Loading...
HRA Resolution 2005-03HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONT><CEIL,ILO RESOLUTION NO. 2005 -03 SOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH TAPPER'S HOLDINGS ILILC AND AWARDING THE SALE OF, AND PROVrDING THE- FORM, TERMS, COVENANTS AND DIRECTIIONS FOR THE ISSUANCE OF ITS $67,000 TAN INCREMENT REVENUE NOTE, SERIES 2005 BE IT RESOLVED BY the Board of. Commissioners ( "Board ") of the Housing and Redevelopment Authority in and for the City of Monticello, Minnesota (the "Authority ") as follows: Section 1. Authorization, Award of Sale. 1.01. Authorization. The Authority and the City of Monticello have heretofore approved the establishment of its Tax Increment Financing District No. 1 -33 (the "TIF District ") within its Central Monticello Redevelopment Project No. 1 (the "Project "), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the site improvement costs of the Project. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell its $67,000 Tax Increment Revenue Note, Series 2005 (the Note) for the purpose of financing certain site improvement costs of the Project. The Note may be increased to a principal amount of $100,000 pursuant to the terms of the Note set out below. 1.02 Agreement Approved; Issuance, Sale, and Terms of the Note. The Authority hereby approves the Contract for Private Redevelopment (the "Agreement ") between the Authority, Tapper's Holdings LLC (the "Owner ") and Strategic Equipment and Supply Corporation (the "Tenant "), and authorizes the Chairperson and Executive Director to execute such Agreement in substantially the form on file with the City, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. The Authority hereby delegates to the Executive Director the determination of the date on which the Note is to be delivered, in accordance with Section 3.3 of the Agreement. Pursuant to the Agreement, the Note shall be sold to the Owner. The Note shall be dated the date of delivery thereof, and shall bear interest at the rate of 6.20% per annum to the earlier of maturity or prepayment. The Authority shall receive in exchange for the sale of the Note the agreement of the Owner to pay the cost of site improvements as defined in the Agreement. 258646(JAE) MN 190-118 Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF WRIGHT HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICELLO No. R -1 TAX INCREMENT REVENUE NOTE SERIES 2005 Rate 6.20% $67,000 Date of Original Issue The Housing and Redevelopment Authority in and for the City of Monticello ( "Authority ") for value received, certifies that it is indebted and hereby promises to pay to Tapper's Holdings LLC (the "Owner "), the principal sum of $67,000 and to pay interest thereon at the rate of 6.20% per am -ium, as and to the extent set forth herein. The principal sum of this Note may be increased to a sum of $100,000, with interest accruing from the date of original issuance, 1. Payments. Principal and interest ( "Payments ") shall be paid on August 1, 2007 and each February 1 and August 1 thereafter to and including February 1, 2012 ( "Payment Dates ") in the amounts and from the sources set forth in Section 3 herein. At the discretion of the Authority, the principal amount of this Note may be increased to $100,000, with interest accruing from the date of original issuance, and the Payments extended to February 1, 2015, if the conditions in Section 3.3(b) of the Agreement (as defined in Section 3 hereof) are met. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 3 0 days written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a year of 360 days and charged for actual days principal is unpaid. 258646(JAE) 2 MN 190-118 3. Available Tax Increment; Available Authority Funds. Payments on this Note are payable on each Payment Date solely from and in the amount of "Available Tax Increment," which shall mean, on each Payment Date, 95% of the Tax Increment attributable to the Redevelopment Property and paid to the Authority by Wright County in the six months preceding the Payment Date, all as such terms are defined in the Contract for Private Redevelopment between the Authority and Tapper's Holdings LLC, a Minnesota limited liability company (the "Redeveloper ") dated on or after February 11h, 2005 (the "Agreement ") 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 and the failure of the Authority to pay the entire amount of principal or interest on this Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment. The Authority shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2012. If the Note principal amount is increased and the maturity is extended pursuant to Section 3.3(b) of the Agreement, the Authority shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 2015. 4. Default. If on any Payment Date there has occurred and is continuing any Event of Default under the Agreement, the Authority may withhold from payments hereunder under all Available Tax Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the Available Tax Increment withheld under this Section shall be deferred and paid, without interest thereon, on the next Payment Date after the Event of Default is cured. If the Event of Default is not timely cured, the Authority may terminate this Note by written notice to the Owner in accordance with the Agreement. 5. Optional Prepayment. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Note. 6. Nature of Obligation. This Note is one of an issue in the total principal amount of $67,000 (the total principal amount of the Note may increase to $100,000 as described more fully in Section 1 hereof), issued to aid in financing certain site improvement costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, and is issued pursuant to an authorizing resolution (the "Resolution ") duly adopted by the Authority on February 15, 2005, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 258646(JAE) 3 NN 190 -118 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. This Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner, unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Monticello have caused this Note to be executed with the manual signatures of its Chairperson and Executive Director, all as of the Date of Original Issue specified above. U Executive Director HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MONTICE O hairperson REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. 258646(JAE) 4 MN 190-118 Date of Registration Registered Owners Signature of City Finance Director � 'a ` Tapper's Holdings LLC °Z®�o Federal ID No. 'Ao ---'.1 Section 3. Terms, Execution and Delivery. 3.01. Denomination, Pa ln�. The Note shall be issued as a single typewritten note numbered R -1. The Note shall be issuable on1,1 in frilly registered form. Principal of and interest on the Note shall be payable bv -' ' ssued by the Registrar described herein. ® of and interest on the Note shall be payable by mail to the 'business on the fifteenth day of the month preceding the Cam' business day. hereby appoints the City Finance Director to perform i} and paying agent (the "Registrar "). The effect of uthority and the Registrar with respect thereto shall be ,ep at its office a bond register in which the Registrar s of the Note and the registration of transfers and e: surrender for transfer of the Note duly endorsed by the reg, ,jL accompanied by a written instrument of transfer, in form reasonably sati, LU the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no 258646(JAE) 5 MN 190-118 liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so paid. ( Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its Chairperson and Executive Director. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the Note all Available Tax Increment as defined in the Note. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest on the Note. The Authority irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment. Any Available Tax Increment 258646(JAE) 6 MN 190-118 remaining in the Bond Fund shall be transferred to the Authority's account for the TIF District, and any Available Authority Funds shall be transferred to any Authority account as directed by the Executive Director, upon the payment of all principal and interest to be paid with respect to the Note. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore fiirnished, shall be deemed representations of the Authority as to the facts recited therein. Section 6. Effective Date. This resolution shall be effective upon full execution of the Agreement. 258646(JAE) 7 MN 190-118 Adopted this 15th day of February, 2005. Chairperson Executive Director 258646(JAE) MN 190-118