HomeMy WebLinkAbout1639ORDINANCE NO. 1639
BEING AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2017A,
IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $3,375,000
The City of Columbia Heights does ordain:
Section 1. It is hereby determined that:
(a) On September 19, 2007, the Columbia Heights Economic Development Authority
(the "EDA ") issued its Public Facility Lease Revenue Bonds, Series 2007B (Municipal Liquor Stores
Project) (the "Series 2007B Bonds "), in the original aggregate principal amount of $5,040,000. The
Series 2007B Bonds were issued under the terms of a Mortgage and Security Agreement and Trust
Indenture, dated as of September 1, 2007 (the "Indenture "), between the EDA and U.S. Bank
National Association (the "Trustee "). Pursuant to a Ground Lease, dated as of September 1, 2007,
the EDA leases certain land (the "Sites ") from the City of Columbia Heights, Minnesota (the "City ").
Pursuant to a Lease- Purchase Agreement, dated as of September 1, 2007, the Authority leases to the
City, with the option to purchase by the City, the Sites and the facilities constructed thereon,
including the municipal liquor store (the "Facilities ").
(b) Pursuant to Section 3.01(b) of the Indenture, the Series 2007B Bonds maturing on
or after February 1, 2018, are subject to optional redemption, at the election of the City, on
February 1, 2017, and any date thereafter, at a price of par plus accrued interest. The City has
proposed to exercise its option to redeem the outstanding Series 2007B Bonds and acquire the Sites
and the Facilities from the EDA. The Series 2007B Bonds are currently outstanding in the aggregate
principal amount of $3,700,000.
(c) The City is authorized by Minnesota Statutes, Section 475.67, subdivision 3 to issue
and sell its general obligation bonds to refund obligations and the interest thereon before the due date
of the obligations, if consistent with covenants made with the holders thereof, when determined by
the City Council to be necessary or desirable for the reduction of debt service costs to the City or for
the extension or adjustment of maturities in relation to the resources available for their payment.
(d) The City has determined that it is necessary and desirable for the reduction of debt
service costs to the City to issue its General Obligation Refunding Bonds, Series 2017A (the
"Bonds "), in the maximum aggregate principal amount of $3,375,000, pursuant to the home rule
charter of the City (the "City Charter ") and Minnesota Statutes, Section 475.67, subdivision 3, to
redeem and prepay the outstanding Series 2007B Bonds and acquire the Sites and the Facilities from
the EDA.
Section 2. Ehlers & Associates, Inc. is authorized to negotiate the sale of the Bonds in the
maximum aggregate principal amount specified in Section 1(d) hereof, in accordance with terms of proposal
approved by the Finance Director of the City. The City Council will meet on Monday, June 12, 2017, or such
other date specified by the City Manager in accordance with the City Charter, to consider the sale of the
Bonds and take any other appropriate action with respect to the Bonds.
Section 3. The EDA is authorized and directed to provide to the Trustee written notice of the
City's election to redeem the outstanding Series 2007B Bonds in accordance with the terms provided in
Section 3.02 of the Indenture.
496890v1 MNI CL162 -53
Section 4. This ordinance shall be in full force and effect from and after thirty (30) days after
its passage.
First Reading: April 24, 2017
Second Reading: May 8, 2017
Offered By: Buesgens
Seconded By: Williams
Roll Call: All Ayes
Date of Passage: May 8, 2017
Mayor Donna c mitt
Attest:
r /7 4
Katie Bruno
City Clerk/Council Secretary
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