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HomeMy WebLinkAboutResolution No. 2007-122RESOLUTION NO. 2007-122 CITY OF COLUMBIA HEIGHTS, MINNESOTA CONSENTING TO AND APPROVING THE ISSUANCE BY THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA OF TAX INCREMENT REVENUE BONDS TO FINANCE CERTAIN PUBLIC REDEVELOPMENT COSTS OF THE HUSET PARK AREA TAX INCREMENT FINANCING DISTRICT WITHIN THE DOWNTOWN CBD REDEVELOPMENT PROJECT UNDER MINNESOTA STATUTES, SECTIONS 469.174-469.1799, AS AMENDED BE IT RESOLVED By the City Council of the City of Columbia Heights, Minnesota (the "City") as follows: Section 1. Findings 1.01. The Columbia Heights Economic Development Authority (the "Authority") and the City previously established the Huset Park Area Tax Increment Financing District (the "TIF District") pursuant to authority granted by Minnesota Statutes, Sections 469.174-469.1799, as amended (the "Tax Increment Act"), within the Downtown CBD Redevelopment Project (the "Redevelopment Project"), and adopted a tax increment financing plan for the purpose of financing certain improvements within the TIF District. In order to provide for the redevelopment of the Redevelopment Project and the TIF District, the Authority entered into a Contract for Private Redevelopment, dated as of October 25, 2004, between the Authority, the City and the Redeveloper, as amended by an Amended and Restated Contract for Private Redevelopment thereto dated August 1, 2007 (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 Redevelopment Project and to pledge tax increment revenues derived from a tax increment financing district established within the Redevelopment Project to the payment of the principal of and interest on such obligations. 1.03. On July 24, 2007, the Board of Commissioners (the "Board") of the Authority is scheduled to consider a resolution. (the "Bond Resolution"}, authorizing the issuance of its Tax Increment Revenue Bonds (Huset Park Area Redevelopment Project) Series 2007 (the "Bonds"), in a principal amount not to exceed $3,200,000. The Bonds are proposed to be issued pursuant to the terms of the Bond Resolution and a Paying Agent Agreement, dated on or after August 1, 2007 (the "Paying Agent Agreement"), between the Authority and a paying agent to be designated by the Authority (the "Paying Agent"). The Bonds shall be secured by the terms of the Paying Agent Agreement and shall be payable solely from Available Tax Increment (as defined in the Paying Agent Agreement) that is expressly pledged to the payment of the Bonds pursuant to the terms of the Paying Agent Agreement. 1..04. Pursuant to City Council Resolution No. 2001-62 (the enabling resolution for the Authority), the City Council must approve the issuance of bonds by the Authority. Section 2. Approval of Bonds. 2.01. The City Council hereby approves and consents to the issuance by the Authority of the Bonds upon t11e terms and. pursuant to the conditions set forth. in the Band Resolution and the Paying Agent Agreement. The City Council approves and consents to the application of the proceeds derived from the sale of the Bonds to the financing of certain public redevelopment costs of the Redevelopment Project, the payment of the costs of issuance and other related costs with respect to the Bonds, and the 1 U11V.{til~ Vl lll~. 1\liJ~l VV 1 t111LL. 2.02. As provided in the Paying Agent Agreement and the Bonds, the Bonds are not to be payable from nor charged upon any funds of the Authority or of the City, other than the revenues pledged to the payment thereof; the Authority and the City are not subject to any liability thereon except fram such revenues pledged to the payment thereof, and no holders of the Bonds shall ever have the right to compel any exercise of the taxing powers of the Authority or the City (other than as contemplated by the pledge of tax increment revenues under the terms of the Paying Agent Agreement) to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the Authority or City other than the property expressly pledged thereto; the Bonds shall not constitute a charge, lien., or encumbrance, legal or equitable, upon any property of the Authority or the City other than the revenues expressly pledged thereto; each Bond issued under the Paying Agent Agreement shall recite that the Bonds are issued without a pledge of the general or moral obligation of the Authority, and that the Bonds, including interest thereon, are payable solely from the revenues pledged to the payment thereof; and no Bond shall constitute a debt of the Authority or the City within the meaning of any constitutional, statutory, or charter limitation. Passed. and adopted this _ day of Offered by: Diehm Second: Kelzenberg Roll Call: Ayes: Peterson, Williams, Nawrocki, Diehm, Kelzenberg Attest: Patricia Muscovitz, CMC City Clerk 2