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HomeMy WebLinkAbout09-099 - ADMIN Resolution - City Council - 2009/07/27RESOLUTION NO. 09-099 RESOLUTION PROVIDING FOR THE DEFEASANCE OF CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS OF THE CITY AND AUTHORIZING EXECUTION OF AN ESCROW AGREEMENT BE IT RESOLVED By the City Council of the City of St. Louis Park, Hennepin County, Minnesota (the "City"), as follows: Section 1. Background; Findings. 1.01. The City has issued and sold its General Obligation Tax Increment Refunding Bonds, Series 2002, dated July 16, 2002 (the "Bonds") in the total principal amount of $6,135,000, pursuant to Minnesota Statutes, Chapters 469 and 475 (collectively, the "Act"). The outstanding principal amount of the Bonds are payable on September 1, 2009 (the "Maturity Date"). 1.02. The City staff' has reported to this Council and the Council so finds, that there are monies properly available for the purpose and identified in this Resolution that, if invested in securities authorized by Minnesota Statutes, Chapter 118A, will provide for the payment of principal, interest and redemption premium (if any) on the Bonds on the Maturity Date. 1.03. It is further found and determined that the Bonds will be as subsequently provided in this Resolution. 1.04. It is further found and determined that it is the intent of this Council that the defeasance of the Bonds as provided for in this Resolution is not to be construed as impairing or affecting the covenants with or pledges to the holders of the Bonds contained in the resolution authorizing issuance of the Bonds. Section 2. Payment of Bonds. 2.01. The outstanding principal amount of the Bonds shall be paid on the Maturity Date. Section 3. Escrow; Defeasance. 3.01. To accomplish defeasance of the Bonds there is established an Escrow Account (the "Escrow Account") with U.S. Bank National Association (the "Escrow Agent"), a suitable financial institution in the state whose deposits are insured by the Federal Deposit Insurance Corporation and combined capital and surplus is not less than $500,000. A form of escrow agreement (the "Escrow Agreement") has been presented to and reviewed by this Council. The form of the Escrow Agreement is approved. The Mayor and City Manager are authorized and directed to execute and deliver the Escrow Agreement on behalf of the City. Resolution No. 09-099 -2- 3.02. As of the date of execution of the Escrow Agreement (the "Transfer Date") there will be and are hereby transferred, pledged, and appropriated to the Escrow Account certain funds of the St. Louis Park Economic Development Authority (the "EDA") in the amount that, together with interest earnings thereon, is needed for payment of the principal and interest of the Bonds on the Maturity Date. 3.03. The funds deposited under the Escrow Agreement are to be invested in securities maturing or callable at the option of the holder on such dates and bearing interest at such rates as may be required to provide sufficient monies together with cash or other monies in the Escrow Account to pay when due the principal amount of and interest on the Bonds on the Maturity Date. The funds may be used only for the purposes stated in this Section, except that any surplus remaining in the Escrow Account when all of the Bonds and interest thereon have been paid shall be transferred to the City. 3.04. Securities to be purchased from the Funds are limited to securities specified in Minnesota Statutes, Section 475.67, Subdivision 8. The Mayor and City Manager are authorized and directed to purchase the securities for the Escrow Account and to transfer then to the Escrow Agent as provided in the Escrow Agreement. 3.05. 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 have been and are irrevocably pledged. If the balance in the Escrow Account is ever insufficient to pay all principal and interest then due on the bonds maturing on such dates, the deficiency must be promptly paid out of monies of the general fund or other funds of the City that are properly available for such purpose, and such funds may be reimbursed with or without interest from the Escrow Account when a sufficient balance is available therein. 3.06. When the portion of the Bonds and interest thereon have been discharged as provided in this Resolution, all pledges, covenant 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 will remain in full force and effect. (The remainder of this page is intentionally left blank.) Resolution No. 09-099 -3- Member Sanger introduced the following written resolution and moved its adoption, the 4111 reading of which was dispensed with by unanimous consent. The motion for the adoption of the foregoing resolution was duly seconded by Member Paprocki, and upon vote being taken thereon, the following voted in favor thereof: Jacobs, Finkelstein, Sanger, Basil! and Paprocki. and the following voted against: None on said resolution was declared duly passed and adopted. Reviewe• �fll�il� for Administration City Attest: ?:1?t1 Adopte -by—t e City Council July 27, 2009 Mayor