RES 00-05 • ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 00-5
RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT RESPECTING
PAYMENT OF $510,000 TAXABLE GENERAL OBLIGATION
TAX INCREMENT REFUNDING BONDS, SERIES 2000D,
OF THE CITY OF ELK RIVER,MINNESOTA
WHEREAS,the City of Elk River, Minnesota(the "City"), has awarded or is expected to
award the sale of its$510,000 Taxable General Obligation Tax Increment Refunding Bonds, Series
2000D, dated November 1, 2000 (the "Bonds"), to refinance certain expenditures and public
development and redevelopment costs undertaken within certain tax increment financing districts
approved by the Elk River Economic Development Authority (the "EDA").
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the EDA
as follows:
1. The Tax Increment Pledge Agreement attached hereto and made a part hereof is
hereby approved, and the officers of the EDA are hereby authorized and directed to
take such steps as may be necessary to execute said Agreement, in substantially the
form as attached, upon approval and execution thereof by the City, and to carry out
and fulfill the provisions and requirements thereof.
2. The EDA hereby makes formal request to the City Council to issue the Bonds to
assist in refinancing the above-mentioned tax increment costs.
Adopted by the Board of Commissioners of the Elk River EDA on 11/13/00
2000.
The motion for the adoption of the foregoing Resolution was duly seconded by
Boardmember FARBER and upon vote being taken thereon,the following voted in favor
thereof: PAT DWYER, JEFF GONGOLL, DARYL THOMPSON, PAUL MOTIN,
STEPHANIE KLINZING, AND LARRY KOENIG
and the following voted against the same:
NONE
whereupon said Resolution was declared duly passed and adopted.
•
1218143.1 24
• TAX INCREMENT PLEDGE AGREEMENT
This Tax Increment Pledge Agreement(the"Agreement")is dated as of November 1,2000;
is by and between the City of Elk River, Minnesota (the "City"), and the Elk River Economic
Development Authority (the "EDA"); and provides as follows:
WHEREAS, the City Council has adopted or is expected to adopt a certain resolution(the
"Bond Resolution") awarding the sale of the City's $510,000 Taxable General Obligation Tax
Increment Refunding Bonds, Series 2000D, dated November 1, 2000 (the "Bonds"), to provide
refinancing for certain public redevelopment costs respecting Tax Increment Financing District Nos.
6 and 7, respectively; and
WHEREAS, to provide funds sufficient for the timely payment of the debt service on the
Bonds, it is necessary for the EDA and the City to enter into this Agreement; and
WHEREAS,each capitalized term which is used but not otherwise defined in this Agreement
shall have the meaning given to that term in the Bond Resolution:
NOW,THEREFORE,in consideration of the covenants and agreements hereof between the
City and the EDA,and pursuant to Minnesota Statutes, Section 469.178, Subdivision 2,the City and
• the EDA hereby agree as follows:
1. In order to pay the principal of and interest on the Bonds, when due, the EDA hereby
pledges to the City,for deposit in the Debt Service Account established by the Bond Resolution for
the payment of the Bonds,and the EDA shall pay to the City,Available Tax Increments(hereinafter
defined);provided that the amounts thereof payable hereunder shall not in any year exceed amounts
necessary, together with other funds available for such purposes in said Debt Service Account, to
pay the principal of and interest on the Bonds,when due. As used in this Agreement, "Available Tax
Increments" means tax increments that are derived from Tax Increment Financing District Nos. 6
and 7 within Development District No. 1 which are available for such purposes pursuant to
applicable law; provided that the foregoing pledges and descriptions of Available Tax Increments
are further made subject and junior in lien to all unpaid pledges or other outstanding commitments
heretofore made for such tax increments. In discharging its obligations under this Agreement, the
EDA expressly reserves the rights(1)to pledge or otherwise dedicate the Available Tax Increments
to purposes other than the discharge of the obligations described above upon a finding by the EDA
that the estimated Available Tax Increments then remaining will be sufficient from year to year for
such purposes, and(2)to satisfy its obligations hereunder from year to year from such eligible tax
increment districts or other revenues, or combinations thereof, if any, as the EDA may deem in its
discretion to be appropriate,desirable or necessary,as may be permitted by law. It is understood and
agreed hereunder that the increments from Tax Increment Financing District No.6 are pledged only
to the payment of the 1989B Refunding Bonds and that the increments from Tax Increment
Financing District No. 7 are pledged only to the payment of the 1990A Refunding Bonds.
•
1218143.1
• 2. An executed copy of this Agreement shall be filed in the office of the Sherburne
County Auditor, as required by Minnesota Statutes, Section 469.178, Subdivision 2.
3. This Agreement shall become effective upon the actual issuance and delivery of the
Bonds.
IN WITNESS WHEREOF, the City and the EDA have caused this Agreement to be duly
approved and executed as of the day and year first above written.
CITY OF ELK RIVER, MINNESOTA
I /VII
Its May•
By ?Ifi.C2„Q____
ItsrCity Administrator
kc�►'r�
ELK RIVER ECONOMIC D VELOPMENT
AUTTY
• Byad463/\
Its President
) I
Its S•cretar • •
•
1218143.1 2
.r
SECRETARY'S CERTIFICATE
•
I,the undersigned,being the duly qualified and acting Secretary of the Elk River Economic
Development Authority,do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a special or regular meeting of the Board of Commissioners thereof,duly called
and regularly held on the date herein indicated, with the original thereof on file in my office and I
further certify the same is a full, true, and correct copy thereof, insofar as the same relates to the
approval of a certain Tax Increment Pledge Agreement respecting the Taxable General Obligation
Tax Increment Refunding Bonds, Series 2000D, of the City of Elk River, Minnesota.
WITNESS my hand as such Secretary of the EDA this )314> day of 11p„,Q,,yk‘,54.,,r ,
2000.
Aela.1,7[1111111/MEM A--AtAtei
S e• etary tto ' iver •
Ec• •mic ID eve opment Authority
S
1111/
1218143.1 3
TAX INCREMENT PLEDGE AGREEMENT
•
This Tax Increment Pledge Agreement(the"Agreement")is dated as of November 1,2000;
is by and between the City of Elk River, Minnesota (the "City"), and the Elk River Economic
Development Authority (the "EDA"); and provides as follows:
WHEREAS, the City Council has adopted or is expected to adopt a certain resolution(the
"Bond Resolution") awarding the sale of the City's $510,000 Taxable General Obligation Tax
Increment Refunding Bonds, Series 2000D, dated November 1, 2000 (the "Bonds"), to provide
refinancing for certain public redevelopment costs respecting Tax Increment Financing District Nos.
6 and 7, respectively; and
WHEREAS, to provide funds sufficient for the timely payment of the debt service on the
Bonds, it is necessary for the EDA and the City to enter into this Agreement; and
WHEREAS,each capitalized term which is used but not otherwise defined in this Agreement
shall have the meaning given to that term in the Bond Resolution:
NOW,THEREFORE,in consideration of the covenants and agreements hereof between the
City and the EDA,and pursuant to Minnesota Statutes,Section 469.178,Subdivision 2,the City and
the EDA hereby agree as follows:
• 1. In order to pay the principal of and interest on the Bonds, when due, the EDA hereby
pledges to the City,for deposit in the Debt Service Account established by the Bond Resolution for
the payment of the Bonds,and the EDA shall pay to the City,Available Tax Increments(hereinafter
defined);provided that the amounts thereof payable hereunder shall not in any year exceed amounts
necessary, together with other funds available for such purposes in said Debt Service Account, to
pay the principal of and interest on the Bonds,when due. As used in this Agreement,"Available Tax
Increments" means tax increments that are derived from Tax Increment Financing District Nos. 6
and 7 within Development District No. 1 which are available for such purposes pursuant to
applicable law; provided that the foregoing pledges and descriptions of Available Tax Increments
are further made subject and junior in lien to all unpaid pledges or other outstanding commitments
heretofore made for such tax increments. In discharging its obligations under this Agreement,the
EDA expressly reserves the rights(1)to pledge or otherwise dedicate the Available Tax Increments
to purposes other than the discharge of the obligations described above upon a finding by the EDA
that the estimated Available Tax Increments then remaining will be sufficient from year to year for
such purposes, and(2)to satisfy its obligations hereunder from year to year from such eligible tax
increment districts or other revenues, or combinations thereof, if any, as the EDA may deem in its
discretion to be appropriate,desirable or necessary,as may be permitted by law. It is understood and
agreed hereunder that the increments from Tax Increment Financing District No.6 are pledged only
to the payment of the 1989B Refunding Bonds and that the increments from Tax Increment
Financing District No. 7 are pledged only to the payment of the 1990A Refunding Bonds.
• 1218143.1
i
• 2. An executed copy of this Agreement shall be filed in the office of the Sherburne
County Auditor, as required by Minnesota Statutes, Section 469.178, Subdivision 2.
3. This Agreement shall become effective upon the actual issuance and delivery of the
Bonds.
IN WITNESS WHEREOF, the City and the EDA have caused this Agreement to be duly
approved and executed as of the day and year first above written.
CITY OF
ELK RIVER,MINNESOTA
ByJ�SG'Ult��l(�/•�P'
Its Mayor
By caL_.
ItsFity Administrator
A`r►A\
ELK RIVER ECONOMIC DE OPMENT
AUTH Ski Y
By
• Its President
1i409
y
Its S-creta
11
1218143.1 2