HomeMy WebLinkAboutEDA Resolution No. 2021-11COLT]MBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2O2I-II
RESOLUTION AUTHORIZING EXECUTION OF A TAXINCREMENT PLEDGE AGREEMENT WITH THE CITY OF
COLTJMBIA IIEIGHTS RELATING TO TAXABLE GENERALOBLIGATION TEMPORARY TAX INCREMENT BONDS,
SERTES 2021A, TO BE ISSITED IN THE ESTIMATED
AGGREGATE PRINCIPAL AMOUNT OF $6,000,000
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia Heights Economic
Development Authority (the "Authority") as follows:
Section l. Recitals.
1.01. On the date hereof, the Board approved the establishment of the Alatus TIF District (the
"TIF District"), a redevelopment district within Downtown Central Business Redevelopment Project (the
"Redevelopment Project") within the City, contingent upon the approval by the City Council of the City(the "City Council") on June 14,2027, pursuant to Minnesota Statutes, Sections 469.174 through
469.1794, as amended (the "TIF Act"), and adopted a tax increment financing plan for the TIF District.
1.02. Pursuant to the authority conferred by Section 469.178 of the TIF Act and Minnesota
Statutes, Chapter 475, as amended, and a resolution to be adopted by the City Council on July 72,2021,
the City will issue its Taxable General Obligation Temporary Tax Increment Bonds, Series 2O2lA (the
"Bonds"), in the estimated aggregate principal amount of $6,000,000, to pay all or a portion of the public
redevelopment costs incured or to be incurred within the Redevelopment Project as identified in the TIF
Plan, including but not limited to a bridge loan to be provided to Alatus LLC, aMinnesota limited liability
company, for land acquisition costs, costs of demolition, and costs associated with reports, and Alatus LLC
has agreed to pay the City's financing and other related costs related to issuing the Bonds and making the
loan.
1.03. There has been presented to the Board a Tax Increment Pledge Agreement (the "Pledge
Agreement") between the Authority and the City relating to the payment of principal and interest on the
Bonds and providing for the pledge of tax increment revenues generated from the TIF District to secure
the payment of principal of premium, if any, and interest on the Bonds.
Section 2. Approval
l. The Board hereby approves the pledge to the City of tax increment revenues attributable
to the TIF District for the payment of principal of, premium, if any, and interest on the Bonds.
2. The President and Executive Director of the Authority are hereby authorized to execute
and deliver the Pledge Agreement substantially in the form on file with the Board, providing for the
pledge of tax increment derived from property in the TIF District for the payment of the principal of,
premium, if any, and interest on the Bonds.
3. This resolution shall be effective as ofthe date hereof.
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Approved this 7ft day of June , 2021, by the Board of Commissioners of the Columbia Heights Economic
Development Authority.
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ATTEST:
Secretary
0= I " " CLl62-59-723642.v1 CLl62-59-723642.v1 ,tt6r-59-72304).vl
TAX INCREMBNT PLEDGE AGREEMENT
between
CITY OF COLUMBIA HEIGHTS, MINNESOTA
and
COLTJMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
THIS TAX INCREMENT PLEDGE AGREEMENT is made and entered into on or as of the _
day of July, 2021 (the "Agreement"), between the City of Columbia Heights, Minnesota (the "City"), and
the Columbia Heights Economic Development Authority (the "Authority").
RECITALS
WHEREAS, the City has established and the Authority administers the Alatus TIF District (the
"TIF Disffict"), a redevelopment district within the Downtown Central Business Redevelopment Project
(the "Redevelopment Project"), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as
amended (the "TIF Act"), and the Authority and the City have approved a tax increment financing plan
for the TIF District (the "TIF Plan"); and
WHEREAS, pursuant to the authority conferred by Section 469J78 of the TIF Act and
Minnesota Statutes, Chapter 475, as amended, and a resolution to be adopted by the City Council of the
City on July 72, 2021 (the "Bond Resolution"), the City will issue its Taxable General Obligation
Temporary Tax lncrement Bonds, Series 2021A (the "Bonds"), in the original aggregate principal amount
of $6,000,000, to pay all or a portion of the public redevelopment costs incurred or to be incurred within the
Redevelopment Project as identified in the TIF Plan, including but not limited to a bridge loan to be provided
to Alatus LLC, a Minnesota limited liability company, for land acquisition costs (the "Project Costs"); and
WHEREAS, pursuant to a resolution adopted by the Board of Commissioners of the Authority (the
"Board") on June 7,2021, the Authority has agreed to pledge tax increment revenues attributable to the
TIF District to the City to secure the payment of principal of, premium, if any, and interest on the Bonds;
and
WHEREAS, pursuant to Section 469.178, subdivision 2 of the TIF Act, any agreement to pledge
tax increment revenues must be made by written agreement by and between the Authority and the City
and must be filed with the Manager of Property Records and Taxation, as County Auditor (the "County
Auditor"), of Anoka County, Minnesota (the "County").
NOW, THEREFORE, the City and the Authority mutually agree to the following:
(l) The City will issue the Bonds in accordance with the Bond Resolution.
(2) The proceeds from the sale of the Bonds will be used to finance the Project Costs.
(3) The Authority hereby pledges ninety percent (90%) of the tax increment revenues
generated by the property in the TIF District and received by the Authority (the "Pledged
Tax lncrements") to the payment of principal of and interest on the Bonds, subject to the
terrns of this Agreement. At least three (3) business days prior to each debt service
CLl62-59-723643.v1
(4)
(s)
(6)
payment date for the Bonds, there shall be transferred from the account of the TIF
District to the Debt Service Fund maintained by the City for the payment of the Bonds,
an amount of Available Tax lncrement (as defined below), which when taken together
with taxes levied for such purposes in accordance with the Bond Resolution, if any, and
amounts to be deposited in the Debt Service Fund for the Bonds, is equal to the principal
of and interest on the Bonds to become due on the subject payment date. Any Available
Tax Increment in excess of one hundred five percent (105%) of the principal and interest
due with respect to the Bonds on any payment date may be retained by the Authority in
the account for the TIF District and applied to any costs of the Project in accordance with
law, including the payment of principal of and interest on any interfund loans (the
"Interfund Loans").
Without regard to anything in this Agreement to the contrary, Available Tax lncrement
may be pledged (at the Authority's option on a parity, superior or subordinate basis) to
pay principal of and interest on the Bonds and any other obligations issued by the City,
the Authority, including the payment of principal of and interest on the Interfund Loans,
or any other public body to finance public redevelopment costs paid or incurred by the
Authority in the Project or any other pledge permitted by law. The Authority reserves the
right to release all or any portion of Available Tax Increment from the pledge under this
Agreement (including without limitation the release of Available Tax Increment from any
specific parcel within the TIF District) to the extent permitted by law, provided that in no
event may the Authority reduce the pledge such that Available Tax lncrement is
reasonably expected to pay less than twenty percent (20%) of principal of and interest on
the Bonds.
For purposes of this Agreement, "Available Tax Increment" means, on each February I
and August I (the "Payment Dates") during the term of the Bonds, ninety percent (90%)
of the tax increment attributable to the property in the TIF District which is paid to the
Authority by the County in the six (6) months preceding the Payment Date"
This Agreement supplements any prior agreements between the City and the Authority
with respect to pledges of Available Tax Increment.
An executed copy of this Agreement shall be filed with the County Auditor pursuant to
Section 469.178, subdivision 2 of the TIF Act.
(The remainder of this page is intentionally left blank.)
(7)
2CLl62-59-723643.v1
IN WITNESS WHEREOF, the City and the Authority have caused this Tax Increment Pledge
Agreement to be duly executed on their behalf as of the date and year first written above.
CITY OF COLI.IMBIA IIEIGHTS, MINNESOTA
By ,a(os b*3-..,
Its City Manager -J
By
Its
CLl62-59-723643.v1 s-1
Execution page of the Authority to the Tax lncrement Pledge Agreement, dated as of the date and year
first written above.
COLI]MBIA IIEIGHTS
DEVELOPMENT AUTHORITY
ECONOMIC
By
lts
d<"trl i\t-G}<Ei;"ti"" DGO
President
By
Its
CLl62-59-723643.v1 s-2
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STATE OF MINNESOTA CERTIFICATE OF MANAGER OF
PROPERTY RECORDS AND
TAXATION AS TO TAX INCREMENT
PLEDGE AGREEMENT
COUNTY OF ANOKA
I, the undersigned Manager of Property Records and Taxation of Anoka County, Minnesota,
hereby certify that a Tax lncrement Pledge Agreement, dated July _, 2021, between the City of
Columbia Heights, Minnesota (the "City") and the Columbia Heights Economic Development Authority,
relating to the City's Taxable General Obligation Temporary Tax Increment Bonds, Series 2021A, in the
original aggregate principal amount of $has been filed in my office.
WITNESS my hand and official seal this _ day of 2021
MANAGER OF PROPERTY RECORDS
AND TAXATION,
ANOKA COI'NTY, MINNESOTA
(sEAL)
By
Its
CLl62-59-723643.v1