Loading...
HomeMy WebLinkAboutResolution 80-45RESOLUTION # 80-45 RESOLUTION 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 BE 1T RESOLVED by the City coUncil (the "Council") of the City of Columbia Heights, Minnesota, (the "City") as follows: 1. That on the 25th day of June, 1980, the Council of the City carried out the first reading of Ordinance No. 915 authorizing the publication of the Official Notice of Bond Sale of the $8,175,000 General Obligation Tax Increment' Bonds of 1980 (the "Bonds"). The Council held the second reading of Ordinance No. 915 on the 7th day of July, 1980. On the 7th day of July, 1980, the Council adopted Ordinance No. 915 on a 4-1 vote and by a 5-0 vote approved a motion to publish the Official Notice of Bond Sale_ BancNorthwest/Northern Trust Co.v Juran and Moody* 2. That the bid of First Nat'l. Bank of St. Paul andto purehase $8,175,000 General Obligation Tax Increment Bonds of 1980 (the "Bonds"), of the City, in accordance with the notice of bond sale dated June 25. 1980 , at the ~ rates of interest hereinafter set forth, and to pay therefor the sum of $8:D60:068.88 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. The Bonds shall, be payable as to principal and interest at the main office of the Northwestern National Bank of Minneapolis, Minnesota. 3. That the Bonds in negotiable coupon form shall be dated September 1, 1980 and shall be issued forthwith. The Bonds shall be 1635 in number and numbered from I to 1635, inclusive, in the denomination of $5,000 each. The Bonds shall mature serially, lowest numbers first, on March 1 in the years, and amounts as follows: Year, Amount Year Amount Year Amount 1983 $10,000 1990 $350,000 1997 $700,000 1984 10,000 1991 425,000 1998 700,000 1985 - 1992 475,000 1999 700,000 1986 140,000 1993 525,000 2000 700,000 1987 190,000 1994 550,000 2001 700,000 1988 250,000 1995 650,000 2002 100,000 1989 300,000 1996 700,000 4. That the Bonds shall provide funds for a redevelopment pro~ect, as defined in Minnesota Statutes, Section 462.421, Subd. 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 to be entered into between the Authority and the City pursuant to Minnesota Statutes, Section 462.585, tax *As joint account managers with associates increments derived from the Project area will be pledged to the payment of principal of and premium, if any, and interest on the Bonds. In compliance with Minnesota Statutes, Section 475.58, the estimated collection of tax increments from the Project area exceeds 20% of those costs of the Project for which the Bonds are sold. The costs of the Project shall include the costs enumerated in Minnesota Statutes] Section 475.65, 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 proceed with due diligence to completion. 5. That the Bonds of this issue maturing in the years set forth below shall bear interest, payable March 1, 1981, .and semiannually thereafter on Sep- tember 1 and March i of each year, at the rates per annum, according to the years of maturity, as follows: 1983 maturities at 8.00 % 1993 1984 maturities at 8.00 % 1994 1985 maturities atS.00 % 1995 1986 maturities atS.00 % 1996 1987 maturities arS.00 % 1997 1988 maturities at8.00 % 1998 1989 maturities atS.00 % 1999 1990 maturities atS.00 % 2000 1991 maturities at8.00 % 2001 1992 maturities atS---~% 2002 maturities at 8,00 % maturities at 8.00 % maturities at 8.00 % maturities at 8. l0 .% maturities at 8.25 % maturities at 8./[0 % maturities at 8.50 % maturities at 8.60 % maturities at 8.75 % maturities at 8.75 % 6. That the Bonds maturing .in 1991 and later years will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers on March 1, 1990, and any interest payment date thereafter, at the following prices plus accrued interest to the date of redemption: Redemption Date Redemption Prices March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter Par plus 2% Par plus 1.5% Par Published notice of redemption shall in each case be given in' accordance with law, and at least thirty (30) days prior thereto mailed notice of redemption shall be given to the bank where the Bonds are payable and to the last known registered holders, 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-Treasurer. 7. That the Bonds and interest coupons to be issued hereunder shall be in substantially the following form: No. UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CITY OF COLUMBIA HEIGHTS $8,175,000 GENERAL OBLIGATION TAX INCREMENT BONDS SERIES 1980 $5,000 KNOW ALL MEN BY THESE PRESENTS that the City of Columbia Heights, Anoka County, Minnesota (the "City"), certifies that it is indebted and for value received promises to pay to bearer the principal sum of FIVE THOUSAND DOLLARS on the first day of September, 19 , 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 March, 1981, and semiannually thereafter on the first day of September and the first day of March in 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 * 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. Bonds maturing in 1991 and later years will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers on March 1, 1990, and any interest payment date thereafter, at the following prices plus accrued interest to the date of redemption: Redemption Date March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter Redemption Prices Par plus 2% Par plus 1.5% Par Published notice of redemption shall in each case be given in accordance with law, and' at least thirty (30) days prior mailed notice of redemption shall be given to the Paying Agent where said bonds are payable and to the last known registered holders, 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 Clerk-Treasurer of the City. This bond constitutes a general obligation of the City, and the full faith and credit and taxing powers of the City have been and are 'hereby irrrevocably pledged to provide moneys for the prompt and full payment of said principal and interest when each becomes due. This bond is one of an issue in the aggregate principal *the main office of the Northwestern National Bank of Minneapolis, Minnesota amount of $8,175,000 all of like date and tenor, except as to serial number, maturity, interest rate and redemption privilege, which bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesotm This bond is payable out of the General Obligation Tax Increment Bonds of 1980 Account of the City. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the' issuance of this bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and this bond, together with all other debts of the City outstanding on the date hereof and the date of its actual issuance and delivery, does not exceed any constitutional or statutory 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, Anoka County, Minnesota, by its City Council has caused this bond to be executed in its behalf by the Mayor and the City Manager of the City, one by manual and one by facsimile signature, and has caused the interest coupons to be executed and authenticated by the facsimile signatures of said officers, all as of September 1, 1980. /s/ Robert S. Bocwinski /s/ Bruce G. Nawrocki 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 is a full, true and compared copy of the legal opinion of Messrs. Holmes & Graven of Minneapolis, Minnesota, which was delivered to us upon delivery of the bonds and is now on file in the offices of the City of Columbia Heights, Minnesota. (fascimile) City Manager (facsimile) Mayor (Form of Coupon) No. On the first day of September (March), 19___, unless the the bond described below is called for earlier redemption, the City of Columbia Heights, Anoka County, Minnesota will pay to bearer at the main office of the Northwestern N~ationa] or any successor Paying Agent duly appointed by the City, the sum shown hereon for interest then due on its General Obligation Tax Increment Bond of 1980, dated September 1, 1980. Bank* /s/Facsi mile City Manager Mayor /s/ Facsimile *of Minneapolis, Minnesota 8. -That the Bonds shall be executed on behalf of the City by the Mayor and City Manager of the City, one by manual and one by facsimile signature, and be sealed with the seal of the City; provided, however, that the corporate seal may be omitted on the Bonds as permitted by law. The interest coupons appertaining thereto shall be executed by the printed, engraved, lithographed or otherwise reproduced facsimile signatures of the Mayor and City Manager of the City. 9. That the legal opinion of Messrs. Holmes & Graven of Minneapolis, Minnesota, respecting the validity and enforceability of the Bonds and the tax exemption of the interest on the Bonds shall be reproduced on the reverse side of each Bond at the request of the purchaser 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 Messrs. Holmes & Graven of Minneapolis, Minnesota, by the Clerk-Treasurer or other officer of the City to the purchaser thereof upon receipt of the purchase price, and the said purchaser shall not be obliged to see to the proper application thereof. 10. That there is hereby created a special account designated "Project Account'.' held and administered by the Clerk-Treasurer of the City separate and apart from all other accounts of the City. Said' Project Account shall be maintained in the manner specified until all of the Bonds herein authorized, and any other general obligation tax increment bonds hereafter issued to complete 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 increments 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 Project Account there shall be maintained four separate funds, to be designated as the "Capital Fund", the "Capitalized Interest Fund", the "Debt Service Fund", and the ~Discharge Fund", respectively. The proceeds of the sale of the Bonds, less the amount of the proceeds of the Bonds deposited in the Capitalized Interest Fund, and less any premium and accrued interest received thereon, shall be credited to the Capital Fund, from which there Shall be paid all costs and expenses of the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred, of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpc~e. There shall be depc6ited in the Capitalized Interest Fund the amount of proceeds of the Bonds which is equal to the interest which wil~ be due on the Bonds on March 1, 1981, September 1, 1981, and March 1, 1982. The amount in the Capitalized Interest Fund is hereby pledged to pay the interest due on the Bonds on such dates. Thirty days prior to each of the interest payment dates indicated above (March 1, 1981, September 1, 1981, and March 1, 1982), the amount of interest due and payable on the Bonds on such interest payment dates shall be transferred to the Debt Service Fund. Any amounts remaining in the Capitalized Interest Fund after March 1, 1982, shall be deposited in the Debt Service Fund. There is hereby pledged and there shall be credited to the Debt Service Fund (a) any premium and all accrued interest received upon delivery of and payment for the Bonds, (b) collections of tax increments derived from the Project, all taxe~ herein levied for the payment of the Bonds, and any revenues derived from special assessments or other sources and available and pledged to pay principal and interest on the Bonds, and (d) all funds remaining in said Capital Fund after completion of the Project and payment of the costs thereof. In the event that there will be funds in the Debt Service Fund which will be available to pay all or a portion of the principal and interest due on the Bonds in any year, then the Clerk- Treasurer or other officer of the City shall cancel the levy imposed by Section 12 of this resolution for such year to the extent such funds are so available. In the event that at any time the amount in the Debt Service Fund exceeds the sum of (a) the principal amount of the Bonds maturing in the subsequent one year, (b) the interest which will be due and payable on the Bonds in the subsequent one year, and (c) an amount equal to the greater of one year's interest earnings on the Debt Service Fund or one-twelfth of the principal and interest due on the Bonds in the subsequent one year, then the amount in the Debt Service Fund which exceeds this sum shall be withdrawn from the Debt Service Fund and deposited in the Discharge Fund. The Debt Service Fund herein created shall be used solely to pay principal of and premium, if any, and interest on the Bonds and any other general obligation tax increment bonds hereafter issued and made payable from said account, except that upon discharge of the Bonds and such already outstanding or additional Bonds, the City shall use the remaining funds in the Debt Service Fund to reimburse the City as provided above. Ther~ shall be deposited in the Discharge Fund only such amounts from the Debt Service Fund as exceed the sum described above. No portion of the proceeds of the Bonds, premium (if any) paid for the Bonds, or accrued interest (if any) paid on the Bonds shall be deposited in the Discharge Fund. In the event that the amount in the Debt Service Fund is insufficient to pay the principal and interest to next become due on the Bonds, then the amount in the Discharge Fund (if any) shall be used to pay such principal or interest on the Bonds and the amount of the next levy (imposed by Section 12 of this resolution) shall be reduced by the amount in the Discharge Fund which will be used to pay such principal or interest on the Bonds. On March 1, 1990, any amounts remaining in the Discharge Fund after the payment of the principal or interest on the Bonds, as provided above, shall be used to redeem and prepay as many Bonds as possible in inverse order of serial numbers. On every interest payment date after March 1, 1990~ the amounts in the Discharge Fund shall be used to redeem and prepay, in inverse order of serial numbers, as many Bonds as possible. 11. That 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 462.585, subdivision 3, the County Auditor will include only the original assessed value in the assessed valuation upon which the County Auditor computes the rate of all state, county, city, school district and other taxes, but will extend the rates so determined against the entire assessed valuation of such real property in each subsequent year, and the County Treasurer of Anoka County win 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. That the Authority will agree to segregate the tax increments derived from the Project on its official books and records and to remit to the above-described special fund of the City all of said tax increments pursuant to a Tax Increment Pledge Agreement in substantially the form attached hereto as Exhibit A. The officers of the City are hereby authorized to execute on behalf of the City such a Tax Increment Pledge Agreement in substantially the form attached hereto as Exhibit A. To provide additional moneys for the payment o£ said principal and interest 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: _Levy Year Collection Year Amount Levied See attached computation of levy Said tax levies are such that if collected in full they, together With estimated collections of tax increment revenues pledged for the payment of the bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the principal 'and interest payments on the bonds (except for interest due on or before 9/1/82 , payable from funds which shall be on hand and irrevocably deposited to the Debt Service Fund of the Project Account as of the date of delivery of and payment for the bonds). Said tax levies shall be irrevocable so long as any of said bonds are outstanding and unpaid~ provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted bY Minnesota Statutes Section 475.61, subdivision 3, and this resolution. The full faith, credit and taxing powers of the City shall be and are hereby irrevocably 'pledged for the prompt and full payment of the principal of and interest on the Bonds, as the same respectively become due a~d payable. 13. That interest earnings from the investment of money in the Capital Fund and Capitalized Interest Fund shall be deposited in the Capital Fund. Interest earnings from the investn~ent of money in the Debt Service Fund shall be deposited in the Debt Service Fund. Interest earnings from the investment of money'in the Discharge Fund shall be depcsited in the Discharge Fund. 14. That the City Clerk is hereby authorized and directed to file a certified copy of this resolution with the County Auditor, together with such other information as each shall require, and to obtain from the County Auditor its certificate that the Bonds have been entered in such Auditor's Bond Register and that the Tax Increment Pledge Agreement to be entered into by the City and the Authority to secure payment of the Bonds has been filed with the County Auditor. ,I The motion for the adoption of the foregoing resolution was duly seconded by member hooacz and upon vote being taken thereon, the following voted in favor thereof: Hefntz Hentges Logacz Mayor Nawrocki and the following voted against the same: Norber9 Whereupon said resolution was declared duly passed and adopted. 15. That 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 the facts recited therein. COMPUTATION OF' ]'AX C,EVY Oi',~: $8., 175,000 GENERAC OBL, IGATION ')''AX INCREMENT CITY OF COI.,UMBT. A HEIGI-ITS, MINNESOTA BONI)S. L, EVY COI. I..E C..T AMOUNT 1980 1981 $ 0 198]. .1982 $ ':- c'?' 9 ~' "" ,. o,,. :I. 'y8e, $ 682150 198'S 198q- $ 671S5";0 1.98b 1985 $ 811..750 - o o,= :/986 $ 8501 "'; 0 1986 1987 $ 89q. 950 ]. 987 1988 $ 92LI. 950 1.988 1989 $ 950950 ].989 .1.990 $ 99?950 1990 199:1. $ 10].7950 ]991 ].992 $ 10'~ '=- "~ "'',... ,_, -., ,., U" ~ ,..-, o ,') .1. 99 S $ 1. 0 n o o .~; r .1.997 199q. $ 106q. 950 ,,~ o,.::, ~ ,, ., 1..-; .~. ,., $ .1. 062970 .1. 99S ].996 :$ 1.006250 1996 1997 $ 9q. 8500 1997 1998 $ o o c:, o ,"; .., -,; u" 0 1 ,.:,,:,,,o .:~ .~,,,'~ o o o $ 870 .° 00 1999 2000 $ 770000 2000 2001 $ ].08750 AMOUNT + ,.~,,, 0 7170o''', ..-.~ 70 ~-~ 918 85].918 89o6 971198 998q. 98 1 106q. 6b8 10 ''' ''=''' ~' q 1059798 1.1. 18198 1116098 1056567 995925 93q. 185 871710 808500 116188 TAX 0 717100 716700 70,5000 c.~-~ q o,..~-,. 00 8927 00 979700 971200 998500 10tl. 7900 106~700 1077700 10~9b00 111820O 1116100 1056600 99600O 936200 871800 ~ ~ ~.o 0 0 116200 $ 17196900 $ .1.8057q. 00 NOTE: BOND PROCEEDS (CAPITALIZEr~ INTEREST) WICL, BE USED TO PAY $ 1009q. 25,00 OF 7---- 1.-- 1~o . .. 9--1-19~1, S-1-.1982, OF:' $ ].009q-25.00 INTR PYMTS DUE STATE OF MINNESOTA COUNTY OF ANOKA CITY OF COLUMBIA HEIGHTS I, John E. Schedler, being the duly qualified and acting Clerk-Treasurer of the City of Columbia Heights, Minnesota (the "City"), DO HEREBY CERTIFY that I have compared 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 11th day of August, 1980, 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 considering of bids for, and awarding the sale of $8,175,000 General Obligation Tax Increment Bonds of 1980 of said City, and I DO FURTHER CERTIFY that the action taken at said meeting was approved by at least a four-fifths majority of all members of the City Council 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 said City this /~C~d ~ ay of 1980. hn E. Schedler Clerk-Treasurer (Seal) Regular meeting Aug. 11 page 13 EXHIBIT A TAX INCREMENT PLEDGE AGREEMENT THIS AGREEMENT, made this day of , 1980, by and between The Hous/ng and Redevelopment Authority in and for the City of Columbia Hei§hts, a pubi/e body corporate and poi/tic under the laws of the State of ]viinnesota (hereinafter called the "Authority"), and the City of Columbia Heights, a municipal corporation under the laws of the State of Minnesota (hereinafter called the "City"); WITN ESSETH: WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 462.522, the Authority applied to the City Council of the City (the "City Council") for approval of the undertaking of a redevelopment project designated as Columbia Heights Downtown C.B.D. Revitalization Project (hereinafter called the "Project"), accompanied by a redevelopment plan, a statement of the method proposed for financing the Project, and the opinion of the city planning commission thereon, and by resolution (the "Resolution"), after publ/shed notice and public bearing, the City Council found and determined that the land in the Project would not be made available without the financial aid to be sought, that the redevelopment plan ~tl afford maximum opportunity, consistent with the sound needs of the locality as a whole, for the redevelopment and renewal of such areas by private enterprise, and that the redevelopment plan conforms to a genera] plan for the development of the locality as a whole, and by the Resolution the City CouneL1 approved said redevelopment plan, all pursuant to Minnesota Statutes, Section 462.521; and WHEREAS, the City Council by the Resolution approved the use of tax increment finaneJng in the Project; and WHEREAS, pursuant to the provisions of Minnesota Stat.utes, Section 462.585, Subdivisions 2 and 3, the Authority on August 23, 1977, requested the County Auditor of Anoka County (the "County Auditor") to certify the assessed valuation of all taxable rea] property within said Project as then most recently determined, and in each year thereafter the amount by which the oriEina] taxable value has increased or decreased, and the proportion which any such increase or decrease bears to the total assessed valuation of the rea] property for that year; and WHEREAS, pursuant to Minnesota Statutes, Section 462.585, the County Auditor is required in each year subsequent to eerti[ication to include no more than the original taxable value of such real property in the assessed valuation upon which the County Auditor computes the mil1 rates of ail taxes levied by the state, the county, the municipality or town, the school district and every other taxing district in which the project is situated, but is required to extend all mil1 rates so determined against the entire assessed v~uation of such rea] property tn the Project for that year, and, in each year for which the assessed valuation exceeds the orig/rml taxable value, to remit to the Authority that portion of aL1 taxes paid that year on the rea] property in the Project, which such excess valuation bears to page the tote] assessed valuation, the amount so remitted being referred to as the increment" for that year; and WHEREAS, pursuant to Minnesota Statutes, Section 462.585, tax increments received with respect to the Project are requ/red to be segregated tn a speci~l account unt~ the public redevelopment cost of the Project~ as defined in Minnesota Statutes, Section 462.545, Subdivision 1, including interest on all money borrowed therefor, has been fully paid, and the City has been fully reimbursed from the tax increments or from the revenues from the Project for any principal and interest on general obligation bonds issued therefor, ~fter which such payment is to be re,dried to the County Auditor and the entire assessed valuation of the Project is thereafter to be included in the assessed valuations upon which the tax mill rates are computed and extended end taxes are remitted to all taxing districts; and WHEREAS, in order to pay said pubZic redevelopment cost of the Project, the Authority has requested that the City Council issue genera] obligation bonds of the city pursuant to the provisions of Minnesota Statutes, Section 462.585, Minnesota Statutes, Section 273.?7, and Minnesota Statutes, Chapter 475, and the City Council by resolution dated August 11, 1980, has authorized the issuance and sale of a series of Genera] Obligation 'lax Increment Bonds of 1980, in the aggregate principal amount of Eight MLllion One Hundred Seventy-Five Thousand Dollars ($8,175,000) (the "Bonds~); and WHEREAS, pursuant to Minnesota Statutes, Section 462.585, Subdivision 4, the Authority is authorized to pledge and appropriate any part or all of the tax increments received for the Project and any part or all of the revenues received from lands in the Project while owned by the Authority, for the payment of the principal of and premium, if any, and interest on the Bonds and any additional bonds issued by the City upon request of the Authority, in aid of the Project, and to enter into this Agreement with the City respecting such pledge; NOT~' THEREFORE, the City and the Authority mutuaUy covenant and a~ree es follows: (1) The Authority will proceed expeditiously with the acquisition and redevelopment of such ]ands end the construction of such pubZic improvements within the Project as a~e needed] for the effectuation of the redevelopment plan, end with the.disposal of ]a.~ds so acquired and redeve]oped in conformity with said plan, as provided in the Municipal Hou~ng and Redevelopment Act, Min.~esota Statutes, See- tions 462.411 et seq. (2) The City shall issue and sell bonds for the payment of the public redevelopment cost of the Project, in the aggregate principal amount of Eight Million One Hundred Seventy-Five Thousand Dollars ($8,175,000), and in such additional amount or amounts as the Authority shall request and the City CouneLl sha/] determine. (3) Ail proceeds of bonds issued by the City in aid of the Project, all revenues and tax increments with respect to the Project which are received by the City from the Authority, and all income from the investment thereof by the City, shall be segregated by the City in a SPECIAL MEETING August 11 page 14 A special fund, which shall be used by the city solely for the payment of the prlncipal of, premium, if any, and interest on said bonds and for the payment or reimbursement of the publlc redevelopment costs of the Project. (4) The Authority pledges and appropriates a11 of the tax Increments and other revenues received from the Project and agrees to segregate all such tax increments in a speclal account and the various funds established by the Resolution. Vhen the entire publlc redevelopment cost has been paid, including payment or provision of a balance in the special fund sufficient for the payment of all principal and interest on said bonds, such fact shall be reported to the County Auditor. (6) An executed copy of this Agreement shall be filed with the County Auditor, and shall constitute the request and authorization of the Authority and the City to the County Auditor and County Treasurer of Anoka County to compute, collect and segregate said tax increments in accordance with the provisions of this Agreement and of Minnesota Statutes, Section 462.585, Subdivisions 2 to 4, inclusive. IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested to , as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMB I A..,ki'E I GHTS /?/~ 'Its ~cretar~ ByC ITY~i City Manager EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA HELD: August 1~1, 1980 Pursuant to due call and notice thereof, a meeting of the City Council of the City of Columbia Heights, Anoks County, Minnesota (the "City"), w~s duly assembled at the City Hall in said City on the llth day of August, 1980, at ?:00 .m. for the purpose of opening and considering bids for awarding the sale of 8,175,000 aggregate principal amount of General Obligation Tax Increment Bonds of 1980, of the City. The following members were Present: '.. · ~ Mayor Bruce Nawrocki E. "Sebe'' Heintz Kenneth Hentges Walter Loqa¢~ Gayl e Norber9 and the following were absent: None .The City Clerk of the City presented affidavits showing publication of notice of call for bids on $8,175,000 aggregate principal amount of General Obligation Tax Increment Bonds of 1980 (the "Bonds"), of the City, for which bids were to be received at th/s meeting, in accordance with the ordinance adopted by the City Council on July 7, 1980. Said affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475, and were approved and ordered placed on file. The City Council of the City (the "Council") proceeded to zeeeive and open bids for the sale of the Bonds. The fonowing bids were received: Bidder Interest Rate Net IntereSt Cost ATTACHED The Council then proceeded to consider such bids. After the bids had been considered and discussed, member Hentqes introduced the following resolution and moved its adoption: