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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 -1- 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. -3- 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 -5- (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 -6- 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 -7- 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: -8- 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. -10- 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: