HRA RES 1986-18 - 00013794'
RESOLUTSON N0. HRA 18 - 1986
RESOLIITION AMENDING THE HRA'S $5,603,755.80 LIAIITED
REVENUE CAPITAL APPRECIATIOA TAX INCREMENT Il1�OTE, DATED
DECEMBER 20, 1985
BE IT 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 To finance pro�ect activities consisting of land acquisition and related
public improvements within and for the benefit of the Authority's Tax
Increment Financing District No 6 and its Redevelopment Pro�ect No 1,
which the Authority obligated itself to undertake pursuant to a certain
Contract for Pxivate Redevelopment, dated December 2Q, 19II5 (the
"Redevelopment Agreement"), between the Authority and Lake Pointe
Investment Company, a Limited Partnership (the "Redeveloper"), the
Authority issued its $5,603,755 80 Limited Revenue Capital Appreciation
Tax Increment Note, dated December 20, 1985 (the "Note"), pursuant to a
certain resolution adopted by the Board on December 12, 1985 (the "Note
Resolution")
2 The Authority and the Redeveloper have supplemented and amended the
' Redevelopment Agreement pursuant to an Addendum to Contract for Private
Aedevelopment, dated August 15, 1986 (the "Addendum"), between said
parties Pursuant to paragraph 9 of the Addendum, the Authority has
agreed to amend the Note as therein and hereinafter provided
'
3 The Authoxity shall forthwith amend its Note, and the NoCe, as so amended
in accordance with the provisions of paragraph 9 of the Addendum (the
"Amended Note"), sha11 be in substantially the following form (provided
that the same accretion tables which were appended to and made a part of
the Note shall likewise be appended to and made a part of the Amended
Note)
4 The Amended Note shall be executed on behalf of the Authority by the
manual signatures of the Executive Director and the Chairman and, when
fu11y executed, shall be delivered by the Executive Director to the
Registered Owner of the Note upon the Registered Owner's surrender of the
Note originally delivered to the Registered Owner by the Authority on
December 20, 1985, whereupon the Note so surrendered shall be replaced by
the Amended Note and shall be of no further force and effect and shall be
destroyed by the officers of the Authority
Page 2- Resolution No HRA 18 - 1986
' S The officers of the Authority are hereby authorized and directed to
prepare and furnish to the attorneys approving the Amended Note certified
copies of proceedings of the Authority relating to the Amended Note and to
furnish such other certificates, affidavits, and transcripts as may be
required to show facts within their knowledge or as shown by the books and
records in their custody and under theiz control relating to the validity
of the Amended Note, and such instruments, including any heretofore
furnished, shall be deemed representations of the Authority as to the
facts stated therein
6 To the extent that the execution of and performance under the Addendum or
the amendment of the Note pursuant to this Resolution does or would
constitute or cause a contravention of any covenant made by the Authority
with respect to the Note, including without limitation any covenant
provided in paragraph 9 of the Note Resolution, or of any other limitation
or provision applicable to the Note pursuant to the Note Resolution or of
any of the other proceedings taken or certificates executed by or on
behalf of the Authority in connection with the issuance of the Note, such
covenant, limitation, or provision is hereby and to such extent, but only
to such extent and only with respect to circumstances appertaining to such
contravention, rescinded
7 Except as modified by this Resolution, the Note Resolution remains in fu11
force and effect
PASSED AND A➢OPTED BY THE HOUSING AN➢ REDEVELOPMENT AUTH�RITY OF TAE CITY OF
' FRIDLEY THIS 11TH DAY OF SEPTEMBER, 1986
r�
% � �
r /� ,!`�
L , i.�fL'z4.i,.'�e '� f.��' l�Z�y ' �C
LAWRENCE COMMERS
CNAIRMAN
ATTEST
1
'
'
No. R-1
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF FRIDLEY HRA
LIMITED REVENUE CAPITAL APPRECIATION TAX INCRF..MENT NOTE
$5,603,755 80
1 The Housing and Redevelopment Authority in and for the City of Fridley,
Minnesota (the "Authority"), hereby acknowledges itself to be indebted
and, for value received, promises to pay to Lake Pointe Investment
Company, a Limited Partnership, or registered assigns (the "Registered
Owner") solely from the source, to the extent, and in the manner
hereinafter provided, the principal amounts of this Note (the "Principal
Amounts"), together with interest thereon accrued from the date hereof and
compounded in the manner hereinafter provided at the approximate rates of
interest (the "Approximate Interest Rates") on the dates (the "Scheduled
Payment Dates"), respectively, as follows (said Principal Amounts plus
said accrued intexest to the Scheduled Payment Dates being, respectively,
the "Scheduled Payments")
Principal
Amounts
$ 233,291 25
222,712 50
209,535 00
199,792 50
187,305 DO
178,387,50
253,552 00
241,080 25
221,415 25
210,122 25
194,677 75
184,529 00
173,989 25
164,881 25
229,653 00
217,574 50
204,858 50
194,038 00
294,436 80
278,760 00
250,125 00
236,394 00
233,408 2D
211,126 20
199,534 20
188,576 65
' $5,603,755 80
Approximate
Interest Rates
9 500
9 500
9 750
9 750
10 000
10 000
10 350
10 350
10 750
10 750
11 000
11 000
11 O50
11 O50
11 100
11 100
11 150
11 150
11 250
11 250
11 625
11 625
11 625
11 625
11 625
11 625
Scheduled
Payment Dates
2/1/91
8/1/91
2/1/92
8/1/92
2/1/93
8/1/93
2/1/94
8/1/94
2/1/95
8/1/95
2/1/96
8/1/96
2/1/97
8/1/97
2/1/98
8/1/98
2/1/99
8/1/99
2/1/00
8/1/00
2/1/O1
8/1/O1
2/1/02
8/1/02
2/1/03
8/1/03
Scheduled
Payments
$ 375,000
375,000
375,000
375,000
375,000
375,000
575,000
575,000
575,000
575,000
575,000
575,000
575,000
575,000
850,000
850,000
850,000
850,000
1,380,000
1,380,000
1,380,000
1,380,000
1,380,000
1,380,000
1,380,000
1,380,000
Page 2- Limited Revenue Capital Appreciation Tax Increment Note
' 2 Upon 30 days prior written notice from the Authority to the Registered
Owner, the Scheduled Payments are sub]ect to prepayment at the option of
the Authority, and in cetain circumstances specified below are subject to
mandatory prepayment by the Authority, in inverse order of the Scheduled
Payment Dates, in whole or in part, on February 1, 1986, and on each
August 1 and February 1 thereafter, at a redemption price equal to the
respective accreted values thereof (the "Accreted Values") on the date of
such prepayment, as stated per $S,D00 of the Principal Amounts in the
Accreted Value Tables, respectively, attached to and made a part of this
Note
3 The interest portion of any payment on this Note, whether of payment of a
Scheduled Payment on the corresponding Scheduled Payment Date or of
payment of an Accreted Value on a prepayment date, is the difference
between (1) the Scheduled Payment or the Accreted Value, as the case may
be, and (2) the corresponding Principal Amount, such difference
representing interest from the date hereof on said Principal Amount at the
corresponding Approximate Interest Rate and compounded semi-annually on
the basis of a 360 day year consisting of 12 30-day months A11 payments
on this Note shall be applied first to accrued or accreted interest and
then to the principal in respect of which such payment is made
4 Each payment on this Note is payable in any coin or currency of the United
States of America which on the date of such payment is 1ega1 tender for
public and private debts and sha11 be made by check or draft made payable
' to the Registered Owner and mailed to the Registezed Owner's address, as
such name and address of the Registered Owner appear on the registration
books maintained by the Authority for the Note (the "Note Registrar") at
the end of the 15th day of the month prior to the date of such payment
5 The Note 1s a special and limited and not a general obligatlon of the
Authority, except as otherwise provided in paragraph 12 hereof, which has
been issued by the Authority in fully registered form without interest
coupons pursuant to and in full conformity with the Constitution and laws
of the State of Minnesota, including Minnesota Statutes, Sections 462 551
and 273 77(c), and, with respect to paragraph 12 hereof, pursuant to
Minnesota Statutes, Section 273 77(b), to aid in financing a"pro�ect," as
therein defined, of the Authority consisting generally of defraying
certain public redevelopment costs incurred and to be incurred by the
Authority within and for the benefit of its Housing and Redevelopment
Project No 1 (the "Redevelopment Pro�ecC")
6 Except as otherwise provided in paragraph 12 hereof, the Scheduled
Payments of this Note due in any calendar year (the "Current Year") are
payable solely from and only to the extent that the Authority sha11 have
received in the calendar year preceding the Current Year Available Ta�
Increments, hereby defined to be the aggregate amount of tax increments
received by the Authority in said preceding calendar year from its Tax
Increment Financing District No 6 within the Redevelopment Pro�ect which
exceed the amount of the principal and interest due in the Current Year on
' the $3,915,000 principal amount of certain bonds (such bonds, or any
obligations issued to refund the same, the "Prior Lien Bonds") issued or
to be issued by the City of Fridley, Minnesota (the "City"), at the
request and for the benefit of the Authority, which Prior Lien Bonds
Page 3- Limited Revenue Capital AppYeciation Tax Increment Note
' have a lien on such tax increments prior and superior to this Note, a11
pursuant to and as more fully specified in a certain Tax Increment Pledge
Agreement, dated as of December 1, 1985 (the "Pledge Agreement"), executed
or to be executed by and between the Authority and the City in connection
with the issuance of the Prior Lien Bonds, to which Pledge Agreement
reference is hereby made for a fuller statement of the extent to which
such tax increments are first pledged to the Prior Lien Bonds and secondly
to this Note
7 The Authority shall pay in each calendar year to the Registered Owner the
lesser of the Available Tax Increments and the total of the Schedule
Payments due hereon in that yea�, and to the extent of such payments,
whether made in full or in part, the Authority's obligation with respect
to such Scheduled Payments sha11 be deemed fully discharged, without
default of any kind hereon or otherwise on the part of the Authority, and
without any further obligation or liability of or payment by the Authority
arising therefrom or with respect thereto, except as othe�wise provided in
paragraph 12 hereof
8 As further provided in the Pledge Agreement, if in any calendar year the
Available Annual Increments exceed the total of Scheduled Payments due in
that year, the Authority shall first apply such excess to the prepayment
of the Prior Lien Bonds, to the extent such Bonds are prepayable in that
calendar year, shall apply any then resulting remainder to effect a
mandatory redemption of this Note, to the extent this Note is prepayable
' in that calendar year, and shall apply any then resulting remainder in
accordance with the Pledge Agreement
9 If that certain ContracC for Private Redevelopment, dated in December of
1985 (the "RedevelopmenC Agreement"), by and between the Authority and
Lake Pointe Investment Company, a Limited Partnership, shall terminate
pursuant to Section 3 6 thereof, the Available Annual Increments shall for
each year thereafter be deemed to be zero, and this Note shall thereupon
be automatically cancelled, without further obligation hereon of the
Authority whatsoever, the provisions of paragraph 12 hereof
notwithstanding
10 Except as otherwise provided in paragraph 12 hereof, this Note shall not
be payable from or constitute a charge upon any £unds of the Auehority,
and the Authority shall not be subject to any liability hereon or be
deemed to have obligated itself to pay hereon from any funds except the
Availahle Annual Increments, and then only to the extent and in the manner
herein specified
'
Page 4- Limited Revenue Capital Appreciation Tax Increment Note
' 11 The Registered Owner shall never have or be deemed to have the right to
compel any exercise of any taxing power of the Authority or of any other
public body, and neither the Authority nor any director, commissioner,
council member, board member, officer, employee or agent of the Authority,
nor any person executing or registering this Note shall be liable
personally hereon by reason of the issuance or registration hereof or
otherwise The provisions of this paragraph sha11 not be construed to
alter or diminish the rights granted to the Registered Owner pursuant to
paragraph 12 hereof
12 If but only if all of the obligations stated in paragraph S of that
certain amendment of the Redevelopment Agreement entitled Addendum to
Contract for Private Redevelopment, dated on or as of August 15, 1986,
between the Authority and Lake Pointe Investment Company, a Limited
Partnership, are performed in full and timely manner, then on August 1,
2003, the Authority sha11, with respect to each Scheduled Payment of this
Note, pay to the Registered Owner the portion, if any, of that Scheduled
Payment which the Authority has not theretofore paid or prepaid pursuant
to the terms of this Note In no event shall a Scheduled Paymene accrue
or accrete any interest on or after its Scheduled Payment Date
Notwithstanding any provisions of this Note to the contrary, except the
provisions of paragraph 9 hereo£, the payment obligation of the Authority
to the Registered Owner provided in this paragraph shall, pursuant to
Minnesota Statutes, Section 273 77(b), be a general obligation of the
Authority
' 13 This Note may be transferred or exchanged, including exchanges for
serialized Notes containing one or more Scheduled Payments, but only upon
the Note Register and only by the Registered Owner or its attorney duly
authorized in writing, upon surrender hereof together with a duly executed
written instrument of transfer satisfactory to the Authority, acting as
Note Registrar, whereupon the Note Registrar shall authenticate and
deliver in the name of the designated transferees a new registered Note or
Notes of the same aggregate amount of Scheduled Payments, corresponding
Scheduled Payment Dates, Approximate Interest Rates, and other terms
heseof Only the Registered Ownes shall be entitled to receive any
payments on this Note, and the Authority may treat the Registered Owner as
the absolute owner hereof for all other purposes whatsoever
14 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be
done, to have happened, and to be performed precedent to and in the
issuance of this Note have been done, have happened, and have been
performed in regular and due form, time, and manner as required by law,
and that this Note, together with all other indebtedness of the Authority
outstanding on the date hereof and on the date of its actual issuance and
delivery, does not cause the indebtedness of the Authority to exceed any
constitutional or statutory limitation thereon
,
�
,
1
Page 5- Limited Revenue Capital Appreciation Tax Increment Note
15 IN WITNESS WHEREOF the Housing and Redevelopment Authority in and for the
City of Fridley, Minnesota, by its Board of Commissioners, has caused this
Note to be executed by the manual signatures of the Chairman of the Board
of Commissioners and the Executive Director of the Authority, has caused
this Note to be executed manually by the Executive Director, acting on
behalf of the Authority as Note Registrar, and has caused this Note to be
dated December 20, 1985
Executive Director
Chairman of the Board
of Commissioners
CERTIFICATE OF REGISTRATION
It Ls hereby certified that, at the request of the Registered Owner of this
Note, the undersigned has this day re-registered the foregoing Note, as
amended pursuant to a certain resolution adopted by the Board of Commissioners
of Che Authority on September 11, 1986, in the name of such Registered Owner
as indicated in the registration blank below, on the books kept by the
undersigned for such purposes
NAME
REGISTERED OWNER
Lake Pointe Investment
Compatty, a Limited
Partnership
DATE OF
REGISTRATION
September _, 1986
SIGNATURE OF
EXECUTIVE DIRECTOR