2006-10-10MOUND HOUSING AND REDEVELOPMENT AUTHORITY
OCTOBER 10, 2006
The Housing and Redevelopment Authority in and for the City of Mound,
Minnesota, met in regular session on Tuesday, October 10, 2006, at 7:20 p.m. in
the council chambers of city hall.
Members Present: Chair Pat Meisel; Commissioners David Osmek, Bob Brown,
Mike Specht, and John Beise.
Others Present: City Attorney john Dean, Finance Director Gino Businaro, Public
Works Director Carlton Moore.
1. Open Meeting
Chair Meisel called the meeting to order at 7:20 p.m.
2. Approve Agenda
MOTION by Brown, seconded by Osmek to approve the agenda. All voted in
favor. Motion carried.
3. Approve Minutes
MOTION by Specht, seconded by Beise to approve the minutes of September
26, 2006. All voted in favor. Motion carried.
4. Action on resolution authorizing amendment of taxable tax increment
subordinate revenue note
MOTION by Osmek, seconded by Brown to adopt the following resolution. All
voted in favor. Motion carried.
RESOLUTION NO. 06-11 H: RESOLUTION AUTHORIZING THE AMENDMENT
OF THE TAXABLE TAX INCREMENT SUBORDINATE REVENUE NOTE
(METROPLAINS REDEVELOPMENT PROJECT), SERIES 2006.
5. Adiourn
MOTION by Brown, seconded by Osmek to adjourn at 7:28 p.m. all voted in
favor. Motion carried.
Chair Pat Meisel
Attest: Bonnie Ritter, City Clerk
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HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND, MINNESOTA
RESOLUTION N0.06-11H
RESOLUTION AUTHORIZING THE AMENDMENT OF THE TAXABLE
TAX INCREMENT SUBORDINATE REVENUE NOTE
(METROPLAINS REDEVELOPMENT PROJECT), SERIES 2002B
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and
Redevelopment Authority in and for the City of Mound, Minnesota (the "HRA"), as follows:
SECTION 1. BACKGROUND
1.01. The Housing and Redevelopment Authority in and for the City of Mound (the "HRA")
and the City of Mound (the "City") previously established the Tax Increment Financing District No. 1-2
(the "TIF District") pursuant to authority granted by Minnesota Statutes, Sections 469.174-469.1799, as
amended (the "Tax Increment Act"), within Development District No. 1 (the "Development Project"),
and adopted a tax increment financing plan for the purpose of financing certain improvements within the
TIF District. In order to provide for the redevelopment of the Development Project and the TIF District
and, specifically, to provide for the construction of a mixed use development with approximately 99
residential units and approximately 67,000 square feet of commercial space located in the TIF District in
the City's downtown area (the "Project"), the HRA entered into an Amended and Restated Contract for
Private Redevelopment, dated January 8, 2002, between the HRA and MetroPlains Development LLC, a
Minnesota limited liability company, and its assignees (the "Redeveloper") which was subsequently
amended by the First Amendment to Amended and Restated Contract for Private Redevelopment, dated
April 24, 2002, between the HRA and the Redeveloper (collectively, the "Contract").
1.02. On April 23, 2002, the Board adopted Resolution No. 02-O1H (the "Note Resolution"),
which provided for the issuance and sale of its tax increment revenue notes. Pursuant to the terms of the
Note Resolution, the HRA issued its Taxable Tax Increment Revenue Notes (MetroPlains
Redevelopment Project), Series 2002 (the "Senior Notes"), in the principal amount of $3,210,000, dated
as of June 3, 2002, payable solely from a portion of the proceeds of the Series 2002 Notes and from
certain tax increment revenues generated from the TIF District.
1.03. Pursuant to the terms of the Contract, the HRA issued its Taxable Tax Increment
Subordinate Revenue Note (MetroPlains Redevelopment Project), Series 2002B (the "Series 2002B
Note"), in the principal amount of $308,957, dated as of June 3, 2002, payable solely from certain tax
increment revenues generated from the TIF District.
1.04. Pursuant to the Contract and the terms of the Series 2002B Note, the HRA has no
obligation to pay principal and interest due on the Series 2002B Note until the Senior Notes and any
notes issued to refinance the Senior Notes are paid in full, defeased or redeemed.
1.05. On September 26, 2006, the HRA adopted a resolution providing for the issuance of tax-
exempt bonds (the "Bonds") to refinance the Senior Notes. In connection with the issuance of the Bonds,
the HRA has agreed to utilize a portion of excess tax increment revenues collected from the TIF District
to pay principal of and interest on the Series 2002B Note.
1.06. The Redeveloper has requested that the Series 2002B Note be amended to reflect the fact
that excess tax increment revenues will be utilized by the HRA to pay principal of and interest on the
Series 2002B Note going forward.
SECTION 2. AMENDMENT OF SERIES 2002B NOTE
2.01. The Series 2002B Note is hereby amended by striking the second paragraph of Section 3,
which states:
The Authority shall have no obligation to pay principal of and interest on this Note until
the Senior Notes and any Refinancing Notes (as defined in the Agreement) have been
paid in full, defeased, or redeemed in accordance with their terms, and thereafter shall
have no obligation to pay principal of and interest on this Note on each Payment Date
from any source other than Available Tax Increment. Payment of Available Tax
Increment is subject to compliance by Redeveloper, its successors and assigns with the
terms of the Agreement. The Authority has no obligation to pay any outstanding
principal or accrued interest remaining unpaid on February 1, 2027.
and including in its place the following paragraph:
The Authority shall have no obligation to pay principal of and interest on this Note on
each Payment Date from any source other than Available Tax Increment. Payment of
Available Tax Increment is subject to compliance by Redeveloper, its successors and
assigns with the terms of the Agreement. The Authority has no obligation to pay any
outstanding principal or accrued interest remaining unpaid on February I, 2027.
SECTION 3. EFFECTIVE DATE. This Resolution shall take effect and be in force from and after its
approval and publication.
Adopted this 10th day of October, 2006.
Chair Pat Meisel
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Attest: Bonnie Ritter, City Clerk
MU195-21 (JAE)
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