HomeMy WebLinkAbout5468 - ADMIN Resolution - City Council - 1976/01/26•
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RESOLUTION NO. 5468
RESOLUTION OF THE CITY COUNCIL OF ST. LOUIS PARK,
MINNESOTA DETERMINING NEED FOR FINANCING, PROVIDING
FOR THE ISSUANCE AND SALE OF $2,500,000 GENERAL
OBLIGATION REDEVELOPMENT BONDS OF 1976: AUTHORIZING
ADVERTISEMENT FOR BIDS AND AUTHORIZING THE EXECUTION
OF A TAX INCREMENT AGREEMENT WITHTHE HOUSING AND
REDEVELOPMENT AUTHORITY OF ST. LOUIS PARK
WHEREAS, pursuant to the requirements of Minnesota Statutes Section
462.521, the Housing and Redevelopment Authority of St. Louis Park has applied
to the City Council of the City of St. Louis Park for approval of a redevelop-
ment project, described as the "Oak Park Village" project, and
WHEREAS, the City Council held a public hearing after public notice and
has made findings as required by Section 462.521, Subd. 2, and has approved
said project by Resolution No. 4683 adopted November 6, 1972, and
WHEREAS, the Housing and Redevelopment Authority of St. Louis Park has
incurred certain costs for acquiring land for making improvements and has
borrowed money from the Department of Housing and Urban Development, an agency
of the United States of America, and
WHEREAS, funds are needed at this tine to terminate the obligation with
HUD, provide funds for site improvements within the project area, repay interest
costs on the HUD loan, pay costs incurred for storm sewer, street and other
local improvements within the project area, provide monies for capitalized interest
and pay administrative costs, all of which are estimated as follows:
Land $1,107,000
Site Improvements 844,000
Interest Costs 16,000
Capitalized Interest 468,750
Administrative for Bonding,
Fiscal and Legal 15,250
Bond Discount 49,000
$2,500,000, and
WHEREAS, the City of St. Louis Park is authorized by Minnesota Statutes,
Section 462.585, Subd. 4, to issue General Obligation Redevelopment Bonds if
the Housing and Redevelopment Authority pledges tax increments received from a
redevelopment project and revenues received from the sale of lands in the project
area for the payment of the principal of and interest on bonds issued in aid
of the project pursuant to Sections 462.551 or 462.581 of the Minnesota Statutes,
and
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WHEREAS, the pledge of "tax increments" shall 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 Chapter 475 of the Minnesota Statutes subject only to the
conditions required for bonds financing improvement costs reimbursable from
special assessments, and
WHEREAS, in addition to the "tax increment" pledge referred to above, the
Housing and Redevelopment Authority has pledged to transfer to the City of St. Louis
Park all monies received from the sale of land in the "Oak Park Village" project
area and as further support for the payment of said bonds has asked that the City
use federal funds received for the Community Development Program for the payment
of bonds before any ad valorem taxes need be collected from residents of the
City, and
WHEREAS, the Housing and Redevelopment Authority has adopted a resolution
determining the need for the aforementioned financing, has approved the tax
increment agreement attached hereto and marked "Exhibit A" and has requested the
City Council to issue $2,500,000 General Obligation Redevelopment Bonds under the
authority contained in Minnesota Statutes, Sections 462.581 and 462.585 and
Chapter 475 and Section 6.15 of the Home Rule Charter for the aforementioned
purposes,
THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park
as follows:
1. It is hereby determined that it is necessary to sell bonds to provide
funds for the purpose of financing the "Oak Park Village" redevelopment project
and that the sum of $2,451,000 is necessary to defray the expenses of said project,
all as set forth in the Whereas provisions of this resolution.
2. It is further determined that the amount of $2,451,000 should be
supplemented by the issuance of additional bonds as authorized by Minnesota
Statutes Section 475.56 and that the City shall sell and issue $2,500,000 of
General Obligation Redevelopment Bonds of 1976 with $49,000 of said bonds being
considered as additional interest.
3. The "Tax Increment Agreement" attached hereto and marked "Exhibit A" is
approved and the Mayor and City Manager are hereby authorized and directed to
execute said agreement and the City Clerk is directed to file an executed copy of
the agreement with the County Auditor and obtain his certificate of filing.
4. The said bonds are to be issued pursuant to authority conferred upon the
City by Minnesota Statutes, Section 462.585, Subd. 4, Chapter 475, and Section 6.15
of the Home Rule Charter.
5. The City further accepts the pledge of the Housing Authority of St. Louis
Park to transfer the net receipts of all land sales in the project area to the
sinking fund created to pay principal and interest on the aforedescribed bonds.
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6. The sale resolution selling these bonds shall contain a statement
indicating that the bonds of this series sold in the amount of $2,451,000 shall
be the sum considered necessary to finance improvements and costs as aforedescribed
for the Authority and further determining that the City is selling additional
bonds to represent the higher rate of interest as authorized by Minnesota Statutes,
and that such additional bonds in the amount of $49,000 do not exceed two percent
(2%) of the amount otherwise authorized. That bids submitted to purchase bonds
in the total amount of $2,500,000 shall be at a price of not less than $2,451,000
and that all amounts received by the Treasurer in excess of $2,451,000 shall be
credited to a sinking fund for the payment of interest on these obligations.
7. The City Clerk is hereby directed to cause notice of sale to be given by
publication, at least ten days in advance of the sale, in the official newspaper,
the St. Louis Park Sun, a regular newspaper having general circulation in the
City of St. Louis Park, and in Commercial West, a financial paper published at
Minneapolis, Minnesota, with general circulation throughout the State of Minnesota,
and in the Bond Buyer, a financial newspaper published in New York City, New York,
which notice shall recite that the City of St. Louis Park proposes to issue and
sell its bonds, in denominations of $5,000 or such higher denominations as
requested by the successful bidder within 48 hours after sale of bonds, shall be
numbered consecutively commencing with number 1, shall be dated March 1, 1976, to
bear interest payable on September 1, 1976, and semi-annually thereafter on the
1st day of March and September of each year, maturing serially on March 1st in
in years and amounts as follows:
1979 $50,000 1988 $150,000
40 1980 50,000 1989 150,000
1981 50,000 1990 200,000
1982 50,000 1991 200,000
1983 100,000 1992 200,000
1984 100,000 1993 200,000
1985 100,000 199a 200,000
1986 150,000 1995 200,000
1987 150,000 1996 200,000
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Bonds maturing after March 1, 1986, will be subject to redemption in inverse
numerical order on said date and any interest payment date thereafter at par and
accrued interest plus a premium of 1 percent if redeemed on or before
September 1, 1988; plus a premium of 1/2 of 1 percent if redeemed on March 1,
1989, or on or before September 1, 1991; if the bonds are redeemed on or after
March 1, 1992, the redemption will be at par and accrued interest and no premium.
Said notice shall recite that the City, within 40 days from date of sale,.will
furnish the printed bonds and approving legal opinion of Messrs. LeFevere,
Lefler, Pearson, O'Brien and Drawz, 1100 First National Bank Building,
Minneapolis, Minnesota, both without cost to the purchaser, and that the bonds
will be made payable at any suitable hank or trust company designated by the
successful bidder subject to the approval of the City; all bids to be accompanied
by a good faith check in the amount of at least $50,000 to be forfeited•as
liquidated damages in the event the bid is accepted by the City and the bidder
fails to comply therewith; that no bid of less than $2,451,000 will be accepted;
the Council reserves the right to reject any and all bids, to waive informalities,
and to adjourn the sale if deemed expedient.
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8. That on the 3rd day of March, 1976, at 2 p.m. at a special meeting of
the City Council, the Council will open and consider sealed bids for award and
sale of said $2,500,000 redevelopment bonds and take such other action in respect
thereto as may be found necessary or expedient.
Adopted by the City Council January 26, 1976.
/s/
Mayor
Attest:
/s/
City Clerk
Reviewed for administration: Approved as to form and legality:
/s/ /s/
City Manager City Attorney
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Bonds Dated 2/1/76
Bonds Due 2/1
1 r.
] 976
]977
1 978
1979
1980
1951
1982
1983
1984
1985
] 986
- c]7 7
-c1988
-c19S9
-c1990
- c1991
- c1992
-c1993
-c1994
-c1995
-c1996
S2, 500, 000 $2, 500, 000
Due Collect
$ $
50, 000
50, 000
50, 000
50, 000
100, 000
100, 000
100, 000
15 0, 000
150, 000
150, 000
150, 000
200, 000
200, 000
200, 000
200, 000
200, 000
200, 000
200, 000
5 0, 000
50, 000
50, 000
50, 000
100, 000
100, 000
100, 000
l 50, 000
150, 000
150, 000
150, 000
200, 000
200, 000
200, 000
200, 000
200, 000
200, 000
200, 000
U
Interest
Est. (ei 61%
(S156, 25U*)
( 156.250*)
( 156, 250*)
153, 125
15 0, 000
146, 875
143,750
137, 500
131,250
125, 000
115, 625
106, 250
96, 875
87, 500
75, 000
62, 500
50, 000
37, 500
25, 000
12, 500
0
$2, 500, 000 S2, 500, 000
$2, 125, 000
* First 3 years interest, estimated to
be
S2, 500, 000
City of St.
Total
P&1 Req.
(5156, 250)
( 156, 250)
( 206, 250)
203, 250
200, 000
1 96, 875
243, 750
237,500
231,250
275, 000
265, 625
256, 250
246, 875
287, 500
275, 000
262, 500
250, 000
237,500
225, 000
212, 500
0
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- Tax lncren, ?nt Bonds
Louis Park, Minnesota
Total Revenues Required
Debt
Debt Service Revenues
Amortization Reserve ** Total Available
$ 0 $ 0 $ 0 $ 23,983
0 0 0 22,546
50, 000 2, 500 52, 500 21, 553
203,125 10,156 213,281 82,593
200, 000 10, 000 210, 000 152, 407
196, 875 9, 844 206, 719 166, 096
243, 750 12, 188 255, 938 193, 475
237,500 11,875 249,375 229,980
231, 250 11,563 242, 813 284,144
275,000 13,750 288,750 295,916
265, 625 13, 281 278, 906 295, 916
256, 250 12, 813 269, 063 295, 916
246, 875 12, 344 259, 219 295, 916
287, 500 14, 375 301, 875 295, 916
275, 000 13,750 288,750 295, 916
262, 500 13,125 275, 625 295, 916
250, 000 12, 500 262, 500 295, 916
237, 500 11, 875 249, 375 295, 916
225, 000 11, 250 236, 250 336, 254
212, 500 10, 625 223, 125 336, 254
0
0 0 0
Land
Sales
$100, 000
150, 000
90, 000
90, 000
75, 000
75, 000
50, 000
40, 000
$4, 625, 000 $4, 156, 250 $207, 814 $4, 364, 064 $4, 512, 529 $670, 000
$468, 750, capitalized.
'"' 5% debt service reserve required by tax increment statutes.
-114ances
M ai10 ble
S123, 983
296, 529
355,582
314, 894
332, 301
366, 678
354,215
374, 820
416, 151
423,317
440, 327
467, 180
503, 877
497, 918
505, 084
525,375
558, 791
605,332
705, 336
818, 465
0
1 r.
1976
1977
1978
1979
1980
1981
1982
1983
1984
] 985
1986
1987
1988
1989
1990
1991
1992
1993
199-
1995
Notes
Interest
Capitalized
Reinvestment
521,483
13,671
5, 859
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0-
541, 013
Schedule of Tax Increment Revenues (includlrind Sales)
Oak Park Village I'iolect
St. Louis Park, Minnesota
Land Sales
Reinvestment
$ 2,50U
8, 875
15, 694
20, 535
c c Z
o r o
c o
u,
• U, o
o
o
F. Cr
C
o
- 0"-',
o w
ti c.
$47, 604
Parcel ;3 Parce] #4
$ 0 $ 0
0 0
0
0
90,349
90, 349
90, 349
90, 349
90, 349
90, 349
90, 349
90, 349
90, 349
90.349
90, 349
90, 349
90.349
90, 349
90, 349
90,349
51,44�,�84
0
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
62, 058
1 02, 396
102, 396
$1,135,662
inciemental Tax Receipts
Parcel r2
5 0
0
0
0
0
0
0
36, 505
73, 1 01
73,101
73, 101
73,101
73, 101
73,1 01
73, 101
73,1 01
73,1 01
73, 101
73,101
73,1 01
5876,485
Parce] ;1
5 0
0
0
0
0
13,689
41 , 068
41, 068
41, 068
41,068
41,068
41,068
41,068
41,068
41,068
41,068
41, 068
41, 068
41, 068
41, 068
$588, 641
Parcel ;6
5 0
0
0
0
0
0
0
0
17,659
17, 659
17,659
17,659
17,659
17,659
17,659
17,659
17,659
17,659
17,659
17, 659
5211, 908
Parcel =7
$ 0
0
0
0
0
0
0
0
0
11,772
11,772
11,772
11,772
11,772
11,772
11,772
11,772
11,772
11,772
11,772
$129,492
1. No provision has been made or included for potential investment earnings on invested surplus after 1979.
2. Tax increments and land sales in parcels r5 and Y8, which is projected to be last developments within
project area, are not included.
3. Tax increments have been computed using 107.367 mills on estimated project costs as a constant figure.
Total
Available
Revenues
S 23,983
22,546
21,553
82, 593
152, 407
166, 096
193, 475
229, 980
254, 144
2°5, 916
205, 916
295, 916
295, 916
295, 916
295, 916
295, 916
295, 916
295, 916
336, 254
336, 254
54, 512,529
Land Sales
(3)5100, 000
(4) 150, 000
(1) 90, 000
(1) 90, 000
(2) 75, 000
(2) 75, coo
(6) 50, 000
(7) 40, 000
Cumulan
Land
Sale Mor
$ 1U0, 0
250, 0
340, 0
430, 0
505, 0
580, 0
630, 0
670, 0
$670, 000 $670,1
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TAX INCREMENT AGREEMENT
TIHIS AGREEMENT, Made and entered into this 26th day of
January
, 1976, by and between the City of St Louis Park,
Minnesota, a Municipal Corporation organized and existing under and
by virtue of the Laws of the State of Minnesota, and the Housing and
Redevelopment Authority of St. Louis Park, Minnesota, a governmental
agency formed and existing under the Laws of the United States of
America and the State of Minnesota.
WITNESSETH:
WHEREAS, the Authority has approved a certain redevelopment
project described in the attached exhibit entitled "Oak Park Village"
and has, by appropriate action taken, applied to the City Council in
and for the City of St. Louis Park, Minri se ota, for approval of such
project; and
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WHEREAS, the City of St. Louis Park, Minnesota, has formally
approved said project; and
WHEREAS, Minnesota Statutes, Section 462.585 authorizes tax
increment agreements between a Housing and Redevelopment Authority and
the Municipality within which such redevelopment projects are situated.
NOW, THEREFORE, In consideration of the mutual covenants and
agreements hereinafter contained, it is hereby agreed, by and between
the parties'hereto as follows:
1. That the Housing and Redevelopment Authority of St. Louis
Park, Minnesota, hereby expressly pledges that any and all "tax incre-
ment payments made to the St. Louis Park Housing and Redevelopment
"EXHIBIT A"
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Authority by the Hennepin County Auditor covering the redevelopment proj-
ect described in the attached exhibit shall be pledged and assigned to
the City of St. Louis Park, Minnesota, for the purpose of paying any and
all bonds of the City of St. Louis Park which may hereafter be issued by
the City of St. Louis Park for the financing of the project described in
said exhibit.
2. That the City of St. Louis Park expressly agrees that it
will issue General Obligation Redevelopment Bonds of the City of St. Louis
Park in an amount of $2,500,000 to cover the cost of financing the redevelop-
ment project described in the attached exhibit.
3. That it is the express intent and purpose and that the parties
hereto do hereby agree that the purpose of this agreement is to utilize
provisions of Section 462.585 of Minnesota Statutes, commonly referred to as
the authorization for tax increment financing of the redevelopment project
described in the attached exhibit, and that all "tax increments" received
with respect to the "Oak Park Village" project shall be segregated by the
Housing and Redevelopment Authority in a special account on its official
books until the public redevelopment cost of the project, including interest
on all money borrowed therefor, has been fully paid and the City of St. Louis
Park has been fully reimbursed from the tax increments or revenues of the
project for any principal and interest on general obligation bonds which it
has issued for the project or has paid from taxes levied on other property
within the City's corporate limit.
4. This agreement may be amended by the parties in the future to
provide additional funds by the issuance of additional general obligation
bonds if said action is deemed necessary to complete the project.
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5. Each party agrees to appoint a committee of two of its
members to serve as a Project Committee. The Project Committees will
meet jointly to study and evaluate proposals and to make recommendations
concerning the project, will serve as a liaison between the parties in
connection with the project, and will perform such other functions as
may be assigned to them by the parties from time to time.
IN WITNESS THEREOF, The parties hereto have caused this agree-
ment to be executed the day and year first above written.
Attest:
/s/
City Clerk
(CITY S E A L)
Attest:
/s/
CITY OF ST. LOUIS PARK
By /S/
Mayor
And /S/
City Manager
HOUSING AND REDEVELOPMENT AUTIIORITY
OF ST. LOUIS PARK, MINNESOTA
By /S/
And /S/
Its Chairman
Secretary Its Executive Director
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