HRA Resolution 1985-7HRA
Resolution No. 1985 #7
RESOLUTION AUTHORIZING EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT
WHEREAS, the Monticello Housing and Redevelopment Authority (the
"HRAII) has heretofore established Redevelopment District No. 6 (the "District "),
oreDared q Tax Increment Finnnnincr Plan (tha IlPlan «1 fn.. +Iii in;c, +,%;.,+ and Has
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heretofore approved the Plan; and
WHEREAS, the City Council of the City of Monticello (the "City ") has
heretofore approved the Plan; and
WHEREAS, in order to finance the District, it is necessary that the
Authority enter into a Tax Increment Pledge Agreement with the City pursuant to
Minnesota Statutes, Section 273.77, securing $350,000 aggregate principal amount
of General Obligation Tax Increment Bonds, Series 1935 of the City and the interest
thereon, issued to finance the District and any additional bonds that may be issued
to finance the District.
NOW THEREFORE, BE IT RESOLVED by The Monticello Housing and
Redevelopment Authority,
1. That the Chair of the HRA is hereby authorized and directed to
execute the Tax Increment Pledge Agreement (the "Agreement "), on behalf of the
Authority in substantially the form attached hereto as Exhbit A and incorporated
herein by reference.
2. Upon execution of the Agreement by the parties thereto, the
Secretary of the Authority is hereby directed pursuant to Minnesota Statutes,
Section 273.77, to file an executed copy of the Agreement with the County Auditor
of Wright County, Minnesota.
Adopted this :_ day of ` X1935.
a
Chair �
Attest,*+
Q
j mss;
Secretary
TAX INCREMENT PLEDGE AGREEMENT
by and between
THE CITY OF MONTICELL09 MINNESOTA
and
► HOUSING D REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOMTICELL09 MINNESOTA
THIS AGREEMENT is made and entered into on or as of the ;-. day of
Ut6P?E , 1985, 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 11HRA11).
WHEREAS, the HRA established Redevelopment District No. 6 (the
"District "), prepared the Tax Increment Financing Plan #6 (the "Plan ") for the
District, and approved the Plan on October 10, 1985; and
WHEREAS, the City Council of the City approved the Plan on November 12,
1985; and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section
273.77, and Minnesota Statutes, Chapter 475, the City has agreed to finance
certain public redevelopment costs to be incurred by the HRA in the District
through the issuance of general obligation bonds of the City, designated the
$350,000 General Obligation Tax Increment Bonds, Series 1985, and hereinafter
referred to as the "Bonds "; and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to
the City for the payment of the principal of and interest on the Bonds; and
WHEREAS, pursuant to Minnesota Statutes, Section 273.77(a), 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;
(1) The City will sell the Bonds.
(2) The proceeds from the sale of the hands and the earnincrc from
the investment of such proceeds will be made available to the HRA to pay
or reimburse the HRA for public redevelopment costs paid, incurred, or to
be paid or incurred, by the HRA in the District.
(3) All tax increment generated by the District from and after the
date of this Agreement shall be deposited in a special fund (the "Project
Fund ") held by the HRA. The HRA hereby pledges to the payment of the
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LJL 1LO-IVGtl CLLIU interest on t,1lC DV11Ub, UTA 111C1*e111e11L IrOITI the Project rung In
an amount equal to 105% of the annual principal and interest due on the
Bonds®
(4) Before the date of certification of City taxes in each year for
collection by Wright County (such date being hereinafter referred to as the
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"Certification Date "), there shall 'be transferred from the Project Fund to
the Debt Service Account maintained by the City for the payment of the
Bonds, an amount which when taken together with amounts already on
deposit in the Debt Service Account, is equal to 105% of all principal and
interest then due or to become due on the Bonds on the following three debt
service payment dates. If, prior to any Certification Date the Project Fund
contains an amount in excess of the amount to be transferred to the Debt
Service Account maintained by the City for the payment of the Bonds
before such Certification Date, then such excess amounts shall be available
to the HRA to pay or reimburse the HRA for public redevelopment costs
paid, incurred, or to be paid or incurred, by the HRA in the District.
(5) Without regard to anything in this Agreement to the contrary,
tax increment generated by the District shall be available 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 District.
(6) When the entire public redevelopment costs of the District
have been paid and all principal and interest on the Bonds and other
obligations issued to finance the public redevelopment costs of the District
have been paid, and the City has been reimbursed from collections of tax
increment from the Project for collections of general ad valorem taxes used
to pay principal of and interest on the Bonds, then the HRA shall report such
fact to the City Council of the City and the HRA shall submit a final
statement of such payments. Upon audit of this statement and approval
thereof by the City Council, the payment of the expenditures of the HRA in
the Project shall be reported to the County Auditor of Wright County.
(7) 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 273.77(x).
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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 OF MONTICELLO
By
Clerk-A&M-nistrator Mayor
(SEAL)
ATTEST:
Secretary
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THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELL09 MINNESOTA
By
Chairman