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HomeMy WebLinkAbout2016-50CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO. 2016-50 CONSENTING TO AND APPROVING THE ISSUANCE BY THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY OF TAX INCREMENT REVENUE REFUNDING BONDS BE IT RESOLVED by the City Council (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 through 469. 1794, 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 an Amended and Restated Contract for Private Redevelopment, dated as of August 1, 2007, between the Authority, the City, and BNC National Bank, as successor in interest to Huset Park Development Corporation, dated as of August 1, 2007, as amended, and pursuant to the Second Amended and Restated Contract for Private Redevelopment, dated October 30, 2015 (the "Contract ") between the Authority, the City, and Columbia Heights Leased Housing Associates I, LLLP, a Minnesota limited liability limited partnership (the "Redeveloper "). 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 August 3, 2007, the Authority issued its Tax Increment Revenue Bonds (Huset Park Area Redevelopment Project), Series 2007 (the "Prior Bonds "), in the original aggregate principal amount of $2,890,000, pursuant to the TIF Act, Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (collectively, the "Act "). The Authority applied the proceeds of the Prior Bonds to finance certain public redevelopment costs of the Redevelopment Project (the "Project Costs "). The Prior Bonds are currently outstanding in the principal amount of $2,475,000 and are subject to redemption at the option of the Authority on or after August 15, 2015, at a price of par plus accrued interest. 1.04. On the date hereof, the Board of Commissioners (the "Board ") of the Authority has considered a resolution (the "Bond Resolution ") authorizing the issuance of its Tax Increment Revenue Refunding Bonds (Huset Park Area Redevelopment Project), Series 2016 (the "Bonds "). The Bonds are proposed to be issued pursuant to the terms of the Bond Resolution and a First Amendment to Paying Agent Agreement (the "Paying Agent Agreement "), between the Authority and Bond Trust Services Corporation (the "Paying Agent "), which amends the Paying Agent Agreement with respect to the Prior Bonds, dated as of August 1, 2007, between the Authority and the Paying Agent. The Bonds shall be secured by the terms of the Paying Agent Agreement and shall be payable solely from Available Tax 480619v 1 MNI CL205 -63 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. 1.05. 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 the terms and pursuant to the conditions set forth in the Bond 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 refinancing of the Project Costs, the payment of the costs of issuance and other related costs with respect to the Bonds, and the funding of a reserve fund. 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 from 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 by the City Council of the City of Columbia Heights, Minnesota this 13`x' day of June, 2016. Passed this 13th day of June, 2016 Offered by: Williams Seconded by: Murzyn, Jr. Roll Call: All Ayes Attest: Katie Bruno, Council Secretary /City Clerk 480619v] MNI CL205 -63