose, cash or securities
which are general obligations of the United States or securities of United States
agencies which are authorized by law to be so deposited, bearing interest payable
at such time and at such rates and maturing on such dates as shall be required,
without reinvestment, to pay all principal and interest to become due thereon to
maturity or, if notice or redemption as herein required has been duly provided for,
to such earlier redemption date.
Section 7. Non-Arbitra~e Covenants; Certification of Proceedings; General
Covenants.
7.01 Non-Ar.bitrage Covenants.
(al The Issuer covenants and agrees with the Purchaser and owners from time to
time of the Bonds that the investments of gross proceeds of the Bonds, including
the investment of any revenues pledged to the Bonds which are considered proceeds
under the applicable regulations, and accumulated sinking funds, if any, shall
be limited as to amount and yield in such manner that the Bonds shall not be
arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code
of 1986, as amended, and applicable Treasury Regulations. On the basis of the
existing facts, estimates and circumstances, including the foregoing covenant,
the Issuer hereby certifies that it is not expected that the proceeds of the
Bonds will be used in such manner as to cause the Bonds to be arbitrage bonds
under Section 148 and the applicable Treasury Regulations. The Mayor and the
City Manager shall furnish an arbitrage certificate to the Purchaser embracing
or based on the foregoing certification at the time of delivery of the Bonds to
the Purchaser.
(bi The Issuer further convenants to the United States of America any rebate
payments required to be made pursuant to Section 148 of the Code as and at
the times provided in Section 5.02 hereof.
7.02 Certification of?r~ceedin~s. The staff and officers of the Issuer are hereby
authorized and directed to prepare and furnish to the Purchaser and to Holmes &
Graven, Chartered, Bond Counsel, certified copies of all proceedings and records
of the Issuer, and such other affidavits, certificates and information as may be
Regular Council Meeting
May 26, 1987
page 23
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 Issuer as to the facts recited therein.
7.03. General Covenant. The Issuer covenants and agrees with the holders from
time to time of the Bonds that it will not take or permit to be taken by any of
its officers, employees or agents any action which would cause the interest on
the Bonds to become subject to taxation under the Internal Revenue Code of 1954,
as in effect immediately prior to the enactment of the Tax Reform Act of 1986,
(the "Act") and read as including certain provisions of the Act as required by
Section 1313(b) thereof, and the applicable Treasury Regulations, and covenants
to take any and all actions within its powers to ensure that the interest on the
Bonds will not become subject to taxation under the Code and such Treasury Regu-
lations.
7.O4 County Auditor Certificate. The City Manager is authorized and directed to
certify a copy of this resolution, file the same with the County Auditor of Anoka
County and obtain a certification from such Auditor that the Bonds have been entered
upon the bond register maintained by the Auditor.
Adopted this 26th day of May, 1987.
Attest:
Mayor
City Manager
c. Resolution No. 87-39; Being a Resolution Calling for a Public Hearing
Motion by Petkoff, second by Peterson to waive the reading of the resolution there
being ample copies available to the public. Roll call: All ayes
Councilmember Petkoff introduced the following resolution, the reading of which was
dispensed with by unanimous consent, and moved its adoption:
CITY OF COLUMBIA HEIGHTS
COUNTY OF ANOKA
STATE OF MINNESOTA
RESOLUTION NO. 87-39
RESOLUTION CALLING FOR A PUBLIC HEARING ON THE MODIFICATION BY THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS OF THE DOWN-
TOWN CBD REVITALIZATION PLAN FOR THE REDEVELOPMENT PROJECT; AND THE ESTABLISHMENT
OF THE SULLIVAN LAKE TAX INCREMENT FINANCING DISTRICT AND THE ADOPTION AND APPROVAL
OF THE TAX INCREMENT FINANCING PLAN RELATING THERETO, LOCATED WITHIN THE REDEVELOP-
MENT PROJECT
BE IT RESOLVED by the City Council (the "Council") of the City of Columbia Heights,
Minnesota (the "City"), as follows:
Section 1: Public Hearing. This Council shall meet on Monday, June 15, 1987, at ap-
proximately 7:30 p.m., to hold a public hearing on the following matters: (al the
Regular Council Meeting
May 26, 1987
page 24
modification by enlargement of the geographic.project area of the Redevelopment
Project by the Housing and Redevelopment Authority in and for the City, and the
establishment by the Authority of the Sullivan Lake Tax Increment Financing
District located within the Redevelopment Project, (bi the modification of the
Downtown CBD Revitalization Plan for the Redevelopment Project, (¢) the adoption
and approval of the Tax Increment Financing Plan for the Sullivan Lake Tax Incre-
ment Financing District within the Redevelopment Project all pursuant to and in
accordance with Minnesota Statutes, Sections 462.4ll to 462.716, inclusive, as
amended, and Minnesota Statutes, Sections 273.71 to 273.78, inclusive, as amended.
Section 2. Notice of Hearipg; Filing of Plans. The Clerk-Treasurer is authorized
and directed to cause notice of the hearing, substantially in the form attached
hereto as Exhibit A, to be given as required by law, to place a copy of the pro-
posed Modified Downtown CBD Revitalization Plan and proposed Tax Increment Finan-
cing Plan on file in the City Clerk-Treasurer's office and to make such plans
available for inspection by the public, commencing June 1, 1987.
Adopted by the City Council of the City of Columbia Heights, Minnesota on May
26, 1987.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Paterson, and upon vote being taken thereon, the following voted
in favor thereof:
Nawrocki, Paul'son, Petkoff, Carlson, Peterson
and the following voted against the same:
None
whereupon said resolution was declared duly passed and adopted, and was signed by
the Mayor and attested to by the City Clerk-Treasurer.
Mayor
ATTEST:
City Clerk-Treasurer
EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY OF COLUHBIA HEIGHTS
COUNTY OF ANOKA
STATE OF MINNESOTA
NOTICE IS HEREBY GIVEN that the Council of the City of Columbia Heights will hold
a public hearing on Monday, June 15, 1987, at approximately 7:30 p.m., relating to
the modification by the Authority to reflect an enlargement of the geographic project
area of the Redevelopment Project (the "Project") and the establishment of the
Sullivan Lake Tax Increment Financing District located within the Project pursuant
to Minnesota Statutes, Sections 462.411 to 462.716, inclusive, as amended, and
Minnesota Statutes, Sections 273.7i to 273.78, inclusive, as amended. The hearing
is also relative to the proposed modification of the Downtown CBD Revitalization Plan
for the Project and the proposed adoption of the Tax Increment Financing Plan for
Columbia Heights Sullivan Lake Tax Increment Financing District, copies of which
Regular Council
I,tay 26, 1987
page 25
Meeting
will be on file and available for public inspection in the
office not later than June 1, 1987. The property proposed
the Project is legally described as follows:
ADDITIONAL PROPERTY TO BE INCLUDED
WITHIN THE REDEVELOPMENT PROJECT
PIN #~s
25-30-24-22-0066
25-30-2~-23-0001
25-30-24-23-0003
25-30-24-23-0006
25-30-24-23-0010
25-30-24-23-0017
25-30-24-23-0018
25-30-24-23-0019
25-30-24-23-0020
25-30-24-23-0065
25-30-24-23-0104
25-30-24-32-0001
25-30-24-32-0002
25-30-24-32-0003
25-30-24-32-000~
25-30-24-32-0061
'25=30-24-32-0062
25-30-24-33-0043
25-30-24-33-004~
25-30-24-33-0045
25-30-24-33=00~6
25-30-24-33-0042
25-30-24-33-004~
25-30-24-33-00~9
25-30-24-33-0050
25-30-24-33-005!
25-30-24-33-0053'
25-30-24-33-0064
35-30-24-11-0007
35-30-24-1i-0008
'35-30-24-]I-0009
35-30-24-11-0010
35-30-24-11-0011
35-30-24-11-0083
35-30-24-11-0084
36-30-24-22-0037
36-30-24-22-oo39
36-30-24-22-oo4o
36-30-24-22-0041-
36-30-24-22-0042
36-30-24-22-0043
36-30-24-22-0044
36-30-24-22-0045
36-30-24-22-0046
36-30-24-22-0047
36-30-24-22-0050
36-30-24-22-0052
'' PIN #'s
25-30-24-33-0065
25-30-24-33-0066
26-30-24-11-0003
26-30-24-11-0004
26-30-24-11-0006
26-30-24-11-0007
26-30-24-1]-0008
26-30-24-]]-0009
26-30-24-11-00]]
26-30-24-11-0012
26-30-24-11-0014
26-30-24-11-0016
26-30-24-]1-0017
26-30-24-{2-0001
26-30-24-]2-0021
26-30-24-12-0022
26-30-24-12-0023
26-30-24-12-0024
26-30-24-12-0025
26-30-24-12-0026
26-30=24-12-0027
26-30-24-12-0028
26-30-24-12-0047
26-30-24-]2-0049
26-30-24-12-00~1
26-30-24-12-00~2'
26-30-24-12-0053
26-30-24-12-0054"
35-30-24-32-0036
35-30-24-32-0037
35-30-24-32-0088
35-30-24-32-0090
35-30-24-32-0093
35-30-24-32-0095
35-30-24-32-0097
35-30-24-32-0098
35-30-24-32-0099
35-30=24-32=0100
35-30-24-32-0102
35=30-24=32=0103
35-30-24=32=0002
35=3O-24=32=0003
35-30=24=32=00O4
35-30-24-32=0005
35=30=24-32=0008
35-30-24-32-0009
C1erk-Treasurer~:s
to be located within
PIN #'s
26-30-24-12-0057
26-30-24-12-0058
26-30-24-12-0060
26-30-24-12-0061
· 26-30-24-12-0062
26-30-24-12-0065
26-30-24-12-0066
26-30-24-12-0067
'26-30-24-12-0070
26-30-24-12-0071
26-30-24-1&-0004
'26-30-24-14-0005
26-30-24~14-0010
26-30-24-14-0011
26-30-24-14-0012
26-30-24-14-0013
26-30-24-14-0014
26-30-24-14-0016
'26-30-24-14-0139
26-30-24-14-0140
35-30-24-11-0001
35-30-24-11-0002
35-30-24-11-0003
35-30-24-11-0004
35-30-24-11-0006'
35-30-24-34-0015
35-30-24-34-0016
35-30-2~-34-0017
35-30-24-34-0020.
35-30-24-34-0021
35-30-24-34=0022
35-30-24-34-0028
35-30-24-34-0031
35-30-24-34-0032
35-30-24-41-0090
35-30-24-41=0091
35-30-24-41-0093
35-30-24-41-0094
35=30-24-41-0095
35-30=24=41=0096
35,30=24-41=0097
35=30=24=41=0099
Regu I ar
Play 26,
page 26
Counc i ]
1987
Meeting
PIN #'s
36-30-2~-22-0107
36-30-2a-22-0108
36-30-2a-22-0111
36-30-24-22-0113
36-30-24-22-0114
36-30-2a-22-0115
36-30-2a-22-0117
36-30-2~-22-0153
36-30-2a-23-0083
36-3D-2~-24-0017
36-30-24-24-0018
36-3o-2a,2a-oo19
36-3o-2~-2~-oo2o
36-3o-2~-2a-oo21
36-3o-2A-2~-oo22
36-3o-2~-24-oo23
36-3o-2a-2a-oo24
36-3o-24-24-oo25
36-3o-24-2~-oo26
36-3o-2~-31-oo26
36-3o-2~-31-oo27
36-3o-2~-31-oo28
36-3o-2~-31-oo29
36-3o-2a-31-oo3o
36-3o-24-31-oo31
36-3o-2a-31-oo32
36=3o-24-31-oo33
35-3o-2~-32-oo27
35-3o-2~-32-oo28
35-3o-2~-32-oo29
35-30-24-32=0030
35-3o-24-32-oo31
35-30-24-32-0032
35-30-24-32-0033
35-30-24-32-0034
35-30-24-32-0035
35-30-24-43-0001
35-30-24-43-0002
35-30-24-43-0003
35-30-24-43-0004
35-30-24-43-0005
35-30-24-43-0006
35-30-24-43-0007
35-30-24-63-0008
35-3O-24-43-OOO9
35-30-24-43-0010
35-30-24-43-0011
35-30-24-43-0013
35-30-24-43-0014
35-30-24-43-0015
35-30-24-43-0016
35-30-24-43-0017
35-30-24-43-0018
35-30-24-43-0019
PIN #'$
35-30-24-32-0035
35-30-24-32-0061
35-30-24-32-0062
35-30-24-32-0063
35-30-24-32-0064
35-3O-24-33-OO65
35-30-24-33-0066
35-30-24-33-0076
35-30-24-33-OO78
35-30-24-33-0079
35-30-24-33-0080
35-30-24-33-0092
35-30-24-33-0093
35-30-24-33-0094
35-30-24-33-0095
35-30-24=33-0096
35-30-24-33-0o97
35-30-24-33-0038
35-30-24-33-0099
35-30-24-33-0100
35-30-24-33-0101
35-30-24-33-0102
35-30-24-33-0103
35-30-24-33-0104
35-30-24-33-0105
35-30-24-33-0106
35-30-24-34-0002
35-30-24-34-0OO3
35-30-24-34-00O4
35-3O-24-34-0008
35-30-24-34-0009
35-30-24-34~0010
35-30-24-34-0011
35-30-24-34-0012
35-30-24-34-0013
35-30-24-'34-0014
35-30-24-43-0020
35-30-24-43-0021
35-30-24-43-0022
35-30-24-43-0023
35-30-24-43-0028
35-30-24-43-0029
35-30-24-43-0030
35-30-24-43-003!
35-30-24-43-0032
35-30-24-43-003~
35-30-24-43-0034
35-30-24-43-0035
35-30-24-43-0038
35-30-24-43-0039
35-30-24-43-0040
35-30-24-43-004!
35-30=24-43=0044
35-30-24-43-0047
PIN #'s
35-3o-24-~!-o!oo
35-30-24-41-0101
35-30-24-41-0102
35-30-24-41-0103
.35-30-24-41-0104
35-30-24-41-0105
35-30-24-41-0106
35-30-24-41-0108
35-30-24-41-0109
35-30-24-41-0110
35-30-24-41-0111
35-30-24-41-0116
35-30-24-41-0117
35-30-24-41-0118
35-30-24-41-0119
35-30-24-41-0120
35-30-24-41-0121
35-30-24-41-0122
35-30-24-41-0123
35-30-24-41-0124
35-30-24-41-0125
35-30-24;41-0126
35-30-24-41-0127
35-30-24-41-0128
35-30-24-41-0129
35-30-24-41-0130
35-30-24-41-0131
35-30-24-41-0132
35-30-24-41-0133
35-30-24-41-0134
35-30-24-41-0135
35-30-24-41-0139
35-30-24-41-0140
35-30-24-41-0141
35-30-24-41-0142
35-30-24-43-0048
35-30-24-43-0049
35-30-24-43-0050
35-30-24-43-0051
35-30-24-43=0053
35-30-24-43-0056
35-30=24=44=0012
35-30-24-44-0013
35-30-24-44-0014
35-30-24-44-00!5
35-30-24-44-0016
35-30-24-44-00!7
35-30-24-44-0018
35-30-24-44-0019
35-30-24-44-0020
35-30-24-44-0o21
35-30-24-44-0012
Regular Council Meeting
May 26, 1987
page 27
PIN #'s
PIN #'s
PIN #'s
35-30-24-44-0024
35-30-24-44-0026
35-30-24-44-0027
35-30-24-44-0028
35-30-24-44-0029
35-30-24-440030
35-30-24-44-0031
35-30-24-44-0032
35-30-24-44-0033
35-30-24-44-0034
35-30-24-44-0143
35-30-24-44-OI44
' 35-30-24-44-0145
35-30-24-44-0146
35-30-24-44-0147
35=30-24-44-0148
35-30-24-44-0149
35-30-24-44-0150
35-30-24-44-0151
PROPERTY TO BE INCLUDED WITHIN THE SULLIVAN LAKE TAX INCREMENT FINANCING DISTRICT
PIN #'s PIN #'s' PIN #'s
26-30-24-12-O021
26-30-24-12-0022
26-30-24-12-0023
26-30-24-12-O024
26-30-24-12-0025
26-30-24-12-0026
26-30-24-12-0027
26-30-24-12-OO28
26-30-24-12-OO65
Further information relating to the above parcels may be obtained in the office
of the Clerk-Treasurer.
Dated May 26, 1987.
d. Resolution Aut'horizing the Housing and Redevelopment Authority in and for the
City of Columbia Heights to proceed with Execution of a Contract for Private
Redevelopment By and Between the Housing and Redevelopment Authority and the
Rottlund Company, Inc.
Mayor Nawrocki felt the action being authorized in.this resolution was premature
and that the hearing set for June 15th should be completed before this authori-
zation is considered. He also noted that this document excludes park dedication
funds.
Motion by Carlson, second by Paulson to table further action on this resolution
until after the hearing on June 15th. Roll call: All ayes
e. Financial Consultant Contract with Miller & Schroeder, Inc.
The fee schedule attached to this contract Was discussed.
Motion by Peterson, second by Petkoff to authorize the Mayor and City Manager to
execute a financial consultant contractwith Miller & Schroeder Financi'al, Inc.
and that such contract shall apply to any bond issues awarded after this date.
Roll call: All ayes
f. First Reading of Ordinance No. ~ Being an Ordinance Authorizing Issuance
of $1,100,000 General Obligation Taxable Tax Increment Bonds of 1987, Series A
Motion by Petkoff, second by Peterson to waive the reading of the ordinance there
being ample copies available to the public. Roll call: All ayes
ORDINANCE NO. ]~ES-/I S~
AUTHORIZING ISSUANCE OF $1,100,000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS
OF 1987, SERIES A
The City of Columbia Helghts does ordain:
1. Bond Purpose and Authorlzatlon Sale.
Regular Council Meeting
May 26, 1987
page 28
a. Pursuant to the provisions of Minnesota Statutes, Chapter q75, the City of
Columbia Heights (the "City") is authorized to issue general obllgation tax
increment bonds for the purpose of financing public redevelopment costs of
the redevelopment project established by The Housing and Redevelopment Autho-
rity in and for the City of Columbia Heights, Minnesota, designated as the
'Downtown C.B.D. Revitalization Project (the "Project").
b. It is hereby found, determined and declared that the financing of certain
public redevelopment costs of the Project is necessary and desirable and in
the best interest of the public health and welfare, and that the City should
issue, and the City hereby authorizes and directs the issuance and sale of,
its General Obligatlon Taxable Tax Increment Bonds of 1987, Series A In the
principal amount of $1,1OO,O00 (the "Bonds").
2. Sale. This City Council (the "Council") shall meet at the time and place specified
in the forms of Official Notice of Bond Sale for the Bonds attached hereto as Exhibit
B for the purpose of opening and considering sealed bids for, and awarding the Sale
of the Bonds.
3. Notice of Bond Sale. The Council hereby authorizes and directs the City Manager
or his designee to cause to be published the notice of advertisement for sealed bids
for the Bonds in the officlal newspaper of the City, and in Commercial West, at
Minneapolis, Minnesota, in substantially the form attached hereto as Exhibit B. Each
and all of the terms and provisions set forth in such notices are adopted and con-
firmed as the terms and conditions of the Bonds and the sale thereof.
4. Official Terms of OfferinQ. The Offlcial Terms of Offering of the Bonds in sub-
stantially the form attached hereto as Exhibit A shall constitute the terms and con-
ditions for the sale of the Bonds, and the Council hereby authorizes the incorpora-
tion of such terms and.conditions in the material to be distributed to prospective
bidders for the Bonds.
Information and bidding forms may be obtained from the undersigned or from Miller
Schroeder Financial, Inc., 7900 Xerxes Avenue South, Minneapolis, Minnesota 55440;
612-831-1500, financial consultants to the City.
6. This ordinance shall be in ful'l force and effect from and after 30 days after
its passage.
First Reading: May 26, 1987 hCJ
The second reading of Ordinance No.~ and the public hearing will be held on
a Special Council Meeting on June 15, 1987.
Communications
The City Manager noted that a petition had been received bearing three signatures
stating opposition to pidgeons being kept at a home in the area. Copies of this
petition had not been received by the Council. The City Manager's Administrative
Assistant will distribute copies of this petition to the Council and the item
will be on the agenda of the next Regular Council meeting.
Regular Council Meeting
May 26, 1987
page 29
Old Business
Air Conditioni.ng. Units at John P. Murzyn Hall
Complaints have been received regarding the noise eminating from the air conditioning
units located outside of Murzyn Hall. Several attempts have been made to solve this
noise problem. At the present time these corrections have not brought the units into
compliance with the noise standards which are acceptable. The Mayor requested this
problem continue to be addressed and be an agenda item at each ensuing Council meeting
until a solutlon is found.
New Business
Authorization for Removal and Installation of Emergency Equipment on Police Squad
Cars
Bids 'had been received for this work and they were discussed by the Council. The
City Manager noted that seven other cities had been contacted regarding work done
by the low bidder. The Mayor noted that it would be a cost savings for the City
staff to do this work. Mayor Nawrocki requested that careful records be kept on
this work and the Council receive an informal report.
Motion by Carlson, second by Paulson to reject the bids received and the work
be done in the City Shop. Rol1 call: All ayes
Additional Appropriation fo~ M. urzyn Hall Addition/Renovation
Motion by Paulsoni second by Petkoff to table this item for additional information.
Roll call: Ail ayes
Other New Business
Fige Foot Easement Vacation
The property owner at 3856 Quincy Street requested the City to vacate part of
an easement or right-of-way for five feet. The City Attorney had spoken to the
title company regarding this situation and they advised him they would close on
this property if the City were to grant the easement. The City Attorney noted that
the roadway adjacent to this property, 39th Avenue, is a State Aid Street and if
a five foot easement were granted that State Aid funds could be jeopardized for
use if the width were decreased. PresentlY, the street is sixty feet wide which is
the minimum acceptable. No Council action was taken as this was an informational
item.
Retaining Wall at 4458 Stinson Boulevard
The City Manager advised that a stop order has been issued on the construction of
a retaining wall at 4458 Stinson Boulevard. A portion of the wall is being built
on the right-of-way. He felt a permit should be taken out for the construction,
He suggested that the wall be allowed to remain and be finished but it be author-
ized on a contingent basis as it is partially on the right-of-way. The City Mana-
ger requested members of the Council view the wall.
Banners on Central Avenue in Downtown Redevelopment Area
The City Manager had received a memo from the Community Development Director, Todd
Stutz, requesting authorlzatlon to use Some funds to replace some of the banners
in the Downtown Redevelopment Area. He is requesting permission to purchase eleven
banners for a total cost of $q,2t8.22. It was noted that the Bicentennial Commission
has authorized funds totalling $1,174.36 for this purpose. Stutz recommended the
balance of the costs come from the Downtown Improvement Fund. Mayor Nawrocki re-
quested that some other type of fabric be looked for these banners as the banners
Regular Council Meeting
May 26, 1987
page 30
purchased previously had not proven to be very weatherworthy. The City Manager will
also instruct Stutz to contact other vendors.
Motion by Peterson, second by Paulson to authorize the Mayor and City Manager to
execute a contract to purchase/order banners for the downtown area. Ro11 call: AI1
ayes
Reports
a. Report of the City Manager
The City Manager's report was submitted in written form and the following items
were discussed:
1. Appointment of Fire Chief: Effective May 12, 1987 Charles Kewatt was appointed
Fire Chief. He will be compensated at the rate of $2,943 per month, which is
the 1986 entry rate for the Fire Chief position.
2. Repair of High Pressure pump on Sewer Vactor Equipment: The anticipated cost
of this repair is approximately $700. The City Manager will contact each member
of the Council if the repair estimate exceeds $1,000 regarding their position
on authorizing the additional costs.
3. Status Regarding Recycling Program Coordinator Position: The individual the
City Manager had recommended for this position had declined. Additional infor-
mation will be given to the Council as the situation dictates.
4. Meeting with Residents at University Heights, 300 ~lst Avenue: The City Manager
had met with residents of this development and outlined in his report what their
concerns are. He also noted some of the causes of the problems as well as pro-
posed solutions. The City Manager will be meeting with the developer in the
near future wlth the intent of negotiating some items to eliminate the water-
ponding problems.
b. Report of the City Attorney
The City Attorney had nothing to report at this time.
Licenses
Motion' by Carlson, second by Peterson to approve the licenses as listed upon pay-
ment of proper fees and that the fee be waived for the Columbia Heights Boosters
food concession license to be used at the Fourth of July Celebration. Roll call:
All ayes
Payment of Bills
Motion by Petkoff, second by Paulson to pay the bills as listed out of proper
funds. Roll call: All ayes
A Council Work Session was scheduled for June 2nd at 8:30. Mayor Nawrocki noted
that the Audit Management Letter was completed and given to staff. He felt this
should have come directly to the Council.
Adj ou rnmen t u~/
Moltion 'by' Carlson, second by Peterson to ad jo~~.mi·
Roll call: All ayes t
M~y~ar~ Bruce G. Nawrocki
-A'nne Student, (~ouncil Secretary