1977-3235
RESOLUTION NO. 32
A RESOLUTION
DETERMINING NEED FOR FINANCING:
REQUESTING THE CITY COUNCIL TO
AUTHORIZE THE ISSUADICE OF GENERAL
OBLIGATION REDEVELOPMENT BONDS TO
• FINANCE PROJECTS IN THE LYNDALE-HUB-
NICOLLET REDEVELOPMENT AREA
WHEREAS, pursuant to the requirements of rlinnesota
Statutes, Sections 462.411 to 462.716, the Municipal Housing and
Redevelopment Act (the "Act") this Authority has applied to the
City Council of the City of Richfield (the "City") for approval of
a redevelopment project described as the Lyndale-Hub-iJicoilet
Redevelopment Area Project (the "Project Area"), and
WHEREAS, the City Council has held a public hearing after
public notice and has approved the Project Area by resolution duly
adopted on November 24, 1975, pursuant to Section 462.521 of the
Act, including approval of the financing of part or all of
the Project tires costs by the issuance of bonds of the City payable
in whole or in part by tax increments derived from the Project Area
(the "Tax Increments"), and
WHEREAS, this Authority has, pursuant to Section 462.585,
Subdivision 2, of the Act, duly requested the County Auditor of
Hennepin County. to certify the original taxable value of the Project
Area and to return the resulting Tax Increments to the Authority to
finance the redevelopment of the Project Area, and
• WHEREAS, it is the intent of the Authority to utilize
the authority granted by Sections 462.545 and 462.585 of the Act
by requesting the City to issue its General Obligation Redevelopment
Bonds in one or more series (the "Bonds") to finance various
developments within the Project Area, and to pledge the Tax
Increments from the Project Area, together with revenues from the
Project Area, for the retirement of the Bonds, and
WHEREAS, this Authority has approved the development plan
and site plan, has authorized the execution of a develop:r,.:nt agree-
ment (the "Agreement") and the acquisition of Land for the
Promotional Department Store Parcels within the Project Area, and
taken all other actions required by the Act for the undertaking of
the sale of said Parcels for the construction of a department store
by Financial Properties Developers, Inc. (the "Developer") for
operation as a K-Mart department store (collectively, the "Project")
and'
WHEREAS, it is hereby found and determined that funds are
needed at this time to finance the cost of acquisition, site •
improvements, demolition and related costs (the "Redevelopment Costs")
36
.for the Project and other Redevelopment Costs in: the Project Area
which are presently estimated to be as follows:
K-Mart Project Costs
Acquisition $ .1,746,765
Relocation 321,000
Dez~olition 134, 500
Appraisals 12,000
Legal Services 25,000
Engineering Services (City) 20 ,75
Accts. Services (City) 10,000. ~ •..~
Consulting Fees ~ 15,000
Misc. Expenses 5,000
Administration ],6.0,Q0Q
Contingency (.10°s) 244,944
Other Project Area Costs
Anticipated taxes 323,000
Repay to City - BRW
contract 70,000
Wood Lake School Special
Assessments 113,000
Right--of-6Vay Acquisition 1, 009, 200
Additional Related
Acquisition ~ 130,000
$ 4,478,584
Capitalized Interest 1,991,434
TOTAL 6,270,018
and
WhEREAS, the City is authorized by Section 462.585,
Subdivision 4, of the Act, to issue General Obligation Redevelopment
°Bonds if this Authority pledges tax increments received from the
Project Area for the payment of the principal of and interest on
bonds issued in aid of the ProjE~~t pursuant to Sections 462.551 or
462.581 of the Act, and •
W1iEILAS, the pledge of tax increments must be made by
written agreement executed by the Authority and-the City and filed
with the County Auditor, and when such an agreement is made and
filed, the City may issue general obligation bonds as provided in
Minnesota Statutes, Chapter 475 subject only to the conditions
required for bonds financing improvement costs reimbursable from
special assessments;
;q~::
Resolution No. 32
. -2-
NOW, THEREFORE, BE IT RESOLVED BY THE HRA OF THE
CITY OF RICHFIELD, MINNESOTA, AS FOLL06dS:
1. This Authority hereby, and by the Tax Increment
Agreement attached hereto as Exhibit A, pledges and
appropriates all of the Tax increments from the Project.
Area and all revenues received from lands in the Project
Area while okmed by this Authority-for the payment of
the principal of and interest on Bonds when and if issued
by the City in aid of developments in the Project Area.
2.. The form of the Tax Increment Agreement attached hereto
is approved and the Chairman and Executive Director are
authorized and directed to execute the Tax Increment
Agreement and to forward it to the City Council with
this Resolution.
3. The Authority hereby requests .the City Council of the
City to authorize the issuance and sale of its General
Obligation. Redevelopment Bonds of 1977 Series A) in
the aggregate principal amount of not to exceed $6,340,OOQ
to finance the Redevelopment Costs of the Project and
other Project Area costs.
4. The Authority further. respectfully informs the City
Council that it intends, and for the reasons set forth
in this Resolution, to request additional series of
Bonds in the future to finance-the Redevelopment Costs
of other developments within the Project Area, all in
conformance with the Redevelopment Plan for the Project
Area. The Authority, therefore, requests that each
series of Hondas issued in aid of the Project Area, and
pursuant to the Tax Increment Agreement, be on a parity
• with each other series of Sonds so issued and be equally
and ratably secured by the pledge. of the Tax Increment
Agreement-and this Resolution.
Passed by the Housing and Redevelopment Auth ity of the City of Richfield
this 9th day of May, 1977.
°~~ Loren L. Law Chairman
9
Ivan Lu man Secretary
•
37
_ -.
' Attachment to HRA Resolution No. 32
' TAX INCREMEATT AGREEMENT
EXHIBIT "A"
THIS AGREEMENT, made and entered into this 9th day
of ~Y •, 1977, by and between the City of Richfield,
Minnesota, a municipal 'corporation organized and existing under and
by virtue of the Laws of the State of Minnesota (the "City") and
the Housing and Redevelopment Authority of Richfield, Minnesota,
a governmental agency formed and existing under the Laws of the
United States of America and the State of Minnesota, (the "Authority")..
WITNESSETH:
WHEREAS, the Authority has approved a certain redevelopment
project described in the attached exhibit entitled "the Lyndale-
Hub-Nicollet Project Area (the "Project") and has, 'by appropriate
action, applied to~the City Council for approval of-the Project
and
WHEREAS, the City has by resolution approved the Project
and
WHEREAS, Minnesota Statutes, Section 462.585 authorizes
tax increment agreements between a Housing and P.edevelopment Authority
and the Municipality within which such redevelopment projects are
situated:
NOW, THEREFORE, in consideration of the mutual covenants
and agreements hereinafter contained, it is hereby agreed,: by and
between the parties hereto as follows:
1. The Authority hereby expressly pledges 'that any and~all
tax increment payments made to the Authority by the Hennepin County
Auditor from the Project described in the attached Exhibit, and all
revenues from land within the Project Area while owned by the
Authority, shall be pledged and assigned to the City, for the
purpose of paying principal of, interest on and redemption premium,
if any, of any and all bonds of the City which may hereafter be
issued by the City for the financing of the Project described in
said Exhibit.
2. The City expressly .agrees that it will from time to time
and at the request of the Authority issue its General Obligation
Redevelopment Bonds in separate series of Bonds to finance the
public redevelopment costs of the Project.
3. The City hereby acknowledges the request of the Authority
by its Resolution of P4ay 9, 1977, to authorize and issue General
Obligation Redevelopment Bonds, Series 1977, in the aggregate
principal amount of not to exceed $6,300,000, and agrees that it
will authorize and issue such Bonds.
4. All series of Bonds issued pursuant to this Agreement
shall be on _a parity one with the other, and the tax increments
and other revenues pledged hereby shall be used solely for the
purpose of payment. of principal and interest on all series of Bonds.
5. The parties hereto do hereby mutually agree that it is
the express intent purpose of this agreement to utilize the
provisions of Minnesota Statutes, Section 462.585,. commonly referred
,; .. -•
to as the authorisation.for tax increment financing, for the
Project described in the attached Exhibit, and that~all tax increments
received with respect to the Project shall be segregated by the
Authority in a special .account on its official books until the
public redevelopment cost of the project, including interest on
all money borrowed therefor, has been fully paid and the City has
been fully reimbursed from the tax increments or .revenues of lands
within the Project Area for any principal and interest on general
obligation bonds which the City has issued for the Project or has
paid from taxes levied on other property within the City's corporate
limits.
IN WITNESS WHEREOF, the parties hereto have caused this
I
~~
agreement to be executed the day and year first above written.
C
Attest.:
. .e ~~.
City erk
(SEAL)
E
HOUSSNG AND REDEVELOPMENT AUTHORITY
OF RxCHFSELI~, MINNESOTA
~i~
Attest:
Secreta y ~!~
By ~ J .
Execute Direc or
(SEAL )
By .S'.
Ca.ty Klan er