HomeMy WebLinkAboutA020 - Letter from Dorsey & Whitney dated November 7, 2007 - final approving opinionI
November 7, 2007
Mr. Mark St. Dennis
Piper Jaffray & CV
800 Nicollet Mall, J13S05
Minneapolis, MN 55402
Re: City of Ames, Iowa
$9,630,000 General Obligation Corporate Purpose Bonds
Our File No. 419370-35
Dear Mark:
K
NITY OF AMR
FIS, mw��
We have prepared and enclose our final approving opinion covering the November 9, 2007
closing of the City of Ames General Obfigatioti Corporate Purpose Bond issue.
We are also enclosing a copy of the transcript for your file.
On the day of' closing, after we have received confirmation that the settlement funds have been
received on behalf of the City, we will notify you and Bankers Trust Corripany to close this Issue With
DTC.
Very truly YOU S,
obe E -t . J osten
REJ:cf
Ames/419370-35/Closing F-tr
E'nclosurcs
cc: Diane R. Voss
Duane Pitcher
Tionna Reed Pooler
DOR'SFY & WH I T'N[-.Y [J P - A I FOPNPYS A FLAW - WWW.D0RS[Y.('.0M - T 515 )811000
F 515.283. 1060 - 80 1 GRAND - SUIFF 3C)00 - DES MOINFS. IOWA 50309-2790
L) S A CA, " A C) ^ EL1RC3PE: A, S 1A,
N
I
November 9, 2007
We hereby certify that we have examined a certified copy of the proceedings of the City Council
of the City of Ames, in Story County, State of Iowa (the "Issuer"), passed preliminary to the
issue by the Issuer of its General Obligation Corporate Purpose Bonds, Series 2007A (the
"Bonds"), in the amount of $9,630,000, dated November 1, 2007, in the denomination of $5,000
each, or any integral multiple thereof, maturing on June I in each of the respective years and in.
the principal amounts and bearing interest payable semiannually, commencing June 1, 2008, at
the respective rates, as follows:
Principal
Interest Rate
Principal
Interest Rate
Year
Amount
Per AnnUrn
Year
Amount
Per Annum
2008
$245,000
3.75%
2014
$ 840,000
3.75%
2009
$685,000
3.7 5 'Xo
2015
$ 880,00()
3.75%
2010
$715,000
3.75%
2016
$ 920,000
3.75%
2011
$745,000
3.7 5 (Vo
2017
$ 960,000
3.75%
2012
$775,000
3.75%
2018
$1,005,000
3.7 5 (N)
2013
$805,000
3.75%
2019
$1,055,000
3.75%
1)Llt the Bonds maturing in each of the years 2016 to 2019, inclusive, are subject to rcdcrnptlon
prior to maturity at the times and on the terms speci tied 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.
3. All taxable property within the corporate boundaries of the Issuer is subject to the
](.,vy of taxes to pay the principal of and interest oil the Bonds without constitutional or statutory
hrintation as to rate or amount.
4. The interest on the Bonds (including any original issue diSCOLlut proper]),
allocable to an owner thereof) is excluded from gross income for federal incorne 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
DORSEY & WHITNEY [._I P - ATTORNEYS AT LAW - WWW.I)ORSEY.COM - T 515.283.1000
F 515.283.1060 - 801 GRAND - SUITE 3900 - DES MOINES. IOWA 50309-2790
USA, C,-."AE)A EURMF-E ^SIA
R
Page 2
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 "qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Code. The opinion set forth in the preceding sentence is subject to the
condition that the Issuer comply with all requirements of the Code that must be satisfied
subsequent to the issuance of the Bonds in order that the Bonds be, or continue to be, qualified
tax-exempt obligations. The Issuer has covenanted to comply with each such requirement.
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 i ect to the exercise of judicial discretion in appropriate cases.
DORSEY & WHITNT"Y LLP
DORSEY 6 WHITNEY LLP