HomeMy WebLinkAbout17- Tax Increment Urban Renewal Revenue Bond, Series 2017 - Northeast Urban Renewal District (SPECIMEN) UNITED STATES OF AMERICA
STATE OF MONTANA
COUNTY OF GALLATIN
CITY OF BOZEMAN
TAX INCREMENT URBAN RENEWAL REVENUE BOND, SERIES 2017
(NORTHEAST URBAN RENEWAL DISTRICT)
No. R-1 $1,446,000.00
hiterest Rate Final Maturity Date Date of Original Issue
4.10% July 1, 2042 July 20, 2017
REGISTERED HOLDER: Big Sky Western Bank
P.O. Box 667
Bozeman, MT 598771-0667
Tax Identification No. 81-0251125
PRINCIPAL AMOUNT: ONE MILLION FOUR HUNDRED FORTY-SIX THOUSAND
DOLLARS AND NO/100
FOR VALUE RECEIVED, THE CITY OF BOZEMAN, MONTANA (the "City"), a
duly organized municipal corporation, acknowledges itself to be specially indebted and hereby
promises to pay in installments over time to the registered holder specified above or registered
assigns, solely from the Tax Increment received by the City from Taxable Property in the District
which has been pledged and appropriated for the payment hereof as stated below, the principal
amount specified above, which will be advanced to the City in two advances, with one advance
in the amount of $863,000 made on the date hereof, and a second advance in the amount of
$583,000 to be made on July 20, 2018, together with interest on the principal amount advanced
from and after the date of each advance at the rate of 4.10% per annum. The principal of and
interest on this Series 2017 Bond shall be payable in the amounts and on the respective dates
reflected in the Amortization Schedule attached as Schedule I to this Series 2017 Bond. This
Series 2017 Bond bears interest on the Outstanding principal amount from the date of original
issue specified above, or from such later date to which interest has been paid or duly provided
for, until paid or discharged at the rate per annum specified above. [Interest on this Series 2017
Bond shall be calculated on the basis of a year of 360 days composed of twelve 30-day months.]
Principal of and interest on this Series 2017 Bond shall be payable by check or draft of the
Registrar mailed to the registered owner hereof as such appears in the Bond Register as of the
close of business on the 15th day (whether or not a Business Day) of the month immediately
preceding each payment date or immediately preceding a redemption date;pro>ided that the final
installment of principal (whether at maturity or earlier redemption) shall be drawn on the
Registrar only upon presentation and surrender of this Series 2017 Bond at the office of the
Registrar. Until a successor may be appointed, the City Treasurer shall serve as Registrar.
Principal and interest on this Series 2017 Bond are payable in lawful money of the United States
of America.
This Series 2017 Bond is a duly authorized issue of the City designated as "Tax
Increment Urban Renewal Revenue Bond, Series 2017 (Northeast Urban Renewal District)" (the
"Series 2017 Bond") issued and to be issued under Resolution No. 4801, adopted by the City
Commission on May 22, 2017 (as amended or supplemented in accordance with the provisions
thereof, the "Resolution"), to which Resolution (copies of which are on file with the City)
reference is hereby made for a description of the nature and extent of the security, the respective
rights thereunder of the registered owner of this Series 2017 Bond and the City and the terms
upon which this Series 2017 Bond is issued and delivered. Capitalized terns used herein but not
otherwise defined shall have the respective meanings given such terms in the Resolution. This
Series 2017 Bond is issued by the City for the purpose of financing a portion of the cost of urban
renewal projects within the City of Bozeman Northeast Urban Renewal District (the "District"),
thereby assisting activities in the public interest and for the public welfare of the City. This
Series 2017 Bond is payable and secured ratably and equally and on a parity with any additional
parity Bonds hereafter issued pursuant to the Resolution.
This Series 2017 Bond is issued pursuant to and in full compliance with the Constitution
and laws of the State of Montana, particularly Montana Code Annotated, Title 7, Chapter 15,
Parts 42 and 43, as amended (the "Act"), and pursuant to the Resolution. This Series 2017 Bond
is payable solely from Tax Increment received by the City and resulting from the extension of ad
valorem taxes levied by certain Taxing Bodies against the incremental taxable value of Taxable
Property within the District pursuant to the Act, except that under certain conditions as described
in the Resolution, this Series 2017 Bond may be payable from replacement revenues, if any,
provided in the event of the abolition or substantial elimination of property taxation in Montana.
This Series 2017 Bond is also payable from amounts available in the Reserve Account, as
described more particularly in Section 5.05 of the Resolution.
This Series 2017 Bond is not a general obligation of the City and the City's general
credit and taxing powers are not pledged to the payment of this Series 2017 Bond or the
interest hereon. This Series 2017 Bond shall not constitute an indebtedness of the City
within the meaning of any constitutional or statutory limitations.
This Series 2017 Bond shall be subject to redemption at the option of the City, at any
time and from time to time, in whole or in part, at a price equal to the principal amount thereof to
be redeemed plus interest accrued to the Redemption Date, without premium. The Redemption
Date and the principal amount of this Series 2017 Bond to be redeemed shall be fixed by the City
who shall give notice thereof to the Registrar at least 45 days prior to the Redemption Date or
such lesser period as the Registrar accepts; provided that no such additional notice to the
Registrar is required if the Registrar continues to be the City Treasurer. The Registrar, at least
30 days prior to the designated Redemption Date, shall cause notice of redemption to be mailed,
by first class mail to the Owner of each Series 2017 Bond to be redeemed at its address as it
appears on the Bond Register, but no defect in or failure to give such mailed notice shall affect
the validity of proceedings for the redemption of the Series 2017 Bond not affected by such
defect or failure. The notice of redemption shall specify the Redemption Date, Redemption
Price, and the place at which the Series 2017 Bond, if redeemed and prepaid in full, is to be
surrendered for payment. and. if redeemed and prepaid in part, the total principal amount of the
Series 2017 Bond to be redeemed and prepaid in part and the principal amounts on each Stated
Maturity that comprise the total partial prepayment and redemption amount. Official notice of
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redemption having been given as aforesaid, the Series 2017 Bond or portion thereof so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified and from and after such date (unless the City shall default in the payment of the
Redemption Price) such Series 2017 Bond or portion thereof shall cease to be payable and bear
interest.
If the Series 2017 Bond is prepaid in part, the then-registered Owner of the Series 2017
Bond will reamortize the principal remaining upon redemption and prepayment as a result of and
in accordance with the prepayment notice of the City at the interest rate over the then-remaining
term. So long as the Series 2017 Bond is held by one registered owner, upon partial redemption
and prepayment there shall be no need to exchange a new bond for the unredeemed portion of
the existing bond; provided that the amortization schedule attached hereto as Schedule I shall be
replaced by an amortization schedule reflecting the reamortization of the principal then
outstanding in the manner described above.
The registered owner of this Series 2017 Bond,-shall have no right to enforce the
provisions of the Resolution, or to institute action to enforce the covenants therein or take any
action with respect to a default under the Resolution or to institute, appear.in or defend any suit
or other procedure with respect thereto except as provided in the Resolution.
This Series 2017 Bond is a negotiable instrument as provided in the Montana Uniform
Commercial Code. As provided in the Resolution and subject to certain limitations set forth
therein, this Series 2017 Bond is transferable upon the books of the City at the principal
corporate trust office of the Registrar, by the registered owner hereof in person or by his attorney
duly authorized in writing, upon surrender hereof together with a written instrument of transfer
satisfactory to the Registrar, duly executed by the registered owner or his attorney; and may also
be surrendered in exchange for another Series 2017 Bond of a like aggregate principal amount,
interest rate and maturity. Upon such transfer or exchange, the City will cause a new Series
2017 Bond to be issued in the name of the transferee or registered owner, of the same aggregate
principal amount, bearing interest at the same rate and maturing on the same date, subject to
reimbursement for any tax, fee or governmental charge required to be paid with respect to such
transfer or exchange.
The City and the Registrar may deem and treat the Person in whose name this Series
2017 Bond is registered as the absolute owner hereof, whether this Series 2017 Bond is overdue
or not, for the purpose of receiving payment and for all other purposes, and neither the City nor
the Registrar shall be affected by any notice to the contrary.
This Series 2017 Bond has been designated by the City as a "qualified tax-exempt
obligation"pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Montana and ordinances and resolutions of
the City to be done, to exist, to happen and to be performed in order to make this Series 2017
Bond a valid and binding special, limited obligation of the City in accordance with its terms have
been done, do exist, have happened and have been performed as so required; that this Series
2017 Bond has been issued by the City in connection with an urban renewal project (as defined
in the Act); that the City, in and by the Resolution, has validly made and entered into covenants
and agreements with and for the benefit of the registered owners from time to time of all Bonds
issued thereunder, including covenants that it will pledge, appropriate and credit the Tax
Increment to the Tax Increment Debt Service Account of the City; that Additional Bonds may be
issued and made payable from the Tax Increment Debt Service Account on a parity with this
Series 2017 Bond upon certain conditions set forth in the Resolution, but no obligation will be
otherwise incurred and made payable from Tax Increment, unless the lien thereof shall be
expressly made subordinate to the lien of this Series 2017 Bond on the Tax Increment; that all
provisions for the security of the registered owners of the Bonds as set forth in the Resolution
will be punctually and faithfully performed as therein stipulated; and that the issuance of this
Series 2017 Bond does not cause the obligations of the City to exceed any constitutional or
statutory limitation of indebtedness.
This Series 2017 Bond shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Resolution until the Certificate of Authentication
hereon shall have been executed by the Registrar by the manual signature of an authorized
representative.
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IN WITNESS WHEREOF, the City of Bozeman, Montana, by its City Commission, has
caused this Series 2017 Bond to be executed by the signatures of the Mayor, Assistant City
Manager, and the City Clerk and has caused the official seal of the Borrower to be affixed
hereto, and has caused this Bond to be dated as of the 20th day of July, 2017.
CITY OF BOZEMAN, MONTANA
Mayor
(SEAL)
Assistant City Manager
City Clerk
Dated: July 20, 2017
CERTIFICATE OF AUTHENTICATION
This Bond is the Tax Increment Urban Renewal Revenue Bond, Series 2017 (Northeast
Urban Renewal District) delivered pursuant to the Resolution mentioned within.
CITY TREASURER,
as Bond Registrar, Transfer
Agent and Paying Agent
By
Authorized Representative
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The following abbreviations, when used in the inscription on the face of this Bond, shall be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants UTMA............Custodian.....................
in common (Cust) (Minor)
TEN ENT -- as tenants
by the entireties
under Uniform Gifts to
JT TEN -- as joint tenants Minor Act............................................
with right of (State)
survivorship and
not as tenants in
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto
the within Bond and,all rights thereunder, and hereby
irrevocably constitutes and appoints attorney to transfer the within
Bond on the books kept for registration thereof, with full power of substitution in the premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER NOTICE: The signature to this assignment
OF ASSIGNEE: must correspond with the name as it appears
upon the face of the within Bond in every
particular, without alteration, enlargement
or any change whatsoever.
SIGNATURE GUARANTEED
Signature(s)must be guaranteed by an'`eligible
guarantor institution'meeting the requirements of the
Registrar. which requirements include membership or
participation in STAMP or such other"signature
guaranty program"as may be determined by the
Registrar in addition to or in substitution for STAMP_all
in accordance with the Securities Exchange Act of 1934.
as amended.
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SCHEDULEI
AMORTIZATION SCHEDULE
4.10%
Date ADVANCES Interest Principal Total Payment Balance
07/20/17 863,000.00 863,000.00
O1/01/18 1 15,995.05 30,004.95 46,000.00 832,995.05
07/01/18 2 16,936.04 29,063.96 46,000.00 803,931.09
07/20/18 583,000.00 1,386,931.09
O1/01/19 3 27,421.51 18,578.49 46,000.00 1,368,352.60
07/01/19 4 27,820.67 18,179.33 46,000.00 1,350,173.27
O1/01/20 5 27,906.05 18,093.95 46,000.00 1,332,079.32
07/01/20 6 27,158.40 18,841.60 46,000.00 1,313,237.72 '..
O1/01/21 7 27,068.48 18,931.52 46,000.00 1,294,306.20 '....
07/O1/21 8 26,315.20 19,684.80 46,000.00 1,274,621.40
01/01/22 9 26,344.50 19,655.50 46,000.00 1,254,965.90
07/01/22 10 25,515.35 20,494.65 46,000.00 1,234,481.25
O1/01/23 11 25,514.871 20,485.13 46,000.00 1,213,996,12
07/O1/23 12 24,682.37 21,317.63 46,000.00 1,192,678.49,
01/O1/24 13 24,650.87 21,349.13 46,000.00 1,171,329.36
07/01/24 14 23,881.04 22,118.96 46,000.00 1,149,210.40
O1/O1/25 15 23,687.55 22,312.45 46,000.00 1,126,897.95
07/01/25 16 22,911.53 23,098.47 46,000.00 1,103,809.48,
O1/01/26 17 22,814.08 23,185.92 46,000.00 1,080,623.56.
07/O1/26 18 21,970.71 24,029.29 46,000.00 1,056,59427
01/01/27 19 21,838.21 24,161.79 46,000.00 1,032,432.48
07/01/27 20 20,990A1 25,009.09 46,000.00 1,007,423.39
O11O1128 21 20,821.92 25,178.08 46,000.00 982,245.31
07/O1/28 22 20,026.00 25,974.00 46,000.00 956,271.31
O1/O1/29 23 19,710.69 26,289.31 46,000.00 929,982.00
07/O1/29 24 18,907.94 27,092.06 46,000.00 902,889.94
O1/01/30 25 18,661.37 27,338.63 46,000.00 975,551.31
07/01/30 26 17,801.28 28,198.72 46,000.00 847,352.59
01/O1/31 27 17,513.56 28,496.50 46,000.00 818,866.09
07/O1/31 28 16,648.78 29,351.22 46,000.00 789,514.87
01/O1/32 29 16,318.08 29,681.92 46,000.00 759,832.95
07/01/32 30 15,491.46 30,508.54 46,000.00 729,324.41
O1101/33 31 15,032.85 30,967.15 46,000.00 698,357.26
07/O1/33 32 14,198.66 31,801.34 46,000.00 666,555.92
O1/01/34 33 13,776.71 32,223.29 46,000.00 634,332.63
07/01/34 34 12,896.94 33,103.06 46,000.00 601,229.57
O1/01/35 35 12,426.51 33,573.49 46,000.00 567,656.08
07/01/35 36 11,541.30 34,458.70 46,000.00 533,197.38
O1101/36 37 11,020.39 34,979.61 46,000.00 498,217.77
07/01/36 38 10,157.65 35,842.35 46,000.00 462,375.42
O1/01/37 39 9,530.49 36,469.51 46,000.00 425,905.91
07/O1/37 40 8,659.31 37,340.69 46,000.00 388,565.22
01/01/38 41 8,031.06 37,968.94 46,000.00 350,59628
07/01/38 42 7,128.15 38,871.85 46,000.00 311,724.43
01/01/39 43 6,442.87 39,557.13 46,000.00 272,167.30
07/01/39 44 5,533.57 40,466.43 46,000.00 231,700.87
O1/O1/40 45 4,788.91 41,211.09 46,000.00 190,489.78
07/01/40 46 3,883.70 42,116.30 46,000.00 148,373.48
O1/01/41 47 3,058.28 42,941.72 46,000.00 105,431.76
07/01/41 48 2,143.59 43,856.41 46,000.00 61,575.35
O1/01/42 49 1,272.67 44,727.33 46,000.00 16,848.02
07/O1/42 50 342.55 16,848.02 17,190.57 0.00
TOTALS 1,446,000.001 1825,190.57 1,446,000.00 2,271,190.57
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