HRA RES 1986-11 - 00013780,
RESOLUTION N0. HRA 11 - 1986
RESOLUTION (1) REQUESTING THE CITY OF FRIDLEY TO ISSUE ITS
$10,045,000 GENERAL OBLIGATIONS TAR INCREMENT REFi7ADING
BONDS, SERTES 1986, FOR THE PURPOSE OF CROSSOVER REFUNDING
THE CITY'S $11,SSO,D00 VARIABLE RATE DEHAAiD GE]NERAL
OBLTGATIOAI TAR INCREMENT BOApDS AND (2) APPROVIAG A][�D
AUTHORIZING THE EXECIITIOAL OF A1� AMENDED TAX INCREMENT
PLEDGE AGREEMENT
IT IS HEREBY RESOLVED by the Board of Commissioners (the "Board") of the
Housing and Redevelopment Authority in and for the City of Fridley, Minnesota,
(the "Authority") as follows
1 The Authority has undertaken or wi11 undertake, pursuant to and in
conformity with Minnesota Statutes, Sections 462 411 et seq , the puUlic
improvements (the "Improvements") within and for the benefit of the
Authority's Redevelopment Project No 1 set forth in Exhibit A to that certain
Tax Increment Pledge Agreement, dated as of December l, 1985 (the "Tax
Zncrement Pledge Agreement"), executed by the Authority and the City of
Fridley, Minnesota (the "City"), in connection with the issuance of the Ser�es
1985 Bonds (hereinafter defined)
� 2 In order to finance the improvements and at the request of the Authority,
on December 30, 1985, the City issued its $11,SSD,000 Variable Rate Demand
General Obligation Tax Increment Bonds (the "Series 1985 Bonds")
3 It is necessary or desirable that the City issue, and the Authority hereby
requests that the City issue, it's $10,045,000 General Obligation Tax
Increment Refunding Bonds, Series 1986 (the "Series 1986 Bonds"), for the
purpose of crossover refunding the Series 1955 Bonds
4 The Amended Tax Increment Pledge Agreement (amending the Tax Tncrement
Pledge Agreement) attached hereto and made a part hereof is hereby approved,
and the officers of the Authority are hereby authorized and directed to take
such steps as may be necessary to execute said Agreement, in substantially the
form as attached, upon approval and execution thereof by the City and upon the
issuance of the Bonds by the City, and to carry out and fulfill the provisions
and requirements of the Amended Tax Increment Pledge Agreement
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF
FRIDLEY THIS 14TH DAY OF AUGUST, 1986 , �
•; � ^ �
st /�
� _ \---
�, � C�G��. �� �-ci� ,,�., -��-'
TARRYfGO}'IMERS, CHAIRMAN
ATTEST
' d/� -
f
NASIM M QURESHI, DIRECTOR
,
EXHIBIT A
AMF,NDED TAX INCREMF.NT PLEDGE AGREEMENT
This Amended Tax Increment Pledge Agreement (the "Agreement") is dated as of
August 1, 1486; is by and between the City of Fridley, Minnesota (the "City"),
and the Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota (the "Authority"), and provides as follows
WHEREAS, on December 16, 1985, the City Council adopted a resolution (the
"Series 1985 Bond Resolution") awarding the sale of the City`s $11,SSO,D00
Variable Rate Demand General Obligation Tax Increment Bonds, dated December
30, 1985 (the "Series 1985 Bonds"), to provide financing fox certain public
improvements (the "Improvements") made or to be made with respect to the
Authority's Redevelopment Project No l, and
WHEREAS, on August 14, 1986, it is proposed that the City Council adopt a
resolution (tha "Series 1986 Bond Resolution") authorizing the issuance of the
City's $10,045,D00 General Obligation Tax Increment Refunding Bonds, dated
August 1, 1986 (the "Series 1956 Bonds"), for the purpose of crossover
refunding the Series 1985 Bonds, and
WHEREAS, in connection with the issuance of the Series 1985 Bonds, the
, Authority and Che City entered into a certain Tax Increment Pledge Agreement,
dated as of December 1, 1985 (the "Tax Increment Pledge Agreement"), and in
connection with the issuance of the Series 1986 Bonds it is necessary to amend
and supplement the Tax Increment pledge Agreement by entering into this
Agreement to amend the pledge of tax increments made to provide £or the
payment of the debt service on the Series 1985 Bonds and to provide
appropriate pledges of tax increments for the payment of the debt service on
the Series 1986 Bonds
NOW, THEREFORE, BE IT RESOLVED in consideration of the covenants and
agreements hereof be,tween the City and the Authority, and pursuant to
Minnesota Statutes, Section 273 77 (a), the C1ty and the Authority hereby
agree as follows
1 Any capitalized term which is used but not defined in this Agreement shall
have the meaning given to that term in the Series 1986 Bond Resolution.
2 In accordance with paragraph 15 of the Series 1986 Bond Resolution,
paragraph 2 of the Tax Increment Pledge Agreement shall be amended to the
effect that the tax increments pledged therein to the payment of the Series
1985 $onds shall be the Modified Series 1985 Tax Increments
3. In order to pay the principal of the interest on the Series 1986 Bonds,
when due, the Authority hereby pledges to the City, for deposit in the Series
1986 Debt Service Fund established by Che Series 1986 Bond Resolution for the
' payment o£ the bonds, and the Authorrty shall pay to the Cit}• Pre-Crossover
Available Tax Increments and Post-Crossover Available tax Incraments at the
times, in the amounts, and for the specific purposes set forth in the Sexies
Page 2- Amended Tax Increment Pledge Agreement
' 1986 Bond Resolution, including without limitation paragraph 13 thereof, and,
to the extent such tax increments are ever insufficient for such purposes, and
the City, pursuant to the Series 1986 Bond Resolution, advances City funds to
provide prompt and full payment of the Series 1986 Sonds, the Authority agrees
to reimburse the City for such advances from such tax increments, when
collected by the Authority
4 Paragraph 3 of the Tax Increment Pledge Agreement shall be amended to
provide as follows
In each calendar year (the "Current Year"), the tax increments which Che
Authority shall receive in the prior calendar year from its Tax Increment
Financing District No 6 shall be applied in the following pnority
a First, to pay the principal and interest payable in the Current Year
on the District 6 Bonds, and for this purpose, and prior redemptions of
the Bonds shall be deemed to be a redemption of the District 6 Bonds only
if and to the extent that such redemption is made with proceeds of the
District 6 Bonds which were not expended for the purposes for which the
District 6 Bonds were issued;
b Second, to pay the amounts payable in the Current Year on the
Authority's $5,603,755 80 Limited Revenue Capital Appreciation Tax
Increment Note (the "Capital Appreciation Note"), and
' c Third, to prepay the District 6 Bonds, to the extent that such Bonds
are prepayable in the Current Year, and
d Fourth, to prepay the Capital Appreciation Note, to the extent such
Note are prepayable in the Current Year, and
e Fifth, to compensate for any shortfall of tax increments pledged to
te Bonds pursuant to paragraph 2 hereof, and
f Sixth and finally, for application to any other purpose which the
Authority, in its sole discretion, may determine "
5 An executed copy of this Agreement sha11 be filed with the County Auditor
of Anoka County, as required by Minnesota Statutes, Section 273 77 (a)
6 The Tax Increment Pledge Agreement sha11 remain in full force and effect
in accordance with its terms, as amended by this Agreement
7 This Agreement shall become effective upon the actual issuance and
delivery of the Series 1986 Bonds
'
Page 3- Amended Tax Increment Pledge Agreement
' IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to
be duly executed as of the day and year first above written
CITY OF FRIDLEY, MINNESOTA
ATTEST
-�«�� (.,/, ! r� � �d�.
City Clerk
(SEAL)
�
�
By V V l/�/v`'°"^" /
Its Mayor
��` � - � �
s l�'���1«, /�'"%- �� � -
yI st City Manager �
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND EaR THS CITY
OF�FRIDLJEY, MINNES�pTA ;-�
/
! �� �
i , � �_�
, � ,, / y�
�y ��c,,ui.<.�.� ,- . �e.�,��..,,-�-
��Its Chairman �'
B�/�` ��(���t f'� ,/,..� .�
Its Director