HomeMy WebLinkAboutOrdinance No. 1564ORDINANCE N0.1564
ORDINANCE PROVIDING FOR T`HE ISSUANCE AND SALE OF APPROXIMATELY $930,000
GENERAL OBLIGATION TAXABLE TAX INCREMENT FINANCING BOND5, SERIES 2009B
'THE CITY OF COLUMBIA HEIGHTS DOES ORDAIN:
It is hereby determined that:
(a) The City of Columbia Heights, Minnesota (the "City") and the Columbia Heights Economic Development
Authority (the "Authority") duly established the Kmart/Central Avenue Tax Increment Financing District (the "TIF
District"} within the Downtown CBD Redevelopment Project (the "Project"} pursuant to Minnesota Statutes, Sections
469.174 through 469.1799 (the "TIF Act") and Sections 469.001 to 460.047, which TIF District was filed for
certification by the Anoka County Auditor on July 23, 2004.
(b) Pursuant to Section 469.175, Subdivision 4 of the TIF Act, the City and Authority are authorized to expand the
boundaries of the TIF District by no later than July 23, 2009, which is five years after the date of certification of the TIF
District.
(c) The City and Authority have initiated the process to expand the boundaries of the TIF District in order to
facilitate various redevelopment activities in the expanded area of the T1F District, including without limitation
acquisition of foreclosed housing. The City expects to hold a public hearing and consider a modification of the TIF
District boundaries and the tax increment financing plan therefor (the "TIF Plan") on May 11, 2009.
(d) The City is authorized by the TIF Act and Minnesota Statutes, Chapter 475, as amended, to issue general
obligation tax increment bonds in order to finance public redevelopment costs of the Project in accordance with the TIF
Plan for the TIF District.
(e) It is necessary and expedient to the sound financial management of the affairs of the City to issue its General
Obligation Taxable Tax Increment Bonds, Series 2009B (the "Bonds") in a principal amount not to exceed $930,000 to
provide financing for certain public redevelopment costs of the Project, including without limitation. the acquisition of
certain foreclosed homes located in the TIF District, as proposed to be expanded.
2. The City is authorized by Minnesota. Statutes, Section 475.60, Subdivision 2(6), to negotiate the sale of the Bonds, it
being determined that interest on the Bonds cannot be represented to be excluded from gross income for purposes of federal
income taxation.
3. Ehlers & Associates, as financial. advisor to the City, is authorized to negotiate the sale of the Bonds in the maximum
principal amount specified ifi Section 1(e), in accordance with the tet•ms of proposal approved by the City Manager and the City
Finance Director. The City Council will meet on June 8, 2009 or such other date specified by the City Manager in accordance
with the Charter, to consider the sale of the Bonds and take any other appropriate action with respect to the Bonds; provided that
such sale shaiP be scheduled after City Council approval of the amendment to the TIF Plan described in Section i, and no later
than July 23, 2009.
4. This Ordinance shall be in full force and effect from and after thirty (30) days after its passage.
First Reading: April 13, 2009
Second Reading: Apri127, 2009
Date of Passage: April 27, 2009
Offered. By: Williams
Seconded By: Kelzenberg
Rall Cali: Ayes: Peterson, Williams, Diehm, Kelzenberg Nay: Nawrocki
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ATTEST: ~'"?`~e.,~~ .~~,~_., t ~,.._~;-v-,--i~"=
'Patricia Muscovitz CMC City Cler
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Mayor ary L. Peterson