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Granting preliminary approval to the issuance of Sales Tax Revenue Bonds, Series 2014 by the City of Saint Paul, Minnesota, and authorizing City finance staff and advisors to take certain actions with respect to the sale of such Sales Tax Revenue Bonds.
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WHEREAS, under Laws of Minnesota 1993, Chapter 375, Article 9, Section 46, as amended (the "Local Sales Tax Act"), the City of Saint Paul, Minnesota (the "City") is authorized to impose an additional sales tax of up to one-half of one percent on sales transactions taxable pursuant to Minnesota Statutes, Chapter 297A, as amended, that occur within the City (the "Local Sales Tax"); and
WHEREAS, under the terms of the Local Sales Tax Act, the Council of the City previously adopted resolutions approving the Local Sales Tax Act and imposing the Local Sales Tax; and
WHEREAS, under the terms of subdivision 2 of the Local Sales Tax Act, the City is authorized to use the revenues derived from the Local Sales Tax to finance capital projects to further residential, cultural, commercial, and economic development in both downtown Saint Paul and the Saint Paul neighborhoods; and
WHEREAS, the City is proposing to issue its Sales Tax Revenue Bonds (the "Series 2014 Bonds"), in one or more series of tax-exempt bonds or taxable bonds, in an amount necessary to provide up to $40,000,000 to the project fund to finance a portion of the capital costs authorized to be financed under the terms of the Local Sales Tax Act; and
WHEREAS, the proceeds of the Series 2014 Bonds will be applied to finance various capital projects to be defined and designated by the City Council (the "Projects") to further residential, cultural, commercial, and economic development in both downtown Saint Paul and Saint Paul neighborhoods as authorized by the Local Sales Tax Act; and
WHEREAS, the Series 2014 Bonds are proposed to be issued in a negotiated sale pursuant to a supplement to an Indenture of Trust, dated as of May 1, 2009, as amended (the "Indenture"), between the City and Wells Fargo Bank, National Association, on a parity basis with the City's outstanding Taxable Variable Rate Demand Sales Tax Revenue Refunding Bonds, Series 2009; and
WHEREAS, the Series 2014 Bonds will issued in accordance with the provisions of the Indenture, the City Charter, the Local Sales Tax Act, and Minnesota Statutes, Chapter 475, as amended;
WHEREAS, the Series 2014 Bonds will not constitute general or moral obligations of the City within the meaning of any constitutional or statutory limitation but will be solely payable from, and secured by, the revenues pledged to the Series 2014 Bonds pursuant to the Indenture; and
WHEREAS, City finance staff currently anticipates selling the Series 2014 Bonds in the current calendar year.
NOW, THEREFORE BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, that
The Director, Office of Financial Services, City Debt Manager and other appropriate City officials and staff are hereby authorized and directed to proceed with such actions as are necessary or appropriate to provide for the issuance and sale of the Series 2014 Bonds. Each series of the Series 2014 Bonds shall be issued and sold in conformance with the provisions of the City Charter and Minnesota law as either tax-exempt or taxable obligations.
Springsted Incorporated ("Springsted") is hereby designated as municipal advisor to the City with respect to the Series 2014 Bonds. Piper Jaffray & Co. and Wells Fargo Bank, National Association are hereby designated as underwriters (collectively, the "Underwriters") with respect to the Series 2014 Bonds. City staff, Springsted, and the Underwriters, are authorized to proceed with preliminary actions for the issuance of the Series 2014 Bonds.
Kennedy & Graven, Chartered is hereby named as bond counsel for the Series 2014 Bonds. Kennedy & Graven, Chartered is hereby authorized to work with City staff to prepare the necessary financing documents.
The City intends to make expenditures for the Projects financed by the Series 2014 Bonds and reimburse such expenditures from the proceeds of the Series 2014 Bonds. This resolution is intended to constitute a declaration of the City's official intent, for purposes of Section 1.150-2 of the Treasury Regulations, with respect to certain original expenditures made from any sources other than the proceeds of the Series 2014 Bonds, in conjunction with the capital projects financed thereby.