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Res 1983 - 97 Awarding Sale of Tax Increment BondsEXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA HELD: NOVEMBER 1, 1983 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Mendota Heights, Dakota County, Minnesota, was duly held at the City Hall in said City on the 1st day of November, 1983, at 7:30 P.M. for the purpose of opening, considering bids for and awarding the sale of $1,000,000 General Obligation Tax Increment Bonds of 1983 of said City. The following members were present: Mayor Lockwood Councilmen Mertensotto, Losleben, Hartmann, Witt and the following were absent: none The Clerk presented affidavits showing publication of notice of call for bids on $1,000;000 General Obligation Tax Increment Bonds of 1983 of the City, for which bids were to be •received at this meeting, in accordance with the resolution adopted by the City Council on October 4, 1983. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475, and were approved and ordered placed on file. The Council proceeded to receive and open bids for the sale of the Bonds. The following bids were received: Bidder Interest Rate Net Interest Cost BIDS RECEIVED CITY OF MENDOTA HEIGHTS $1,000,000 TAX INCREMENT DISTRICT BONDS NOV, 1, 1983 ACCOUNT FIRST NATIONAL BANK St. Pau] ,Minn. Blyth Eastman Paine Webber Co. First National Bank, Mpls. Dougherty Dawkins Strand & Yost M.H. Novick Co. Robert S.C. Peterson Co. Craig Hallum Inc. Cherokee State Bank Dakota County State Bank CRONIN & ""ARCOTTE CO. INC. Minneapolis, Minn. PIPER JAFFRAY & HOPWOOD INC. Minneapolis, Minn. E.F. Hutton Co. R.W. Baird & Co. Moore Juran & Company NORWEST BANK Minneapolis, Minn MERRILL LYNCH !HITE WELD CAPITAL American National Bank & Trust Juran & Moody Inc. Blunt Ellis Lowie Co. Dean Witter Reynolds Inc. F & M Marquette Bank Miller Schroder Municipals RATES 6.80% 1986 6.90 1987 7.00 1988 7.30 1989 7.50 1990 7.80 1991 8.00 1992 8.30 1993 6.7% 7.0 7.2 7.4 7.6 7.8 8.0 8.25 7.7% 7.75 8 8.25 8.5 8 % 8.2 8.4 8.6 1986 1987 1988 1989 1990 1991 1992 1993 1986/89 1990 1991 1992 1993 1986/1990 1991 1992 1993 :Award made to the First National Bank Account DISCOUNT $ COST % RPT $10,010 $485,100 7.887 10,000 486,818.75 7.915 9,824 505,011.50 8.211 9,996 517,446 8.413 The Council then proceeded to consider and discuss the bids, after which member Losleben introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BID ON SALE OF $1,000,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 AND PLEDGING FOR THE SECURITY THEREOF TAX INCREMENTS FROM TAX INCREMENT FINANCING REDEVELOPMENT DISTRICTS A, B & C WHEREAS: A. The City Council of the City of Mendota Heights has heretofore created and modified Development District No. 1 (the "Development District") pursuant to the provisions of Minnesota Statutes, Chapter 472A, and has approved a development program (the "Program") with respect to the Development District; and B. The Council has also approved a tax increment financing plan (the "Plan") and created three tax increment financing districts designated as A, B & C (collectively the "Tax Increment District") under the provisions of Minnesota Statutes, Section 273.71 to 273.78. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Mendota Heights, Minnesota, as follows: 1. The bid of First National Bank of St. Paul (the "Purchaser") to purchase $1,000,000 General Obligation Tax Increment Bonds of 1983 of the City (hereinafter referred to as "Bonds" or individually as "Bond"), in accordance with the notice of bond sale, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ 990,000.00 , plus interest accrued to settlement 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 City Clerk is directed to retain the deposit of said bidder and to forthwith return the good faith checks or drafts to the unsuccessful bidders. 2. The Bonds of the City shall be initially dated November 1, 1983 and shall be issued forthwith as fully registered Bonds. The Bonds initially delivered to the Purchaser shall be numbered R-1 and upward, in the denomination of $5,000 or any integral multiple thereof. The Bonds shall mature on February 1 in the amounts and years as follows: $100,000 in each of the years 1986 to 1989; and $150,000 in each of the years 1990 to 1993. ' All dates are inclusive. 3.. The Bonds shall provide funds to finance certain capital and administration costs in accordance with the Plan within the Development District (the "Project"). Pursuant to the Plan adopted by the City, tax increments derived from the tax increment financing district established pursuant to the Plan, have been pledged to the payment of the Bonds and interest thereon. The estimated collection of the tax increments exceeds 20% of the cost of the Project. It is not anticipated that any net proceeds from the Project will be available for the payment of debt service on the Bonds. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds herein authorized. Work on the Project shall proceed with due diligence to completion. 4. The Bonds shall mature in the years, and shall bear interest payable August 1, 1984 and semiannually there- after on February 1 and August 1 of each year at the respective rates per annum set opposite the maturity years as follows: Maturity Years Interest Rates 1986 6.80% 1987 6.90 1988 7.00 1989 7.30 1990 7.50 1991 7.80 1992 8.00 1993 8.30 5. All Bonds of this issue maturing in the years 1991 to 1993, both inclusive, shall be subject to redemption and prepayment at the option of the City on Feburary 1, 1990 and on any interest payment date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the bank where the Bonds are payable and to each registered holder of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption, shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected. Provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and the Bond Registrar duly executed by the holder thereof or his attorney duly authorized in writing) and the City shall execute and the Bond Registrar shall authenticate and deliver to the holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denomina- tions, as requested by such holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. The First National Bank , in St. PaQ1 , Minnesota is appointed to act as bond registrar and transfer agent (the "Bond Registrar") and shall do so unless and until a successor Bond Registrar is duly appointed. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holder) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution. 7. The bonds to be issued hereunder shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA DAKOTA COUNTY CITY OF MENDOTA HEIGHTS R- $ GENERAL OBLIGATION TAX INCREMENT BOND OF 1983 Date of Original Interest Rate Maturity Date Issue CUSIP November 1, 1983 KNOW ALL PERSONS BY THESE PRESENTS that the City of Mendota Heights, Dakota County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to , or registered assigns, in the manner hereinafter referred to, the principal sum of DOLLARS on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date") commencing August 1, 1984 at the rate per annum specified above (calculated on the basis of a 360 -day year of twelve 30 -day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of , in , Minnesota, a duly organized and validly existing under the laws of the (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly apointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid or duly provided for shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. 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 Issuer outstanding on the date of original issue hereof and the date of its actual original issuance and delivery does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Mendota Heights, Dakota County, Minnesota, by its City Council has caused this Bond to be executed in its behalf by the facsimile signatures of the Mayor and the Clerk, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration and Authentication: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Resolution. Bond Registrar By Authorized Signature Registrable by: Payable at: CITY OF MENDOTA HEIGHTS, DAKOTA COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile Clerk ON REVERSE OF BOND All Bonds of this issue maturing in the years 1991 to 1993, both inclusive, are subject to redemption and prepayment at the option of the Issuer, on February 1, 1990 and on any Interest Payment Date thereafter at par and accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date shall be prepaid first; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Published notice of redemption shall in each case be given in accordance with law, and mailed notice of redemption shall be given to the Bond Registrar and mailed notice of redemption to the Holders of the Bonds. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date, a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected. Provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or the Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and the Bond Registrar duly executed by the Holder thereof or his attorney duly authorized in writing) and the Issuer shall execute and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. This Bond is one of an issue in the total principal amount of $1,000,000 all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on October 4, 1983 (the "Resolution") for the purpose of providing money for the payment of certain capital and administration costs within Development District No. 1 established by the Issuer and is payable out of the General Obligation Tax Increment Bonds of 1983 Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of the principal and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. The Bonds are issuable solely as fully registered Bonds in the denominations of $5,000 and integral multiples thereof and are exchangeable for fully registered Bonds of other denominations in equal aggregate principal amounts and in authorized denominations at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. This Bond is transferable by the Holder in person or by his attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an authorized denomination, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity, and bearing interest at the same rate. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond. The Issuer and the Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Bond be overdue and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security until the Certificate of Authentication hereon shall have been executed by the Bond Registrar. The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the 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 to Minors Act (State) 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 does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: 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. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 8. The Bonds shall be executed on behalf of the City by the signatures of its Mayor and Clerk and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed facsimile; provided further that both of such signatures may be printed facsimiles, in which event the Bonds shall also be executed manually by the Bond Registrar as authenticating agent as provided in Minnesota Statutes, Section 475.55 and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence'of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until delivery. 9. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless and until a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized officer of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting the date of authentication in the space provided, except that for purposes of the Bonds delivered to the Purchaser, the Bond Registrar shall insert as a date of authentication the date of original issue, which date is November 1, 1983. The executed Certificate of Authentication on each Bond shall be conclusive evidence that is has been authenticated and delivered under this resolution. 10. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute, and the Bond Registrar shall authenticate, insert the date of authentication, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond shall be issued in the name of "bearer" or any similar designation. At the option of the holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal- amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar, and upon payment, if the City shall so require, of such charges. Whenever any Bonds are so surrendered for exchange, the City shall execute, and the Bond Registrar shall authenticate, insert the date of authentication, and deliver the Bonds which the holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the holder thereof or his attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond. 11. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest on any Bond shall be paid on each interest payment date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business . on the fifteenth day of the calendar month next preceding such interest payment date (the "Regular Record Date"). Any such interest not so timely paid or duly provided for shall cease to• be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of such defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than 10 days prior thereto. 13. The City and the Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest on (subject to the payment provisions in paragraph 12 above), on such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. • The Bonds when so prepared and executed shall be delivered by the Treasurer to the Purchaser thereof upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. There is hereby created a special fund to be designated "General Obligation Tax Increment Bonds of 1983 Fund" (the "Fund") to be held and administered by the Treasurer separate and apart from all other funds of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds herein authorized and the interest thereon have been fully paid. There shall be maintained in the Fund two separate accounts, to be designated the "Capital Account" and the "Debt Service Account", respectively. The proceeds of the sale of the Bonds herein authorized, less any accrued interest received thereon, and less any amount paid for the Bonds in excess of $990,000, and less capitalized interest in the amount of $ 120,000 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before August 1985 ), shall be credited to the Capital Account, 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 insurred to the king authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law. There is hereby. pledged and there shall be credited to the Debt Service Account (a) all accrued interest received upon delivery of the Bonds, (b) all funds paid for the Bonds in excess of $990,000, (c) capitalized interest in the amount of $120,000 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before Au uct 1985 ), (d) collections of all tax increments' derived from the Tax Increment District, (e) any collections of all taxes hereafter levied in the event that the tax increments are insufficient for the payment of the principal and interest on the Bonds, and (f) all funds remaining in the Capital Account after completion of the Project and payment of the costs thereof. The Debt Service Account herein created shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds issued hereunder and any other general obligation Bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the Bonds) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments. 16. The County Auditor of Dakota County has certified the original assessed value (as defined in Minnesota Statutes, Section 273.73, Subdivision 7) of property in the Tax Increment District as of January 2, 1980 is $5,486,746. The County Auditor shall determine in each year if the then current assessed value of property in the Tax Increment District exceeds the original assessed value, and shall calculate, in the manner provided in Minnesota Statutes, Section 273.76, Subdivision 3, the captured assessed value (as defined therein) attributable to the Tax Increment District. The City hereby determines to retain 100% of the captured assessed value for purposes of tax increment financing. The County Auditor shall, in each such year, compute the mill rates to be extended against the captured assessed value in the manner provided in Minnesota Statutes, Section 273.76, Subdivision 3, and the tax generated thereby shall constitute the tax increment revenue for the year in which it is received. The County Treasurer will remit to the City the tax increment revenue so received until the cost of the Project, including principal of the interest on the Bonds, has been paid and the City has been fully reimbursed for any principal of and interest on the Bonds which have been paid from any taxes levied. The City hereby appropriates the tax increment revenue to the Debt Service Account, which appropriation shall continue until all of the Bonds, and any additional bonds payable from the Debt Service Account, are paid or discharged. The City hereby expressly reserves the right to use the tax increment revenue to finance costs set forth in the Plan not financed hereby or to finance costs of other projects to be undertaken from time to time within the Development District in accordance with the Program and the Plan. 17. On or before October 10 of each year, the Clerk shall certify to the County Auditor of Dakota County the amount of tax increments and any other funds appropriated to and then held in the Debt Service Account and the estimated collections of tax increments to be received in the next succeeding year. In the event that it is anticipated that the aggregate of said sums will not be sufficient to pay the principal and interest on the Bonds to become due in the first calendar year there- after and the first six months of the succeeding calendar year, the City Council shall pass a resolution requesting the County Auditor of Dakota County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in the Debt Service Account and said estimated collections of tax increments to pay the principal and interest on the Bonds to become due during said period. The tax increments are such that if collected in full they, together with estimated collections of other revenues herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 18. The Clerk is hereby directed to file a certified copy of this resolution with the County Auditor of Dakota County, Minnesota, together with such other information as he shall require, and to obtain from the Auditor his certificate that the Bonds have been entered in the Auditor's Bond Register. 19. 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. 20. Notwithstanding any provisions herein to the contrary the City reserves the right to terminate, reduce, or apply to other lawful purposes the tax increments herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. The motion for the adoption of the foregoing resolution was duly seconded by member Witt and upon vote being taken thereon, the following voted in favor thereof: All Yea and the following voted against the same: none Whereupon said resolution was declared duly passed and adopted. • STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS I, the undersigned, being the duly qualified and acting Clerk of the City of Mendota Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the opening and considering bids for, and awarding the sale of $1,000,000 General Obligation Tax Increment Bonds of 1983 of said City. WITNESS my hand and the seal of said City this _474/ day of 72s�c,, 1983. (SEAL) Clerk EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MENDOTA HEIGHTS, MINNESOTA HELD: October 4, 1983 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Mendota Heights, Minnesota, was duly held at the City Hall in said City on the 4th day of October, 1983, at 7:30 P.M. The following members were present: Mayor Lockwood, Council Person Mertensotto, Losleben, Hartmann, Witt and the following were absent: none Member MPrtPnsnttn resolution and moved its adoption: introduced the following RESOLUTION PROVIDING FOR PUBLIC SALE OF $1,000,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. It is hereby found, determined and declared that this City should issue $1,000,000 General Obligation Tax Increment Bonds of 1983 to finance certain capital and administration costs within Development District No. 1 of the City. 2. This Council shall meet at the time and place specified in the form of notice hereinafter contained for the purpose of opening and considering sealed bids for, and award- ing the sale of $1,000,000 General Obligation Tax Increment Bonds of 1983 of said City. 3. The City Clerk is hereby authorized and directed to cause notice of the time, place and purpose of said meeting to be published in the official newspaper of the City and in Commercial West not less than ten days in advance of date of sale, as provided by law, which notice shall be in substantially the form set forth in Exhibit A attached hereto. 4. The terms and conditions of said bonds and the sale thereof are fully set forth in the "Official Terms of Bond Sale" attached hereto as Exhibit B and incorporated herein by reference. The motion for the adoption of the foregoing resolution was duly seconded by member Witt and upon a vote being taken thereon, the following voted in favor thereof: All Yea and the following voted against the same: none Whereupon said resolution was declared duly passed and adopted. STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS I, the undersigned, being the duly qualified and acting Clerk of the City of Mendota Heights, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the City Council held on the date therein indicated, which are on file and of record in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates to the proposed sale of $1,000,000 General Obligation Tax Increment Bonds of 1983 of said City. WITNESS my hand as such Clerk and the official seal of the City this -¢ day of (lAiPr , 1983. /____yeteretel,n) *)',11--(1-4e-gf-12-69%- City Clerk .(SEAL,) r;.r •\ � EXHIBIT A NOTICE OF BOND SALE $1,000,000 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY MINNESOTA GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 These bonds will be offered Tuesday, November , 1983, at 7:30 o'clock P.M., Central Time, at the City Hall, in Mendota Heights, Minnesota. The bonds will have a date of original issue of November 1, 1983 and interest will be payable August 1, 1984 and semiannually thereafter. The bonds will be general obligations of the Issuer for which its unlimited taxing powers will be pledged. The bonds will mature on February 1 in the amounts and years as follows: $100,000 in each of the years 1986 to 1989; and $150,000 in each of the years 1990 to 1993. All dates are inclusive. All bonds maturing on or after February 1, 1991 are subject to prior payment on February 1, 1990 and any interest payment date thereafter at a price of par and accrued interest. Sealed bids for not less than $990,000 and accrued interest on the principal sum of $1,000,000 will be accepted. No rate of interest nor the net effective average rate of the issue may exceed the maximum rate allowed by law at the time of sale. An acceptable approving legal opinion will be furnished by Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota. The proceeds will be used to defray finance certain capital and administration costs of Development District No. 1 of the City. Dated: October 4, 1983 BY ORDER OF THE CITY COUNCIL /s/ Kathleen Swanson City Clerk Additional information may be obtained from: Shaughnessy & Co., Inc. 151 Endicott Arcade St. Paul, Minnesota 55101 Telephone No: 612-227-6691 EXHIBIT B OFFICIAL TERMS OF BOND SALE $1,000,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1983 CITY OF MENDOTA HEIGHTS DAKOTA COUNTY MINNESOTA NOTICE IS HEREBY GIVEN that these bonds will be offered for sale according to the following terms: TIME AND PLACE: TYPE OF BONDS: DATE OF ORIGINAL ISSUE OF BONDS: Tuesday, November , 1983, at 7:30 P.M., Central Time at the City Hall in Mendota Heights, Minnesota. Fully registered general obligation bonds, $5,000 or larger denomina- tions at the option of the bidder. November 1, 1983. PURPOSE: To finance certain capital and administration costs of Development District No. 1 of the City. INTEREST PAYMENTS: August 1, 1984, and semiannually thereafter on February 1 and August 1. MATURITIES: February 1 in each of the years and amounts as follows: 1986 $100,000 1987 $100,000 1988 $100,000 1989 $100,000 1990 $150,000 1991 $150,000 1992 $150,000 1993 $150,000 A11 dates are inclusive. REDEMPTION: BOND REGISTRAR: CUSIP NUMBERS: • At the option of the issuer, bonds maturing on or after February 1, 1991 shall be subject to prior payment, on February 1, 1990 and any interest payment date thereafter, at a price of par and accrued interest. If redemption is in part, -those bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the bonds having a common maturity date are called for prepayment, the specific bonds to be prepaid will be chosen by lot by the Registrar. The issuer will name the Registrar which shall be subject to applic- able SEC regulations. Principal will be payable at the main corpor- ate office of the Registrar and interest will be payable by check or draft of the Registrar mailed to the registered holder of the bond at his address as it appears on the books of the Registrar. The issuer will pay reasonable and customary charges for the services of the Registrar. It is anticipated that CUSIP numbers will be printed on said bonds, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for said bonds in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the Purchaser. DELIVERY: TYPE OF BID: RATES: AWARD: Forty days after award subject to approving legal opinion of Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota. Bond printing and legal opinion will be paid by issuer and delivery will be anywhere in the continental United States without cost to the purchaser. Legal opinion will be printed on the bonds at the request of the successful bidder. Sealed bids of not less than $990,000 and accrued interest on the principal sum of $1,000,000 from date of original issue of the bonds to date of delivery must be filed with the undersigned prior to the time of sale. Bids must be unconditional except as to legality. A certified or cashier's check in the amount of $20,000, payable to the order of the Treasurer of the issuer must accompany each bid, to be forfeited as liquidated damages if bidder fails to comply with accepted bid. Bids for the bonds should be addressed to: Lawrence Shaughnessy, Treasurer City Hall 750 So. Plaza Drive Mendota Heights, Minnesota 55120 All rates must be in integral multiples of 1/10th or 1/8th of 1% in ascending order. No rate nor the effective rte for the entire issue of the bonds shall exceed the maximum rate allowed by law at the time of sale. No limitation is placed upon the number of rates which may be used. Award will be made solely on the basis of lowest dollar interest cost, determined by addition of any discount to and deduction of any premium from the total interest on all bonds from their date to their stated maturity. The Issuer reserves the right to reject any and all bids, to waive informalities and to adjourn the sale. Dated: October 4, 1983 BY ORDER OF THE CITY COUNCIL /s/ Kathleen Swanson City Clerk Additional information may be obtained from: Shaughnessy & Co., Inc. 151 Endicott Arcade St. Paul, Minnesota 55101 Telephone No: 612-227-6691