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HomeMy WebLinkAboutEDA RES 2004-18EDA RESOLUTION NO. 2004-18 RESOLUTION AUTHORIZING EXECUTION OF A TAX INCREMENT PLEDGE AGREEMENT WITH ~ CITY OF COLUMBIA HI~IGHTS, MINNESOTA RELATING . TO THE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2004A OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, a body corporate and politic and a political subdivision of the State of Minnesota ("EDA"), as follows: WHEREAS, the EDA has been established pursuant to Minnesota Statutes, Sections 469.090 through 469.108, as amended (the "EDA Act"), to promote development and redevelopment within the City of Columbia Heights, a home rule charter city and a political subdivision of the State of Minnesota (the "City"); and WHEREAS, the EDA's goals include recognizing the practical impediments to development and redevelopment in areas of the community which are fully developed and offering public assistance for projects which advance its goals; and WHEREAS, the EDA further recognizes that there are special development and redevelopment challenges with regard to property in certain areas of the community which contain institutional uses which are beyond their useful life and which are in need of redevelopment or improvement; and WHEREAS, the City Council of the City and the Housing and Redevelopment Authority in and for the City ("HRA") previously established the Central Business District Revitalization District ("TIF District Nos. A3 and C7") and University Avenue Redevelopment Project ('~rlF District No. C8") (together, the "TIF Districts") within the Downtown CBD Redevelopment Project (the "Project") in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and predecessor statutes (the "HRA Act") and 469.174 through 469.1799, as amended and predecessor statutes (the "TIF Act"); and WHEREAS, the control, authority and operation of the TIF Districts and the Project were transferred fi:om the I-IRA to the EDA by a resolution of the City Council of the City pursuant to Minnesota Statutes, Section 469.094, as amended; and WHEREAS, in order to help finance a portion of the public redevelopment costs of the Project, the City previously issued, pursuant to Section 469.178, subdivision 2, as amended, and Minnesota Statutes, Chapter 475, as amended (collectively, the "Act"), the City's General Obligation Tax Increment Capital Appreciation Bonds of 1990, Series A, dated August 23, 1990 (the "Prior Bonds"); and WHEREAS, pursuant to authority conferred to the City by the Act, the City has agreed to refund the Prior Bonds through the issuance of the City's General Obhgation Tax Increment Refunding Bonds, Series 2004A, in the approximate original aggregate principal amount of $1,985,000 (the "Bonds"); and WHEREAS, on November 22, 2004, pursuant to Resolution No. 2004-82 (the "Bond Resolution") of the City Council of the City, the City has authorized the issuance, sale and delivery of the Bonds and the City has awarded the Bonds to the original purchaser thereof; and WHEREAS, the EDA has agreed to pledge certain tax increment revenues from the TIF Districts to the City for the payment of the principal of, premium, if any, and interest on the Bonds; and WHEREAS, a Tax Increment Pledge Agreement, dated on or after December I, 2004 (the "Pledge Agreement"), between EDA and the City has been presented to the EDA; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, as follows: 1. The President and Executive Director of the EDA are hereby authorized to execute and deliver the Pledge Agreement substantially in the form on file with the City. 2. The form of the Pledge Agreement on file with EDA on the date hereof is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such form and as the President of the EDA, in his discretion, shall determine; provided that the execution thereof by the President of the EDA shall be conclusive evidence of such determination. 3. If for any reason the President of the EDA is unable to execute and deliver the Pledge Agreement or the other documents required for pledge of the tax increments to the Bonds, any other member of the governing body of the EDA, or any officer or employee of the EDA duly delegated to act on behalf of the President, may execute and deliver such documents with the same force and effect as if such documents were executed by the President. If for any reason the Executive Director of the EDA is unable to execute and deliver the Pledge Agreement or the other documents required for the pledge of the tax increments to the Bonds, any other member of the governing body of the EDA, or any officer or employee of the EDA duly delegated to act on behalf of the Executive Director, may execute and deliver such documents with the same force and effect as if such documents were executed by the Executive Director. 4. This resolution shall be effective from and after its passage. The question was on adoption of the resolution and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: WHEREUPON SAID RESOLUTION WAS DECLARED DULY PASSED AND ADOPTED THIS 6t~ DAY OF DECEMBER, 2004. COLUMBIA I~.IGHTS ECONOMIC DEVELOPMENT AUTHORITY Its Presi~ent- Don Mur~ ~. ~/ ATTEST: Its Secretary- Cher Bakken BWJ-255661vl CL162-27