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RES 1981-05 - 000061280 RESOLUTION NO. 5 - 1981 RESOLUTION AWARDING THE SALE OF $2,200,000 GENERAL OBLIGATION TAX INCREMENT REDEVELOPMENT BONDS OF 1981; FIXING THEIR FORM AND SPECIFICATIONS: DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as follows: 1. The bid of John Nuveen and Company, Inc., of Chicago, Illinois, to purchase $2,200,000 General Obligation Tax Increment Redevelopment Bonds of 1981 of the City described in the notice of sale thereof, is hereby found and determined to be the highest and best bid received pursuant to duly advertised notice of sale and shall be and is hereby accepted, such bid being to purchase such bonds at a price of $2,169,200.00 plus accured interest to date of delivery, such bonds to bear interest as follows: Year Amount Rate Year Amount Rate 1984 $ 50,000 7.10% 1992 $125,000 8.00% 1985 75,000 7.20% 1993 150,000 8.15% 1986 75,000 7.30% 1994 175,000 8.30% 1987 75,000 7.40% 1995 175,000 8.45% 1988 100,000 7.50% 1996 200,000 8.60% 1989 100,000 7.60% 1997 200,000 8.75% 1990 125,000 7.75% 1998 225,000 8.90% 1991 125,000 7.90% 1999 225,000 9.00% The Sum of $12,337, being the amount bid in excess of $2,156,863, shall be credited to the bond sinking fund hereinafter created for the Redevelopment Bonds. The City Manager is directed to retian the good faith check of the successful bidder pending completion of the sale and delivery of the bonds. The city Manager and the financial consultants are directed to return the checks of the unsuccessful bidders forthwith. 2. The City shall forthwith issue and sell its General Obligation Tax Increment Redevelopment Bonds of 1981 (the "Bonds ") in the principal amount of $2,200,000, dated February 1, 1981, the Bonds being 440 in number and numbered 1 to 440, both inclusive, in the denomination of $5,00 each, bearing interest as above set forth, all interest payable August 1, 1981, and semiannually thereafter on February 1 and August 1 in each year, and which Bonds mature serially on February 1 in the amounts and in each of the years 1984 to 1999, as set forth in paragraph 1. All bonds maturing after February 1, 1990, are subject to prior redemption on said date and any interest payment date thereafter at par plus accrued interest. 3. Both principal of and interest on the Bonds shall be payable at the main office of the First National Bank of Minneapolis, of Minneapolis, Minnesota, and the City shall pay the reasonable charges of said bank for its services as paying agent. 4. 'The Bonds and the interest coupons to be thereto attached shall be in substantially the following form: No. UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF ANOKA CITY OF FRIDLEY $5,000 GENERAL OBLIGATION TAX INCREMENT REDEVELOPMENT BOND OF 1981 KNOW ALL MEN BY THESE PRESENTS that the City of Fridley, Anoka County, Minnesota, acknowledges itself to be indebted and, for value received, hereby promises to pay to bearer the sum of FIVE THOUSAND DOLLARS on the 1st day of February, 19 , and to pay interest thereon from the date hereof until the principal amount is paid at the rate of percent (_%) per annum, interest to maturity payable of August and semiannually thereafter on the 1st day of February and the 1st day of August in each year 11 12 Page 2 -- RESOLUTION NO.5 - 1981 in accordance with and upon presentation and surrender of the interest coupons hereto attached as they severally become due. Both principal of and interest on this bond are payable at the main office of the First National Bank of Minneapolis, in Minneapolis, Minnesota, in any coin or currency of the United States of America which on the date of payment is legal tender for public and private debts. All bonds of this issue maturing after February 1, 1990, are subject to prior redemption on said date and any interest payment date thereafter at par plus accrued interest. This bond is one of an issue of bonds in the total principal amount of $2,200,000, all of like date and tenor except as to maturity, interest rate, redemption privilege and serial number, all issued by the City for the purpose of providing funds to defray the expenses incurred and to be incurred in financing public improvement costs within a Tax Increment Financing District, pursuant to and in full confirmity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 462.521 and 273.71 to 273.78, and the Home Rule Charter of the City, and is payable primarily from tax increments resulting from tax levies upon the increased value of property within said Project as pledged in a certin Tax Increment Agreement executed by the City and the Housing and Redevelopment Authority of the City of Fridley on September 13, 1980, but constitutes a general obligation of the City and, to provide moneys for the prompt and full payment of said principal and interest as the same become due, the full faith and credit of the City is hereby irrevocably pledged, and the City Council will levy ad valorem taxes, if required for such purpose, which taxes may be levied on all of the taxable property in the City without limitation as to rate or amount. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota and the Home Rule Charter of the City to be done, to happend 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 that this bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery does not exceed any constitutional, statutory or charter limitation thereon. IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota, by its City Council, has caused this bond to be executed by the facsimile signature of the Mayor and the manual signature of the City Manager and sealed with a facsimile of the corporate seal of the City and the interest coupons hereto attached to be executed and authenticated by the facsimile signatures of said officers, all as of February 1, 1981. (manual signature) CITY MANAGER (facsimile seal) (facsimile signature) MAYOR - WILLIAM J. NEE (Form of Coupon) No. $ On the 1st day of August (February), 19 the City of Fridley, Anoka ' County, Minnesota, will pay to bearer, at the main office of the First National Bank of Minneapolis, in Minneapolis, Minnesota the amount shown hereon for interest then due on its General Obligation Tax Increment Redevelopment Bond of 1981, dated February 1, 1981, No. (facsimile signature) MAYOR - WILLIAM J. NEE (facsimile signature) CITY MANAGER 13 0 Page 3 -- RESOLUTION NO. 5 - 1981 5. The Bonds issued hereunder or additional Redevelopment Bonds similarly authorized and issued shall be payable from the General Obligation Tax Increment Redevelopment Bonds of 1981 Fund (the "Tax Increment Redevelopment Bonds Sinking Fund ") hereby created, and the City hereby pledges to said fund the proceeds of any special assessments hereinafter levied and all tax increments from the Project Area in which the Project financed by the Tax Increment Redevelopment Bonds (the "Project ") is located and received by the City from the Housing and Redevelopment Authority pursuant to the Tax Increment Agreement (the "Tax Increment Agreement ") executed by the City and the Authority on 9/13/80. If any payment of principal or interest on the Tax Increment Redevelopment Bonds shall become due when there is not sufficient money in said fund to pay the same, the City Treasurer shall pay such principal or interest from the general fund of the City and such fund may be reimbursed for such advances out of proceeds of tax increments and tax levies when received. 6. The tax increments, including any excess tax increments as defined in Minnesota Statutes, Secton 273.75, Subdivision 2, received from the Project pursuant to the Tax Increment Agreement are hereby irrevocably appropriated and pledged to the Tax Increment Redevelopment Bonds Sinking Fund authorized by this resolution and for the payment of the principal of and interest on any additional bonds similarly authorized and issued. 7. It is hereby determined that the above mentioned tax increments will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Tax Increment Redevelopment Bonds. The City Manager is directed to file a certified copy of this resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63. 8. It is hereby determined that the Project to be financed by the Tax Increment Redevelopment Bonds will directly and indirectly benefit the abutting property, and the City hereby covenants with the holders from time to time of the Tax Increment Redevelopment Bonds as follows: ' (a) The City will cause any assessments for the Project to be promptly levied so that the first installment will be collectible not later than 1983 and will take all steps necessary to assure prompt collection. The City Council shall cause all further actions and proceedings relative to the making and financing of the Project financed hereby to be taken with due diligence that are required for the construction of each improvement financed wholly or partly from the proceeds of the Bonds and for the final and valid levy of any special assessments and the appropriation of any other funds needed to pay the Bonds and interest thereon when due. (b) In the event of any current or anticipated deficiency in any grants, funds, investmnet income, tax increments or special assessments pledged or appropriated for payment of the principal of and interest on the Bonds; the City Council will levy ad valorem taxes in the amount of said current or anticipated deficiency. (c) The City will keep complete and accurate books and records showing all receipts and disbursements in connection with the Project, any special assessments, pledged funds, tax increments, or any taxes levied therefor and other funds appropriated for Bond payment, and all collections thereof and disbursements therefrom, moneys on hand and balance of any unpaid assessments. ' (d) The City will cause its books and records to be audited at least annually by qualified public accountants and will furnish copies of such audit reports to any interested person upon request. 9. It is hereby determined the the Project financed by these Tax Increment Redevelopment Bonds has a relationship to the comprehensive municipal plan and that the Project has been referred to the Planning Commission under the provisions of Minnesota Statutes, Section 462.356, Subdivision 2 and Minnesota Statutes, Section 462.515, and a written opinion of the Planning Commission is on file in the office of the City Clerk. 14 page 4 -- RESOLUTION NO.5 - 1981 10. The City Manager shall obtain a copy of the proposed legal opinion of Messrs. Wurst, Carroll and Pearson, P.A., of Minneapolis, Minnesota, approving the Tax Increment Redevelopment Bonds, which opinion shall be complete except as to dating thereof and shall cause said opinion to be printed on the Bonds together with a certificate to be signed by the facsimile signature of the City Manager in substantially the following form: I hereby certify that the foregoing is a full, true and correct copy of the legal opinion executed by the above named attorneys, except as to the dating thereof, which opinion has been handed to me for filing in may office prior to the time of bond delivery. (facsimile signature} City Manager, City of Fridley, Minnesota The City Manager is hereby authorized and directed to execute such certificates in the name of the City upon receipt of such opinions and to file the opinions in the City offices. 11. The Tax Increment Redevelopment Bonds shall be executed on behalf of the City by the facsimile signature of the Mayor and the manual signature of the City Manager, and the interest coupons shall be executed and authenticated by the printed facsimile signatures of the Mayor and City Manager, and the facsimile of the corporate seal of the City may, but need not be, printed thereon. The Bonds, when fully executed, shall be delivered by the City Manager and the City Treasurer to the purchaser thereof upon receipt of the purchase price, and the purchaser shall not be obligated to see to the proper application thereof. The City Manager is directed to file a certified copy of this resolution with the County Auditor of Anoka County and obtain the certificate required by Minnesota Statutes, Section 475.63. 12. The Mayor and City Manager are hereby authorized and directed to certify that they have examined the official statement or prospectus prepared and circulated in connection with the issuance and sale of the Tax Increment Redevelopment Bonds and that to the best of their knowledge and belief said statement is a complete and accurate representation of the facts and representations made therein as of the date of said official statement or prospectus as it relates to the City. 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 same, certified copies of proceedings and records of the City relating to said 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, shall be deemed representations of the City as to the facts stated therein. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 19TH DAY OF JANUARY, 1981. . MAYOR - WILLI J NEE ATTEST: CITY CLE - SID C. INMAN 0090A/1007A