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HomeMy WebLinkAbout09-070 - ADMIN Resolution - City Council - 2009/05/18RESOLUTION NO. 09-070 A RESOLUTION AWARDING THE SALE OF $2,000,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2009A; 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 St. Louis Park, Hennepin County, Minnesota (the "City") as follows: Section 1. Sale of Bonds. 1.01. It is hereby determined that: (a) the City has duly established the following project areas and tax increment districts: (i) Excelsior Boulevard Redevelopment Project; (ii) Oak Park Village Redevelopment Project; and (iii) the Highway 7 Development District (collectively referred to herein as the "Districts") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, Chapter 472A, and Sections 469.174 to 469.179 and predecessor statutes (together, the "Development Act"); (b) the control, authority and operation of the Districts were transferred to the St. Louis Park Economic Development Authority (the "Authority") by Resolution No. 88-134 of the City, pursuant to Minnesota Statutes, Section 469.094; and (c) by Resolution No. 90-4 of the Authority and Resolution No. 90-29 of the City, the geographical areas of the project areas associated with the Districts were expanded and joined (such expanded coterminous area is referred to herein as the "Project Area"); and (d) the City is authorized by Section 469.178 of the Development Act to issue and sell its general obligations to pay all or a portion of the public development and redevelopment costs (the "Costs") related to the Project Area as identified in the redevelopment plan and program and tax increment financing plan (the "Plans") for the Districts; (e) the City is authorized by Minnesota Statutes, Chapter 475 (the "Bond Act") and Section 475.67, subdivision 3 thereof to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (f) Section 475.67, subdivision 4 of the Bond Act permits the sale of refunding obligations 4 during the six month period prior to the date on which the obligations to be refunded may be called for redemption; Resolution No. 09-070 -2- (g) it is necessary and desirable to reduce debt service costs that the City issue $2,000,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A (the "Bonds") to refund certain outstanding general obligations of the City, the proceeds of which have been or may be used to pay certain costs in the Project Area; (h) the outstanding bonds to be refunded (the "Refunded Bonds") consist of the $7,650,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A, dated May 1, 2001, of which $1,935,000 in principal amount is currently outstanding and is callable on July 1, 2009. (i) the Mayor and City Manager are authorized and directed to execute a Tax Increment Pledge Agreement between the City and the Authority (the "Pledge Agreement") in substantially the form on file in City Hall, pursuant to which the Authority pledges certain pre -79 Available Tax Increment and Highway 7 Available Tax Increment (as defined in the Pledge Agreement) to pay principal of and interest on the Bonds. 1.02. The proposal of Stifel, Nicolaus & Co., Inc., Denver, Colorado (Purchaser) to purchase $2,000,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A (the "Bonds") of the City described in the Official Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Bonds at a price of $2,010,201.95 (par amount of $2,000,000, plus original issue premium of $12,201.95, less underwriter's discount of $2,000.00), plus accrued interest to date of delivery, for Bonds bearing interest as follows: Date of Interest Date of Interest Maturity Rate Maturity Rate 8/1/2009 2.000% 8/1/2010 2.000% 2/1/2010 2.000 2/1/2011 2.250 True interest cost: 1.5366820% 1.03. The sum of $22,201.95 being the amount proposed by the Purchaser in excess of $1,990,000 will be credited to the Debt Service Fund hereinafter created or applied to refunding of the Refunded Bonds as determined by the City's Financial Advisor. The City Manager is directed to retain the good faith check of the Purchaser pending completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. The City will forthwith issue and sell the Bonds pursuant to the Development Act and the Bond Act in the total principal amount of $2,000,000, originally dated June 11, 2009, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 and August 1, without option of prior payment, in the years and amounts as follows: Resolution No. 09-070 -3- Date of Date of Maturity Amount Maturity Amount 8/1/2009 $500,000 8/1/2010 $500,000 2/1/2010 495,000 2/1/2011 505,000 Section 2. Registration and Payment. 2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on 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 the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2009, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Register. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the Ciry. Resolution No. 09-070 -4- (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. 2.04. Appointment of Initial Registrar. The City appoints Bond Trust Services Corporation, Roseville, Minnesota, as the initial Registrar. The City reserves the right to designate a successor Registrar, in which case the following terms apply. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Director must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. • • Resolution No. 09-070 -5- 2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, such signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the 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 a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 3. Form of Bond. 3.01. The Bonds will be printed or typewritten in substantially the following form: No. R - UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF ST. LOUIS PARK TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND, SERIES 2009A Date of Rate Maturity Original Issue June 11, 2009 Registered Owner: Cede & Co. $ CUSIP Resolution No. 09-070 -6- The City of St. Louis Park, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on the maturity date specified above, without option of prior payment, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2009, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Bond Trust Services Corporation, Roseville, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue in the aggregate principal amount of $2,000,000 all of like original issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution adopted by the City Council on May 18, 2009 (the "Resolution"), for the purpose of providing money to aid in refinancing public redevelopment costs in a redevelopment project (the "Project Area") in the City, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.179, the Minnesota Tax Increment Financing Act, and Minnesota Statutes, Sections 469.001 through 469.047, and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxable valuation of real property in certain tax increment financing districts within the Project Area as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency of tax increments pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for 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 will be affected by any notice to the contrary. • • Resolution No. 09-070 -7- IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of St. Louis Park, Hennepin County, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF ST. LOUIS PARK, MINNESOTA (facsimile) (facsimile) City Manager Mayor CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. BOND TRUST SERVICES CORPORATION By Authorized Representative Resolution No. 09-070 -8- The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT Custodian in common (Cust) (Minor) TEN ENT -- as tenants under Uniform Gifts or by entireties Transfers 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. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: Signature Guaranteed: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. • Resolution No. 09-070 -9- The Bond Registrar will not effect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Bond is held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION IIIThe ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Cede & Co. Federal ID #13-2555119 Signature of Finance Director 3.02. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and will cause the opinion to be printed on or accompany each Bond. Section 4. Payment; Security; Pledges and Covenants. 4.01. (a) The Bonds are payable from the Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A Debt Service Fund (the "Debt Service Fund") hereby created, and pre -79 Available Tax Increment and Highway 7 Available Tax Increment (as defined in the Pledge Agreement) received by the City from the Authority pursuant to the Pledge Agreement is hereby pledged to the Debt Service Fund. Resolution No. 09-070 -10- (b) The debt service fund, if any, heretofore established for the Refunded Bonds as defined in the resolution providing for the issuance and sale of the Bonds, is terminated, and all monies therein are hereby transferred to the Debt Service Fund herein created. If a payment of principal or interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Director of Finance will pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for those advances out of the proceeds of the pledged tax increments when collected. (c) There is hereby appropriated to the Debt Service Fund any amount over the minimum purchase price of the Bonds paid by the Purchaser to the extent so directed for deposit in accordance with Section 1.03 hereof. 4.02. It is determined that estimated collection of tax increments pledged by the Authority under the Pledge Agreement for the payment of principal and interest on 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 and that no tax levy is needed at this time. 4.03. The City Clerk is directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Section 475.63 of the Bond Act. 4.04. It is hereby determined that upon the receipt of proceeds of the Bonds (the "Proceeds") that an irrevocable appropriation to the debt service fund for the Refunded Bonds will have been made within the meaning of Section 475.61, Subdivision 3 of the Bond Act and the City Manager is hereby authorized and directed to certify such fact to and request the Taxpayer Services Division Manager to cancel any and all tax levies made by the resolution authorizing and approving the Refunded Bonds. Section 5. Refunding; Findings; Redemption of Refunded Bonds. 5.01. The Refunded Bonds are the Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A, of the City, dated May 1, 2001, of which $1,935,000 in principal amount is callable on July 1, 2009. It is hereby found and determined that based upon information presently available from the City's financial advisers, the issuance of the Bonds is consistent with covenants made with the holders thereof and is necessary and desirable for the reduction of debt service cost to the municipality. 5.02. There is hereby appropriated for payment of principal and interest on the Refunded Bonds all Proceeds, less amounts deposited in the Debt Service Fund under Section 4.01 and less all amounts needed to pay costs of issuance of the Bonds as determined by the Finance Director. 5.03. The Refunded Bonds maturing on August 1, 2009 and thereafter will be redeemed and prepaid on such date or dates as the Finance Director determines. The Refunded Bonds will 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 for Redemption attached hereto as Exhibit B which terms and conditions are hereby approved and incorporated herein by reference. The Finance Director shall give a notice of call to the trustee for the Refunded Bonds (the "Trustee") who is authorized and directed to send a copy of the Notice of Redemption to each registered holder of the Refunded Bonds. • Resolution No. 09-070 -11- Section 6 Authentication of Transcript. 6.01. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed representations of the City as to the facts stated therein. 6.02. The Mayor, City Manager, City Clerk and Finance Director 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 the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered as Bond Counsel) to U.S. Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial adviser, Ehlers & Associates, Inc. Section 7. Book -Entry System; Limited Obligation of City. 7.01. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns (DTC). Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC. 7.02. With respect to Bonds registered in the registration books kept by the Bond Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Bonds as securities depository (Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Resolution No. 09-070 -12- Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Book -Entry System. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Bond Registrar will authenticate Bond certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. • • • Resolution No. 09-070 -13- Section 9. Continuing Disclosure. 9.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 9.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. The motion for the adoption of the foregoing resolution was duly seconded by Member Omodt, and upon vote being taken thereon, the following voted in favor thereof: Jacobs, Carver, Basill, Paprocki, Omodt, and Finkelstein and the following voted against the same: none whereu Revie said resolution was declared duly passed and adopted. or Administration: City Ma Attest: City Clerk Adop the City Council June 1, 2009 May Resolution No. 09-070 -14- STATE OF MINNESOTA ) ) COUNTY OF HENNEPIN ) SS. CITY OF ST. LOUIS PARK ) I, the undersigned, being the duly qualified and acting Clerk of the City of St. Louis Park, Hennepin County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on May 18, 2009 with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $2,000,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A of the City. WITNESS My hand officially as such City Clerk and the corporate seal of the City this / S4- day +day of Zry rte, , 2009. (SEAL) -tel 9-.6— City Clerk St. Louis Park, Minnesota Resolution No. 09-070 STATE OF MINNESOTA 0 COUNTY OF HENNEPIN AD -15- DIRECTOR OF PROPERTY TAXATION'S CERTIFICATE AS TO REGISTRATION WHERE NO VALOREM TAX LEVY I, the undersigned Director of Property Taxation of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of St. Louis Park, Minnesota, on May 18, 2009, relating to Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A, in the amount of $2,000,000, dated June 11, 2009, has been filed in my office and said obligations have been registered on the register of obligations in my office. WITNESS My hand and official seal this day of , 2009. (SEAL) Director of Property Taxation Hennepin County, Minnesota By Deputy Resolution No. 09-070 -16- EXHIBIT A PROPOSALS BID TABULATION $2,020,000* Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A CITY OF ST. LOUIS PARK, MINNESOTA SALE• May 18, 2009 AWARD STIFEL, NICOLAUS & CO , INC RATING. Standard & Poor's Credit Markets "AAA" BBI' 4 54% NAME OF BIDDER NET TRUE MATURITY RATE REOFFERING PRICE INTEREST INTEREST YIELD COST RATE STIFEL, NICOLAUS & CO INC Denver, CO UNITED BANKERS' BANK Bloomington, Minnesota NORTHLAND SECURITIES, INC Minneapolis, Minnesota HUTCHINSON, SHOCKEY, ERLEY & CO Chicago, Illinois CRONIN & COMPANY, INC Minneapolis, Minnesota PIPER JAFFRAY & CO Minneapolis, Minnesota 08/01/2009 2 000% 0 900% $2,030,303 70 $27,796 99 1 5366% 02/01/2010 2 000% 1200% 08/01/2010 2 000% 1 350% 02/01/2011 2 250% 1 600% 08/01/2009 0 500% 02/01/2010 0 750% 08/01/2010 1 250% 02/01/2011 1 750% 08/01/2009 2 000% 02/01/2010 2 000% 08/01/2010 2 000% 02/01/2011 2 000% $2,014 950 00 $29,612 85 1 6477% $2,024 228 65 $31,782 46 1 7625% 08/01/2009 4 000% $2,097,838 95 $33,955 49 1 8167% 02/01/2010 5 000% 08/01/2010 6 000% 02/01/2011 7 000% 08/01/2009 2 000% $2,023,238 15 $32,772 96 1 8183% 02/01/2010 2 000% 08/01/2010 2 000% 02/01/2011 2 000% 08/01/2009 1 000% $2,011,634 90 $34,077 25 1 8997% 02/01/2010 1 000% 08/01/2010 1 250% 02/01/2011 1 750% 'Subsequent to bid opening the issue size was decreased to $2,000,000 with the 8/1/2009 maturity decreased $5,000 to 5500,000, the 2/1/2010 matunty decreased 55,000 to 5495,000, the 8/1/2010 maturity decreased 55,000 to 5500,000, and the 2/1/2011 matunty decreased 55,000 to 5505,000 in maturity value Adjusted Price - 52,010,201 95 Adjusted Net Interest Cost - $27,522 70 Adjusted TIC - 1 5366% Resolution No. 09-070 -17- $2,020,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 200$A Page 2 City of St. Louis Park, Minnesota NAME OF BIDDER NET TRUE MATURITY RATE REOFFERING PRICE INTEREST INTEREST YIELD COST RATE MORGAN KEEGAN & CO , INC 08/01/2009 3 000% $2,037 089 70 $36,926 97 2 0357% Memphis, Tennessee 02/01/2010 3 000% 08/01/2010 3 000% 02/01/2011 3 000% UMB BANK, N A 08/01/2009 1 250% $2 012,970 40 $41,151 27 2 2928% Kansas Crty, Missouri 02/01/2010 1 500% 08/01/2010 1 750% 02/01/2011 2 200% WELLS FARGO BROKERAGE SERVICES, LLC 08/01/2009 2 000% $2,015,838 80 $42,419 12 2 3616% Minneapolis, Minnesota 02/01/2010 2 000% 08/01/2010 2 100% 02/01/2011 2 200% BMO CAPITAL MARKETS GKST INC 08/01/2009 3 000% $2,031,173 40 $42,843 27 2 3686% Chicago, Illinois 02/01/2010 3 000% 08/01/2010 3 000% 02/01/2011 3 000% Resolution No. 09-070 -18- EXHIBIT B NOTICE OF CALL FOR REDEMPTION $7,650,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2001A CITY OF ST. LOUIS PARK HENNEPIN COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of St. Louis Park, Hennepin County, Minnesota, there have been called for redemption and prepayment on JULY 1, 2009 all outstanding bonds of the City designated as Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A, dated May 1, 2001, having a stated maturity date of February 1 and August 1, totaling $1,935,000 in principal amount as follows: Year of Maturity Amount CUSIP Number 8/1/2009 $460,000 791740 RL9 2/1/2010 480,000 791740 RM7 8/1/2010 490,000 791740 RN5 2/1/2011 505,000 791740 RP0 The bonds are being called at a price of par plus accrued interest to July 1, 2009, 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 at the office of the City of St. Louis Park Finance Director, St. Louis Park, on or before July 1, 2009. Important Notice: In compliance with the Jobs and Growth Tax Relief Reconciliation Act of 2003, federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the time the payment by the redeeming institutions if they are not provided with your social security number or federal employer identification number, properly certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other financial institution. The Registrar will not be responsible for the selection or use of the CUSIP number, nor is any representation made as to the correctness indicated in the Redemption Notice or on any Bond. It is included solely for convenience of the Holders. Resolution No. 09-070 -19- Dated: May 18, 2009. BY ORDER OF THE CITY COUNCIL By Nancy Stroth City Clerk City of St. Louis Park, Minnesota