1982-19067
HRA RESOLUTION N0. 190
A RESOLUTION
DETIItMINING THE NEED FOR FINANCING
REQUIRING THE CITY COUL~TCIL OF
THE CITY OF RICHFIELD TO AUTHORIZE
THE ISSUANCE OF GENERAL OBLIGATION
DEVELOPMENT BONDS TO FINANCE
PUBLIC REDEVELOPMENT 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
1.01. This Authority has pursuant to Minnesota 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-
Nicollet Redevelopment Project (the "Project Area") and commonly referred
to as the LHN Project. The Plan and the Project Area have been duly
approved by the City Council of the City of Richfield (the "City.") with
the Housing Act.
1.02. 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
multifamily housing development and related improvements (collectively
rethe 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.
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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:
Multifamilg_Site Costs
Acquisition $ 880,696 -
Site Improvements 28,325
Relocation 107,510
Demolition 4,200
Prof®ct 705 Special Assessments 78,626
Disposition Expense 15,000
Administration Expense 44,93$
Contingencies 91,271
Property Management Expense 60,816
Legal Costs 12,000
Multifamily and-Commercial Rehab,
General Administrative Costs 100,376
Lyndale Garden Center Costs
Acquisition $ 205,002
Relocation 18,063
Administration Expense 50,893
Richfield State Agenc9 Costs
Acquisition $ 552,500
Site Improvements 126,000
- Relocation 30,000
Administration Expense [Fti.9684-
Contingencies 25,000
Legal Coats 12,000
Godfather Block tWest End) Costs
Acquisition $ 597,000
Relocation 24,905
Demolition 23,273
Administrative Expense 90,072
Contingencies 77,880
Property Management Expense 44,000
Other Project Area Costs
Administrative Costs - LffiY Project $ 177,700 .
Financing Costs
Legal and Fiscal $ 25,000
Capitalized Interest 471,970
Bond Discount 80,300
Total Bond Issue Required 54,100,000
Section 3. Issuance of Bonds
3.01. This Authority hereby requests the City to issue and sell its
general obligations in an aggregate principal amount not to exceed $4,100,000
to finance all or a portion of the Public Redevelopment Costs identified in
Section 2.
3.02. The Agreement is hereby ratified and confirmed in all respects.
3.03. This Authority renews and reaffirms its statement in HRA
Resolution No. 32 of May 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 15th day of March, 1982.
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homes E. Harms Chairman
ATTEST:
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Michael Freeman Secretary
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