HRA Resolution 1990-09HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 90 -9
RESOLUTION AUTHORIZING EXECUTION OF A TWO
TAX INCREMENT PLEDGE AGREEMENTS
WHEREAS, the Monticello Housing and Redevelopment Authority (the
"HRA") has heretofore established Tax Increment Financing District No. 1 -9 and
Tax Increment Financing District No. 1 -10 (together, the "Districts "), prepared Tax
Increment Financing Plans (the "Plans ") for the Districts, and has heretofore
approved the Plans; and
WHEREAS, the City Council of the City of Monticello (the "City ") has
heretofore approved the Plans; and
WHEREAS, in order to finance certain public redevelopment costs of the
HRA's Redevelopment Project No. 1 relating to 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 $305,000 aggregate principal
amount of General Obligation Taxable Tax Increment Bonds, Series 1990D of the
City and the interest thereon, issued to finance such public redevelopment costs.
NOW, THEREFORE, BE IT RESOLVED by the Monticello Housing and
Redevelopment Authority, in and for the City of Monticello, Minnesota:
1. That the Chair and the Secretary of the HRA are hereby authorized
and directed to execute the Tax Increment Pledge Agreements (the "Agreements ")
on behalf of the Authority in substantially the form attached hereto as Exhibits A
and B and incorporated herein by reference.
2. Upon execution of the Agreements 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 each of the Agreements with the
County Auditor of Wright County, Minnesota.
Attest:
Adopted this -14th day of November, 1990.
Secretary
j Chair
Governmental
Unit: The Housing and Redevelopment Authority In and For the City
of Monticello, Minnesota
Governing body: Board of Commissioners
Meeting: A meeting of the Board of Commissioners of The Housing and
Redevelopment Authority In and For the City of Monticello,
Minnesota held on the 14th day of November, 1990 at 7:30 A.M.
4XYM at the City Hall in the City of Monticello, flAinnesota.
Commissioners Chairperson Al Larson, Ben Smith, Lowell Schrupp, and
present: Everette Ellison.
Commissioners Tom St. Hilaire
absent:
Documents: A copy of the Resolution Authorizing Execution of Two Tax
Increment Plege Agreement.
Certification:
I, Olive Koropchak , Executive Director of The Housing and
Redevelopment Authority In and For the City of Monticello, Minnesota do hereby
certify the following:
Attached hereto is a true and correct copy of a resolution on file and of
record in the offices of The Housing and Redevelopment Authority In and For the
City of Monticello, Minnesota which resolution was adopted by the Board of
Commissioners at the meeting referred to above. Said meeting was a
Special meeting of The housing and Redevelopment Authority In and For
the City of Monticello, Minnesota, was open to the public, and was held at the time
and place at whir -h meetings, of the Board of Commissioners are regularly held.
MemberEverette Ellisounoved the adoption of the attached resolution. The
motion for adoption of the attached resolution was seconded by Member
Ben Smith , A vote being taken on the motion, the following voted in favor of
the resolution:
Everette Ellison, Ben Smith, Al Larson, and Lowell Schrupp.
and the following voted against the resolution:
None
1
whereupon said resolution was declared duly passed and adopted. The attached
resolution is in full force and effect and no action has been taken by The Housing
and Redevelopment Authority In and For the City of Monticello, Minnesota which
would in any way alter or amend the attached resolution.
Witness my hand officially as the Commissioner of The Housing and
Redevelopment Authority In and For the City of Monticello, Minnesota this 14th
day of November 19900
-„
City Administrator
2
EXFIIBIT A
TAX INCREMENT PLEDGE AGREEMENT
by and between
THE 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 14th day of
November, 1990, 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 No. 1 -9
(the "District "), prepared the Tax Increment Financing Plan (the "Plan ") for the
District, and approved the Plan, as modified, on August 13, 1990; and
WHEREAS, the City Council of the City approved the Plan, as modified, on
August 13, 1990; 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 in Redevelopment
Project No. 1 (the "Project ") through the issuance of general obligation bonds of
the City, designated the $305,000 General Obligation Taxable Tax Increment
Bonds, Series 1990D (the "Bonds "); and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues
from the District and from Tax Increment Financing District No. 1 -10 to the City
for the payment of the principal of and interest on the Bonds; and
WHEREAS, pursuant to Minnesota Statutes, Section 469.178, subd. 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:
(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 Project, $140,000 of which are to be
used by the HRA in connection with 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
principal and interest on the Bonds, tax increment from the Project Fund in
an amount equal to 105% of the following annual principal and interest
payments 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 interest is payable from proceeds of the Bonds deposited in the Debt
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 Countve
- ✓ - Auditor - - V Wright - _ J
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.
A -2
Total
Year of
Principal
Maturity
Principal
Interest
& Interest
1992
$ 0
159326
$ 159326
1993
159000
129261
27,261
1994
159000
119005
269005
1995
159000
99730
249730
1996
15,000
89425
23,425
1997
20,000
79120
27,120
1998
20,000
59340
25,340
1999
20,000
3,560
23,560
2000
209000
1,780
21,780
(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 interest is payable from proceeds of the Bonds deposited in the Debt
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 Countve
- ✓ - Auditor - - V Wright - _ J
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.
A -2
ATTEST:
( SEAL)
ATTEST:
Ad inistrator
CITY OF MON ICEL�,� j
By
Mayor `
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
\r"\' \e, cr�
By
Secretary Chairman
A -3
A Idl, I 1 0.3 W iff,
TAX INCREMENT PLEDGE AGREEMENT
by and between
THE 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 14th day of
November , 1990, 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 No. 1 -10
(the "District "), prepared the Tax Increment Financing Plan (the "Plan ") for the
District, and approved the Plan, as modified, on April 6 , 1990; and
WHEREAS, the City Council of the City approved the Plan, as modified, on
April 9 , 1990; 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 in Redevelopment
Project No. 1 (the "Project ") through the issuance of general obligation bonds of
the City, designated the $305,000 General Obligation Taxable Tax Increment
Bonds, Series 1990D (the "Bonds "); and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues
from the District and from Tax Increment Financing District No. 1 -9 to the City
for the payment of the principal of and interest on the Bonds; and
WHEREAS, pursuant to Minnesota Statutes, Section 469.178, subd. 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:
(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 Project, $165,000 of which are to be
used by the HRA in connection with the Districts
(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
principal and interest on the Bonds, tax increment from the Project Fund in
an amount equal to 105% of the following annual principal and interest
payments due on the Bonds:
(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 interest is payable from proceeds of the Bonds deposited in the Debt
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 r1l 4-
k-.vui,�y LA UlLo �I VV 11,L �OurLya
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.
Total
Year of
Principal
Maturity
Principal
Interest
& Interest
1992
$ 0
189083
$ 18,083
1993
152000
149466
29,466
1994
15,000
139210
28,210
1995
20,000
11,935
31,935
1996
20,000
109195
309195
1997
209000
89455
28,455
1998
259000
69675
319675
1999
259000
4,450
299450
2000
25,000
29225
279225
(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 interest is payable from proceeds of the Bonds deposited in the Debt
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 r1l 4-
k-.vui,�y LA UlLo �I VV 11,L �OurLya
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
4ministrator Mayor
( SEAL)
ATTEST:
UL,iL \''1 • \< CTZ w "C s J-1—
Secretary
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MONTICELLO, MINNESOTA
r
By
�" Chairman