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Home My WebLink AboutCCP 02-17-1998 ~ . AGENDA ARDEN HILLS CITY COUNCIL WORKSESSION ARMY RESERVE CENTER, 4655 LEXINGTON A VENUE NORTH (CONFERENCE ROOM) TUESDAY, FEBRUARY 17, 1998, 5:00 P.M. II PLEASE NOTE CHANGE IN II DATE AND TIME 5:00 P.M. 1. Call to Order 5:00 P.M. 2. Approval of Meeting Agenda 5:00 P.M. 3. City Issues. Short Term a. Lake Josephine Abatement, Anderson . b. 1998 Assessment Rate c. STD, LTD and Life Insurance d. Kenna Property Update e. Alliant Techsystems f. City Hall 6:30 P,M. 4. City Issues. Long Term a. BethellHamline Sanitary Sewer Odor Problems Update b. County Road F, Renaming of Street c. Council/Department Head Retreat 7:00P.M. 5. Miscellaneous Items 7:30 P.M. 6. Adjourn . The above times may vary depending upon length of issue discussion. -'-'--.<..-- ~_._~-- - ~-_....._- ---------- ------ . March Meetinis April Meetings March 4 Planning Commission 7:30 P.M. April I Planning Commission 7:30P:'tt. 'Ii March 9 Council Meeting 7:30 P,M, April 13 Council Meeting 7:30 P.M. March 16 Council Worksession 4:45 P.M. April 15 Business Development 8:00 A.M. Committee March ] 8 Business Development 8:00 A.M. . . Committee April 16 Public Safe.ty 7:30 P.M. Commission March 19 Finance Committee 7:30 P.M. April ]6 Finance Committee 7:30 P.M. March 19 Public Safety 7:30 P.M. Commission April 20 Council Worksession 4:45 P,M, March 24 Parks & Recreation 7:00 P.M. April 27 Economic Development 7:00 P.M. Commission Authority March 25 Newsletter Committee 6:00 P.M. April 27 Council Meetine 7:30 P.M. March 30 Economic Development 7:00 P.M. April 28 Parks & Recreation 7:OOP. Authority Commission March 30 Council Meeting 7:30 P.M. April 29 Newsletter Committee 6:00 P.M. PENDING Business Relations 4:00 P.M. PENDING Business Relations 3:30 P.M. Committee Committee . ~ ~ CITY OF ARDEN HILLS . MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Council FROM: Brian Fritsinger, City Administrat~ SUBJECT: Administrator Comments, February 17, 1998 Council Worksession 1. City Issues - Short Term a, Lake .Josephine Ahatement, Anderson Staff would like to update the City Council on a potential abatement ofnuisance property located on Lake Josephine. b. 1998 Assessment Rate The City Council should discuss whether or not it would like to establish the 1998 assessment rates prior to the Assessment Hearing. c, STD, LTO and Life Insurance . Staff has received quotes for STD, L TD and Life Insurance per the direction of the City Council. Due to the long delay in receiving the health rates for 1998, staff wanted to discuss these rates with Council in order to avoid losing the rates due to timing issues. d, Kenna Property Update Ms. Walsh would like to give a brief update to the City Council on the status of the Kenna Park property. The City Council should be prepared to provide direction on whether or not staff should proceed further into acquiring Fee Title to the property. e. Alliant Techsystems The City Council received a letter dated January 29, 1998 from Alliant Techsystems, which was a response to the February 25, 1997 Arden Hills letter inquiring about AlIiant's interest in meeting to explore potential consolidation. Alliant has also responded to other questions raised by the City over the past few months. Council should discuss the long-term ramifications of this interest, and determine when and if the City is interested in pursuing consolidated planning efforts. f, City Hall The site plan for City Hall is scheduled to be presented at the March 4, 1998 . Planning Commission meeting. The City Council may wish to discuss the site plan and building specifications. This would include exterior facade materials and community room. ------_..__.~ Administrator Comments, February 17, 1998 Council Worksession Page Two . February 13, 1998 2. City Issues - Lone Term a, Bethel/Hamline Sanitary Sewer Odor Prohlems Update Mr. Stafford and Mr. Brown would like to update the City Council on their findings related to the BethellHamline sanitary sewer odors and conversations with Bethel College. b, Connty Road F, Renamine of Street The City Council recently directed staff to provide them with the inforination related to the County Road F name change. The Council may wish to review this data and provide direction to staff. c. Council/Department Head Retreat The City Council is asked to begin deliberations as to the specifics of the 1998 Retreat. BFlsls . . . CITY OF ARDEN HILLS MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Councilmembers @ FROM: Brian Fritsinger, City Administra r SUBJECT: Assessment Rates, 1998 Street Improvement Program Background The Arden Hills Assessment Policy states that each year the City Council should adopt the various rates to be used as part of that year's assessment program. Over the last five years the City Council has not adopted these rates prior to the Assessment Hearing. Recent Assessment Rates Over the past several years the assessment rates for reconstruction and overlay projects has been as follows: Year Reconstruct Overlay . 1996 $30.32 $5.42 1997 37.96 4.97 1998 (Estimate) 51.18 5.44 Request The City Council is asked to provide direction to staff on whether or not it would prefer to adopt the 1998 Street Improvement Program assessment rates at the February 23, 1998 meeting, or wait until the Assessment Hearing is held in March or April. BF/sls . - . CITY OF ARDEN HILLS MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Council FROM: B,'" Fd"'"". City Adm""""@ SUBJECT: Insurance Benefits Back~round Over the past few months, the City Council has discussed a variety of issues related to the Personnel Policy. During this period of time, staff has investigated how to integrate the various life and health insurance, and STD and L TD coverages with the Personnel Policy. At that time, the City Council directed staff to investigate the specific costs for these coverages and present them to the City Council. Due to the delay in receiving the health insurance quotes, staff would like to proceed on the Life, STD and LTD coverages before the rate guarantee explres. . Insurance Contrihutions The City currently provides each employee with $310 per month that is used to offset the costs of life, health and dental insurances, along with short-term disability. In the case of the Local 49 employees, the bargaining agreement requires them to only use the monthly contribution for life, health and dental insurance. They pay all STD costs out-of-pocket. 1. Group Life Insurance a. Current The City currently provides life insurance through Minnesota Mutual. The total cost for $10,000 of coverage for each employee is $672 per year. b. Proposed Staff has solicited proposals, based on the direction of City Council, which would provide each employee with a life benefit amount of I x salary to a maximum of$50,000. The decision to limit the benefit to $50,000 is due to tax purposes. Employees would still have the option to purchase additional coverage at their cost. This coverage would be a defined benefit provided at the cost of the City. The total cost for providing this coverage through Fortis Benefits Insurance Company is $1,970 per year. This rate is guaranteed for 27 months. . - Memorandum - Personnel Policy/Insurance Benefits . Page Two February 13, 1998 The increased annual cost to the City for providing this coverage is $1,298. 2. Short-Term Disahility a, Current The City currently provides short-term disability through Minnesota Mutual. The benefit amount is limited to 5200 per month for non-union employees. Union employees pay the full cost of their STD benefit of $300 per week. The total cost for $200 of benefit for the non-union employees is $1,404 per year. b, Proposed Staff solicited proposals that would provide each employee with STD. There is a variety of components as part of STD that must be evaluated to determine which coverage best fits the need of City employees. The STD coverage being proposed has the following specifics: . Begins 1st day of accident/8tle day of illness . Benefit duration is 13 weeks . Benefit amount will be 60% of earnings, with $I,OOO/month . maxImum The total cost for providing this coverage through Fortis Benefits Insurance Company is $2,391.84. This rate is guaranteed for 15 months. The increased cost to the City for providing this coverage is $987.84. 3. Lonr;-Term Disahility a, CII rren t The City does not currently offer long-term disability insurance coverage. b. Proposed Again, staff solicited proposals which would provide an L TD insurance benefit at the cost of the City. Similar to STD, there are a variety of components which must be evaluated to determine which coverage best fits the need of City employees. . - -- - . Memorandum - Personnel Policy/Insurance Benefits Page Three February 13, 1998 The LTD coverage being proposed has the following specifics: . Begins at 30 weeks . Benefit duration is 36 months . Benefit amount will be 60% of earnings, with a S5,000/month maxImum . No limit on self-reported injury limit The total cost for providing this coverage through Fortis Benefits Insurance Company is $1,727.16. This rate is guaranteed for 27 months. Summary of LiftlSTD/LTD Insurance Proposals The proposal of Fortis Benefits for these three coverages is made for several reasons. First, the rates are competitive for the coverage offered. Second, the coverage for these items is seamless. In other words, the change from STD to LTD for an employee is simplified due tot he coverage being handled by the same company. Third, the company has both local customer service and claims unit. The total cost for these three coverages is $6,089. In providing these three coverages at its cost, . rather than the employee, the City will incur an increased cost each year in the amount of$4,013. Other Items Staff is also preparing some alternative proposals for changes to the Sick Leave and Severance components of the Personnel Policy. These changes will hopefully dovetail the addition of the STD, LTD, and Life Insurance identified above. The Council may wish to also discuss how the City may wish to proceed with these items under negotiations with the Local 49. Request The City Council is asked to give direction to staff regarding these coverages, and if appropriate, direct staff to place this item on the next Council meeting agenda for action. BF/sls . CITY OF ARDEN HILLS . MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Council CSvJ FROM: Cindy S, Walsh, Parks and Recreation Director SUBJECT: Ridgewood Road/Kenna Park Property Back"round The City does not currently have fee title to the parcel of park land located between Ridgewood Road and Snelling Avenue. Council member Hicks asked Tom Mulcahy to examine the information and possibly help the City obtain title by meeting with Mr. Kenna. I gave Mr. Mulcahy all of the information that I have pertaining to that park parcel. Mr. Mulcahy has provided a letter to Council member Hicks giving his opinion about what the City should do to proceed with obtaining title to this property. A copy ofMr. Mulcahy's letter was included in my January Department Report. I have also attached a copy to this memo. What is the Citv's next step? Il Attorney Filla attempted to contact Mr. Kenna, but was not successful. Should City staff or a Council representative attempt to meet with Mr. Kenna or his heirs? Future Action by the City Ifthe City is able to acquire title, is it our intent to keep the property as part of our City park system? When I researched this situation in February of 1995, Attorney Filla informed me that land acquired through dedication for park purposes must remain a park. I have received past requests to sell this property to people who are interested in building a house on the lot. According to the Community Development Director, Kevin Ringwald, the City would have to allow a number of variances with the sale of this property to allow a house to be built. I have also received a letter from the abutting property owner who would like the right of first refusal to purchase the property if the City intends to sell this lot. Staff Direction I need direction from the City Council on how to proceed with this parcel of land. I would like to put this issue to rest. As I mentioned previously, Attorney Filla has been working on this since 1995. Enclosure: I . - The property appears to need variances for which the City would have to make a commitment in connection with the sale. . A meeting with Mr. McKenna would probably be advisable at some time, but the City should know in advance what it wants to ask him to do. Unfortunately, I think that the City is going to have to make a significant investment in legal work to determine the details of it's request or proposai. As I mentioned above, I would get a couple of bids for the whole orocess and just go ahead. I don't think that a couple of phone calls or meetings will get the job done. Another issue to decide ahead of time: The City is not going to pay McKenna any money for what it already has a right tol The suggestion for a facilitating payment may surface from the McKenna interests The foregoing is not a legal opinion. just my thoughts based on a few experiences with these problems. I think you are on the right track in wanting to sell the property. .. If I can help, please call. Very truly yours, / . , . e-mail address: TMulc@aoi.com . CITY OF ARDEN HILLS MEMORANDUM DATE: February 11, 1998 TO: Brian Fritsinger, City Administrator FROM: Dwayne Stafford, Public 'Yorks Director ~, SUBJECT: Renaming of County Road F Backrround The City of Arden Hills Public Works Committee had discussed the renaming of County Road F several times in 1995 and 1996. Two surveys were conducted at this time. One survey by the Public Works/Public Safety Committee and one survey by Mr. Walter Bieger, a County Road F resident. The Public Works/Public Safety Committee survey was City wide and sent to all residents with their water bill. Approximately 50 suggestions were returned. Mr. Beigers survey was conducted only with residents along County Road F and offered four choices. . Previous Recommendation The Public Works/Public Safety Committee made a recommendation of five names as a result of their survey at the June 17, 1996 Council W orksession. Those names were: Mustang Road Mustang Trail Valentine Lake Drive Valentine Lake Road Arden Hills Road The Bieger survey results were divided between: West Country Road F West Country Road Leave as is. No clear recommendation was made as a result of the Bieger Survey. Council discussed these options and elected to rename County Road F "Farrell Drive". Renaminr Procedure City Attorney Filla has indicated the City has the authority to rename streets by adopting an . appropriate ordinance which would be recorded with the Ramsey County Recorder and Public Service Agencies. Residents would also need ample notice. Memorandum - Renaming of County Road F . Page Two February 13, 1998 The Public Works Director does not recall why the City did not proceed with the name change in 1996 and finds no written record of the Councils decision. However, the Council did have some discussion about the difficulty the change would create for residents related to home businesses and other issues. Options At this point, Council may wish to consider one of the following options: 1. Consider those names provided earlier by the Public WorksIPublic Safety Committee. 2. Ask residents again for input on possible renaming. 3. Rename County Road F "Farrell Drive" and direct staff to proceed with the appropriate process. 4. Leave as County Road F. Requ est The Public Works Director requests Council's direction on the renaming of the portion of County Road F between Old Highway 10 on the east and 1-35W on the west. . . . CITY OF ARDEN HILLS MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Council FROM: Brian Fritsinger, City Administrat~ SUBJECT: 1998 Retreat, Preliminary Plans Back~round The City Council has once again indicated that it would like to hold the City Council! Department Head Retreat. During 1997, the City Council agreed to hold the Retreat after the Town Hall meeting and closer to the beginning of the 1999 budget process. The following items are some of the related issues for which I would like direction from the City Council. Possible Available Dates The first thing the City Council should discuss is the date of the 1998 Retreat. Does the City . Council believe that a one or two day retreat is preferred? I have highlighted the Friday/Saturday dates for the next two months below, and identified some of the conflicts with those dates. llak Status/Potential Connicts Friday, March 6 and Saturday, March 7 Open Friday, March 13 and Saturday, March 14 Open Friday, March 20 and Saturday, March 21 School Spring Break (3/23 - 3/27) Friday, March 27 and Saturday, March 28 School Spring Break (3/23 - 3127) (Brian - vacation) Friday, April 3 and Saturday, April 4 Palm Sunday (Brian - vacation) Friday, April 10 and Saturday, April 11 Easter Weekend Friday, April 17 and Saturday, April 18 Open Friday, April 24 and Saturday, April 25 School Parent/Teacher Conferences TeamWorks has indicated that they are available March 13/14, March 27/28 and April 17/18. The Council has, over the past few years, held the Retreat on a Friday or Saturday. Should the City Council wish to hold the retreat on a different day of the week, please let me know. . Memorandum - 1998 Retreat, Preliminary Plans . Page Two February 13, 1998 Hours Last year the Retreat was held on Friday afternoon/evening, and Saturday morning. Attendance/Dress I would assume the City COLIllCil prefers casual dress as we have used the past few years. Facilitator I have been in contact with TeamWorks International to once again act as facilitator for this year's Retreat. He has indicated that he is interested in participating with us. I have i~cluded his available dates above. The cost for Mr. Dennis Cheesebrow will be approximately the same as 1997 ($2,000 for 2 days, $1,500 for I day). Aeenda - Goals/Discussion/Backrround Issues Based on recent conversations, there are really two goals that I see pertinent to the Retreat. The first is discussing City priorities for the remainder of 1998, and making decisions addressing the need for additional committees or task forces for this year. The second is to begin discussing goals for 1999 which can then be llsed as a vehicle for the upcoming budget process. In order for me to begin working with the facilitator, I need some direction as to whether the Retreat should include any other topics beyond goal setting. . I,ocation We have not yet begun contacting various sites at which to hold the Retreat. Staff would like to have the dates a little more defined before pursuing this item. I have a list of2-3 local and 2-3 metro area sites which the Council may wish to select from. The decision on a one day, two day, or overnight Retreat will also effect the location decision. Request The City Council is asked to provide staff with direction as to the items identified above for the 1998 Retreat. BF/sls . fl-L AGENDA . ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING ARMY RESERVE CENTER, 4655 NORTH LEXINGTON AVENUE TUESDAY, FEBRUARY 17, 1998,4:50 P.M. 4:50 P.M. 1. Call to Order 4:50 P.M. 2. Approval of Meeting Agenda a. January 26, 1998 Regular Meeting Minutes _ 4:50P.M. 3. Unfinished and New Business a. Res. #98-0 I, Authorizing Execution of a Tax Increment Pledge Agreement with the City of Arden Hills Relating to $3,100,000 General Obligation Tax Increment Bonds, Series 1998A b. Cancel February 23, 1998 EDA Regular Meeting 4:55 P.M. 4. Adjourn The above times may vary depending upon length of issue discussion. . ~--~ ~~ CITY OF ARDEN HILLS . MEMORANDUM DATE: February 13, 1998 TO: Economic Development Authority (EDA) Board of Commissioners FROM: Brian Fritsinger, secretarY/Treasure@ SUBJECT: Secretary/Treasurer Comments for the February 13, 1998 EDA Meeting 1. Approval of Minutes The Authority is asked to approve the Minutes of the January 26,1998 regular meeting of the Economic Development Authority (EDA). 2. Unfinished and New Business a, Res. #98-01. Tax Increment Pledge Agreement The Authority is asked to approve Res. #98-01, Authorizing Execution ofa Tax . Increment Pledge Agreement with the City of Arden Hills Relating to $3,100,000 General Obligation Tax Increment Bonds, Series 1998A. b, Cancel Februarv 23.1998 EDA Revular Meetin!! Due to the special meeting to be held today, the EDA may wish to cancel its regularly scheduled February 23,1998 meeting. BF/sls . --.- MINUTES DRAFT CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY (EDA) . MEETING MONDAY, JANUARY 26,1998 7:15 P.M. - NEW BRIGHTON CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, President Dennis Probst called to order the Economic Development Authority (EDA) meeting at 7:22 p.m. Present: President Dennis Probst, Commissioners Beverly Aplikowski, Dale Hicks, Susan Keirn, and Paul Malone. Also present were: Executive Director, Kevin Ringwald; Secretary/Treasurer, Brian Fritsinger; Controller, Terry Post; Public Works Superintendent, Dwayne Stafford; Parks & Recreation Director, Cindy Walsh; Administrative Secretary Sheila Stowell; and Recording Secretary, Carla Wirth. APPROVAL OF MEETING AGENDA MOTION: Commissioner Aplikowski moved and Commissioner Keirn seconded a . motion to adopt the agenda for the January 26, 1998, Economic Development Authority meeting as submitted. The motion carried unanimously (5-0). APPROVAL OF MINUTES A, December 15, 1997 Special Meeting MOTION: Commissioner Keirn moved and Commissioner Aplikowski seconded a motion to approve the December 15, 1997 Special Meeting minutes as presented. The motion carried unanimously (5-0). UNFINISHED AND NEW BUSINESS A, Appointments Mr. Brian Fritsinger, Secretary/Treasurer, eXplained that the by-laws of the EDA require that appointments be made each year for the various positions with the EDA. MOTION: Commissioner Malone moved and Commissioner Keirn seconded a motion to approve the following appointments: President Dennis Probst; . Vice President Dale Hicks; Executive Director Kevin Ringwald; DRAFT ARDEN HILLS EDA MEETING -JANUARY 26.1998 2 Secretary/Treasurer Brian Fritsinger; and Controller Terry Post. The . motion carried unanimously (5-0). MISCELLANEOUS ITEMS None. ADJOURN MOTION: Commissioner Malone moved and Commissioner Hicks seconded a motion to adjourn the Economic Development Authority meeting at 7:25 p.m. The motion carried unanimously (5-0). Dennis Probst Brian Fritsinger President Secretary. Treasurer . . . CITY OF ARDEN HILLS . MEMORANDUM DATE: February 13, 1998 TO: Economic Development Authority (EDA) Board of Commissioners FROM: Brian Fritsinger, secretarY/Treasure~ SUBJECT: Tax Increment Pledge Agreement Backerollnd Over the past year, the City Council has been working with Welsh Companies on the development of the Gateway Business District (GBD). These negotiations resulted in the Development Agreement with Welsh, which requires the City to issue General Obligation Tax Increment Bonds to pay for certain public improvements to stimulate GBD development activities. The Purchase and Development Agreements were executed on February 13, 1998. On January 26, 1998, the City Council adopted Resolution #98-09, Providing for the Sale of $3, I 00,000 General Obligation Tax Increment Bonds, Series 1998A. The adoption of this resolution will . allow for a variety of public improvements to be undertaken. Puhlic Improvement Overview A January 15,1998 staff memorandum summarized the public improvements in two areas: 1. The relocation of Fourteenth Street and related utilities (water, sanitary sewer, and storm sewer) in order to support parcel assembly and improve site plan layout with respect to GBD zoning requirements. 2. The reconfiguration and resignalization of the Highway 96/West Round Lake Road intersection. While this intersection currently operates in a marginal capacity, it is estimated that additional traffic volume from GBD development activities will require the intersection to be upgraded for safety reasons. Purpose of P1edee Aereement For this project, the City has agreed to finance the project, which is being coordinated by the EDA. As indicated above, this will require the City to issue $3,100,000 in General Obligation Bonds to finance the various public improvements. In order for the project to proceed, the EDA and City Council needs to execute a pledge agreement which includes the following statements: . - Memorandum - Tax Increment Pledge Agreement Page Two February 13, 1998 . . The City will sell bonds; . The bond sale proceeds will be made available to the EDA; and . All tax increment generated will be placed in a special fund by the EDA to be used to payoff thc principal and interest on the bonds. Recommendation Staff recommends that the EDA adopt Resolution #98-01, Authorizing Execution ofa Tax Increment Pledge Agreement with the City of Arden Hills Relating to $3,100,000 General Obligation Tax Increment Bonds, Series 1998A. BF /sls . . . CITY OF ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY RAMSEY COUNTY STATE OF MINNESOTA RESOLUTION NO. EDA-98-01 RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT WITH THE CITY OF ARDEN HILLS RELATING TO S3,100,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1998A BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ARDEN HILLS, MINNESOTA as follows: I. The President and Secretary/Treasurer of the Authority are hereby authorized to execute and deliver a Tax Increment Pledge Agreement with the City of Arden Hills, Minnesota (the "City") substantially in the form on file with the City, . providing for the pledge of tax increment for the payment of the principal of, premium, if any, and interest on, the City of Arden Hills, Minnesota $3, I 00,000 General Obligation Tax Increment Bonds, Series 1998A. 2. This resolution shall be effective as of the date hereof. PASSED AND ADOPTED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ARDEN HILLS THIS 17TH DAY OF FEBRUARY, 1998. DENNIS PROBST, PRESIDENT ATTEST: BRIAN FRlTSINGER, SECRETARY/TREASURER . --..--.- TAX INCREMENT PLEDGE AGREEMENT by and between . CITY OF ARDEN HILLS, MINNESOTA and ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY THIS AGREEMENT is made and entered into on or as of the _ day of , 1998, by and between the City of Arden Hills, Minnesota (the "City"), and the Arden Hills Economic Development Authority, Arden Hills, Minnesota (the "EDA"). WHEREAS, the City established Tax Increment Financing District No. 2 (the" TIF District") within Development District No. I (the "Project"), and on May 27, 1997 approved a modification to the Development Program for Development District No. I and a modification of Tax Increment Financing Plan for the TIF District; and WHEREAS, by resolution approved April 14, 1997, the City transferred control, authority and operation of the Project and the TIF District to the EDA; and WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, the City has agreed to finance a project to be undertaken by the EDA in the District through the issuance of general obligation bonds of the City in the principal amount of $3,100,000, designated the General Obligation Tax Increment Bonds, Series 1998A, . and hereinafter referred to as the "Bonds"; and WHEREAS, the EDA has agreed to pledge certain tax increment revenues to the City for the principal and interest on the Bonds; and WHEREAS, pursuant to Minnesota Statues, Section 469.178, Subdivision 2, any agreement to pledge tax increment revenues must be made by written agreement by and between the EDA and the City and must be filed with the Director of Property Records and Revenue of Ramsey County; NOW, THEREFORE, the City and the EDA mutually agree to the following: (I) The City will sell the Bonds, maturing in such amounts and in such years as the City determines, in accordance with the Program. (2) The proceeds from the sale of the bonds and the earnings from the investment of such proceeds will be made available to the EDA to payor reimburse certain public development costs paid, incurred, or to be paid or incurred in connection with the Project in accordance with the Program, including without limitation reimbursement of costs incurred by the City to acquire property in the District. . SJB132883 AR200-1 . (3) All tax increment generated from the TIF District recorded by the EDA from and after the date of this Agreement shall be deposited in a special fund (the "Project Fund") held by the EDA. The EDA hereby pledges to the payment of the principal and interest on the Bonds, tax increments from the Project Fund in an amount sufficient to pay 105% of debt service due on the Bonds. (4) Not less than three (3) business days prior to each debt service payment date for the Bonds, there shall be transferred from the Project Fund to the Debt Service Fund maintained by the City for the payment of the Bonds, an amount which when taken together with amounts already on deposit in such Debt Service Fund is equal to principal of and interest on the Bonds to become due on the following date. (5) Without regard to anything in this Agreement to the contrary, tax increment from the TIF District shall be available on a parity basis to pay principal of and interest on both the Bonds and any other obligations issued by the City, EDA or any other public body to finance public development costs paid or incurred by the EDA or City in the TIF District or the Project. (6) When the entire costs of the Project have been paid and all principal and interest on the Bonds and other obligations issued to finance the public redevelopment costs of the Project have been paid, and the City has been reimbursed from . collections of tax increment from the TIF District for collections of general ad valorem taxes used to pay principal of and interest on the Bonds, then the EDA shall report such fact to the City Council of the City and the EDA shall submit a final statement of such payments. (7) An executed copy of this Agreement shall be filed with the Director of Property Records and Revenue of Ramsey County pursuant to the requirement contained in Minnesota Statues, Section 469.178, Subdivision 2. - ," .~- . , ~.." SJB132883 .AR200-1 IN WITNESS WHEREOF, the City and the EDA have caused this Agreement to be duly . executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested, as of the day and year first above written. ATTEST: CITY OF ARDEN HILLS, MINNESOTA City Administrator Mayor (SEAL) ATTEST: ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY . Executive Director President (SEAL) . SJB132883 AR2oa~1 . ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETINGS **Make sure Minutes are stamped "DRAFT", put originals in President's (Mayor's) signature file in box, along with any resolutions, agreements, etc. *** AGENDA ON BRIGHT YELLOW STOCK - 20 Copies (extras in Council box) - 16 copies of full packet with Administrator Comments with enclosures Full Packets President (Mayor)/Commissioners (Councilmembers) Department Heads - Terry - Kevin Sheila FILE COPY - (Black Notebook) Ramsey County Library (TRP or Sheila will deliver) Arden Hills Branch iAJ~,.,,LI\I\-t-. \Wi) 1941 West County Road E2 Arden Hills, MN 55112 0'?~ -msi Atten: Reference Librarian PHONE: 636-1790 - FAX: 631-0467 ,16 '?) - Filla (FAX or Mail ifhe needs to be there) fA"'" ~~~~t Brian - ORIGINAL DISTRIBUTED AT MEETING by Department Heads (PUT IN COUNCIL BOX) - 1 Press Copy - Timesavers (Recording Secretary) - Atten: Carla Wirth (CU SEC'y': 320 East Main Street Anoka, MN 55303 PHONE: 421-8999 FAX: 421-9511 - Public Copy (Take Notebook to meeting) - Anyone involved on agenda as meeting reminder FAX - Prior to Meeting (KEEP RECORD) - Timesavers - Atten: Carla = 421-9511 (Agenda & Administrator Comments) Library ~ 628-6833 (Agenda only) Video Technician - Siobhan Parnicky = 646-1220 (Agenda only) (I.D. her FAX) POST AGENDA . CC/Front Desk --... -. -.. - t I J>..- . AGENDA ARDEN HILLS SPECIAL CITY COUNCIL MEETING ARMY RESERVE CENTER, 4655 LEXINGTON A VENUE NORTH TUESDAY, FEBRUARY 17,1998,4:45 P.M. THE SPECIAL MEETING WILL BE HELD IMMEDIATELY PRIOR TO THE REGULAR CITY COUNCIL WORKSESSION SCHEDULED AT 5:00 P.M. 4:45 P.M. 1. Call to Order 4:45 P.M. 2. Approval of Meeting Agenda . 4:45 P.M. 3. Unfinished and New Business a. Res. #98-23, Awarding the Sale of$3,100,000 General Obligation Tax Increment Bonds, Series 1998A; Fixing Their Form and Specifications; Directing Their Execution and Delivery; and Providing for Their Payment. 4:50 P.M. 4. Adjourn The above times may vary depending upon length of issue discussion. . - ---- ~~acd- ~(lll"l~ ro '" ~ ,,; .... N 0 .,. .,. .,. <D oo .,. ro 0 '" N 0 .... .... .,. l..t.!_~;o,,! 0 oo .,. <D .... .... .,. <D ;::. .,. N <D <D .... ID - .,. 0 .... .,. "'. N .... oo <D '" '" .... 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Q) ~ 0 o Ul '" l 0:" "'w !o 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~5:- u'ooooooooooooooooooooooooooooooooooo I 0 .gle: ~ ~ Lr?: ~ U'?q ~q Lr?: q 1.l'"! q U'?q ~ q ~ q ~ q ~ q ~q ~ q U1 q ~q '-0 q '-0 q 6 ..... .0 0 6~c3 ~Io 0...-...- N N(,,)(,,) ~ V' I.l1 m lJJ (D r-I'- co co Q) OJ ~ ~ ::::::~ ~ ~ 2? ~:;::. ~;::: ~~ ~ I I ---- ~ . City of Arden Hills $3,100,000 G.O. Tax Increment Bonds, Series 199M Final Rates OEBT SERVICE SCHE[JJlf Date Principal Coupon Interest Total P+I FISCAL TOTAL 3/12/1998 8/0111998 57.082.29 57.082.29 2/0111999 68,498.75 68.498.75 125.681.04 8/0111999 68.498.75 68.498.75 2/01/2000 68,498.75 68,498.75 136,997.50 8/01/2000 68.498.75 68.498.75 2/0112001 70.000.00 3.800X 68.498.75 138,498.75 206.997.50 8/01/2001 67,168.75 67.168.75 2/01/2002 155,000.00 3.900t 67,168.75 222.168.75 289.337.50 810112002 64.146.25 64 ,146 .25 2/01/2003 160,000.00 4.000% 64.146.25 224.146.25 288.292.50 8/01/2003 60.946.25 60.946.25 2/01/2004 170,000.00 4.050% 60.946.25 230.946.25 291.892.50 8/01/2004 57,503.75 57,503,75 2/0112005 175,000.00 4.15OX 57,503.75 232,503,75 290,007.50 8/0l/2005 53.872.50 53,872.50 2101/2006 185,000.00 4.200X 53,872.50 238.872,50 292.745.00 8/01/2006 49.987.50 49,987.50 2/0112007 195.000.00 4.300% 49.987.50 244,987.50 294.975.00 810112007 45,795.00 45,795.00 2/0112008 205,000.00 4.350% 45,795.00 250,795.00 296.590.00 8/0112008 41,336.25 41,336.25 2101/2009 215.000,00 4.450X 41,336.25 256,336.25 297.672.50 8/0112009 36.552.50 36.552.50 210112010 230.000.00 4.50ot 36,552.50 266.552.50 303.105.00 8/0112010 31,377.50 31.377.50 - 2/01/2011 245.000.00 4.600t 31,377.50 276,377.50 307,755.00 8/01/2011 25,742.50 25,742.50 2/01/2012 255,000.00 4.650t 25.742.50 280.742.50 306,485.00 8101/2012 19,813.75 19,813.75 2/01/2013 265,000.00 4.700% 19,813.75 284.813.75 304,627.50 8/01/2013 13,586.25 13.586.25 2/01/2014 280.000.00 4.700t 13,586.25 293,586.25 307,172.50 8101/2014 7,006.25 7.006.25 2/01/2015 295.000.00 4.750t 7.006.25 302.006.25 309,012,SO TOTAL 3,100.000.00 1. 549.246.04 14,649.246.04 t k<:-"ruA-L. pi f'F ",,-G<; c E: ~ Ibb;i04 Ehlers & Associates, Inc. FILE = ARDENH-final Public Finance Advisors 211711998 1,22 ,M YIELD STATISTICS Accrued Interest from 03/01/1998 to 03/12/1998.... 4.186.03 Bond Year Dollars. ........... ..........",..,." ,. $34,251.67 Average Life.... ._... .__.., ..... ..... ....." ,...,. 11.049 Years Average Coupon.., . , , " . , , ,... . ... .. ... . _. .... ..... 4.5231260% Net Interest Cost (HIC)_..,.............."..,.,.. 4.599549U True Interest Cost (TIC)...... n.................. 4.6073803t Bond Yield for Arbitrage Purposes...,....... _...._ 4.5062046t All Inclusive Cost (AIC)..............".......... 4.7246240X IRS FORM 8038 Net Interest Cost.., ,...., ,......."...... ._....._ 4. 5234140t Weighted Average Maturity............,........ n.. 11.018 Years Ehlers & Associates, Inc. FILE = AA[ft#j-final Pub 1 i c Fi nance Mvi sors 2/17/1998 U2,M - . City of Arden Hills $3.100,000 G.O. Tax Increment Bonds. Series 1998A Final Rates SIJJRCES & USES Oated 03/01/1998 Delivered 03/12/1998 r'Nk'- ~ ~ n wtfr'f"l_ SOORCES OF FUNDS Par Amount of Bonds............................... $3.100.000.00 3,100,000 Accrued Interest from 03/01/1998 to 03/12/1998.... 4.186.03 10 I 'O'lLf. TOTAL SIJJRCES $3,104,186.03 r3,ll0,%7-f I USES OF FUNDS Total Underwriter's Discount (0.845%)........... . 26.210.45 36"SV Costs of Issuance. .....,........... ,. .... .... ..... 30.000.00 3 OJ 000 Deposit to Debt Service Fund...................... 4,186.0~ 'O,87~ Deposit to Capitalized Interest (elF) Fund........ 246.976.0 Z.~>-,Ib Roundi n9 Amount. . . . . . . . . . . . . . . .. . . . . .. . .. . . . . . .. . . 2.796.813.50 7.)7b~) 098 TOTAL USES $3.104.186.03 )3,110, ~'1t! Ehlers & Associates. Inc. FILE = ARDENH.final . Public Finance Advisors 2/17/1998 1:22 PM - . . ~ .MRO CHICAGO CORPORATION 4.25% 2001-2006 $3,062,162.45 $1,606,475.88 4.7130% ago, Illinois 4.35% 2007 PRUDENTIAL SECURITIES, INC. 4.40% 2008 Chicago, Illinois 4.50% 2009 CIBC OPPENHEIMER & COMPANY 4.60% 2010 New York, New York 4.625% 2011-2012 4.70% 2013 4.75% 2014 4.80% 2015 GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. 4.25% 2001-2007 $3,061,250.00 $1,609,137.92 4.7187% Chicago, Illinois 4.30% 2008 4.40% 2009 4.50% 2010 4.625% 2011 4.70% 2012 4.75% 2013 4.80% 2014 4.875% 2015 - . - , 7 . BID TABULATION $3,100,000 General Obligation Tax Increment Bonds, Series 1998A City of Arden Hills, Minnesota SALE: February 17, 1998 AWARD: FBS INVESTMENT SERVICES, INC. AN OPERATING DIVISION OF U.S. BANCORP INVESTMENTS, INC. RATING: Standard & Poor's "A+" BBI: 5.08% NET TRUE NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST COST COST FBS INVESTMENT SERVICES, INC. 3.80% 2001 $3,073,789.55 $1,575,456.49 4.6070% AN OPERATING DIVISION OF U.S. BANCORP 3.90% 2002 INVESTMENTS, INC. 4.00% 2003 Minneapolis, Minnesota 4.05% 2004 EVEREN SECURITIES, INC. 4.15% 2005 Chicago, Illinois 4.20% 2006 4.30% 2007 - 4.35% 2008 4.45% 2009 4.50% 2010 4.60% 2011 4.65% 2012 4.70% 2013-2014 4.75% 2015 DOUGHERTY SUMMITT SECURITIES LLC 3.85% 2001 $3,061,250.00 $1,592,454.58 4.6680% Minneapolis, Minnesota 3.95% 2002 JOHN G. KINNARD & COMPANY 4.00% 2003 Minneapolis, Minnesota 4.10% 2004 4.15% 2005 4.20% 2006 4.30% 2007 4.35% 2008 4.40% 2009 4.50% 2010 4.60% 2011 4.65% 2012 4.70% 2013 4.75% 2014 4.80% 2015 . . Ehlers & Associates, Inc, 3060 Centre Pointe Drive Roseville, Minnesota 55113w'105 LEADERS IN PU BLlC FINANCE 16121697-8500, FAX 1612) 697-8555 www.ehlers-inc.com ~ I f CRONIN & COMPANY, INC. 4.00% 2001-2003 $3,066,396.20 $1,594,925.88 4.6701~. Minneapolis, Minnesota 4.10% 2004 SALOMON SMITH BARNEY 4.15% 2005 Chicago, Illinois 4.20% 2006 Josephthal, Lyon & Ross, Inc. 4.25% 2007 4.35% 2008 4.45% 2009 4.55% 2010 4.65% 2011 4.70% 2012 4.75% 2013-2014 4.80% 2015 PIPER JAFFRAY INC. 4.00% 2001 $3,062,198.60 $1,592,054.84 4.6702% Minneapolis, Minnesota 4.05% 2002 4.10% 2003 4.20% 2004 4.25% 2005 4.30% 2006 4.40% 2007-2009 4.50% 2010 4.60% 2011 4.625% 2012 4.65% 2013 4.70% 2014 4.75% 2015 . DAIN RAUSCHER INCORPORATED 4.30% 2001-2008 $3,063,221.15 $1,599,275.20 4.6911% Minneapolis, Minnesota 4.40% 2009 4.50% 2010 4.60% 2011 4.625% 2012 4.70% 2013 4.75% 2014 4.80% 2015 PAINEWEBBER, INC, 4.25% 2001-2006 $3,061,801.50 $1,598,822.56 4.6912% Chicago, Illinois 4.30% 2007 MORGAN STANLEY DEAN WITTER 4.35% 2008 Chicago, Illinois 4.45% 2009 4.55% 2010 4.625% 2011 4.65% 2012-2013 4.75% 2014-2015 . --.- ---------._---- H --- I ---T- -I i - ... 0 m " to> j -" '" I '" . . 0 - -- , --- - , - ~ ~ ~ . 0 0 0 - ~ CO I'- ...._n . '" 0 '" - <Xl <ti <ti -<i " - en N - en _0 ~ - ~ '" . .. - ~ " ~ - >- X N - ~ _z g Ol '" -- " TI X . 'ti' ~ E '" " " .c TI " - '" TI C W " til u.. c - TI _n - 0 ~ c -0 CO w It) - 0 >-= . ~- III '" ::J '" - .. . "f- oe( ::J CO C u_ j __ c 0 0 ~ ~- '" TI '0, " > c .E f- (J) 0 W n'.. -. 'tI f- a: CO a: " . 0 C " ll:l , '" I - < ::. " . ~ i 0 ~ , - , ~ ~. --- . - .. -- ~-- . G5 .. '" ~ --.---.--.- -~--- 0 rl '" N X - - , ~ 'ti' . " " . " (9 - '" 0 W -" - ll:l a: N U '" - , .~ ~ ~ . .Q '" ~ - " 0 .E , -< CO ~ --- . . .S! - l N -, I . ~ - i " .. - i N ~ - , -" 1il - , . -, Oi " 'tI- -',.c: I I ell " " ---- 0) n' .N 0 I ..._ ll:l u_ " <Xl . '" - em -..-- =-1::':::-"-. . ~ -jJ:: 0> 0 :l ::::j:'" ,... -------- "'>- N 'tI 0'> ~ _0 .E _10'> Ol . ... _<r- 2 " ~ -t).c , __::l III , N ll:l 0)l1.. _z 'tI -::l . " -<I: , 0 0 ll:l - I ~ N - Oi - _0 - a: ^ - . --- I 0 , i , . -'--- - -- noo -- , - I 0 ;f' ;f' oR oR ;f' oR oR oR oR oR oR oR ;f' oR ;f' ;f' 0 0 0 0 0 0 0 0 0 0 '" '" '" '" '" '" '" '" '" '" '" '" '" '" '" '" '" 0 00 <D " '" 0 '" <D " '" 0 00 <D " '" '" "- <D <D <D ,0 <D '" ui ui ui ui -i -i -i -i ---- --,.----.- - -,~--- __.1 HP OfficeJet Fax Log Report for Personal Printer/Fax/Copier City of Arden Hills 612633-7839 . Feb-13-98 03:28 PM Last Fax Identification Result Pa~es ~ Date Time Duration Diai!llostic 3390854 OK 02 Sent Feb- 13 03:28P 00:00:32 002582030022 .., Post-it" Fax Note 7671 To Ie.. Co./Dept. Phone # Fax # ~~~ . P U'o~ ~~ m \p~/ - c;B ,~ - HP OfficeJet Fax Log Report for Personal Printer/Fax/Copier City of Arden Hills 612633-7839 . Feb-13-98 03:30 PM Last Fax Identification Result Pa~es ~ Date Time Dumtion Diaflnostic 2281753 OK 02 Sent Feb~13 03:30P 00:00:32 002582030022 6.0.<1 Post-if' Fax Note 7671 To Phone # Fax' ;;I.'At; r Fax # . - HP OfficeJet Fax Log Report for Personal Printer/Fax/Copier City of Arden Hills 612 633-7839 . Feb-13-98 03:33 PM Last Fax Identification Result Pa~es ~ Date Time Duration Diamostic 3701378 OK 02 Sent Feb-13 03:32P 00:00:35 002582030022 6.0.4 Post-it" Fax Note 7671 From Co. Phone # Phone # ~ Fax# Fax. 32:>- - . - HP OfficeJet Fax Log Report for Personal Printer/Fax/Copier City of Arden Hills 612 633-7839 . Feb-13-98 03:45 PM Automatic Lo!! Identification Result Pa~s ~ Date Time Duration Dial!l1ostic 6286833 OK 04/04 Sent Feb-13 03: 36P 00:01: 11 002421030022 6339550 OK 04/04 Sent Feb-13 03:37P 00:00:56 002522030022 6333846 Error 02/04 Sent Feb-13 03:39P 00:01:46 002120430010534 4810551 OK 04/04 Sent Feb-13 03:41P 00:01: 11 002521030022 4821262 OK 04/04 Sent Fcb-13 03:42P 00:01: 13 002521030022 2 No answer 00/04 Sent Feb-13 03:45P 00:00:00 0020200000oo .., . . CITY OF ARDEN HILLS . MEMORANDUM DATE: February 13, 1998 TO: Mayor and City Council FROM: Brian Fritsinger, City Administrato~ SUBJECT: Administrator Comments for the February 17, 1998 Special Council Meeting THE SPECIAL MEETING WILL BE HELD IMMEDIA TEL Y PRIOR TO THE REGULAR CITY COUNCIL WORKSESSION SCHEDULED AT 5:00 P,M, 1. Unfinished and New Business a, Res, #98-23. Awarding Sale of Bonds . The Council is asked to adopt Res. #98-23, Awarding the Sale of$3,100,00O General Obligation Tax Increment Bonds, Series 1998A; Fixing Their Form and Specifications; Directing Their Execution and Delivery; and Providing for Their Payment. This action is related to the public improvements, which are part of the Gateway Business District development project with Welsh Company. BF/sls . --- ----- - CITY OF ARDEN HILLS MEMORANDUM DATE: February 13,1998 TO: Brian Fritsinger, City Administrator FROM: Terrance Post, City Accountant @ SUBJECT: G,O. Tax Increment Bond Sale Back~round On January 26, 1998, the City Council adopted Resolution #98-09, Providing for the Sale of $3,100,000 General Obligation Tax Increment Bonds, Series 1998A. This action was taken conditioned upon execution of the Development Agreement with Welsh Development Company, LLC. The closing date for execution of the Development Agreement has been scheduled for Friday, February 13, 1998. Subsequent Events , 1. Upon adoption of Resolution #98-09, the City's independent financial advisors, Ehlers and Associates, Inc., were instructed to release a Bond Sale Report to Standard & Poors (S & P) for an updated rating review and distribute such rated report to national institutional investors for bidding purposes. 2. As of the time of this writing, confirmation of the Development Agreement signing has not yet occurred; although staff anticipates this action occurring later in the day. Information Available at Meeting Ehlers and Associates, Inc. will present a tabulation of bid proposals as a bench handout at the Special Council meeting. Based upon this information, Council will consider awarding the sale of $3, 100,000 General Obligation Tax Increment Bonds to an identified purchaser's proposal as per the Terms of Proposal of the Bond Sale Report. Recommendation Staffrecommends that the Arden Hills City Council adopt Resolution #98-23, Awarding the Sale of $3, 1 00,000 General Obligation Tax Increment Bonds, Series 1998A; Fixing Their Term and Specifications; Directing Their Execution and Delivery; and Providing for Their Payment. BFlsls .. - Extract of Minutes of Meeting of the City Council of the City of Arden Hills, Ramsey County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Arden Hills, Minnesota, was duly held in the City Hall in said City on Tuesday, February 17, 1998, commencing at 7:30 o'clock P.M. The following members were present: and the following were absent: * * . * . . . * . . The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's $3,100,000 General Obligation Tax Increment Bonds, Series 1998A. The City Administrator presented a tabulation of the proposals which had been received in the manner specified in the Official Terms of Proposal for the Bonds. The proposals were as follows: - SJB132SS0 AA200-1 After due consideration of the proposals, Member then introduced -- the following resolution and moved its adoption: RESOLUTION NO. 98-J:i A RESOLUTION AWARDING THE SALE OF $3,100,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1998A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PA Y1vIENT BE IT RESOLVED By the City Council of the City of Arden Hills, Ramsey County, Minnesota (City) as follows: Section 1. Sale of Bonds. 1.01 It is hereby determined that: (a) the City has duly established the Development District No. I (District) pursuant to Minnesota Statutes, Sections 469.124 through 469.134 (the Act); , (b) the City has duly established tax increment financing district no. 2 (TlF District) within the District pursuant to Minnesota Statutes, Section 469.174 to 469.179 (TIF Act); (c) the City is authorized by Section 469.178 of the TIF Act to issue and sell its general obligations to pay all or a portion of the public development costs (Costs) related to the District as identified in the development program and tax increment financing plan (Plan) for the TIF District; (d) the following Costs to be financed by the Bonds are authorized by the Plan: Sources Par amount of Bonds $3,100,000 Accrued Interest 10.874 Total Sources $3,110,874 Uses Public Improvements $2,766,088 Discount Allowance 38,750 Capitalized Interest 276,036 Finance Related Expenses 30.000 .. Total Uses $3,110,874 SJBl32Saa AA200-1 - (e) it is necessary and expedient to the sound financial management of the affairs of the City to issue $3, I 00,000 General Obligation Tax Increment Bonds, Series 1998A (Bonds) to provide financing for the Costs. (f) the Tax Increment Pledge Agreement (Pledge Agreement) between the Arden Hills Economic Development Authority (Authority) and the City is hereby approved. The Mayor and City Administrator are authorized to execute the Pledge Agreement on behalf of the City in the form on file with the City on the date hereof, with such modifications as are approved by such officials, whose approval shall be conclusively evidenced by their execution of the Pledge Agreement 1.02. The proposal of (Purchaser) to purchase $3,100,000 General Obligation Tax Increment Bonds, Series 1998A (Bonds) of the City described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ plus accrued interest to date of delivery, for Bonds bearing interest as follows: Year of Interest Year of Interest Maturity Rate Maturitv Rate 2001 2009 2002 2010 . 2003 2011 2004 2012 2005 2013 2006 2014 2007 2015 2008 True interest cost: 1.03. The sum of $ being the amount proposed by the Purchaser in excess of$ will be credited to the Debt Service Fund hereinafter created. The City Administrator is directed to deposit 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 Administrator 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 Minnesota Statutes, Chapter 469 (Act), in the total principal amount of $3, 100,000, originally d~ted March I, 1998, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-I, upward, bearing interest as above set forth, and maturing serially on February I in the years and amounts as follows: ., SJBIJ2a.ao AR200-1 ---------- ___n______ Year Amount Year Amount - 2001 $70,000 2009 $215,000 2002 155,000 2010 230,000 2003 160,000 2011 245,000 2004 170,000 2012 255,000 2005 175,000 2013 265,000 2006 185,000 2014 280,000 2007 195,000 2015 295,000 2008 205,000 1.05. Ootional Redemotion. The City may elect on February 1,2005, and on any day thereafter to prepay Bonds due on or after February I, 2006. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. 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 Pavment 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 I and August I of each year, commencing August 1, 1998, to the registered owners of record as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Re!!istration. The City appoints the City Treasurer as Bond Registrar. The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: , (a) Re!!ister. The Registrar will keep 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 SJBl32B80 AA200-1 ---------- . 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) Exchan!!e 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 City. (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 such 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. . (I) 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 the Registrar, 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 SJBl32S80 AR200~1 ------ --------------- for redemption in accordance with its terms it is not necessary to issue a new Bond prior . to payment. (i) Redemotion. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failllre to give notice by publication or by mail to any registered o\'mer, or any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit ",ith the place of payment at that time. 2.04. Execution and Delivery. The Bonds will be prepared under the direction of the City Administrator and executed on behalf of the City by the signatures of the Mayor and the City Administrator, provided that all 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 any Bond, that signature , or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until deli very. When the Bonds have been so prepared, executed and authenticated, the City Administrator 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. 2.05. 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: . SJ'B132880 AR200-1 - [Face of the Bond] No. R- UNITED STATES OF AMERICA $ - STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS GENERAL OBLIGATION TAX INCREMENT BOND, SERIES 1998A Rate Maturitv Original Issue CUSIP March I, 1998 Registered Owner: Cede & Co. The City of Arden Hills, Minnesota, a duly organized and existing municipal corporation , in Ramsey County, Minnesota (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, with interest thereon from the date hereof at the annual rate specified above, payable February I and August 1 in each year, commencing August I, 1998, 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 the City Treasurer of the City of Arden Hills, Minnesota, as Bond Registrar, Paying Agent and Transfer 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. The City may elect on February 1,2005, and on any day thereafter to prepay Bonds due on or after February 1,2006. Redemption may be in whole or in part and ifin part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company (DTC) of the particular amount of such maturity to be prepaid. DTC will determine by lot tJ:e amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. - The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified tax exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for SJBl)2880 AR20Q-l ----- financial institutions and within the $10 million limit allowed by the Code for the calendar year -- of issue. Additional provisions of this Bond are contained on the reverse hereof and such provisions have the same effect as though fully set forth in this place. 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 Arden Hills, Ramsey 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 Administrator and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF ARDEN HILLS, MINNESOTA (Facsimile) (Facsimile) City Administrator Mayor (Reverse of the Bond] , This Bond is one of an issue in the aggregate principal amount of $3,100,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the City Council on February 17, 1998 (the Resolution), for the purpose of providing money to aid in financing the public development costs of a project (Project) in the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179, the Minnesota Tax Increment Financing Act, and Minnesota Statutes, Sections 469.124 through 469.134 and the principal hereof and interest hereon are payable primarily from tax increments resulting from increases in taxable valuation of real property in a tax increment fmancing district within the Project 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 in 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 SJBl32830 AA20Q-l - 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. 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. , 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 IT TEN -- as joint tenants with right of survivorship and Act. . . , . . . . not as tenants in common (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 SJB1328S0 AR200-1 --------- 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 any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Security 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. 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 The 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. .. SJB132Sao AA200.1 .,. Signarure of Date of Registration Registered Owner C i tv Treasurer Cede & Co. Federal ID #13-2555119 3.02. The City Administrator 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 to cause the opinion to be printed on or accompany each Bond. Section 4. Pavment: Securitv: Pled!!es and Covenants. 4.01. The Bonds are payable from the General Obligation Tax Increment Bonds, Series 1998A Debt Service Fund (Debt Service Fund) hereby created, and all tax increments (Tax Increments) received by the City pursuant to the Pledge Agreement described in Section 1.01 hereof are pledged to the Debt Service Fund. 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 Treasurer is directed to 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 Tax Increments when received. There is appropriated to the Debt Service Fund (i) capitalized interest funded from Bond proceeds, if any, (ii) any amount over the minimum purchase price paid by the . Purchaser, and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds. 4.02. It is determined that the estimated collection of Tax Increments for 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, and that such Tax Increments are irrevocably appropriated to payment of the Bonds, which Bonds may thereafter mature at the times determined herein in accordance with Minnesota Starutes, Section 475.54, Subd. 17. 4.03. The City Administrator is directed to file a certified copy of this Resolution with the Director of Property Records and Revenue of Ramsey and obtain the certificate required by Minnesota Statutes, Section 475.63. Section 5. Authentication of Transcript. 5.01. 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 proc~edings 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 tit furnished, will be deemed representations of the City as to the facts stated therein. SJB1323aO AA200~1 5.02. The Mayor and City Administrator are 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. 5.03. 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 Resource Bank & Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial adviser, Ehlers and Associates, Inc. Section 6. Tax Covenant. 6.01. The City covenants and agrees \vith the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. '- 6.02. (a) The City will comply with requirements necessary under the Code to establish and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued in calendar year 1998) exceed the small-issuer exception amount of $5,000,000. (b) For purposes of qualifying for the small issuer exception to the federal arbitrage rebate requirements, the City finds, determines and declares that the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148(f)(4)(C) of the Code. 6.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and . representations: SJ8U2SS0 AR20Q-1 ------- --- - -----...------ ----- . (a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (b) the City designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 1998 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 1998 have been designated for purposes of Section 265(b)(3)of the Code. 6.05. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entrv Svstem: Limited Obligation of Citv. 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 tI 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 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 SJB132880 AA200.1 -----.--------------.- --.----.--- 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 OTC to the City Administrator 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 Administrator will promptly deliver a copy of the same to the Bond Registrar and Paying Agent. 7.03. Representation Letter. The form of Blanket Issuer Letter of Representations proposed to be submitted to OTC, which is on file with the City Administrator and presented to this meeting (Representation Letter), is hereby approved, and the City Administrator is authorized to execute and deliver the Representation Letter in substantially the form on file, with such changes therein not inconsistent with law as the City Administrator and the City Attorney may approve, which approval will be conclusively evidenced by the execution thereof. 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-Entrv Svstem. 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 OTC 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. Pavments 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. Continuin!! Disclosure. 8.01. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. NOl\~ithstanding 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. . SJB132990 AA200-1 ., 8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator 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 , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. . ., SJB132SaO AR200~1 STATE OF MINNESOTA ) ) .. COUNTY OF RAMSEY ) SS. ) CITY OF ARDEN HILLS ) I, the undersigned, being the duly qualified and acting Administrator of the City of Arden Hills, Ramsey 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 February 17, 1998 with the original minutes on file in my office and the extract is a ftill, true and correct copy of the minutes insofar as they relate to the issuance and sale of$3,100,000 General Obligation Tax Increment Bonds, Series 1998A of the City. WITNESS My hand officially as such City Administrator and the corporate seal of the City this day of , 1998. . City Administrator Arden Hills, Minnesota (SEAL) tit SJB132880 AA200-1