HomeMy WebLinkAboutA011 - Letter from Dorsey & Whitney dated September 26, 2016 - bond counsel opinion 00RSEY-
DORSEY & WHITNEY I_L.P
September 26,2016
Vicky Ossoinik
Robert W. Baird&Co., Inc.
777 E. Wisconsin Avenue,25"'Floor
Milwaukee, WI 53202
Re: Ames,Iowa
$11,650,000 General Obligation Corporate Purpose and Refunding Bonds, Series 2016A
Our File No. 419370-56
Dear Vicky:
We have prepared and enclose our bond counsel opinion covering the City of Ames, Iowa
General Obligation Corporate Purpose and Refunding Bonds, Series 2016A, issue, which is scheduled to
close on September 27, 2016.
Also enclosed are three original copies of the Loan Agreement which have been signed on behalf
of the City. Please sign and return two fully executed original copies to us for our file and for the City's
records.
Finally, enclosed are three original copies of the Certificate of the Underwriter. Please sign and
return two original copies to us.
A copy of the transcript will be sent to you by email.
V& truly yours,
Je'
Robert E. Josten
Enclosures
cc by email: City of Ames
PFM Financial Advisors, LLC
DORSEY & WHITNEY LLP • ATTORNEYS AT LAW • WWW.DORSEY.COM •T 515.283.1000
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GORSEY"
DORSLY & w111 I Nr:.Y i.1-1
September 27, 2016
City of Ames Robert W. Baird& Co, Inc.
Ames, Iowa Milwaukee, Wisconsin
We hereby certify that we have examined certified copies of the proceedings (the
"Proceedings") of the City Council of the City of Ames (the "Issuer"), in Story County, Iowa,
passed preliminary to the issue by the Issuer of its General Obligation Corporate Purpose and
Refunding Bonds, Series 2016A (the "Bonds") in the amount of$11,650,000, dated September
27, 2016, in the denomination of$5,000 each, or any integral multiple thereof, in accordance
with a loan agreement dated as of September 27, 2016 (the "Loan Agreement"), and pursuant to
a resolution adopted by the Issuer on September 13, 2016 (the "Resolution"). The Bonds mature
on June 1 in each of the respective years and in the principal amounts and bear interest payable
semiannually, commencing June 1, 2017, at the respective rates as follows:
Principal Interest Rate Principal Interest Rate
Year Amount Per Annum Year Amount Per Annum
2017 $1,270,000 2.00% 2023 $740,000 2.00%
2018 $1,340,000 5.00% 2024 $750,000 3.00%
2019 $1,410,000 5.00% 2025 $775,000 3.00%
2020 $1,480,000 5.00% 2026 $800,000 3.00%
2021 $ 700,000 3.00% 2027 $825,000 3.00%
2022 $ 715,000 3.00% 2028 $845,000 2.00%
but the Bonds maturing in each of the years 2025 to 2028, inclusive, are subject to redemption
prior to maturity on June 1, 2024 or any date thereafter, upon terms of par and accrued interest.
Based upon our examination, we are of the opinion, as of the date hereof, that:
1. The Proceedings show lawful authority for such issue under the laws of the State
of Iowa.
2. The Bonds and the Loan Agreement are valid and binding general obligations of
the Issuer.
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
DORSEY & WHITNEY LLP • ATTORNEYS AT LAW • WWW.DORSEY.COM •T 515.283.1000
F 515,283.1060 • 801 GRAND • SUITE 4100 • DES MOINES, IOWA 50309-8002
USA CANAr3A EUROPE ASIA-PACIFIC
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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.
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 LL
,/Aj-
DORSEY&WHITNEY LLP