HomeMy WebLinkAboutResolution 94-22RESOLUTION NO. 94 - 22
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS,
MINNESOTA AUTHORIZING THE ESTABLISHMENT OF AN "INTERFUND LOAN" FOR
THE PURPOSE OF TEMPORARILY FINANCING CERTAIN TAX INCREMENT BOND
DEBT SERVICE OBLIGATIONS OF THE CITY OF COLUMBIA HEIGHTS AND OF THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA
HEIGHTS FOR THE DOWNTOWN C.B.D. REVITALIZATION PROJECT
WHEREAS, the City Council of the City of Columbia HeiGhts,
Minnesota (the "City Council") and the Housing Authority in and for
the City of Columbia Heights, Minnesota did authorize and approve
the establishment of a Redevelopment Project known as the Downtown
C.D.B. Revitalization Project (the "Project") and adopted a
Redevelopment Plan, dated March 2, 1977; and
WHEREAS, the City Council established one or more "tax increment
financing districts" as that term is presently defined as Minnesota
Statutes, Section 469.174, subd. 9 within the boundaries of the
Project; and
WHEREAS, The City Council authorized the issuance of bonds secured
by the pledge of tax increments derived from the tax increment
financing districts located in the Project and the general ad
valorem tax levied upon all taxable property within the City; and
WHEREAS, among the bond issues secured by the pledge of tax
increments and the general ad valorem tax levy are the: (a)
$8,175,000 General Obligation Tax Increment Bonds of 1980; (b)
$450,000 General Tax Increment Bonds of 1982; (c) $565,000 General
Obligation Tax Increment Bonds of 1984; (d) $2,100,000 General
ObliGation Tax Increment Refunding Bonds of 1985, Series A; (e)
$9,100,000 General Obligation Tax Increment Refunding Bonds of
1987; (f) $2,399,720.75 General Obligation Tax Increment Capital
Appreciation Bonds of 1990; and (g) $735,000 General Obligation
Taxable Refunding Bonds of 1993, Series A (the "Bond Issues"); and
WHEREAS, also secured by the pledge of tax increments derived from
the tax increment financing district is the $2,400,000 Housing and
Redevelopment Authority in and for the City of Columbia Heights,
Minnesota Tax Increment Revenue Bonds of 1990; and
WHEREAS, due to litigation as to the valuation of some of the real
property located within the tax increment financing districts, the
City has not received the projected amount of tax increment
required to amortize the Bond Issues according to the debt service
schedule for the outstanding principal amount of the Bond Issues;
and
WHEREAS, the City has monies in the following funds which may be
pledged or loaned to the debt service account(s) for the Bond
Issues so that they may be amortized according to the debt service
schedule for the Bond Issues without the levy of the general ad
valorem tax upon all taxable property with the City: (1) Parking
Ramp Fund No. 290; (2) Four Cities Bond Fund No. 390; and Senior
Housing Bond Fund No. 404; and
WHEREAS, based on projections for the receipt of future tax
increments over the term of the tax increment financing districts,
the amounts borrowed by the City from the Parking Ramp Fund No.
290, Four Cities Bond Fund No. 390, and Senior Housing Bond Fund
No. 404 may be repaid from the estimated, future tax increments
remitted to the Housing and Redevelopment Authority in and for the
City of Columbia Heights.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Columbia Heights, Minnesota that:
The City Council hereby authorizes the establishment of an
"Interfund Loan" to temporarily finance any shortfalls in debt
service for the Bond Issues.
The source of money for the Interfund Loan shall be Parking
Ramp Fund No. 290 in the amount of $408,027, Four Cities Bond
Fund No. 390 in the amount of $446,352, and Senior Housing
Fund No. 404 in the amount of $395,918.
o
The City Administrator is hereby authorized to have loan
documents prepared for the Interfund Loan.
The Mayor and City Manager are authorized to approve and
execute the loan documents which shall memorize the terms of
the Interfund Loan.
Passed this 28th day of March, 1994.
Motion by:
Seconded by:
Roll call:
Ruettimann
Peterson
All ayes
~o-Anne Student ~C-duncil
//~a¥~- ~'oSep-h Sturdevant
Secretary
ATTEST:
I hereby certify that the aforegoing resolution is a true and
correct copy of the resolution presented to and adopted by the City
Council of the City of Columbia Heights at a duly authorized
meeting thereof held on the 28th day of March, 1994, as shown by
t~'~ m~ of the said meeting in my presence.
~'-Anne Student, Deputy City Clerk