05-951r
125
HRA RESOLUTION NO. 951
RESOLUTION MODIFYING THE TERMS OF RESOLUTION NO. 821
REGARDING THE AUTHORITY'S $2,500,000 TAX INCREMENT
REVENUE NOTE, SERIES 2001A.
BE IT RESOLVED BY the Housing and Redevelopment Authority in and for the
City of Richfield (the "Authority") as follows:
Section 1. Backqround..
1.01. The Authority and City of Richfield ("City") have heretofore approved the
establishment of the Urban Village Tax Increment Financing District (the "TIF District")
within the Richfield Redevelopment Project ("Project"), and have adopted a tax increment
financing plan for the purpose of financing certain improvements within the Project.
Pursuant to Minnesota Statutes, Section 469.178, the Authority issued its $2,500,000 Tax
Increment Revenue Note, Series 2001A (the "Note") for the purpose of financing certain
public redevelopment costs of the Project, pursuant to Resolution No. 821 (the "Note
Resolution"). The Note was originally issued to Marquette Capital Bank, N.A. and is
currently owned by Marshall & IIsley Corporation (the "Owner").
1.02. Under the Note Resolution, the Note is secured in part by a Reserve
Fund, the balance of which is currently $221,299.44 (the "Reserve Fund Balance").
1.03. The Owner of the Note has requested that the Reserve Fund Balance be
paid to the Owner and applied to prepay, in part, the accrued interest and outstanding
principal balance of the Note.
1.04. To accommodate such release of the Reserve Fund Balance and partial
prepayment of the Note, the Authority has determined to modify the terms of the Note
Resolution as further described herein.
Section 2. Resolution Modified.
2.01. Section 4.01 of the Note Resolution is modified to add the following:
Notwithstanding anything to the contrary herein, from and after application of funds in
the Reserve Fund in accordance with Section 4.04 hereof (as modified by this
amending resolution), Available Tax Increment shall be applied to the following funds or
uses in the following order of priority:
First to the Debt Service Fund, with respect to Available Tax Increment received as
of any August 1 Payment Date, the amount, together with amounts then on deposit in the
Debt Service Fund, necessary to pay the principal and interest due on that August 1 and
the next following February 1; and with respect to the Available Tax Increment received as
of any February 1 Payment Date, the amount together with amounts then on deposit in the
Debt Service Fund, necessary to pay the principal and interest due on that February 1;
Second to the registrar for the Taxable Tax Increment Revenue Note, Series 2001 B
(the "Series 2001 B Note"), for deposit in the debt service fund established in the resolution
approving issuance of the Series 2001 B Note; and
Third to the Prepayment Fund.
2.02. Section 4.04. of the Note Resolution is modified to add the following:
Notwithstanding anything to the contrary herein, the outstanding balance in the Reserve
Fund shall be applied to prepay the Note, in part, upon Authority's receipt of a written
consent to such prepayment signed by Owner, in a form reasonably acceptable to the
Authority, such prepayment to be applied first to accrued interest and second to
outstanding principal installments set forth in Schedule A attached to the Note, in
inverse order of installments. After such prepayment the Reserve Fund is deemed
terminated.
2.03. The Note Resolution remains in full force and effect and is not modified
except as expressly provided in this resolution.
Adopted by the Board of the Housing and Redevelopment Authority in and for the
City of Richfield this 18th day of July, 2005.
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Thomas E. Harms, Chair
ATTEST:
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, Secretary