01-001-O
ORDINANCE NO. __________

AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF UP TO $7,500,000 GENERAL OBLIGATION REFUNDING REVENUE BONDS (DULUTH ENTERTAINMENT CONVENTION CENTER/IMAX® DOME THEATER PROJECT) OF THE CITY OF DULUTH UPON TERMS AND CONDITIONS TO BE PROVIDED BY RESOLUTIONS OF THE CITY COUNCIL.

BY COUNCILOR HOGG:

The city of Duluth does ordain:

        Section 1.    Bond purpose and authorization.

                1.01    The city previously issued its $8,755,000 gross revenue recreation facility bonds (Duluth Entertainment Convention Center/Imax® dome theater project), Series 1994, dated as of December 1, 1994 (the "1994 bonds"), in order to construct, acquire and install a dome theater and Imax® projection system (the "project"). The project has been completed.

                1.02    Laws of Minnesota 1999, Chapter 248, Section 21 (the "act"), authorizes the city to issue general obligation revenue refunding bonds to refund in advance of their maturity the 1994 bonds, on condition that the Duluth Entertainment Convention Center authority (the "DECC") pledges net revenues of the DECC facilities for payment of principal and interest on the refunding bonds.

                1.03    The city council hereby determines that it is in the best interest of the city and it is necessary to issue general obligation revenue refunding bonds (Duluth Entertainment Convention Center/Imax® dome theater project) (the "bonds") in an amount not to exceed $7,500,000 for the purpose of refunding the 1994 bonds and paying for a portion of the interest cost of the issue.

                1.04    Pursuant to the authority of the act, Minnesota Statutes, Chapter 475 and the Home Rule Charter of the city, the city council hereby authorizes and directs the issuance and sale of the bonds in an amount not to exceed $7,500,000, and pledges the full faith and credit and taxing powers of the city irrevocably for the payment of the principal and interest when due on such bonds.

        Section 2.    Terms of bonds.

                2.01    The city council shall, by resolution or resolutions, provide for the issuance and sale of the bonds and shall fix the precise maturities, interest rates, redemption provisions and other terms and conditions of the bonds, and prescribe the form thereof, and offer to sell the bonds in such a manner and at such time or times as shall be deemed in the public interest, all in accordance with the provisions of the act and Minnesota Statutes, Chapter 475, and of other applicable laws.

        Section 3.    Revenues and accounts.

                3.01    The city council shall, by resolution or resolutions, provide for the authorization of a pledge agreement with the DECC, in which the DECC provides for the method of imposing and collecting just and equitable charges for all use and occupancy of the DECC facilities at the times and amounts required to pay the current operating expenses and to maintain such facilities and also to produce net revenues at least adequate at all times to pay the principal and interest due on the Bonds and on all other obligations hereafter issued and made payable from said net revenues.

                3.02    The city council shall, by further resolution or resolutions, establish appropriate accounts and credit monies from the proceeds of the bonds to such accounts, all in accordance with Section 54 of the City Charter and Chapter 475 of Minnesota Statutes.

        Section 4.    Certificate of proceedings.

                4.01    The city clerk is directed to file with the county auditor of St. Louis County a certified copy of this ordinance, and such other information as the county may require, and to obtain from the county auditor a certificate stating that the bonds have been duly entered on his register.

                4.02    The officers of the city and the county auditor are authorized and directed to prepare and furnish to the purchaser of the bonds, and to bond counsel, certified copies of all proceedings and records of the city relating to the authorization and issuance of the bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the bonds as such facts appear from the official books and records in the officers' custody or are otherwise known to them. All such certified copies, certificates and affidavits, including any heretofore furnished, constitute representations of the city as to the correctness of the facts recited therein and the action stated therein to have been taken.

        Section 5.    Effective date.

                5.01    This ordinance shall take effect and be in force 30 days from and after its passage and publication.



STATEMENT OF PURPOSE:  This ordinance authorizes the issuance of general obligation revenue refunding bonds in an amount up to $7,500,000 to refund in advance of their maturity bonds issued by the city in 1994 to finance the Imax® dome theater project. The principal and interest on the refunding bonds will be paid from net revenues of the DECC facilities, with the city's pledge of its full faith and credit as a secondary pledge to secure repayment of the bonds.