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HomeMy WebLinkAbout2023-037CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION NO.2023-37 RESOLUTION AUTHORIZING DISBURSEMENT OF A PORTION OF EXCESS FEE REVENUES OR PROJECT FUND BALANCE WITH RESPECT TO SULLIVAN SHORES HOUSING IMPROVEMENT AREA BE IT RESOLVED by the City Council ("Council") of the City of Columbia Heights, Minnesota ("City") as follows: Section 1. Recitals. 1.01. The City is authorized under Minnesota Statutes, Section 428A.I I to 428.21 (the "Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. 1.03. By Ordinance No. 1539 (the "Enabling Ordinance) the City established the Sullivan Shores Housing Improvement Area (the "Housing Improvement Area") in order to finance certain Housing Improvements, as defined in the Enabling Ordinance. 1.04. By Resolution No. 2008-62, adopted by the Council on March 24, 2008, the City approved the imposition of a fee on each housing unit within the Housing Improvement Area (the "Fee" 1.05. The City and Sullivan Shores Townhouses Association, Inc. (the "Association") entered into a Development Agreement dated as of May 12, 2008 ("Development Agreement"), pursuant to which the City issued its $975,000 Taxable General Obligation Housing Improvement Area Bonds, Series 2008A (the "Bonds"). The City disbursed a portion of the proceeds of the Bonds to the Association to pay costs of the Housing Improvements. 1.06. Under Section 3.4 of the Development Agreement, the City may, by resolution of the City Council, following payment of administrative costs in connection with the Bonds or the Housing Improvement Area, disburse all or a portion of any excess of the proceeds of the Fee (the "Fee Revenues") or funds remaining in the Project Fund for the Bonds, to the Association for deposit into in the Excess Revenue Subaccount of the Replacement Reserve Fund (each as defined in the Development Agreement), for expenditure by the Association for additional housing improvements consistent with the Enabling Ordinance, upon submission to the City Building Official of the written plans and cost estimates for which and approval by the City. 1.07. The City has determined that excess Fee Revenues or a balance remains in the Project Fund, in the amount of $72,890.06 , after completion of the Housing Improvements specified in the Development Agreement, and that it is in the best interests of the City to disburse, such excess Fee Revenues or Project Fund balance, less any administrative costs in connection with the Bonds or the Housing Improvement Area, to the Association for deposit into the Excess Revenue Subaccount of the Replacement Reserve Fund. CL 162-67-885107.v 1 Section 2. Disbursement of Funds Approved. 2.01. The City hereby approves disbursement of excess Fee Revenues or funds from the Project Fund to the Association in the amount of $72,890.06, less any amounts for payment of administrative costs in connection with the Bonds or the Housing Improvement Area. 2.02. Amounts disbursed to the Association shall be deposited into the Excess Revenue Subaccount of the Replacement Reserve Fund maintained by the Association and expended only to pay the cost of additional housing improvements consistent with the Ordinance, upon submission to the City Building Official of the written plans and cost estimates and approval by the City, in accordance with all the disbursement procedures set forth in clause (c) of Section 3.4 of the Development Agreement. 2.03. City staff, consultants and officials are hereby authorized and directed to take any and all other steps necessary or convenient in order to carry out the intent of this resolution. Approved this 1 Oth day of July, 2023, by the City Council of the City of Columbia Heights, Minnesota. Offered by: James Seconded by: Jacobs Roll Call: All Ayes /J L!it 4A6da Marquez Si a, Mayor ATTEST: ra Ion, City Clerk/Council Secretary CL162-67-885107.vl 2