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HomeMy WebLinkAbout2023-056r. M, �11911=1r_ M-11 11FIGIRMFOR-WA a BE IT RESOLVED By the City Council of the City of Columbia Heights, Minnesota (the "City") as follows: Section 1. Authorization. (a) The City has established, and the Columbia Heights Economic Development Authority (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"). (b) 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 202 1 A (the "Series 202 1 A 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 11 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 202 1 A Bond. (c) The City and the Authority entered into a Tax Increment Pledge Agreement, dated July 29, 2021, relating to the payment of principal of and interest on the Series 2021A 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 202 1 A Bond. (d) 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. (e) The City is authorized by Section 475.67, subdivision 3 of the Municipal Debt Act to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service costs to the City or for the extension or adjustment of maturities in relation to the resources available for their payment. (f) The City has determined the need to issue an additional temporary bond to refinance the Series 2021A Bond. Therefore, the City proposes to issue its 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 CL162-68-908567.v2 Sections 475.61, subdivision 6 and 475.67, subdivision 3 (collectively, the "Act"). 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. (g) The City is authorized by Section 475.60, subdivision 2(6) of the Act to negotiate the sale of the Bond, it being determined, on the advice of bond counsel, that interest on the Bond cannot be represented to be excluded from gross income for purposes of federal income taxation. Section 2. Sale of the Bond. To refund the Series 2021A Bond and provide additional temporary financing for the Project Costs, the City Council finds it necessary and desirable to extend the maturity of the Series 2021A Bond in relation to the resources available for its payment and to issue and sell the Bond pursuant to the Act in the proposed aggregate principal amount of $6,675,000. The Bond will be issued, sold, and delivered in accordance with the Terms of Proposal to be prepared in connection with the offering and the sale of the Bond. Section 3. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the "Municipal Advisor") is authorized and directed to negotiate the Bond. The City Council will meet on Monday, November 27, 2023 (or such other date as the City Council shall deem appropriate) to consider proposals for the purchase of the Bond and to take any other appropriate action with respect to the Bond. Section 4. AUthority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City ("Bond Counsel"), is authorized to act as bond counsel and to assist in the preparation and review of necessary documents, certificates, and instruments relating to the Bond. The officers, employees, and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents, certificates, and instruments. Section 5. Covenants. In the resolution awarding the sale of the Bond, the City Council will set forth the covenants and undertakings required by the Act. Section 6. Official Statement. In connection with the sale of the Bond, the officers or employees of the City are authorized and directed to cooperate with the Municipal Advisor and participate in the preparation of an official statement for the Bond and to deliver it on behalf of the City upon its completion. (The remainder of this page is intentionally left blank.) CL162-68-908567.v2 Approved this 23" day of October, 2023, by the City Council of the City of Columbia Heights, Minnesota. Offered by: Spriggs Seconded by: James Roll Call: All Ayes 4m4da Marque imula, Mayor ATTEST: ara Ion, City Clerk/Council Secretary 3 CL162-68-908567.v2