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HomeMy WebLinkAbout03-07 - ADMIN Resolution - Economic Development Authority - 2003/07/07ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 03-07 RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH BELTLINE INDUSTRIAL PARK, INC. AND AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS $996,000 TAX INCREMENT REVENUE NOTE, SERIES 2003 BE IT RESOLVED BY the Board of Commissioners (Board") of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The Authority and the City of St. Louis Park have heretofore approved the establishment of its Wolfe Lake Commercial Tax Increment Financing District. (the "TIF District") within Redevelopment Project No. 1 ('Project"), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Development District. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell its $996,000 Tax Increment Revenue Note, Series 2003 (the "Note") for the purpose of financing certain public costs of the Project. 1.02. Agreement Approved; Issuance, Sale, and Terms of the Note. The Authority hereby approves the Contract for Private Redevelopment between the Authority and Belt Line Industrial Park Inc. (the "Agreement'), and authorizes the President and Executive Director to execute such Agreement in substantially the form on file with City, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. The Authority hereby delegates to the Executive Director the determination of the date on which the Note is to be delivered, in accordance with the Agreement. The Note shall be sold to Belt Line Industrial Park Inc. (the "Owner"), shall be dated the date of delivery thereof, and shall bear interest from the date of issue at the rate of 7.5 percent per annum to the earlier of maturity or prepayment. The Authority shall receive in exchange for the sale of the Note the evidence that the Owner paid Public Redevelopment Costs as defined in the Agreement, in at least the principal amount of the Note. Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue: EDA Resolution No. 03-07 -2- UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $996,000 TAX INCREMENT REVENUE NOTE SERIES 2003 Rate 7.50% Date of Original Issue The St. Louis Park Economic Development Authority ("Authority") for value received, certifies that it is indebted and hereby promises to pay to Belt Line Industrial Park Inc. or registered assigns (the "Owner"), the principal sum of $996,000 and to pay interest thereon at the rate of 7.50% per annum, as and to the extent set forth herein. 1. Payments. Principal and interest ('Payments") shall be paid on August 1, 2005 and each February 1 and August I thereafter to and including February 1, 2023 ('Payment Dates") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the date of issue through and including February 1, 2005 shall be compounded semiannually on February 1 and August 1 of each year and added to principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a year of 360 days and charged for actual days principal is unpaid. 3. Available Tax Increment. Payments on this Note are payable on each Payment Date solely from and in the amount of "Available Tax Increment," which shall mean, on each Payment Date, 95% of the Tax Increment attributable to the Redevelopment Property that is paid to the Authority by Hennepin County in the six months preceding the Payment Date, all as such terms are defined in the Contract for Private Redevelopment between the Authority and Owner dated as of July 7, 2003 (the "Agreement). The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of the Authority to pay the entire amount of principal or interest on this Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment. The Authority shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2023, except from Available Tax Increment attributable to property taxes paid in prior years. EDA Resolution No. 03-07 -3- 4. Default. Upon an Event of Default by the Redeveloper Linder the Agreement, the Authority may exercise the remedies with respect to this Note described in Section 9.2 of the Agreement, the terms of which are incorporated herein by reference. 5. Optional Prepayment. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Note. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $996,000, issued to aid in financing certain public development costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on July 7, 2003, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. EDA Resolution No. 03-07 0 IN WITNESS WHEREOF, the Board of Commissioners of the St. Louis Park Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. Approved by the Board of Commissioners of the St. Louis Park Economic Development Authority this 7h day of July, 2003. Reviewed for Administration: ,,execiTtive Director ATTEST: SgZretary resident