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HomeMy WebLinkAboutA016 - Letter from Dorsey & Whitney dated April 28, 1995 - approving opinionPROFESSIONAL LIMITED LIABILITY PARTNERSHIP DES MOINES *ESIPFNr ArMPNEYS 801 GRAND, SUITE 3900 DES MOINES, IOWA 50309-2790 ROBERT H. HELMICK (515) 283-1000 DAVID L. CLAY POOL R013ERT E. JOSTEN FAX (515) 283-1060 EDWIN N. McINTOSH NORENE D. JACOBS DENNIS W. JOHNSON STEVE24 J. DICKINSON JEFFREY M. HURLBURT DAVID D. OROSSHLAUS April 28, 1995 Ms. Evelyn Marcano Harris Trust & Savings Bank 111 W. Monroe Street Chicago, IL 60603 MINNEAPOLIS, MINNESOTA NEW YORE, NEW YORK WASHINGTON, D. C. DENVER, COLORADO FARGO, NORTH DAKOTA ROCRESTER,MINNESOTA BILLINGS, MONTANA GREAT FALLS, MONTANA MISSOULA, MONTANA OFANOE COUNTY, CA LONDON, ENGLAND B RUSSELS, BELGIUM Re: Ames, Iowa $10,035,000 General Obligation Corporate Purpose Bonds, Series 1995 Our File No. 419370-15 Dear Evelyn: We have prepared and enclose our final approving opinion covering the captioned Bonds, dated as of May 2nd, the day of closing. Also enclosed is the City's Final Delivery and Non -arbitrage Certificate dated as of closing and showing an accrued interest amount of $1,416.72. We understand that you will wire transfer the net settlement funds to the City in the total amount of $9,835,920.72 on May 2nd, as outlined in Barbara R. Gilles' letter of April 13th. On the day of closing, please telephone our office to confirm with us that the closing is taking place as scheduled and so that we may authorize the release of our opinion and the Bonds. If for any reason the closing will not take place on May 2nd, please notify our office as soon as possible. When you telephone, you may speak to jeane Harrison or me. Page 2 If you should have any questions or if there is anything we can do to be of assistance, please do not hesitate to let us know. Sincerely yours, Z I Robert H. elmick RHH:cdm Ames/419370-15/Clos Ur Enclosures cc: Steven Schainker Alice Carroll John Klaus Sandra Ryan Dave Dirks Deborah Nistler DES)VOINiS RESIDENT ArroRmrs ROBERT H. HELMICK DAVID L. CLAYPOOL ROBERT E. JOSTEN EDWIN N. McINTOSH NORENE D. JACOBS DENNIS W. JOHNSON STEVEN J. DICKINSON JEFFREY M. HURLBURT DAVID D. GROSSHLAUS DoiRSEY & WHITNEY PROFESSIONAL LIMITED LIABILITY PARTNERSHIP 801 GRAND, SUITE 3900 DES MOINES, IOWA 50309-2790 (515) 283-1000 FAX (515) 283-1060 May 2,1995 MINNEAPOLIS, MINNESOTA NEW YORH,NEW YORE WA S H INGTON, D. C. DEN-VER,COLORADO FAROO,NORTH DAKOTA ROCHESTER, MINNESOTA BILLINGS, MONTANA GREAT FALLS, MONTANA MISSOULA, MONTANA ORANGE COUNTY, CA LONDON, ENGLAND B RUSSELS, BELGIUM We hereby certify that we have examined a certified copy of the proceedings of the City Council of the City of Ames, in the County of Story, State of Iowa (the "Issuer"), passed preliminary to the issue by the Issuer of its $10,035,000 General Obligation Corporate Purpose Bonds, Series 1995 (the "Bonds"), dated May 1, 1995, in the denomination of $5,000 each, or any integral multiple thereof, maturing on June 1 in each of the respective years and in the principal amounts and bearing interest payable semiannually, commencing December 1, 1995, at the respective rates, as follows: Principal Interest Rate Year Amount Per Annum 1996 $715,000 4.85% 1997 $715,000 4.90% 1998 $715,000 5% 1999 $715,000 5% 2000 $715,000 5% 2001 $715,000 5% 2002 $715,000 5% 2003 $720,000 5.10% Principal Interest Rate Year Amount Per Annurn 2004 $720,000 5.10% 2005 $720,000 5.20% 2006 $720,000 5.25% 2007 $720,000 5.25% 2008 $480,000 5.25% 2009 $475,000 5.25% 2010 $475,000 5.25% but the Bonds maturing in each of the years 2004 to 2010, inclusive, are subject to redemption prior to maturity at the times and on the terms specified in the Bonds. Based upon our examination, we are of the opinion, as of the date hereof, that: 1. The aforementioned proceedings show lawful authority for such issue under the laws of the State of Iowa. 2. The Bonds are valid and binding general obligations of the Issuer. Page 2 3. All taxable property within the corporate boundaries of the Issuer is subject to the levy of taxes to pay the principal of and interest on the Bonds without constitutional or statutory limitation as to rate or amount. 4. The interest on the Bonds (including any original issue discount properly allocable to an owner thereof) is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986 (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Issuer has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. 5. The Bonds are not "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, and, therefore in the case of certain financial institutions (within the meaning of Section 265(b)(5) of the Code), a deduction is not allowed for any of that portion of such financial institutions' interest expense allocable to interest on the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable, and their enforcement may also be subject to the exercise of judicial discretion in appropriate cases. DORSEY & WHITNEY P.L.L.P.