Loading...
HomeMy WebLinkAbout19881003_regularMINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL OCTOBER 3, 1988 275 Answering rollcall were Members Kelly, Richards, Smith, Turner and Mayor Courtney. CENTENNIAL UPDATE PRESENTED. Dennis Maetzold, treasurer, reported that the finances for the Edina Centennial are in excellent shape. The fund balance as of August 31st was $215,000. The community has responded to the fund raising effort and has contributed $110,000 and has pledged another $42,000 to year end. Individuals have contributed $32,000. The best estimate is that the Centennial will generate in excess of $200,000 to be turned over to the City for the lasting memorial at Arneson Acres. Betty Hemstad, co-chair, reported that the major Centennial event for August was the golf tournament held at the Edina Country Club and the Interlachen Country Club. Fashion Show with 400/500 in attendance and the Historic Houses Tour. co-chair, said two events are scheduled for October, Edina Centennial Futures Conference on October 8 and the EDINAMITE benefit on October 15. Member Turner called attention to Founder's Day which is scheduled for Monday, December 12 at City Hall. leaders. been invited. In September there were two events, All Edina Kay Bach, The evening will reminisce about our past and will recognize past All members of past and present advisory boards and commissions have CONSENT AGENDA ITEMS ADOPTED. Member Turner to approve and adopt the consent agenda items as presented. Motion was made by Member Smith and seconded by Rollcall : Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. PUBLIC HEARING HELD ON PRELIMINARY PLAT FOR BERENBERG FIRST ADDITION: STAFF DIRECTED TO PREPARE FINDINGS FOR DENIAL. Clerk, approved and ordered placed on file. request for preliminary plat approval for Berenberg First Addition, located on the north side of Interlachen Boulevard and just west of Hollywood Road. The subject property measures approximately 61,000 square feet in area and is developed with a single family dwelling. easterly 50 feet of the lot. feet. contain approximately 46,600 square feet including the NSP easement. Excluding the easement, the lot would contain 26,359 square feet. feet of frontage on Interlachen Boulevard including the 50 foot easement. Larsen pointed out that the proposed driveway would encroach on the easement, but the new building pad would not encroach. The preliminary plat proposes to retain the existing dwelling in its present location. with 120 feet of depth and would be approximately 14,400 square feet in area. property is characterized by severe topography. feet near Interlachen Boulevard to 890 feet at the northerly boundary of the property. Development of the new lot would require extensive cut and fill activity, including significant retaining walls. insure protection of the house and pond from retaining wall collapse or erosion of the steep slopes. Staff recommended to the Community Development and Planning Commission three reasons why the subdivision did not represent sound community planning. Lot Size - The subject property is part of the Hilldale Addition. Lots in the Hilldale Addition are quite large. West is about 160 feet wide. fronting on Interlachen Boulevard, and immediately west of the property are 125 or 130 feet in width. Lots in the proposed subdivision would be 118 and 76 feet in width. It appears the reason this lot was made wider in the original plat was to account for the NSP easement and also because of the severe topography of the lot. These physical constraints continue to exist today as they did when the property was originally platted. Character and Symmetry - The Comprehensive Plan states "Allow further subdivision of developed single family lots only if neighborhood character and symmetry are preserved." The NSP easement forces the new house to be located in the rear yard of the existing dwelling. The new lot will appear to be a neck lot when developed, which will have a negative impact on the existing character and symmetry of the neighborhood, and be contrary to the Comprehensive Plan. Development - The Comprehensive Plan states "Require increased minimum lot sizes for single family and two family lots on steep slopes." very steep slopes which require substantial alteration for the development. The existence of these slopes seems a logical reason why the lot was platted as a larger lot than some adjacent lots in the original Hilldale Addition. the preceding reasons staff recommended denial of the proposed subdivision. Planning Commission heard the subject proposal on July 6 and July 27 and concurred with staff's reasons and recommended that the Council deny the plat. Larsen concluded his presentation with the recommendation that, if the Council agrees, the hearing be continued to October 17 and that staff be directed to prepare findings of fact and reasons in support of denial for further review and final action by the Council. He advised that Gary Grandrud, 8400 Normandale Affidavits of Notice were presented by Planner Craig Larsen presented the The lot area includes an NSP easement covering the The easement area is approximately 20,250 square The preliminary plat proposes to create one new buildable lot which would The lot would have 76 Planner That lot would be 118 feet wide The Ground elevation falls from 940 The proposed building pad is approximately 30 feet below street grade. Soil engineering would be required to A typical lot on Circle East or Circle The four lots in Hilldale Addition adjacent to, Lots in the area are typically 160 feet in width. Site The property contains Based on The Planner 10/3/88 276 - Boulevard, attorney representing Danny Berenberg and Mike Black, planner with J.R. Hill &Associates, were present. For the record, it was noted that a number of letters and petitions had been received in opposition to the proposed subdivision. Mr. Black argued in support of the preliminary plat and stated that the property is designated for single family residential development, that the lots in the proposed plat exceed Zoning Ordinance requirements for lot area, width and depth. He said that the planning has already been done to specifically design a house for the lot that will fit the topography. He submitted that there is no symmetry in the neighborhood, that homes are all individually designed and that the true character is that there is no symmetry. Construction of a new home would mean change for the area and would be an interruption to the status quo, but it does not mean it would have a negative impact. He referred to lots along Interlachen Boulevard that have varying lot size and width, including several neck lots that had been approved in the past. letters that had been written in objection to the proposed plat. asking the Council to be objective and keep an open mind when considering the proposed plat. He reiterated that the proposed plat meets all Zoning Ordinance requirements and that the neighborhood is not symmetrical and has very many characteristics. . noted that the lots in the Cooper addition are far below the new lot that will be created by Mr. Berenberg. He also made reference to other lots in the area which were of varying sizes and had been approved by the City. introduced- himself as representative of the neighbors who are directly concerned with the proposal. the neighborhood, precedent for further subdivision in the area and concern for the wetland and wild life around the pond. proposed plat were Richard Miller, 5340 Hollywood Road, Donna Scudder, 4528 Oxford ' Avenue, Looell Baker, 8 Spur Road, and Tom Martinson, 4536 Oxford Avenue. Danny Berenberg, 5400 Interlachen Boulevard, the proponent, said that his primary concern was the traffic safety issue on Interlachen Boulevard and that he wanted to move his family off that roadway to keep them safe. that both staff and Planning Commission have recommended denial. said that he could not approve the plat based on what he has heard. Member Turner then made a motion directing the staff and City Attorney to prepare findings and reasons to support denial of the preliminary plat for further review and action by the Council and to continue the hearing to October 17, 1988. She commented that in listening to the presentations, looking at the situation and in reading all materials presented that she was convinced that the proposal is not consistent with the Comprehensive Plan. Further, that in particular the character and symmetry issue and the steep topography points are relevant in this case and she could not support the proposal. Motion was seconded by Member Richards who commented that because the orientation for the plat is away from Interlachen Boulevard that we must look to the neighborhood to the north and west (the does pass that the proposed findings be circulated to the proponent or his attorney as well as to Mr. Van Valkenburg who is representing the neighbors so that they would all have an opportunity to comment upon the findings prior to the meeting of October 17, 1988. Mr. Black also responded to comments in various He concluded by Mr. Grandrud also spoke in support of the Berenberg's proposal. He James Van Valkenburg Their concerns include changing the character and symmetry of Also speaking in opposition to the Member Richards commented Member Smith - c Hilldale subdivision) to measure the proposal. He suggested that if the motion i Mayor Courtney then called the motion. Rollcall : Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. *PRELIMINARY PLAT FOR LOT 6. BLOCK 1. EDINA HIGHLANDS REFERRED TO PLANNING COMMISSION. refer the modified preliminary plat for Lot 6, Block 1, Edina Highlands to the Planning Commission as elected by the proponent. Motion was made by Member Smith and was seconded by Member Tumer to Motion carried on rollcall vote, five ayes. *HEARING DATE OF 10/17/88 SET FOR VARIOUS PLANNING MATTERS. Motion was made by Member Smith and was seconded by Member Turner setting October 17, 1988 as hearing date for the following planning matters: 1) Final Development Plan for Americana State Bank - Building &pansion, 5050 France Avenue South, 2) Amendment to Subdivision Ordinance No. 801. Motion carried on rollcall vote, five ayes. PUBLIC HEARINGS CONDUCTED ON SPECIAL ASSESSMENTS. Affidavits of Notice were presented by Clerk, approved and ordered placed on file. given, public hearings were conducted and action taken as hereinafter recorded on the following proposed assessments. Due notice having been 1. MAINTENANCE IMPROVEMENT NO. M-88 Location: 50th Street and France Avenue Business District Engineer Fran Hoffman recalled that the public hearing on Maintenance Improvement No. M-88 had been continued from September 19, 1988 so that all the SOth/France business owners and tenants could be notified about parking ramp maintenance fees that may be assessed in the future. This hearing is to assess the 1988 costs and also to discuss other potential assessments for parking ramp maintenance. explained that currently the City provides a fulltime employee who works at the 50th/France area together with some parttime summer help and assistance from He 10/3/88 277 Public Works crews from time to time. cleaning service year round, cares for trees and plantings, repairs sidewalk tiles, etc. Annually, the City has assessed the costs for that work to the 50th Street and France Avenue Business District. Other. costs in the Public Works budget that have not been assessed to the District in the past include streets, parking ramps/lots, street lighting and walkway lighting and sidewalk replacement. Engineer Hoffman explained that, in looking at the City's budget in the last several years, the Council has asked if it should be considering changing our policy on assessing some of the costs for the parking ramps/lots back to the 5Oth/France commercial area. These have been routine costs such as snow removal, sweeping, ramp and walkway lighting, and restoration. A part of the restoration costs have been paid from revenues obtained from sale of parking ramp stickers (approximately $10,00O/yr). This income would continue to offset some of the costs. Hosmer Brown, representing the 50th/France community, stated that the business property owners as well as the businessmen are often one and the same. He thanked the City for past cooperation and partnership in updating the 50th/France commercial area in the early '70s. When the plans were made for the updating, which included the ramps, it was indicated that the ramps would be publicly owned/publicly used and would maintain a public purpose in that they would reduce street traffic by getting cars off the street. said the ramps would be treated like a City street and would be maintained from street maintenance funds. the maintenance through taxes. there are more ramps, more parking lots, and more competition. As business people, they want to be responsible to that but also have to keep in mind the obligations they have as property owners, must be careful that they do not overload overhead and must be responsible to their tenants as well as to their customers. Mr. Brown said they want to be fair to the Edina taxpayer so that they do not pay for things that obviously are for the business benefit and of a private nature. It must be kept convenient and also kept safe. He noted two aspects to the parking ramps at 50th/France, 1) its private use to them as businessmen and property owners and a tremendous benefit to customers and employees, 2) public aspect - it does keep cars off the street and it must be kept safe. That entails lighting and policing it. He presented the following proposal: a) that the City assume the portion of the costs pertaining to public safety, e.g. police protection and lighting; b) the 50th/France commercial area will assume routine cost of maintenance, snow removal, sweeping, etc. He added that the City should use its best judgement in applying the revenues obtained from the parking stickers. . In response to Member Kelly's question as to costs, Engineer Hoffman said the proposal, without figuring in the $10,000 sticker sales, would result in a 1/3-2/3 split as the lighting constitutes approximately 2/3 of the annual cost. As to snow removal, that depends of the amount of snowfall; sweeping is done weekly. level of maintenance they want and said he felt the proposal was a practical approach. as requested. the maintenance expenditures for the 50th/France commercial area over the past years. assessment for the 1988 expenses which should be levied and the other is whether the City should change its policy in the future to include additional maintenance costs in the annual assessment. received prior hereto. Smith, seconded by Member Turner and carried unanimously. Resolution later in Minutes.) an analysis of past maintenance costs for the 50thDrance commercial area that have not been included in the annual assessment and that the issue of using monies generated from the tax increment district for this purpose also be investigated. Motion was seconded by Member Richards. ' This individual provides a maintenance and At that time the City The property owners at 50th/France paid their share of He pointed out that times have changed since then, Member Smith asked how much input the 50th/France District has had on the Engineer Hoffman said that staff meets occasionally with them on issues Member Richards commented that he would like to see a breakdown of Engineer Hoffman explained that there are two issues here; one is the No objections were heard and none had been The 1988 assessment was approved by motion of Member (Assessment levied by Member Smith then made a motion that staff prepare Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. 2. ALLEY IMPROVEMENT NO. A-178 Location: Between 3913 and 4001 West 48th Street Engineer Hoffman presented analysis of assessment showing total cost of construction of $2,981.18 proposed to be assessed against two assessable lots at $1,445.69 per lot against estimated assessment of $1,429.48 per lot. Assessment to be spread over 10 years. No objections were heard and none had been received prior hereto. Member Turner and carried unanimously. Minutes. ) Assessment approved by motion of Member Richards, seconded by (Assessment levied by Resolution later in 3. STREET LIGHTING IMPROVEMENT NO. L-29 Location: York Avenue from West 75th Street to West 78th Street Engineer Hoffman presented analysis of assessment showing total cost of construction of $57,679.68 less state aid funds of $24,746.03 for a net assessable cost of $32,933.65. The proposed assessment is $5.00/ft for multi-family property and $10.00/ft for commercial property against estimated assessment of $10.00/ft for multi-family property and $20.00/ft for commercial property, proposed to be assessed against 4,936.44 lineal feet. objections were heard and none had been received prior hereto. Assessment to be spread over 10 years. NO Assessment 10/3/88 278 approved by motion of Member Turner, seconded by Member Smith and carried unanimously. (Assessment levied by Resolution later in Minutes.) 4. STREET LIGHTING IMPROVEMENT NO. L-30 Location: West 76th Street from Xerxes Avenue to Edinborough Way Engineer Hoffman presented analysis of assessment showing total cost of construction of $34,100.32 less state aid funds of $22,116.17 for a net assessable cost of $11,984.15. The proposed assessment is $5.00/ft for multi-family property and $10.00/ft for commercial property against estimated assessment of $10.00/ft for multi-family property and $20.00/ft for commercial property proposed to be assessed against 1,977.20 lineal feet. Assessment to be spread over 10 years. objections were heard and none had been received prior hereto. approved by motion of Member Turner, seconded by Member Smith and carried unanimously. No Assessment I I (Assessment levied by Resolution later in Minutes.) 5. STREET LIGHTING IMPROVEMENT NO. L-31 Location: Edinborough Way from York Avenue to West 76th Street Engineer Hoffman presented analysis of assessment showing total cost of construction of $52,477.62 proposed to be assessed against 1,028,973 square feet at $0.051 per square foot against estimated assessment of $0.085 per square foot. Assessment to be spread over 10 years. No objections were heard and none had been received prior hereto. Assessment approved by motion of Member Turner, seconded by Member Smith and carried unanimously. (Assessment levied by Resolution later in Minutes.) 6. PUBLIC WORKS GARAGE IMPROVEMENT NO. PW-88 Location: City Public Works Garage Engineer Hoffman presented analysis of assessment showing total project cost of $2,049.962.32 with cost allocable to the ramp of $1,555,140.02 for a total assessable cost of $311,428.00. years. He advised that in 1987 the HRA entered into an agreement with Jerry's Enterprises relative to the Grandview Parking Ramp/Public Work garage project. This agreement obliged Jerry's to accept a special assessment for a portion of the cost of the Public Works Garage. assessment is equal to 20% of the cost of the ramp. none had been received prior hereto. Richards vas seconded by Member Smith and carried unanimously. by Resolution later in Minutes.) Following the presentation of analysis of assessments and approval, Member Smith introduced the following resolution and moved its adoption: Assessment is proposed to be spread over 15 According to the agreement, the amount 02 this Assessment approved by motion of Member No objections were heard and (Assessment levied I I SPECIAL ASSESSMENTS LEVIED ON ACCOUNT OF VBRIOUS PUBLIC IMPROVEMENTS BE IT RESOLVED by the City Council of the City of Edina, Minnesota, as follows: 1. The City has given notice of hearings as required by law on the proposed assessment rolls for the improvements hereinafter referred to, and at such hearings held on October 3, 1988, has considered all oral and written objections presented against the levy of such assessments. 2. Each of the assessments as set forth in the assessment rolls on file in the office of the City Clerk for the following improvements: Maintenance Improvement No. M-88 Alley Improvement No. A-178 Street Lighting Improvement No. L-29 Street Lighting Improvement No. L-30 Street Lighting Improvement No. L-31 Public Horks Garage Improvement No. 3PR-88 does not exceed the local benefits conferred by said improvements upon the lot, tract or parcel of land so assessed, and all of said assessments are hereby adopted and confirmed as the proper assessments on account of said respective improvements to be spread against the benefitted lots, parcels and tracts of land described therein. 3, The assessments shall be payable in equal annual installments, the first of said installments, together with interest at a rate of 9.0% per annum on the entire assessment from the date hereof to December 31, 1989, to be payable with the general taxes for the year 1989, except that the interest rate for Public Uorks Garage Improvement No. PU-88 shall be 8.3% per annum. To each subsequent installment shall be added interest at the above rate for one year on all then unpaid installments. The number of such annual installments shall be as follows: -CE IMPROVEMENT NO. H-88 1 year ALTXY IMPROVEMENT NO. 4-178 10 years STREET LIGHTING IMPROVEMENT NO. L-29 10 years STREET LIGHTING IMPROVEKEN!C NO. L-30 10 years STREET LIGHTING IMPROVEMENT NO. L-31 10 years PUBLIC UORKS GARAGE IPTPROVEhBXl! NO. PH-88 15 years 4. The City Clerk shall forthwith prepare and transmit to the County Auditor a copy of this resolution and a certified duplicate of said assessments with each then unpaid installment and interest set forth separately, to be extended on the tax lists of the County in accordance with this resolution. 5. The City Clerk shall also mail notice of any special assessment which may be payable by a county, by a political subdivision, or by the owner of any right-of-way as required by Minnesota Statutes, Section 429.061, Subdivision 4, and if any such assessment is not paid in a single installment, the City Rreasurer I Name of Improvement Number of Installments 219 shall arrange for collect-3n thereof in installments, as set forth in said Section. Motion for adoption of the resolution was seconded by Member Turner Rollcall : Ayes: Kelly, Richards, Smith, Turner, Courtney Resolution adopted. n PUBLIC HEARING CONDUCTED: VACATION OF WEST 76TH STREET GRANTED CONDITIONALLY. Affidavits of Notice were presented, approved and ordered placed on file. Engineer Hoffman explained that this request for vacation of West 76th Street is part of the platting of the new Centennial Lakes project. platted for West 76th Street between Edinborough Way and France Avenue. existing street has all types of utilities beneath the street which must be relocated. The City and utility companies would agree to vacate the existing street subject to the following conditions: 1) granting of new easements and street right of way, 2) adequate time to relocate existing utilities, and 3) reimbursement to utility companies for relocation costs, heard, Member Turner introduced the following resolution and moved adoption, subject to 1) granting of new easements and street right of way, 2) adequate time to relocate existing utilities, and 3) reimbursement to utility companies for relocation costs: RESOLUTION VACATING EASEMENTS FOR STREET PURPOSES A new location is being The No objections being WHERJQE, a resolution of the City Council, adopted the 12th day of September, 1988, fixed a date for a public hearing on a proposed vacation of easements for street purposes; and WHERJQE, two weeks' published and posted notice of said hearing was given and the hearwg was held on the 3rd day of October, 1988, at which time all persons desiring to be heard were given an opportunity to be heard thereon: and WHERJQE, the Council deems it to be in the best interest of the City and of the public that said easements vacation be made; and WHERlUE, the Council has considered the extent to which the vacation affects existing easements within the area of the vacation and the extent to which the vacation affects the authority of any persons, corporation, or municipality owning or controlling electric, telephone or cable television poles and lines, gas and sewer lines, or water pipes, mains, and hydrants on or under the area of the proposed vacation, to continue maintaining the same, or to enter upon such easement area or portion thereof vacated to maintain, repair, replace, remove, or otherwise attend thereto; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Edina, Hennepin County, Minnesota, that the following described portion of West 76th Street be and is hereby vacated effective as of October 3, 1988: That part of West 76th Street lying east of France Avenue and west of the westerly intersection of Edinborough Way and West 76th Street and that the Clerk is authorized and directed to cause a notice of completion of proceedings to be prepared, entered in the transfer record of the County Auditor, and filed with the County Recorder in accordance with Minnesota Statutes, Section 412.851. Motion for adoption of the resolution was seconded by Member Smith. Rollcall : Ayes: Kelly, Richards, Smith, Turner, Courtney Resolution adopted. *BIDS AWARDED FOR SANITARY SEWER IMPROVEMENT NO. SS-379. WATEEUWIN IMPROVEMENT NO. WM-365 AND STORM SEWER IMPROVEMENT NO. ST.S-186 (MINNESOTA DRIVE): SANITARY SEWER IMPROVEMENT NO. SS-377, WATERMAIN IMPROVEMENT NO. WM-363. STORM SEWER IMPROVEMENT NO. ST.S.-185 (MALIBU DRIVE): SANITARY SEWER IMPROVEMENT NO. SS-378 AND WATERMAIN IMPROVEMENT NO. WM-364 (RYAN AVENUE). Motion was made by Member Smith and was seconded by Member Turner for award of bids for Sanitary Sewer Improvement No. SS-379, Watermain Improvement No. WM-365 and Storm Sewer Improvement No. St.S-186 (Minnesota Drive): Sanitary Sewer Improvement No. SS-377, Watermain Improvement No. WM-363 and Storm Sewer Improvement No. St.S.-185 (Malibu Drive); and Sanitary Sewer Improvement No. SS-378 and Watermain Improvement No. WM-364 (Ryan Avenue) to recommended low bidder, Annandale Contracting, Inc., at $189,559.93. Motion carried on rollcall vote, five ayes. *BID AWARDED FOR TWO MOTOR STARTERS FOR RESERVOIR PUMPS. Member Smith and was'seconded by Member Turner for award of bid for two motor starters for reservoir pumps to recommended low bidder, United Electric, at $7,594.00. Motion was made by Motion carried on rollcall vote, five ayes. *BID AWARDED FOR FIRE DEPARTMENT PAGERS. Motion was made by Member Smith and was seconded by Member Turner for award of bid for Fire Department pagers to recommended sole supplier, Motorola Communications, (seven county fire consortium bid), at $6,552.00. Motion carried on rollcall vote, five ayes. 1013/88 FRANCE AVENUE RECONSTRUCTION/MAVELLE DRIVE/COLLINS INTERIORS PARKING DISCUSSED: CONTINUED TO 10/17/88. reconstructing France Avenue which results in property loss and parking in front of the Collins Interiors building, 7010 France Avenue South. needs about 150 parking spaces to meet City ordinance requirements. there are only 40+ spaces on the site. eliminate about 15 spaces and would make the site even less usable. has requested that the City look at a solution that would result in no loss of parking for the Collins Interiors site. of the north side of Mavelle Drive to develop parking along the south side of the Collins building, while preserving two lanes (one in each direction) on Mavelle for vehicles. Staff believes that this would be a reasonable solution. It would result in leaving Mavelle Drive open as a public street and would provide some relief to the Collins site in terms of replacement parking. staff would recommend holding a public hearing to consider vacating a portion of the north side of Mavelle Drive and the closing of the curb cuts on France Avenue as a safety measure. Member Smith said he would be concerned about vehicles backing out into the street, and also said that possibly the City should consider a different use for the Collins site. Member Richards commented that if the Council were to hold a public hearing that all alternatives should be considered including vacating all of Mavelle Drive. Mavelle Drive. 1988 so that more information on alternatives could be brought to the Council. formal action was taken. Engineer Hoffman advised that Hennepin County is The Collins building Currently, The County reconstruction project would The County The proposal would be to vacate a portion I Engineer Hoffman said Member Kelly asked for traffic counts on No It was informally agreed to continue this matter to October 17, CRAIG LARSEN APPOINTED TO JOINT POWERS GROUP (1-494 CORRIDOR COMMISSION). Engineer Hoffman advised that per the approved Joint Powers Agreement the Council must designate two persons and an alternate to serve on the Joint Powers group known as the 1-494 Corridor Commission. Team from the City consists of Member Turner and Fran Hoffman. Management Team (PMT) oversees all the other activity groups, e.g. Joint Powers Organization, Travel Management Organization (TMO) and the EIS for 1-494 Selection Committee. member to the Joint Powers Organization. willing to continue as the Council representative on the PMT until the end of the year and that after the City election the Council explore who is able and willing to be the elected representative on the PMT. Hotion was made by Member Kelly and was seconded by Member Smith to appoint Planner Craig Tarsen to serve on the Joint Powers Organization of the 1-494 Corridor Commission. Currently, the 1-494 Project Management The 1-494 Project Staff would recommend that Craig Larsen be appointed as the staff Member Turner stated that she was 1 Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. PURCHASE OF 10 RADON TESTING KITS APPROVED. meeting of September 19, 1988, the Council had referred the Health Department's request for purchase of radon test kits to the Edina Community Health Services Advisory Committee for recommendation. Sanitarian Dave Velde reported that the Committee at their meeting of September 22, 1988 had recommended approval of the $250.00 appropriation for ten radon test kits to be used to sample radon levels in ten Edina homes for the purpose of determining the range of radon levels in the community. Motion of Member Turner was seconded by Member Smith to approve the purchase of 10 radon test kits at a total cost of $250.00. Manager Rosland recalled that at the Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. PARK BOARD MINUTES OF SEPTEMBER 13. 1988 DISCUSSED. Manager Rosland recalled that at the last meeting the Council had been concerned about several issues reflected in the Edina Park Board Minutes of September 13, 1988. Braemar Golf Association - Member Richards explained that he was concerned about the request of the newly formed Braemar Golf Association that the Edina Park Board appoint a representative to the Association. giving the Association some kind of approval via the Park Board rather than the Council itself addressing any issues or policies regarding Braemar Golf Course that would affect the community as a whole. He added that Braemar is a public facility and it is not theirs to make policy on or deal with as they see it, but rather to come to the Council to make the ultimate decisions as to how that facility is run. He observed that if the Golf Association has any issue that it should go to the Park Board to make its pitch and then the Park Board would make its recommendations to the Council for final decision as it relates to the facility. that they would address all their issues to the Park Board who would then carry them on to the Council. Member Smith said he shared the concerns of Member Richards and that by "accepting" and taking an official vote that the Park Board endorses the Braemar Golf Association. He said if it had been a recommendation of the Park Board then the Council could have debated it. because she did not know how the other athletic associations were established, she looked at the association as the one body that the other groups, e.g. Senior Men's, Women's League, Nine Hole, etc., could report to. Then the association could bring their issues to the Park Board so that the Park Board would have one body to deal with regarding golf. He said he felt that could be interpreted as the Council .- .' I Park Director Kojetin responded that the Golf Association had indicated Member Kelly said that, . :. If that would be the case she saw no problem 281 I 5 rn with it. She added that she did not think anyone from the Park Board should be a representative and that it should be dealt with as any of the other athletic associations. Manager Rosland explained that the athletic associations basically set themselves up and that staff has served as liaison to help them promote their programs. Council. acceptance of the Association but that they exist like the other athletic associations to bring their concerns to the Park Board for recommendation to the Council. He said he would draft a letter, for the Council to approve, to the Braemar Golf Association communicating this. Member Richards said he would like to promote full use of the City's parks but that he was bothered by the concept of private enterprise coming in and saying they would like to use a facility during the off season and he questioned whether renting to private enterprises is a good policy. Park Director Kojetin said that there have been requests to rent City facilities for a period of time and that this is basically a policy issue. Member Turner asked about the status of the roller blade program. asphalt was put in Lewis Park for a possible roller blade program. Member Richards, Mr. Kojetin said the dekhockey would not start until March. Member Richards said he would like to see the Park Board address some kind of policy regarding the leasing of City facilities to the private sector and bring a recommendation to the Council so that an answer could be given to the dekhockey people by January. Mr. Kojetin said that this was a concern of the Park Board and that they would like to get some direction on the issue of leasing facilities. Member Richards made a motion to continue the matter of the lease for dekhockey at Lewis Park to the meeting of January 12, 1989, and to refer to the Park Board the issue of adopting a policy statement regarding the leasing of public facilities to the private sector and to submit their recommendation by the last meeting in December. Motion was seconded by Member Turner. Ayes: Kelly, Richard, Smith, Turner, Courtney Motion carried. All issues are brought to the Park Board for recommendations to the He suggested that they be advised that there is no formal political Dekhockev Proposal for Lewis Park - Mr. Kojetin said that program has not developed even though In response to 1989 Fees & Charpes - Manager Rosland noted that the Park Board approved the 1989 Fees and Charges as presented with the following exceptions: 1) that the resident family season ticket at the Arena be $55.00 and the resident individual season ticket be $35.00, and 2) that the resident family season pass at the pool be $46.00 and the resident individual season pass be $30.00. this be discussed with the agenda item approving the 1989 Budget later in the meeting. Council the current financial figures so that the Council would know exactly what they were doing by not adopting the recommended fees and charges. EDINAMITE SILENT AUCTION PARTY DISCUSSED.' Member Turner said that the Council has been contacted by the Centennial leadership regarding the Council's continuing contribution of a party to the EDINAMITE silent auction on October 15, 1988. suggested that the winter party at Braemar may have run its course and that this be discussed by the three Council Members who will be active in 1989. Member Smith said that this should be decided as the silent auction committee would like to include the Council party in their publicity for EDINAMITE. He also said that he felt something new is in order. Member Richards commented that through the years the Council's party has been the major fund raiser for EDINAMITE and that he would support its continuation. He suggested that the Council put on some kind of affair sometime prior to October 15, 1989 for a minimum bid of $2,000 and that the format be decided by the new Council. work on something scaled down, possibly for 12 to 20 people. Member Smith offered the suggestion of a dinner that could be made into a fun night for 20 people at $100 each and that the dinner value be approximately $20 with the remainder considered a contribution to The Edina Foundation. After considerable discussion, Member Smith made a motion that the Council commit to a party at Edinborough Park for up to 100 people for a minimum bid of $2,000 with a surprise format. was seconded by Member Richards. Member Turner suggested Member Richards said that it would be helpful to have in front of the She Member Kelly said she would be willing to Motion Ayes: Smith, Richards Abstained: Kelly Nays: None i AMM REQUEST FOR FUNDING FOR PROPERTY TAX COMPUTER ANALYSIS FOR 1989 APPROVED. Manager Rosland explained that the Association of Metropolitan Municipalities (AMM) and the Municipal Legislative Commission (MLC) have been working with the League of Minnesota Cities (LMC) Coordinating Committee in discussing property tax computer analysis for 1989. The LMC has committed to developing computer analysis capability for the 1990 legislative session but a transition year is necessary to be able to react and participate knowledgeably in the 1989 session. Coordinating Committee has been negotiating with the Coalition of Greater Minnesota Cities for development of a property tax reform proposal for 1989, a key element of which, will be retention of the principles of a homestead credit. This effort will cost approximately $185,000 for computer data update and proposal development. contributions. The suburbs share of funding has been targeted between $35-50,000 which will be raised voluntarily. The To raise this amount the cities are being asked to make Edina, along with other larger metropolitan EQ/3/88 282 suburbs, is being asked to contribute $2,000 to this effort. he would recommend that, if the board of the LMC also recommends participation, that the City contribute to this effort. contribute its share of $2,000 to the JWH for the property tax computer analysis proposal. Manager Rosland said Member Kelly made a motion that the City Motion was seconded by Member Turner. Ayes: Kelly, Richards, Smith, Turner, Courtney Motion carried. DATE OF NOVEMBER 15 SET FOR COUNCIL/LEGISLATORS BREAKFAST. recommended that the Council meet soon with our legislators and other elected officials regarding issues that will be before the 1989 Legislature. generally agreed to set November 15, at 7:30 a.m. as the date for the Council/Legislators Breakfast Meeting. Member Richards suggested that items for a tentative agenda be given to the Manager for inclusion in the next Council packet. 1988 SOLID WASTE MANAGEMENT AGREEMENT WITH HENNEPIN COUNTY APPROVED. Motion vas made by Member Smith and seconded by Member Turner to adopt the following resolution: RESOLUTION BE IT RESOLVED by the City Council of the City of Edina, Minnesota, that it hereby approves the Solid Uaste Emagement Agreement vith Hennepin County (Contract No. 80170) to provide partial funding (60%) for Edina's recycling program; BE IT FURTHER RESOLVED that the Council hereby authorizes and directs the Mayor and Manager to execute the Agreement on behalf of the City. Motion carried on rollcall vote, five ayes. Manager Rosland It was I POSSIBILITY OF APPLYING FOR GRANT MONEY FOR NON-POINT SOURCE POLLUTION DISCUSSED. Member Richards observed that he had recently seen some material relating to the issue of non-point source pollution as it relates to public waters and the possibility for a partnership program or grant through the Minnesota Pollution Control Agency. maybe the City could qualify for some moneys in cooperation with the Nine Mile Creek Watershed District. RESIDENT'S CONCERN REGARDING MEMORIAL GARDEN AT ST. STEPHENS CHURCH NOTED. Member Richards referred to a letter he had received from Sue and Greg Walling, 5015 Wooddale Lane, expressing their concern regarding the plans of St. Stephens Church for a memorial garden which would allow for the internment of ashes following cremation. Ordinance and that St. Stephens Church had obtained a permit from the Minnehaha Creek Watershed District. matter further and bring back information to the Council. ' He suggested that staff investigate this with the thought-that Planner Larsen said that no permit is required under the Zoning Manager Rosland said that staff would research the RESPONSE TO LETTER FROM DR. BYRON ARMSTRONG NOTED. Manager Rosland referred to a draft letter in response to Dr. Byron Armstrong's letter dated September 14, 1988 which raised several issues affecting his property. He noted that Dr. Armstrong has been given a copy of the staff report on the Erhardt request for rezoning and subdivision and also, that regarding his rights concerning the development by Folke Victorsen of the property adjoining his, that this is a civil matter which must be pursued through private remedies available through the courts. (Member Kelly left the meeting at this point.) RESOLUTION ADOPTED RELATING TO $10.175.000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1988: AWARDING THE SALE. FIXING FORM AND DETAILS. PROVIDING FOR EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR. The City Clerk presented affidavits showing publication of the Notice of Bond Sale for the $10,175,000 General Obligation Tax Increment Bonds, Series 1988 of the City in a legal newspaper having general circulation in the City, and in a daily or weekly periodical published in a Minnesota city of the first class, which circulates throughout the state and furnishes financial news as a part of its service, as required by law and as directed by a resolution of the Council adopted September 19, 1988. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475 and directed to be filed in the office of the CiCy Clerk. The City Manager reported that six sealed bids for the $10,175,000 General Obligation Tax Increment Bonds, Series 1988 had been received prior to the time designated in the Notice of Bond Sale for the opening of bids. Pursuant to the Notice of Bond Sale and the Terms and Conditions of Sale the bids have been opened, read and tabulated, and the terms of each have been determined to be as follows : Bidder Cour>ons Price NIC/NIR FBS CAPITAL MARKETS GROUP 6.40-1995 $10,047,812.50 $12,065,025.00 7.2684% DAIN BOSWORTH TNC 6.50-1996 NORWEST INVESTMENT SERVICES 6.60-1997 PIPER, JAFFRAY & HOPWOOD, INC. 6.70-1998 THE NORTHERN TRUST COMPANY OF 6.80-1999 CHICAGO 6.90-2000 ALLISON-WILLIAMS CO. 7.00-2001 AMERICAN NATIONAL BANK ST. PAUL 7.05-2002 CRONIN & CO., INC. 7.10-2003 ._ I I 10/.3/88 283 MILLER SECURITIES INC. MILLER & SCHROEDER FINANCIAL, SMITH BARNEY, HARRIS UPHAM INC . & CO. INC. Robert W. Baird Craig-Hallum Dougherty, Dawkins, Strand John G. Kinnard & Co. Marquette Bank Minneapolis Moore, Juran & Co. Inc. M.H. Novick & Co., Inc. Park Investment Corporation Summit Investment & Yost SHEARSON LEHI" HUTTON, INC. PRUDENTIAL BACHE CAPITAL DEAN WITTER REYNOLDS INC. DREXEL BURNHAM LAMBERT GOLDMAN, SACHS & CO. FUNDING Rodman & Renshaw, Inc. N Ln u-) I MERRILL LYNCH CAPITAL MARKETS m a 7.15-2004 7.20-2005 7.25-2006/07 7.30-2008/09 6.50-1995 $9,991,313.66 $12,182,278.01 6.60-1996 7.3390% 6.70-1997 6.80-1998 6.90-1999 7.00-2000 7.10-2001 7.20-2002 7.25-2003/07 7.30-2008/09 6.40-1995 $9,985,531.33 $12,183,135.34 6.50-1996 7.3396% 6.60-1997 6.70-1998 6.80-1999 6.90-2000 7.00-2001/02 7.10-2003/04 7.20-2005 7.25-2006 7.30-2007 7.35-2008 7.40-2009 MANUFACTURER'S HANOVER 6.70-1995/97 $9,986,519.75 $12,286,690.67 SECURITIES CORP. 6.80-1998 7.4019% MARINE MIDLAND BANK, N.A. 6.90-1999 Irving Trust Company 7.00-2000 State Street Bank and Trust 7.10-2001 First Charlotte Corporation 7.20-2002/03 7.30-2004/06 7.375-2007/09 GRIFFIN, KUBIK, STEPHENS 6.50-1995 $9,994,855.50 $12,303,509.08 & THOMPSON, INC. 6.60-1996 7.4121% BLUNT ELLIS & LOEWI, INC. 6.70-1997 CLAYTON BROWN AND ASSOCIATES, 6.80-1998 INC . 6.90-1999 7.00-2000 7.10- 2001 7.20-2002 7.30-2003/04 7.375-2005/09 HARRIS TRUST AND SAVINGS BANK MERRILL LYNCH CAPITAL MARKETS JOHN WEEN & CO. INCORPOMTED BEAR, STEARNS & CO., INC. Bank of Oklahoma, N.A. Mercantile Bank N.A. Hutchinson, Shockey, Erley Juran & Moody, Inc. Stern Brothers & Co. Blair (William) & Company Van Kampen Merritt Inc. Illinois Company, Inc. & co. 6.50-1995 $9,985.032.75 $12,413,571.42 6.60-1996 7.478% 6.70-1997 6.80-1998 6.90-1999 7.00-2000 7.10- 2001 7.20-2002 7.30-2003 7.40-2004 7.45-2005/09 Member Richards introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $10,175,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1988; AWARDING !CHE SALE, FIXING THE FORM AND DETAILS, 1013188 284 PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THWEFOR BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the City), as follows : Section 1. Authorization and Sale. 1.01. Authorization. Pursuant to the provisions of Minnesota Statutes, Section 469.178 and Minnesota Statutes, Chapter 475, the City Council of the City has authorized the issuance and sale of its General Obligation Tax Increment Bonds, Series 1988 (the Bonds) in the principal amount of $10,175,000 for the purpose of providing funds for the payment of the public redevelopment costs needed for a redevelopment project (the Project), to be undertaken in accordance with the Southeast Edina Redevelopment Plan (the Plan), previously established by the Housing and Redevelopment Authority in and for the City of Edina (the Authority) and approved by the City. represents interest as provided in Minnesota Statutes, Section 475.56. The Authority has established two tax increment financing districts in the area subject to the Plan, which districts have been designated by Hennepin County as No. 1201 and No. 1203 (the Districts). 1.02 Sale of Bonds. required by Minnesota Statutes, Section 475.60. Sale and the Terms and Conditions of Sale, six sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of FBS Capital Markets Group, of Minneapolis, Minnesota and associates (the Purchaser), to purchase the Bonds at a price of $10,047.812.50, plus accrued interest from the date of the Bonds to the date of delivery thereof, the Bonds to bear interest at the rates set forth in Section 3.01. The proposal is hereby accepted, and the Mayor and the City Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. of the unsuccessful bidders shall be returned forthwith. 1.03. Performance of Requirements. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 1.04. Maturities. Pursuant to Minnesota Statutes, Section 475.54, subdivision 17, this Council hereby estimates that the tax increments from the Districts pledged herein to the payment of the Bonds are sufficient to pay when due the principal of and interest on the Bonds. Section 2. Form of Bonds. 2.01. Bond Form. f om: $190,000 of the principal amount of the Bonds Notice of the sale of the Bonds was duly published as Pursuant to the Notice of Bond The good faith checks The Bonds shall be prepared in substantially the following < & ' .. I : t - - 11 - -_ --. I [Face of the Bonds1 I .. UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA GENERAL OBLIGATION TAX INCREMENT BOND SERIES 1988 No. q- Date of Maturity Oriqinal Issue cus IP October 1, 1988 REGISTERED OWNER PRINCIPAL AMOUNT SEE REVERSE FOR CERTAIN DEFINITIONS DOLLARS THE CITY OF EDINA, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above, on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable on February 1 and August 1 in each year, commencing August 1, 1989, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof at the principal office of the Bond Registrar hereafter designated, the principal hereof, are payable in lawful money of the United States of Amgrica by check or draft 1013188 285 I cu Ln Ln m Q: of Fi st Trust National Association, in t. Paul, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar), or its successor designated under the Resolution described herein. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. This Bond shall not be valid or become obligatory for IN WITNESS WHEREOF, the City of Edina, Hennepin .County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. Dated: (Facsimile Signature) City Manager (Facsimile Signature) Mayor - (Facsimile Seal) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. FIRST TRUST NATIONAL ASSOCIATION, as Bond Registrar BY Authorized Representative [Reverse of the Bonds1 This Bond is one of an issue in the aggregate principal amount of $10,175,000 (the "Bonds"), issued pursuant to a resolution adopted by the City Council on October 3, 1988 (the "Resolution") to pay the capital and administrative costs of a redevelopment project to be undertaken in accordance with the Southeast Edina Redevelopment Plan (the "Redevelopment Plan") of the Housing and Redevelopment Authority of Edina, Minnesota (the "Authority"), which Redevelopment Plan covers certain property located in the City. The Bond is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 469.178 and Chapter 475. increments to be derived from two tax increments financing districts established by the Authority in the area subject to the Redevelopment Plan (the "Districts") which have been pledged to the payment of the Bonds by the Resolution. In addition, for the full and prompt payment of the principal and interest on the Bonds as the same become due, the full faith, credit and taxing power of the City have been and are irrevocably pledged. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or anymultiple thereof, of single maturities. payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1999 through 2009 are each subject to redemption and prepayment, at the option of the City in whole or in part, and if in part, in inverse order of maturities and in $5,000 principal amounts selected by lot, within any maturity, on February 1, 1998 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be published in a daily or weekly periodical, published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his The Bonds are payable primarily from tax Bonds maturing in the years 1995 through 1998 are 10 /3/ 88 .- I attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. 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. person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. 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 precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed in regular and due form as so required; that prior to the issuance hereof, the City has pledged and appropriated tax increments to be derived by the City from the Districts to a sinking fund established for the payment of the Bonds; that, if necessary for the payment of principal and interest on the Bonds, ad valorem taxes are required to be levied upon all taxable property in the City, which levy is not limited as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. Upon such transfer or The City and the Bond Registrar may deem and treat the IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT.....Custodian..... in common (Cust) (Minor) by the entireties TEN ENT -- as tenants under Uniform Gifts to JT TEN -- as joint tenants with right of ' survivorship and Act...................... not as tenants in (State) common Minors Additional abbreviations may also be used. ~______ ASSIGNMENT I FOR VALUE ReCEIVED, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER NOTICE: The signature to this OF ASSIGNEE: / / particular, without alteration , I assignment must correspond with the name as it appears upon the face of the within Bond in every or any change whatsoever. Signature(s1 must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. 2.01. Form of Certificate. shall appear on the reverse side of each Bond, following a copy of the text of the legal opinion Bond Counsel: Ue certify that the above is a full, true and correct copy of the legal opinion rendered by Bond Counsel on the issue of the Bonds of the City of Edina which lncludes the vithin Bond, dated as of the date of delivery of and payment for the Bonds. A certificate in substantially the folloving form (Facsimile signature) (Facsimile signature) City Manager Mayor 10/3/88 287 Lo I: m a Section 3. Bond Terms. Execution and Delivery. 3.01. Maturities. Interest Rates. Denominations. Payment, and Dating of Bonds. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Tax Increment Bonds, Series 1988." issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from date of issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: The Bonds shall be - Year Amount Rate Year Amount - Rate 1995 $250,000 6.40% 2003 $625,000 7.10% 1996 75,000 6.50 2004 700,000 7.15 1997 175,000 6.60 2005 750,000 7.20 1998 250,000 6.70 2006 825,000 7.25 1999 325,000 6.80 2007 1,325,000 7.25 2000 425,000 6.90 2008 1,650,000 7.30 2001 475,000 7.00 2009 1,800,000 7.30 2002 525,000 7.05 The bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described therein. Each Bond shall be dated as of its date of initial authentication. 3.02. Interest Payment Dates. 1 and August 1 in each year, commencing August 1, 1989, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 3.03. Repistration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owners or the owner's attorney duly authorized in writing. (d) promptly cancelled by the Registrar and thereafter disposed of as directed by the city. (e) Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. good faith, to make transfers which it, in its judgement, deems improper or unauthorized. (f) Persons Deemed Owners. whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (8) Taxes, Fees and CharPes. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost Stolen or Destroyed Bonds. mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the Interest on the Bonds shall be payable on February The effect of The Registrar shall keep, at its principal corporate trust office a Upon surrender to the Registrar for transfer of any Bond Cancellation. All Bonds surrendered upon any transfer or exchange shall be Improper or Unauthorized Transfer. When any Bond is presented to the The Registrar shall incur no liability for its refusal, in The City and the Registrar may treat the person in In cas& any Bond shall become 10/3/88 288 ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. Registrar shall be cancelled by it and evidence of such cancellation. shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Bsent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, subdivision 1. 3.04. Amointment of Initial Repristrar. The City hereby appoints First Trust National Association, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with First Trust National Association, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. reasonable and customary charges of the Registrar for the services performed. City reserves the right to remove any Registrar upon thirty (30) days' notice upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. before each principal or interest due date, without further order of this Council, the City Finance Director shall transmit to the Registrar fromthe Bond Fund, moneys sufficient for the payment of all principal and interest then due. 3.05 Redemption. Bonds maturing in the years 1995 through 1998 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 1999 through 2009 shall each be subject to redemption and prepayment, at the option of the City, in whole or in part, and if in part, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on February 1, 1988 and on any interest payment date thereafter at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, the City Manager shall cause notice of the call for redemption to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or faflure'to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. delivered to the registered owner without charge. representing the remaining principal amount outstanding. 3.06. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. different Bonds need not be signed by the same representative. certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. Uhen the Bonds have been so executed and authenticated, they shall be delivered by the City Manager to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale theretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. Section 4. Security Provisions. 4.01. Construction Fund. A Construction Fund is hereby created, as a special fund and designated on the books of the City as the "1988 Tax Exempt Tax Increment Bonds Construction Fund" (the Construction Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. The City hereby appropriates to the Construction Fund all of the proceeds received fromthe sale of the Bonds, less the amount to be deposited in the Bond Fund, pursuant to Section 4.02 hereof. Honeys on hand in the Construction Fund from time to time shall be used solely to pay capital and administrative costs of the Authority and the City in connection with the Project as set forth in the Plan. Any amounts remaining in the Construction Fund upon completion of the Project and payment of all of the costs thereof shall be transferred to the Bond Fund or used to pay capital and administrative costs of the Authority and the City in connection with any other redevelopment project undertaken pursuant to the Plan. All Bonds so surrendered to the I The City agrees to pay the The and On or I 1 u Upon the partial redemption of any Bond, a new Bond or Bonds will be Preparation and Deliveq. I I Certificates of authentication on The executed .- I 10/3/88 289 N Lo Lo m < 4.02. Bond Fund. A Bond Fund is hereby created, as a special fund and designated on the books of the City as the 1988 Tax Exempt Tax Increment Bonds Bond Fund (the "Bond Fund"), to be held and administered by the City Finance Director separate and apart from all other funds of the City. The principal of and interest on the Bonds to be issued at the same time as the Bonds to pay a portion of the costs of the Project shall be payable from the Bond Fund. any additional bonds issued pursuant to Section 4.04 hereof and made payable from the Bond Fund, are outstanding and any principal thereof or interest thereon unpaid, the City Finance Director shall maintain the Bond Fund, as a separate and special account to be used for the payment of the principal of, premium, if any, and interest on the Bonds, and on all other general obligation bonds now or hereafter issued by the City and made payable therefrom, to finance costs incurred by the City in accordance with the Plan in aid of the Project and any other redevelopment project to be undertaken in accordance with the Plan. hereby irrevocably appropriates to the Bond Fund (a) the accrued interest on the Bonds and any amount in excess of $9,985,000 bid for the Bonds and received from the Purchaser upon delivery of the Bonds, (b) the tax increments derived from the District designated by Hennepin County as No. 1203 received by the City from the Authority to pay the Bonds, (c) tax increment derived by the District designated by Hennepin County as No. 1201which are appropriated by the City to the Bond Fund from the Bond Fund established by the City in connection with its General Obligation Bonds, Series 1981 pursuant to Section 4.04 of a resolution adopted by the City Council on October 5, 1981 (the 1981 Bond Resolution), and (d) any other moneys appropriated or pledged by the terms of this Resolution to the Bond Fund. The City expressly reserves the right to use amounts in the Bond Fund (other than the amounts initially deposited therein upon the issuance of the Bonds) to finance or pay directly costs paid or incurred by the City pursuant to the Plan in connection with the Project and any other projects to be undertaken in accordance vith the Plan. 4.03. The full faith and credit and taxing power of the City shall be and are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds. tax increment from the Districts and other funds herein pledged for the payment of the Bonds will be collected in amounts not less than five percent in excess of the amounts needed to meet when due the principal of and interest on the Bonds as required by Minnesota Statutes, Section 475.61. Consequently, no ad valorem taxes are now levied to pay the Bonds or the interest to come due thereon, pursuant to Minnesota Statutes, Section 469.178, subdivision 2. If the money on hand in the Bond Fund should at any time be insufficient to pay principal and interest due on all bonds payable therefrom, such amounts shall be paid from any other fund of the City and such other fund shall be reimbursed therefor when sufficient moneys are available in the Bond Fund. If on October 1 in any year the sum of the balance in the Bond Fund plus the amcnmt of tax increment to be derived from the District is not sufficient to pay when due all principal and interest to become due on all bonds payable therefrom in the following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.03, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance vith the provisions of this Resolution. 4.04. Additional Bonds. payable from the Bond Fund and tax increments to be derived from the Districts as may be required to finance costs of the Project not financed hereby or to finance costs of other projects to be undertaken in accordance with the Redevelopment Plan. 4.05. Additional Bonds Under 1981 Bond Resolution. Since the Bonds will be payable Is part from tax increment derived from the District designated by Hennepin County as No. 1201, the Bonds constitute "additional bonds" payable from the Bond Fund established by the 1981 Bond Resolution and are authorized to be issued by Section 4.07 of the 1981 Bond Resolution. 4.06. The Mayor and City Manager are hereby authorized to execute and deliver on behalf of the City such documents as may be appropriate to evidence the pledge and appropriation of the tax increments from Districts by the Authority to the CXty to pay the Bonds. Section 5. When any Bond has been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of such Bonds shall cease, and such Bonds shall no longer be deemed to be outstanding under this Resolution. The City may discharge its obligations with respect to any Bond thereto which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. also discharge its obligations with respect to any prepayable Bond according to its terms, by depositing with the paying agent on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notfce of such redemption has been duly given as provided herein. any Bonds, subject to the provisions of law now or hereafter authorizing and So long as any of the Bonds or The City Full Faith and Credit Pledged. It is estimated that the . The City reserves the right to issue additional bonds Execution of Documents. Defeasance. The City may The City may also at any time discharge its obligations with respect to 290 regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to pay all principal, interest and redemption premiums to become due thereon to maturity or said redemption date. Section 6. Countv Auditor Registration. Certification of Proceedings. Investment of Honeys. Arbitrape. Designation of Bonds as Qualified Tax Exempt Obliprations and Official Statement. 6.01. directed to file a certified copy of this resolution with the County Auditor of Hennepin County, together with such other information as the County Auditor shall require, and to obtain from said County Auditor a certificate that the Bonds have been entered on his bond register as required by law. 6.02. Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to Dorsey & Whitney, Bond Counsel. certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. The City covenants and agrees with 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 (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations. of Treasury an information reporting statement in the form and at the time prescribed by the Code. 6.04. Arbitrage Certification. The Mayor and the City Manager, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser thereof a certificate in accordance with the provisions of Section 148 of the Code, and Sections 1.103-13, 1.103-14 and 1.104-15 of the Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. 6.05. The City will not use the proceeds of the Bonds in such a manner as to cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and applicable Regulations; to this end, the City shall: maintain records identifying all "gross proceeds" (as defined in Section 148<f)(6)(B) of the Code) attributable to the Bonds, the yield at which such gross proceeds are invested, any arbitrage profit derived therefrom (earnings in excess of the yield on the Bonds) and any earnings derived from the investment of such arbitrage prof it ; make, or cause to be made as of the anniversary date of the issuance of the Bonds, the annual determinations of the amount, if any, of excess arbitrage required to be paid to the United States by the City (the Rebate Amount); pay, or cause to be paid, to the United States at least once every five Bond Years the amount, if any, which is required to be paid to the United States, including the last installment which shall be made no later than 60 days after the day on which the Bonds are paid in full; and until six (6) years after the Bonds have been fully paid. In order to comply with the foregoing requirements, the City Finance Director shall determine the Rebate Amount within 30 days of each anniversary date of the issuance of the Bonds and upon payment in full of the Bonds and shall deposit such Rebate Amount in a separate account and shall separately account for the earnings from the investment of the Rebate Amount. In the event the foregoing requirements conflict with the requirements of the Regulations promulgated under Section 148(f) of the Code, the requirements of such Regulations shall be controlling. 6.06. Official Statement. The Official Statement, dated as of September 21, 1988, relating to the Bonds prepared and distributed by Public Financial Systems, Inc., the financial consultant for the City, is hereby approved, and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and County Auditor Registration. The City Clerk is hereby authorized and Certification of Proceedinvs. The officers of the City and the County Tax Covenant. The City will cause to be filed with the Secretary Compliance With Rebate Reauirement. (i) (ii) (iii) (iv) retain all records of the annual determination of the foregoing amounts c accuracy of the Official Statement. Mayor ATTEST : Jh&% w Lc, City Clerk 1013188 291 I CU Ln Lo I: m a The motion for the adoption of the Member Turner, and upon vote being thereof: foregoing resolution was duly seconded by taken thereon, the following voted in favor Richards, Smith, Turner, Courtney and the following voted against the same: whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, whose signature was attested by the City Clerk. None i RESOLUTION ADOPTED RELATING TO $5.100.000 GENERAL OBLIGATION TAXABLE TAX INCREMENT BONDS, SERIES 1988: AWARDING SALE, FIXING FORM AND DETAILS AND PROVIDING FOR EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR. The City Clerk presented affidavits showing publication of the Notice of Bond Sale of $5,100,000 General Obligation Taxable Increment Bonds, Series 1988 of the City in a legal newspaper having general circulation in the City, and in a daily or weekly periodical published in a Minnesota city of the first class, which circulates throughout the state and furnishes financial news as a part of its service, as required by law and as directed by a resolution of the City Council adopted September 19, 1988. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475 and directed to be filed in the office of the City Clerk. The City Manager reported that four sealed bids for the $5,100,000 General Obligation Taxable Tax Increment Bonds, Series 1988 had been received prior to the time designated in the Notice of Bond Sale for the opening of bids. the Notice of Bond Sale and Terms and Conditions of Sale the bids have been opened, read and tabulated and the terms of each have been determined to be as follows: NI C /NIR Bidder Coupons Price MILLER SECURITIES INC. 9.20-1995 $5,023,500.00 $8,061,587.50 NORTHERN TRUST COMPANY 9.25-1996 9.6981% Pursuant to Smith Barney, Harris 9.30-1997 Upham & Co. Inc. 9.35-1998/99 Dougherty, Dawkins, 9.40-2000/01 Strand & Yost 9.45-2002/03 M.H. Novick 6 Co., Inc. 9.50-2004 9.55-2005 9.60-2006 . 9.65-2007 9.70-2008 9.75-2009 9.10-1995 $5,008,475.75 $8,080,224.25 9.25-1996 9.7205% 9.30-1997/98 9.40-1999/00 9.50-2001/02 9.60-2003/07 9.70-2008/09 I THE FIRST BOSTON CORPORATION GRIFFIN, KUBIK, STEPHENS & BLUNT ELLIS & LOEWI, INC. CLAYTON BROWN AND ASSOCIATES, THOMPSON, INC. INC . MBANK CAPITAL MARKETS 9.20-1995 $5,018,776.00 $8,261,507.33 9.30-1996 9.9386% 9.40-1997 9.50-1998 9.60-1999/00 9.70-2001 9.75-2002 9.80-2003/04 9.90/2005/09 9.40-1995/96 $5,005,000.00 $8,337,516.67 9.50-1997/99 10.0301% 9.60-2000 9.70-2001 9.80-2002/03 9.90-2004/05 10.000-2006/09 Member Turner introduced the following resolution and moved its adoption: RESOLUTION RELBTING TO $5,100,000 GENERBL OBLIGATION TAXABLE TAX INCREMENT BONDS, AND DETAILS AND PROVIDING FOR THE EXECUTION SERIES 1988; AWARDING THE SALE, FIXING THE FORM THEREOF AND THE SECURITY THEREFOR BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the City), as follows : Section 1. Recitals: Authorization and Sale of Bonds. 1.01. Authorization. Pursuant to the provisions of Minnesota Statutes, Section 469.178 and Minnesota Statutes, Chapter 475, the City Council of the City has authorized the issuance and sale of its General Obligation Tax Increment Taxable Bonds, Series 1988 (the Bonds) in the principal amount of $5,100,000 for the 10/3/88 provide security therefor and to issue the Bonds forthwith. 1.04. Maturities. Pursuant to mesota Statutes, Section 475.54, subdivision 17, this Council hereby estimates that the tax increment from the Districts pledgedherein to the payment of the Bonds are sufficient to pay when due the 292 [Face of the Bonds] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA GENERAL OBLIGATION TAXABLE TAX INCREMENT BOND SERIES 1988 No.. $- - Rate Maturity Oriqinal Issue CUSIP Date df October 1, 1988 REGISTERED OWNER: PRINCIPAL AMOUNT: SEE REVERSE FOR CERTAIN DEFINITIONS DOLLARS THE CITY OF EDINA, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above, on the maturity date specified above, with interest thereon from the date of original issue specified above, or the most recent interest payment date to which interest has been paid or duly provided for, at the annual rate specified above. Interest hereon is payable on February 1 and August 1 in each year, commencing August 1, 1989, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon Presentation and surrender hereof at the principal office Of the Bond Registrar here; Tter designated, the principal hereof, are payable in lawful money of the United States of America by check or draft of First Trust National Association, in St. Paul, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar), or its successor designated under the Resolution described herein. the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. Additional provisions of this Bond are contained on u3 I: m a 1013188 293 This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature Of one of its authorized representatives. County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. . IN WITNESS WHEREOF, the City of Edina, Hennepin (Facsimile Signature) City Manager (Facsimile Signature) Mayor (Facsimile Seal) Date of Authentication: CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. FIRST TRUST NATIONAL ASSOCIATION, as Bond Registrar BY Authorized Representative [Reverse of the Bonds] This Bond is one of an issue in the aggregate principal amount .of $5,100,000 (the "Bonds") , issued pursuant to a resolution adopted by the City Council on October 3, 1988 (the "Resolution") to pay the capital and administrative costs of a redevelopment project to be undertaken in accordance with the Southeast Edina Redevelopment Plan (the "Redevelopment Plan") of the Housing and Redevelopment Authority of Edina, Minnesota (the "Authority"), which Redevelopment Plan covers certain property located in the City. This Bond is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto . enabling, including Mi?nesota Statutes, Section 469.178 and Chapter 475. The Bonds are payable primarily from tax increments to be derived by the City from two tax increment financing districts established by the Authority in the area subject to the Redevelopment Plan (the "Districts") which have been pledged to the payment of the Bonds by the Resolution. In addition, for the full and prompt payment of the principal and interest on tHe Bonds as the same become due, the full faith, credit and taxing power of the City have been and are irrevocably pledged. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any multiple thereof, of single maturities. Bonds maturing in the years 1995 through 1998 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1999 and later years are each subject to redemption and prepayment, at the option of the City and in whole or in part, and if in part, in inverse order of maturities and in $5,000 principal amounts selected by lot within a maturity, on February 1, 1998 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be published in a daily or weekly periodical, published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and will be mailed to the Bond Registrar and to the registered'owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. AS provided in the Resolution and subject to certain' limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. 10/3/88 294 The City and the Bond Registrar may deem and treat the . person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. 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 precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have.been performed in regular and due form as so required; that prior to the issuance hereof, the City has pledged and appropriated tax increments to be derived by the City from the Districts to a sinking fund established for the payment of the Bonds; that, if necessary for the payment of the principal and interest on the Bonds, the City is required by law to levy ad valorem taxes upon all taxable property within the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT ..... Custodian..... in common (Cust) (Minor ) TEN ENT -- as tenants by the entireties under Uniform Gifts to JT TEN -- as joint tenants Minors . with right of . , .- -. .. survivorship and Act...................... not as tenants in (State) common (State) Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto t the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER NOTICE.: The signatures to this OF ASSIGNEE: assignment must correspond with the name as it aupears upon the face of the within Bond in every or any change whatsoever. / / particular, without alteration Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. i I / I .I 2.02. shall appear on the reverse side of each Bond, following a copy of the text of the legal opinion of Bond Counsel: rendered by Bond Counsel on the issue of Bonds of the City of Edina which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. Form of Certificate. A certificate in substantially the following form - We certify that the above is a full, true and correct copy of the legal opinion (Facsimile signature) (Facsimile signature)] Ciw Manager Mayor Section 3. Bond Terms. Execution and Delivery. 3.01. Haturities. Interest Rates. Denominations. Pavment. Dating of Bonds. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Taxable Tax Increment Bonds, Series 1988." dated initially as of October 1, 1988, shall be issuable in the denomination of $5,000 or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth belov, and Bonds maturing in such years and amounts shall bear interest from October 1, 1988 until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: The Bonds shall be 1013188 295 Year Amount - Rate 1996 50,000 9.25 2004 350,000 9.50 1998 125,000 9.35 2006 450,000 9.60 1999 150,000 9.35 2007 650,000 9.65 2000 225,000 9.40 2008 825,000 9.70 2001 225,000 9.40 2009 900,000 9.75 2002 250,000 9.45 - Year Amount - Rate - 1995 $125,000 9.20% 2003 $300,000 9.45% 1997 100,000 9.30 2005 375,000 9.55 The bonds shall be issuable only in fully registered form, of single maturities. The interest thereon and, upon surrender of a Bond at the principal office of the Registrar described here, the principal mount thereof, shall be payable by check or draft issued by the Registrar. Each Bond shall be dated by the Registrar as of the date of its authentication. 3.02. Interest Pavment Dates. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 1989, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) ReEister. bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) promptly cancelled by the Registrar and thereafter disposed of as directed by the (e) Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. good faith, to make transfers which it, in its judgement, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any the registered in the bonds register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner.or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charpes. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost. Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond, lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. Registrar shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Apent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1. The Registrar shall keep at its principal corporate trust office a Upon surrender to the Registrar for transfer of any Bond Cancellation. All Bonds surrendered upon any transfer or exchange shall be city. ImuroDer or Unauthorized Transfer. When any Bond is presented to the The Registrar shall incur no liability for its refusal, in All Bonds so surrendered to the 10/3/88 296 3.04 ADpointment of Initial Rezistrar. National Association, of St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with 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, such corporation shall be authorized to act as successor Registrar. customary charges of the Registrar for the services performed. the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall delTver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Manager shall transmit to the Registrar from the bond Fund, as hereinafter defined, money sufficient for the payment of all principal and interest then due on the Bonds. 3.05. Redemtion. Bonds maturing in the years.1995 through 1998 are payable on their respective stated maturity dates without option of prior payment, but Bonds maturing in 1999 and later years are each subject to redemption, at the option of the City and in whole or in part, and if in part, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on February 2, 1998 and on any interest payment date thereafter at a price equal to the principal amount thereof to be redeemed plus accrued interest to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, the City shall cause notice of the call for redemption to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and to be mailed to the Registrar and to the registered owner or each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. 3.06. Preparation and Delivem. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed engraved, or lithographed facsimiles thereof. signature, or a facshile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained h office until delivery. NoMthstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. Uhen the Bonds have been so executed and authenticated, they shall be delivered by the City Manager to the Purchaser upon payment of the purchase price in accordance vith the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. Section 4. Security Provisions. 4.01. Construction Fund. A Construction Fund is hereby created, as a special fund and designated on the books of the City as the "1988 Taxable Tax Increment Bonds Construction Fund" (the Construction Fund), to be held and administered by the City Finance Director-Treasurer separate and apart from all other funds of the City. The City hereby appropriates to the Construction Fund all of the proceeds received from the sale of the Bonds, less the amount to be deposited in the Bond Fund, pursuant to Section 4.02 hereof. from time to time shall be used solely to pay capital and administrative costs of the Authority and the City in connection with the Project as set forth in the Plan. Any amounts remaining in the Construction Fund upon completion or termination of the Project and payment of all of the costs thereof shall be transferred to the Bond Fund or used to pay capital and administrative costs of the Authority and the City in connection with any other development project undertaken pursuant to the Plan. 4.02. Bond Fund. A Bond Fund is hereby created, as a special fund and designated on the books of the City as the 1988 Taxable Tax Increment Bonds Bond Fund (the Bond Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. Bonds to be issued at the same time as the Bonds to pay a portion of the costs of the Project shall be payable from the Bond Fund. any additional bonds issued pursuant to Section 4.04 hereof and made payable from the Bond Fund, are outstanding and any principal thereof or interest thereon unpaid, the City Finance Director shall maintain the Bond Fund, as a separate and The City hereby appoints First Trust The City agrees to pay the reasonable and The City reserves In case any officer whose Certificates of authentication on Honeys on hand in the Construction Fund - The principal of and interest on the So long as any of the Bonds or I 10/3/88 297 Lo I m a special account to be used for the payment of the principal of, premium, if any, and interest on the Bonds, and on all other general obligation bonds now or hereafter issued by the City and made payable therefrom, to finance costs incurred by the City in accordance with the Plan in aid of the Project and any other redevelopment project to be undertaken in accordance with the Plan. hereby irrevocably appropriates to the Bond Fund (a) the accrued interest on the Bonds and any amount in excess of $5,005,000 bid for the Bonds and received from the Purchaser upon delivery of the Bonds, (b) the tax increments derived from the District designated by Hennepin County as No. 1203 received by the City from the Authority to pay the Bonds, (c) tax increment derived by the District designated by Hennepin County as No. 1201 received by the City from the Authority which are appropriated by the City to the Bond Fund from the Bond Fund established by the City in connection with its General Obligation Bonds, Series 1981 pursuant to Section 4.04 of a resolution adopted by the City Council on October 5, 1981 (the 1981 Bond Resolution), and (d) any other moneys appropriated or pledged by the terms of this Resolution to the Bond Fund. to use amounts in the Bond Fund (other than the amounts initially deposited therein upon the issuance of the Bonds) to finance or pay directly costs paid or incurred by the City pursuant to the Plan in connection with the Project and any other projects to be undertaken in accordance with the Plan. 4.03. of the City shall be and are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds. tax increment from the Districts and other funds herein pledged for the payment of the Bonds will be collected in amounts not less than five percent in excess of the amounts needed to meet when due the principal of and interest on the Bonds as required by Minnesota Statutes, Section 475.61. Consequently, no ad valorem taxes are now levied to pay the Bonds or the interest to come due thereon, pursuant to Minnesota Statutes, Section 469.178, subdivision 2. If the money on hand in the Bond Fund should at any time be insufficient to pay principal and interest due on all bonds payable therefrom, such amounts shall be paid from any other fund of the City and such other fund shall be reimbursed therefor when sufficient moneys are available in the Bond Fund. If on October 1 in any year the sum of the balance in the Bond Fund plus the amount of tax increment to be derived from the District is not sufficient to pay when due all principal and interest to become due on all bonds payable therefrom in the following calendar year, or the Bond Fund has incurred a deficiency in the manner provided in this Section 4.03, a direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this Resolution. 4.04. Additional Bonds. payable from the Bond Fund and tax increments to be derived from the Districts as . may be required to finance costs of the Project not financed hereby or to finance costs of other projects to be undertaken in accordance with the Plan. 4.05 Additional Bonds Under 1981 Bond Resolution. Since the Bonds will be payable in part from tax increment derived from the District designated by Hennepin County as No. 1201, the Bonds constitute "additional bonds" payable from the Bond Fund established by the 1981 Bond Resolution and are authorized to be issued by Section 4.07 of the 1981 Bond Resolution. 4.06. The Mayor and City Manager are hereby authorized to execute and deliver on behalf of the City such documents as may be appropriate to evidence the pledge and appropriation of the tax increments from the Districts from the Authority to the City to pay the Bonds. Section 5. Defeasance. When any Bond has been discharged as provided in this Section 5, all pledges, covenants and other rights granted by this resolution to the holders of such Bonds shall cease, and such Bonds shall no longer be deemed to be outstanding under this Resolution. The City may discharge its obligations with respect to any Bond which is due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, the City may nevertheless discharge its obligations with respect thereto by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bond according to its terms, by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full provided that notice of the redemption thereof has been duly given as provided in Section 3.05. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity, or if notice of redemption as herein required has been duly provided for, to such earlier redemption date. Section 6. Countv Auditor Repistration. Certification of ProceedinPs. Approval of Official Statement. Authorization of Certain Pavments and Combination of Maturities. The City The City expressly reserves the right Full Faith and Credit Pledged. The full faith and credit and taxing power It is estimated that the The City reserves the right to issue additional bonds Execution of Documents. 10/3/88 298 6.01. directed to file a certified copy of this Resolution with the County Auditor of Hennepin County, together with such other information as the County Auditor shall require, and to obtain from said County Auditor a certificate that the Bonds have been entered on his bond register as required by law. 6.02. Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to shov the facts relating to the legality and marketability of the Bonds as the same appear fromthe books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. Official Statement. The Official Statement relating to the Bonds, dated September 21, 1988, prepared and distributed on behalf of the-City by Public Financial Systems Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Countv Auditor Registration. The City Clerk is hereby authorized and Certification of Proceedings. The officers of the City and the County ATTEST: The motion fo; the adoption of the foregoing resolution was duly seconded by Member Richards, and upon vote being taEen thereof: and the following voted against the same: whereupon the resolution was declared duly the Mayor, whose signature was attested by Richards, Smith, Turner, Courtney :hereon, the followikg voted in favor None passed and adopted, and was signed by the City Clerk. RESOLUTION ADOPTED RELATING TO $3.160.000 GENERAL OBLIGATION UTILITY REVENUE BONDS. SERIES 1988: AWARDING SALE. FIXING FORM AND DETAILS, AND PROVIDING FOR EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR. The City Clerk presented affidavits showing publication of the Notice of Bond Sale of $3,160,000 General Obligation Utility Revenue Bonds, Series 1988, of the City in a legal newspaper having general circulation in the City, and in a daily or weekly periodical published in a Minnesota city of the first class, which circulates throughout the state and furnishes financial news as a part of its service, as required by law and as directed by a resolution of the City Council adopted September 19, 1988. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475 and directed to be filed in the office of the City Clerk. The City Manager reported that six sealed bids for the $3,160,000 General Obligation Utility Revenue Bonds, Series 1988 has been received prior to the term designated in the Notice of Bond Sale for the opening of bids. Pursuant to the Notice of Bond Sale and Terms and Conditions of Sale the bids have been opened, read and tabulated, and the terms of each have been determined to be as follows: Bidder Coupons Price NIC/NIR FBS CAPITAL &TS GROUP 5.90-1990 $3,128,400.00 $1,365,720.00 DAIN BOSWORTH INC. 6.00-1991 6.6870% NORWEST 1NVES"T SERVICES 6.10-1992 PIPER, JAFFRAY & HOPWOOD, INC. 6.20-1993 THE NORTHERN TRUST COMPANY OF 6.30-1994 CHICAGO 6.40-1995 6.50-1996 ALLISON-WILLIAMS CO. 6.60-1997 AMERICAN NATIONAL BANK ST. PAUL 6.70-1998 CRONIN 6 CO., INC. 6.80-1999 - MILLER SECURITIES INC. MILLER & SCHROEDER FINANCIAL, SMITH BARNEY, HARRIS UPHAM INC . & CO. INC. Robert W. Baird Craig-Hallum Dougherty, Dawkins, Strand John G. Kinnard & Co. Marquette Bank Minneapolis Moore, Juran & Co. Inc. M.H. Novick & Co., Inc. Park Investment Corporation Summit Investment & Yost : I i 1 1 i i 1013188 299 MERRILL LYNCH CAPITAL MARKETS GRIFFIN, KUBIK, STEPHENS BLUNT ELLIS & LOEWI, INC. CLAYTON BROWN AND ASSOCIATES, & THOMPSON, INC. INC . HARRIS TRUST AND SAVINGS BANK MERRILL LYNCH CAPITAL MARKETS JOHN "VEEN & CO. INCORPORATED BEAR, STEARNS & CO. , INC. Bank of Oklahoma, N.A. Mercantile Bank N.A. Hutchinson, Shockey, Erley Juran & Moody, Inc. Stern Brothers & Co. Blair (William) & Company Van Kampen Merritt Inc. Illinois Company, Inc. & co. MANUFACTURER' S HANOVER SECURITIES CORP. MARINE MIDLAND BANK, N.A. Irving Trust Company State Street Bank and Trust First Charlotte Corporation SHEARSON LEHMAN HUTTON, INC. PRUDENTIAL BACHE CAPITAL DEAN WITTER REYNOLDS INC. DREXEL BURNHAM LAMBERT GOLDMAN, SACHS & CO. FUNDING Rodman & Renshaw, Inc. 5. 5-199 6.00-199 $3,122,576. d 6.10-1992 6.20-1993 6.30-1994 6 -40-1995 6.50-1996 6.60-1997 6.70-1998 6.75-1999 5 6.00-1990 $3,133,140.00 6.10-1991 6.20-1992 6.30-1993 6.40-1994 6.50-1995 6.60-1996 6.70-1997 6.80-1998 6.90-1999 5.90-1990 $3,129,032.00 6 .OO-1991 6.10-1992 6.25-1993 6.50-1995 6.60-1996 6.70-1997 6.80-1998 6.90-1999 6.40-1994 5.80-1990 $3,128,115.00 5.90-1991 6.10-1992 6.25-1993 6.40-1994 6.50-1995 6.60-1996 6.70-1998 6.80-1999 5.90-1990 $3,125,240.00 6.00-1991 6.15-1992 6.15 - 1993 6.40-1994 6.50-1995 6.60-1996 6.70-1997 6.80-1998 6.90-1999 $1,369,234.78 6.7042% $1,381,403.33 6.7638% $1,383,134.67 6.7723% $1,383,241.67 6.7728% $1,387,385.00 6.7931% Member Turner introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $3,160,000 GENERAL AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING EXECUTION AND DELIVERY THEREOF' AND SECURITY TEEREFOR OBLIGATION WATER REVENUE BONDS, SERIES 1988; THE FORM AND DETAIIS, BND PROVIDING FOR THE BE IT RESOLVED by the City Council (the Council) of the City of Edina, Hennepin County, Minnesota (the City) as follows: Section 1. Authorization and Sale. 1.01. Cost of Proiect. The City owns and operates a municipal water, sanitary sewer and storm sewer utility (the Utility). construction of improvements to the Utility, (the Improvements). The present estimated total cost of the Improvements are as follows: This Council has heretofore ordered Water System Improvements $1,000,000 Storm Sewer Improvements 2,000,000 Capitalized Interest 83,500 Bond Issuance Costs 17,000 Bond Discount 59,500 Total $3,160,000 10/3/88 300 1.02. Authorization. resolution adopted on September 19, 1988 determined that it is necessary and expedient for the City to issue and sell its General Obligation Utility Revenue Bonds, Series 1988 (the Bonds) in the principal amount of $3,160,000 to defray a portion of the City's share of the expense to be incurred and estimated to be incurred by the City in constructing improvements to the City's water and storm sewer system, including every item of costs of the kinds authorized in Minnesota Statutes, Section 475.65. $59,500 of such amount representing interest as provided in Minnesota Statutes, Section 475.56. 1.03. required by Minnesota Statutes, Section 475.60. Sale and the Terms and Conditions of Sale, six sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of FBS Capital Markets Group, of Minneapolis, Minnesota and associates (the Purchaser), to purchase the Bonds at a price of $3,128,400, plus accrued interest fromthe date of the Bonds to the date of delivery thereof, the Bonds to bear interest at the rates set forth in Section 3.01. Manager are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.04. Issuance of Bonds. The City is authorized by Minnesota Statutes, Section 444.075 to issue and sell the Bonds to pay the costs of the Improvements, and to pledge to the payment of the Bonds net revenues to be derived from charges for the . service, use and availability of the Utility. outstanding which constitute a lien upon any part of the revenue of the Utility. 811 acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefore and to issue the Bonds forthwith. Section 2. Form of Bonds. To pay the costs of the Improvements this Council by a Sale of Bonds. Notice of the sale of the Bonds was duly published as Pursuant to the Notice of Bond The proposal is hereby accepted, and the Mayor and the City The City has no obligations The Bonds shall be prepared in substantially the following form: [Face of the Bonds] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA GENERAL OBLIGATION UTILITY REVENUE BOND, SERIES 1988 Date of Octiber 1, 1988 - Rate Maturity Original Issue CUSIP REGISTERED OWNER : PRINCIPAL AMOUNT: SEE REVERSE FOR CERTAIN DEFINITIONS DOLLARS THE CITY OF EDINA, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner above named, the Frincipal amount: indicated above, on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable on February 1 and August 1 in each year, commencing August 1, 1989, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft of First Trust National Association in St. Paul, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar), or its successor designated under the Resolution described herein. the reverse hereof and such provisions shall for all purposes have the-same effect as though fully set forth hereon. Additional provisions of this Bond are contained on This Bond shall not be valid or become obligatory for any purpose or he entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. 1013188 301 IN WITNESS WHEREOF, the City of Edina, Hennepin County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. Date of Authentication: (Facsimile Signature) City Manager (Facsimile Signature) Mayor (Facsimile Seal) CERTIFICATE OF AUTHENTICATION This is one of the Bonds deliveied pursuant to the Resolution mentioned within. FRIST TRUST NATIONAL ASSOCIATION, as Bond Registrar BY Authorized Representative , [Reverse of the Bonds] This Bond is one of an issue in the aggregate principal amount of $3,160,000 (the Bonds), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date issued pursuant to a resolution adopted by the City Council on October 3, 1988 (the Resolution) to finance construction of improvements to the water and storm sewer system in the City, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Section 444.075 and Chapter 475. The Bonds are issueable only as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing in the years 1990 through 1994 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1995 through 1999 are each subject to redemption and prepayment, at the option of the City and in whole or in part, and if in part, in inverse order of maturities and in $5,000 principal amounts selected by lot within any maturity, on February 1, 1994 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be published in a daily or weekly periodical, published in a Minnesota city of the first class or its metropolitan.area, which circulates throughout the state and furnishes financial news as a part of its service, and will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity Of proceedings for the redemption of any Bond. Upon the partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining. principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the’principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney: and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. 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 precedent to and in the issuance of this Bond, have been done, do exist, have happened and have been performed in regular and due form, time and manner as so required; that in and by the Resolution, the City has covenanted and agreed with the holders of the Bonds that it will impose and collect charges for the service, use and 10/3/88 302 availability of its water, sanitary sewer and storm sewer utility at the times and in amounts required to produce Bet revenues adequate, to pay all principal of and interest on the Bonds and on all other bonds payable from net revenues of the water, sanitary sewer and storm sewer utility as such principal and interest respectively become due; that, if needed to pay such principal and interest, ad valorem taxes will be levied upon all taxable property in the City,,without limitation as to rate or amount; and that this Bond, together with all other indebtedness of the City outstanding on the date hereof, and on the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT.....Custodian..... in common (Cust) (Mino r ) TEN ENT '-- as tenants by the entireties under Uniform Gifts to Minors JT TEN -- as joint tenants with right of not as tenants in common survivorship and Act....... ..........--.-- (State) - Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby Sells, assigns ana transfers unto , the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER NOTICE.: The signature to this I OF ASSIGNEE: assignment must correspond with the name as it appears upon the face of the within Bond in every or any change whatsoever. / / particular, without alteration Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. Section 3. Bond Terms. Execution and Deliverv. 3.01. Maturities. Interest Rates. Denominations. Payment. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Utility Revenue Bonds, Series 1988". the denomination of $5,000 each or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from date of issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as f ollovs : The Bonds shall be issueable in Year Amount Rate 1990 $170 , 000 5.90% 19 95 $320 * 000 19 91 250 , 000 6.00 1996 350 , 000 6.50 275,000 6.10 1997 375 , 000 6.60 1992 1993 300,000 6.20 1998 395 , 000 6.70 1994 300,000 6.30 1999 425 , 000 6.80 - Year Amount - Rate - 6.40% 1 I The Bonds shall be issueable only in fully registered form. and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. dated by the Registrar as of the date of its authentication. 3.02. Dates: Interest Pawent Dates. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 1989, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 3.03. Reeristration. registrar, transfer agent and paying agent (the Registrar). registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: The interest thereon Each Bond shall be The City shall appoint, and shall maintain, a bond The effect of 303 II) I m a (a) Register. bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. good faith, to make transfers which it, in its judgement, deems improper or unauthorized. (f) Persons Deemed Owners. whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost. Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges for the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. Registrar shall be cancelled given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, subdivision 1. 3.04. Appointment of Initial Registrar. The City hereby appoints First Trust National Association, as the initial Registrar. are authorized to execute and deliver, on behalf of the City, a contract with First Trust National Association, as Registrar. the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business such corporation shall be authorized to act as successor Registrar. and customary charges of the Registrar for the services performed. reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. principal or interest due date, without further order of this Council, the City Manager shall transmit to the Registrar, moneys sufficient for the payment of all principal and interest then due pursuant to Section 4.01 hereof. 3.05. Redemption. subject to redemption prior to maturity, but Bonds maturing in the years 1995 through 1999 shall each be subject to redemption and prepayment, at the option of the City, in whole or in part, and if in part, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on February 1, 1994 and on any interest payment date thereafter at a price equal The Registrar shall keep at its principal corporate trust office a Upon surrender for transfer of any Bond duly endorsed by . Cancellation. All Bonds surrendered upon any transfer or exchange shall be Improper or Unauthorized Transfer. When any Bond is presented to the The Registrar shall incur no liability for its refusal, in The City and the Registrar may treat the person in . All Bonds so surrendered to the by it and evidence of such cancellation shall be The Mayor and the City Manager Upon merger or consolidation of The City agrees to pay the reasonable The City On or before each Bonds maturing in the years 1990 through 1994 shall not be 1013188 304 to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, the City Manager shall cause notice of the call for redemption to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnished financial news as a part of its service, and to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Upon a partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. 3.06. Preparation and Deliverv. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Hayor and the Ciw Manager, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. different Bonds need not be signed by the same representative. certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have I been so executed and authenticated, they shall be delivered by the City Manager to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase pric?. Section 4. Security Provisions. 4.01. 1988 Utilitv Imp rovement Construction Fund. special fund to be designated as the "1988 Utility Improvement Construction Fund" (the Construction Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. Construction Fund the proceeds of the sale of the Bonds, less the amount required by Section 4.02 hereof to be deposited in the Bond Fund therein created. Construction Fund shall be used solely to defray expenses of the construction of the Improvements. Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund shall be credited and paid to the Bond Fund. 4.02. 1988 Utilitv Imu rovement Bond Fund. outstanding and any principal thereof or interest thereon unpaid, the City Finance Director shall maintain a separate and special 1988 Utility Improvement Bond Fund (the Bond Fund) to be used for no purpose other than the payment of the principal of and interest on the Bonds and any additional obligations of the City payable therefrom pursuant to Section 4.03 hereof. ever insufficient to pay all principal and interest then due on bonds payable therefrom, the City Finance Director shall nevertheless provide sufficient money from any other funds of the City which are available for that purpose, and such other funds shall be reimbursed from subsequent receipts of net revenues of the System appropriated to the Bond Fund and, if necessary, from the proceeds of the taxes levied for the Bond Fund. The City hereby appropriates to the Bond Fund (a) $83,000 of the proceeds of the Bonds representing capitalized interest and (b) the accrued interest on the Bonds and any amount in excess of $3,100,500 bid for the Bonds and received fromthe Purchaser upon delivery of the Bonds. Finance Director shall deposit in the Bond Fund the proceeds of all taxes levied and all other money which may at any time be received for or appropriated to the payment of such bonds and interest, including the net revenues of the Utility herein pledged and appropriated to the Bond Fund, all collections of any ad valorem taxes levied for the payment of the Bonds, and all other moneys received for or appropriated to the payment of the Bonds and interest thereon. 4.03. Inm osition of Charges: Additional Bonds. The City hereby covenants and agrees with the holders from time to time of the Bonds that so long as any of the Bonds are outstanding, the City vi11 impose and collect reasonable charges for the service, use and availability of the Utility to the City and its inhabitants according to schedules calculated to produce net revenues which, will be sufficient to pay all principal and interest when due on the Bonds, and said net revenues, to the extent necessary, are hereby irrevocably pledged and appropriated to the payment of the Bonds and interest thereon; provided that nothing herein shall preclude the City from hereafter making further pledges and appropriations of net revenues of the Utility for the payment of additional obligations of the City hereafter authorized if the City Council determines before the authorfzation of such additional obligations that the estlmated net revenues of the Utility will be sufficient, together with any other sources pledged to or projected to be used, for the payment of the principal of and interest on the Bonds and such additional I CertEicates of authentication on The executed I j There is hereby created a The City appropriates to the I The Upon completion and payment of all costs of the construction of So long as any of the Bonds are If the balance in the Bond Fund is The City l I 305 obligations. made superior or subordinate to or on a parity with the pledge and appropriation herein made, as to the application of net revenues received from time to time. 4.04. Full Faith and Credit Pledped: Tax Levy. The full faith and credit of the City shall be and are hereby irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds and any other obligations payable from the Bond Fund, as such principal and interest comes due, and the City covenants and agrees that it will make good any deficiency in the Bond Fund from the general fund of the City. On or before October 1 of each year, beginning in the year 1989, the City Finance Director will calculate the total amount of cash on hand in the Bond Fund and the available net revenues of the Utility on hand and estimated to be received on or before the first day of January next following and the proceeds of the ad valorem tax levy to be received on or before the first day of January next following, and shall determine the sufficiency of.such total amount for the payment of principal of and interest on the Bonds coming due on or prior such first day of January. If such total amount is determined to be insufficient for such payment, this Council shall forthwith appropriate to the Bond Fund sufficient available moneys of the City to make good the insufficiency, and if available moneys of the City are not on hand in amounts sufficient for this purpose, this Council shall forthwith levy and certify to the Hennepin County Auditor for collection in the following year a tax at least five percent (5%) in excess of the amounts adequate to make good the insufficiency. The City Finance Director shall also at the same time estimate the amount which will be on hand in the Bond Fund after payment of principal and interest payable on the Bonds on or prior the first day of January next following, and the amount of net revenues of the Utility and the proceeds of the ad valorem tax levy to be received in the period of 12 months beginning on the first day of January next following and shall determine the sufficiency of such estimated amounts for the payment of the principal of and interest on the Bonds coming due during and immediately at the end of such 12-month period. such payment, this Council shall forthwith cause to be levied and certified to the Hennepin County Auditor for collection in the following year a tax at least five percent (5%) in excess of amounts adequate to make good the insufficiency. Section 5. When all of the Bonds have been discharged as provided in this Section 5, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, 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. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. County Auditor Repristration. Certification of Proceedinvs. Investment of Moneys. Arbitrage and Official Statement. 6.01. directed to file a certified copy of this resolution with the County Auditor of Hennepin County, together with such other information as the County Auditor shall require, and to obtain from said County Auditor a certificate that the Bonds have been entered on his bond register as required by law. 6.02. Auditor of Hemepin County are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to Dorsey h Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. The City covenants and agrees with 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 (the Regulations), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations. 6.04. Arbitrage Certification. the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser Such further pledges and appropriations of said net revenues may be If such amount is determined to be insufficient for Defeasance. County Auditor Registration. The City Clerk is hereby authorized and Certification of Proceedings. The officers of the City and the County Covenants. The Mayor and City Manager, being the officers of 10/3/88 306 thereof a certificate in accordance with the provisions of Section 148 of the Code, and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds vithin the meaning of the Code and Regulations. 6.05. the Bonds in such a manner as to cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and applicable Treasury Regulations; to this end, the City shall: (i) 148(f)(6)(B) of the Code) attributable to the Bonds, the yield at which such gross proceeds are invested, any arbitrage profit derived therefrom (earnings in excess of the yield on the Bonds) and any earnings derived from the investment of such arbitrage profit; (ii) make, or cause to be made as of the anniversary date of the issuance of the Bonds, the annual determinations of the amount, if any, of excess arbitrage required to be paid to the United States by the City (the "Rebate Amount"); (iii) Bond Years the amount, if any, which is required to be paid to the United States, including the last installment which shall be made no later than 60 days after the day on which the Bonds are paid in full; and (iv) retain all records of the annual determination of the foregoing amounts until six (6) years after the Bonds have been fully paid. In order to comply with the foregoing requirements, the City Finance Director shall determine the Rebate Amount within 30 days of each anniversary date of the issuance of the Bonds and upon payment in full of the Bonds, and shall deposit such Rebate dmmt in a separate account for the earnings from the investment of the Rebate Amount and such earnings shall become part of the Rebate Amount. the event the foregoing requirements conflict with the requirements of the Regulations promulgated under Section 148(f) of the Code, the requirements of such Regulations shall be controlling. 6.06 Official Statement. The Official Statement relating to the Bonds, dated September 21, 1988, prepared and distributed on behalf of the City by Public Financial Systems, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Adopted by the City Council on October 3, 1988. Compliance with Rebate Resuirement. The City will not use the proceeds of maintain records identifying all "gross proceeds" (as defined in Section I pay, or cause to be paid, to the United States at least once every five . In I c*mML ATTEST: Mayor <,- City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Richards, 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, and was signed by the Mayor, whose signature was attested by the City Clerk. Richards, Smith, Turner, Courtney None RESOLUTION ADOPTED RELATING TO $2.470.000 GENERAL OBLIGATION RECREATIONAL FACILITY BONDS. SERIES 1988: AWARDING SALE. FIXING FORM AND DETAILS. AND PROVIDING FOR EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR. affidavits showing publication of the Notice of Bond Sale for the $2,470,000 General Obligation Recreational Facility Bonds, Series 1988 of the City in a legal newspaper having general circulation in the City, and in a'daily or weekly periodical published in a Minnesota city of the first class, which circulates throughout the state and furnishes financial news as a part of its service, as required by law and as directed by a resolution of the Council adopted September 19, 1988. The affidavits were examined, found to comply with the provisions of Minnesota Statutes, Chapter 475 and directed to be filed in the office of the City Clerk. Obligation Recreational Facility Bonds, Series 1988 had been received prior to the time designated in the Notice of Bond Sale for the opening of bids. Notice of Bond Sale and the Terms and Conditions of Sale the bids have been opened, read and tabulated, and the terms of each have been determined to be as follows : NI C /NIR Bidder CouDons Price FBS CAPITAL MARKETS GROUP 6.10-1992 $2,439,125.00 $2,854,143.75 DAIN BOSWORTH INC 6.20-1993 7.2656% The City Clerk presented .. I The City Manager reported that six sealed bids for the $2,470,000 General Pursuant to NORWEST INVESTMENT SERVICES 6.30-1994 PIPER JAFFRAY & HOPWOOD INC 6.40-1995 THE NORTHERN TRUST COMPANY 6.50-1996 OF CHICAGO 6.60-1997 6.70-1998 ALLISON-WILLIAMS GO. 6.80- 1999 AMERICAN NAT.BK. ST. PAUL 6.90-2000 10/3/88 CRONIN & CO., INC. MILLER SECURITIES INC. MILLER & SCHROEDER FINANCIAL, INC . SMITH BARNEY, HARRIS UPHAM & CO. INC. Robert W. Baird Craig-Hallum Dougherty, Dawkins, John G. Kinnard & Co. Marquette Bank Minneapolis Moore, Juran & Co. Inc. M.H. Novick & Co., Inc. Park Investment Corporation Summit Investment Strand & Yost I MERRILL LYNCH CAPITAL MARKETS cu Ln Lo zc m U MANUFACTURER'S MOVER SECURITIES CORP. MARINE MIDLAND BANK, N.A. Irving Trust Company State Street Bank and Trust First Charlotte Corporation SHEARSON LEHMAN HUTTON, INC. PRUDENTIAL BACHE CAPITAL DEAN WITTER REYNOLDS INC. DREXEL BURNHAM LAMBERT GOLDMAN, SACHS & CO. FUNDING Rodman & Renshaw, Inc. GRIFFIN, KUBIK, STEPHENS BLUNT ELLIS & LOEWI, INC. & THOMPSON, INC. CLAYTON BROWN AND ASSOCIATES, INC . 7.00-2001 7 -05-2002 7.10-2003 7.15 - 2004 7.20-2005 7.25-2006/07 7.30-2008/09 6.10-1992 $2,424,020.95 6.20-1993 6.30-1994 6.40 - 1995 6.50-1995 6.60-1997 6.70-1998 6.80-1999 6.90-2000 7.00-2001 7.10-2002 7.20-2003 8.25-2004 7.30-2005/09 6.10-1992 $2,428,021.00 6.25-1993 6.40-1994 6.50-1995' 6.60-1996 6.70-1997 6.80-1998 6.90-1999 7.00-2000 7.10-2001 7.20-2002 7.25-2003 7.30-2004/05 7.375-2006/09 6.15-1992 $2,434,185.00 6.25-1993 6.40-1994 6.50-1995 6.60-1996 6.70-1997 6.80-1998 6.90-1999 7.00-2000 7.10- 2001 7.20 - 2002 7.25 - 2003 7.30-2004 7.35-2005 7.40-2006/08 7.45 - 2009 6.10-1992 $1,424,218.45 6.30-1993 6.40-1994 6.50-1995 6.60-1996 6.70-1996 6.80-1998 6.90-1999 7.00-2000 7.10-2001 7.20-2002 7.30-2003/04 7.40-2005/09 $2,885,754.68 7.3460% $1,908,071.19 7.4029% $2,912,898.13 7.4152% $2,923,124.05 7.4412% 10/3/88 308 HARRIS TRUST AND SAVINGS BANK MERRILL LYNCH CAPITAL MARKETS JOHN NUVEEN & CO. INCORPORATED BEAR, STEARNS & CO., INC. Bank of Oklahoma, N.A. Mercantile Bank N.A. Hutchinson, Shockey, Erley Juran &Moody, Inc. Stern Brothers & Co. Blair (William) & Company Van Kampen Merritt Inc. Illinois Company, Inc. & co. 6.10-1992 $2,428,837.75 $1,946,346.63 6.25-1993 7.5004% 6.40-1994 6.50-1995 6.60-1996 6.70-1997 6.80-1998 6.90-1999 7.00-2000 7.10-2001 7.20-2002 7.30-2004 7.40-2004 7.45 -2005 7.50-2006/09 I; Member Richards introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $2,470,000 GENERA& OBLIGATION RECREATIONAL FACILITP BONDS, SERIES 1988; FIXING TEE DELIVERY THEREOF AND THE SECURITY TElEREFOR ! PO= AND DETBILS, PROVIDING FOR !THE EXECUTION AND BE IT RESOLVED by the City Council of the City of Edina, Minnesota, as follows: Section 1. Recitals. 1.01. Authorization. This Council by its resolution adopted September 19, 1988, which resolution is entitled "Resolution Relating to $2,470,000 General Obligation Recreational Facility Bonds, Series 1988 Authorizing the Issuance and Providing for the Public Sale Thereof," pursuant to Minnesota Laws 1961, Chapter 655 (the Act), authorized the issuance and sale of $2,470,000 General Obligation of October 1, 1988, in order to finance the acquisition and betterment of certain improvements (the Improvements) to its municipal recreation facilities. $46,000 of the principal amount of the Bonds represents interest as provided in Minnesota Statutes, Section 475.56. The Improvements consist of (a) an improvement to the Municipal Golf Center of the City (the Municipal Golf Center) described in Section 4 of the Resolution adopted by this Council on November 4, 1963, entitled "Resolution Establishing the Form and Terms and Covenants Securing the Payment of $825,000 Golf Course Bonds of 1963" (Resolution of November 4, 1963); and (b) improvements to the Recreation Center (the Municipal Recreation Center) of the City described in Section 4 of the resolution adopted by this Council on August 2, 1965, entitled "Resolution Authorizing the Issuance of $450,000 Recreation Center Bonds, Describing Their Form and Details and Covenants with Respect Thereto" (Resolution of August 2, 1965). The Bonds are to be payable primarily out of the net revenues to be derived from the operation of the Municipal Golf Center, the Recreation Center and the Municipal Liquor Dispensary established by Ordinance No. 131 (the Municipal Liquor Dispensary). 1.02. derived fromthe Municipal Golf Center and the Municipal Liquor Dispensary the General Obligation Golf Course Bonds, Series 1985 of the City, dated as of September 1, 1985 (the Golf Course Bonds). The Golf Course Bonds are hereinafter referred to as the Outstanding Bonds. The payment of principal of and interest on the Bonds shall be subordinate to the first lien and charge thereon, including a reserve, of the Golf Course Bonds on the net revenues of the Mimicipal Golf Center and the net revenues of the Himicipal Liquor Dispensary. derived from the operation of the Municipal Golf Center, the Municipal Recreation Center and the Municipal Liquor Dispensary, in excess of the costs of operation andmaintenance thereof in the fiscal year which ended December 31, 1987, were in excess of $410,000, which amount exceeds the maximum amount of principal and interest to become due in any future fiscal year on all of the Outstanding Bonds and on the Bonds herein authorized. fromthe net revenues derived from the operation of the Municipal Golf Center and/or Bmicipal Liquor Dispensary is appropriated and credited to a separate subaccount in the Bond Account, created pursuant to Section 4.02 hereof, which amount exceeds the average annual amount of principal and interest to become due on the Bonds. the covenants and agreements hereinafter set forth. the Bonds may be issued by resolution of this Council. 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 the issuance of and sale of the Bonds to provide moneys to pay for the Improvements have been done, do exist, have happened and have been performed in due form, time and manner as so required. 1.04. Minnesota Statutes, Section 475.60. Pursuant to the Notice of Bond Sale and the Terms and Conditions of Sale, six sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. favorable proposal received is that of FBS Capital Markets Group of Minneapolis, mesota and associates (the Purchaser), to purchase the Bonds at a price of . Recreational Facility Bonds, Series 1988 of the City (the Bonds), to be dated as I Outstanding Bonds. There is currently payable out of net revenues to be f 1.03. Findinps. It is hereby found, determined and declared that net revenues I I By Section 4.02 hereof the sum of $252,061 - I II The City is therefore authorized by the Act to secure the Bonds by In accordance with the Act All acts, conditions and Sale. Notice of sale of the Bonds was duly published as required by The bids have been The most 10/3/88 309 (u Ln Lo I m a $2,439,125 plus accrued interest from the date of the Bonds to the date of delivery thereof, the Bonds to bear interest at the rates set forth in Section 3.01. authorized and directed to execute a contract on the part of the City for the sale of the Bonds with the Purchaser. bidders shall be returned forthwith. 1.05. Issuance of Bonds. 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 prior to the issuance of the Bonds have been done, do exist, have happened, and have been performed, wherefore it is now necessary for this Council to establish the form and terms of the Bonds, to provide for the security thereof, and to issue the Bonds forthwith. 1.06. Maturities. Pursuant to Minnesota Statutes, Section 475.54, subdivision 17, this Council estimates that the net revenues of the Municipal Golf Center, Wicipal Liquor Dispensary and Municipal Recreation Center pledged herein to the payment of the Bonds are sufficient to pay when due the principal of and interest on the Bonds. Section 1. Form of Bonds. 2.01. Form of Bonds. form: The proposal is hereby accepted, and the Mayor and City Manager are hereby The good faith checks of the unsuccessful The Bonds shall be prepared in substantially the folloving [Face of Bonds] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN REGISTERED OWNER : PRINCIPAL AMOUNT : CITY OF EDINA GENERAL OBLIGATION RECREATIONAL FACILITY BOND, SERIES 1988 Date of Maturity Original Issue cus I P Octobek 1, 1988 SEE REVERSE FOR CERTAIN DEFINITIONS DOLLARS THE CITY OF EDINA, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, €or value received, hereby promises to pay to the registered owner above named, the principal amount indicated above, on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable on January 1 and July 1 in each year, commencing July 1, 1989, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions ~ referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof, are payable in lawful money of the United States of America by check or draft of First Trust National Association in St. Paul, Minnesota, as Bond Registrar, Transfer Agent and Paying Agent (the Bond Registrar), or its successor designated under the Resolution described herein. the reverse hereof and such provisions shall for all purposes have the same effect as though fully set forth hereon. Additional provisions of this Bond are contained on This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. Dated: IN WITNESS WHEREOF, the City of Edina, Hennepin (Facsimile Signature) City Manager (Facsimile Signature) Mayor (Facsimile Seal) . 3io 10/3/88 CERTIFICATE OF AUTHENTICATION This is one Resolution mentioned of the Bonds delivered pursuant to the within. FIRST TRUST NATIONAL ASSOCIATION, as Bond Registrar BY Authorized Representative [Reverse of the Bonds] This Bond is one of an issue in the aggregate principal amount of $2,470,000 (the Bonds), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date issued pursuant to a resolution adopted on October 3, 1988 (the Resolution) for the purpose of financing the acquisition and betterment of recreational facilities of the City, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Laws 1961, Chapter 655, and Minnesota Statutes, Chapter 475. This Bond is payable primarily from the net revenues of the municipal golf center, municipal liquor dispensary and municipal recreation center pledged to the payment of the Bonds by the Resolution, but the City Council is required by law to pay maturing principal hereof- and interest thereon out of any funds in the treasury if such net revenues are insufficient therefor. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing in the years 1992 through 1998 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1999 through 2009 are each subject to redemption and prepayment, at the option of the City and in whole or in part and if in part, in inverse order pf maturities and in $5,000 principal amounts selected by lot, within any maturity, on January 1, 1998 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be published in a daily or weekly periodical, published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof * together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for,tbe purpose of receiving payment and for all other purposes, and' neither the City nor the Bond Registrar shall be affected by any notice to the contrary. 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 precedent to and in the issuance of this Bond, have been done, do exist, have happened and have been performed in regular and due form, time and manner as so required; that in and by the Resolution, the City has pledged and appropriated so much of the net revenues to be derived from the operation of the municipal golf course, municipal recreation center and of the municipal liquor dispensary as shall be required to pay'the principal hereof and interest thereon when due, provided that if such revenues should at any time prove insufficient for these purposes the City is required to levy ad valorem taxes upon all taxable property within its corporate limits, without limitation as to rate or amount, for the payment of the Bonds and interest thereon when due; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. . 311 cu u? Ln I m a The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT... .. Custodian..... in common ' (Cust) (Minor) by the entireties TEN ENT -- as tenants JT TEN -- as joint tenants with right of survivorship and not as tenants in common under Uniform Gifts to Minors Act.... .................. (State) Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby , - irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER NOTICE: The sisnature to this OF ASSIGNEE: assignment must-correspond with the name as it appears upon the face of the within Bond in every / / particular, with'out alteration or any change whatsoever. Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. 2.03. shall appear on the reverse side of each Bond, folloving a copy of the text of the legal opinion of Bond Counsel: We certify that the above is a full, true and correct copy of the legal opinion rendered by Bond Counsel on the issue of Bonds of the City of Edina which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. Form of Certificate. A certificate in substantially the following form (Facsimile signature) (Facsimile signature) City Manager Mayor Section 3. Bond Terms. Execution and Deliverv. 3.01. Maturities, Interest Rates. Denominations. Payment. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Recreational Facility Bonds, Series 1988" and shall be payable primarily from the Bond Account created in Section 4.02 hereof. me Bonds shall be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on January 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from date of issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Rate Year Amount - Rate - Year Amount - 1992 $ 25,000 6.10% 2001 $175,000 7.00% 1993 25,000 6.20 2002 200,000 7.05 1994 25,000 6.30 2003 200,000 7.10 1995 25,000 6.40 2004 225,000 7.15 1996 25,000 6.50 2005 250,000 7.20 1997 25,000 6.60 2006 270,000 7.25 1998 25,000 6.70 2007 275,000 7.25 1999 25,000 6.80 2008 325,000 7.30 2000 25,000 6.90 2009 325,000 7.30 The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. Each Bond shall be dated by the Registrar as of the date of its authentication. 3.02. Dates: Interest Payment Dates. Interest on the Bonds shall be payable on January 1 and July 1 in each year, commencing July 1, 1989, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 10/3/88 312 3.03. Registration. registrar, transfer agent and paying agent (the Registrar). registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. bond register in which the Registrar shall provide for the registration of ownership of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchanne of Bonds. Whenever any Bond is surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing. (d) promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized. good faith, to make transfers which it, in its judgement, deems improper or unauthorized. (f) whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other moses, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and CharPes. For every transfer or exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost Stolen or Destroyed Bonds. mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the CZty and the Registrar shall be named as obligees. Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, subdivision 1. 3.04. ADDointment of Initial Reaistrar. The City hereby appoints First Rust National Association, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with First Rrust National Association, as Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. reasonable and customary charges of the Registrar for the services performed. City reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. before each principal or interest due date, without further order of this Council, the City Finance Director shall transmit to the Registrar from the Bond Account (Series 1988) described in Section 4.02 hereof, moneys sufficient for the payment of all principal and interest then due. 3.05. Redemtion. subject to redemption prior to maturity, but Bonds maturing in the years 1999 through 2009 shall each be subject to redemption and prepayment, at the option of The City shall appoint, and shall maintain, a bond The effect of The Registrar shall keep at its principal corporate trust office a Upon surrender for transfer of any Bond duly endorsed by Cancellation. All Bonds surrendered upon any transfer or exchange shall be ImP roper or Unauthorized Transfer. When any bond is presented to the The Registrar shall incur no liability for its refusal, in Persons Deemed Owners. The City and the Registrar may treat the person in In case any Bond shall become All Bonds so surrendered to the The City agrees to pay the The On or Bonds maturing in the years 1992 through 1998 shall not be , I cu Ln Ln -l- a 5 1013188 313 the City, in whole or in part, and if in part, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on January 1, 1988 and on any interest payment date thereafter at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. Bond, the City Manager shall cause notice of the call for redemption to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as a part of its service, and to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Upon a partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. 3.06. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. different Bonds need not be signed by the same representative. certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Bonds have been so executed and authenticated, they shall be delivered by the City Manager to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. Section 4. Security Provisions. 4.01. 1988 Recreational Facilities Construction Fund. special fund to be designated as the "1988 Recreational Facilities Bonds Construction Fund" (the Construction Fund), to be held and administered by the City Finance Director separate and apart from all other funds of the City. City appropriates to the Construction Fund the proceeds of the sale of the Bonds. The Construction Fund shall be used solely to defray expenses of the Improvements. Upon completion and payment of all costs of the Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund shall be credited and paid to the Bond Account (Series 1988) described in Section 4.02 hereof. 4.02. Bond Account (Series 19881. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the City Finance Director shall maintain the Recreation Center Fund and the Operating Account therein in accordance with the provisions of the Resolution of August 2, 1963. In addition, the City Finance Director shall maintain in the Recreation Center Fund a separate and special Bond Account (Series 1988) to be used for no other purpose other than the payment of the principal and interest on the Bonds and on such other bonds of the City as have been or may be directed to be paid therefrom. irrevocably appropriates to the Bond Account (Series 1988) (a) the sum of $252,061 from the net revenues derived from the operation of the Municipal Golf Center and/or Municipal Liquor Dispensary, vhich amount shall be credited forthwith to a separate subaccount in the Bond Account (Series 1988) (the Reserve Subaccount) and which amount equals the average annual amount of principal and interest to become due on the Bonds and is required to be deposited therein pursuant to the Act (the Reserve Requirement); (b) the accrued interest and any amount in excess of $2,424,000 bid for the Bonds and received from the Purchaser upon delivery of the Bonds; (c) all such other moneys which are payable to Bond Account (Series 1988) pursuant to Section 4.03 hereof; and (d) all such other moneys as shall be received and appropriated to Bond Account (Series 1988) from time to time. Interest on money in the Reserve Subaccount shall be transferred from such Reserve Subaccount into the Bond Account (Series 1988). 4.03. Pledge of Net Revenues. The Resolution of November 4, 1963 provided that net revenues of the Municipal Golf Center could be pledged to pay bonds issued to finance improvements to the Municipal Golf Center if the pledge of such revenues is expressly made subordinate to the first lien on and pledge of said revenues for the payment of principal and interest due and the maintenance of the reseme securing the Bonds. pledged for the payment of the principal and interest on the herein authorized Bonds, subject to the lien and charge thereon for the payment of principal and interest due, and the maintenance of a reserve, for the Outstanding Bonds. The resolutions authorizing the issuance of the Outstanding Bonds provided that net revenues of the Municipal Liquor Dispensary could also be pledged for the payment of additional bonds on a parity with the lien in favor of the Outstanding Bonds, At least thirty days prior to the date set for redemption of any Preparation and Deliveq. Certificates of authentication on The executed There is hereby created a The The City The net revenues of the Municipal Golf Center are hereby 10/3/88 314 if the net Municipal Liquor Dispensary revenues received in the fiscal year immediately preceding the issuance of such additional bonds shall have been at least 1-1/4 times the maxlrmun amount or principal and interest to become due in any subsequent fiscal year on the Outstanding Bonds and on the additional bonds. It is hereby found, determined and declared that the net Municipal Liquor Dispensary revenues received in the fiscal year which ended December 31, 1987 were insufficient to satisfy such condition, wherefore the Bonds may not be made payable from the net Municipal Liquor Dispensary revenues on a parity with the Outstanding Bonds as to both principal and interest without preference or priority of one bond over any other. The net revenues of the Municipal Liquor Dispensary are hereby pledged for the payment of the principal and interest on the Bonds subject to the lien and charge thereon for the payment of principal and interest due, and the maintenance of a reserve, for the Outstanding Bonds. The net revenues of the Municipal Recreation Center are not subject to any pledges for outstanding obligations of the City and such net revenues are hereby pledged for the payment of the principal and interest on the Bonds. the Municipal Golf Center on hand in the Operating Account of the Golf Course Fund and the net revenues of the Municipal Recreation Center on hand in the Operating Account of the Recreation Center Fund, there shall be transferred to the Bond Account (Series 1988) on each interest payment date after all transfers and credits required to be made from the Operating Account of the Golf Course Fund €or payment of principal of and hterest on the Golf Course Bonds, a sum equal to the interest and principal, if any, to become due on such interest payment date, less any amount on deposit therein (other than in the Reserve Subaccount) plus out of any net revenues remaining after the above payments for principal and interest into the Reserve Subaccount an amount equal to the amount necessary to cause the amount therein to equal the Reserve Requirement, if any, amounts in the Reserve Subaccount which have previously been used for the payment of any principal or interest on the Bonds, and an amount equal to any advances from the net revenues on hand in the Municipal Liquor Dispensary for the payment of principal and interest on the Bonds not previously reimbursed. If the net revenues on hand in the Operating Account of the Recreation Center Fund and Golf Course Fund in any month are not sufficient to transfer to the Bond Account (Series 1988) the amounts repired herein for the payment of principal and interest on the Bonds and there is not then on hand in Bond Account (Series 1988) sufficient moneys for payment of I principal and interest on the Bonds, the amount of the deficiency shall then be advanced fromthe net revenues of the Municipal Liquor Dispensary then on hand after all transfers and credits required to be made from such net revenues for payment of principal of and interest on the Golf Course Bonds. transferred to Bond Account (Series 1988) in repayment of any amounts of the net revenues of the Municipal Liquor Dispensary deposited in Bond Account (Series 1988) pursuant to Section 4.02 hereof which were used for the payment of principal . or interest on the Bonds and any amounts transferred to Bond Account (Series 1988) * in repayment of any advances from the net revenues in the Municipal Liquor Dispensary fund for the payment of principal and interest shall be transferred to the Municipal Liquor Dispensary fund as they are received. 4.04. Additional Bonds. payable in whole or in part from the net revenues of the Municipal Golf Center and/or Municipal Recreation Center to finance costs of an improvement thereto, for the acquisition, betterment, operation or maintenance of other recreational facilities of the City, or for any other purpose for which such revenues may be appropriated by the Council in accordance with law; provided, however, that no additional obligations shall be issued to and made payable from the net revenues of the Municipal Golf Center or Municipal Recreation Center unless the pledge of such revenues for payment of such additional obligations is expressly made subordinate to the lien and charge thereon in favor of payment of principal and interest vhen due, andmaintenance of reserve balances required for the Outstanding Bonds, and the lien and charge thereon in favor of principal and interest when due on the Bonds. of bonds payable in whole or in part from the net revenues of the Municipal Liquor Dispensary, whether pursuant to the Act or any other applicable law, provided that the pledge of the netMunicipa1 Liquor Dispensary revenues for the payment of such bonds is expressly made subordinate to the lien on and pledge thereof for the payment of the principal and interest and the maintenance of the agreed reserve securing such payments on the Bonds, unless the net Municipal Liquor Dispensary revenues received during the fiscal year immediately preceding such issuance shall have been not less than the maximum amount of principal and interest to become due in any subsequent fiscal year on a11 outstanding bonds then payable from such net revenues, hcluding the additional bonds then proposed to be issued. In the event that the net revenues received in the fiscal year preceding any such issuance have conformed to the condition prescribed in the preceding sentence, the additional bonds so issued may be payable from the net Municipal Liquor Dispensary revenues on a parity with the Bonds as to both principal and interest, without preference or priority of one bond over any other, except that if net Municipal Liquor Dispensary revenues on hand at any time are not sufficient, with other funds then on hand for the payment of all such bonds, to pay in full the principal and interest then due. the balance of net Municipal Liquor Dispensary revenues then available shall be allocated to the Bond Account (Series 1988) and to the From the net revenues of . Any amounts I i The City reserves the right to issue additional bonds Nothing herein shall prevent the future issuance I c 1013188 315 N m u-) I: m a respective accounts established for the payment of other bonds, in proportion to the principal amount of bonds of each issue which are then outstanding. 4.05. Tax Levy. Pursuant to the Act, the full faith, credit and taxing powers of the City are also irrevocably pledged for the prompt and full payment of the principal and interest on the Bonds, as such principal and interest respectively become due. The appropriations and covenants contained in this resolution are deemed to be sufficient to assure the payment of such principal and interest. Accordingly, no tax is presently levied for this purpose. appears that the net revenues of the Municipal Golf Center, Municipal Recreation Center and Municipal Liquor Dispensary which are pledged for the pawent of the Bonds and the net revenues of the Municipal Liquor Dispensary and/or Municipal Golf Center deposited in Bond Account (Series 1985) pursuant to Section 4.02 hereof shall not be sufficient to pay the principal and interest on the Bonds of the City covenants and agrees that it will levy a tax sufficient, with the net Municipal Liquor Dispensary and/or Municipal Golf Center revenues, net Wunicipal Recreation Center revenues and net Municipal Golf Center revenues then on hand in Bond Account (Series 1988), to pay all such principal and interest, which tax shall be levied upon all taxable property within the corporate limits of the City, without limitation as to rate or amount. Section 5. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the paying agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. Section 6. County Auditor Registration. Certification of Proceedings. Investment of Money. Arbitrape and Official Statement. 6.01. County Auditor Registration. directed to file a certified copy of this resolution with the County Auditor of Hennepin County, together with such other information as he shall require, and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the Purchaser, and to Dorsey & Uhitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 6.03. 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 (the Regulations), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations. 6.04. Arbitrage. The Mayor and City Manager, being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser thereof a certificate in accordance vith the provisions of Section 148 of the Code, and Treasury Regulations, Sections 1.103-13, 1.103-14 and 1.103-15, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6.05. the Bonds in such a manner as to cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code and applicable Regulations; to this end, the City shall: (i) 148(f)(6)(B) of the Code) attributable to the Bonds, the yield at which such gross proceeds are invested, any arbitrage profit derived therefrom (earnings in excess If at any time it Defeasance. The City my also at any time The City Clerk is hereby authorized and The officers of the City and the County Covenant. The City covenants and agrees with the holders from time to time ComDliance With Rebate Requirement. The City will not use the proceeds of maintain records identifying all "gross proceeds" (as defined in Section 10/3/88 316 of the yield on the Bonds) and any earnings derived from the investment of such arbitrage profit; (ii) make, or cause to be made as of the anniversary date of the issuance of the Bonds, the annual determinations of the amount, if any, of excess arbitrage required to be paid to the United States by the City (the Rebate Amount). (iii) Bond Years the amount, if any, which is required to be paid to the United States, including the last installment vhich shall be made no later than 60 days after the day on vhich the Bonds are paid in full; and (iv) retain all records of the annual determination of the foregoing amounts until sk (6) years after the Bonds have been fully paid. In order to comply vith the foregoing requirements, the City Finance Director shall determine the Rebate Amount within 30 days of each anniversary date of the issuance of the Bonds and upon payment in full of the Bonds and shall deposit such Rebate Amount in a separate account and shall separately account for the earnings from the investment of the Rebate Amount. In the event the foregoing requirements conflict vith the requirements of the Regulations promulgated under Section 148(f) of the Code, the requirements of such Regulations shall be controlling. 6.06 Official Statement. The Official Statement relating to the Bonds, dated September 21, 1988, prepared and distributed on behalf of the City by Public Fisancial Systems, Inc., is hereby approved. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Adopted by the City Council on October 3, 1988. pay, or cause to be paid, to the United States at least once every five ATTEST : e-=&- /r Mayor U [ City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Turner, 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, and was signed by the Mayor, which was attested by the City Clerk. (Member Kelly returned to the meeting at this point.) 1989 BUDGET HEARINGS CONCLUDED: 1989 CITY BUDGET OF $12,388.608 ADOPTED. The hearing on the proposed 1989 Budget was continued from the Budget Meeting of September 15, 1988. In response to questions raised by the Council, Manager Rosland presented additional information as follows. Administration/Dues and Subscriptions - The following items comprise the dues and subscriptions line item: Association of Metropolitan Municipalities $6,537, Municipal Legislative Commission $12,000, League of Minnesota Cities $14,767, League Building Assessment $2,518, ICMA and miscellaneous dues/subscriptions $4,478, totaling $40,300. In total, the AMM, MLC and LMC dues represent a 12% increase from 1988. Elections - Staff would recommend that Professional Services be reduced from $10,000 to $4,000. fees for legal services. staff to "hold the line" on legal fees. year a very small increase was included in the budget for legal fees. Recreation/Litter Removal - The Council questioned the substantial increase in this item. recommendations of the Park and Recreation Task Force. Senior Center Relocation - The Council generally agreed that funds should be provided for possible costs related to relocating the Senior Center. contingency budget be increased from $80,000 to $130,000 to fund these costs if necessary. Manager Rosland observed that with the two adjustments the proposed 1989 Budget would be a percent increase in tax dollars of 5.6% over 1988 and the City would be below its levy limit by $82,000. proposed Fees and Charges for 1989 are included in the revenues projection of the 1989 Budget. Following the presentation of the additional information, the Mayor called for public comment and hearing none the 1989 Budget hearing was considered closed. The Council Members then individually presented their viewpoints on the proposed 1989 Budget, indicating support or non-support for various programs and line items. suggested by individual Members and after considerable debate reached a consensus. Member Smith thereupon introduced the following resolutions and moved adoption: RESOLUTION RELATING TO COUNCIL SALARIES BE IT RBSOLVED by the City Council of the City of Edina, that it hereby approves the folloving salaries for members of the City Council, effective January 1, 1989: Mayor $7,050 annually Council Members 5,100 annually Richards, Smith, Turner, Courtney None 1 - Legal and Court Services - The Council questioned the nominal increase in In anticipation of similar direction this During the past two budgets, the Council has directed Park and Staff would propose additional litter pickup and removal based on the Staff would suggest that the City I He also pointed out that the The Council also discussed proposed budget cuts which had been and that the intent of this resolution is to amend Ordinance No. 124; 317 BE IT FURTIIER RESOLVED that the City Clerk is hereby directed to prepare and publish an appropriate ordinance amendment as a formality to further evidence the increase in City Council salaries but the salary increase shall be effective pursuant to this resolution. RESOLUTION ADOPTING BUDGET FOR T€E CITY OF EDINA FOR THE YEAR 1989, AND ESTABLISHING TAX LEVY FOR THE YEAR 1989 PAYABLE IN 1989 CIm COUNCIL OF THE CITY OF EDINB, MINNESOTA, DOES RESOLVE AS FOLLOWS: Section 1. adopted as hereinafter set forth, and funds are hereby appropriated therefor. GENERAL FUND The Budget for the City of Edina for the calendar year 1989 is hereby GENERAL GOVERNMENT Mayor and Council $ 58,920 Administration 502,521 Planning 186,770 Finance 296,858 Elect ion 23,802 Assessing 313 , 073 Legal and Court Services 309.000 PUBLIC WORKS Administrat ion $ 103,912 Engineering 414,456 Highways 2,480.821 PROTECTION OF PERSONS AND PROPERTY Police $3,122,170 Civilian Defense 24,993 Animal Control 53,415 Fire 1,896,117 Public Health 273,308 Inspection 235,819 PARK DEPARTMENT Administration $ 526,448 Recreation 107,050 Haintenance 952.855 TOTAL GENERAL GOV"HEN!C $ 1,690,944 TOTAL PUBLIC WORKS $ 2,999,189 TOTAL PROTECTION OF PERSONS AND PROPERTY $ 5,605,822 TOTAL PARK DEPARTMENT $ 1,586,353 NON-DEPARTMENTAL EXPENDITURES Contingencies $ 120,000 Special Assessments on City Property 80,000 Capital Plan Appropriation 140,000 Commissions and Special Projects 166.300 TOTAL NON-DEPARTMENTAL EXPENDIT[JRES $ 506,300 TOTAL GENERAL FUND $12.388.608 Section 2. as hereinafter set forth: Estimated receipts other than General Tax Levy are hereby established GENERBL E"D Licenses and Permits $ 637,000 Municipal Court Fines 510,000 Department Service Charges 767,000 Other 166,120 Transfer from Liquor Fund 350,000 State Apportionments - Sales Tax 561 , 431 Income on Investments 70,000 Aids - Other Agencies 185,666 Police Aid S 145,000 TOTAL ESTIMATED RECEIPTS $3,392,217 Section 3. property in the City of Edina a tax rate sufficient to produce the amounts hereinafter set forth: Motion for adoption of the resolutions was seconded by Member Turner. That there be and hereby is levied upon all taxable real and personal FOR GENERAL $8,996.391 Rollcall. : Ayes: Kelly, Richards, Smith, Turner, Courtney Resolutions adopted. *RESOLUTION ADOPTED CANCELLING AD VALOREM TAXES COLLECTIBLE WITH 1989 GENERAL PROPERTY TAXES LEVIED FOR $5,400,000 GENERAL OBLIGATION IMPROVEMENT BONDS. SERIES 1984. Motion was made by Member Smith and seconded by Member Turner for adoption of the following resolution: RESOLUTION CANCELLING AD VALOREM TAXES COLLECTIBLE WITH 1989 GENERAL PROPERTY TAXES LEVIED FOR $5.400.000 GENERAL OBLIGATION IMPROVEMENT BONDS. SERIES 1984 WHEREAS, the City Council of the City of Edina has, by resolution adopted September 10, 1984, levied a special ad valorem tax for the payment of principal and interest of its General Obligation Improvement Bonds, Series 1984; said ad valorem tax in the amount of $1,127,000 being collectible with and as a part of other general taxes for the year 1989; and 10/3/88 318 WEEREAS, lIinnesota Statutes, Section 475.61, permits the cancellation of said levies providing moneys are on hand for payment of principal and interest for said bond issue; and it has been determined by this Council that the required moneys are on hand for the payment of said principal and interest; NOW, TEEREFORE, BE IT RESOLVED by the City Council of the City of Edina that those ad valorem tax levies made by resolution of this Council adopted September 10, 1984, and collectible with and as a part of other general property taxes in said City for the year 1989, be and hereby are cancelled; and BE IT FURTHER RESOLVED that the County Auditor of Hennepin County, Minnesota, be authorized and directed to cancel the above described ad valorem tax levies and to delete said levies from taxes to be spread for the year 1989. Motion carried on rollcall vote, five ayes. RESOLUTION ADOPTED CANCELLING AD VALOREM TAXES COLLECTIBLE WITH 1989 GENERAL PROPERTY TAXES LEVIED FOR $2,200.000 GENERAL OBLIGATION REDEVELOPMENT BONDS. Motion vas made by Member Smith and seconded by Member Turner for adoption of the following resolution: RESOLUTION CANCEILING AD VALOREM TAXES COIJXCTIBLE WITH 1989 GENERAL PROPERTY TAXES LEVIED FOR $2.200.000 GENERAL OBLIGATION REDEVELOPMENT BONDS TJHEREBS, the Citp. Council of the City of Edina has, by resolution adopted November 3, 1975, levied a special ad valorem tax for the payment of principal and interest of its $2,200,000 General Obligation Redevelopment Bonds, said ad valorem tax in the amount of $238,000 being collectible with and as a part of other general taxes for the year 1989; and ‘RHWEBS, Minnesota Statutes, Section 475.61, permits the cancellation of said levies providing moneys are on hand for payment of principal and interest for said bond issue; and it has been determined by this Council that the required moneys are on hand for the payment of said principal and interest; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Edina that those ad valorem tax levies made by resolution of this Council adopted November 3, 1975, and collectible with and as a part of other general property taxes in said City for the year 1989, be and hereby are cancelled; and BE IT FURTHER RESOLVED that the County Auditor of Hennepin County, Minnesota, be authorized and directed to cancel the above described ad valorem tax levies and to delete said levies from taxes to be spread for the year 1989. ! Motion carried on rollcall vote, five ayes. FINANCE. payment of the following claims as per pre-list dated 10/01/88: General Fund $135,250.67, Art Center $4,760.11, Capital Fund $2,317,07, Swimming Pool Fund $1,316.29, Golf Course F&d $9,214.75, Recreation Center Fund $53,266.15, Gun Range Fund $352.05, Edinborough Park $6,233.90, Utility Fund $243,178.54, Liquor Dispensary Fund $15,765.28, Total $471,654.81. Motion was made by Member Smith and seconded by Member Turner to approve Motion carried on rollcall vote, five ayes. I There being no further business on the Council Agenda, Mayor Courtney declared the meeting adjourned at 12:20 a.m. .. -. . Attachment to Minutes of 10/17/88 CITY OF EDINA In the Matter of the Application of Dan Berenberg for a Subdivision of Lot 1, Block 1, Hilldale, Hennepin County, Minnesota, except that part thereof described as follows: line of said Lot 1 distant 79.5 feet northwesterly from the northeast corner of said Lot 1; thence south parallel with the east line of said Lot 1 a.distance of 141.3 feet-; thence west 76 feet to a point in the northwesterly line of said Lot 1 a distant 159.3 feet southwesterly from the most northerly corner of said Lot 1; thence northeasterly along the northwesterly line of said Lot 1 to the most northerly corner thereof; thence southeasterly along the northeasterly line of said Lot 1, 4.5 feet to the point 6f beginning, according to the map or plat thereof on file and of record in the office of the Register of Deeds in and for Hennepin County, Minnesota. (S-88-7) Commencing at a point on the northeasterly The above entitled matter was heard before the City Council, City of Edina, on October 3, 1988. Mr. Dan Berenberg ("Proponent") was present. Gary Gandrud, attorney for the Proponent, and Mike Black, planner for the Proponent were also present. Property owners in the vicinity of the subject subdivision and their attorney were also present. the facts and arguments presented by the proponent, his representatives, property owners in the vicinity of the subject subdivision and their The City Council, having heard and reviewed all of representative and having heard and received evidence and law adduced by the Proponent, his representatives, City Staff, and property owners and their representative and being fully advised, after due consideration, hereby makes the following -1- . .. .. .. Minutes 10/17/88 FINDINGS OF FACT: 1. The Proponent, on June 22, 1988, submitted an application for subdivision of a 61,009 square foot parcel of land located west of Hollywood Road and north of Interlachen Boulevard. This tract of land (the "Subject Property") comprises most of Lot 1, Block 1, Hilldale. An existing single dwelling unit building is located in the southwesterly portion of the Subject Property. Proponent. According to City records the Subject Property is owned by the 2. The subdivision (the "Proposed Subdivision"), as submitted with the application for subdivision on June 22, 1988, delineated two, R-1 single dwelling unit lots. Lot 1 of the Proposed Subdivision measured 14,400 square feet in area (according to the Proponents surveyor) and Lot 2 measured 46,609 square feet (according to the Proponents surveyor). The existing dwelling located on Lot 1 would remain. an easement, in favor of Northern States Power Company, to construct and operate overhead electrical transmission lines. No buildings may be constructed within this easement area. The existence of the easement restricts the buildable area to the northwesterly portions of the lot, to the rear of the existing dwelling, which results in the visual appearance and practical use as a "neck lot", contrary to the policies of the Comprehensive Plan (as stated in paragraph 8 of these findings) and would impair the symmetry of the Hilldale neighborhood. The easterly 50 feet of Lot 2 is encumbered by 3. Lot 2 of the Proposed Subdivision exhibits steep slopes exceeding 25 percent in some areas. the existing slopes. Development of Lot 2 would result in substantial cuts in In addition to alteration of the existing natural -2- . .. Minutes 10/17/88 condition of areas with steep slopes development would result in 50 percent slopes above a five to six foot high retaining wall adjacent to the driveway serving the new dwelling. lot line of the existing dwelling on the Subject Property. This area of 50 percent slopes would be near the rear The existence of I steep slopes is a logical reason why the lot was platted larger than adjacent lots in the Hilldale Addition which front on Interlachen Boulevard. 4. .The Edina Community Development and Planning Commission (the "Commission") reviewed the Proposed Subdivision at its July 6 and July 27, 1988 meetings. Proponent and his representatives the Commission continued the hearing to July 27, 1988 to allow the Proponent time to consider alternative site access (being the extension to the site of a road west of the site) and to allow Commission members time to personally inspect the site. At the July 27, 1988 Commission I meeting several property owners were present and spoke in opposition to the Proposed Subdivision citing issues concerning alteration of the terrain, After consideration of recommendations by City Staff, comments of the I creation of a "flag or neck lot", adverse impact of development on the pond located immediately north of the Subject Property, damage to the character and symmetry of the neighborhood, and the establishment of a precedent for further subdivision in the neighborhood. After consideration of recommendations of City Staff, comments of the Proponent and his representatives, and property owners in the vicinity and their representative, the Commission unanimously recommended denial of the Proposed Subdivision. 5. On October 3, 1988, the Edina City Council conducted a public hearing and received the report and recommendation of the Commission regarding the Proposed Subdivision. Pursuant to applicable City Ordinances notice of the 1 -3- . _. Minutes 10/17/88 -1 public hearing was published in the Edina Sun Current and mailed to property owners within 350 feet of the Subject Property. property owners and their representative testified in opposition to the Proposed Subdivision. At said hearing, surrounding A petition signed by approximately 26 property owners who reside in the Hilldale'neighborhood was submitted. Among issues submitted in their oral and written testimony were damage to the character and symmetry of the area, destruction of the unique natural environment and terrain around the pond, the undesirable precedent of creating a neck lot, and the undesirable precedent of further subdivision in the neighborhood. 6. The Zoning 'Ordinance imposes the following minimum standards for single dwelling unit lots: Minimum Lot Area Minimum Lot Width Minimum Lot Depth 9,000 square feet 75 feet 120 feet a. The dimensions and areas of the Proposed Subdivision comply with the above standards. 7. Edina Ordinance No. 801 (the "Platting Ordinance") states that the City in approving plats, shall consider, among other things, the suitability of plats from the standpoint of community planning. 8. The Edina Comprehensive Plan, adopted by the City Council on December 12, 1981, states the following general policies: -4- . _. Minutes 10/17/88 a. "Allow further subdivision of developed single family lots only if neighborhood character and symmetry are preserved." b. "Prohibit "neck lot" subdivisions , whereby access to public streets is gained through narrow strips of land adjacent to other lots." C. "Protect the lands, waterbodies, and watercourses of Edina from erosion, sedimentation, slippage, and vegetation removal resulting from inappropriate uses of steep slopes." ' ' d. "Require increased minimum lot sizes for.single family and two family lots on steep slopes." 9. Lot widths in the Hilldale plat range from approximately 120 feet to 300 feet with a median average lot width of approximately 160 feet. The two lots in the Proposed Subdivision have lot widths of 118 feet and 76 feet. a. The Zoning Ordinance defines "lot width" as follows: "The horizontal distance between side lot lines measured at right angles to the line establishing the lot depth at a point 50 feet from the front lot line. b. The Zoning Ordinance defines "lot depth" as follows: -5 - Minutes 10/17/88 \ * "The horizontal distance between the midpoint of the front lot line and the midpoint of the rear lot line." THEREFORE, based on the foregoing findings, the City Council does hereby make the following Decision : The application for the Proposed Subdivision entitled Berenberg First Addition is hereby denied. The decision is made for the following Reasons : A. The policies of the Comprehensive Plan must be considered in'deciding whether or not to approve subdivisions. the policies of the Comprehensive Plan concerning the further subdivision of single family lots because the character and symmetry of the Hilldale neighborhood would not be preserved, because a "neck lot" effectively results from the subdivision, and because a substantial portion of steep slopes on Lot 2 would be substantially altered by development. The Proposed Subdivision is contrary to B. Property owners in the vicinity of the Subject Property have the right to rely on filed plats for the area and may rightly presume that any modification or replatting of said plats will be in a manner suitable and -6- . .. Minutes 10/17/88 b \ compatible with surrounding properties and that the character of the Hilldale nzighborhood will be preserved. Property owners in the Hilldale neighborhood have objected to the Proposed Subdivision for reasons of an adverse impact on the unique natural environment of the pond and surrounding steep slopes, the undesirable impact of a "neck lot" to the character and symmetry of the neighborhood, the resulting negative impact on property values in the neighborhood and the undesirable precedent of further subdivisions in the neighborhood . C. The Subject Property is not unusually or uncharacteristically large compared to other lots in the Hilldale plat. Lot widths of 118 feet and 76 feet in the Proposed Subdivision are less than that of the narrowest lot in Hilldale and significantly narrower than the median average lot width. average lot width in Hilldale is approximately 160 feet and the smallest existing lot width is approximately 120 feet. The spaciousness afforded by the Subject Property adds more than insignificant value to its use as one homesite, for which it is now, and can be, used. The median D. Approval of the Proposed Subdivision could establish a precedent encouraging the replatting of lots with similar circumstances which would adversely alter the character and symmetry of the Hilldale neighborhood contrary to the policies of the Comprehensive Plan. E. Approval of the Proposed Subdivision would have an adverse impact on the present unique natural environment and terrain surrounding the pond. F. Approval of the Proposed Subdivision would violate the Platting Ordinance since it does not represent sound community planning. -7 -