Loading...
HomeMy WebLinkAboutEDA Resolution No. 2023-26COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO.2023-26 A RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT WITH THE CITY OF COLUMBIA HEIGHTS RELATING TO TAXABLE GENERAL OBLIGATION TEMPORARY TAX INCREMENT REFUNDING BONDS, SERIES 2023A, TO BE ISSUED IN THE PROPOSED AGGREGATE PRINCIPAL AMOUNT OF $6,675,000 BE IT RESOLVED by the Board of Conunissioners (the "Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The City of Columbia Heights, Minnesota (the "City") has established, and the Authority administers, the Alatus TIF District (the "TIF District"), a redevelopment district within the Downtown Central Business Redevelopment Project (the "Redevelopment Project") within the City, 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 (the "TIF Plan"). 1.02. Pursuant to the authority conferred by Section 469.178, subdivision 5 of the TIF Act and Minnesota Statutes, Chapter 475, as amended (the "Municipal Debt Act"), including Section 475.61, subdivision 6, the City issued its Taxable General Obligation Temporary Tax Increment Bonds, Series 2021A (the "Series 2021A Bond"), dated July 29, 2021, in the original aggregate principal amount of $5,935,000, 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 provided to Alatus Columbia Heights II LLC, a Delaware limited liability company (the "Developer"), for land acquisition, demolition, and related costs (the "Project Costs"), and the Developer agreed to pay the City's financing and other related costs related to issuing the Series 2021A Bond. 1.03. The City and the Authority entered into a Tax Increment Pledge Agreement, dated July 29, 2021 (the "Original Pledge Agreement"), relating to the payment of principal of and interest on the Series 2021 A Bond 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 Series 2021 A Bond. 1.04. The Series 2021A Bond matures on February 1, 2024 and is payable on such date from tax increments resulting in increases in the taxable value of real property in the TIF District and/or from proceeds of definitive bonds or additional temporary bonds to be issued by the City prior to such maturity. 1.05. The City has determined the need to issue an additional temporary bond to refinance the Series 2021A Bond. To that end, on the date hereof, the City Council of the City will consider a resolution providing preliminary approval to the issuance and sale of the City's Taxable General Obligation Tax Increment Refunding Bonds, Series 2023A (the "Bond"), in the proposed aggregate principal amount of $6,675,000, pursuant to the TIF Act, including Section 469.178, subdivision 5, and the Municipal Debt Act, including Sections 475.61, subdivision 6 and 475.67, subdivision 3. The proceeds of the Bond will be used to refund the Series 2021A Bond prior to maturity and provide additional temporary financing for the Project Costs. 1.06. There has been presented to the Board an Amended and Restated Tax Increment Pledge Agreement (the "Pledge Agreement") between the Authority and the City, which amends and restates the Original Pledge Agreement, relating to the payment of principal and interest on the Bond 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 Bond. Section 2. Approval. 2.01. 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 Bond. 2.02. 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 Bond. 2.03. This resolution shall be effective as of the date hereof. Approved this 23`d day of October, 2023, by the Board of Commissioners of the Columbia Heights Economic Development Authority. PresideAt ATTEST: IcPn5 Secretary CL162-68-908381.v2