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RESOLUTION PROVIDING FOR THE ISSUANCE, SALE AND DELIVERY OF GENERAL OBLIGATION DECC IMPROVEMENT REFUNDING BONDS, SERIES 2016A, IN THE APPROXIMATE AMOUNT OF $33,440,000; ESTABLISHING THE TERMS AND FORM THEREOF; AND PROVIDING FOR AWARDING THE SALE THEREOF.
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CITY PROPOSAL:
BE IT RESOLVED, by the City Council (the "City Council") of the city of Duluth, St. Louis County, Minnesota (the "City"), as follows:
Section 1. Bond Purpose and Authorization.
1.01 The City has previously issued its $40,635,000 General Obligation DECC Improvement Bonds, Series 2008A, dated August 7, 2008 (the "2008 Bonds"). The 2008 Bonds were authorized and issued pursuant to the provisions of Minnesota Laws 1974, Chapter 130, Minnesota Statutes, Chapter 475 and all other enabling statutes. The 2008 Bonds were issued to finance a portion of the costs of capital improvements at the Duluth Entertainment Convention Center, which included a new arena (the "Project").
1.02 Under and pursuant to the provisions of Minnesota Statutes, Chapter 475 (the "Act") and Section 475.67, Subdivisions 1 through 12 of the Act, the City is authorized to issue and sell its general obligation bonds to refund certain maturities of the 2008 Bonds in advance of their scheduled maturities, if consistent with covenants made with the holders thereof, when determined by the City to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment and if the refunding satisfies the savings test set forth in Section 475.67, Subdivision 12 of the Act.
1.03 It is necessary and desirable that the City issue and sell approximately $33,440,000 General Obligation DECC Improvement Refunding Bonds, Series 2016A (the "Bonds"), in order to reduce debt service costs, to refund the outstanding 2008 Bonds maturing on and after February 1, 2019, of which $36,810,000 in princi...
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