HomeMy WebLinkAboutHRA Resolution No. 2000-07 Grandview Square LLC Private Redeveloipment Contrc w9�NA, HRA RESOLUTION NO. 2000-07
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RESOLUTION RELATING TO GRANDVIEW AREA Cit of Edina
REDEVELOPMENT PROJECT; APPROVING EXECUTION OF y
CONTRACT FOR PRIVATE REDEVELOPMENT WITH
GRANDVIEW SQUARE, L.L.C.AND ISSUANCE OF LIMITED
REVENUE TAX INCREMENT NOTES
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Edina Housing
and Redevelopment Authority (the "HRA"), as follows:
Section 1. Recitals.
1.01. Grandview Area Redevelopment Project and Tax Increment Financing Plan. The
HRA has approved a redevelopment plan, as defined in Minnesota Statutes, Section 469.002, subdivision
16, designated as Grandview Area Redevelopment Plan (the "Redevelopment Plan"), and a
redevelopment project to be undertaken pursuant thereto, as defined in Minnesota Statutes, Section
469.002, subdivision 14, designated as the Grandview Area Redevelopment Project (the "Redevelopment
Project"), and that in order to finance the public redevelopment costs to be incurred by the HRA in
connection with the Redevelopment Plan and the Redevelopment Project, the HRA has approved tax
increment financing plan, pursuant to the provisions of Minnesota Statutes, Section 469.175, designated
• as the Grandview Area Tax Increment Financing Plan (the "Financing Plan"), which establishes a tax
increment financing district, as defined in Minnesota Statutes, Section 469.174, subdivision 9, which is
designated by Hennepin County as Tax Increment Financing District No. 1202 (the "District").
1.02. Expenditure of Tax Increment Revenue. The Redevelopment Project constitutes a
"project" and the Tax Increment District constitutes a "tax increment financing district" within the
meaning of Minnesota Statutes, Sections 469.174 to 469.179, and thus the HRA has authority under said
Sections 469.174 to 469.179 to expend ad valorem tax increments derived from the District to pay costs
incurred or to be incurred by the HRA in aid of the Redevelopment Project, or to pay the principal of and
interest on bonds, notes or other obligations of the HRA issued to finance such costs, in accordance with
the Financing Plan.
1.03. Redevelopment Contract and Notes. It has been proposed that the HRA enter
into a Contract for Private Redevelopment (the "Redevelopment Contract"), with Grandview Square,
L.L.C. (the "Redeveloper"), the form of which has been presented to this Board and is ordered placed on
file in the office of the Executive Director of the HRA. Under the Redevelopment Contract, the
Redeveloper agrees to undertake a project (the "Project") on property included in the area subject to the
Redevelopment Plan and in the Tax Increment District. Under the Redevelopment Contract the HRA
agrees to transfer certain property of the HRA to the Redeveloper and construct certain improvements of
a public nature, subject to the terms and conditions of the Redevelopment Contract. The
Redevelopment Contract provides that to reimburse the Redeveloper for a portion of the costs of the
Project the HRA will issue the Limited Revenue Tax Increment Notes of the HRA in substantially the
forms attached to the Redevelopment Contract (the "Notes"). The Notes will be payable solely out of
• Opus Available Tax Increment and Clark Available Tax Increment, as defined in the Redevelopment
Contract as provided in the Notes.
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Section 2. Authorization and Approvals.
. 2.01. Approval of Redevelopment Contract and Notes. The form and terms of the
Redevelopment Contract and the Notes are hereby approved, and the execution and delivery by the
HRA of the Redevelopment Contract and execution, delivery and issuance of the Notes and other
agreements by the HRA as provided in the Redevelopment Contract are hereby authorized. The terms of
the Notes shall be as set forth in the Notes. The Chair and Secretary of the HRA are hereby authorized
and directed on behalf of the HRA to execute and deliver the Redevelopment Contract and the Notes
and the other agreements provided for in the Redevelopment Contract to be executed and delivered by
the HRA (the "Other Agreements") in substantially the form presented hereto with such changes and
modifications as may be approved by the officers executing the Redevelopment Contract and the Notes.
The execution and delivery of the Redevelopment Contract, the Notes and the Other Agreements by the
Chair and Secretary of the HRA shall be conclusive evidence of the approval of any changes and
modifications to the Redevelopment Contract, the Notes and the Other Agreements by such officers.
2.02. Pledge of Tax Increment. The portion of the tax increment from the District
which constitutes "Opus Available Tax Increment," as defined in the Redevelopment Contract (the
"Opus Available Tax Increment"), is hereby pledged to pay the principal of and interest on the Opus
Notes, as defined in the Redevelopment Contract (the "Opus Notes") as provided in the Opus Notes
subject to the prior pledge of Opus Available Tax Increment to pay the Senior Obligations, as defined in
the Redevelopment Contract (the "Senior Obligations"). The "Clark Available Tax Increment," as
defined in the Redevelopment Contract (the "Clark Available Tax Increment"), is hereby pledged to pay
the principal of and interest on the Clark Note, as defined in the Redevelopment Contract (the "Clark
Note") as provided in the Clark Note subject to the prior pledge of Clark Available Tax Increment to pay
• the Senior Obligations. The HRA covenants that it shall not make any further pledge of the Opus
Available Tax Increment or Clark Available Tax Increment which is prior to or on a parity with the
pledge of the Opus Available Tax Increment or Clark Available Tax Increment to pay the Clark Note.
2.03. No Representations or Warranties. The HRA does not in any manner represent or
warrant that the Opus Available Tax Increment will be sufficient to pay the principal of and interest on
the Opus Notes when due or that the Clark Available Tax Increment will be sufficient to pay the
principal and interest on the Clark Note when due.
2.04. Opus Notes Sinking Fund. The Opus Notes shall be payable from a separate Opus
Notes Sinking Fund (the "Opus Notes Sinking Fund") which shall be created and maintained on the
books of the HRA as a separate debt redemption fund until the Opus Notes, and all interest thereon, are
fully paid. There shall be credited by the HRA to the Opus Notes Sinking Fund the Opus Available Tax
Increment. Opus Available Tax Increment credited to the Opus Notes Sinking Fund shall be applied
solely to pay principal and interest on the Opus Notes, subject to the prior pledge of the Opus Available
Tax Increment to pay the principal and interest on the Senior Obligations.
2.05. Clark Note Sinking Fund. The Clark Note shall be payable from a separate Clark
Note Sinking Fund (the "Clark Note Sinking Fund") which shall be created and maintained on the books
of the HRA as a separate debt redemption fund until the Clark Note, and all interest thereon, are fully
paid. There shall be credited by the HRA to the Clark Note Sinking Fund the Clark Available Tax
Increment. Clark Available Tax Increment credited to the Clark Note Sinking Fund shall be applied
solely to pay principal and interest on the Clark Note, subject to the prior pledge of the Clark Available
• Tax Increment to pay the principal and interest on the Senior Obligations.
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2.06. Certification to County Auditor. Certain parcels in the District are subject to the
provisions of Minnesota Statutes, Section 469.176, subdivision 6, because not qualifying activity has
• occurred with respect to such parcels. Upon the occurrence of a qualifying activity described in
Minnesota Statutes, Section 469.176, subdivision 6, with respect to any such parcels, the District by the
HRA shall certify to the Hennepin County Auditor that the qualifying activity has commenced and
request the County Auditor to certify the net tax capacity of such parcel and add it to the original tax
capacity of the District as provided in Minnesota Statutes, Section 469.176, subdivision 6.
Section 3. Certification of Proceedines.
3.01. Certification of Proceedines. The officers of the HRA and the County Auditor of
Hennepin County are hereby authorized and directed to prepare and furnish to the purchaser of the
Notes, certified copies of all proceedings and records of the HRA, and such other affidavits, certificates
and information as may be required to show the facts relating to the legality and marketability of the
Notes as to the same appear from the books and records under their custody and control or as otherwise
known to them, and all such certified copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the HRA as to the facts recited therein.
Passed by the H is th dayo u t, 000. _ An
ATTEST:
CF�ecutive Dire t(; Chair
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )SS
• CITY OF EDINA )
CERTIFICATE
I, the undersigned duly appointed and acting Executive Director for the City of Edina do hereby
certify that the attached and foregoing Resolution was duly adopted by the Edina Housing and
Redevelopment Authority at its Regular Meeting of August 15, 2000, and as recorded in the
Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this day of , 204
ITecutive Director
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