In addition to the powers contained in section 458A.32, the city upon request of the authority shall have the power to issue general obligation bonds for any of the following purposes:
(1) to purchase, construct, or equip terminal facilities, maintenance and garage facilities, ramps, parking areas, or similar facilities used or useful in connection with a public transit system or part thereof;
(2) to acquire, improve, extend, or reconstruct any public transit system presently operated in the city of Duluth, or any part thereof;
(3) to acquire any property or equipment useful for the construction, reconstruction, extension, improvement, or operation of any public transit system presently operated in the city of Duluth, or any part thereof;
(4) to construct and improve a new public transit system for the city of Duluth other than a presently existing transit system, and in connection therewith may exercise all the powers provided for in this section.
Obligation bonds under this section shall be issued in such amounts, but in no event to exceed the sum of $1,400,000, at such times and in such series as the authority shall determine by resolution, subject to approval and ratification by the city council of the city of Duluth, evidenced by ordinance. Except as otherwise provided by this section, the maturities, any right of prior redemption, execution, paying agency, provision for interest, or other terms of the bonds, shall be subject to the provisions of sections 475.54 to 475.56.
General obligation bonds issued under this section shall constitute a debt of the city of Duluth for which the full faith and credit of the city shall be pledged; and a tax levy shall be compelled for their payment in the manner required by chapter 475; and they shall so recite.