City Council Resolution 2005-09 (2)HRA RESOLUTION NO. 2005-09
RESOLUTION AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF MONTICELLO RELATING TO $25,150,000GENERAL
OBLIGATION BONDS, SERIES 2005A
WHEREAS, The Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota (the "HRA") has established the Central Monticello Redevelopment
Project No. 1 (the "Project Area"), and approved a Redevelopment Plan (the "Plan") for the
Project Area; and
WHEREAS, the HRA and City have established Tax Increment Financing District No. 1-
34 (the "TIF District") within the Project Area in accordance with Minnesota Statutes,
Sections 469.174 to 469.179; and
WHEREAS, on July 25, 2005, the City Council approved the tax increment financing
plan for the TIF District; and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section 469.178, and
Minnesota Statutes, Chapter 475, the City has agreed to finance certain public redevelopment
costs to be incurred by the HRA or the City in the Project Area through the issuance of general
obligation bonds of the City in the principal amount of $8,550,000 (the "TIF Bonds"), which TIF
Bonds are issued as part of the City's Obligation Bonds, Series 2005A ("Series 2005A Bonds");
and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for
the principal and interest on the TIF Bonds; and
WHEREAS, the there has been presented to the HRA a Tax Increment Pledge Agreement
between the HRA and the City providing for the pledge of tax increments from the TIF District
to payment of principal and interest on the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board")
of the HRA, as follows:
I. The Chair and Secretary of the HRA are hereby authorized to execute and deliver
a Tax Increment Pledge Agreement with the City of Monticello, Minnesota substantially in the
form on file with the City.
2. This resolution shall be effective as of the date hereof.
Adopted by the Board of Commissioners of the Housing and Redev opment Authority in
and for the City of Monticello, Minnesota this 16t1i day of August, 2005.
hair
Attest:
..L .-- �� 41 o
�3
Secretary
275953v 1(SJB)
MN 190-120
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KG400-1
TAX INCREMENT PLEDGE AGREEMENT
by and between
CITY OF MONTICELLO, MINNESOTA
and
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF MONTICELLO, MINNESOTA
THIS AGREEMENT is made and entered into on or as of the 17th day of August, 2005,
by and between the City of Monticello, Minnesota (the "City"), and The Housing and
Redevelopment Authority in and for the City of Monticello, Minnesota (the "HRA").
WHEREAS, the HRA has established the Central Monticello Redevelopment Project
Area (the "Project Area"), and approved a Redevelopment Plan (the "Plan") for the Project Area;
and
WHEREAS, the HRA and City have established Tax Increment Financing District No. 1-
34 (the "TIF District") within the Project Area in accordance with Minnesota Statutes, Sections
469.174 to 469.179; and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section 469.178, and
Minnesota Statutes, Chapter 475, the City has agreed to finance certain public redevelopment
costs to be incurred by the HRA or the City in the Project Area through the issuance of general
obligation bonds of the City in the principal amount of $8,550,000 (the "TIF Bonds"), which TIF
Bonds are issued as part of the City's Obligation Bonds, Series 2005A ("Series 2005A Bonds");
and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for
the principal and interest on the TIF Bonds.
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 County Auditor of Wright County;
NOW, THEREFORE, the City and the HRA mutually agree to the following:
The City will sell the Series 2005A Bonds, including the TIF Bonds.
(2) The proceeds from the sale of the bonds and interest earning thereon will be made
available to the City or HRA to pay or reimburse the cost of City Project No.
2004 -OIC together with a portion of the improvement project duly ordered as
Project No. 2004-2C, which projects are an interchange improvement and related
road improvements benefiting property within the TIF District.
(3) The HRA hereby pledges to the payment of the principal of and' interest on the
TIF Bonds portion of the Series 2005A Bonds the tax increments derived from the
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MN 190-120
TIF District and received by the HRA, in an amount that, together with special
assessments pledge to the TIF Bonds, does not exceed 105% of such principal and
interest due on the TIF Bonds from time to time (the "Pledged Tax Increment").
(4) Not less than three (3) business days prior to each debt service payment date for
the TIF Bonds, there shall be transferred from the account for the TIF District to
the TIF Account in the Debt Service Fund maintained by the City for the payment
of the Bonds, an amount of Pledged Tax Increment which when taken together
with amounts already on deposit in such Debt Service Fund, is equal to the
principal of and interest on the Bonds to become due on the subject payment date.
Any Pledged Tax Increment in excess of 105% of the principal and interest due
with respect to the Bonds on any payment date (after taking into account any
special assessments available for such purpose) may be retained by the HRA in
the tax increment account for the TIF District and applied to any public
redevelopment costs of the Project Area in accordance with law.
(5) Without regard to anything in this Agreement to the contrary, Pledged Tax
Increment shall be available (at the HRA's option on a parity, superior or
subordinate basis) to pay principal of and interest on both the 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 Area. The HRA
reserves the right to release all or any portion of Pledged Tax Increment from the
pledge under this Agreement (including without limitation the release of Pledged
Tax Increment from any specific parcel within TIF District No. 1-34) to the extent
permitted by law, provided that in no event may the HRA reduce the pledge such
that Pledged Tax Increment is reasonably expected to pay less than 20 percent of
principal and interest on the TIF Bonds portion of the Series 2005A Bonds.
(6) An executed copy of this Agreement shall be filed with the County Auditor of
Wright County pursuant to the requirement contained in Minnesota Statutes,
Section 469.178, Subdivision 2.
(The remainder of this page is intentionally left blank.)
WILLEC-1958440 2
FORMS -FORMS
IN WITNESS 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 Administrator
(SEAL)
CITY OF MONTICELLO, MINNESOTA
Mayor
(Signature Page to the Tax Increment Pledge Agreement)
WILLEC-1958441 S-1
FORMS -FORMS
ATTEST:
(!IL -Ak
Secretary
(SEAL)
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNES A
r
B -�
y
Chal
(Signature Page to the Tax Increment Pledge Agreement)
WILLEC-19584401_
FORMS -FORMS s
STATE OF MINNESOTA
COUNTY OF WRIGHT
COUNTY AUDITOR'S
CERTIFICATE
I, the undersigned County Auditor of Wright County, Minnesota, hereby certify that a
Tax Increment Pledge Agreement by and between the City of Monticello, Minnesota and the The
Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, dated as of
August 17, 2005, relating to the City's $25,150,000 General Obligation Bonds, Series 2005A, has
been filed in my office.
WITNESS my hand and official seal this 17`x' day of August, 2005.
(SEAL)
CAW -260332v]
KG400-1
County Auditor
Wright County, Minnesota
Deputy