2013-03H HRA ResolutionEXTRACT OF MINUTES OF A MEETING OF THE BOARD OF
COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND, MINNESOTA
HELD: April 9, 2013
Pursuant to due call and notice thereof, a regular or special meeting of the Board
of Commissioners of The Housing and Redevelopment Authority in and for the City of Mound,
Minnesota, was duly held at the Mound Council Chambers on April 9, 2013, at 6:50 o'clock P.M.
The following commissioners were present: Mark Harms, Kelli Gillispie Ray Salazar, Heidi
Gesch and Mark Wegscheid
and the following were absent: None
adoption:
Commissioner Ray Salazar introduced the following resolution and moved its
RESOLUTION NO. 13 -03H
RESOLUTION AUTHORIZING EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT
A. WHEREAS, the City Council of the City of Mound, Minnesota (the "City"), has
on April 9, 2013 adopted a Resolution Accepting Proposal on sale of $2,580,000 Taxable
General Obligation Bonds, Series 2013B, providing for their issuance, pledging tax increments
for the security thereof and authorizing execution of a tax increment pledge agreement; and
B. WHEREAS, to provide additional security for the payment of the Bonds it is
necessary that The Housing and Redevelopment Authority in and for the City of Mound,
Minnesota (the "Authority"), execute the Tax Increment Pledge Agreement as provided herein.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of The
Housing and Redevelopment Authority in and for the City of Mound, Minnesota, as follows:
The Tax Increment Pledge Agreement on file in the office of the City Finance
Director /Clerk /Treasurer is hereby approved in substantially the form submitted and the Chair
and Executive Secretary of the Authority are authorized and directed to execute the same (and
such other agreements and documents as may be required in connection therewith) on behalf of
the Authority. The approval hereby given to the document referred to above includes approval
of such additional details therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate and
approved by the City Attorney and by the Authority officials authorized herein to execute or
accept, as the case may be, said document prior to its execution; and said Authority officials are
hereby authorized to approve said changes on behalf of the Authority.
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The motion for the adoption of the foregoing resolution was duly seconded by
commissioner and, after full discussion thereof and upon a vote
being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
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CERTIFICATION
I, the undersigned, being the duly qualified and acting Executive 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 a
meeting of the Board of Commissioners of said Authority held on the date indicated therein 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 a resolution authorizing execution of a Tax Increment
Pledge Agreement.
WITNESS my hand as Executive Secretary on 2013.
Executive Secretary
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TAX INCREMENT PLEDGE AGREEMENT
THIS AGREEMENT, is dated as of April 9, 2013 and the parties to this Agreement are
the City of Mound, a Minnesota municipal corporation, herein called the "City ", and The
Housing and Redevelopment Authority in and for the City of Mound, Minnesota, a public body
corporate and politic herein called the "Authority ",
Recitals:
A. WHEREAS, the City and the Authority have heretofore established Development
District No. I (the 'Project Area ") and approved a Plan (the "Project Plan") for the Project Area;
and within the Project Area, the Authority and the City have heretofore established Tax
Increment District No. 2 -1 (the "TIF District "); and
B. WHEREAS, the Authority and the City have proposed that the City issue general
obligation bonds in the maximum principal amount of $2,580,000 of which $ is the
"Refunding Portion" (the "Bonds ") in order to refund in advance of maturity the $2,300,000
original principal amount of Taxable General Obligation Tax Increment Bonds, Series 2003C,
dated July 1, 2003; and
C. WHEREAS, the Authority has agreed to pledge certain tax increments from the
TIF District to the City for the principal and interest on the Bonds; and
D. WHEREAS, pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, any
agreement to pledge tax increment revenues must be made by written agreement by and between
the Authority and the City and must be filed with the Taxpayer Services Division Manager of
Hennepin County;
NOW, THEREFORE, the City and the Authority mutually agree to the following:
(1) The City will issue the Bonds.
(2) The Authority hereby pledges to the payment of the principal of and interest on
the Bonds all Available Tax Increment. The term "Available Tax Increment' means the tax
increments received by the Authority from the TIF District as of any payment date on the Bonds,
less (a) 10% of the tax increments received in the prior six -month period, and less (b) the amount
needed on that payment date to pay any bonds, notes or contracts that were entered into before
the date of this agreement and are secured in whole or in part with tax increments from the TIF
District.
(3) The Authority estimates that Available Tax Increment will be sufficient to pay at
least 20% of the total principal and interest on the Bonds. The City agrees and understands that
upon issuance of any Bonds, the City will levy property taxes in the amount necessary, together
with Available Tax Increment, to pay 105% of the principal and interest of the Bonds.
(4) Not less than three (3) business days prior to each debt service payment date for
the Bonds, there shall be transferred from the account for the TIE District to the Debt Service
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Account maintained by the City for the payment of the Bonds, all Available Tax Increment. Any
Available Tax Increment in excess of 105% of the principal and interest due with respect to the
Bonds on any payment date may be retained by the Authority in the tax increment account for
the TIF District and applied to any public redevelopment costs of the TIF District or Project Area
in accordance with law.
(5) Without regard to anything in this Agreement to the contrary, Available Tax
Increment shall be available to pay, on a parity basis, principal of and interest on both the Bonds
and any other obligations issued by the City, Authority or any other public body after the date of
this Agreement, to finance public redevelopment costs paid or incurred by the Authority in
connection with the TIF District.
(6) When all principal and interest on the Bonds and other obligations issued to
finance the public redevelopment costs of the TIF District have been paid, and the City has been
reimbursed from collections of tax increment from the TIF District used to pay principal of and
interest on the Bonds, then the Authority shall report such fact to the City Council of the City
and the Authority shall submit a final statement of such payments.
(7) An executed copy of this Agreement shall be filed with the Taxpayer Service
Division Manager of the County pursuant to the requirement contained in Minnesota Statutes,
Section 469.178, Subdivision 2.
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IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be
duly executed on their behalf and their seals to be hereunto affixed and such signatures and seals
to be attested, as of the day and year first above written.
CITY OF MOUND, MINNESOTA
BY %2 Z��
Mayor Mark Harms
Attest:
Catherine Pausche, Clerk
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HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MOUND, MINNESOTA
By
Chair
Attest:
Secretary
TAX INCREMENT PLEDGE AGREEMENT relating to $2,580,000 Taxable General
Obligation Bonds, Series 2013B.
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