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RES 1980-126 - 00006619199 RESOLUTION NO. 126 - 1980 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,200,000 GENERAL OBLIGATION TAX INCREMENT REDEVELOPMENT BONDS OF 1981 BE IT RESOLVED By the City Council of the City of Fridley, Anoka County, Minnesota as follows: 1. Pursuant to the provisions of Minnesota Statutes Sections 462.521 and 273.71 to 273.78 (collectively the "Act ") the Housing and Redevelopment Authority of the City of Fridley (the "Authority ") has applied to the City Council of the City of Fridley (the "City ") for approval of a redevelopment project described as The Center City Redevelopment and Tax Increment Financing Plan (the "Tax Increment Financing District "). 2. The City Council held a public hearing after public notice and has made findings as required by the Act and has approved the Tax Increment Financing District by Resolution adopted on May 15, 1979. 3. By resolution of November 13, 1980, the Authority has requested the City to issue and sell its General Obligation Tax Increment Redevelopment Bonds to finance public redevelopment of certain parcels of land (collectively the "Project ") within the Tax Increment Financing District, and submitted a form of Tax Increment Agreement (the "Agreement ") to the Council for approval. 4. Funds are needed at this time to provide money for public improvements within the Tax Increment Financing District and to provide monies for capitalized interest and administrative costs, all of which costs (the "Public Redevelopment Cost ") are presently estimated as follows: Land acquisition costs $2,123,863 Legal, fiscal & administrative 33,000 Principal amount needed $2,156,863 Allowance for bond discount 43,137 Total Bond Issue $2,200,000 5. The City is authorized by Section 273.77 of the Act, to issue General Obligation Tax Increment Redevelopment Bonds if the City and the Authority by Agreement pledge tax increments, revenues and assessments received from the District for the payment of principal of and interest on bonds issued in aid of the redevelopment project pursuant to the Act. 6. The pledge of tax increments must be made by written agreement executed by the Authority and the City and filed with the County Auditor and when such an agreement is made and filed, the City may issue general obligation bonds as provided in Minnesota Statutes. Chapter 475, subject only to the conditions required for bonds issued to finance improvement costs reimbursable from special assessments. 7. The Authority has adopted a resolution determining the need for the financing, has approved the form of Agreement attached hereto and marked "Exhibit A ", and has requested the City Council to issue General Obligation Tax Increment Redevelopment Bonds under the authority of the Act. 8. It is hereby determined that it is necessary for the City to sell its General Obligation Tax Increment Redevelopment Bonds to provide funds to finance the Public Redevelopment Costs of the Project and that the sum of $2,156,863 is necessary to defray the Public Redevelopment Costs. 9. The form of agreement attached hereto and marked "Exhibit A" is approved, and the Mayor and City Manager are hereby authorized and directed to execute the agreement, and the City Manager is directed to file an executed copy of the agreement with the County Auditor of Anoka County and obtain a certificate of filing. 10. In order to provide financing for such costs, the City shall therefore issue and sell its General Obligation Tax Increment Redevelopment Bonds of 1981 (the "Redevelopment Bonds ") in the amount of $2,156,363. In order to 200 Page 2 -- RESOLUTION NO. 126 - 1980 provide in part the additional interest required to market the Bonds at this time, additional Redevelopment Bonds shall be issued in the amount of $43,137. Any excess of the purchase price over the sum of $2,156,863 shall be credited to the debt service fund for the purpose of paying interest first coming due on the Redevelopment Bonds. 11. The $2,200,000 General Obligation Tax Increment Redevelopment Bonds of 1981 shall be issued and sold in accordance with the terms of the attached Official Notice of sale which is marked Exhibit "B ". 12 The City Manager is authorized and directed to advertise the Bonds for sale in accordance with the attached notice of sale and to cause the abbreviated notice of sale attached hereto as Exhibit "C ", to be published in the manner required by law. The City Council shall meet on Monday, January 1981, at 7:30 o'clock P.M. for the purpose or considering bids on the bonds and taking any other appropriate action. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 8TH DAY OF DECEMBER, 1980. WA4-&-, AYOR - WILLIAM E ATTEST: ACTING CITY CLERK - NASIM M. QURE 11-I CITY OF FRIDLEY AGREEMENT OF COOPERATION BETWEEN THE HOUSING & REDEVELOPMENT AUTHORITY AND MUNCIPALITY EXHIBIT "A" THIS AGREEMENT, made and entered into this 13th day of September, 1979, by and between the Housing and Redevelopment Authority of the City of Fridley, a public corporation organized under the laws of the State of Minnesota having its office in the City of Fridley (herein referred to as Authority), and the City of Fridley, Anoka County, Minnesota, a municipal corporation organized under the laws of the State of Minnesota (herein referred to as City). RECITALS WHEREAS, the Authority, pursuant to Minnesota Statutes, Chapter 462, has designated the area described in Exhibit A, as a Redevelopment Area, and the Authority and the City have adopted and approved a Redevelopment Plan and Project for such area (hereinafter referred to as "Center City Project "), which are on file in their respective offices; and WHEREAS, the Authority has determined that it is necessary and desirable for the City to assist it in completing the Center City Project, and the City has determined that such assistance is needed to complete the Center City Project, for the orderly and economic development of the City, for the elimination of blight and for the development of additional real estate tax base; and WHEREAS, By virtue of Minnesota Statutes, Section 471.59, Section 429.041, Subdivision 5, Section 462.581, paragraphs (6), (7), and (8), Section 462.445, Subdivision 1, paragraph (5), and Subdivision 4, paragraph (2), the Authority and the City have the power to enter into a cooperative agreement for the making and performing such improvements as required in completing the Center City Project. __ - -4L,, 11 -- _ _ . - - -- 1 t I Page 3 -- RESOLUTION NO. 126 - 1980 "EXHIBIT A" 201 NOW, THEREFORE, for and in consideration of the mutual convenants and agreements hereinafter contained, and other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged by each of parties hereto, the Authority and the City do hereby agree as follows: 1. The Authority, in its own name, shall proceed with and complete the Center City Project, including all proceedings that may be necessary for acquisition, by direct purchase or by eminent domain of the necessary easements and rights for construction; administration of construction of all of the necessary improvements, including entering into all necessary service and construction contracts; selecting the developer of the plan after the City has had the opportunity to review and comment; and shall do all things required, necessary or desirable to implement the Resolution approving the Center City Project and to complete the improvements thereby ordered, at the earliest possible date. All things done by the Authority pursuant thereto shall be done in compliance with the requirements and regulations imposed upon the Authority by Minnesota Statutes, Section 462.411 to 462.711, inclusive (the "Municipal Housing and Redevelopment Act "). 2. The Authority may request the City to advance funds to the Authority to complete the project pursuant to Paragraph 1 hereof, upon written justification of such funding and approval of the City. Upon completion of those project costs funded by the City, the Authority shall calculate the costs thereof and certify the same to the City so that the City may proceed to assess those costs which will be assessed, pursuant to Minnesota Statutes, Chapter 429. All such costs not so assessed by the City shall be deemed loaned to the Authority as of the dates that such non - assessed costs were advanced to the Authority and shall be re -paid by the Authority to the City. 3. Nonwithstanding the provisions of Paragraph 2 above, nothing shall prohibit the City from making the improvements, as required by the project pursuant to Paragraph 1, on behalf of the Authority, provided that the Authority requests the City to make these improvements and the City agrees. In the event that the City makes these improvements, the City may proceed to assess those costs which will be assessed, pursuant to Minnesota Statutes, Chapter 429. 4. The Authority shall follow all necessary procedures and execute all documents as required by the Municipal Housing and Redevelopment Act for any financing that it may obtain for the project. 5. The City may pledge tax increments to the payment of the principal of and interest on bonds issued by it to finance all or part of the Center City Project when requested to do so by a resolution of the Authority, and the rights conferred on the City hereunder shall be enforceable by the City or any bondholder. In the event that the City does issue any bonds in aid of the project: a. The Authority, pursuant to Minnesota Statutes, Section 462.585, shall follow all necessary procedures and execute all documents determined by the City to be necessary for the collection, segregation, and transfer of tax increments from the Center City Project in the maximum amount permitted by law, until all bonds issued by the City for the payment of project costs of which said tax increments have been pledged pursuant to this agreement and the interest theron, have been paid in full. b. The City shall agree to pledge and apply all tax increments received from the Authority pursuant to this agreement to the payment of such bonds and the interest thereon. C. The Authority and the City agree to file with the Anoka County Auditor one fully executed copy of the agreements provided for in Paragraph 5, which shall constitute the request and authorization of the Authority and the City to the County Auditor and Treasurer, to compute, collect and segregate said tax increments in accordance with Minnesota Statutes Annotated, Section 462.585. 202 Page 4 -- RESOLUTION NO. 126 - 1980 "EXHIBIT A" 6. All notices, reports or demands required or permitted to be given under this agreement shall be in writing and shall be deemed to be given when delivered personally to any officer of the party to which notice is being given, or when deposited in the United States mail in a sealed envelope, with registered or certified mail postage prepared thereon. 7. This agreement shall terminate upon completion of project and payments of any obligations entered into by the City and the Authority in carrying out the Center City Project. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed as of the day and year first above written. CITY OF FRIDLEY /s /William J. Nee, Mayor /s /Nasim M. Qureshi, City Manager HOUSING AND REDEVELOPMENT AUTHORITY OF FRIDLEY, MINNESOTA. /s /Lawrence Commers Chairperson /s /Jerrold L. Boardman Executive Director "EXHIBIT B" CITY OF FRIDLEY COUNTY OF ANOKA OFFICIAL NOTICE OF SALE $2,200,000 GENERAL OBLIGATION TAX INCREMENT REDEVELOPMENT BONDS OF 1981 NOTICE IS HEREBY GIVEN that sealed bids for the purchase of $2,200,000 General Obligation Tax Increment Redevelopment Bonds of 1981, of the City of Fridley, Minnesota, will be received at the office of Ehlers and Associates, Inc., Financial Consultants to the City, on Monday, 19th day of January, 1981, until 4:30 o'clock P.M., in the presence of Mr. Jerrold Boardman, Director of the Fridley Housing and Redevelopment Authority. The City Council of the City of Fridley will meet at 8:00 o'clock P.M., at the City Hall on the same day to consider the bids and award the sale of the Bonds which will be offered according to the following terms: Purpose and Security The purpose of the bonds is to provide funds for the financing of public redevelopment costs of a redevelopment project in a Tax Increment District of the City. The bonds will be general obligations of the issuer, for which its full faith, credit and taxing powers are pledged. Page 5 -- RESOLUTION NO. 126 - 1980 "EXHIBIT B" Date and Maturities The bonds will be dated February 1, 1981, will be in denomination of $5,000 each and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1984 $ 50,000 1992 $125,000 1985 75,000 1993 150,000 1986 75,000 1994 175,000 1987 75,000 1995 175,000 1988 100,000 1996 200,000 1989 100,000 1997 200,000 1990 125,000 1998 225,000 1991 125,000 1999 225,000 Redemption Feature All bonds of this issue maturing after February 1, 1990 will be subject to prior redemption at the option of the City in inverse order of serial numbers on said date and any interest payment date thereafter at a price of par plus accrued interest to date of redemption. I nterest Interest on the bonds will be payable on August 1, 1981, and semiannually thereafter on each February 1, and August 1. All bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate not exceeding the rate specified for bonds of any subsequent maturity. Each rate must be in an integral multiple of 5/100 of 1 %, and no rate of interest nor the net effective average rate of the issue may exceed 12% per annum. Paying Agent Principal and interest will be made payable at any suitable bank recommended by the purchaser and approved by the Council, and the City will pay the customary charges for this service provided that such recommendation is received within 48 hours after the sale and the Council will select the paying agent if the recommendation is not approved. CUSIP Numbers The City will assume no obligation for the assignment or printing CUSIP numbers on the bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 40 days after sale, the City will furnish and deliver to the office of the purchaser or, at his option, will deposit with a bank in the United States selected by him and approved by the City as its agent to permit examination by and to deliver to the purchaser the printed and executed bonds, the unqualified opinion thereon of bond counsel, and a certificate stating that no litigation in any manner questioning their validity is then threatened or pending. The charge of the delivery agent must be paid by the purchaser, but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds, or within five days after deposit with the delivery agent, in funds available for expenditure by the City on the day of payment. 2 ®3 204 Page 6 -- RESOLUTION NO. 126 -1980 "EXHIBIT B" Legal Opinion An unqualified legal opinion on each bond issue will be furnished by Messrs. Wurst, Carroll and Pearson, P.A. of Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the reauest of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City, payable primarily from tax increments from the District, and the City is obligated and reauired to levy taxes for the principal and interest thereon as the same become due without limit as to rate or amount. Type of Bid Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time of said meeting. Each bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $44,000, payable to the City Clerk- Treasurer, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities less any cash premium or plus any amount less than $2,2000,000 bid for principal) will be deemed the most favorable. No oral bid and no bid of less than $2,156,863 for principal plus accrued interest on all of the bonds will be considered and the City reserves the right to reject any and all bids and to waive any informality in any bid. Dated: December 8, 1980. BY ORDER OF THE CITY COUNCIL Nasim M. Qureshi City Manager CITY OF FRIDLEY COUNTY OF ANOKA NOTICE OF SALE "EXHIBIT C" $2,220,000 GENERAL OBLIGATION TAX INCREMENT REDEVELOPMENT BONDS OF 1981 Sealed bids for these bonds will be accepted until 4:30 o'clock P.M. on Monday, January 19, 1981, at the office of Ehlers and Associates, Inc., Financial Consultants to the City, in the presence of Mr. Jerrold Boardman, Director of the Fridley Housing and Redevelopment Authority. The City Council will meet at 8:00 o'clock P.M., on the same day to consider the bids and award the sale of the bonds. The bonds are dated February 1, 1981 and will mature on February 1, in the years and amounts as follows: Year Amount Year Amount 1984 $ 50,000 1992 $125,000 1985 75,000 1993 150,000 1986 75,000 1994 175,000 1987 75,000 1995 175,000 1988 100,000 1996 200,000 1989 100,000 1997 200,000 1990 125,000 1998 225,000 1991 125,000 1999 225,000 �I 1 1 r Page 7 -- RESOLUTION NO. 126 - 1980 "EXHIBIT C" 205 All bonds maturing after February 1, 1990 are subject to prior redemption on said date and any interest payment date thereafter at par plus accrued interest. Interest will be payable on August 1, 1981, and semiannually thereafter. Each must be in an integral multiple of 5/100 of 1% and no rate may exceed 12% per annum. Minimum price, $2,156,863. An unqualified legal opinion will be furnished by Messrs. Wurst, Carroll & Pearson, P.A., of Minneapolis, Minnesota. The purpose of the bonds is to finance public redevelopment costs of a redevelopment project in a Tax Increment District of the City. BY ORDER OF THE CITY COUNCIL /s /Nasim Qureshi City Manager Dated: December 8, 1980. 0090A /0019A