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HomeMy WebLinkAbout10-088 - ADMIN Resolution - City Council - 2010/09/07RESOLUTION NO. 10-088 CITY OF ST. LOUIS PARK, MINNESOTA CONSENTING TO AND APPROVING THE ISSUANCE BY THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY OF ITS TAX-EXEMPT TAX INCREMENT REVENUE REFUNDING BONDS, SERIES 2010 BE IT RESOLVED By the City Council of the City of St. Louis Park, Minnesota (the "City") as follows - Section 1. Findings 1.01. The City and the St. Louis Park Economic Development Authority (the "Authority") have heretofore approved the establishment of the Elmwood Village Tax Increment Financing District (the "TIF District") within Redevelopment Project No. 1 (the "Project"), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. In order to provide for the redevelopment of the Project and the TIF District, the Authority entered into a Contract for Private Redevelopment, dated as of March 6, 2006, between the Authority and Union Land II, LLC (the "Redeveloper"), as amended (the "Contract") 1.02. Pursuant to Section 469.178 of the Tax Increment Act, the Authority is authorized to issue and sell its bonds for the purpose of financing or refinancing public redevelopment costs of the Project and to pledge tax increment revenues derived from a tax increment financing district established within the Project to the payment of the principal of and interest on such obligations The Authority previously issued and sold its Taxable Tax Increment Revenue Note (Hoigaard Village Project), Series 2006A in the aggregate principal amount of $1,663,000 (the "Series 2006A Note") and its Taxable Tax Increment Revenue Note (Hoigaard Village Project), Series 2007A in the aggregate principal amount of $2,540,000 (the "Series 2007A Note") for the purpose of financing certain public redevelopment costs of the Project The Series 2006A Note and the Series 2007A Note are payable solely from Available Tax Increments as defined in such notes and in the Contract 1 03. Pursuant to Minnesota Statutes, Section 475.67, subdivision 3, the Authority is authorized to issue and sell its bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the Authority, in the case of obligations payable solely from a special fund, to be necessary and desirable for the more advantageous sale of additional obligations paid from the same fund The Authority has determined that it is necessary and desirable to issue and sell its Tax Increment Revenue Refunding Bonds (Hoigaard Village Project), Series 2010, in the aggregate principal amount not to exceed $4,500,000 to refund the outstanding principal of the Series 2006A Note and the Series 2007A Note. The Bonds are proposed to be issued pursuant to the terms of a Bond Resolution dated on or after September 20, 2010. The Bonds shall be payable solely from Available Tax Increment (as defined in the Bond Resolution) that is expressly pledged to the payment of the Bonds pursuant to the terms of the Bond Resolution. Resolution No. 10-088 -2- 1.04. Pursuant to the Enabling Resolution Establishing an Economic Development Authority for the City of Saint Louis Park, dated November 3, 1988 (the "Enabling Resolution"), the sale of all bonds or obligations issued by the Authority must be approved by the Council before issuance. Section 2. Approval of Bonds. 2.01 The City Council hereby approves and consents to the issuance by the Authority of the Bonds upon the terms and pursuant to the conditions set forth in the Bond Resolution. The City Council approves and consents to the application of the proceeds derived from the sale of the Bonds to the refunding of the Series 2006A Note and the Series 2007A Note, the payment of the costs of issuance and other related costs with respect to the Bonds, and the funding of a Reserve Fund for the Bonds. 2.02. As provided in the Bond Resolution, the Bonds are not to be payable from nor charged upon any funds of the Authority or of the City, other than the revenues pledged to the payment thereof; the Authority and the City are not subject to any liability thereon except from such revenues pledged to the payment thereof, and no holders of the Bonds shall ever have the right to compel any exercise of the taxing powers of the Authority or the City (other than as contemplated by the pledge of tax increment revenues under the terms of the Bond Resolution) to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the Authority or City other than the property expressly pledged thereto; the Bonds shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Authority or the City other than the revenues expressly pledged thereto; each Bond issued under the Bond Resolution shall recite that the Bonds are issued without a pledge of the general or moral obligation of the Authority, and that the th c reof; ds, including interest thereon, are payable solely from the revenues pledged to the payment d no Bond shall constitute a debt of the Authority or the City within the meaning of any nal, statutory, or charter limitation stituti Re `: ministration CityMan.ge lir Mayor Ado!), d by he City Council September 7, 2010 Attest. ---)ia/YLe-4),__>a/tAAIA=. 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