RES 00-04 r
NOV 2 0 2000
RESOLUTION NO. 00-4
• ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT
RESPECTING PAYMENT OF $800,000 GENERAL OBLIGATION
TAX INCREMENT BONDS, SERIES 2000A,
OF THE CITY OF ELK RIVER, MINNESOTA
WHEREAS, it is hereby requested that the City issue and loan to the Elk River EDA the
proceeds of the City's $800,000 General Obligation Tax Increment Bonds, Series 2000A (the
"Bonds"),to defray certain costs of public improvements(the"Improvements")to be incurred within
and for the benefit of the EDA's Tax Increment Financing District No. 19 pursuant to Minnesota
Statutes, Chapters 469 and 475.
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 the EDA in financing the above-mentioned costs associated with the EDA's
Tax Increment Financing District No. 19.
Adopted on 11/13/00 , 2000, by the Board of Commissioners of the Elk River
Economic Development Authority.
The motion for the adoption of the foregoing Resolution was duly seconded by Board
member 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.
110
1217682.1
• 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, at the request of the EDA,the City Council has adopted or is expected to adopt
a certain resolution (the "Bond Resolution") awarding the sale of the City's $800,000 General
Obligation Tax Increment Bonds, Series 2000A,dated November 1,2000(the"Bonds"),to provide
financing for certain public improvement costs within the EDA's Tax Increment Financing District
No. 19 (the "Project"); 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 by the EDA from its Tax Increment Financing
District No. 19 and which are available for such purposes pursuant to applicable law.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.
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.
11,
1217682.1
• Bonds.3.
This Agreement shall become effective upon the actual issuance and delivery of the
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
By I
goviii
Its Ma or
By
Its,,City Administrator
ELK RIVER ECONOMIC DEVE OPMENT
AUTHT1TY
By qcz&—hOy\i
Its President
is
Ilk A
•• ,, '_OLO.121P�iri.y.Atrsl�""�
s Secr-,,
•
1217682.1
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/Project Revenue Pledge Agreement respecting the$800,000
General Obligation Tax Increment Bonds, Series 2000A, of the City of Elk River, Minnesota.
WITNESS my hand as such Secretary of the EDA this �3 day of N,k�,,,� ,� , 2000.
1or
awaiI//moi.i.►a-.a—
`r -cret. a , El River
Economic Development Authority
•
•
1217682.1
I
• 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, at the request of the.EDA,the City Council has adopted or is expected to adopt
a certain resolution (the "Bond Resolution") awarding the sale of the City's $800,000 General
Obligation Tax Increment Bonds, Series 2000A,dated November 1,2000(the"Bonds"),to provide
financing for certain public improvement costs within the EDA's Tax Increment Financing District
No. 19 (the "Project"); 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 by the EDA from its Tax Increment Financing
District No. 19 and which are available for such purposes pursuant to applicable law.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.
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.
• 1217682.1
• 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
B ]k1!..L A ' ' ►.al��.Vr►
Its Ma or
By
Its,City Administrator
ELK RIVER ECONOMIC DEVELOPMENT
AUTHO Y
By CAj•-• —•\
Its President
I' A
By..
It- Secrt,ry
•
1217682.1