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HRA RES 1997-08 - 00001042HRA RESOLUTION NO. 8- 1997 A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENT RESPECTING $9,575,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1997A WHEREAS, at the request of the Housing & Redevelopment Authority in and for the City of Fridley, Minnesota (the "HRA"), it is anticipated that the City of Fridley, Minnesota (the "City"), will issue the City's $9,575,000 General Obligation Tax Increment Refunding Bonds, Series 1997A, dated as of June 1, 1997 (the "Bonds"), pursuant to Minnesota Statutes, Section 469.179, Subdivision 2, and Chapter 475, to refinance certain expenditures for certain public redevelopment costs (the "Costs") undertaken and incurred by the HRA within the HRA's Redevelopment Project No. 1. NOW, THEREFORE, IT IS HEREBY RESOLVED by the Board of Commissioners (the "Board") of the HRA as follows: 1. It is necessary and desirable that the City issue, and the HRA hereby requests that the City issue, the Bonds in order to provide refinancing to the HRA for the Costs. 2. The Tax Increment Pledge Agreement attached hereto and made a part hereof is hereby approved, and the representations, covenants and provisions contained therein are hereby ratified and confirmed by the Board, and the officers of the HRA are hereby authorized and directed to take such steps as may be necessary to execute said Agreement, in substantially the form as attached (with such amendments thereto as the officers executing the same shall approve, as evidenced by their execution and delivery thereof), upon approval and execution thereof by the City, and to carry out and fulfill the provisions and requirements thereof. 3. The officers of the HRA are authorized and directed to execute, in connection with the issuance of the Bonds, such certificates as may be required or requested by bond counsel with respect to past and future project activities, including without limitation the Costs, and such certificates shall constitute representations of the HRA. PASSED AND ADOPTED BY THE FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 8TH DAY OF MAY, 1997. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR Page 2-- HRA Resolution No. 8- 1997 TAX INCREMENT PLEDGE AGREEMENT This Tax Increment Pledge Agreement (the "Agreement") is dated as of June 1, 1997; 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 "HRA"); and provides as follows: WHEREAS, on December 16, 1985, the City Council adopted a resolution awarding the sale of the City's $11,550,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, dated December 30, 1985 (the "Series 1985 Bonds"), to provide financing for certain public improvements (the "Improvements") made or to be made with respect to the HRA's Redevelopment Project No. 1(the "Project"); and WHEREAS, on August 14, 1986, the City Council adopted a resolution authorizing the issuance of the City's $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986, dated August 1, 1986 (the "Series 1986 Bonds"), for the purpose of crossover refunding the Series 1985 Bonds; and WHEREAS, on March 7, 1990, the City Council adopted a resolution awarding the sale of the City's $9,485,000 General Obligation Tax Increment Bonds of 1990, dated March 1, 1990 ("1990 Bonds"), to advance refund the Series 1986 Bonds; and WHEREAS, at the request of the HRA, the City Council has adopted or is expected to adopt a certain resolution (the "Bond Resolution") awarding the sale of the City's $9,575,000 General Obligation Tax Increment Refunding Bonds, Series 1997A, dated June 1, 1997 (the "1997 Bonds"), to currently refund the 1990 Bonds; and WHEREAS, it is necessary to enter into this Tax Increment Pledge Agreement to provide for the payment of the debt service on the 1997 Bonds; and WHEREAS, on February 1, 1990, the Series 1985 Bonds were crossover refunded and paid in full, and on February 1, 1994, the Series 1986 Bonds were paid in full; and WHEREAS, to provide funds sufficient for the timely payment of the debt service on the 1997 Bonds, it is necessary for the HRA and the City to enter into this Agreement. NOW, THEREFORE, in consideration of the covenants and agreements hereof between the City and the HRA, and pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, the City and the HRA hereby agree as follows: Page 3-- HRA Resolution No. 8- 1997 l. In order to pay the principal of and interest on the 1997 Bonds, when due, the HRA hereby pledges to the City, for deposit in the Debt Service Account established by the Bond Resolution for the payment of the 1997 Bonds, and the HRA shall pay to the City, Available Tax Increments (hereinafter defined) in amounts sufficient to pay such principal and interest, when due, and, to the extent that the Available Tax Increments are ever insufficient for such purposes, and the City, pursuant to the Bond Resolution, advances City funds to provide prompt and full payment of the 1997 Bonds, the HRA agrees to reimburse the City for such advances from such tax increments, when collected by the HRA. As used in this Agreement, "Available Tax Increments" means tax increments that are derived by the HRA from the Tax Increment Financing Districts currently existing within the Project and which are available pursuant to applicable law for such purposes, including particularly but without necessary limitation tax increments derived by the HRA from Tax Increment Financing District Nos. 1, 2, 3, and 6(to the extent the same may be applied toward payment of the 1997 Bonds pursuant to applicable law) within the Project; provided that the foregoing pledges and descriptions of Available Tax Increments are further made subject and junior in lien to all unpaid pledges or other outstanding commitments heretofore made for such tax increments. In discharging its obligations under this Agreement, the HRA expressly reserves the rights (1) to pledge or otherwise dedicate the Available Tax Increments to purposes other than the discharge of the obligations described above upon a finding by the HRA that the estimated Available Tax Increments then remaining will be sufficient from year to year for such purposes, and (2) to satisfy its obligations hereunder from year to year from such eligible tax increment districts or other revenues, or combinations thereof, as the HRA may deem in its discretion to be appropriate, desirable, or necessary, as may be permitted by law. In payment of its obligations under this Agreement, the HRA expressly reserves the right to pledge or otherwise dedicate such tax increments to purposes other than the payment of the obligations described above upon a finding by the HRA that the estimated Available Tax Increments then remaining will be sufficient from year to year for such purposes. 2. An executed copy of this Agreement shall be filed with the office of Anoka County Property Records & Taxation, as required by Minnesota Statutes, Section 469.178, Subdivision 2. 3. This Agreement shall become effective upon the actual issuance and delivery of the 1997 Bonds. Page 4-- HRA Resolution No. 8- 1997 IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be duly approved and executed as of the day and year first written above. HOUSING & REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By By Lawrence R. Commers - Chairman CITY OF FRIDLEY, MINNESOTA Nancy J. Jorgenson - Mayor By By William W. Burns-Executive Director William W. Burns-City Manager