HomeMy WebLinkAbout09-100 - ADMIN Resolution - City Council - 2009/07/27RESOLUTION NO. 09-100
RESOLUTION AMENDING THE RESOLUTION AWARDING THE SALE OF
$7,490,000 GENERAL OBLIGATION
TAX INCREMENT REFUNDING BONDS, SERIES 2004A
AND PROVIDING FOR THEIR ISSUANCE
BE IT RESOLVED by the City Council of the City of St. Louis Park, Hennepin County,
Minnesota (the "City") as follows:
Section 1. Recitals.
1.01. By resolution approved March 1, 2004 (the "Prior Resolution"), the City awarded the
sale of its $7,490,000 General Obligation Tax Increment Refunding Bonds, Series 2004A (the "Series
2004A Bonds") in order to refund certain outstanding obligations of the City.
1.02. The Bonds are secured by certain tax increments from certain tax increment financing
districts in the City pursuant to the Tax Increment Pledge Agreement between the City and the St.
Louis Park Economic Development Authority (the "EDA") dated April 7, 2004 (the "Pledge
Agreement").
1.03. In the Pledge Agreement, the EDA pledged certain tax increments (the "Available Tax
Increments") derived from certain identified tax increment financing districts ("TIF Districts") to the
Series 2004A Bonds, to the extent required to meet, with other pledged sources, 105 percent of the
principal and interest requirements on the Series 2004A Bonds.
1.04. By resolution approved this date, the City has authorized the defeasance of a portion of
the Bonds consisting of the principal amount maturing in years 2010 through 2016, and in connection
with such action has reviewed a Supplement to Tax Increment Pledge Agreement between the City and
EDA (the "Pledge Agreement Supplement").
1.05. It is determined that the estimated collection of Available Tax Increment, taking into
account the partial defeasance of the Series 2004A Bonds, that has been and will be allocated to the
Series 2004A Bonds through final maturity, is at least 20 percent of the principal and interest payable
on the Series 2004A Bonds, all within the meaning of Minnesota Statutes, Section 475.58.
1.06. The City has determined to modify the Prior Resolution in order to recognize the
reduced amount of Available Tax Increment available to pay the remaining maturities of Series 2004A
Bonds in light of the application of such revenues to the partial defeasance of the Series 2004A Bonds
and other parity uses of such revenues.
Resolution No. 09-100 -2-
Section 2. Prior Resolution Modified; Taxes Levied; Pledge Agreement Supplement Approved.
2.01. Section 4.05 of the Prior Resolution is hereby modified to delete the existing language
and substitute the following:
4.05. For the purpose of paying the principal of and interest on the Series 2004A
Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property
in the City, which will be spread upon the tax rolls and collected with and as part of other
general taxes of the City. The tax will be credited to the Debt Service Fund and is in the years
and amounts as follows (year stated being year of collection):
Year L
2016
2017
2.02. Nothing in this resolution alters or affects the City's pledge of its full faith and credit to
the Series 2004A Bonds.
2.03. The City Clerk is directed to file a certified copy of this Resolution with the Director of
Property Records and Revenue of Hennepin County.
2.04. It is determined that the estimated collection of the foregoing taxes together with
Available Tax Increments collected pursuant to the Pledge Agreement, as modified by the Pledge
Agreement Supplement, will produce at least five percent in excess of the amount needed to meet when
due, the principal and interest payments on the Series 2004A Bonds maturing in years 2017 and 2018.
The tax levy herein provided is irrepealable until all of the Series 2004A Bonds are paid, provided that at
the time the City makes its annual tax levies the City Manager may certify to the Director of Property
Records and Revenue the amount available in the Debt Service Account to pay principal and interest
due during the ensuing year, and the Director of Property Records and Revenue will thereupon reduce
the levy collectible during such year by the amount so certified.
2.05. The City approves the Pledge Agreement Supplement in substantially the form on file
in City Hall, and the Mayor and City Manager are authorized to execute such Pledge Agreement
Supplement.
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Resolution No. 09-100 -3-
Member Sanger introduced the following written resolution and moved its adoption, the
reading of which was dispensed with by unanimous consent.
The motion for the adoption of the foregoing resolution was duly seconded by Member
Paprocki, and upon vote being taken thereon, the following voted in favor thereof: Jacobs, Finkelstein,
Sanger, Basill and Paprocki.
and the following voted against: None
whereupon said resolution was declared duly passed and adopted.
Re ewe •I f. r Administration
1,1
Adopted by;he-eityouncil July 27, 2009
7' ) f�
City 7.1. ger Mayor
Attest:
City Clerk