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HomeMy WebLinkAbout09-08 - ADMIN Resolution - Economic Development Authority - 2009/05/18ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 09-08 RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT WITH THE CITY OF ST. LOUIS PARK RELATING TO APPROXIMATELY $2,020,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2009A WHEREAS, the City previously issued its $7,650,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A of the City, dated May 1, 2001 (the "Refunded Bonds"); and WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, the City has agreed to refund the Refunded Bonds through the issuance of general obligation bonds of the City in approximately the principal amount of $2,020,000 designated the Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A, and hereinafter referred to as the "Bonds"; and WHEREAS, the EDA has agreed to pledge certain tax increment revenues to the City for the principal and interest on the Bonds, and to appropriate certain other funds in order to prepay the Refunded Bonds; and WHEREAS, the there has been presented to the EDA a Tax Increment Pledge Agreement between the EDA and the City (the "Pledge Agreement") providing for the pledge of certain tax G increments from certain tax increment financing districts in the City to payment of principal and interest on the Refunded Bonds and the Bonds; NOW THEREFORE BE IT RESOLVED by the Board of Commissioners (the "Board") of the EDA, as follows: 1. The President and Executive Director of the EDA are hereby authorized to execute and deliver the Pledge Agreement in substantially the form on file in City Hall. This resolution shall be effective as of the date hereof. Adopted by the Economic Development Authority May 18, 2009 President Attest Secretary EDA Resolution No. 09-08 -2- TAX INCREMENT PLEDGE AGREEMENT by and between CITY OF ST. LOUIS PARK, MINNESOTA and ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY THIS AGREEMENT is made and entered into on or as of the _ day of , 2009, by and between the City of St. Louis Park, Minnesota (the "City"), and St. Louis Park Economic Development Authority (the "EDA"). RECITALS A. The City has duly established the following project areas and tax increment districts: (i) Excelsior Boulevard Redevelopment Project; (ii) Oak Park Village Redevelopment Project; and (iii) the Highway 7 Development District pursuant to Minnesota Statutes, Sections 469.001 through 469.047, 472A, and Sections 469.174 to 469.179 and predecessor statutes (together, the "Act"). The Excelsior Boulevard Redevelopment Project and Oak Park Village Redevelopment Project are referred to together as the "Pre -79 Districts'; the Highway 7 Development District is referred to as the "Highway 7 District'; and all three districts are referred to together as the "Districts." B. The control, authority and operation of the Districts were transferred to the EDA by Resolution No. 88-134 of the City, pursuant to Minnesota Statutes, Section 469.094. C. By Resolution No. 90-4 of the EDA and Resolution No. 90-29 of the City, the geographical areas of the project areas associated with the Districts were expanded and joined (such expanded coterminous area is referred to herein as the "Project Area"). D. In order to finance certain costs of the Project Area, the City issued its $7,650,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A, of the City, dated May 1, 2001 (the "Refunded Bonds"). E. In addition to the Refunded Bonds, there remain outstanding the following bonds issued by the City that are secured in whole or in part with tax increments from one or more of the Districts: $7,000,000 General Obligation Tax Increment Bonds, Series 1997A (the "Series 1997A Bonds") $7,490,000 General Obligation Tax Increment Bonds, Series 2004A (the "Series 2004A Bonds") EDA Resolution No. 09-08 -3- F. The tax increment attributable to the Pre -79 Districts (in accordance with the Act) received each year by the EDA from Hennepin County is referred to as the "Pre -79 Available Tax Increment;" and the tax increment attributable to the Highway 7 district (in accordance with the Act) received each year by the EDA from Hennepin County is referred to as the "Highway 7 Available Tax Increment." G. In connection with issuance of the Series 1997A Bonds, the City and EDA pledged Available Tax Increment (or portions thereof) to the Series 1997A Bonds on a parity basis with the Refunded Bonds. In connection with issuance of the Series 2004A Bonds, the City and EDA pledged Available Tax Increment (or portions thereon to the Series 2004A Bonds on a parity, superior, or subordinate basis with any other obligations permitted by law. The pledge of Pre -79 Available Tax Increment and Highway 7 Available Tax Increment to these prop bonds is referred to as the "Parity Pledge." H. Pursuant to authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, the City has agreed to refund the outstanding Refunded Bonds through the issuance of general obligation bonds of the City in the principal amount of $ , designated the Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A, and hereinafter referred to as the "Bonds." I. The EDA has agreed to pledge Pre -79 Available Tax Increment and Highway 7 Available Tax Increment to the City for the principal and interest on the Bonds, subject to the terms of this Agreement. J. Pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, any agreement to pledge tax increment revenues must be made by written agreement by and between the EDA and the City and must be filed with the Taxpayer Services Division Manager of Hennepin County. NOW, THEREFORE, the City and the EDA mutually agree to the following: (1) The City will sell the Bonds in accordance with the City Council resolution approved on May 18, 2009 (the "Bond Resolution"). (2) The proceeds from the sale of the bonds will be applied in accordance with the Bond Resolution. EDA Resolution No. 09-08 -4- (3) Subject to the Parity Pledge, at least three (3) business days prior to the August 1, 2009 there shall be transferred from the account for either of the Pre -79 Districts (at the discretion of the Finance Director) to the Debt Service Fund maintained by the City for the payment of the Bonds, an amount of Pre -79 Available Tax Increment which, when taken together with amounts already on deposit in such Debt Service Fund, is equal to the principal of and interest on the Bonds to become due on August 1, 2009. The Finance Director may select the Pre -79 District from which Pre -79 Available Tax Increment will be drawn. (4) Subject to the Parity Pledge, at three (3) business days prior to the each debt service payment date on the Bonds after August 1, 2009, there shall be transferred from the account for the Highway 7 district to the Debt Service Fund maintained by the City for the payment of the Bonds, an amount of Highway 7 Available Tax Increment which, when taken together with amounts already on deposit in such Debt Service Fund, is equal to the principal of and interest on the Bonds to become due on such payment date. Any Highway 7 Available Tax Increment in excess of 105% of the principal and interest when due with respect to the Bonds on any payment date may be retained by the EDA in the account for the Highway 7 District an applied to any costs of the Project Area in accordance with law. (5) Without regard to anything in this Agreement to the contrary, Highway 7 Available Tax Increment may be pledged (at the EDA's option on a parity, superior or subordinate basis) to pay principal of and interest on both the Bonds and any other obligations issued by the City, EDA or any other public body to finance public redevelopment costs paid or incurred by the EDA in the Project Area. In accordance with the Act, Pre -79 Available Tax Increment may not expended for any purpose. after August 1, 2009. 1 (6) This Agreement supplements any prior agreements between the City and EDA with respect to pledges of Available Tax Increment. (7) An executed copy of this Agreement shall be filed with the Taxpayer Service Division Manager of County pursuant to the requirement contained in Minnesota Statutes, Section 469.178, Subdivision 2. (The remainder of this page is intentionally left blank) EDA Resolution No. 09-08 -5- IN WITNESS WHEREOF, the City and the EDA have caused this Agreement to be duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested, as of the day and year first above written. ATTEST: City Manager (SEAL) CITY OF ST. LOUIS PARK, MINNESOTA Mayor EDA Resolution No. 09-08 -6- ATTEST: Executive Director (SEAL) ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY President EDA Resolution No. 09-08 STATE OF MINNESOTA -7- TAXPAYER SERVICES DIVISION MANAGER'S CERTIFICATE I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a Tax Increment Pledge Agreement by and between the City of St. Louis Park, Minnesota and the St. Louis Park Economic Development Authority dated as of May 18, 2009, relating to the City's $ Taxable General Obligation Tax Increment Refunding Bonds, Series 2009A, has been filed in my office. WITNESS my hand and official seal this day of (SEAL) 2009. Taxpayer Services Division Manager Hennepin County, Minnesota Deputy