88-165
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RESOLUTION NO. / 65- ~
RESOLUTION ELECTING TO DESIGNATE CERTAIN BONDS
ISSUED IN 1986 AS "QUALIFIED TAX-EXEMPT OBLIGATIONS"
WHEREAS, the City of Shorewood, Minnesota (the "Issuer") issued
its $985,000 General Obligation Improvement Bonds, Series 1986A (the
"Bonds") while the Federal Tax Reform Act of 1986 was pending with a
retroactive effective date, specifically on or after January 1, 1986, and
on or before August 7, 1986; and
WHEREAS, when the Bonds were issued, the Issuer made a
designation that it intended to qualify the Bonds under Section 802 (e)
(3) of H.R. 3838 of the 99th Congress as passed by the House of
Representatives; and
WHEREAS, the Issuer convenanted to take such actions as are
necessary to effectuate such attempted designation; and
WHEREAS, for the bonds to get the benefit of being designated as
"qualified tax-exempt obligations" under Section 265(b) (3) of the Federal
Internal Revenue Code of 1986, as amended (the "Code"), it is necessary
that the Issuer make an election under subparagraphs (C) of Section
1009(b) (3) of the Federal Technical and Miscellaneous Revenue Act of 1988
("TAMRA") and designate the Bonds pursuant to subparagraph (B) of Section
1009(b) (3) of TAMRA and Section 265(b) (3) of the Code; and
WHEREAS, the Bonds qualify for such designation because they are
not private activity bonds (or, if private activity bonds, are qualified
501(c) (3) bonds, or refund bonds which were not industrial development
bonds or private loan bonds), the Issuer with respect to bonds issued in
1986 is a "qualified small issuer" of $10,000,000 or less of bonds, and
not more than $10,000,000 of bonds issued in 1986 have been designated.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Shorewood, Minnesota, as follows:
1. Election. The Issuer hereby makes an election with respect
to the Bonds under Section 1009 (b) (3) (C) of the Federal Technical and
Miscellaneous Revenue Act of 1988.
2. Designation of Qualified Tax-Exempt Obligations. In order to
qualify the Bonds as "Qualified Tax-Exempt obligations" within the meaning
of Section 265(b) (3) of the Code, the Issuer hereby makes the following
factual statements and representations:
.
( a)
the Bonds are treated as issued on August 8, 1986, because:
(i) the Bonds were issued on or after January 1, 1986,
and on or before August 7, 1986,
(ii) when the Bonds were issued, the Issuer made a
designation that it intended to qualify the Bonds
under Section 802(e) (3) of H.R. 3838 of the 99th
Congress as passed by the House of Representatives,
and
(iii) the Issuer, in paragraph 1 above, has made an
election under Section 1009 (b) (3) (C) of TAMRA;
and
(b) the Bonds are not "private activity bonds" as defined in
Section 141 of the Code, or if private activity bonds, they
are:
(i) qualified 501(c) (3) bonds as defined in Section 145
of the Code, or
(ii)
obligations issued to refund (or which are part of a
series of obligations issued to refund) obligations
issued before August 8, 1986, which were not
industrial development bonds (as defined in Section
103(b) (2) of the Federal Internal Revenue Code of
1954, as amended, as in effect on the day before the
date of the enactment of the Federal Tax Reform Act
of 1986) or a private loan bond (as defined in
Section 103(0) (2) (A) as so in effect, but without
regard to any exemption from such definition other
than Section 103(0) (2) (A) );
.
(c) the Issuer hereby designates the Bonds as "qualified
tax-exempt obligations" for purposes of Section 265(b) (3)
of the Code;
(d) at the time the Bonds were issued, the amount of tax-exempt
obligations (other than private activity bonds, treating
qualified 501(c) (3) bonds as not being private activity
bonds) which had been or were to be issued in 1986 by the
Issuer (and all entities treated as one issuer with the
Issuer, and all subordinate entities thereof) during
calendar year 1986 was not reasonably expected to exceed
$10,000,000; and
.
.
.
.
(e)
not more than $10,000,000 of obligations issued by the
Issuer during calendar year 1986 have been designated for
purposes of Section 265(b) (3) of the Code.
ADOPTED BY THE CITY COUNCIL of the City of Shorewood this 23d day of
December, 1988.
ATTEST:
Sandra L. Kennelly, City Clerk
Roll Call Votes:
Ayes: Brancel, Gagne, Haugen, Stover
Nays: - 0 -
.
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LAW OFFICES
WURST, PEARSON, LARSON, UNDERWOOD & MERTZ
A PARTNERSHIP INCLUDING PROFESSIONAL ASSOCIATIONS
1100 FIRST BANK PLACE WEST
A THOMAS WURST, P.A.
CURTIS A PEARSON, P.A
JAMES D. LARSON, P.A.
THOMAS F. UNDERWOOD, P.A
CRAIG M. MERTZ
ROGER J. FELLOWS
MINNEAPOLIS, MINNESOTA 55402
TELEPHONE
(612) 338-4200
December 21, 1988
F"AX NUMBER
(612) 338-2625
Mr. Daniel Vogt
Administrator-Treasurer
City of Shorewood
5755 Country Club Road
Shorewood, MN 55331
Re: City of Shorewood
$985,000 G.O. Improvement Bonds, Series 1986A
Dear Dan:
In late October of 1988, the Congress adopted the Technical and
Miscellaneous Revenue Act of 1988, referred to as H.R. 4333. The purpose
of this Act was to correct and clarify matters that had been incorporated in
the Tax Reform Act of 1986.
When bonds were issued between January 1, 1986, and August 7, 1986,
you as an issuer adopted resolutions prepared by this office indicating
that it was your intent to qualify under Section 802 (c) (3) of H.R. 3838 of
the 99th Congress as passed by the House of Representatives. We are now
recommending that as a result of the Tax Correction Act, a new resolution be
adopted designating the Bonds issued within that time frame as "qualified
tax exempt obligations." There is a difference of opinion within the bond
community as to the necessity of this action, but many of us feel that the
most conservative approach is to adopt the resolution so there is no
question that your bonds issued in 1986 are in compliance wi th the tax code.
We have therefore prepared a resolution which we suggest that you
adopt PRIOR TO JANUARY 1, 1989. If for any reason you are not going to have
a meeting for the balance of the year, we would suggest that at a minimum you
obtain the approval of various Council members and sign and date the
resolution and then ratify it at your first meeting in 1989. Adopting this
resolution will protect the holders of the obligations which you issued in
1986, and if there ever is a review of your records by the IRS, you will have
this resolution on file to substantiate your designation of the bonds as
qualified tax exempt obligations.
.
.
.
.. -
WURST, PEARSON, LARSON, UNDERWOOD & MERTZ
You need not return anything to this office, but adopt the
resolution and place it in your file. We recommend you do this prior to
January 1, 1989.
Very truly yogrs,
1If', ",,' {", /)
(!k; "'o'""/)' ,~j/
/ -r (f' ,0 ~ ,,' M"',,-,
t/ ?, [t-_. ,-' Ztl./ttlC~
C tis A. Parson
Bond Counsel
CAP: Ih
Enclosure
r
r"'//
)t
.
Extract of Minutes of a Meeting of the
City Council of the
City of Shorewood, Minnesota
Pursuant to due call and notice hereof, a
meeting of
the City Council of the City of Shorewood, Minnesota, was duly held at the
City Hall in said City on
, the
day of
,
1988, at
. m.
The following members were present:
and the following were absent:
* * *
* * *
* * *
Councilmember
introduced the following
. resolution and moved its adoption:
RESOLUTION ELECTING TO DESIGNATE CERTAIN BONDS
ISSUED IN 1986 AS .OUALIFIED TAX-EXEMPT OBLIGATIONS.
WHEREAS, the City of Shorewood, Minnesota (the "Issuer") issued
its $985,000 General Obligation Improvement Bonds, Series 1986A (the
"Bonds") while the federal Tax Reform Act of 1986 was pending with a
retroacti ve effective date, specifically on or after January 1, 1986, and
on or before August 7, 1986; and
WHEREAS, when the Bonds were issued, the tssuer made a designation
that it intended to qualify the Bonds under Section 802 (e) (3) of H.R. 3838
of the 99th Congress as passed by the House of Representatives; and
WHEREAS, the Issuer covenanted to take such actions as are
necessary to effectuate such attempted designation; and
WHEREAS, for the Bonds to get the benefit of being designated as
"qualified tax-exempt obligations" under Section 265 (b) (3) of the.federal
Internal Revenue Code of 1986, as amended (the .Code"), it is necessary that
the Issuer make an election under subparagraphs (C) of Section 1009 (b) (3)
of the federal Technical and Miscellaneous Revenue Act of 1988 ("TAMRA")
and designate the Bonds pursuant to subparagraph (B) of Section 1009 (b) (3)
of TAMRA and Section 265(b) (3) of the Code; and
. WHEREAS, the Bonds qualify for such designation because they are
not private activity bonds (or, if private activity bonds, are qualified
50l(c) (3) bonds, or refund bonds which were not industrial development
.
bonds or private loan bonds), the Issuer with respect to bonds issued in
1986 is a "qualified small issuer" of $10,000,000 or less of bonds, and not
more than $10,000,000 of bonds issued in 1986 have been designated;
NOW, THEREFORE, BE IT RESOLVED By the City Council of the City of
Shorewood, Minnesota, as follows:
1. Election. The Issuer hereby makes an election with
respect to the Bonds under Section 1009 (b) (3) (C) of the federal Technical
and Miscellaneous Revenue Act of 1988.
2. Designation of Qualified Tax-Exempt Obligations. In
order to qualify the Bonds as "qualified tax-exempt obligations" within the
meaning of Section 265(b) (3) of the Code, the Issuer hereby makes the
following factual statements and representations:
(a) the Bonds are treated as issued on August 8, 1986, because:
(i) the Bonds were issued on or after January 1, 1986,
and on or before August 7, 1986,
(i i)
when the Bonds were issued, the Issuer made a
designation that it intended to qualify the Bonds
under Section 802 (e) (3) of B.R. 3838 of the 99th
Congress as passed by the Bouse of
Representatives, and
~
(iii)
the Issuer, in paragraph 1 above, has made an
election under Section 1009(b) (3) (C) of TAMRA;
and
(b) the Bonds are not "private activity bonds" as defined in
Section 141 of the Code, or if private activity bonds, they
are:
(i) qualified 501 (c) (3) bonds as defined in Section
145 of the Code, or
(ii) obligations issued to refund (or which are part of
a series of obligations issued to refund)
obligations issued before August 8, 1986, which
were not industrial development bonds (as defined
in Section 103 (b) (2) of the federal Internal
Revenue Code of 1954, as amended, as in effect on
the day before the date of the enactment of the
federal Tax Reform Act of 1986) or a pr i vate loan
bo.nd (as defined in Section 103 (0) (2) (A) as so in
effect, but without regard to any exemption from
such definition other than Section
103 (0)(2) (A) ) ;
.
(c)
the Issuer hereby designates the Bonds as "qualified tax-
exempt obligations" for purposes of Section 265 (b) (3) of
the Code;
.
.
.
(d)
at the time the Bonds were issued, the amount of tax-exempt
obligations (other than pr i vate acti vi ty bonds, treating
qualified 501(c) (3) bonds as not being private activity
bonds) which had been or were to be issued in 1986 by the
Issuer (and all entities treated as one issuer with the
Issuer, and all subordinate entities thereof) during
calendar year 1986 was not reasonably expected to exceed
$10,000,000; and
(e) not more than $10,000,000 of obligations issued by the
Issuer during calendar year 1986 have been designated for
purposes of Section 265(b) (3) of the Code.
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember
,
and after full
discussion thereof 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.
Mayor
Attest:
City Clerk
.
e\
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF SHOREWOOD
I, the undersigned, being the duly qualified and acting Clerk of
the Ci ty of Shorewood, Minnesota, do hereby certify that I have compared the
attached and foregoing extract of minutes with the original thereof on file
in my office, and that the same is a full, true and complete transcr ipt of
the minutes of a meeting of the City Council of said City duly called and
held on the date therein indicated, insofar as such minutes relate to a
resolution designating certain bonds as "qualified tax-exempt
obligations."
WITNESS My hand and the seal of the City this
, 1988.
day of
Clerk
(SEAL)
..4