HomeMy WebLinkAbout2026-007 GO TIF Ref 2026A AwardCITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION NO.2026-007
A RESOLUTION AWARDING THE SALE OF TAXABLE
GENERAL OBLIGATION TAX INCREMENT REFUNDING
BONDS, SERIES 2026A, IN THE ORIGINAL AGGREGATE
PRINCIPAL AMOUNT OF $7,490,000; FIXING THEIR FORM
AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND
DELIVERY; PROVIDING FOR THEIR PAYMENT;
AUTHORIZING THE EXECUTION OF DOCUMENTS IN
CONNECTION THEREWITH; AND PROVIDING FOR THE
PAYMENT OF BONDS REFUNDED THEREBY
BE IT RESOLVED By the City Council of the City of Columbia Heights, Anoka County,
Minnesota (the "City"), as follows:
Section 1. Sale of Bonds.
1.01. Authorization. Pursuant to a resolution adopted by the City Council on December 8, 2025,
the City authorized the sale of its Taxable General Obligation Tax Increment Refunding Bonds, Series
2026A (the "Bonds"), pursuant to Minnesota Statutes, Chapters 469 and 475, as amended, including
Sections 469.174 through 469.1794, particularly Section 469.178, subdivision 5, and Section 475.67,
subdivision 3 (collectively, the "Act"), to refund the City's Taxable General Obligation Temporary Tax
Increment Refunding Bonds, Series 2023A (the "Temporary Bond"), dated December 14, 2023, issued in
the original aggregate principal amount of $6,615,000. Proceeds of the Temporary Bond were used to
refund the City's Taxable General Obligation Temporary Tax Increment Bonds, Series 2021A (the "Series
2021A Temporary Bond"), dated July 29, 2021, issued in the original aggregate principal amount of
$5,935,000. The Temporary Bond is outstanding in the full principal amount and is subject to optional
redemption on or after August 1, 2024. The City used the proceeds of the Temporary Bond and the Series
2021A Temporary Bond to provide temporary financing to pay all or a portion of the public redevelopment
costs incurred or to be incurred within the Alatus TIF District (the "TIF District") established within the
Downtown Central Business Redevelopment Project as identified in the tax increment financing plan for the
TIF District, in the form of a bridge loan provided to Alatus Columbia Heights II LLC, a Delaware limited
liability company, for land acquisition, demolition, and related loan transaction costs (the "Project Costs").
1.02. Award to the Purchaser and Interest Rates. A tabulation of proposals received for the
purchase of the Bonds is attached hereto as EXHIBIT A. The proposal of KeyBanc Capital Markets
Incorporated, Cleveland, Ohio (the "Purchaser"), to purchase the Bonds is hereby found and determined to
be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of
$7,401,091.35 (par amount of $7,490,000.00, less net original issue discount of $17,379.15, less
underwriter's discount of $71,529.50), plus accrued interest, if any, to the date of delivery for Bonds bearing
interest as follows:
4924-8833-8565.2
Year Interest Rate
Year
Interest Rate
2029
4.500%
2038
5.000%
2030
4.500
2039
5.000
2031
4.500
2040
5.000
2032
4.500
2041
5.000
2033
4.500
2042
5.000
2034
4.500
2043
5.000
2035
4.500
2044
5.000
2036
4.500
2047*
5.125
2037
4.500
2050*
5.200
* Term Bond
True interest cost: 5.1085477%
1.03. Purchase Contract. The amount proposed by the Purchaser in excess of the minimum bid
shall be credited to the Debt Service Fund hereinafter created or deposited in the Redemption Fund hereinafter
created, as determined by the Finance Director in consultation with the City's municipal advisor. The good
faith deposit of the Purchaser shall be retained and deposited until the Bonds have been delivered and shall be
deducted from the purchase price paid at settlement. The Mayor and the City Manager are directed to execute
a contract with the Purchaser on behalf of the City.
1.04. Terns and Principal Amount of Bonds. The City will forthwith issue and sell the Bonds
pursuant to the Act, in the total principal amount of $7,490,000, originally dated the date of delivery (which
is anticipated to be January 27, 2026), in denominations of $5,000 each or any integral multiple thereof,
numbered No. R-1 upward, bearing interest as above set forth, , and which mature on February 1 in the
years and amounts as follows:
Year
Amount
Year
Amount
2029
$200,000
2038
$300,000
2030
210,000
2039
315,000
2031
220,000
2040
330,000
2032
230,000
2041
345,000
2033
240,000
2042
365,000
2034
250,000
2043
385,000
2035
265,000
2044
400,000
2036
275,000
2047*
1,330,000
2037
285,000
2050*
1,545,000
* Term Bond
1.05. Optional Redemption. The City may elect on February 1, 2027, and on any date thereafter to
prepay the Bonds. Redemption may be in whole or in part and if in part, at the option of the City and in such
manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will
notify DTC (as defined in Section 6 hereof) of the particular amount of such maturity to be prepaid. DTC will
determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant
will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments will
be at a price of par plus accrued interest.
4924-8833-8565.2 2
1.06. Mandatory Redemption; Term Bonds. The Bonds maturing on February 1, 2047 and
February 1, 2050 shall hereinafter be referred to collectively as the "Term Bonds." The principal amount
of the Term Bonds subject to mandatory sinking fund redemption on any date may be reduced through
earlier optional redemptions, with any partial redemptions of the Term Bonds credited against future
mandatory sinking fund redemptions of such Term Bonds in such order as the City shall determine. The
Term Bonds are subject to mandatory sinking fund redemption and shall be redeemed in part at par plus
accrued interest on February 1 of the following years and in the principal amounts as follows:
Sinking Fund Installment Date
February I, 2047 Term Bond
Principal Amount
2045
$420,000
2046
445,000
2047*
465,000
* Maturity
February 1, 2050 Term Bond
Principal Amount
2048
$490,000
2049
515,000
2050*
540,000
* Maturity
Section 1.07. Combined Maturities. The maturity schedule of the Bonds, in combination with the
maturity schedules of the City's other outstanding general obligation bonds, conforms to Section 475.54,
subdivision 1 of the Act.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon
and, upon surrender of the Bonds, the principal amount thereof, is payable by check or draft issued by the
Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date
preceding the date of authentication to which interest on such Bond has been paid or made available for
payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or
made available for payment, in which case such Bond will be dated as of the date of authentication, or (ii) the
date of authentication is prior to the first interest payment date, in which case such Bond will be dated as of the
date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year,
commencing February 1, 2027, to the registered owners of record thereof as of the close of business on the
fifteenth day of the immediately preceding month, whether or not such day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and
paying agent (the "Registrar" and "Paying Agent"). The effect of registration and the rights and duties of the
City and the Registrar with respect thereto are as follows:
(a) Re ig ster. The Registrar must keep at its principal corporate trust office a bond register
in which the Registrar provides for the registration of ownership of Bonds and the registration of
transfers and exchanges of Bonds entitled to be registered, transferred or exchanged.
4924-8833-8565.2
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the
Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as
requested by the transferor. The Registrar may, however, close the books for registration of any transfer
after the fifteenth day of the month preceding each interest payment date and until that interest payment
date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate
principal amount and maturity as requested by the registered owner or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for
transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested
transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make
transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in whose
name a Bond is registered in the bond register as the absolute owner of such Bond, whether the Bond
is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest
on the Bond and for all other purposes, and payments so made to a registered owner or upon the
owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the
extent of the sum or sums so paid.
(g) Taxes. Fees and Charges. The Registrar may impose a charge upon the owner thereof
for a transfer or exchange of the Bonds sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost. Stolen or Destroyed Bonds. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date
and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of
and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses
and charges of the Registrar in connection therewith; and, in the case of the Bond destroyed, stolen or
lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or
lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or
indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the
City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be
cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated,
destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with
its terms it is not necessary to issue a new Bond prior to payment.
(i) Redemption. In the event any Bond is called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the
redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by publishing the
notice if required by law. Failure to give notice by publication or by mail to any registered owner, or
4924-8833-8565.2 4
any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds
so called for redemption will cease to bear interest after the specified redemption date, provided that
the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints Bond Trust Services Corporation,
Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute
and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar
with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct
such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the
reasonable and customary charges of the Registrar for the services performed. The City reserves the right to
remove the Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which
event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and
must deliver the bond register to the successor Registrar. On or before each principal or interest due date,
without further order of the City Council, the Finance Director must transmit to the Registrar moneys sufficient
for the payment of all principal and interest then due.
2.05. Execution. Authentication and DeliM. The Bonds will be prepared under the direction of
the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager,
provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer
whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the
delivery of the Bonds, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the
same as if the officer had remained in office until delivery. Notwithstanding such execution, the Bonds will
not be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and
until a certificate of authentication on the Bonds has been duly executed by the manual signature of an
authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed
by the same representative. The executed certificate of authentication on the Bonds is conclusive evidence that
it has been authenticated and delivered under this resolution. When the Bonds have been so prepared, executed
and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price
in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see
to the application of the purchase price.
Section 3. Form of Bonds.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form
attached hereto as EXHIBIT B.
3.02. Approving Legal Opinion. The City Manager is authorized and directed to obtain a copy
of the proposed approving legal opinion of Kutak Rock LLP, Minneapolis, Minnesota, and to cause the
opinion to be printed on or accompany each Bond.
4924-8833-8565.2
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds will be payable from the Taxable General Obligation Tax
Increment Refunding Bonds, Series 2026A Debt Service Fund (the "Debt Service Fund") hereby created.
The Debt Service Fund shall be administered and maintained by the Finance Director of the City as a
bookkeeping account separate and apart from all other funds maintained in the official financial records of the
City. Tax increment revenues resulting from increases in taxable valuation of real property in the TIF District
(the "Tax Increment Revenues") received by the Columbia Heights Economic Development Authority (the
"Authority") from the TIF District are pledged to the Debt Service Fund pursuant to the Pledge Agreement
(hereinafter defined). There is also appropriated to the Debt Service Fund (i) amounts over the minimum
purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund
in accordance with Section 1.03 hereof; (ii) capitalized interest financed from Bond proceeds; and (iii) rounding
in the amount of $1,489.52.
4.02. Redemption Fund. All proceeds of the Bonds, less the appropriations made in Section 4.01
hereof and the costs of issuance of the Bonds, will be deposited in a separate fund (the "Redemption Fund") to
be used solely to pay the Temporary Bond on February 1, 2026, which is the maturity date of the Temporary
Bond. Any balance remaining in the Redemption Fund after the payment in full of the Temporary Bond shall
be deposited in the Debt Service Fund herein created for the Bonds.
4.03. Pledge Agreement. A Second Amended and Restated Tax Increment Pledge Agreement
between the City and the Authority, to be dated the date of issuance and delivery of the Bonds (the "Pledge
Agreement"), is hereby approved and shall be executed by the Mayor and the City Manager in substantially
the form now on file with the City, with such additions, deletions, and other changes as are approved by the
City Manager. The Pledge Agreement is to be executed and delivered in order to satisfy the requirements
of Section 469.178, subdivision 2, Section 475.58, subdivision 1, and Section 475.61, subdivision 1 of the
Act. The Pledge Agreement creates rights in the City and the Authority but is not intended to create duties
or obligations of the City or the Authority to any other persons (including the beneficial or registered owners
of the Bonds) with respect to the Tax Increment Revenues or other revenues described or referenced in the
Pledge Agreement, except to the extent required by applicable law, and is not intended to create rights in or
claims by any other persons (including the beneficial or registered owners of the Bonds) with respect to the
Tax Increment Revenues or other revenues described or referenced in the Pledge Agreement, except to the
extent required by applicable law. The Pledge Agreement amends and restates the Amended and Restated
Tax Increment Pledge Agreement, dated the date of issuance of the Temporary Bond, which amends and
restates the Tax Increment Pledge Agreement, dated the date of issuance of the Series 2021A Temporary
Bond, between the City and the Authority.
4.04. Tax Increment Revenues. The estimated amount of the Tax Increment Revenues available
to pay debt service on the Bonds is not less than twenty percent (20%) of the Project Costs. The total
Project Costs are estimated to be at least equal to the amount of the Bonds.
4.05. General Obligation Pledge. For the prompt and full payment of the principal of and interest
on the Bonds, as the same respectively become due, the full faith, credit, and taxing powers of the City are
irrevocably pledged. If a payment of principal of or interest on the Bonds becomes due when there is not
sufficient money in the Debt Service Fund to pay the same, the Finance Director is directed to pay such
principal or interest from the general fund of the City, and the general fund will be reimbursed for those
advances out of the proceeds of Tax Increment Revenues when received.
4.06. Debt Service Coverage. It is hereby determined that the estimated collection of the Tax
Increment Revenues for the payment of principal of and interest on the Bonds will produce at least five
4924-8833-8565.2 6
percent (5%) in excess of the amount needed to meet, when due, the principal and interest payments on the
Bonds and that no tax levy is needed at this time.
4.07. Prior Debt Service Fund. The debt service fund heretofore established for the Temporary
Bond pursuant to the resolution providing for the issuance and sale of the Temporary Bond shall be closed
following the payment of the Temporary Bond, and all monies therein shall be transferred to the Debt Service
Fund herein created.
4.08. Certificate of Manager of Property Records and Taxation as to Registration. The City
Manager is authorized and directed to file a certified copy of this resolution with the Manager of Property
Records and Taxation of Anoka County, Minnesota and to obtain the certificate required by Section 475.63
of the Act.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other certificates, affidavits and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and under their control, relating to the
validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be
deemed representations of the City as to the facts stated therein.
5.02. Certification as to Official Statement. The Mayor, the City Manager, and the Finance
Director are authorized and directed to certify that they have examined the Official Statement prepared and
circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and
belief the Official Statement is a complete and accurate representation of the facts and representations made
therein as of the date of the Official Statement.
5.03. Closing. Certificates. The Mayor, the City Manager, and the Finance Director are hereby
authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a
condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or
the organization of the City or incumbency of its officers, at the closing the Mayor, the City Manager, and
the Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence of
material litigation, and the Finance Director shall also execute and deliver a certificate as to payment for
and delivery of the Bonds.
5.04. Electronic Signatures. The electronic signature of the Mayor, the City Manager, the
Finance Director, and/or the City Clerk to this resolution and to any certificate authorized to be executed
hereunder shall be as valid as an original signature of such party and shall be effective to bind the City
thereto. For purposes hereof, (i) "electronic signature" means a manually signed original signature that is
then transmitted by electronic means; and (ii) "transmitted by electronic means" means sent in the form of
a facsimile or sent via the internet as a portable document format ("pdf') or other replicating image attached
to an electronic mail or internet message.
5.05. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of
Bond proceeds allocable to the payment of issuance expenses in accordance with the closing memorandum
to be prepared and distributed by Ehlers and Associates, Inc., the municipal advisor to the City, on the date
of closing.
Section 6. Book -Entry System; Limited Obligation of City.
4924-8833-8565.2
6.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed
fully registered Bond for each maturity set forth in Section 1.04 hereof. Upon initial issuance, the ownership
of the Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as
nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC").
Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept
by the Registrar in the name of Cede & Co., as nominee of DTC.
6.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar
in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no
responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for
which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which
a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with
respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any Participant or any other person other than a registered owner of
Bonds, as shown by the registration books kept by the Registrar, of any notice with respect to the Bonds,
including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a
registered owner of Bonds, or any amount with respect to principal of or interest on the Bonds. The City, the
Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in
the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of
payment of principal and interest with respect to such Bond, for the purpose of registering transfers with respect
to such Bonds, and for all other purposes. The Paying Agent will pay all principal of and interest on the Bonds
only to or on the order of the respective registered owners, as shown in the registration books kept by the
Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations
with respect to payment of principal of or interest on the Bonds to the extent of the sum or sums so paid. No
person other than a registered owner of Bonds, as shown in the registration books kept by the Registrar, will
receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City
Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede
& Co., the words "Cede & Co." will refer to such new nominee of DTC; and upon receipt of such a notice, the
City Manager will promptly deliver a copy of the same to the Registrar and the Paying Agent.
6.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the "Representation Letter") which will govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary
for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent,
respectively, to be complied with at all times.
6.04. Transfers Outside Book -Entry System. In the event the City, by resolution ofthe City Council,
determines that it is in the best interests of the persons having beneficial interest in the Bonds that they be able
to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the
availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond
certificates as requested by DTC and any other registered owners in accordance with the provisions of this
resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by
giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such
event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate
Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer,
exchange and method of payment thereof.
6.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the
contrary, so long as the Bonds are registered in the name of Cede & Co., as nominee of DTC, payments with
4924-8833-8565.2
respect to principal of, premium, if any, and interest on the Bonds and all notices with respect to the Bonds will
be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in
the Representation Letter.
Section 7. Continuing Disclosure.
7.01. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate"
means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated
the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time
to time in accordance with the terms thereof.
7.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to comply
with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the
Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including
seeking mandate or specific performance by court order, to cause the City to comply with its obligations
under this section.
Section 8. Defeasance. When all Bonds and all interest thereon have been discharged as
provided in this Section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment
of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all
Bonds is due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment
thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with
the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit.
(The remainder of this page is intentionally left blank.)
4924-8833-8565.2 9
Approved this 121 day of January, 2026, by the City Council of the City of Columbia Heights,
Minnesota.
Offered by: Deneen
Seconded by: Spriggs
Roll Call: All Ayes
ATTEST:
z /Vk— ti
J4-L--
Sai�a`lon, City Clerk
4924-8833-8565.2 10
4ma Mc
m a MArqu LSimeula, Mayor
EXHIBIT A
PROPOSALS
Lea. EHLERS
BID TABULATION
$7,635,000* Taxable General Obligation Tax Increment Refunding Bonds, Series 2026A
City of Columbia Heights, Minnesota
SALE: January 12, 2026
AWARD: KEYBANC CAPITAL MARKETS INCORPORATED
Rating: S&P Global Ratings "AA" / Stable
Taxable - Non -Bank Qualified
TRUE
MATURITY
COUPON
REOFFERING PRICE
INTEREST
NAME OF INSTITUTION
(February 1)
RATE
YIELD
RATE
KEYBANC CAPITAL MARKETS
$7,548,556.10
5.1090%
INCORPORATED
Cleveland, Ohio
2029
4.500%
4.150%
2030
4.500%
4.200%
2031
4.500%
4.250%
2032
4.500%
4.300%
2033
4.500%
4.350%
2034
4.500%
4.400%
2035
4.500%
4.450%
2036
4.500%
4.500%
2037
4.500%
4.550%
2038
5.000%
4.700%
2039
5.000%
4.750%
2040
5.000%
4.850%
2041
5.000%
4.900%
2042
5.000%
5.000%
2043
5.000%
5.050%
2044
5.000%
5.100%
20451
5.125%
5.150%
20461
5.125%
5.150%
2047'
5.125%
5.150%
20482
5.200%
5.250%
20492
5.200%
5.250%
20501
5.200%
5.250%
Subsequent to bid opening the issue size was decreased to $7,490,000.
Adjusted Price: $7,401,091.35 Adjusted Net Interest Cost: $5,876,877.99 Adjusted TIC: 5.1085%
I $1,330,000 Tenn Bond due 2047 with mandatory redemption in 2045-2046.
2 $1,545,000 Tenn Bond due 2050 with mandatory redemption in 2048-2049.
BUILDING COMMUNITIES, IT'S WHAT WE DO in(o:wehlers-inc.com 1(800)552-1171 1�y www ehlers-inc com
4924-8833-8565.2 A-1
TRUE
INTEREST
NAME, OF INSTITUTION RATE
BAIRD 5.1765%
Milwaukee, Wisconsin
NORTHLAND SECURITIES, INC. 5.1928%
Minneapolis, Minnesota
RAYMOND JAMES & 5.2814%
ASSOCIATES, INC.
Memphis, Tennessee
Bid Tabulation January 12, 2026
City of Columbia Heights, Minnesota
$7,635,000• Taxable General Obligation Tax Increment Refunding Bonds, Series 2026A Page 2
4924-8833-8565.2 A_2
EXHIBIT B
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF COLUMBIA HEIGHTS
TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND
SERIES 2026A
Date of
Rate Maturity Original Issue CUSIP
% February 1, 20 January 27, 2026
Registered Owner: Cede & Co.
The City of Columbia Heights, Minnesota, a duly organized and existing municipal corporation in
Anoka County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby
promises to pay to the Registered Owner specified above or registered assigns, the principal sum of
$ on the maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above (calculated on the basis of a 360 day year of twelve 30 day months), payable
February 1 and August 1 in each year, commencing February 1, 2027, to the person in whose name this
Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the
immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the
principal hereof are payable in lawful money of the United States of America by check or draft by Bond
Trust Services Corporation, Minneapolis, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and
Authenticating Agent, or its designated successor under the Resolution described herein. 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.
The City may elect on February 1, 2027, and on any day thereafter to prepay the Bonds. Redemption
may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine.
If less than all Bonds of a maturity are called for redemption, the City will notify The Depository Trust
Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the
amount of each participant's interest in such maturity to be redeemed and each participant will then select by
lot the beneficial ownership interests in such maturity to be redeemed. All prepayments will be at a price of par
plus accrued interest.
The Bonds maturing on February 1, 2047 and February 1, 2050 shall hereinafter be referred to
collectively as the "Term Bonds." The principal amount of the Term Bonds subject to mandatory sinking
fund redemption on any date may be reduced through earlier optional redemptions, with any partial
redemptions of the Term Bonds credited against future mandatory sinking fund redemptions of such Term
Bonds in such order as the City shall determine. The Term Bonds are subject to mandatory sinking fund
redemption and shall be redeemed in part at par plus accrued interest on February 1 of the following years
and in the principal amounts as follows:
B-1
4924-8833-8565.2
Sinking Fund Installment Date
February 1, 2047 Tenn Bond
Principal Amount
2045
$420,000
2046
445,000
2047*
465,000
* Maturity
February 1.2050 Term Bond
Principal Amount
2048
$490,000
2049
515,000
2050*
540,000
* Maturity
This Bond is one of an issue in the aggregate principal amount of $7,490,000, all of like original
issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution
adopted by the City Council on January 12, 2026 (the "Resolution"), for the purpose of providing money
to aid in refunding certain outstanding general obligations of the City, thereby providing permanent
financing for public redevelopment costs of projects in the Alatus TIF District (the "TIF District") in the
City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws
of the State of Minnesota, including Minnesota Statutes, Chapters 469 and 475, as amended, including
Sections 469.174 through 469.1794, particularly Section 469.178, subdivision 5, and Section 475.67,
subdivision 3. The principal hereof and interest hereon are payable primarily from tax increments resulting
in increases in the taxable value of real property in the TIF District, as set forth in the Resolution to which
reference is made for a full statement of rights and powers thereby conferred. The Columbia Heights
Economic Development Authority (the "Authority") has pledged the tax increments from the TIF District
to the City for payment of the principal of and interest on the Bonds, pursuant to the terms of a Second
Amended and Restated Tax Increment Pledge Agreement of even date herewith between the City and the
Authority. The full faith and credit of the City is irrevocably pledged for payment of this Bond and the City
Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any
deficiency in tax increment revenues pledged, which taxes may be levied without limitation as to rate or
amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or
any integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner
hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with
a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or
the owner's attorney; and may also be surrendered in exchange for a Bond of other authorized
denominations. Upon such transfer or exchange the City will cause a new Bond to be issued in the name
of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same
rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge
required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
notice to the contrary.
B-2
4924-8833-8565.2
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions
and things required by the home rule charter of the City and the Constitution and laws of the State of
Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this
Bond in order to make it a valid and binding general obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required, and that the issuance of
this Bond does not cause the indebtedness of the City to exceed any constitutional, charter, or statutory
limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Columbia Heights, Anoka County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the
Mayor and City Manager and has caused this Bond to be dated as of the date set forth below.
Dated: January 27, 2026
CITY OF COLUMBIA HEIGHTS,
MINNESOTA
(Facsimile) (Facsimile)
Mayor City Manager
CERTIFICATE OF AUTHENTICATION
This is a Bond delivered pursuant to the Resolution mentioned within.
BOND TRUST SERVICES CORPORATION
By
Authorized Representative
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
B-3
4924-8833-8565.2
TEN COM -- as tenants in common
TEN ENT -- as tenants by entireties
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
UNIF GIFT MIN ACT
Custodian
(Cust) (Minor)
under Uniform Gifts or Transfers to Minors
Act, State of
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint attorney to transfer the said Bond
on the books kept for registration of the within Bond, with full power of substitution in the premises.
Dated:
Notice:
Signature Guaranteed:
The assignor's signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every particular, without alteration or
any change whatever.
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer
Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York
Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as
may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in
accordance with the Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is
held by joint account.)
B-4
4924-8833-8565.2
Please insert social security or other identifying
number of assignee
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the books
of the Registrar in the name of the person last noted below.
Signature of
Date of Repistu•ation Registered Owner Officer of Re ig s
Cede & Co.
Federal ID #13-2555119
B-5
4924-8833-8565.2