A General Obligation Bonds C OF
690 City Center Drive
PO Box 147
Chanhassen, Minnesota 55317
Phone
952.937.1900
Generat Fax
952.937.5739
Engineering Department Fax
952.937.9152
Building Department Fax
952.934.2524
Web Site
www. cl. chanhassen, mn. tis
TO:
Economic Development Authority
FROM: Todd Gerhardt, Acting City Manager
DATE: July 5, 2001
SUB J:
Consider Approval of a Pledge Agreement Authorizing the City of
Chanhassen to Issue the Sale of $2,720,000 in General Obligation
Tax Increment Refunding Bonds, Series 2001D
Attached is a resolution authorizing the execution of a Pledge Agreement
authorizing the City of Chanhassen to issue the sale of $2,720,000 in General
Obligation Tax Increment Refunding Bonds, Series 2001D.
The sale of these bonds will be used to refinance public improvement projects
within the downtown area. Refunding these bonds results in an approximate
$70,000 savings because of lower interest rates.
RECOMMENDATION
Staff is recommending approval of the resolution authorizing the Pledge
Agreement, the execution of the Agreement and the filing of the Pledge
Agreement with the Carver County Auditor.
ATTACHMENT
.
Resolution Authorizing the Execution of a Pledge Agreement.
Pledge Agreement.
e Ci~. o. fChanhassen. A growh~ commtm/O, w/th c[ean [akes, quality schools, a charmin~ downtown, thrivin¢ businesses, and beautifiul oarks. A ereat dace to live, work, and da~:
EXTRACT OF MINUTES OF A MEETING OF THE
BOARD OF COMMISSIONERS OF THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE
CITY OF CHANHASSEN, MINNESOTA
HELD: July 9, 2001
Pursuant to due call and notice thereof, a meeting of the Board of
Commissioners of the Economic Development Authority of the City of Chanhassen, Carver and
Hennepin Counties, Minnesota, was duly called and held at the City Hall in said City on
Monday, the 9th day of July, 2001, at o'clock _.M.
The following members were present:
and the following were absent:
Member
adoption:
introduced the following resolution and moved its
RESOLUTION AUTHORIZING EXECUTION OF
A PLEDGE AGREEMENT
A. WHEREAS, the Economic Development Authority of the City of Chanhassen
(the "Authority") has jurisdiction over the Redevelopment Plan for the Downtown
Redevelopment Project Area (the "Project Area") and there were issued General Obligation Tax
Increment Refunding Bonds, Series 1990A (the "Prior Bonds") of the City of Chanhassen,
Minnesota (the "City") in order to provide money to refund in advance of maturing the City's
outstanding General Obligation Tax Increment Bonds of 1983 issued to finance certain program
and public redevelopment costs within the Project Area (the "Project"); and
B. WHEREAS, on June 25, 2001 the City Council adopted a resolution authorizing
the issuance and sale of $2,720,000 General Obligation Tax Increment Refunding Bonds, Series
200 iD, dated July 15,2001 (the "Bonds") of the City to refinance the Project and refund the
Prior Bonds in order to reduce the debt service costs to the City; and
C. WHEREAS, in order to refinance the Project, refund the Prior Bonds and provide
for payment of the Bonds, it is necessary and expedient that the Authority and the City execute
the Pledge Agreement as provided herein.
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NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the EDA
of the City of Chanhassen, Minnesota, as follows:
1. Execution of Agreement. The Pledge Agreement on file in the office of the
Acting City Manager is hereby approved in substantially the form submitted and the President
and Secretary of the Authority are authorized and directed to execute the same (and such other
agreements and documents as may be required in connection therewith) on behalf of the
Authority. The approval hereby given to the various documents referred to above includes
approval of such additional details therein as may be necessary and appropriate and such
modifications thereof, deletions therefrom and additions thereto as may be necessary and
appropriate and approved by the City Attorney and by the Authority officials authorized herein
to execute or accept, as the case may be, said documents prior to their execution; and said
Authority officials are hereby authorized to approve said changes on behalf of the Authority.
2. Filin~ of Pledge Agreement. The Secretary is directed to file a fully executed
copy of the Pledge Agreement with the affected County Auditor pursuant to Minnesota Statutes,
Section 469.178, subdivision 2.
The motion for the adoption of the foregoing resolution was duly seconded by member
and, after full discussion thereof and upon a vote being taken thereon, the
· following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting Secretary of the Economic
Development Authority of the City of Chanhassen, Minnesota, DO HEREBY CERTIFY that I
have carefully compared the attached and foregoing extract of minutes with the original minutes
of a meeting of the Board of Commissioners held on the date therein indicated, which are on file
and of record in my office, and the same is a full, true and complete transcript therefrom insofar
as the same relates to a resolution authorizing execution of a Pledge Agreement.
WITNESS my hand as such Secretary this day of July, 2001.
Secretary
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PLEDGE AGREEMENT
THIS AGREEMENT, entered into as of the 15th day of July, 2001, by and between the
City of Chanhassen, a Minnesota municipal corporation, herein called the "City", and the
Economic Development Authority of the City of Chanhassen, a public body corporate and politic
created and existing under the laws of Minnesota, herein called the "Authority", witnesseth that:
A. WHEREAS, the Authority has jurisdiction over the Redevelopment Plan (the
"Redevelopment Plan") for the Downtown Redevelopment Project Area heretofore established
by the Housing and Redevelopment Authority of the City qualified as a redevelopment project
and has approved a tax increment financing plan (the "Plan") with respect to said redevelopment
project (the "Project Area"), all pursuant to the provisions of Minnesota Statutes, Sections
469.001 through 469.047 and 469.090 through 469.108 (collectively the "Act"); and
B. WHEREAS, attached hereto as Exhibit A is a resolution called herein the
"Authorizing Resolution," adopted by the City Council on June 25, 2001 and which authorizes
the issuance of $2,720,000 General Obligation Tax Increment Refunding Bonds, Series 2001D
(the "Bonds") for the purpose of providing money to refund on August 1, 2001, all of the
outstanding General Obligation Tax Increment Refunding Bonds, Series 1990A, dated March 1,
1990 (the "Prior Bonds") which were issued for the purpose of providing money to refund in
advance of maturity the City's outstanding General Obligation Tax Increment Bonds of 1983
issued to finance certain program and public redevelopment costs within the Project Area as set
forth in the Redevelopment Plan payable from certain tax increments (the "Tax Increments")
derived from the Tax Increment Financing District as defined in the Redevelopment Plan and
Plan, pursuant to Minnesota Statutes, Sections 469.175 and 469.028 and this Pledge Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City and the Authority, each in
consideration of the mutual covenants and agreements herein contained, covenant and agree as
follows:
1. Coverage Test. The Authority hereby pledges to the payment of the Bonds (A)
Tax Increments in an amount which, together with other revenues and remitted by the Authority
to the City for the payment of the Bonds, or interest thereon, is sufficient to pay 105% of the
principal and interest (except capitalized interest) to become due each year on the Bonds, to the
extent that available Tax Increments are insufficient to pay when due the principal of and interest
(except capitalized interest) on the Bonds.
2. Remittance; Segregation, Reservation of Rights. All Tax Increments herein
pledged shall be remitted directly to the City and the City, acting as agent of the Authority, shall
segregate all Tax Increments so received in a special account on its official books and records.
The Authority reserves the right to alter the pledge of Tax Increments as set forth in paragraph of
the Authorizing Resolution.
3. Filing; Computation, Collection and Segregation. An executed copy of this
Agreement shall be filed with the affected County Auditor and shall constitute the request and
authorization of the Authority and the City to the County Auditor and Treasurer to compute,
collect and segregate said tax increments in accordance with the provisions of this Agreement
1303864vl
and Minnesota Statutes, Section 469.177 and to remit the same to the City acting as agent of the
Authority.
1303864vl 2
IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be
duly executed on their behalf and the seal to be hereunto affixed, and such signatures and seal to
be attested, as of the day and year first above written.
CITY OF CHANHASSEN, MINNESOTA
By
Mayor
Attest:
Acting City Manager
(SEAL)
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ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CHANHASSEN
By
President
Attest:
Secretary
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EXHIBIT A
AUTHORIZING RESOLUTION
[INSERT]
1303864vl A-1