RES 99-1 Extract of Minutes of Meeting
• of the Board of Commissioners
of the Elk River Economic
Development Authority
Pursuant to due call and notice thereof a regular or special
meeting of the Board of Commissioners of the Elk River Economic
Development Authority was held at the Elk River City Hall on July
12, 1999, commencing at 6 : 00 P.M. , C.T.
The following Commissioners were present : Dwyer, Bender, Gongoll,
Klinzing, Thompson, Farber,and Motin
and the following were absent: None
*** *** ***
The following Resolution was presented by Commissioner
• Motin , who moved its adoption:
RESOLUTION NO. 99-1
RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION
OF A TAX INCREMENT PLEDGE AGREEMENT
RESPECTING PAYMENT OF A SPECIFIED PORTION
OF THE $5, 725, 000 GENERAL OBLIGATION
BONDS, SERIES 1999A
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 $5, 725, 000
General Obligation Bonds, Series 1999A, dated July 1, 1999 (the
"Bonds") , $630, 000 of the principal amount of which are to
finance certain expenditures and public development costs
undertaken within Development District No. 1 which is now under
the governance and control of the Elk River Economic Development
Authority (the "EDA") .
NOW, THEREFORE, IT IS HEREBY RESOLVED by the Board of
Commissioners of the EDA as follows:
• 1059219.1
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 Elk River
City Council to issue the Bonds to assist the EDA in financing
the subject public development costs.
Adopted by the Board of Commissioners of the Elk River EDA
this 12th day of July, 1999.
The motion for the adoption of the foregoing Resolution was
duly seconded by Commissioner Bender and upon vote
being taken thereon, the following voted in favor thereof:
Dwyer , Bender, Gongoll, Klinzing, Thompson, Farber, and Motin
and the following voted against the same: None
whereupon said Resolution was declared duly passed and adopted.
•
• 1059219.1
TAX INCREMENT PLEDGE AGREEMENT
•
This Tax Increment Pledge Agreement (the "Agreement") is
dated as of July 1, 1999; 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 resolution (the "Bond
Resolution") awarding the sale of the City' s $5, 725, 000 General
Obligation Bonds, Series 1999A, dated July 1, 1999 (the "Bonds") ,
$630, 000 of the principal amount of which (as defined in the Bond
Resolution, the "TIF Bonds") are to assist in financing certain
public development costs within Development District No. 1 (the
"Project") of the EDA; and
WHEREAS, to provide funds sufficient for the timely payment
of the debt service on the TIF 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 TIF
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 TIF 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 TIF Bonds, when due. As used in this
Agreement, "Available Tax Increments" means tax increments that
are derived by the EDA from Tax Increment Financing District No.
19 within the Project.
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
• 1059219.1
for such purposes, and (2) to satisfy its obligations hereunder
• from year to year from such eligible other revenues 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 with
the County Auditor of Sherburne County, Minnesota, 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 aRIVER,62},,,,
MINNESOTA,
Its kot= or
By 7)/b' -c4
(SEAL) Its City Administrator
ELK RIS' ECONOMIC DEVE OPMENT
AUTHO c. t
B Y 0117.0117. � � ,14. y`�
is Presi nt
lik
By .7ewte 1.= 9.c _
I s Se•'-tai
•
1059219.1
SECRETARY'S CERTIFICATE
I, the undersigned, being the duly qualified and acting
Secretary of the Elk River EDA, 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 therein
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 a portion of the
$5, 725, 000 General Obligation Bonds, Series 1999A, of the City of
Elk River, Minnesota.
WITNESS my hand as such Secretary of the EDA this /02 ' day
. of July, 1999 .
111-ecr= ,a ' , Elk R' =r EDA
•
411 1059219.1