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2007-12-11PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. AGENDA MOUND I~1SIN~G ~& R'EDE~EQP~IEN'~' AU R~TY REGULAR..M~ET,ING TUESDAY; DECEM~~ER 11; 2007- 6:00 PM MOUND CITY COU3~ChL CHAMBERS 1. Open meeting. 2. Action approving agenda, with any amendments 3. Action approving minutes: November 27, 2007 -Regular Meeting 4. Approve cancellation of December 25, 2007 regular meeting 5. Status Report from Mound Harbor Renaissance Development, LLC, with any necessary action 6. Redevelopment Financing and Projects -- • A. Consideration of authorizing staff to respond to offers from owners of properties: 1. Curtis Johnson estate 5545 Shoreline Drive 2. MS & FY Moy 5555 Shoreline Drive 3. Roger Beckel 5567 Shoreline Drive 4. Kenneth Perbix 5 575 Shoreline Drive (The HRA will be asked to close this portion of the meeting pursuant to the Minnesota Open Meeting Law.) B. Transit District -Deck 1 1. Contaminated soil: $150,000 C. Auditor's Road -Deck 2 1. Met Council Livable Communities grant extension 2. Estimated Financing Gap: $350,000 D. Next steps Pale 1-2 7. Consideration of Resolution Authorizing Execution of Amended and Restated 3-8 • Tax Increment Pledge Agreement for Series 2008A Bonds (Dump clean-up) 8. Adjourn 325445v2 JBD MU220-2 • MOUND HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 27, 2007 The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, October 23, 2007 at 6:30 p.m. in the council chambers of city hall. Members present: Chair Mark Hanus, Commissioners David Osmek, and Greg Skinner. Others present: City Attorney John Dean, Executive Director Kandis Hanson, Community Development Director Sarah Smith, Public Works Director Carlton Moore, Finance Director Gino Businaro, Ken Perbix and Cyndi Reiter. 1. Open meeting Chair Hanus called the meeting to order at 6:30 p.m. 2. Approve agenda MOTION by Osmek, seconded by Hanus to approve the agenda. All voted in favor. Motion carried. 3. Approve minutes MOTION by Osmek, seconded by Skinner to approve the minutes of the October 23, 2007 meeting. All voted in favor. Motion carried. • Mike Specht arrived at 6:35 p.m. John Beise arrived at 6:36 p.m. 4. Manager's report for Indian Knoll Manor Cindy Reiter presented the manager's report as follows: A. October bank and income statement B. Review of bills paid: MOTION by Osmek, seconded by Skinner to approve payment of the bills as presented. All voted in favor. Motion carried. C. Manager's report -Thanksgiving activities went well. Turkeys donated by local merchant. HRA suggested that manager send a letter of thanks to the editor regarding general donation to Indian Knoll. Fence along parking lot has been installed. 5. Redevelopment Financing and Proiects A. Transit District -Deck 1 1. Contaminated soil - $150,000 B. Auditor's Road -Deck 2 1. Metropolitan Council Livable Communities grant extension 2. Estimated funding gap - $350.000 MOTION by Osmek, seconded by Specht to table discussion of Items 5A and 5B until after Item 5C. All voted in favor. Motion carried. • C. Consideration of authorizing staff to respond to offers from owners of properties -1- Mound HRA Minutes -November 27, 2007 City Attorney John Dean announced that the HRA would close this meeting pursuant to the Minnesota Open Meeting Law to discuss Item 5C which involves possible real estate transactions. At the conclusion of the closed session, the City Attorney announced that there were no decisions made regarding Item 5C as the HRA did not complete its discussions and therefore the matter would be continued to the next HRA meeting being held on December 11, 2007. The HRA by consensus, continued items 5A and 5B until the December 11th meeting. 6. Adjourn MOTION by Osmek, seconded by Specht to adjourn at 7:35 p.m. All voted in favor. Motion carried. Chair Mark Hanus Attest: Bonnie Ritter, City Clerk -2- • HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT WITH THE CITY OF MOUND RELATING TO TAXABLE GENERAL OBLIGATION TAX INCREMENT TEMPORARY REFUNDING BONDS, SERIES 2008A TO BE ISSUED IN AN AMOUNT NOT TO EXCEED $4,015,000 WHEREAS, pursuant to a resolution approved by the City Council of the City of Mound (the "City") on July 12, 2005, and the authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, the City issued and sold its Taxable General Obligation Tax Increment Temporary Bonds, Series 2005D (the "Series 2005D Bonds") in an original aggregate principal amount of $3,875,000; WHEREAS, in conjunction with the issuance and sale of the Series 2005D Bonds, the City and the Housing and Redevelopment Authority in and for the City of Mound, Minnesota (the "HRA") entered into a Tax Increment Pledge Agreement, dated July 12, 2005; WHEREAS, the Series 2005D Bonds mature on February 1, 2008 and the City intends to issue additional general obligation temporary bonds to pay the outstanding principal of and interest due on the Series 2005D Bonds at maturity; ~ - _ • WHEREAS, pursuant to a resolution approved by the City Council of the City of Mound (the "City") on December 11, 2007 (the "Bond Resolution"), and the authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, the City has agreed to issue and sell general obligation bonds of the City in an original aggregate principal amount not to exceed $4,015,000, designated the Taxable General Obligation Temporary Tax Increment Refunding Bonds, Series 2008A (the "Series 2008A Bonds") to pay at maturity the principal of and interest due on the Series 2005D Bonds; WHEREAS, pursuant to the Bond Resolution and its obligations under Minnesota Statutes, Section 475.61, Subdivision 6, the City has covenanted to issue and sell definitive bonds (the "Definitive Bonds") prior to the maturity of the Series 2008A Bonds if the Series 2008A Bonds cannot be paid at maturity from tax increment revenues or other revenues derived from the TIF District or from other funds appropriated by the City Council; WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for the payment of principal and interest on the Series 2008A Bonds and for the payment of principal and interest on the Definitive Bonds; and WHEREAS, there has been presented to the HRA an Amended and Restated Tax Increment Pledge Agreement between the HRA and the City (the "Pledge Agreement") providing for the pledge of certain tax increments from the Mound Harbor Tax Increment Financing District within the Mound Harbor Project Area in the City to the payment of principal and interest on the Series 2008A Bonds and to the payment of principal and interest on the Definitive Bonds; • NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the HRA, as follows: -3- 1. The Chair and Executive Director of the HRA are hereby authorized to execute and deliver the Pledge Agreement in substantially the form on file in City Hall. 2. This resolution shall be effective as of the date hereof. Adopted by the Housing and Redevelopment Authority in and for the City of Mound, Minnesota this 11th day of December, 2007. Chair Attest: Executive Director MU200-141(JAE) 325339v.1 -4- . AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT by and between CITY OF MOUND, MINNESOTA And THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA THIS AGREEMENT is made and entered into on or as of the _ day of , 2007, by and between the City of Mound, Minnesota (the "City"), and the Housing and Redevelopment Authority in and for the City of Mound, Minnesota (the "HRA"). RECITALS WHEREAS, the City and the HRA duly established the Mound Harbor Tax Increment Financing District ("TIF District") within the Mound Harbor Project Area (the "Project") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the "HRA Act") and Sections 469.174 to 469.1799 (the "TIF Act"); WHEREAS, the HRA caused to be prepared a Tax Increment Financing Plan for the-~TIF Bistrict • (the "TIF Plan") and the HRA approved the TIF Plan on March 22, 2005; WHEREAS, the City Council of the City approved the TIF Plan on March 22, 2005; WHEREAS, pursuant to the authority conferred by Minnesota Statutes, Section 469.178 and Minnesota Statutes, Chapter 475, the City previously agreed to finance projects undertaken by the HRA in the TIF District through the issuance of its Taxable General Obligation Temporary Tax Increment Bonds, Series 2005D, dated August 1, 2005, issued in the original aggregate principal amount of $3,875,000 (the "Series 2005D Bonds"); WHEREAS, the Series 2005D Bonds mature on February 1, 2008 and the City intends to issue additional general obligation temporary bonds to pay the outstanding principal of and interest due on the Series 2005D Bonds at maturity; WHEREAS, pursuant to the authority conferred by Minnesota Statutes, Section 469.178 and Minnesota Statutes, Chapter 475, the City has agreed issue its Taxable General Obligation Temporary Tax Increment Refunding Bonds, Series 2008A, to be dated January 1, 2008, to be issued in the original aggregate principal amount not to exceed $4,015,000 (the "Series 2008A Bonds"); WHEREAS, the principal and .interest due on the Series 2008A Bonds will be paid from tax increment revenues resulting from increases in taxable valuation of real property in the TIF District and from definitive bonds (the "Definitive Bonds"} the City has covenanted to issue and sell pursuant to a resolution adopted by the City Council on December 11, 2007 (the "Bond Resolution"); WHEREAS, the HRA has agreed to pledge certain tax increment revenues attributable to the TIF District to the City for the payment of the principal and interest on the Series 2008A Bonds and for the -5- payment of the principal and interest on the Definitive Bonds, or any bonds issued to refund such bonds, when issued and sold by the City; and 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 HRA and the City and must be filed with the Taxpayer Services Division Manager of Hennepin County. NOW, THEREFORE, the City and the HRA mutually agree to the following: (1) The City will issue and sell the Series 2008A Bonds in accordance with the Bond Resolution, and if necessary to pay the principal and interest due on the Series 2008A Bonds, the City will issue and sell the Definitive Bonds, as it has covenanted to do pursuant to the Bond Resolution. (2) The proceeds from the sale of the Series 2008A Bonds will be applied in accordance with the Bond Resolution. (3) The HRA pledges tax increment revenues generated by the TIF District from certain property described in the TIF Plan (the "Available Tax Increment") to the payment of principal and interest on the Series 2008A Bonds and the Definitive Bonds (and any bonds issued to refund such bonds), subject to the terms of this Agreement. At least three (3) business days prior to each debt service payment date for the Series 2008A Bonds and the Definitive Bonds, there shall be transferred from the account of the TIF District to the Debt Service Fund maintained by the City for the payment of ttre~Seri~s 2008A Bonds or the Definitive Bonds, an amount of Available Tax Increment, which when taken together with taxes levied for such purposes in accordance with the Bond Resolution and amounts already on deposit in such Debt Service Fund, is equal to the principal of and interest on the Series 2008A Bonds or Definitive Bonds to become due on the subject payment date. Any Available Tax Increment in excess of 105% of the principal and interest due with respect to the Series 2008A Bonds or the Definitive Bonds on any payment date may be retained by the HRA in the account for the TIF District and applied to any costs of the Project in accordance with law. (4) Without regard to anything in this Agreement to the contrary, Available Tax Increment may be pledged (at the HRA's option on a parity, superior or subordinate basis) to pay principal of and interest on the Series 2008A Bonds, the Definitive Bonds, and any other obligations issued by the City, HRA or any other public body to finance public redevelopment costs paid or incurred by the HRA in the Project. The HRA reserves the right to release all or any portion of Available Tax Increment from the pledge under this Agreement (including without limitation the release of Available Tax Increment from any specific parcel within any District) to the extent permitted by law, provided that in no event may the HRA reduce the pledge such that Available Tax Increment is reasonably expected to pay less than twenty percent (20%) of principal and interest on the Definitive Bonds. (5) An executed copy of this Agreement shall be filed with the Taxpayer Services Division Manager of Hennepin County pursuant to Minnesota Statutes, Section 469.178, Subdivision 2. -6- • IN WTTNESS WHEREOF, the City and the HRA 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. ATTEST: City Manager CITY OF MOUND, MINNESOTA By. (SEAL) ATTEST: Mayor HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA • Executive Director By_ Chair -7- STATE OF MINNESOTA TAXPAYER SERVICES DIVISION MANAGER'S COUNTY OF HENNEPIN CERTIFICATE I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a Tax Increment Pledge Agreement by and between the City of Mound, Minnesota and the Housing and Redevelopment Authority in and for the City of Mound, Minnesota, dated as of December _, 2007, relating to the City's $ Taxable General Obligation Tax Increment Temporary Refunding Bonds, Series 2008A has been filed in my office. WITNESS my hand and official seal this _ day of , 2007. (SEAL) MU200-141 (JAE) 325338v.1 Taxpayer Services Division Manager -- Hennepin County, Minnesota By Deputy -$-