2004-01
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EXTRACT OF MINUTES OF A MEETING OF THE
BOARD OF COMMISSIONERS OF THE
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF CHANHASSEN, MINNESOTA
HELD: JULY 12, 2004
Pursuant to due call and notice thereof, a regular or special 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 on July 12,2004, at
7:30 P.M.
The following members were present: Tom Furlong, Robert Ayotte, Steve Labatt, Brian
Lundquist, and Craig Peterson
and the following were absent: None
Member Ayotte introduced the following resolution and moved its adoption:
RESOLUTION 2004-1
AUTHORIZING EXECUTION OF A PLEDGE AGREEMENT
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A. WHEREAS, the Economic Development Authority of the City of Chanhassen
(the "Authority") has jurisdiction over the Redevelopment Plan for the Downtown Chanhassen
Redevelopment Project Area (the "Project Area"), established by the Housing and
Redevelopment Authority in and for the City of Chanhassen, Minnesota (the "HRA"), all
pursuant to the provisions of Minnesota Statutes, Sections 469.001 through 469.047 and 469.090
through 469.1081; and
B. WHEREAS, Tax Increment District No.4 has been established by the City of
Chanhassen, Minnesota (the "City"), as a redevelopment district within the Project Area (the
"Tax Increment District") under the provisions of Minnesota Statutes, Sections 469.174 through
469.179 and the City has approved a tax increment financing plan and amendments (the "Plan")
with respect to the Tax Increment District and the Authority has accepted jurisdiction over the
Tax Increment District; and
C. WHEREAS, a Contract for Private Redevelopment by and between the HRA and
Bloomberg Companies Incorporated was entered into and a $360,000 Limited Revenue Tax
Increment Note, dated December 31, 1998, was issued by the HRA (the "Frontier Note"); and
D. WHEREAS, a Contract for Private Redevelopment by and between the HRA and
Chanhassen Properties, LLC, was entered into and a $540,000 Limited Revenue Tax Increment
Note, dated August 8, 1997, was issued by the HRA (the "Chanhassen Properties Note"); and
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E. WHEREAS, the Frontier Note and the Chanhassen Properties Note are herein
collectively referred to as the "Prior Notes"; and
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F. WHEREAS, on July 12, 2004, the City Council adopted a resolution authorizing
the issuance and sale of $1,170,000 Taxable General Obligation Tax Increment Refunding
bonds, Series 2004C, dated August 10,2004 (the "Bonds"), of the City to prepay all of the
outstanding principal and accrued and unpaid interest on the Prior Notes in order to reduce debt
service costs to the City; and
G. WHEREAS, in order to prepay the Prior Notes 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; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Economic Development Authority of the City of Chanhassen, Minnesota, as follows:
1. Execution of Agreement. The Pledge Agreement on file in the office of the 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.
e 2. Filing 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.
3. Amendment to the Tax Increment Plan. Section S on page 5 of the Tax Increment
Plan for Tax Increment District No.4 is hereby amended to read:
"The Authority and the City intend to issue General Obligation Tax Increment Bonds in
an amount not to exceed $1,500,000 to refinance the original limited revenue notes
associated with the Entertainment Center Redevelopment and authorized by the Plan for
TIP District No.4"
The motion for the adoption of the foregoing resolution was duly seconded by member
Lundquist and, after full discussion thereof and upon a vote being taken thereon, the following
voted in favor thereof: Tom Furlong, Robert Ayotte, Steve Labatt, Brian Lundquist, and Craig
Peterson
and the following voted against the same: None
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 on July 12, 2004.
BJ/~~
Secretary
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TAX INCREMENT PLEDGE AGREEMENT
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THIS AGREEMENT, entered into as of July 12,2004, by and between the City of
Chanhassen, Minnesota, a municipal corporation, ( 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, (the "Authority"), created and existing under the provisions of
Minnesota Statutes, Sections 469.090 through 469.1081 (the "Act"), WITNESSETH that:
A. WHEREAS, the Authority has heretofore accepted jurisdiction over the
Redevelopment Plan (the "Redevelopment Plan") for the Downtown Chanhassen Redevelopment
Project Area heretofore established by the Housing and Redevelopment Authority in and for the
City of Chanhassen and transfer of all tax increments derived from Tax Increment Financing
District No.4 (the "Tax Increment District"), and has approved a tax increment financing plan
therefore, as amended, all pursuant to the provisions of the Act; and
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B. WHEREAS, attached hereto as Exhibit A is a resolution entitled "Resolution
Providing for the Issuance and Sale of $1,170,000 Taxable General Obligation Tax Increment
Refunding Bonds, Series 2004C; Pledging Tax Increments for the Security Thereof and
Authorizing the Execution of a Pledge Agreement (the "Authorizing Resolution") adopted by the
City Council on July 12, 2004, which authorizes the issuance of $1,170,000 Taxable General
Obligation Tax Increment Refunding Bonds, Series 2004C, dated August 10,2004 (the "Bonds")
of the City, to provide funds to refund on August 10, 2004, the outstanding $360,000 Limited
Revenue Tax Increment Note, dated December 31, 1998, and the $540,000 Limited Revenue Tax
Increment Note, dated August 8, 1997 (defined as the "Prior Notes" in the Authorizing
Resolution). Tax Increments derived from the Tax Increment District No.4 (the "Tax
Increments"), are pledged to the payment of the Bonds pursuant to Minnesota Statutes, Sections
469.174 and 469.028, and this Tax Increment 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 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
18 of the Authorizing Resolution.
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3. Filing; Computation, Collection and Segregation. An executed copy of this
Agreement shall be filed with the affected County Auditor and Directory of Property Tax and
Public Records and shall constitute the request and authorization of the Authority and the City to
the County Auditor, Director of Property Tax and Public Records and Treasurer to compute,
collect and segregate said tax increments in accordance with the provisions of this Agreement
and Minnesota Statutes, Section 469.177 and to remit the same to the City acting as agent of the
Authority.
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
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(SEAL)
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CHANHASSEN
B;LA
President
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