HomeMy WebLinkAbout10-15 - ADMIN Resolution - Economic Development Authority - 2010/09/07ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 10-15
RESOLUTION PROVIDING FOR THE ISSUANCE OF TAX EXEMPT
TAX INCREMENT REVENUE REFUNDING BONDS, SERIES 2010
(HOIGAARD VILLAGE)
BE IT RESOLVED By the Board of Commissioners (the "Board") of the St. Louis Park
Economic Development Authority (the "Authority"), as follows:
Section 1. Recitals.
1.01. The City of St. Louis Park (the "City") and 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 Increment as defined in such notes and in the Contract.
1.03. Section 7.4 of the Contract provides that if requested by the Redeveloper, the Authority
will refinance the outstanding principal amount of any Initial Note (as defined in the Contract) by
issuing one or more tax-exempt tax increment revenue notes or bonds, upon satisfaction of certain
conditions described in the Contract.
1.04. Pursuant to Minnesota Statutes, Section 475.67, subdivision 3 and Section 475.79,
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.
1.05. The Authority hereby finds and determines that (a) it is in the best interests of the
Authority that it issue and sell its Tax Increment Revenue Refunding Bonds (Hoigaard Village), Series
2010 (the "Bonds") in an aggregate principal amount not to exceed $4,500,000 for the purpose of
EDA Resolution No. 10-15 -2-
refinancing the outstanding principal amount of the Series 2006A Note and the Series 2007A Note,
paying costs of issuance, and funding a debt service reserve fund; and (b) that the conditions described
in the Contract for issuance of the Bonds have been met. The Bonds will be sold in two series
consisting of the following: Series A Bonds having a senior lien on the Available Tax Increment, to be
issued in the maximum principal amount that can be supported by projected tax increment revenue
from the Redevelopment Property and with such coverage factor as determined by Dougherty &
Company as underwriter for the issuance of the Series A Bonds (the "Underwriter"), in consultation
with Ehlers & Associates as fiscal advisor to the Authority ("Ehlers"), to be necessary to issue the Series
A Bonds; and a Series B Note having a subordinate lien on the Available Tax Increment, in a principal
amount necessary to generate additional proceeds necessary for such purposes. The Authority has
approved the selection of the Underwriter pursuant to Section 7.4 of the Contract.
1.06. Under Section 469.178, subdivision 3 of the Tax Increment Act, the Authority may
sell the Bonds in the manner and for the price that the Authority determines to be in the best
interest of the Authority.
Section 2. Authorizations.
2.01. The Authority hereby determines to proceed with the sale of the Series A Bonds by
direct negotiation with the Underwriter and the Series B Note by direct negotiation with a private
investor (the "Purchaser").
2.02. The Authority authorizes the preparation and distribution by the Underwriter of a
preliminary official statement to be used in connection with the marketing of the Series A Bonds:
2.03. The Authority further authorizes Authority staff to negotiate the terms of the Bonds
with the Underwriter and the Purchaser, with consultation from Ehlers, and authorizes the
Executive Director of the Authority to execute a bond purchase agreement for the Series A Bonds
with the Underwriter.
2.04. Upon conclusion of successful negotiation by Authority staff, the Board will take
at its next regularly scheduled meeting thereafter to adopt the necessary bond sale resolution
red by the Authority's bond counsel.
for Administration: Adopted by the Economic Development Authority
A September 7, 2010
resident
Attest