HRA RES 1985-08 - 00013734�
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RESQL,UTIQN N0. HRA 8— 1985
A RFSOLUTION APPROVING SALE AND PROVIDTNG FORM, TERMS,
PLEDGE OF TAX INCREMENTS AND FINDTNGS� COVENANTS AND
DIRECPIONS RELATTNG 7q TA7{ IN��'i' REUENUE B�IDS OF 1985
OF THE HWSING ADID RIDEVELOPMEDFP AU�IORITY IN ANb FOR THE
QTY OF FRIDI,EY; AI�ID AUgIORIZ7NG F�Q]TIOAI AND DEGIVERY OF
A BC1�ID PUR(IiASE AGuF��.wr� ESQ2QQ F�RF�P AND AN�7T5
`DD OOOPERP,TION PGRFFn�.nrr
RESOLVED BY THE BOARD OF COMPIISSIONERS QF THE HCUSTNG ANT� REBEVELOFNIENT
AU'iHORITY IN PTII? FOR �3E CITY OF FRIDLEY:
1. Authorizat�on, Finc7ings and Detinitions.
A, The Districts. By resolutions duly adopteci, the City of Fridley,
Minnesota (the "City") at the requeet of- the Eousing and Redevelo�ent
Futhority in and for the City of Fridley (the "AUthority") tias pursuant to
P�irulesota Statutes 462.422 through 462.716 and 273.71 through 273.86
created a redevelopnent project knam as the Redevelo�ment Pro�ect No. 1
(the "Pro�ect"j. Witriin the Pro�ect are five (5) tax increnent districts
(the "Districts"). Schedules of the real prc�erty cornprising the
Distncts frorn which Tax Incranent, as defir.ec� in Section 1.03 hereof, is
or may be derivec� are on f�1e and of record in the office of tkae Fnoka
Coimty Audttor.
E. Outstandina Bonds. To Einance public redevelo�ment costs of
Redevelognent Pro�ect No, 1 the City has heretofore issuecl its general
obligation bonds (the "Outstanding Bonds") de�cribed as follows:
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$2,200,000 General Oblia,atzon Sax Incres�2ent Reczevelo�nent
Bonds of 1981, dated as of February 1, 1981, $2,075,000
outstand�.ng ("1981 Bonc3s") .
$625,000 General Obligation Tax Incranent Reclevelpgnent Bonds
of 1982, dated as of August 1, 1982, $620,000 outstandiiig
("1982 Bonds"),
$600,000 General Obligation Tax incre�ent Redevelopnent Borids
of 1982, Series TI, dated as of November 1, 1982, $595,000
outstanding ("1982 Bonds, Series II"),
C. Additionat p�1;c �rdeveio�e*?t Costs. The Authority has deternined
that it is desirable to tmdertake additional redevelognent in the Project
and has incurred or, based on reasonable estimates, eapECts to ir�cur
Public Redevelognent Costs, within the mearaing of Niinnesota Statutes,
Chapter 462 for the follawing purposes in the following amounts, a11 which
� are to be financed by proceeds of the Bonds:
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Page 2— Resolution No. HRA 8- 1985
Purpose
Public Tntersection Improvanent
Costs
7.bta1
Pmount
$3G0,000
D. Tax Tncr�nents. At the time of crEatton of each I7istrict, the City
requested the Anoka County Auditor to certify the �ssessed �a7.ue of all
taxable property in each District as of the preceding January 2, which
assessed value as ad�usted in accordance with law applicable to tax
increment computation anci reduced by the original Assessed Val.ue
attributable to any District or portion of a �iistrict released pursuant to
Seetion 6,03 is hereinafter referred to as the "Ongina7. F�ssessec! Value".
The assessed value of all t�able property in each District arhich has not
been released pursuant to Section 6,03, as deternineclfor each year �iter
exclusion of any fiscal dis�rity commercial inciustrial assessed valuation
increase required under Nitnnesota Statut�s, Section 273.76, Subd. 3(b), is
hereinafter referred to as the "Captured Assessed Va1 ue", The agyreoate
ad valoran taxes fr�n the property in all Lis�tric;ts not releasec3 pursuant
to Section 6.03 derived by applying to tl-�e a�plicable Capturec3 Assessed
Value the �pglicable aggregate mill rate levied by all governmental
entities having authority to levy taxes on such property are collectivelp
hereinafter referred to as the "Tax Incranents". Under applicable law and
subjeet to tkte limitations thereof, the FuzolcG County Auditor is rec1uired
to �y to the Authority the Tax Increnent ior each T�istrict in each year.
E. Coox_�eration Aareement. Zhe Authority and the City are �arties to a
certain Agreanent of Cooperation dated S�pt��ber 13, 197� whereby the Tax
Increnent of certain Districts is authorized to be piec(gec] to tL-e payrnent
of Outstanding Bonds. There has been presented to the Board of
Commissioners of the �uthority a form of Asr.endrnent Agreement (the
"Amendnent") which will vnend the original Agreement oi Cooperztion in
order that the Tax Incranent of each such District w�11 be pledr�ed to the
payment of the Bonds and any Parity Oblic�ations, as c�efinect under Section
6,04, to the extPnt required hereby, sub�ect to the prior existing pledges
to the Outstancv.ny Bonds to be paid from the escrow established under
Section 4.01 hereof.
F. Authorization. Under Minnesota Statutes, Sections 273.71 through
273.86, and in �rticular Section 273.77(c), thE Authority is authorizec�
to issue and sell revenue bonds to g�y public red.evelopment w sts under
I�innesota Statutes Chapter 462 and to refund the princi�7. of and interest
on the Outstanding Bonds. Under Minnesota Statutes Section 475.67,
general ohligations of the City may be refundec? in aabance of their
redemption or maturity for the purpose of- relievinq the City of
restrictions on the application of tax increnents or for other pur�oses
authorized by law. Tt is hereby found and u�terminec� that tkfe appl.ication
of Tax Incranent is restricted by the Outstancitng Bonds and that it is in
the best interests of the City and the Authority to effectively release
the City and the Authority fran such restrictions tlArough the issuance of
the Bonds and execution of the Escrow �lgreement hereinafter c�escribed.
The provisions of this Resolution shall controT over any contrary
provisions in the By-Laws of the Authority.
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Page 3— Fesolution No. HRA 8- 1985
G. Treasurer. For all purposes of this Resolution, the �i'reasurer of the
fiuthority shall be the �'reasurer of tYae City, Such Treasurer shall
perfoim all sexvices for the Authority as are customarily performed for
the City.
2. merms and Form of the Bonds.
A. Award• The Board of Commissioners of the Authority hereby deternines
that the offer of Mtller & Schroeder h'tunici�als, Tnc. (the "Ur�derwriter")
to purchase the Bonds at a�rice of $3,947,500 plus accrued interest is a
reasonable offer and shall be and hereby is accepted. The f orm oi Sand
Purchase Agreenent proposed to be entered into between the Unciexcariter and
the �luthority is hereby approved and shall 6e executed by the Chai rnian and
Executive Director in substantially the torm on file, with such changes
therein not inconsistent with law as the officers executiny tkee same may
approve, which approval shall be conclusivel_y evidenced by the execution
thereof.
B, Bond Terms. $4,070,000 of Housing and Reclevelopnent �uthority in and
for the City of Fridley Tax Increnent Revenue Bon� oi 1985 dated May 1,
1985 (the "Bonds"), sha11 be issued in denorninations of $5,000 or any
integral multiple thereof not exceeciing the �rir�ci�l amount maturing in
any year, shall be rnanbere� from R-1 upwards in order of issuence or �ach
other order as the Bond Registrar hereinafter descri6ed may deternine.
The Bonds shall bear interest at the rates per anrnun accorcLtng to years of
maturity, paynble on August 1, 1985 and semiannually thereafter on
Februaxy 1 and August 1("Interest Payment Dates") of eacYi year and sh all
mature on February 1 of each year in the years and arnounts as follaas:
Year
1986
1987
1988
1989
1990
1991
1992
Amount
$180,000
19D,000
205,000
215.000
230.000
245.000
265,000
Interest
Rate
5.50%
6.00
6.25
6.75
7.00
7,25
7.50
Year
19J3
1994
1995
1996
1957
1598
1999
Fmount
$285,000
305,000
330,000
355,000
385,000
�20,000
460,000
Interest
Rate
7.750
8,00
8.2D
8.40
8.60
8.75
9.00
All Bonds rnaturing on or after February 1, 1996, shall be sub�ect to
redemption and prior payment in whole or in part in inverse order of
maturity and by lot within a maturity at the option of the Authority on
February 1, 1995 and any interest payment date therEafter at par and
accrued interest upon presenting satisfactory evidence to the Insurer
(definec� in Section 7.01) that sufficient funds are avulable therefer �rxc7
for all other rea,uired payments of principal o£ Gnd interest on all Bonds
and Parity Obligations, and receipt frorn t�e lnsurer of its appraval. Tn
the event of redemption by lot of Bonc;s of like maturity, the Sond
Registrar shall assign to each Bond of sucl� maturity then outstanGing a
aistinctive ntuntaer for each $5,000 of the priracip�l amount of such Sonds
and shall select by lot in the nanner it determines tYce orc�er oi numbers,
at $5,000 for each n�mil:ier, for all outstanding Bonds of like maturity.
Page 4-- P.ESOlution No, EIRA 8- 1985
The order of selection of Bonds to be recleened shall be the EoncL to which
' were assigned numbers so selected, but only so nucl� of thE �rincipal
amount of each Bond o£ a denomination oi- r��ore than $5,000 shall be
redeened as shall equal $5,000 for each nuniber assic�ned to it and so
�elected. Upon partia2 redemption of uny Bond, the same shall be
surrendered in exchange for one or more new Bonas in authorized f ors� for
the unreaeemed portion of principal. Not less then twenty (20) days
before any date on which Bonds are to be redeened, notice thereof shall be
publishecl at least once in a daily or weekly periodical publisheci in a
NIinnesota city of the first class, or its metropolitan area, which
circulates throuc,hout the State of D�innesota and furr�.i.shes fu�anci�l news
as part of its service. Notice of redemption shall also be mailed not
less than twenty (20) days prior to such red�nption to each holaer of
Bonds as reflectec� in the Bond Register; but t�o failure or defec:t iri sucl�
mailing shall affect the validity of the redemption or its eEfect, All
notices of red�nption shall state the date on which red�nption will accur,
the price payable upon redemption, the glace where reaeemed Bonds are to
be delivered, that on the date for redem�tion the reuemption �rzce
therefor �,s due and payable and interest on Bonc:s ta be so recleesned shall
on such date cease to accrue. When any Bond has been called for
red�nptian as aforesaid in acoordance herewitYy, anc1 the ��rircci�l thereof
and all interest thereon to the date of redemption have been �id or
Ueposited with the Paying Agent all interest thereon sliall cease to
accrue.
C. �eaistrar and Paying Agent. The Bonds shall be payable as tc
� princi�l upon presentation at the main office of Natianal City Bank, a
national bankzng association, in M�nnea�olis, Nv.ru�esota, as Bond Registrar
and Paying Agent, or at the offices of suct� other successor Ggents as the
�luthority may hereafter designate upon 60 days muiled notice ta the
registered owners at their registered ac�aresses. Interest shall be paicl
by check or draft mailed to the registereci owners at t.kieir addresses shown
on the registration books,
II. Bond Foxm. 7.he Bonds shall be in suhstantially tkie following fors�,
which may be printed on the face or on tlae back or �rtially on the iace
or back, with the necessary va nations as to number, CUSiF tlumber,
denanination, rate of interest ana date of maturity, tl�e bl�rilss therein to
be properly filled in, to-wit:
PASSID ADID ADOPPID BY ZY3E H�]SIIQG AND RIDEVELOPN�'J+]T AU7I30RTTY OF TF�t CITY OF
FRIDLEY THTS 9�I DAY OF MAY, 1985.
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LPSvRi�3C� CJOD�fP�RS — Q3Ia7I'��I
ATi�'ST;
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� IM M. QURESI3I — DIREC,•POR