2018-11-27 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
MOUND HOUSING & REDEVELOPMENT AUTHORITY
REGULAR MEETING
TUESDAY, NOVEMBER 27, 2018 6:55 P.M.
MOUND CITY COUNCIL CHAMBERS
Page
1. Opening the meeting
2. Action approving agenda, with any amendments
3. Action to approve minutes from 09-25-18 Regular HRA Meeting
4. Action on a resolution authorizing execution of an amended 2-7
and restated tax increment pledge agreement with the City of Mound
relating to the prior 2009D bonds refunding portion of $7,520,000
General Obligation Refunding Bonds, Series 2018A
5. Adjourn
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
Tuesday September 25, 2018
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, September 25, 2018, at 6:55 p.m. in the council chambers of the
Centennial Building.
Members present: Chair Mark Wegscheid, Jennifer Peterson, and Jeff Bergquist.
Members absent: Ray Salazar and Kelli Gillispie
Others present: City Manager Eric Hoversten, Fin Dir/Clerk/Treasurer Catherine Pausche, Community
Development Director Sarah Smith, City Engineer Brian Simmons
Public Present: Joe Bruns, Eric Schmidt, Scott Seter, Marie Jorland, Danelle, Bonilla, Jack Evens, Erik
Trooien, Jim Dustrude, John Beise, Colin Charlson, Bob Christians, Jon Ciatti, Chris Fischer, Bill Brady,
Sean Royer, Eric Avenson, Scott Gates, Susan Johnson, and Karen Johnson.
1. Open meeting
Chair Mark Wegscheid called the meeting to order at 6:55 p.m.
2. Approve agenda
MOTION by Bergquist, seconded by Peterson, to approve the agenda. All voted in favor. Motion
carried.
3. Approve minutes: September 11, 2018 Concurrent HRA CC Meeting
MOTION by Bergquist, seconded by Peterson, to approve the minutes of the September 11, 2018
Concurrent HRA City Council meeting. All voted in favor. Motion carried.
4. Approve minutes: September 11, 2018 HRA Meeting
MOTION by Peterson, seconded by Bergquist, to approve the minutes of the September 11, 2018
HRA meeting. All voted in favor. Motion carried.
5. Adiourn
MOTION by Peterson, seconded by Bergquist, to adjourn at 6:58 p.m. All voted in favor.
Motion carried.
Attest: Catherine Pausche, Clerk
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Chair Mark Wegscheid
Date: November 19, 2018
To: HRA Board Chair and Commissioners
From: Catherine Pausche, Director of Finance and Administrative Services
Subject: Resolution related to 2018A Refunding Bonds
The City of Mound approved the sale of $7,520,000 general obligation refunding bonds at the
November 13, 2018 regular meeting. One of the bond issues refunded was the 2009D bond issue
related to Tax Increment Financing District (TIF) 1-3.
The attached resolution is a housekeeping action to amend and restate the tax increment pledge
agreement related to the 2009D bonds to now apply to the 2018A refunding bonds.
Staff recommends approval of the attached resolution
Please let Catherine know if you have any questions regarding this matter at (952)472-0633
MOUND HOUSING AND REDEVELOPMENT
RESOLUTION NO.
RESTATEDRESOLUTION AUTHORIZING EXECUTION OF AN AMENDED ANJr,
TAX INCREMENTPLEDGE
CITY OF i 1 RELATING TO THE PRIOR 2009D BONDS
REFUNDING PORTION OF 000 GENERAL OBLIGATION
REFUNDINGBONDS, •
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, pursuant to a resolution approved by the City Council of the City on
December 11, 2007, and the authority conferred by Minnesota Statutes, Section 469.178, and
Minnesota Statutes, Chapter 475, the City issued and sold its Taxable General Obligation
Temporary Tax Increment Refunding Bonds, Series 2008A (the "Series 2008A Bonds"), in an
original aggregate principal amount of $4,010,000, in order to pay the outstanding principal of and
interest due on the Series 2005D Bonds at maturity;
WHEREAS, in conjunction with the issuance and sale of the Series 2008A Bonds, the
City and the HRA entered into an Amended and Restated Tax Increment Pledge Agreement, dated
December 11, 2007;
WHEREAS, the Series 2008A Bonds matured on August 1, 2010, and the City issued
general obligation bonds to redeem and prepay the outstanding principal of and interest due on the
Series 2008A Bonds;
WHEREAS, pursuant to a resolution approved by the City Council of the City on October
27, 2009, and the authority conferred by Minnesota Statutes, Section 469.178, and Minnesota
Statutes, Chapter 475, the City has issued and sold its General Obligation Tax Increment
Refunding Bonds, Series 2009D (the "Series 2009D Bonds"), in an original aggregate principal
amount of $4,020,000, to redeem and prepay the outstanding principal of and interest due on the
Series 2008A Bonds;
WHEREAS, the Series 2009D Bonds mature on February 1 2020, and the City intends to
issue general obligation bonds to redeem and prepay the outstanding principal of and interest due
on the Series 2009D Bonds;
WHEREAS, in conjunction with the issuance and sale of the Series 2009D Bonds, the
City and the HRA entered into an Amended and Restated Tax Increment Pledge Agreement, dated
October 27, 2009;
Isle
WHEREAS, pursuant to a resolution approved by the City Council of the City on
November 13, 2018 (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 its
general obligation bonds of the City in the aggregate principal amount of $1,920,000, designated
the Prior 2009D Bonds Refunding Portion of General Obligation Refunding Bonds, Series 2018A
(the "Series 2018A Bonds"), to redeem and prepay the outstanding principal of and interest due on
the Series 2009D Bonds;
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for
the payment of the principal and interest on the Series 2018A 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 2018A Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the
"Board") of the HRA, as follows:
1. The Chair and Executive Director of the ERA are hereby authorized to execute and
deliver the Pledge Agreement in substantially the form as shown in Exhibit A and made a pert
herein.
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 27th day of November, 2018.
Chair Mark Wegscheid
Attest: Catherine Pausche, Clerk
Im is e
by and between
CITY OF MOUND, MINNESOTA
and
I IM -1110 12 X11' 1 1
THIS AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT (this
"Agreement") is made and entered into on or as of the 27th day of November, 2018, 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").
WHEREAS, the City and the HRA duly established the Mound Harbor Tax Increment
Financing District (the "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 Minnesota Statutes, Sections 469.174 to 469.1794 (the "TIF Act");
WHEREAS, the HRA caused to be prepared a Tax Increment Financing Plan for the TIF
District (the "TIF Plan") and the Board of Commissioners of 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, pursuant to a resolution approved by the City Council of the City on
December ll, 2007, and the authority conferred by Minnesota Statutes, Section 469.178, and
Minnesota Statutes, Chapter 475, the City issued and sold its Taxable General Obligation
Temporary Tax Increment Refunding Bonds, Series 2008A (the "Series 2008A Bonds"), dated
January 3, 2008, in an original aggregate principal amount of $4,010,000, in order to pay the
outstanding principal of and interest due on the Series 2005D Bonds at maturity;
WHEREAS, the Series 2008A Bonds matured on August 1, 2010, and the City issued
general obligation bonds to redeem and prepay the outstanding principal of and interest due on the
Series 2008A Bonds;
WHEREAS, pursuant to a resolution approved by the City Council of the City on October
27, 2009, and the authority conferred by Minnesota Statutes, Section 469.178, and Minnesota
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Statutes, Chapter 475, the City has issued and sold its General Obligation Tax Increment
Refunding Bonds, Series 2009D (the "Series 2009D Bonds"), in an original aggregate principal
amount of $4,020,000, to redeem and prepay the outstanding principal of and interest due on the
Series 2008A Bonds;
WHEREAS, the Series 2009D Bonds mature on February 1 2020, and the City intends to
issue general obligation bonds to redeem and prepay the outstanding principal of and interest due
on the Series 2009D Bonds;
WHEREAS, pursuant to the authority conferred by Minnesota Statutes, Section 469.178,
and Minnesota Statutes, Chapter 475, the City has agreed to issue its $7,520,000 General
Obligation Refunding Bonds, Series 2018A, to be dated December 4, 2018, of which $1,920,000
is designated the Prior 2009D Bonds Refunding Portion (the "Series 2018A Bonds");
WHEREAS, pursuant to a resolution adopted by the City Council on November 13, 2018
(the 'Bond Resolution"), the principal and interest due on the Series 2018A Bonds will be paid
from tax increment revenues resulting from increases in taxable valuation of real property in the
TIF District and from an ad valorem tax levy;
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 2018A 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 Hennepin County Director of Resident and Real
Estate Services.
NOW, THEREFORE, the City and the HRA mutually agree to the following:
(1) The City will issue and sell the Series 2018A Bonds in accordance with the Bond
Resolution.
(2) The proceeds from the sale of the Series 2018A 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 2018A 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 2018A 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 the Series 2018A 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
2018A 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 2018A Bonds on any payment date may be retained by the HRA in the
M
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 2018A 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 Series 2018A Bonds (or any bonds issued to refund
such bonds).
(5) An executed copy of this Agreement shall be filed with the Hennepin County
Director of Resident and Real Estate Services pursuant to Minnesota Statutes,
Section 469.178, Subdivision 2.
IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be duly
executed on their behalf and the seal of the City to be hereunto affixed and such signatures and the
seal of the City to be attested, as of the day and year first above written.
ATTEST:
City Manager
(SEAL)
ATTEST:
Executive Director
2
Mayor
LeiNo LoingUJIVA 110101.
By_
Chair