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HomeMy WebLinkAbout98-02RESOLUTION NO. 98 - 2 RESOLUTION APPROVING AMENDMENT TO TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3; AUTHORIZING THE CITY OF LAKEVILLE TO UNDERTAKE CERTAIN REDEVELOPMENT ACTIVITIES RELATED THERETO ON BEHALF OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF LAKEVILLE AND APPROVING THE EXECUTION OF CERTAIN DOCUMENTS BY THE CITY; AND APPROVING A RELATED TAX INCREMENT PLEDGE AGREEMENT WHEREAS, the City Council for the City of Lakeville has heretofore approved the tax increment financing plan (herein, the "TIF Plan") for Tax Increment Financing District No. 3 (herein, the "TIF District ") located within Redevelopment Project No. 1; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Lakeville (the "HRA ") has prepared an update to the TIF Plan entitled "Tax Increment Financing Plan Modification #3" (herein, "Modification #3 "), which updates certain activities to be undertaken within the TIF District and the budget for the TIF District; and WHEREAS, pursuant to Minnesota Statutes, Section 469.175, subdivision 4, Modification #3 may be approved and adopted by resolution of the Authority since Modification #3 does not change the boundaries of the TIF District or the Project Area, does not increase the permitted amount of bonded indebtedness, does not increase the aggregate amount of tax increment expenditures, does not increase the portion of tax increment to be retained by the Authority and does not designate additional property to be acquired by the Authority; and WHEREAS, the Authority, in cooperation with the City, intends to facilitate additional development within the Project to be undertaken by Aurora Investments LLC ( "Aurora ") by assisting Aurora with the costs of land acquisition, said assistance to be provided by the issuance of a tax increment revenue note by the City to Lakeville Five, Inc. ( "Lakeville Five "), the seller of the land, which note will be paid from tax increments to be received by the Authority from the TIF District. NOW, THEREFORE, BE IT RESOLVED that Administrative Modification #3 to the TIF Plan is hereby approved and adopted. BE IT FURTHER RESOLVED, pursuant to Minnesota Statutes, Section 469.041, the Authority hereby designates the City as its agent to act on its behalf in facilitating the development to be undertaken by Aurora and, in particular, (i) approves the terms of that certain Redevelopment Agreement to be executed by the City, Aurora and Lakeville Five (a substantially final draft of which has been furnished to the Authority) and approves and consents to the execution thereof by the City and (ii) approves the terms of the Tax Increment Revenue Note attached to said Redevelopment Agreement and approves and consents to the execution thereof by the City. BE IT FURTHER RESOLVED that the draft of the Tax Increment Pledge Agreement furnished to the Authority to be entered into between the Authority and the City in connection with the issuance of the Tax Increment Revenue Note is hereby approved and the Chairperson and Executive Director of the Authority are authorized to execute the same on behalf of the Authority. STATE OF MINNESOTA COUNTY OF DAKOTA The undersigned, being the duly appointed, qualified and acting Executive Director of the Housing and Redevelopment Authority of the City of Lakeville, Minnesota, hereby certifies that the foregoing is a full, true and correct copy of a resolution duly passed and adopted by the Board of Commissioners of said Authority at its meeting duly called and held on February 17, 1998, by the following roll call vote: Ayes: Zaun, Sindt, Mulvihill, Holberg, Ryan Nays: N/A Absent: N/A and that said resolution has not subsequently been amended and is now in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand officially this 17 day of February, 1998. Executive Director Tax Increment Financing Plan Tax Increment Financing District No. 3, Modification 43 The Tax Increment Financing Plan heretofore prepared and approved through January 21, 1997 (i.e. through Modification #2) is hereby further amended as follows: 1. Section C - "Development Program" is amended by adding the following clause 5: "5. See also the Redevelopment Agreement by and between the City of Lakeville, Minnesota, Aurora Investments, LLC and Lakeville Five, Inc., which is incorporated herein by reference, for a description of additional development activities to be undertaken in the Project by Aurora Investments, Inc. 2. The maximum budget set forth in Appendix F to the Plan (and the corresponding budget in the redevelopment plan for the Project) is amended to read as follows: Land Acquisition: $1,597,000 Capitalized Interest: $300,000 Public Improvements: $128,000 The total principal amount of the foregoing ($2,025,000) does not exceed the amount presently in the budget. In connection with the development to be undertaken by Aurora Investments, LLC, It is anticipated that the City will finance the land acquisition activities by the issuance of a tax increment revenue note in the principal amount of $1,897,000. It is further anticipated that interest will be payable on the unpaid balance of the note at the approximate rate of 8% per annum through the term of the note. As presently set forth in Exhibit E to the Plan, which calculates borrowing capacity based upon expected increment receipts from the District, the HRA and City have previously anticipated that tax increments will be used to pay interest on any borrowings as well as discharge the principal amount thereof. The City reasonably estimates that the aggregate amount of interest to be paid on the note, together with any other interest expenditures, will not exceed the aggregate amount of interest heretofore authorized and anticipated to be expended pursuant to the Plan. TAX INCREMENT PLEDGE AGREEMENT This Tax Increment Pledge Agreement (the "Agreement ") dated as of February 17, 1998, is by and between the City of Lakeville, Minnesota (the "City "), and the Housing and Redevelopment Authority of the City of Lakeville, Minnesota (the "Authority "), and provides as follows: WHEREAS, the City Council has, on or before the date hereof, adopted a resolution authorizing the issuance of the City's $1,897,000 Tax Increment Revenue Note (Aurora Investments Project), Series 1998 (the "Note "); and WHEREAS, the Note is being issued to finance land acquisition costs within the Authority's Redevelopment Project No. 1 (the "Project ") and is to be payable from tax increments realized by the Authority from Tax Increment Financing District No. 3 (the "District ") within the Project. NOW, THEREFORE, to provide funds to be applied by the City to the payment of the principal and interest on the Note, the City and the Authority hereby agree as follows: 1. In order to provide tax increments to be applied by the City to the payment of principal of and interest on the Note, the Authority hereby pledges to the City, for deposit in the Tax Increment Revenue Note, Series 1998 Bond Fund to be created on the books of the City for the payment of the Note, and the Authority shall pay to the City prior to each February 1 and August 1, commencing on August 1, 2000, Available Tax Increments (hereinafter defined). As used in this Agreement, "Available Tax Increments" means all tax increments received by the Authority from the District, after deducting therefrom the semiannual amount of $10,904.50 to be applied to certain general obligation bonds heretofore issued by the City for the benefit of the Project and the semiannual amount of $4,571.50 to be used to reimburse the City for certain public improvement costs incurred or to be incurred by the City with respect to the Project. The City shall apply all Available Tax Increments received from the Authority to the payment of the Note in accordance with the terms thereof. 2. An executed copy of this Agreement shall be filed with the County Auditor of Dakota County. 3. This Agreement shall become effective upon the actual issuance and delivery of the Note. IN WITNESS WHEREOF, the City and the Authority have caused this Agreement to be duly approved and executed as of the day and year first above written. CITY OF LAKEVILLE, MINNESOTA B Its Mayor And q-/' Ad A l Lf Its City Clerk HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF LAKEVILLE, MINNESOTA -2- Its Executive Director