HomeMy WebLinkAboutResolution 82-56RESOLUTION NO. 82-56
RESOLUTION AUTHORIZING THE ISSUANCE OF
$450,000 GENERAL OBLIGATION TAX INCREMENT
BONDS OF 1982
PLEDGING FOR THE SECURITY THEREOF
TAX INCREMENTS FROM THE
~DOWNTOWN C.B.D. REVITALIZATION PROJECT
BE IT RESOLVED by the City Council (the "Council") of the City of
Columbia Heights, Minnesota (the 'City") as follows:
1. That on the 23rd day of August, 1982, the Council carried out the
first reading of Ordinance No. 1012 authorizing the publication of the Official
Notice of Bond Sale of the $450,000 General Obligation Tax Increment Bonds of
1982 (the "Bonds"), and soliciting bids for the purchase of the Bonds. The Council
carried out the second reading of Ordinance No. 10t2 on the 13th day of
September, 1982, and on that date adopted Ordinance No. 1012 on a vote of four to
one. Affidavits showing publication of notice of call for bids in the official
newspaper of the City and in Commercial West have been examined and have been
approved and ordered placed on file. The o'-f-~-owing bids for the sale of the Bonds
were received:
Bidder Interest Rate
Net Interest Cost
ATTACHED
2. After considering the bids received, it has been determined that the
bid of The First National Bank of Saint Paul to purchase the Bonds of the City, in
accordance with the Notice of Bond Sale at the rate of interest hereinafter set
forth, and to pay therefor the sum of $445,612.50 is hereby found, determined and
declared to be the most favorable bid received, and is hereby accepted and the
Bonds are hereby awarded to said bidder.. The Clerk-Treasurer of the City (the
"Clerk-Treasurer") is authorized and directed to retain the deposit of said bidder
and to forthwith return the good faith checks or drafts to the unsuccessful bidders.
3. The Bonds in negotiable coupon form shall be dated December 1, 19~g2
and shall be issued forthwith. The Bonds shall be ninety (90) in number and
numbered from 1 to 90, inclusive, in the denomination of $5,000 each. The Bonds
shall be temporary bonds, issued in anticipation of the issuance of definitive
general obligation tax increment bonds. The Bonds shall mature on December 1,
1985, and shall bear interest from date of issue until paid or duly called for
redemption at the annual rate of six and seven tenths percent (8.70%).
4. The Bonds shall provide funds for a redevelopment project, as defined
in Minnesota Statutes, Section 462.421, Subdivision 13, undertaken by The Housing
and Redevelopment Authority in and for the City of Columbia Heights, Minnesota
(the "Authority") and designated as the Downtown C.B.D. Revitalization Project
(the "Project"). Under the terms of a pledge agreement entered into between the
Authority and the City on or as of August 11, 1980, pursuant to Minnesota Statutes,
Section 273.77, tax increment derived from the Project area has been pledged to
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the payment of principal of, premium, if any, and interest on the City of Columbia
Heights $8,175,000 General Obligation Tax Increment Bonds of 1980, and any o~her
general obligation tax increment bonds subsequently issued to complete the
Project. In compliance with Minnesota Statutes, Section 475.58, the estimated
collection of tax increment from the Project area exceeds 20% of those eost~ of
the Project for which the Bonds are sold. The costs of the Project shall include the
· costs enumerated in Minnesota Statutes, Sections 475.65, 273.75, subdivision 4, and
....Minnesota S_tatutes, Sections 462.411 et seq., and it is estimated that said costs
will be at least .equal. to the amount of-the Bonds herein authorized. Work on the
Project shall pr(~eeed with due diligence to completion.
5. The Bonds of this issue shall bear interest, payable December 1, 1983,
and semiannually thereafter on June I and December 1 of each year. The principal
of and interest on the Bonds shall be payable at The First National Bank of Saint
Paul in Saint Paul, Minnesota, which is designated as paying agent, or in the event
of its resignation, removal or incapability of acting as paying agent, at the office
of such successor paying agent as may be appointed by the City Council
6. The Bonds shall be subject to redemption and prepayment at the
option of the City in inverse order of serial numbers, on December 1, 1983, at a
price equal to 100.5% of their prieipal amount and accrued interest to the date of
redemption, and on any interest payment date thereafter at a price equal to 1~}0%
of their principal amount and accrued interest to the date of redemption.
Published notice of redemption shall in each case be given in accordance with ]~{w,
and at least thirty (30) days prior thereto mailed notice of redemption shall be
given to the bank where the Bonds are payable, provided that published notice
alone shall be effective without mailed notice. Holders desiring to receive mailed
notice must register their names, addresses and bond serial numbers with the City
Clerk.
7. The Bonds and interest coupons to be issued hereUnder shall be in
substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
NO. ~ $5,000
GENERAL OBLIGATION
TAX INCREMENT REDEVELOPMENT BOND OF 1982
KNOW ALL PEOPLE BY THESE PRESENTS that the City of Columbia
Heights, Minnesota (the "City"), acknowledges itself to be indebted and for value
received promises to pay to bearer upon presentation and surrender of this bond the
principal sum of
FIVE THOUSAND DOLLARS
on the first day of December, 1985, or on any earlier date on which it shall have
been duly called for redemption, and to pay interest thereon from the date hereof
until the principal is discharged at the rate of percent ( %) per
annum, payable on the first day of December, 1983, and semiannually thereafter on
the first day of June and the first day of Decemberin each year in accordance with
and upon presentation and surrender of the interest coupons attached hereto, as
each severally become due. Both principal and interest are payable at
in , ., or any
successor Paying Agent duly appointed by the City, in any coin or currency of the
United States of America which at the time of payment is legal tender for public
and private debts. For the prompt and full payment of such principal and interest
as the same respectively become due, the full faith and credit and taxing powers of
the City.have been and are hereby irrevocably pledged.
Bonds of this issue are subject to redemption and prepayment at the option
of 'the City in inverse order of serial numbers on 1, 19 , at a
price equal to 100.5% of their principal amount and accrued interest to{ the date of
redemption, and on any interest payment date thereafter, at a price equal to 100%
of their principal amount and accrued interest to the date of redemption.
Published notice of redemption shall in each ease be given in accordance with lav~,
and at least thirty (30) days prior mailed notice of redemption shall be given to ~e
Paying Agent where said bonds are payable, provided that published notice alone
shall be effective without mailed notice. Holders desiring to receive mailed notice
must register their names, addresses and bond serial numbers with the City Clerk
of the City.
This bond constitutes a general obligation of the City, and the full force and
credit and taxing powers of the City have been and are hereby irrevocably pledged
to provide moneys for the prompt and full payment of said principal and intere:;t
when each becomes due. This bond is one of an issue in the aggregate principal
amount of $450,000 all of IRe date and tenor, except as to serial number arid
maturity, and this bond h_as been issuedpursuant to and in full eonfo.rmity with t~e
Constitution and laws of the State of Minnesota and the Charter of the City, and
pursuant to resolutions duly adopted by the City Council This bond is payable out
of the Debt Service Fund in the "Project Account" of the City established pursuant
to resolution of the City.
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IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED th~.~t
all acts, conditions and things required by the Constitution and laws of the State ~f
Minnesota and the Charter of the City to be done, to happen and to be performed,
precedent to an~ in the issuance of this bond, in order to make it a valid and
binding obligation of the City in accordance with its terms, have been done, ha~e
happened and have been performed, in regular and due form, time and manner ~s
'required by lav~ and. this bond, together with all other debts of the Cindy
outstanding on the date hereof and the date of its actual issuance and delivery,
does not exceed any constitutional, statutory or Charter limitation of indebted-
ness. The corporate seal of the City has been omitted from this bond as permitted
by law.
IN WITNESS WHEREOF, the City of Columbia Heights, Minnesota, by its
City Council has caused this bond to be executed in its behalf by the facsimile
signatures of the Mayor and the City Manager and the manual signature of one ~f
said officers, and has caused the interest coupons to be executed and authenticated
by the facsimile signatures of said officers, all as of December 1, 1982.
(facsimile) (faesimite)
City Manager Mayor
(Certificate as to Legal Opinion)
We, the undersigned, Mayor and City Manager of the City of Columbia
Heights, Minnesota, hereby certify that except for the date line, the foregoing ~s a
full, true and compared copy of the legal opinion of Holmes & Graven, Charter~ed,
~Minneapolis, Minnesota, which was delivered to us upon delivery of the bonds an~ is
now on file in the offices of the City of Columbia Heights, Minnesota.
(fascimile) (facsimile)
City Manager Mayor
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(Form of Coupon)
NO. $
On the first day of June (December), 19 , unless the the bond described
below has been duly called for earlier redemption, the City of Columbia Heights,
Minnesota wi~. pay to bearer at in
, _ , or any successor Paying Agent duly
appointed by the City, the sum shown hereon for interest then due on its General
Obligation Tax Increment Redevelopment Bond of 1982 dated December 1, 1982.
(facsimile) (facsimile)
City Manager Mayor
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8. The Bonds shall be exeeuted on behalf of the City by the faesimi~(e
signatures of the Mayor and C, ity Manager of the City, and the manual signature of
one of said officers. The corporate seal shall be omitted from the Bonds as
permitted by law. The interest coupons appertaining thereto shall be executed
by the printe~, engraved, lithographed or otherwise reproduced
facsimile signatures of the Mayor and City Manager of the City.
9. The"'legai opinion of Holmes & Graven, Chartered, Minneapolis,
Minnesota, respecting the validity and enforceability of the Bonds and the ta~
exemption of the interest on the Bonds shall be reproduced on the reverse side of
each Bond and shall be certified by the facsimile signature of the City Manager and
the Mayor. The Bonds when so prepared and executed shall be delivered, together
with the signed legal opinion of Holmes & Graven, Chartered, Minneapolis,
Minnesota, by the City Manager or other officer of the City to the purchaser
thereof upon receipt of the purchase price, and the said 'purchaser shall not ~e
obliged to see to the proper application of the purchase price.
10. There is hereby created a special fund in the Project Account (the
"1980 Project Account") created by the City Council pursuant to the nResolutic, n
Authorizing the Issuance of $8,175,000 General Obligation Tax Increment Bonds
Pledging for the Security thereof Tax Increments from the Downtown C.B.D.
Revitalization Project and Authorizing Execution of a Tax Increment Pledge
Agreement" adopted on August 11, 1980~ (the ~1980 Bond Resolution"). Such
special fund shall be designated the "General Obligation Tax Increment Bonds ¢~f
1982 Fund", (the "Fund"), and shall be maintained in the manner specified herein
until all of the Bonds herein authorized, any refunding bonds issued to refund the
Bonds, and any other genera[ obligation tax increment bonds hereafter issued to
finance the Project, including any modifications or additions thereto, and the
interest thereon, have been fully paid and the City has been fully reimbursed from
the pledge of tax increment for all of the principal and interest of the Bonds paid
by the City from taxes levied on property in the City other than the Project area.
In said Fund there shall be maintained three separate subaeeounts, to be
designated as the "Capital Account", the ~Debt Service Account" and the "Reserve
Account", respectively.
Capital Account. The proceeds from the sale of the Bonds less any
premium and accrued interest received thereon, shall be credited to the Capital
Account, from which there shall be paid all costs and expenses of the Projec~,
including the cost of any construction contracts heretofore let and all other cosmos
ihcurred and to be incurred, of the kind authorized in Minnesota Statutes, Sections
475.65, 273.75, subdivision 4, and Minnesota Statutes, Sections 462.411 et seq.; and
the moneys in said Capital Account shall be used for no other purpo~, provided
that upon completion of the Project amounts in the Capital Account may be
deposited in the Debt Service Aeoeunt to pay principal of and interest on the
Bonds.
Debt Service Account. There is hereby pledged and there shall be credited
to the Debt Service Account (a) any premium and all accrued interest received
upon delivery of and payment for the Bonds, (b) collections of certain tax
increment derived from the Project, and deposited in the Debt Service Account as
described below, and certain revenues derived from special assessments or other
sources and available and pledged to pay principal, premium, if any, and interest on
the Bonds, and (c) all funds remaining in said Capital Account after completion of
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the part of the Project financed by these Bonds and payment of the costs thereof.
Tax Increment collected from the Project shall be deposited in the Debt Service
Account to the extent necessary to provide monies sufficient for the payment, of
interest to become due on the Bonds at the next succeeding Interest Payment Date.
Reserve~Aeeount. There shall be credited to the Reserve Account .any
· prepayments of special assessments pledged to the payment of the Bonds. Amounts
in the Reserve Account may be used, if neeesary to pay interest on the Bonds, ~nd
shall be used to pay principal of the Bonds at maturity or redemption of the Bonds.
If the moneys on hand in the Debt Service Account should at any time be
insufficient to pay principal and interest due on the bonds payable therefrom, such
amounts shall be paid from (a) direct ad valorem property taxes levied upon ali of
the taxable property in the City; and/or (b) the General Fund of the City; and if so
paid, the City shall be reimbursed therefor when sufficient money becomes
available in the Debt Service Account. The Debt Service Account herein created
shall be used solely to pay principal of, premium, if any, and interest on the Bonds
and any other general obligation tax increment bonds hereafter issued and made
payable from said Debt Service Account, except that upon disoharge of the Bonds
and such already outstanding or additional Bonds, the City shall use the remaining
funds in the Debt Service Account to the extent necessary, if at all, to reimburse
the City. For any amounts paid for principal of or interest on the Bonds paid from
the sources listed in (a) and/or (b) above.
11. The County Auditor of Anoka County (the "County Auditor") has
certified that the original assessed value of real property within the Project area,
as determined according to the assessment as of January 2, 1976, and certified by
the County Auditor on August 23, 1977, is $2,336,687. Under the provisions of
Minnesota Statutes, Section 273.76, subdivision 3(a), the County Auditor will
include only the original assessed value, as adjusted pursuant to Minnesota
Statutes, Section 273.76, in the assessed valuation upon which the County Auditor
~eomputes the rate of alt state, county, city, school district and other taxes, but
will extend the rates so determined against the entire assessed valuation 0f such
real property in each subsequent year, and the Count}, Treasurer of Anoka will
remit to the Authority that proportion of the taxes paid each year on such real
property which the excess of the assessed valuation over the original taxable value
bears to such original value. '
12. Pursuant to the 1980 Bond Resolution the Authority agreed to
segregate the tax increment derived from the Project on its official books and
records and to remit to the above-described 1980 Project Account of the City the
amount of tax increment required to be remitted to the City pursuant to a Tax
Increment Pledge Agreement in substantially the form attached thereto as Exhibit
A.
13. That to provide moneys for the payment of interest on the Bonds
there is hereby levied upon all of the taxable property in the City a direct annual
ad valorem tax which shall be spread upon the tax rolls and collected with and as
part of, other general property taxes in said City for the years and in the amounts
as follows:
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Levy Year Collection Year Amount Levied
1983 1984 $ 63,315.00
1984 1985 31,658.00
Such ta~' levies are such that if collected in full they, together with
estimated c~lleetion$ of special assessments and the definitive general obllga:tion
tax increment or additional temporary general obligation tax increment bends
herein pledged ior the payment of the Bonds, will produce at least five percent
(5%) in excess of the amount needed to meet when due the principal and inter, est
payments on the Bonds.
Said tax levies shall be irrevocable so long as any of the Bonds are
outstanding and unpaid, provided that the City reserves the right and power to
reduce the levies in the manner and to the extent permitted by Minnesota Statu~tes
Section 475.61, subdivision 3.
The full faith, eredit and taxing powers of the City shall be and a~e hereby
irrevocably pledged for the prompt and full payment of the principal of, premium,
if any, and interest on the Bonds, as the same respectively become due ~nd
payable.
14. Interest earnings from the investment of money in the Capital
Account and Capitalized Interest Account shall be deposited in the Capital
Account. Interest earnings from the investment of money in the Debt Service
Account shall be deposited in the Debt Service Account and investment income
from amounts in the Reserve Account shall be deposited in the Reserve Account.
Ail investments shall be made without regard to rate of investment return and sk~all
be made in accordance with the restrictions contained in Minnesota Statute_~
Section 475.66.
15. The City Manager is hereby authorized and directed to file a
certified copy of this resolution with the County Auditor of Anoka County,
together with such other information as shall be required, and to obtain from s~id
County Auditor his certificate that the Bonds have been entered in the Auditc~r's
Bond Register.
16. The officers of the City are hereby authorized and directed 'to
'prepare and furnish to the purchaser of the Bonds, and to the attorneys approving
the legality of the issuance thereof, certified copies of all proceedings and records
of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other affidavits, certificates and information as are required to
show the facts relating to the legality and marketability of the Bonds as the same
appear from the books and records under their custody and control or as otherwise
known to them, and all such certified copies, certificates and affidavits, including
any heretofore furnished, shall be deemed representations of the City as to t~he
facts recited therein.
The motion for the adoption of the. foregoing resolution was duly seconded
by Council member H0¥[AN0 and upon vote being taken thereon, the following
voted in favor thereof:
Mayor Nawroeki
Council Member Hentges
Council Member Hovland
Council Member Petkoff
and the following voted against the same:
Council Member Norberg
Whereupon said resolution was declared duly passed mhd adopted.
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STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
I, the undersigned, being the duly qualified and acting Clerk-Treasurer of
the City of Columbia Heights, Minnesota (the "City~), DO HEREBY CERTIFY that
I have comparec} the attached extract of minutes with the original thereof on file
in my office of a regular meeting duly called and assembled of the members of the
City Council of the City (the ~City Council~), held on the 25th day of Octc~ber,
1982, which was open to the public, at which a quorum was present and acting
throughout, and that the same is a full, true and complete transcript of the minutes
of said meeting, insofar as such minutes relate to the opening and considerir~ of
bids for, and awarding the sale of $2,550,000 General Obligation Permanent
Improvement Fund Bonds of 1982, of said City, and I DO FURTHER CERTIFY that
the action taken at said meeting was approved by all members of the City Co~.ncil
and as of the date of this certificate, is in full force and effect, and no resolution
has been or previously was adopted or other action taken which would in any way
alter or amend the resolution adopted or change, revoke, or place conditions on the
effectiveness of, the action taken at said meeting.
WITNESS my hand and the seal of the City this %~ day of
'/- , 1982.
Clerk-Treasurer
(Seal)
EXTRACT OF MINUTF_.S OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
COLUMBIA HEIGHTS, MINNI~OTA
Pursuant to due call .and notice thereof, a meeting of the City Council of
the City of Col~imbia- Heights, Anoka County, Minnesota (the ~City'r), was duly
asssembled at the City Hall in the City on the 25th day of October, 1982, at 8;~00
p.m. for the purpose of considering bids for awarding the sale of $2,550,000
aggregate principal amount of General Obligation Permanent Improvement Fund
Bonds of 1982, of the City.
The following membmm were present:
Mayor Nawrocki
Council Member Hentges
Council Member Hovland
Council Member Norberg
Council Member Petkoff
and none were absent.
Affidavits were presented showing publication of notice of call for bids on
$2,550,000 aggregate principal amount of General Obligation Permanent
Improvement Fund Bonds of 1982 (the ~Bonds"), of the City, for which bids had
been received on October 25~ 1982, in accordance with Ordinance No. 1012 adopted
by the City Council on September 13, 1982. Said affidavits were examined, found
to comply with the provisions of Minnesota Statutes, Chapter 475, and were
approved and ordered ptaeed on file.
The City Council of the City (the "Council") proceeded to consider the bids
for the sale of the Bonds.
After due consideration of the bids, Council member .Hea~;qes
introduced the following resolution and moved its adoption: