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2006-10-10.. i i PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. AGENDA G J ~. I~'.O; ~ , '~,US'~NG~&y REDEVELOPMENT AUTHORITY -y ,~ ~ G~C,JLA;'R MEETING T~JESDAY, OCTOBER 10, 2006 - 7:20 PM MOI7ND CITY COUNCIL CHAMBERS Page 1. Open meeting 2. Action approving agenda, with any amendments 3. Action approving minutes: Sept 26, 2006 -Regular Meeting 1-3 4. Action on resolution authorizing the amendment of the taxable tax 4-6 increment subordinate revenue note (Metroplains Redevelopment Project), Series 2002B •5 . Adjourn • • MOUND HOUSING AND REDEVELOPMENT AUTHORITY SEPTEMBER 26, 2006 The Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, September 26, 2006, at 7:00 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, Executive Director Kandis Hanson, City Clerk Bonnie Ritter, Community Development Director Sarah Smith, Public Works Director Carlton Moore, Finance Director Gino Businaro, Julie Eddington, Amanda Schwarze, Larry Olson, Cindy Reiter, Terry Hakkola 1. Open meeting Chair Meisel called the meeting to order at 7:00 p.m. 2. Approve agenda MOTION by Brown, seconded by Beise to approve the agenda. All voted in favor. Motion carried. 3. Approve minutes • MOTION by Beise, seconded by Specht to approve the minutes of the September 7, 2006 special meeting and the September 14, 2006 regular meeting. All voted in favor. Motion carried. 4. Indian Knoll Manor Manager's Report Cindy Reiter of Westport Properties presented the monthly report as follows: A. August Bank Statement B. July Income Statement C. Review of Bills Paid: MOTION by Brown, seconded by Beise to approve payment of the bills for August 2006 D. Manager's Report: (1) Submission of budget: MOTION by Specht, seconded by Brown to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 06-07H: RESOLUTION APPROVING OPERATING BUDGET (2) Management Contract Renewal: MOTION by Osmek, seconded by Brown to renew the Management Agreement between Mound HRA and Westport Properties, Inc., effective October 1, 2006 through September 30, 2008. All voted in favor. Motion carried. -1- Mound HRA Minutes -September 26, 2006 5. Transit District Parking Deck Project A. Action on Resolution Rejecting Bids Terry Hakkola of Walker Parking informed the HRA that his firm was surprised and disappointed by the bids received for the Transit District Parking Deck. The low bidder was $745,300 over the engineer's estimate. After investigation, he found the reasons for the high bids received were scheduling, construction phasing, liquidated damages, general conditions, lack of bidders, lack of supplier and sub-contractor bidders, project size, escalating prices, tight site, and re-design/value engineering. He recommends that the bids received by rejected and the project be re-bid this winter. MOTION by Brown, seconded by Osmek to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 06-08H: RESOLUTION REJECTING BIDS FOR TRANSIT DISTRICT PARKING DECK IN DOWNTOWN MOUND B. Action on Resolution Authorizing Walker Parking Consultants to Prepare Modified Plans and Specifications MOTION by Brown, seconded by Osmek to adopt the following resolution. All voted in favor. Motion carried. RESOLUTION NO. 06-09H: RESOLUTION AUTHORIZING PREPARATION OF MODIFIED PLANS AND SPECIFICATIONS FOR TRANSIT DISTRICT PARKING DECK IN DOWNTOWN MOUND 6. Action on Resolution Authorizing the Issuance of Tax Increment Revenue Refunding Bonds (MetroPlains Proiectl, Series 2006, and Providing the Form, Terms, Pledge of Revenues, and Findings, Covenants, and Directions Relating to the Issuance of Such Obligations Julie Eddington of Kennedy & Graven explained the reason for issuance of these bonds. In 2002 the HRA entered into an amended contract for private development where they agreed to issue taxable notes at that time, then promised to issue tax exempt notes once minimum improvements were completed. Larry Olson of MetroPlains stated that they are completing the foundation of the final 20-unit great house and all. but three have been sold. He thanked the City for their cooperation throughout this project. MOTION by Brown, seconded by Osmek to adopt the following resolution. All voted in favor. Motion carried. 2 -2- • Mound HRA Minutes -September 26, 2006 RESOLUTION NO. 06-10H: RESOLUTION AUTHORIZING THE ISSUANCE OF TAX INCREMENT REVENUE REFUNDING BONDS (METROPLAINS PROJECT), SERIES 2006, AND PROVIDING THE FORM, TERMS, PLEDGE OF REVENUES, AND FINDINGS, COVENANTS, AND DIRECTIONS RELATING TO THE ISSUANCE OF SUCH OBLIGATIONS 7. Adlourn MOTION by Brown, seconded by Beise to adjourn at 7:18 p.m. All voted in favor. Motion carried. Chair Pat Meisel • Attest: Bonnie Ritter, City Clerk 3 -3- HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA RESOLUTION NO. 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 Apri124, 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, -4- 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 as follows: (A) By striking the first paragraph of Section 3, which states: Available Tax Increment. Payments on this Note are payable on each Payment Date in the amount of and solely from Available Tax Increment. The term "Available Tax Increment" means the amount of Tax Increment with respect to the Redevelopment Property (as defined in the Agreement) paid to the Authority during the period preceding each Payment Date after deducting the amount of Tax Increment, if any, which the Authority must pay to the school district, the County and the State pursuant to Minnesota Statutes, Sections 469.177 subds. 9, 10, and 11; 469.176, subd. 4h; and 469.175, subd. la, as the same may be amended from time to time; and administrative costs as defined in Minnesota Statutes, Sections 469.174 subd. 14 of the Authority in the amount of 10% of the Tax Increment, all as such terms are defined in the Agreement. • and including in its place the following paragraph (additions are underlined): Available Tax Increment. Payments on this Note are payable on each Payment Date in the amount of and solely from Available Tax Increment. The term "Available Tax Increment" means the amount of Tax Increment with respect to the Redevelopment Property (as defined in the Agreement) paid to the Authority during the period preceding each Payment Date after deducting the amount of Tax Increment, if any, which the Authority must pay to the school district, the County and the State pursuant to Minnesota Statutes, Sections 469.177 subds. 9, 10, and 11; 469.176, subd. 4h; and 469.175, subd. la, as the same may be amended from time to time; and administrative costs as defined in Minnesota Statutes, Sections 469.174 subd. 14 of the Authority in the amount of 10% of the Tax Increment, al] as such. terms are defined in the Agreement. Notwithstandine anything to the contrary stated herein, the payment of principal of and interest on this Note from Available Tax Increment is subordinate to payments of the principal of and interest on the Authority's Tax Increment Revenue Refunding Bonds (MetroPlains Project), Series 2006 from Available Tax Increment, as more fully described in the Pang Agent Agreement, dated as of October 1, 2006, between the Authority and Bond Trust Services Corporation. (B) 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 2 -5- 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 1, 2027. SECTION 3. EFFECTIVE DATE. This Resolution shall take effect and be in force from and after its approval. Adopted this 10th day of October, 2006. Chair Attest: Executive Director MU 195-2 ] (JAE) 299321 v.3 -6-