Loading...
HomeMy WebLinkAbout98-05 - ADMIN Resolution - Economic Development Authority - 1998/12/07BOARD OF COMMISSIONERS OF THE THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 98 - RESOLUTION CONCURRING IN A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1998, AND AUTHORIZING OTHER RELATED ACTIONS A. WHEREAS, the City Council of the City of St. Louis Park, Minnesota (the "City"), on November 16, 1998, adopted a resolution entitled "Resolution Accepting Proposal on Sale of Approximately $4,305,000 General Obligation Tax Increment Bonds, Series 1998, and Providing for Their Issuance", setting forth various terms of said bonds (the "Bonds") and accepting a proposal for the Bonds and setting the interest rates and purchase price thereof; and B. WHEREAS, the Bonds are tax increment bonds which provide moneys to refund and redeem on or prior to March 1, 1999, the outstanding bonds of the City's following issues: $6,500,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, and $2,100,000 General Obligation Tax Increment Bonds, Series 1987-B (collectively, the "Prior Bonds"); and C. WHEREAS, the Bonds are payable from tax increments from tax increment districts under the control of the St. Louis Park Economic Development Authority (the "EDA"): NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the St. Louis Park Economic Development Authority, Minnesota, as follows: 1. Concurrence. The EDA hereby concurs in the Bond Resolution, and all provisions therein are her -by incorporated by reference in this resolution and joined in, adopted, approved and ratified, including all of the covenants and agreements therein, with the same force and effect as if the Bond Resolution had been adopted by the EDA. 2. Tax Increment Pledge Agreement. The President and Executive Director are hereby authorized and directed to enter into a Tax Increment Pledge Agreement relating to the Bonds, substantially in the form presented at the meeting at which this resolution is adopted. In the absence of the Executive Director and Secretary, any one or more other officers of the EDA may execute such Tax Increment Pledge Agreement. 3. Records and Certificates. The officers of the EDA are hereby authorized and directed to prepare and furnish to the purchasers of the Bonds, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the EDA relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the EDA as to the facts recited therein. I CERTIFY THAT the above resolution was adopted by the St. Louis Park Economic Development Authority on December 7, 1998. Reviewed for Administration: Attest ecretary M Adopted by the Eonomic Development Authority TAX INCREMENT PLEDGE AGREEMENT This Tax Increment Pledge Agreement (the "Agreement") is dated as of December 1998; is by and between the City of St. Louis Park, Minnesota (the "City"), and the St. Louis Park Economic Development Authority (the "EDA"); and provides as follows: A. WHEREAS, the City Council on November 16, 1998, adopted a resolution (the "Bond Resolution") awarding the sale of the City's $ ` �:z U Uco General Obligation Tax Increment Bonds, Series 1998 (the "Bonds"), to refund outstanding bonds of the City's $6,500,000 Variable Rate Demand General Obligation Tax Increment Bonds, Series 1985, and $2,100,000 General Obligation Tax Increment Bonds, Series 1987-B, and hence to continue to provide financing for certain public improvements, specifically parking facilities and related improvements (the "1985 Project"), within and for the benefit of the Excelsior Boulevard Redevelopment District and Project (the "Excelsior Boulevard Tax Increment District"), and land acquisition and public improvements (the "1987 Project") within Development District No. 3 (the "Trunk Highway Tax Increment District"); and B. WHEREAS, the Excelsior Boulevard Tax Increment District was established as a redevelopment district by the Housing and Redevelopment Authority in and for the City of St. Louis Park, Minnesota (the "HRA"), and has since been transferred to the EDA, and the Trunk Highway Tax Increment District was established by the City and has since been transferred to the EDA; and C. WHEREAS, tax increments from the Excelsior Boulevard Tax Increment District and Trunk Highway Tax Increment District (jointly, the "Tax Increment Districts") have been pledged to the payment of other obligations of the City or EDA; and D. WHEREAS, the Bond Resolution contemplates the pledge of tax increments from the Tax Increment Districts pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, to secure payment of the Bonds and interest thereon; and E. WHEREAS, it is necessary and appropriate for the EDA to enter into a pledge agreement, pledging to the City tax increments in an amount sufficient to pay the principal and interest on the Bonds as the City's general obligation bonds: NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the City and EDA hereby covenant and agree as follows: 1. Pledge of Tax Increments. The EDA pledges, for the payment of the principal of and interest on the Bonds, the tax increments to be received from the Excelsior Boulevard Tax Increment District and Trunk Highway Tax Increment District in any year up to an amount sufficient (1) for the payment of the principal of and interest on the Bonds due on August 1 of such year and February 1 of the succeeding year and (2) for the reimbursement of the City for any principal and interest on the Bonds which the City in or prior to such year has paid from taxes levied on other property within the corporate limits of the City. Tax increments to be received from the Excelsior Boulevard Tax Increment District and Trunk Highway Tax Increment District in excess of the amounts pledged in the prior sentence are not pledged for the payment of the Bonds but may be used for any other lawful purpose. The EDA may pledge tax increments to be received from the Excelsior Boulevard Tax Increment District and Trunk Highway Tax Increment District to any other obligations, purpose or use permitted by law. The priority of any such other pledges shall be determined at the time thereof, and may be superior, subordinate, or on a parity with the pledge to the payment of principal of and interest on the Bonds. A superior or parity pledge of tax increments shall only be made with the consent of the City, but a subordinate pledge may be made without the consent of the City. 2. Remittance. All tax increments of the Excelsior Boulevard Tax Increment District and Trunk Highway Tax Increment District shall be remitted directly to the EDA, and the EDA shall segregate all tax increments so received in a special account on its official books and records. The EDA shall pay over to the City all of said tax increments pledged in paragraph 1 above to the Bonds. The pledge of said tax increments shall be irrevocable until all of the Bonds, and interest thereon, have been fully paid and the City has been fully reimbursed from the tax increments for any principal and interest on the Bonds which may be paid from taxes levied on other property within the corporate limits of the City. 3. Filing. An executed copy of this Agreement shall be filed with the County Auditor of Hennepin County and shall constitute the request and authorization of the EDA and City to the County Auditor and Treasurer to compute, collect and segregate said tax increments in accordance with the provisions of this Agreement and of Minnesota Statutes, Section 469.178, Subdivisions 2 to 4, inclusive, and to remit the same to the EDA. 4. Effective Date. This Agreement shall become effective upon the actual issuance and delivery of the Bonds. EAA '1$-5 IN WITNESS WHEREOF, the City and EDA have caused this Agreement to be duly executed on their behalf and their seals to be affixed hereto, all as of the day and year first above written. Reviewed for Administration Attest:: My Clerk CITY OF ST. LOUIS PARK, MINNESOTA Adopted by the City Council December 7, 1998 ayor Tax Increment Pledge Agreement relating to General Obligation Tax Increment Bonds, Series 1998. THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA Reviewed for Administration: Axccutiv�e Director Attest Secretary Adopted by the Eonomic Development Authority December 7. 1998