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Home My WebLink About01-05 - ADMIN Resolution - Economic Development Authority - 2001/04/16EDA RESOLUTION NO. 01-05 ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT WITH THE CITY OF ST. LOUIS PARK RELATING TO $7,650,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2001A WHEREAS, the City previously issued its $13,000,000 Taxable General Obligation Variable Rate Demand Tax Increment Bonds, Series 1997B, of the City, dated May 20, 1997 (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 the principal amount of $7,650,000, designated the Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A, 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 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. 2. This resolution shall be effective as of the date hereof. Reviewed for Administration: Adopted on April 16, 2001 P�fl- j"--, G�cculivc l"rect7l President Attest: Secretary EDA Resolution No. 01-05 TAX INCREMENT PLEDGE AGREEMENT by and between CITY Or ST. LOUIS PARK, MINNESOTA and ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY THIS AGREEMENT is made and entered into on or as of the 16th day of April, 2001, 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 (collectively referred to herein as the 'Districts") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, 472A, and Sections 469.174 to 469.179 and predecessor statutes (Act). 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 $13,000,000 Taxable General Obligation Variable Rate Demand Tax Increment Bonds, Series 1997B, of the City, dated May 20, 1997 (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: $7,195,000 General Obligation Tax Increment Refunding Bonds of 1994 (the "Series 1994 Bonds") $9,570,000 General Obligation Tax Increment Bonds, Series 1996 (the "Series 1996 Bonds") $7,000,000 General Obligation Tax Increment Bonds, Series 1997A (the "Series 1997A Bonds") $4,290,000 General Obligation Tax Increment Bonds, Series 1998 (the "Series 1998 Bonds") The Series 1994 Bonds and Series 1996 Bonds are referred to collectively as the "Prior Bonds;" and the Series 1997A Bonds and Series 1998 Bonds are referred to as the "Parity Bonds." Tax Increment Pledge Agreement -2- EDA Resolution No. 01-05 F. The tax increment attributable to the Districts (in accordance with the Act) received each year by the EDA from Hennepin County, after payment or provision for payment from such revenues of the principal, interest and any redemption price due in such year on the Prior Bonds, is referred to as the "Available Tax Increment." G. In connection with issuance of the ' eries 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 1998 Bonds, the City and EDA pledged Available Tax Increment (or portions thereof) to the Series 1998 Bonds on a parity, superior, or subordinate basis with any other obligations permitted by law. The pledge of Available Tax Increment to these Parity 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 $7,650,000, designated the Taxable General Obligation Tax Increment Refunding Bonds, Series 2001A, and hereinafter referred to as the 'Bonds." 1. The EDA has agreed to pledge Available Tax Increment to the City for the principal and interest on the Bonds, subject to the Parity Pledge to the Parity Bonds, and has further agreed to appropriate certain other funds needed to prepay the Refunded Bonds. 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 in April 16, 2001 (the "Bond Resolution"). (2) The proceeds from the sale of the bonds will be applied in accordance with the Bond Resolution. (3) The EDA also pledges and appropriates to the City, for credit to the debt service fund for the Refunded Bonds, the amount needed (together with proceeds of the Bonds less deductions described in the Bond Resolution) to prepay the outstanding principal and interest on the Refunded Bonds. The amounts pledged and appropriated under this Section will be transferred on the date or dates determined by the Finance Director for redemption of the Refunded Bonds, and will be drawn from available funds in the accounts for the Oak Park Village Redevelopment Project and the Highway 7 Development District (allocated as determined by the Finance Director). (4) Subject to the Parity Pledge, at least three (3) business days prior to each debt service payment date for the Bonds, there shall be transferred from the account for any of the Districts to the Debt Service Fund maintained by the City for the payment of the Bonds, an amount of 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 the subject payment Tax Increment Pledge Agreement -3- EDA Resolution No. 01-05 date. Any Available Tax Increment in excess of 105% of the principal and interest due with respect to the Bonds on any payment date may be retained by the EDA in the account for the respective Districts and applied to any costs of the Project Area in accordance with law, The Finance Director may select the District or Districts from which Available Tax Increment will be drawn. (5) Without regard to anything in this, Agreement to the contrary, 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. (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. 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. City Manager ATTEST: City Clerk Executive Director ATTEST: EDA Secretary CITY OF ST. LOUIS PARK, MINNESOTA LM Mayor ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By President