Loading...
HRA RES 1990-03 - 00013840RESOLUTION NO HRA 3- 1990 ' RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENT RESPECTING $9,485,OD0 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS OF 1990 WHEREAS, at the request of the Housing and Redevelopment AuthoKity in and for the City of Fridley, Minnesota (the "HRA."), it is anticipated that the City of Fridley, Minnesota (the "City"), will award the sale of its General Obligation Tax Increment Refunding Bonds of 1990, dated as of March 1, 199D (the "199D Bonds"), in the approximate principal amount of $9,485,000, pursuant to Minnesota Statutes, Chapter 475, to refinance certain expenditures for certain public zedevelopment costs undertaken by the HRA within the HRA's Redevelopment Project No 1 NOW, THEREFORE, IT IS HEREBY RESOLUED by the Board of Commissioners of the HRA as follows 1 The HRA has undertaken and will continue to uttdertake, pursuant to and in conformity with the HRA's statutory powers, certain public improvements (the "Improvements") within and for the benefit of the HRA's Redevelopment Pt'o�ect No. 1 2 In order to finance the Improvements and at the request of the HRA, on December 30, 1985, the City issued its $11,550,D00 Variable Rate Demand ' General Obligation Tax Increment Bonds, Series 1985 (the "Series 1985 Bonds"). 3 On August 15, 1986, the City issued its $10,045,000 General Obligation Tax Increment Refunding Bonds, Series 1986 (the "Series 1986 Bonds"), dated as of August 1, 1986, for the purpose of crossover refunding the Series 1955 Bonds. 4 It is necessary and desirable that the City issue, and the HRA hereby requests that the City issue, its General Obligation Tax Incxement Refunding Bonds of 1990, to be dated as of March 1, 1990, and issued in the estimated principal amount of $9,485,000 (the "1990 Bonds") in order to advance refund the remaining principal of and interest on the Series 1986 Bonds 5 The Tax Increment Pledge Agreement attached hereto and made a part hereof is hereby approved, and the officers of the HRA are hereby authorized and directed to take such steps as may 6e necessary to execute said Agreement, in substantially the form as attached, upon approval and execution thereof by the City, and to carry out and fulfill the provisions and requirements thereof b. The Board finds that it is necessary to retain the approximately $2,400,000 of unspent proceeds o£ the 1985 Bonds for ongoing development and redevelopment costs incurred and to be incurred by the HRA within and ' for the benefit of its Redevelopment Project No 1 The officers of the HRA are authorized and directed to execute, in connection with the issuance of the 1990 Bonds, such certificates as may be required or sequested by bond counsel with respect to past and future project activities, expenditure and application of proceeds of the 1985 Bonds and Page 2-- Resolution No HRA 3- 1990 other matters, and such certificates shall constitute representations of ' the HRA PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF FRIDLEY THIS 8TH DAY OF MARCH,�1990 ���--�u^�-�-�{ �� `' j)•�,.��.�.t.M--' � LAWRENCE R COMMERS - CHAIRPERSON ATTEST� �� rl � �% 9 i J HN L" OCK" ROBERTSON � XECUTIVE DIRECTOR ' ' Page 3-- Resolution No HRA 3- 1990 TAX INCREMENT PLEDGE AGREEMENT ' This Tax Increment Pledge Agreement (the "Agreement") is dated as of March 1, 1990, 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 £ollows WHEREAS, on December 16, 1985, the City Council adopted a resolution awarding the sale of the City's $11,550,0�0 Variable Rate Demand Genexal Ohligation Ta�c 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 HKA's Redevelopment Pro]ect No 1, 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, Sezies 1986, dated August 1, 1986 (the "Serles 1486 Bonds"), fox the purpose of crossover refunding the Series 1985 Bonds, and WHEREAS, at the request of the HRA, the City Council has adopted or is expected to adopt a resolution (the "Bond 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, in connection with the issuance of the Series 1985 Bonds, the HRA. and the City entered into a certain Tax Increment Pledge Agreement, dated as of December l, 1985 (the "1985 Pledge Agreement"), in connection with the issuance of the Sezies 1986 Bonds the City and the HRA entered into a certain Amended Tax ' Increment Pledge Agreement, dated as of August 1, 1986 (the "Amended Pledge Agreement"), and it is necessary to enter into this Tax Increment Pledge Agreement to provide for the payment of the debt service on the 1990 Sonds, and WHEREAS, on February l, 1990, the Series 1985 Bonds were crossover refunded and paid in full, and WHEREAS, to provide funds sufficient for the timely' payment of the debt service on the 1990 Sonds, 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 1 In order to pay the principal o£ and interest on the 1990 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 1990 Bonds, and the HRA sha11 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 1990 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 derived by the HRA from Tax Increment Financing Distnct Nos 1, 2, 3 and 6(to the Page 4-- Resolution No HRA 3- 1990 extettt the same may be applied toward payment of the 1940 Bonds pursuant ' to applicable law) within the HRA�s Redevelopment Pro�ect No l, subject to all undischarged pledges or other commitments heretofore made for such tax increments. In payment of its o6ligations under this Agreement, the HRA expressly reserves the right to pledge or otherwise dedicate such tax incxements 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 1 ' 2 An executed copy of this Agreement shall be filed with the CounCy Auditor of Anoka County, as required by Minnesota Statutes, SEction 469 178, Subdivision 2 3 This Agreement shall become effective upon the actual issuance and delivery of the 1990 Bonds Upon the issuance of the 1990 Bonds and the advance refunding thereunder of the SeLies 1986 Bonds, the 1985 Pledge Agreement, as amended by the Amended Pledge Agreement, shall be of no further force or effect, except that the HRA expressly retains any and all rights it may have, if any, thereunder respecting the application of tax increments £rom Tax Increment Financing District No 6 to payment o£ the "District 6 Bonds" (as therein de£ined) or otherwise 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 above written. HOUSING AND REDEVELOPMENT AIITHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairman By ICs Executive Director CITY OF FRIDLEY, MINNESOTA By Its Mayor By Its City Manager (SEAL)