HRA RES 1985-21 - 000137621
RFSCLUTION N0. HRA 21 - 1985
A RFSQ,UTION RDQUFSTIIVG 7HE QTY OF FRIDLEY TO ISSUE ITS
$11�550�000 VARIP�BLE RATE DEMAND GENERAL OBLIGATION TAX
INCREMENT BONDS AND APPROVING AND AUTHORIZING THE
EXEQTTION OF A TAX IIdCRII�FP PLIDGE PGREET�[�7'I'
IT IS HEREBY RESOLVED by the Board of Commissoners (the "Boara") of the
Housing and Redevelopnent Authority in and for the City of Fric7ley, bTinnesota
(the "Authority") as follavs:
1. The Authority has undertaken or will undertake, pur5uant to and in
wnforniity with't�Yinnesota Statutes, Sections 462.411 et sea., the public
imprwan�its listed in the attached Exhibit A within anc3 for the bertefit of
the Authority's Redevelopnent Pro7ect No. 1.
2. It is necessary in the soimd financial mar�agernent of the Authority that
bonds be issued to finance the above mentioned inprovements, and for such
pur�oses the Authority herehy requests the City cf Friclley, rYinnesat�, to
issue its $11,550,000 Vanahle Itate Demand Gener�l Oblir�ation Tax Incr�aent
Bonds (the "Bonds").
3. The Tax Increr�ent Pledge Agreanent attachec7 hereto and made a�rt hereof
' is hereby apprwed, asid the officers of the Authority are hereby �uthorizeci
artd directed to take such ste�s as may 6e necessaxy to execute saiu ac�reenent,
in substantially the form as attached, u�on approval ancz execution thereaf by
the City ann upon the issuance of the Bonas by the City, and to carry out and
fulfill the prwisions and requirenents of the Tax Iricrc�ner.t Pledae Iagreanent.
PASSED AND AIAFrID BY THE FRILI,EY HOUSING AND REDEVEI,OPN1EbTT AUTHGRITY TfiIS
127fi DAY OF DEC��NBER� 1985
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L1�7RE[i7CE R. C1�PMJIERS - QIAIRt�11V
ATPEST :
�'�'�i.:u Y'�� l � -�-.,
NASIM M. QURFSHI - DIREG�ll7R
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This Tax Incranent Pledge Agreenent (the "Agreanent") is daten as of December
1, 1985; is by ancl between the City of Fridley, Mirmesota (the "City"), and
the Housing and Redeveloranent Authority in and for the City of Fxidley,
Nl�nnesota (the "Authority"); ano prwides as follaws:
R'HEREAS. the City Council has adoptec� a resolution (the "BOnd Resolution")
awarding the sale of the City's $11,550,000 Variable Rate Uemand Geueral
Obligation Tax Incranent Bonds, datec3 as of the date ef delivery thereof (the
"Boncas"), to provide financing for certain public ini�rovements (the
"Imgrovenents") made or to be made with respect to the Authority's
Recsevelopnent Pro7ect No. 1; and
WHEREAS, to pravide funcis sufficient for the tinely payrnent of the debt
service on the Bonds, it is necessary for the Authority and the City to enter
into this agreenent.
NOW, THEREFOkE, BE IT RESOLVED in consi�ler�ticn of the covenants and
agreements hereof between the City and the F�uthority, and pursuant to
Minnesota Statutes, Section 273.77(a), the City anc the Authority hereby agree
as follaas:
YEAP, ANDUIVrl'
1988 $ 20,000
1989 25,000
1990 35,000
1991 75,000
1992 125,000
1993 175,000
1994 215,000
1995 225,000
1596 340,000
1497 400,000
1998 565,000
1999 625,000
2000 1,090,Q00
2. In orc3er to �y the prir.icpal of and interest or� the Bonds, when due,
Authority hereby pledges to the City, for de�osit in the Debt SeLV ice Account
established by the Bond Resolution for the �ayment of the Sonds, «nc� the
Authority sha11 �y to the City, tax increnents clericecl by the Authority from
its Tax Incranent Firancing District Nos. 1 through 6, inclusive (excegt to
the e�ent such tax incranents have been heretofore gledged to other purposes,
inclaciing without limitation the Authority's 54,070,QOD 'I`ax Incranent Revenue
' Bonds of 1985, dated May 1. 1985, ano except to the extent that tax incranents
to g�raora�ti 3 of this Agreenent, othenaise plefiged), in amounts sufticient to
�y such princiFal ana interest anq, � necessaty, the Fvrchase Price tt�ereaf
(as aefir�d in the Trust Intlenture respecting such BonGs), wheri uue, and, to
the e�ctent such tax incranents are ever insufficient f or such purposes, and
the City, pursuant to the Bona Resolution, aovances City funds to provide
prcmpt and full Fayment of the Bonds, the Autharity agrees to reimburse the
City for such aa'vances from such tax increments, when collecte�� by the
Authority. With respect to such tax increnents receivec� by the Autharity in
Page 2- Tax Increnent Pledge Agreanent
any calencar year, the Authority shall p3y the same over to the City pursuant
' to this Agreenent on the assianption that the Eon�s bear interest at the rate
of 1D� per ar.nwn, but to the extent that the forec,oing asswnption results in
excess increnents for interst on said Bonds in the Debt Service Account at the
canclusion of said calencaar year, the �nount of tax incr�lents requ�.rea to be
Faia to the City in the following year pursuant to tPiis senterrce shall be
reauced by said amowit.
3. In each calendar year, the tax incre�nents which the Authority sha11
receive iri that calendar year frcm its Tax Incranent Finarrcing District No. 6
shall be applied in the follaainy priority:
{a) First, to �y tiie princip�l ar:d interest �yable in such ca1 enuar year
on the District 6 Bonds, and for this pur�:ose. �ny prior reaemptions of
the Bonds shall be deaned to be a redemption of the Uistrict 6 Bonds only
�f an�i to the extent that such redemption is made with proceeds of the
District 6 Bonds which were not eacpended for the purposes far which thE
District 6 Bonds were issued;
(b) Seconol, to pay the amounts payable ir! such calendar year cr� the
Authority's $5,603,755.80 Limited Revenue C.'a�ital Appreciate Tax Incr erent
Note (the "Capital �lppreciation Note");
(c) Third, to pre�y the District 6 Bonds, to the eA-tent that such Bonds
are prep�yable in that calendar year;
' (d) Fourth, to pre�ay the Ca�.ital Appreciation Note, to the exterrt such
Note are �re�ayable in that calendar year;
(e) Fiith, to compensate fc,r ary shortfall of tax increments pledged to
the Bonos �ursuant to gsragra�.h 2 hereof;
(f) Sixth, and finally, for application to any other xrurpose whlch tYie
Putharity, in its sole discretion, may determine.
4. An execute� coP3 of this Agreanent shall be f�] ed with the County Auditor
of Anoka CoL;nty, as required by Minraesota Statutes, Sectwn 273.77(a).
5. This agreement shall become effective u�.r,n the actual i�.suznce anc�
delivery of the Bonos.
IN WITNFSS WHII2EOF, the City and the Authority have causec7 this Agreesnent to
be duly executed as of tYie day and year first above wrxtten.
CITY OF FRIIH,EY, NIINNESO`IF
Its Nlayor
Its City N��nayer
, FITTFST:
City Qerk
(SEAL)
i'age 3- Tax Increnent Pleolge Agreenent
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FIO[TS G AND RIDEVELOPMENT
A[1�I ki IL+t [�ND 'HE��CITY
C�Y�` I��r MI ��'
�/'(,,G�,�.�n.�,i�' �. ���Z�H,�,c�%
Its Chai nnan
By _ _
Its Secretaxy
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Re: $11,550,000 Variable Rate Demand General Oblic�atian Tax Ir�craaent Bonds
of the City of Fridley, Minnesota
Pro7ect Expendltures:
Tax Increnent Financing District No. 1
(Lundgren Pro�ect):
Land Aoquisition and Construction
of Parking Facilities
Tax Incrc3nent Firanciny Uistrict No. 6
(100 7Win Yro�ect):
Soil c�rrections, street imprwenents,
walkways, drainage, lightir.g, ana lara�-
scaping
General Pro7ect Activities within
Redevelopnent Pro�ect No. 1:
Street and inter�ction imprwanents,
walkways, lighting, soil corrections,
drainage, and landsca�,ing
Subtotal
Contingencies
(apitalized Interest
Debt Sexvlce Reserve
Creclit/Licquic]ity Cost/
PlacanEnt Fee
Is�uance Costs
Undenariter's Discount
2DTAL B�ID ISSUE
$ 1,200,000
2,440,000
$ 3,420,000
$ 7,060,000
147,799
2,313,101
I,732,500
121,100
60,000
115,500
$11,550,000