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Home My WebLink AboutHRA Resolution No. 2000-07 Grandview Square LLC Private Redeveloipment Contrc w9�NA, HRA RESOLUTION NO. 2000-07 o e cn •NroRPOFwT� 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. City Hall -1- (952) 927-8861 4801 WEST 50TH STREET FAX(952)826-0390 EDINA,MINNESOTA 55424-1394 TDD(952)826-0379 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. -2- 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 -3-