83-36
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CERTIFICATION OF MINUTES RELATING TO
$5,184,620.60 GENERAL OBLIGATION REFUNDING
TAX INCREMENT BONDS OF 1983
Issuer:
City of Chanhassen, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A reqular meeting held
August lL, 1983 at ~ o'c1ock P~M., at the City Hall.
Members present: Mayor Hall11ton. Council members (;eving. Horn, Swenson
and Watson
Members absent: None
Documents Attached:
Minutes of said meeting (inclUding):
RESOLUTION NO. 83-36
RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING THE FORM AND
DETAILS AND PROVIDING FOR THE PAYMENT OF $5,184,620.60
GENERAL OBLIGATION REFUNDING TAX INCREMENT BONDS OF 1983
I, the unde~signed, being the duly qualified and
acting recording officer of the public corporation isstiing the
bonds referred to in the title of this certificate~ certify
that the documents attached hereto, as described above, have
been carefu1~y compared with the original records of said
corporation in my legal custody, from which they have been
transcribed7 that said documents are a correct and complete
transcript of the minutes of a meeting of the governing body of
said corporation, and correct and complete copies of all
resolutions and other actions taken and of all documents
approved by the governing body at said meeting, so far as they
relate to said bonds7 and that said meeting was duly held by
the governing body at the time and place and was attended
throughout by the members indicated above, pursuant to call and
notice of such meeting given as required by law.
WITNESS my hand officially as such recording officer
this ~ day of August, 1983. ~. .
_ Qa,__'T:t)
Dona W. As orth
City Manager
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Councilmember
Hamilton
introduced the
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following resolution and moved its adoption:
RESOLUTION NO. 83-36 _
RESOLUTION AUTHORIZING ISSUANCE, PRESCRIBING THE FORM AND
DETAILS AND PROVIDING FOR THE PAYMENT OF $5,184,620.60
GENERAL OBLIGATION REFUNDING TAX INCREMENT BONDS OF 1983
BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as fOllowi:.
Secti9n 1. Authorization and Sale.
(a) This Council, by its Resolution No. 83-34 adopted
July 20, 1983, awarded the sale of $5,184,620.60 General
Obligation Refunding Tax Increment Bonds of 1983 of the City to
Newman and Associates, Inc., of Denver, Colorado. Said
Resolution is incorporated herein by reference.
(b) It is now determined to be necessary and
desirable to. set forth the form and details of said bonds, and
to provide for their payment and security.
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Section 2. . Bond Terms~ Registration~ Execution and
Deliver~.
2.01. Maturities~ Interest Rates~ Denomiriations~
Payment. The Bonds shall be designated General Obligation
Refunding Tax Increment Bonds of 1983, shall be originally
dated August 1, 1983, in the case of Current Interest Bonds (as
herein defined), and August 17, 1983, in the case of Compound
Interest Bonds (as herein defined), shall mature in order of
serial numbers on February 1 and August 1 in the respective
years and amounts stated below, and shall bear interest from
date of issue until paid or duly called for redemption at the
respective annual rates set forth opposite such years and
amounts, as follows:
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2-1-84 $ 65,000 9.00' 2-1-92 $310,000 8.60'
8-1-84 70,000 9.00' 8-1-92 320,000 8.60'
2-1-85 80,000 9.00' 2-1-93 360,000 8.75'
8-1-85 80,000 9.00' 8-1-93 370,000 8.75'
2-1-86 90,000 9.00' 2-1-94 153,381.51 9.75'
8-1-86 95,000 9.00' 8-1-94 144,489.74 9.75'
2-1-87 110,000 9.00' 2-1- 95 142,814.45 9.75'
8-1-87 120,000 9.00' 8-1-95 136,175.95 9.75'
2-1-88 135,000 9.00' 2-1-96 135,955.51 9.75'
8-1-88 140,000 9.00' 8-1-96 129,636.51 9.75'
2-1-89 205,000 9.00' 2-1-97 125,090.58 10.00'
8-1-89 210,000 9.00' 8-1-97 117,852.92 10.00'
2-1-90 235,000 9.00' 2-1-98 117,120.96 10.00'
8-1-90 245,000 9.00' 8-1-98 111,544.32 10.00'
2-1- 91 270,000 9.00' 2-1-99 43,157.01 10.00'
8-1-91 290,000 8. 40% . 8-1-99 27,401.14 10.00'
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Bonds maturing 2-1-84 through 8-1-93 (Current Interest
Bonds) shall .be issued in denominations of $5,000 or any
integral mUltiple thereof. Bonds maturing 2-1-94 through
8-1-99 (Compound Interest Bonds) shall be issued in minimum
denominations as set forth below ($5,000 compounded value at
maturity), or any integral multiple thereof:
Maturity
2-1-94
8-1-94
2-1-95
8-1-95
2-1-96
8-1-96
2-1-97
8-1-97
2-1-98
8-1-98
2-1-99
8-1-99
Minimum Denomination
$1,847.97
1,762.07
1,680.17
1,602.07
1,527.59
1,456.59
1,345.06
1,281.01
1 , 2 20 . 0 1
1,161.92
1,106.59
1,053.89
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The Bonds shall be issuable only in fully registered
form. The intereat on and, upon surrender of each Bond, the
principal amount of Current Interest Bonds shall be payable by
check or draft issued by the Registrar described herein. Upon
surrender of each Compound Interest Bond at maturity, the
principal and all accrued interest thereon shall be payable by
check or draft issued by the Registrar described herein.
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2.02. Dates~ Interest Payment Dates. Each Current
Interest Bond shall be dated as of the last interest payment
date preceding the date of authentication to which interest on
the 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 shall be dated as of the date of
authentication, or (ii) the date of authentication is prior to
February 1, 1984, in which case such Bond shall be dated as_ of
August 1, 1983. The interest on the Current Interest Bonds
shall be payable on February 1 andoAugust 1 in each year,
commencing February 1, 1984, to the owner 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. The Compound Interest Bonds shall be dated as of
August 17, 1983. Accrued interest thereon, and principal
thereof, shall be payable at maturity, or upon prior
redemption, to the owner of record 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 shall appoint, and
shall maintain, a bond registrar, transfer agent and paying
agent (the Registrar). The effect of registration and the
rights and duties of the City and the Registrar with respect
thereto shall be as follows:
(a) Register. The Registrar shall keep at its
principal corporate trust office a bond register in which
the Registrar shall provide for the registration of
ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred
or exchanged.
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(b) Transfer of Bonds. Upon surrender for transfer
of any 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 shall
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 such interest payment date.
(c) Exchange of Bonds. Whenever any Bonds are
surrendered by the registered owner for exchange the
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Registrar shall 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. All Bonds surrendered upon any
transfer or exchange shall be promptly cancelled by the
Registrar and thereafter disposed of as directed by the
City.
(e) Improper or Unauthorized Transfer. When any Bond
is presented to the Registrar for transfer, the Registrar
may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of
transfer is valid and genuine and that the requested
transfer is legally authorized. The Registrar shall incur
no liability for the refusal, in good faith, to make
transfers which it, in its jUdgment, deems improper or
unauthorized.
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(f) Persons Deemed Owners. The City and the
Registrar may treat the person in whose name any Bond is at
any time registered in the bond register as the absolute
owner of such Bond, whether such Bond shall be overdue or
not, for the purpose of receiving payment of, or on account
of, the principal of and interest on such Bond and for all
other purposes, and all such payments so made to any such
registered owner or upon the owner's order shall be valid
and effectual to satisfy and discharge the liability upon
such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or
exchange of Bonds, the Registrar may impose a charge upon
the owner thereof sufficient to reimburse the Registrar for
any tax, fee or other governmental charge required to be
paid with respect to such transfer or exchange.
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(h) Mutilated, Lost, Stolen or Destroyed Bonds. In
case any Bond shall become mutilated or be destroyed,
stolen or lost, the Registrar shall deliver a new Bond of
like amount, number, maturity date and tenor in exchange
and substitution for and upon cancellation of any such
mutilated Bond or in lieu of and in substitution for any
such Bond destroyed, stolen or lost, upon the payment of
the reasonable expenses and charges of the Registrar in
connection therewith1 and, in the case of a Bond destroyed,
stolen or lost, upon filing with the Registrar of evidence
satisfactory to it that such Bond was destroyed, stolen or
lost, and of the ownership thereof, and upon furnishing to
the Registrar of an appropriate bond or indemnity in form,
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substance and amount satisfactory to it, in which both the
City and the Registrar shall be named as obligees. All
Bonds so surrendered to the Registrar shall be cancelled by
it and evidence of such cancellation shall 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 shall not be necessary to issue a new
Bond prior to payment.
2.04. Appointment of Initial Registrar. The City
hereby appoints First Trust Company of Saint Paul, St. Paul,.
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 said 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, such corporation shall be
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 shall deliver all cash and Bonds in its
possession to the successor Registrar and shall deliver the
bond register to the successor Registrar. On or before each
principal or interest due date, without further order of this
Council, the City Treasurer shall transmit to the Registrar,
from the sinking fund described in Section 3, moneys sufficient
for the payment of all principal and interest then due.
2.05. Redemption. Bonds maturing on or after
February 1, 1996 shall be subject to redemption and prepayment
at the option of the City, in whole or in part, on August 1,
1995, and any February 1 or August 1 thereafter, upon payment
of the redemption price equal to their compounded value as of
the redemption date. Compounded value shall be established by
use of the tables attached to this resolution. Bonds shall be
redeemed in inverse order of maturity dates and by lot
(selected by the Registrar among the numbers assigned by the
Registrar to the Bonds maturing on any date, said numbers being
assigned by dividing the principal amounts by the minimum
denomination specified in Section 2.01 hereofJ as to Bonds
maturing on the same date. At least thirty days prior to the
date set for redemption of any Bond prior to its stated
maturity date, the City Manager shall cause notice of the call
for redemption thereof to be publiShed in a daily or weekly
periodical publiShed in a Minnesota city of the first class, or
its metropolitan area, which circulates throughout the state
and furnishes financial news as a part of its service, and
shall cause notice of the call thereof for redemption to be
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mailed to the registered holders of any Bonds to be redeemed at
their addresses as they appear on the bond register described
in Section 2.03 hereof, and to the bank at which principal and
interest are then payable. Upon partial redemption of a Bond,
a new Bond or Bonds shall be delivered to the holder without
charge, representing the remaining principal amount outstanding.
2.06. Execution, Authentication and Delivery. The
Bonds shall be prepared under the direction of the City Manager
and shall be executed on behalf of the City by the signatures
of the Mayor and the City Manager,. provided that all signatures
may be printed, engraved or lithographed facsimiles of the
originals. In case any officer whose signature or a facsimile
of whose signature shall appear on the Bonds shall cease to be
such officer before the delivery of any Bond, such signature or
facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if he had remained in office until
delivery. Notwithstanding such execution, no-Bond shall 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 such Bond 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 each Bond shall be 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 shall.deliver the
same to the purchaser thereof upon payment of the purchase
price in accordance with the contract of sale heretofore made
and executed, and said purchaser shall not be obligated to see
to the application of the purchase price.
2.07. Form of Bonds. The Bonds shall be printed in
substantially the following form:
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[Face of the Current Interest Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
GENERAL OBLIGATION REFUNDING TAX INCREMENT BONO OF 1983
Rate
-
Maturity
Date of
Original Issue
fggP
August 1, 1983
No.
$
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KNOW ALL MEN BY THESE PRESENTS that the City of
Chanhassen, a duly organized and existing municipal corporation
of Carver and Hennepin Counties, Minnesota (the City),
acknowledges itself to be indebted and for value received
hereby promises to pay to or registered
assigns, the principal sum of
DOLLARS on the maturity date specified above, with interest
thereon from the date hereof at the annual rate specified
above, payable on February 1 and August 1 in each year,
commencing February 1, 1984, to the person in whose name this
Bond is registered at the close of business on the 15th day
(whether or not a business day) of the immediately preceding
month, all subject to the provisions referred to herein with
respect to the redemption of the principal of this Bond before
maturity. 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
First Trust Company of Saint Paul, in St. Paul, Minnesota, as
Bond Registrar and Paying 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.
Additional provisions of this Bond are contained on
the reverse hereof and such provisions shall for all purposes
have the same effect as though fully set forth in this place.
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This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon shall
have been executed by the Bond Registrar by manual signature of
one of its authorized representatives.
IN WITNESS WHEREOF, the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, by its City Council, has caused
this Bond to be executed of its behalf by the facsimile
signatures of the Mayor and City Manager and has caused this
Bond to be dated as of the date Set forth below.
Dated:
CITY OF CHANHASSEN, MINNESOTA
(facsimile)
Mayor
Attest: (facsimile)
City Manager
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[Face of the Compound Interest Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
GENERAL OBLIGATION REFUNDING TAX INCREMENT BOND OF 1983
Rate
-
Date of
Original Issue
Maturity
CUSIP
August 17, 1983
No.
$
KNOW ALL MEN BY THESE PRESENTS that the City of
Chanhassen, a duly organized and existing municipal corporation
of Carver and Hennepin Counties, Minnesota (the City),
acknowledges itself to be indebted and for value received
hereby promises to pay to or registered
assigns, the sum of DOLLARS, which
includes $ principal amount and interest from
August 17, 1983 at the annual rate specified above; compounded
on each February 1 and August 1, commencing February 1, 1984,
on the maturity date specified above, all subject to the
provisions referred to herein with respect to the redemption of
this Bond before maturity. The compounded value, including
principal and interest, is payable, upon presentation and
surrender hereof, in lawful money of the United States of
America by check or draft by First Trust Company of Saint Paul,
in St. Paul, Minnesota, as Bond Registrar and Paying 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.
Additional provisions of this Bond are contained on
the reverse hereof and such provisions shall for all purposes
have the same effect as though fully set forth in this place.
This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Resolutiqn until the Certificate of Authentication hereon shall
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one of its authorized representatives.
IN WITNESS WHEREOF, the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, by its City Council, has caused
this Bond to be executed on \its behalf by the facsimile
signatures of the Mayor and City Manager and has caused this
Bond to be dated as of the date of original issue set forth
above. -
CITY-' OF CHANHASSEN, MINNESOTA
(facsimile)
Mayor
Attest: (facsimile)
City Manager
CERTIFICATE OF AUTHENTICATION
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This is one of the Bonds delivered pursuant to the
Resolution mentioned within.
FIRST TRUST COMPANY OF SAINT PAUL
By
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate
principal amount of $5,184,620.60, all of like date and tenor,
except as to serial number, maturity date, interest rate,
denomination and redemption privilege, issued pursuant to a
resolution adopted by the City Council on August 8, 1983 (~he
Resolution), for the purpose of providing money to refund,
pursuant to Minnesota Statutes, Section 475.67, in advance of
maturity, the outstanding principal amount of certain General
Obligation Tax Increment Bonds of the City, which have been
issued to defray the expenses incurred in financing the public
redevelopment costs of certain redevelopment projects in the
City, pursuant to and in full conformity with the Constitution
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e and Laws of the State of Minnesota, including Minnesota
Statutes, Sections 462.411 to 462.711 and 273.71 to 273.78,
inclusive, and is payable primarily from tax increments from
increases in the assessed value of real property within a tax
increment financing district in the City, 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.
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The Bonds are issuable only as fully registered
bonds. Bonds maturing February 1, 1984 through August 1, 1993
(Current Interest Bonds) ar& issuable in denominations of
$5,000 or any integral multiple thereof. Bonds maturing
February 1, 1994 through August 1, 1999 (Compound Interest
Bonds) are issued in various minimum denominations, or any
integral multiple thereof, as specified in the Resolution.
Bonds maturing on or after February 1, 1996 shall be
subject to redemption and prepayment at the option of the City,
in whole or in part, on August 1, 1995, and any February 1 or
August 1 thereafter, upon payment of the redemption price equal
to their compounded value as of the redemption date.
Compounded value shall be established by use of the tables
incorporated in the Resolution and on file with the Bond
Registrar. Bonds shall be redeemed in inverse order of
maturity dates and by lot (selected by the Registrar among the
numbers assigned by the Registrar to the Bonds maturing on any
date, said numbers being assigned by dividing the principal
amounts by the minimum denomination specified in the
Resolution) as to Bonds maturing on the same date. At least
thirty days prior to the date set for redemption of any Bond
prior to its stated maturity date, the City Manager shall cause
notice of the call for redemption thereof to be published in a
daily or weekly periodical published in a Minnesota city of the
first class, or its metropolitan area, which circulates
throughout the state and furnishes financial news as a part of
its service, and shall cause notice of the call thereof for
redemption to be mailed to the registered holders of any Bonds
to be redeemed at their addresses as they appear on the bond
register, and to the bank at which principal and interest are
then payable. Upon partial redemption of a Bond, a new Bond or
Bonds shall be delivered to the holder without charge,
representing the remaining principal amount outstanding.
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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 his
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
his attorney: and may also be surrendered in exchange for Bonds
of other authorized denominations. Upon such transfer or
exchange the City will cause a new Bond or Bonds 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 shall be affected by
any notice to the contrary.
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IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by 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
or statutory limitation of indebtedness.
(Form of certificate to be printed on the reverse side of
each Bond, fOllowing a full copy of the legal opinion)
We certify that the above is a full, true and correct
copy.of the legal opinion rendered by bond counsel on the issue
of Bonds of the City of Chanhassen, Minnesota, which includes
the within Bond, dated as of the date of delivery of and
payment for the Bonds.
(Facsimile Signature)
City Manager
(Facsimile Signature)
Mayor
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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
UNIF GIFT MIN ACT
(Cust)
Custodian
(Minor)
TEN ENT -- as tenants
by entireties
under Uniform Gifts to
Minors
JT TEN
as joint tenants
with right of
survivorship and
not as tenants in
common
Act. . . .
. . . . .
. . . .
(State)
Additional abbreviations may also be used though not
in the above list.
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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:
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
enlargement or any change whatever.
Signature Guaranteed:
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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 assignee requested
below is provided.
Name and Address:
(Include information for all joint
owners if the Bonds are held by
joint account)
Please insert social security
or other identifying number of
assignee
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Section 3. Sinking Fund and Tax Levies.
3.01. The Bonds and any additional bonds similarly
authorized and issued shall be payable from the General
Obligation Tax Increment Bond Fund created by Resolution No.
81-28 (the "Debt Service Fund"). The proceeds of general
taxes, if any, levied for the Bonds and other bonds payable
from the Fund, and tax increments (the "Tax Increments") from
the Project Area in which the Public Redevelopment Costs
. financed by the refunded bonds were incurred to be received by
the City from the Housing and Redevelopment Authority of
Chanhassen (the "Authority") pursuant to the Tax Increment
Agreement (the "Agreement") executed by the City and the
Authority on June 11, 1981, are hereby irrevocably appropriated
and pledged to the Debt Service Fund subject to the provisions
of Minnesota Statutes, Sections 271.71 to 273.78, (the "Tax
Increment Financing Act"). If any payment of principal or
interest on bonds payable from the Fund shall become due when
there is not sufficient money in the Fund to pay the same, the
Treasurer shall pay such principal or interest from the general
fund of the City and the general fund may be reimbursed for
such advances out of proceeds of the tax increments or taxes
when received.
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3.02. It is hereby found and determined as follows:
(a) The amount of estimated Tax Increments received
and to be received by the. city pursuant to the Agr~ement
will exceed 20% of the Public Redevelopment Costs ~ncurred
or to be incurred in the Project Area.
(b) The projects for which the Public Redevelopment
Costs have been and are to be incurred in the project Area
are consistent with the Comprehensive Municipal plan of ~he
City and that the Redevelopment.plan, and all amendments
thereto, for the project Area have been.r:ferred t~ the
City Planning Commission under the provlslons of Mlnnesota
Statutes, Section 462.356, Subdivision 2.
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The Bonds, and all bondsherea.!:_~.r J~~uedand_.I~ade payable
th~--Fund, are. and shall be equally and ratably secured by the
pledge of all assets of the Debt Service Fund.
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3.04. It is further determined that upon the deposit
of Proceeds and Funds (as hereinafter defined) in the Escrow
Account (as hereinafter defined) that an irrevocable
appropriation to the Debt Service Fund shall have been made
within the meaning of Section 475.61, subdivision 3 of the Act,
and the City Manager is authorized and directed to certify such
fact to the Director of Property Taxation and County Auditor,
respectively, and request said officials to cancel any and all
tax levies made by Resolution 81-28.
3.05. Paragraph 11 of Resolution 81-28 relating to
the transfer of interest proceeds of the debt service fund for
the bonds refunded hereby is rescinded.
3.06. Paragraph 10 of Resolution 81-28 is amended to
provide that any balance in the Acquisition Fund upon
completion of the project Area and expenditure of necessary
Public Development Costs shall be transferred to the Debt
Service Fund created by this Section 3.
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3.07. All capitalized terms used in Section 3.01
through 3.06 and not otherwise defined in this resolution have
the meanings given them by Resolution No. 81-28 awarding the
sale of the General Obligation Tax Increment Bonds of 1981
refunded by this resolution.
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3.08. In order to ensure compliance with Section
103(c) of the Internal Revenue Code, and applicable
regulations, the Treasurer, upon allocation of any funds to
the Debt Service Fund, shall ascertain the balance then on hand
in the Debt Service Fund allocable to the Bonds. If it exceeds
by more than 1/12th, the amount of principal and interest to
become due and payable on the Bonds through February 1 next
following said excess shall within 30 days (unless an opinion
is otherwise received from bond counsel) be used to prepay
or purchase Bonds, or invested at a yield which does not
exceed the yield on the Bonds calculated in accordance with
said Section 103 (c) (9.8820 %) .
Section 4. Refunding~ Findings~ Escrow; Redemption
of Refunded Bonds.
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4.01. The bond issue refunded hereby (Refunded Bonds)
is the following issue of General Obligation Bonds of the City:
(a) $4f71S,000 General Obligation Tax Increment Bonds
of 1981, Series A, dated August 1, 1981.
It is hereby found and determined that based upon information
presently available from the City's financial advisers, the
issuance of the Bond. will result in a reduction of debt
service or interest cost to the City on the Refunded Bonds as
follows:
Total interest to maturity
on Refunded Bonds:
$ 6,733,500.00
Total interest to maturity
on Refunding Bonds (Including
City contribution
.. 0 f $ 227 ,916 . 40 ):
Difference ("Reduction-):
$ 5.860,351. 80
$ 873.148.20
Present Value of Reduction at yield of 9.8820%
$
197~793.49
The Reduction is 12.96 % of the interest of the Refunded
Bonds, which is in excess of the 5% required by Minnesota
Statutes, Section 475.67, subd. 12.
4.02. As of the date of delivery of and payment for
the Bonds the proceeds (Proceeds) of the sale of the Bonds,
other than the amount of $ 14,929.56 which shall be deposited in
the Debt Service Fund established by Section 3.01 hereof and
e other than the amount of $ 183,337 which shall be used to pay
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issuance expenses, together with other funds (Funds) in the
amount of $ 227,916.40 hereby appropriated for such purpose as
shall be necessary to pay the principal of, interest on and
redemption premium (if any) on the Refunded Bonds to their
maturity or the date on which they are called for redemption,
whichever date is earlier, are hereby pledged and appropriated
and shall be deposited in escrow in account with First Trust
Company of Saint Paul, St. Paul, Minnesota, a suitable banking
institution within the State, whose deposits are insured by the
Federal Deposit Insurance Corporation and whose combined
capital and surplus is not less than $500,000 and said bank 1s
hereby designated escrow agent (Agent) for such Proceeds and
Funds. The City shall pay the reasonable charges of the Agent
for its services. The Proceeds and Funds shall be invested in
securities maturing or callable at the option of the holder on
such dates and bearing such interest at such rates as shall be
required to provide sufficient funds, together with any cash or
other funds retained in the Escrow Account, to pay when the
interest to accrue on each Refunded Bond at maturity or on the
date on which it is called for redemption as herein provided
and to pay the principal amount of each such Refunded Bond at
maturity or on the date on which it has been called for
redemption ~nd to p~y any premium required for redemption on
such date. The monies in the Escrow Account shall be used
solely for the purpos~s herein set forth and for no other
purpose, except that if any balance shall remain in the Escrow
Account after all of the Refunded Bonds and interest (and any
premium) thereon are paid, then such balance shall be
transferred to the Debt Service Fund for the Refunding Bonds.
4.03. The City Council hereby finds and determines
that the Proceeds and Funds available and appropriated to the
Escrow Account will be sufficient, together with the permitted
earnings on the investment of the Escrow Account, to pay at
maturity or redemption all of the principal of, interest on and
redemption premium (if any) on the Refunded Bonds.
4.04. Securities purchased from the monies in the
Escrow Account shall be limited to securities set forth in
Section 475.67, Subdivision 8 of the Act. Securities purchased
for the Escrow Account shall be purchased simultaneously with
the delivery of and payment for the Refunding Bonds.
4.05. The Refunded Bonds maturing in the years 1992
through 1999 shall be redeemed and prepaid, at a price of par
and accrued interest, on August 1, 1991. The Refunded Bonds
shall be redeemed and prepaid in accordance with their terms
and in accordance with the terms and conditions set forth in
the forms of Notice of Call attached hereto as Exhibit A, which
terms and conditions are hereby approved and incorporated
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herein by reference. The City Manager is hereby authorized and
directed to forthwith publish said notice of call in a
publication qualified under Section 475.54 of the Act and to
send a certified copy of the Notice of Call to the paying agent
for the. Refunded Bonds, provided that published notice alone
shall be effective.
4.06. On or prior to the delivery of the Bonds, the
Mayor and the City Manager are authorized and directed to
execute on behalf of the City an ~scrow agreement (Escrow
Agreement) with the Agent in substantially the form now on file
with the City Manager. All essential terms and conditions of
the Escrow Agreement are hereby approved and adopted and made a
part of this resolution, and the City covenants that it will
promptly enforce all provisions thereof in the event of default
thereunder by the Agent.
Section 5. Defeasance: Registration Certification.
5.01. When all Bonds have been discharged as provided
in this paragraph, all pledges, covenants and other rights
granted by this resolution to the holders of the Bonds shall
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 shall remain in full force and
effect. The City may discharge all Bonds which are due on any
date by depositing with the Paying Agent for such bonds 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 Paying Agent
a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit. The City may also at any
time discharge and defease the Bonds in their entirety by
complying with the provisions of Section 475.67, Subdivisions 4
to 11 of the Act, except that the funds deposited in escrow in
accordance with said provisions may (to the extent permitted by
law) but need not be, in whole or in part, proceeds of
refunding bonds as therein provided without the consent of any
Bondholders.
5.02. The officers of the City are hereby authorized
and directed to prepare and furnish to the purchaser and to the
attorneys approving the legality of the issuance of the Bonds,
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 said 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,
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certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as .to
the facts stated therein. The Mayor and City Manager. are
hereby 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 said statement is a
complete and accurate representation of the facts and
representations made therein as of the date of the Official
Statement.
. 5.03. The City Manager is directed to file a
certified copy of the resolution with the Director of Property
Taxation of Hennepin County and the County Auditor of Carver
County and to obtain the certificates required by Minnesota
Statutes, Section 475.63.
The motion for the adoption of the foregoing
resolution was duly seconded by Councilmember Gevtng
and upon vote being taken the.reon, the following voted in favor
thereof: Mayor Halllflton. Council ....... Geving. Hom. SWensen and Watson
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted
--.
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EXHIBIT A
NOTICE OF CALL
FOR REDEMPTION
$~~L~O~~ENERAL OBLIGATION TAX INCREMENT BONDS
. OF 1981, SERIES A
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN, that, by order of the City
Council of the City of Chanhassen, Carver and Hennepin Counties
Minnesota, there have been called for redemption and prepayment
on
August 1,. 1991
all outstanding bonds of the City designated as General
Obligation Tax Increment Bonds of 1981, Series A, dated
August 1, 1981, bearing serial numbers 139 through 943,
inclusive, having stated maturity dates of August 1 in the
years 1992 through 1999, both inclusive, and totalling
$4,025,000 in principal amount. The bonds are being called at
a price of par plus accrued interest to August 1, 1991, on
which date all interest on said bonds will cease to accrue.
Holders of the bonds hereby called for redemption are requested
to present their bonds for payment with interest coupons
attached at the main office of Norwest Bank Minneapolis, N.A.,
in the City of Minneapolis, Minnesota, on or before August 1,
1991.
Dated: August ____, 1983.
BY ORDER OF THE CITY COUNCIL
By Isl Donald W. Ashworth
City Manager
City of Chanhassen
Further Information:
Juran & Moody, Inc.
400 North Robert
Suite 800
St. Paul~ Minnesota 55401?
(612) 224-1500
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