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 496890v MNI CL 162-53 2