HRA Resolution 1989-05HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 1989 -5
RESOLUTION AUTHORIZING EXECUTION OF A TAX
INCREMENT PLEDGE AGREEMENT
WHEREAS, the Monticello Housing and Redevelopment Authority (the
"HRA ") has heretofore established Tax Increment Financing District No. 1 -2 (the
"District "), prepared a Tax Increment Financing Plan (the "Plan ") for the District,
and has 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 469.178, securing $260,000 aggregate principal amount
of General Obligation Taxable Tax Increment Bonds, Series 1989A of the City and
the interest thereon, issued to finance the District.
NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and
Redevelopment Authority,
1. That the Chair and the Secretary of the HRA are 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 Exhibit 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 469.178, to file an executed copy of the Agreement with the County
Auditor of Wright County, Minnesota.
Adopted this 2 day of August; `w 989.
i
/ Chair
Attest:
QAX'1� \M ��
Secretary
1P ! a
THIS AGREEMENT is made and entered into on or as of the 2 day of
August , 1989, 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 established Tax Increment Financing District loo. 1 -2
(the "District "), prepared the Tax Increment Financing Plan (the "Plan ") for the
District, and approved the Plan, as modified, on September 7 919 -88 and
WHEREAS, the City Council of the City approved the Plan, as modified, on
September 26, -1988 and
WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section
469.178, and Minnesota Statutes, Chapter 4759 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
$260,000 General Obligation Taxable Tax Increment Bonds, Series 1989A (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 469.1789 subd. 29 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 Bonds and the earnings 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
dntP of this Agreement shall be deposited osited in a special fund (the "Project
Fund ") held by the HRA® The HRA hereby pledges to the payment of the
principal and interest on the Bonds, tax increment from the Project Fund in
an amount equal to 105% of the annual principal and interest due on the
Bonds.
A -1
(4) Not later than five (5) business days prior to each February 1
and August 1 debt service payment date for the Bonds, 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 the principal and interest next due on the Bonds. If at any time the
Project Fund contains an amount in excess of the amount to be transferred
to the Debt Service Account for the payment of the Bonds on the following
two debt service payment dates (excluding debt service payment dates for
which intPrp-,t iS payable from prn(?PPrk, of the RonfiS dPnnGitPrJ in th_e Deht
Service Account), 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.
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 MONTICEL
ca'4� 4� " V �
/J0 Z-� By
Adm nistrator Mayof-
(SEAL)
ATTEST:
�N-\ `<�/ cj� e
Secretary
r1M
THR HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
By -'
Chairman