HRA Agenda 07-23-2001 SpecialAGENDA -SPECIAL MEETING
• MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Monday, July 23, 2001 - 6:30 p.m.
~0~ Walnut Street -ACADEMY ROOM
Commissioners: Chair D rie, Uice Chair Brad Bar~T . Steve A ews, Darr• ahr, and
ob Murra
Council Liaison: Brian Stumpf.
Staff: Rick Wolfsteller, Ollie opchak, and Lori Kraemer.
Guest: Mark Ru hlers & Associates
l~ ~• °3 °
1. Call to Order.
2. Consideration to adopt a resolution pledging tax increment from TIF District No. 1-22 for
payment of $2,150,000 Taxable Temporary G.O. Tax Increment Bonds.
3. Other Business.
• 4. Adjournment. ~~ , `~
HRA Agenda - 7/23/01
2. Consideration to adopt a resolution pledging_tax increment from TIF District No. 1-
22 for pa~~ment of X2,150,000 Taxable Temporary G.O. Tax Increment Bonds.
A. Reference and background:
At the HRA meeting of July 11, 2001, the commissioners called a special meeting of the
HRA to consider adopting a resolution pledging tax increment from TIF District No. 1-22
for payment of $2,150,000 Taxable Temporary G.O. Tax Increment Bonds. The
awarding for sale of the bonds is on the Council agenda following the HRA special
meeting.
The HRA recommended the Council issue the bonds for the following reasons: One, it
extends the life of the 5-year rule for the Downtown TIF District by two years or until
August 1, 2004 (three years from date of bond sale) allowing time to complete projects in
the pipeline and future redevelopment projects. Secondly, it provides protection for the
existing internal loans. And lastly, it provides the option to apply for a grant if a
shortfall would occur although not anticipated.
B. Alternative Actions: ~ ~ -
1. A motion to adopt a resolution pledging tax increment from TIF District No. 1-22
for payment of $2,1 X0,000 Taxable Temporary G.O. Tax Increment Bonds.
2. A motion to deny adoption of a resolution pledging tax increment from TIF
District No. 1-22 for payment of $2,150,000 Taxable Temporary G.O. Tax
Increment Bonds.
C. Recommendation: .~-x ~ ` ~ `~- ~-
~' ~~
Recommendation is Alternative No. 1. "'~ ~.~
D. Supporting Data:
Resolution for adoption and other.
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TAX INCREMENT PLEDGE AGREEMENT
by and between
CITY OF MONTICELLO, MINNESOTA
and
THE HOUSING AND REDEVELOPMENT AtJTHORI'TY IN AND
FOR THE CITY OF MONTICELLO, MINNESOTA]
THIS AGREEMENT is made and entered into on or as of the day of July, 2001, 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 Redevelopment Project No. 1 (the "Project"), 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-
22 (the "TIF District") within the Project 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 $2,1 X0,000, designated the Taxable
General Obligation Temporary Tax Increment Bonds, Series 2001, and hereinafter referred to as
the "Bonds"; and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for
the principal and interest on the 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 Ciry 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 interest earning thereon will be made
available to the City or HRA to pay or reimburse certain public redevelopment
costs paid, incurred, or to be paid or incurred by the City or HRA in connection
with the TIF District and the Project.
(3) The HRA hereby pledges to the payment of the principal of and interest on the
Bonds the tax increments derived from property in the TIF District and received
by the HRA, in an amount sufficient to pay 105% of such principal and interest
due on the Bonds from time to time (the "Pledged Tax Increment").
s.i~-~oo~ i o~ i
MN 190-96
(4) Not less than three (3) business days prior to each debt service payment date for
the Bonds. there shall be transferred from the account for the TIF District to 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 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.
(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.
IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be duly
execLrted on their behalf and their seals to be hereunto aflixed and such signatures and seals to be
attested, as of the day and year first above written.
ATTEST: CITY OF MONTICELLO, MINNESOTA
By
City Administrator Mayor
(SEAL)
•
SJB-200410~~1
MN 190-96
•
U
•
ATTEST:
Secretary
(SEAL)
s.i e-aoo~ i o~ i
MN 190-96
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
MONTICELLO, MINNESOTA
By
Chair
STATE OF MINNESO'hA
COUNTY OF WRIUHT
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
Housing and Redevelopment Authority in and for the City of Monticello, Minnesota, dated as of
July 2001, relating to the City's $2,150,000 Taxable General Obligation Temporary Tax
Increment Bonds, Series 2001, has been filed in my office.
WITNESS my hand and official seal this day of
(SEAL)
2001.
County Auditor
Wright County, Minnesota
By
Deputy
•
COUNTY AUDITOR'S
s.i~-zooa i o~ i
MN 190AG
• HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF MONTICELLO RELATING TO $2,150,000 TAXABLE GENERAL
OBLIGATION TEMPORARY TAX INCREMENT BONDS, SERIES 2001
WHEREAS, The Housing and Redevelopment Authority in and for the City of
Monticello, Minnesota (the "HRA") has established Redevelopment Project No. 1 (the
"Project"), and approved a Redevelopment Plan (the "Plan") for the Project; and
WHEREAS, the HRA and City have established Tax Increment Financing District No. 1-
22 (the "TIF District") within the Project 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 $2,150,000, designated the Taxable
General Obligation Temporary Tax Increment Bonds, Series 2001, and hereinafter referred to as
the "Bonds"; and
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for
the principal and interest on the 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:
1. 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, providing for tl~e pledge of tax increment derived from property in the
TIF District for the payment of the principal of, premiLim, if any, and interest on, the Bonds.
2. This resolution shall be effective as of the date hereof.
s.i i3-goo=~ i o~ i
MN 190-96
Adopted by The Mousing and Redevelopu~ent Authority in and for the City of
Monticello, Minnesota this day of , 2001.
Chair
Attest:
Secretary
•
.7
s~Ei-2ooaio~i
MN 190 ~)6
•
JUL. 11. ZUUI 11:lyRM tI1LtKJ ~ AJ5Ut,1NItJ
IVV UJ7L I L/Y
Monticello, MN
X2,150,000 Taxable Tunponry G.O. Tax Incrcmen~ Bonds, Suits 7/31/2001
SOURCES 8~ USES
Daccd 07/31/Z00 Delivered 07/31/2001
SOURCES OF FUNDS
Par Amount of Bonds .................._.Y.............................._..........----....... SZ,150,000.00
Construedon Fund Incerccc F~rnings ..................................................... 43,000.00
TOTAI, SOUAC.ES .......................__..---........................_.............._....... $2,193,000.00
USES OF FUNDS
Tod Undecwritds Discount (1.00096)_.....__....
GOSrs ofIstuance.---° ............................•----...--°--...
Deposit m Capiraliu~ Incc[est (CZF) Fund..._-----
Dcpa+it m Project Consrrucdon Fund ..................
Rounding Arruaunz.....~r ............................._.
21,500.00
14,000.00
154,33635
2,000,000.00
3,163.65
TOTAL USES ..................................................................................•..... 52,193,000.00
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Ehlers & Asweiaars, Inc.
Leaders in Public Finance since 1955
- t Precis Taxable GO Temp- SINGLE PURPOSE
7/12/Z001 11:19 AM
Page 7
IYV. UJ7[ ~ ~~ ~
JUL.1 11 19AM EHLERS & ASSOCIA
Monticello, MN
52,150,000 Taxable Tempo~ry G.O. Tauc Increment Bonds, Series 7/31/2001
NET DEBT SERVICE SCHEDULE
Tod P+I CZF Ntx Ncw D/S FTSCAI-TOTAL
Duc Prinapsl Coupon Inter~ss
7/31n001 _ 47-79 47.344.79 (47.344.79)
7/018002
- S6,~3750 56,43750 (56,437.501 -
-
7/01l2002 -
- 437.50
56 56,43750 43750)
(56, -
-
1/012003 -
7/~n003 - _ ,
56,43750 56,437.50 -
_ 56,43750
56,437.50 112,875.00
1/01/2004 - -
00 5.2507L
000
50 56,43750
56,43750 5b,437.50
2,206
43750 - 2,Zp6,437.50 -
2
200,437.50
.
,
7ro1n~4 2,1 : - -
,
1rolnoos - - -
329S3Z.Z9 2,479,532.29 (160,279.79) 2,319,31ZS0 -
Total 2,150,000.00 -
~~ & ~~~~ Tnc. Filc = MONTICELLOSF-Scr Ol S2,000K Na Prcd, Tuablc GO Tetnp-7~~ PUR 90AS~E
I,cacicss in Public F~cc sincc 1955
•
u
Vage 3
JUL. 12. 2001 11:19AM EHLERS & ASSOCIATES
-NO 6392'P 3/4
Monticello, MN
52,15 0,000 Taxable Temporary G.O. Tax Increnicnu Boads, Series 7/31/2001
DEBT SERVICE SCHEDULE
Dace Principe! Coupon Itucrecr ToraI P+I FISCAL TOTAI.
7/31/2001 - - - ,
1/01/2002 - - 47,344.79 47,344.79 47,344.79
7/01/2002 - 56,437.50 56,43750 -
1/01/2003 - - 56,43750 56,437.50 112,875.00
7/01!2003 - - 56,437.50 56,437.50 -
1/012004 - - 56,43750 56,43750 11x,875.00
7/01/2004 2,150,000.00 5.250% 56,437.50 2,206,437.50 -
1/01/2005 - - - 2.206,43750
Total 2,150,000.00 - 32953229 2,479,53239 -
YIELD STATISTICS
Bond Yost Dollars .......................•.......................................................--•----...............
Average Lik ................................................................................__........................_
Avcrrgc Coupon......._........_ ......................._._....................................~_................
NAT Inccrest Cost (NIC) ......................................_.-..................................................
True Intcresr Cost (TZC) ...................................»_............................................... .
Band Yield for Arbiaagc Purposcs........__._ ......................_._.._._.......................
All Inclusive Cosc (AIC) ...................................._.._.................. ........_.............
..,..
IRS FORM 8038
Nct Intcnsr Cose ................._...................r..........................»....._..........................
Wcighcr:d Avcxagc Matutiry .................................
'~
56,276.81
2.919 Years
5.2500000%
5.5925309%
5.6280430% •
5.2516872%
5.8756159%
5.2500000%
2.919 Y~x
Ehlers & Associates, Inc. F;le = MONTICELLO.SF-Scr Ol 52,000K Nee Prcds Taxeble GO Temp- SINGLY PURPOSE
Lcedcts in Public Finance since 1955 7/128001 11:19 AM
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