2024-09-24 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
MOUND HOUSING & REDEVELOPMENT AUTHORITY
REGULAR MEETING
TUESDAY, SEPTEMBER 24, 2024 6:00 P.M.
MOUND CENTENNIAL BUILDING CITY COUNCIL CHAMBERS
Page
1. Open the meeting
2. Action approving agenda, with any amendments
3. Action approving minutes: September 26, 2023 1-2
4. Deputy City Manager Maggie Reisdorf requesting action 3-4
on Resolution Authorizing the Levy of a Special Benefit 4
Levy Pursuant to Minnesota Statutes, Section 469.033, Subdivision
6, and Approval of a Budget for Fiscal Year 2025
5. Deputy City Manager Maggie Reisdorf requesting action on a 5-16
Resolution Authorizing the Partial Call of Certain Outstanding Bonds 6
6. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday, September 26, 2023
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, September 26, 2023, at 6:50 p.m. in the Council Chambers.
Members present: Chair Jason Holt, Commissioners Sherrie Pugh, Paula Larson, Kathy McEnaney
and Kevin Castellano.
Members absent:
Others present: City Manager and Director of Public Works Eric Hoversten, Deputy City Manager
Maggie Reisdorf.
1. Open meeting
Chair Holt called the meeting to order at 6:50 p.m.
2. Approve agenda
MOTION by Commissioner Larson, seconded by Commissioner McEnaney, to approve the agenda. All
voted in favor. Motion carried.
3. Approve minutes
MOTION by Larson, seconded by McEnaney, to approve the minutes of the September 13, 2022
regular meeting. All voted in favor. Motion carried.
4. Deputy City Manager Maggie Reisdorf requesting action on Resolution Authorizing the Levy
of a Special Benefit Levy Pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 and
Approval of a Budget for Fiscal Year 2024
Reisdorf introduced this item to the Housing and Redevelopment Authority (HRA). She stated that the
Mound HRA exists to support redevelopment activity within the City of Mound. She informed that State
Statute allows for the HRA to levy a special tax (not to exceed 0.0185 percent) of the city's taxable
market value. Reisdorf explained that the City has levied funds for Fund 285 (HRA) that supports
payments for a debt service on the transit center bonds (2015B Tax Abatement Bonds) and for other
operating and capital expenses for the Transit/Harbor District.
Reisdorf said that staff is recommending approval of a resolution that would authorize the special levy
in the amount of $250,000; the same as the 2023 levy.
MOTION by Castellano, seconded by Pugh, to approve the following resolution. All voted in favor.
Motion carried.
RESOLUTION NO. 23-01 H: AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT
TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A BUDGET FOR FISCAL YEAR 2024
6. Deputy City Manager Maggie Reisdorf requesting action on a Resolution Authorizing the
Partial Call of Certain Outstanding Bonds
Reisdorf introduced this item to the Housing and Redevelopment Authority (HRA). She provided a
summary of the establishment of TIF District (TIF 1-2) in 2000 by Bay Development for the Marketplace
and Village Project. She explained that the district will decertify in 2026. Reisdorf explained that the
district had two separate bond issues and a subordinate note with the original developer.
Reisdorf explained that the value of the project exceeds what it was estimated to be back when the
project was initiated and the City receives additional TIF revenue as a result. Reisdorf said that the City
historically has put the excess received funds toward paying down bonds that are allowed to be paid off
-1-
HRA Minutes —September 26, 2023
early. Reisdorf said that there are specific timelines in place in which the City would have to give notice
to the bond holders of the debt service the city's intent to pay some of the bond down early. Reisdorf
recommended approval of a resolution that would authorize partial recall of certain outstanding bonds.
MOTION by Castellano, seconded by McEnaney, to approve the following resolution. All voted in favor.
Motion carried.
RESOLUTION NO. 23-02H: RESOLUTION AUTHORIZING THE PARTIAL RECALL OF CERTAIN
OUTSTANDING BONDS
6. Adjourn
MOTION by Larson, seconded by McEnaney, to adjourn at 7:01 p.m. All voted in favor. Motion carried.
Attest: Kevin Kelly, City Clerk
Chair Jason R. Holt
-2-
n
pl � 0111 P] :E\ C U1l l tl I
Date:
September 19, 2024
To:
BRA Board Chair and Commissioners
From:
Margaret Reisdorf
Deputy City Manager
Subject:
Special Benefit Levy for BRA activities
BACKGROUND
The Housing and Redevelopment Authority (HRA) in and for the City of Mound exists to
support redevelopment activity within the City of Mound.
State Statute, specifically the BRA Act, allows for a special tax to be levied in an amount not to
exceed 0.0185 of a city's taxable market value. The benefit of having a separate levy for this
purpose mostly comes into playwhen levy limits are in effect.
Mound utilizes these levied funds for two purposes:
1. Debt service on the transit center bonds 2015B Tax Abatement Bonds
2. Operating and capital expenses: Fund 285 Transit/Harbo- District/HRA
Fund I Gescrippon I Tyiaei 1 2022 1 2023 I 24K4
285 HRAOperatingHRA
72405
71.150
66,550
UL300
350 HRA-Tmnsit20156Tax Abate HRA
176,150
178,850
181450
18$]00
TOTAL LEW
248.555
250.000
250,WC
M,Wll
LESS. rl C DISPARFES LEW
(17621)
(15.825)
(12.166)
(12,1162)
NET tEW
230.9M
2M,1I5
2W,BM
237,938
CHANGE FRM PRIM YEAR
0 63%
1 40%
1 56%
aw%
Fund 285 has run a deficit for many years, and in 2019, the City Council authorized accounting
for all Harbor District and Lost Lake slip expenses within this fund, in addition to the transit
district related activities.
Significant reserves will need to be accumulated in this fund to pay for the ultimate maintenance
of the slips, Greenway and pier, and redredging of the channel in addition to the park
improvements that have recently been formulated.
RECOMMENDATION
Staff is recommending that the BRA Board approve the attached resolution authorizing the levy
of a special benefit levy pursuant to Minnesota Statutes Section 469.033, Subdivision 6 with no
increase from the prior year to round out the amount.
-3-
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND
RESOLUTION NO. 24-01H
AUTHORIZING THE LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A BUDGET FOR FISCAL YEAR 2025
WHEREAS the Housing and Redevelopment Authority in and for the City of Mound (the
"HRA") has been duly established and operates under Minnesota Statutes, Sections
469.001 to 469.047 (the "HRA Act'); and
WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the HRA to levy and
collect a special benefit levy of up to .0185 percent of taxable market value in the City upon
all taxable real property within the City in order to finance housing and redevelopment
activities authorized under the HRA Act; and
WHEREAS, the HRA has reviewed a budget for its operations for fiscal year 2025, which
budget earmarks the special benefits levy to pay debt service for the Mound Transit Center
bonds and any other costs related to HRA administrative, operating and/or capital expenses;
NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Mound as follows:
1. The budgets for the Mound Transit Center debt service and maintenance costs for
fiscal year 2025 are hereby in all respects approved.
2. Staff of the HRA are hereby authorized and directed to file the budget with the City in
accordance with Minnesota Statutes, Section 469.033, Subdivision 6.
3. The Board approves a special benefit levy for taxes payable in 2025 pursuant to
Minnesota Statutes, Section 469.033, Subdivision 6, in an amount not to exceed
$250,000, subject to the consent of the City Council of the City.
4. Staff of the HRA are hereby authorized and directed to seek the approval
by resolution of the City Council of the City of the levy of special benefit taxes in
2025, certify such proposed special levy with the Hennepin County Auditor by
September 30, 2024, certify the final levy with the County Auditor by the specified
date and take such other actions as are necessary to levy and certify such levy.
Approved this 24th day of September, 2024 by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Mound.
Attest: Kevin Kelly, City Clerk
Chair. Jason R. Holt
.®
MEMORANDUM
Date: September 19, 2024
To: BRA Board Chair and Commissioners
From: Margaret Reisdorf
Deputy City Manager
Subject: Partial Prepayment of TIT 1-2 Tax Increment Finance Revenue Refunding Bonds
for the MetroPlains Project (Series 2006).
BACKGROUND
TIT District (TIF 1-2) was established in 2000 for by Bay Development for the Mound
Marketplace and Village project. The decertification of TIT 1-2 will occur in 2026. This district
had two separate bond issues and a subordinate note with the original developer.
The terms of the Taxable Tax Increment Subordinate Revenue Note—Metroplains
Redevelopment Project (Series 2002B) is that the initial principal of $308,951 will accrue simple
compound interest at a rate of 8.5% (calculated using 360 days per year or (12) 30-day months),
but that there will be no obligation after 2/l/2021, which the FIT district decertifies.
In addition, TIT revenues will primarily be used to repay the principal and interest on the Tax
Increment Revenue Refunding Bonds for the Metroplains Project (Series 2006), then the citywill
be allowed to withhold a 10% administrative fee with any remaining tax increment used 50010to
make payments on the subordinate note.
After this partial call, we will have paid down $300,000 in outstanding bonds and $300,000 on
the subordinate note. The resolution to call for the partial early redemption on the bonds is on the
agenda and needs to be acted upon in order to proceed.
STAFF RECOMMENDATION
Staff recommends approval of the attached resolution that calls for the partial early redemption
on the bonds.
-5-
EXTRACT OF MINUTES OF A MEETING OF THE
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF MOUND, MINNESOTA
HELD: September 24, 2024
Pursuant to due call and notice thereof, a regular or special meeting of the Housing and
Redevelopment Authority in and for the City of Mound, Hennepin County, Minnesota, was held
at the City Hall on September 24, 2024, at 6:00 P.M.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION NO. 24-02H
RESOLUTION AUTHORIZING THE PARTIAL CALL OF
CERTAIN OUTSTANDING BONDS
A. WHEREAS, by a resolution adopted on September 26, 2006 (the 'Prior
Resolution"), the Housing and Redevelopment Authority in and for the City of Mound,
Minnesota (the "Authority") issued Tax Increment Revenue Refunding Bonds (MetroPlains
Project), Series 2006, in the original principal amount of $3,295,000, dated November 2, 2006
(the 'Bonds").
B. WHEREAS, there are sufficient funds on hand in the Bond Fund, as defined in
the Prior Resolution, to call $40,000 outstanding principal amount of the August 15, 2026
payment of the Term Bond maturing on February 15, 2027 (the 'Partial Redemption"), at a price
of par plus accrued interest on November 1, 2024, in accordance with the Prior Resolution.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
in and for the City of Mound, Minnesota, as follows:
1. The Authority hereby determines to prepay on November 1, 2024, the Partial
Redemption and the interest due thereon.
2. Bond Trust Services Corporation, in Roseville, Minnesota, the paying agent for
the principal and interest on the Bonds, is hereby authorized and directed to cause the Notice of
Partial Call for Redemption attached hereto as Exhibit A to be given in accordance with the
provisions of the Prior Resolution.
3. No further action shall be required of the Authority to complete the Partial
Redemption.
The motion for the adoption of the foregoing resolution was duly seconded by Member
and upon a vote being taken thereon, the following voted in favor thereof:
10
134711278v1
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
2
134711278v1
_7_
STATE OF MINNESOTA
COUNTY OF HENNEPIN
HOUSING AND REDEVELOPMENT AUTHORITY
OF THE CITY OF MOUND
The undersigned, being the duly qualified and acting Secretary of the Housing and
Redevelopment Authority in and for the City of Mound, Minnesota, do hereby certify that I have
carefully compared the attached and foregoing extract of minutes of the Housing and
Redevelopment Authority in and for the City of Mound, Minnesota, held on the date therein
indicated, with the original thereof on file in my office, and the same is a full, true and complete
transcript therefrom insofar as the same relates to authorizing the partial call of certain Tax
Increment Revenue Refunding Bonds (MetroPlains Project), Series 2006.
WITNESS my hand as such Secretary on September 24, 2024.
Secretary
134711278v1
Exhibit A
NOTICE OF PARTIAL CALL FOR REDEMPTION
TAX INCREMENT REVENUE REFUNDING BONDS
(METROPLAINS PROJECT), SERIES 2006
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND
HENNEPIN COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the Housing and Redevelopment Authority in
and for the City of Mound, Hennepin County, Minnesota, there have been called for partial
redemption and prepayment on
November 1, 2024
those outstanding bonds of the City designated as Tax Increment Revenue Refunding Bonds
(MetroPlains Project), Series 2006, dated November 2, 2006, for the term bond maturing on
February 15, 2027, for the payment year and amount below and totaling in $40,000 in principal
amount:
Dates Prepayment Amount CUSIP Number*
02/15/2026 $22,000 620545 AD5
08/15/2026 $18,000 620545 AD5
The bonds are being called at a price of par plus accrued interest to November 1, 2024, on which
date all interest on the bonds will partially cease to accrue. Holders of the bonds hereby called
for redemption are requested to present their bonds for payment, at office of Bond Trust Services
Corporation, 3060 Centre Pointe Drive, Roseville, Minnesota 55113, on or before November 1,
2024.
Dated: September 24, 2024
BY ORDER OF THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF MOUND
/s/
Executive Director
*The Authority shall not be responsible for the selection of or use of the CUSIP numbers, nor is
any representation made as to their correctness indicated in the notice. They are included solely
for the convenience of the holders.
A-1
®'
134711278v1
Mound HRA
Taxable Tax Increment Subordinate Revenue Note
MetroPlains Redevelopment Project
Series 2002B
Accrued
# Days
1-Feb
1-Aug
Beginning
Additions /
Ending
Annual
Loan plus
Interest
Payment
Payment
Loan Balance
Reductions
Loan Balance
Interest
Unpaid Interest
-
308,957
308,957
308,957
6/3/2002
208
-
-
308,957
-
308,957
15,173
324,130
2003
360
-
-
308,957
-
308,957
26,261
350,392
2004
360
-
-
308,957
-
308,957
26,261
376,653
2005
360
-
-
308,957
-
308,957
26,261
402,914
2006
360
-
-
308,957
-
308,957
26,261
429,176
2007
360
-
-
308,957
-
308,957
26,261
455,437
2008
360
-
-
308,957
-
308,957
26,261
481,698
2009
360
25,000
4,700
308,957
(29,700)
279,257
24,147
476,145
2010
360
4,800
3,650
279,257
(8,450)
270,807
23,234
490,929
2011
360
4,600
3,100
270,807
(7,700)
263,107
22,550
505,779
2012
360
-
9,500
263,107
(9,500)
253,607
22,028
518,307
2013
360
-
2,500
253,607
(2,500)
251,107
21,468
537,275
2014
360
-
-
251,107
251,107
21,344
558,619
2015
360
-
251,107
251,107
21,344
579,963
2016
360
-
-
251,107
251,107
21,344
601,307
2017
360
5,000
20,000
251,107
(25,000)
226,107
20,246
596,553
2018
360
15,000
25,000
226,107
(40,000)
186,107
17,165
573,718
2019
360
186,107
186,107
15,819
589,537
2020
360
40,000
20,000
186,107
(60,000)
126,107
11,994
541,531
2021
360
25,000
126,107
(25,000)
101,107
8,771
525,303
2022
360
10,000
20,000
101,107
(30,000)
71,107
7,107
502,409
2023
360
5,000
20,000
71,107
(25,000)
46,107
4,946
482,355
2024
360
7,150
30,000
46,107
(37,150)
8,957
2,299
447,505
2025
360
8,957
8,957
761
448,266
2026
360
8,957
8,957
761
449,028
2/l/2027
30
-
-
8,957
8,957
63
449,091
141,550
158,450
(300,000)
-10-
Terms : 8.5% interest calculated using 360 day year or (12) 30-day months. No obligation after 2/1/2027.
City of Mound HRA
$40,422 Cash Current Partial Call on November 1, 2024 of:
$3,295,000 Tax Increment Revenue Refunding Bonds, Series 2006
(Metroplains Project)
Sources & Uses
Dated 11/01/2024 1 Delivered 11/01/2024
Sources Of Funds
Par Amount of Bonds $40,422.22
Total Sources
$40,422.22
Uses Of Funds
Deposit to Current Refunding Fund 40,422.22
$40,422.22
2024 Cash Cur Partial Cal I SINGLE PURPOSE 1 8/13=4 1 2:33 PM
FREERS
PUBLIC FINANCE ADVISORS
City of Mound HRA
$40,422 Cash Current Partial Call on November 1, 2024 of:
$3,295,000 Tax Increment Revenue Refunding Bonds, Series 2006
(Metroplains Project)
Debt Service Comparison
Existing
Net New
Date Total P+I
D/S
D/S
Old Net D/S
Savings
11/01/2024 -
-
-
-
-
11/01/2025 40,422.22
269,075.00
309,497.22
271,075.00
(38,422.22)
11/01/2026 -
112,750.00
112,750.00
154,200.00
41,450.00
Total $40,422.22
$381,825.00
$422,247.22
$425,275.00
$3,027.78
PV Analysis Summary (Net to Net)
Net PV Cashflow Savings @ 0.000%(Escrow Yield)... 3,027.78
Net Present Value Benefit $3,027.78
Net PV Benefit / $43,450.00 PV Refunded Debt Service 6.968%
Net PV Benefit/ $40.000 Refunded Principal... 7.569%
Net PV Benefit/ $40,422 Refunding Principal.. 7.490%
Refunding Bond Information
Refunding Dated Date 11/01/2024
Refunding Delivery Date 11/01/2024
2024 Cash Cur Partial Cal I SINGLE PURPOSE 1 8A 32024 1 2:33 PM
EHLERS 12
PUBLIC FINANCE ADVISORS
City of Mound HRA
$40,422 Cash Current Partial Call on November 1, 2024 of:
$3,295,000 Tax Increment Revenue Refunding Bonds, Series 2006
(Metroplains Project)
Current Refunding Escrow
Cash
Date Rate Receipts Disbursements Balance
11/01/2024 - 40,422.22 40,422.22 -
Total - $40,422.22 $40,422.22 -
Investment Parameters
Investment Model [PV, GIC, or Securities] Securities
Default investment yield target Unrestricted
Cash Deposit 40,422.22
Total Cost of Investments $40,422.22
Cost of Investments at bond
Yield for
2024 Cash Cur Partial Cal I SINGLE PURPOSE 1 8/132024 1 2:33 PM
FREERS _13_
PU6LIC FINANCE ADVISORS
of Mound HRA
$40,422 Cash Current Partial Call on November 1, 2024 of:
$3,295,000 Tax Increment Revenue Refunding Bonds, Series 2006
(Metroplains Project)
Summary Of Bonds Refunded
of
Maturity
Issue
Maturity Type
Bond
Coupon Value Call Date Call Price
Dated 8/152024 I Delivered 8/152024
Ser 2006 $3.295M Remaining CashCall file 2024Call
02/15/2026 Serial
Coupon
5.000% 22,000 11/O1/2024 100.000%
Ser 2006 $3.295M Remaining CashCall file 2024Call
08/15/2026 Serial
Coupon
5.000% 18,000 11/O1/2024 100.000%
Subtotal
-
- $40,000 - -
Total
$40,000
2024 Cash C,, Partial Cal I SINGLE PURPOSE 18/1 S2024 1233 PM
EHLERSI
PUBLIC FINANCE ADVISO
-14-
City of Mound HRA
$3,295,000 Tax Increment Revenue Refunding Bonds, Series 2006
(Metroplains Project)
Revised Schedule due to change in final maturity - Called 2/1/2018
Debt Service To Maturity And To Call
Refunded
Refunded
D/S To
Refunded
Date
Bonds
Interest
Call
Principal
Coupon
Interest
D/S
11/01/2024
40,000.00
422.22
40,422.22
-
-
-
-
02/15/2025
-
-
-
-
5.000%
1,000.00
1,000.00
08/15/2025
-
-
-
-
5.000%
1,000.00
1,000.00
02/15/2026
-
-
-
22,000.00
5.000%
1,000.00
23,000.00
08/15/2026
-
-
-
18,000.00
5.000%
450.00
18,450.00
Total
$40,000.00
$422.22
$40,422.22
$40,000.00
-
$3,450.00
$43,450.00
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation
11/01/2024
Average Life
1.514 Years
Average Coupon
5.0000037%
Weighted Average Maturity (Par Basis)
1.514 Years
Weighted Average Maturity (Original Price Basis)
1.514 Years
Refunding Bond Information
Refunding Dated Date
11/01/2024
Refunding Delivery Date
11/01/2024
Ser 2006 $3.295M Remainin I SINGLE PURPOSE 1 8/13=4 1 2:33 PM
FREERS _15_
PU6LIC FINANCE ADVISORS
City of Mound HRA
$3,295,000 Tax Increment Revenue Refunding Bonds, Series 2006
(Metroplains Project)
Revised Schedule due to change in final maturity - Called 2/1/2018
Current Outstanding Debt Service
Date
Principal
Coupon
Interest
Total P+I
Fiscal Total
02/15/2025
125,000.00
5.000%
9,100.00
134,100.00
-
08/15/2025
129,000.00
5.000%
5,975.00
134,975.00
-
11/01/2025
-
-
-
-
269,075.00
02/15/2026
110,000.00
5.000%
2,750.00
112,750.00
-
11/01/2026
-
-
-
-
112,750.00
Total
$364,000.00
-
$17,825.00
$381,825.00
-
Yield Statistics
Base date for Ave. Life & Ave. Concert
Calculation
11/01/2024
Average Coupon 5.0000037%
Weighted Average Maturity (Par Basis) 0.768 Years
Weighted Average Maturity (Original Price Basis) 1.514 Years
Refundinq Bond Information
Refunding Dated Date 11/01/2024
Refunding Delivery Date 11/01/2024
Ser2006$3.295MRemalnin I SINGE PURPOSE 1 8/132024 1 2:33PM
FREERS _16_
PUBLIC FINANCE ADVISORS