1981-18562
RESOLUTIONJ P1O. 185
A RESOLUTION
DETERMINING THE NEED FOR FINANCING
REQUIRING THE CITY COUNCIL OF
THE CITY OF RICHFIELD TO AUTHORIZE.
THE ISSUAPdCE OF GENERAL OBLIGATIOTJ
DEVELOPT~lETJT BOTJDS TO FIiJANCE
PUBLIC REDEVELOPP~IEi1T COSTS IN THE
LYNDALE-HUB-NICOLLET REDEVELOPMENT AREA
BE ,IT .RESOLVED by the Housing and Redevelopment
Authority of the City of Richfield, Minnesota, as follows:
Section 1. Findings
J
1.01. This Authority has pursuant to Ainnesota
Statutes, Section 462.411 to 462.716 (the "Housing Act")
duly adopted a Redevelopment Plan (the "Plan") for a
redevelopment project described as the Lyndale-Hub-Idicollet
Redevelopment Project (the "Project Area") and commonly
referred to as the LHi1 Project. The Plan and the Project
Area have been duly approved by the City Council of the City
of Richfield (the "City") in accordance with the Housing
Act.
I.02. This Authority and the City have entered into a
Tax Increment Agreement (the "Agreement") dated May 9, 1977
in accordance with the Housing Act~and Minnesota Statutes,
Section 273.71 to 273.78, the Tax Increment Financing Act
(the Housing Act and the Tax Increment Financing Act collec-
tively referred to as the "Act") for the purpose of
authorizing ,the issuance of general obligations of the City,
payable from tax increments in the Project Area, to finance
Public Redevelopment Costs within the Project Area. The
Agreement authorizes the issuance by the City of its general
obligations for such costs at the request of this Authority.
1.03. The Plan has been duly modified and amended in
accordance with the Act to provide for the acquisition and
improvement of certain lands in the Project Area for the
purpose of facilitating the construction of a multi-family
housing development and related improvements (collectively
"the Project") and to provide for the financing of other
related Public Redevelopment costs of the Project Area.
This Authority has authorized the execution of development
agreements in connection with the acquisition and
disposition of land for the Project.
1.04. This Authority has incurred Public Redevelopment ~.
Costs for the Project and other costs for the Project Area,
and it is found and determined that it is necessary for the
_- sound financial management of the LHN Project Area that
general obligations of the City be issued to finance all or ~-
a portion of.such costs.
- - _r ,
Financing Costs
=• Legal and Fiscal
Capitalized Interest
Bond Discount
Total bond issue required
-_- Section 3. Issuance of Bonds
Section 2. Public Redevelopment Costs ~ ~~
2.01. The Executive Director has submitted..to the
Authority a list of Public Redevelopment Costs of the ..
Project Area which are presently estimated to be as follows:
,. Multi-family Site Costs
Acquisition $ 816,972
Site Improvements 28,325
Relocation 107,510
Demolition 4,200
Project 705 Special Assessments 78,626
Disposition Expense 15 000
Administrative Expense 44,938
Contingencies (5%) 58,444
Property Management Expense 60,816
.Legal Costs 12,000
Other Project Area Costs
Administrative Costs $ 177,700
Multi-family and Commercial
Rehab 100,376
Advances from Capital Improve-
ment Fund 96,551
Lyndale Garden Csnter
Development Costs (1980-81) 273,958
25,000
500,000
48,000
$2,450,000
3.01. This Authority hereby requests the City to issue
and sell its general obligations in an aggregate principal '
amount not to exceed $2,450,000 to finance all or a portion _•
of the Public Redevelopment Costs identified in Section 2.
f
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Resolution No. 185
3.02. The agreement is hereby ratified and confirmed
in all respects.
3.03. This Authority renews and reaffirms its
statement in HRA Resolution iJo. 32 of i~1ay 9, 1977 concerning
its intent to request additional series of bonds in the
future to finance the Public Redevelopment Costs in the
Project.Area and restates its request that all such series
of bonds be on a parity with each other such series- of bonds
so issued, and be equally and ratably secured by the pledge
of the Agreement.
3.04. The Executive Director is authorized and
directed to transmit a certified copy of the resolution to
the City forthwith.
Passed by the Housing and Redevelopment Authority of
the City of Richfield, Minnesota this 16th day of November,
1981.
ATTEST:
Michael Freeman Secretary
-3-
.~"
Thomas E. Harms Chairman
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' FREF'ARE~ENSEN-DDUGE, INC.
11/16/81
CITY OF RICHFIELII
STAFT DATE: 12/01/81
TAX PERIOD ESTIhiATEtt ,
COLLECT ENDING --_..________ FROF'OSED BON[i ISSUE _______________ PROJECT COVERAGE
YEAR 02/01 PRINCIPAL COUPON INTEREST TOTAL F'8I INCREMENT FACTOR
1982 1983 328x708.33 328x708.33 (1)
1983 1984 20,000 11.500 261x750.00 301,750.40 48x731.40 (1)
1984 1985 25x400 11.500 279,450.00 304x450.00 308,957.04 1.-015
1985 198b 34x000 11.500 27b,575.00 30b,575.00 315x004.00 1.027
1986 1.987 45x000 11.500 273,125.00 318x125.40 321x000.04 1.009
1987 1988 55,400 11.500 2b7x950.04 322,950.00 327,044.00 1.013
Y988 1989 70,000 11..500 2bir625.00 331rb25.00 334,000.00 1.407
1989 1990 80x000 11.500 203x575.00 ..333x575.40 341,040.00 1.022
1990 1991 90x000 11.`40 244,375.00 334,375.00 347,000.00. 1-038
1991 ~ 1992 145x000 11.500 234x025.00 339x025.00 354x000.00 1.044
1992 1993 120x000 11.500 221x950.00 341,954.00 3b1,000.04 1-05b
1993 1994 140x000 11.540• 208,154.00 348,150.00 369x000.00 1.Ob0
1994 1995 170x400 11.500 192x050.00 3b2x050.40 376x400.00 1.039
1995 1996 185x400 11-500 172x500.00 357x500.00 384,000.00 1,074
1996 1997 210,000 11.500 151,225.00 3b1,225.00 391,000.40 1.082
1497 1996 235,000 11.540 127x475.00 3b2x075.04 399,000.00 1.102
1998 iS99 "74,000 11.500 100x4;0.00 370x050.40 407x000.00 1.100
1999 ?000 304,000 11.504 69x000.00 369,000.00 415,000..00 1.125
2000 2401 300,000 11-504 34x504.40 334,500.00 424,400.00 1-2b8
TOTAL 2:450,004
N E I R I1.5000Y..
BOND YEARS 34,598.3
INTEREST DUE 8/1 AND 2/1
PRINCIPAL DUE 2/1
3x977xb58.33 bx427,b58.33 bi222,b88x00
PR03ECT COSTS $1,876,000
ISSUANCE COSTS 26,000
AVG.. MATURITY 14.1 YRS. DEALER DISCOUNT 48,000
CAPITALIZED INTEREST 500,000
BOND ISSUE SIZE $2,450,000
ASSUMES 2% ANNUAL INFLATION IN TAX INCREMENT
CAPITALIZED INTEREST:
FROM BOND PROCEEDS $500,000
REINVESTMENT EARNINGS 82,000
(1) GROSS CAPITALIZED INTEREST $582,000