01-0156R

RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF GENERAL OBLIGATION REFUNDING REVENUE BONDS (DULUTH ENTERTAINMENT CONVENTION CENTER/IMAX® DOME THEATER PROJECT), SERIES 2001C.

BY COUNCILOR HOGG:

        BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:

                (a)     Authorization of bonds. It is hereby found, determined, and declared to be necessary, and in the best interests of the city and its residents, that the city should issue its general obligation refunding revenue bonds (Duluth Entertainment Convention Center/Imax® dome theater project), Series 2001C, in the approximate amount of $7,040,000 pursuant to Laws of Minnesota 1999, Chapter 248, Section 21, Minnesota Statutes, Chapter 475, and Section 475.67, Subdivisions 1 through 10, and Ordinance No. 9477 approved January 29, 2001, for the purpose of refunding the city's gross revenue recreation facility bonds (Duluth Entertainment Convention Center/IMAX® dome theater project), Series 1994, dated December 1, 1994;

                (b)     Issuance and sale of bonds. The terms and conditions of the bonds and the sale thereof are set forth in the official terms of offering on file with the city clerk as Public Document No. _______. Each and all of the terms and provisions set forth in the official terms of offering are adopted and confirmed as the terms and conditions of the bonds and the sale thereof, and the city council shall meet at the time and place fixed herein to consider proposals for the purchase of the bonds;

                (c)     Competitive sale of bonds. Evensen Dodge, Inc., independent financial advisor to the city, is hereby authorized to provide the notice of the sale of the bonds in accordance with Minnesota Statutes, Section 475.60, subdivision 3, and in accordance with the official terms of offering;

                (d)     Subsequent resolution. The form, specifications and provisions for repayment of the bonds shall be set forth in a subsequent resolution of this city council.


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize the issuance of general obligation revenue refunding bonds to provide funds to refinance the city's gross revenue recreation facility bonds (Duluth Entertainment Convention Center/IMAX® dome theater project), Series 1994, dated December 1, 1994. The Duluth Entertainment Convention Center will pledge its net revenues to pay the principal and interest on the bonds. Based upon present interest rates (as of February 14, 2001), the refunding would provide net present value savings of approximately $335,626.