97-12 HRA Resolution
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Resolution 97-12
November 12, 1997
Commissioner Anderson introduced the following and moved its adoption:
RESOLUTION APPROVING AN AMENDMENT TO THE
TAX INCREMENT FINANCING PLAN FOR THE GOLDEN HILLS
REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT AND
APPROVING A TAX INCREMENT PLEDGE AGREEMENT RELATING
TO SAID DISTRICT
WHEREAS, the City Council for the City of Golden Valley approved the
original tax increment financing plan (herein, the "TIF Plan") for the Golden Hills
Redevelopment Tax Increment Financing District (herein, the "District") by
Resolution 85-2 adopted May 14, 1985; and,
WHEREAS, the Housing and Redevelopment Authority in and for the City
of Golden Valley (the "HRA") has prepared an update to the TIF Plan entitled
"Administrative Amendment #1 to the Tax Increment Financing Plan for the
Golden Hills TIF District" (herein, "Amendment #1 "), which updates certain
activities to be undertaken within the District and the budget for the District; and,
WHEREAS, pursuant to Minnesota Statutes, Section 469,174, subdivision
4, Amendment #1 may be approved and adopted by resolution by the Authority
since Amendment #1 does not change the boundaries of the 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 intends to undertake additional improvements
within the District to be funded, in part, from the proceeds of certain general
obligation tax increment bonds (herein, the "Bonds") to be sold by the City.
NOW, THEREFORE, BE IT RESOLVED that the Administrative
Amendment #1 to the Golden Hills Tax Increment Financing Plan is hereby
approved and adopted.
BE IT FURTHER RESOLVED that the draft of the Tax Increment Pledge
Agreement, dated as of December 1, 1997, to be entered into between the
Authority and the City in connection with the issuance of the Bonds is hereby
approved and the Chairperson of the Authority is authorized to execute the same
on behalf of the Authority.
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Resolution 97-12 (Con't.)
November 12, 1997
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ATTEST:
Motion for the adoption of the foregoing resolution was seconded by
Commissioner LeSuer; and upon a vote taken thereon, the following voted in
favor thereof: Anderson, Johnson, LeSuer and Micks; and the following voted
against the same: none; and the following was absent: Russell, whereupon said
resolution was declared duly passed and adopted, signed by the Chair and her
signature attested by the Director.
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Resolution 97-12 (Con't.)
November 12, 1997
TAX INCREMENT PLEDGE AGREEMENT
This Tax Increment Pledge Agreement (the "Agreement") dated as of
December 1, 1997, is by and between the City of Golden Valley, Minnesota (the
"City"), and the Housing and Redevelopment Authority of the City of Golden
Valley, Minnesota (the "Authority"), and provides as follows:
WHEREAS, the City Council has, on or before the date hereof, adopted
resolutions awarding the sale and authorizing the issuance of the City's
$2,350,000 General Obligation Tax Increment Bonds, Series 1997C, dated
December 1, 1997 (the "Tax Exempt Bonds") and $6,875,000 General Obligation
Taxable Tax Increment Bonds, Series 1997B, dated December 1, 1997 (the
"Taxable Bonds" and, together with the Tax Exempt Bonds, the "1997 Bonds");
and
WHEREAS, the 1997 Bonds are to be issued to finance public
redevelopment costs of various improvements within the Authority's Golden Hills
Redevelopment Tax Increment Financing District and are to be payable from tax
increments realized by the Authority from the District.
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NOW, THEREFORE, to provide funds sufficient for the timely payment of
the principal and interest on the 1997 Bonds, the City and the Authority hereby
agree as follows:
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1. In order to pay the principal of and interest on the 1997 Bonds when
due, the Authority hereby pledges to the City, for deposit in the respective bond
sinking funds established for the payment of the 1997 Bonds, and the Authority
shall pay to the City prior to each February 1 and August 1 interest payment
date, Available Tax Increments (hereinafter defined) in amounts sufficient to pay
such principal and interest when due on each such February 1 and August 1
and, if and to the extent that the Available Tax Increments are ever insufficient
for such purposes, and the City advances City funds to provide prompt and full
payment of the 1997 Bonds, the Authority agrees to reimburse the City for such
advances from Available Tax Increments thereafter received by the Authority.
As used in this Agreement, "Available Tax Increments" means tax increments
derived by the Authority from the District, excluding such tax increments which
have heretofore been pledged to the payment of other tax increment bonds or
public redevelopment costs. In discharging its obligations under this Agreement,
the Authority expressly reserves the right to select from year to year Available
Tax Increments from the District and to pledge or otherwise dedicate tax
increments from the District to purposes other than the payment of the 1997
Bonds upon a finding by the Authority that the estimated Available Tax
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Resolution 97-12 (Con't.)
November 12, 1997
Increments then remaining will be sufficient from year to year to discharge the
Authority's payment obligations on the 1997 Bonds pursuant to this Agreement.
2. An executed copy of this Agreement shall be filed with the County
Auditor of Hennepin County, as required by Minnesota Statutes, Section
469.178, Subdivision 2.
3. This Agreement shall become effective upon the actual issuance and
delivery of the 1997 Bonds.
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 GOLDEN VALLEY,
MINNESOTA
By
Its Mayor
And
Its City Manager
HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF
GOLDEN VALLEY, MINNESOTA
By
Its Chair
Resolution 97-12 (Con't.)
November 12, 1997
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City of Golden Valley, Minnesota
Housing and Redevelopment Authority of the City of Golden Valley, Minnesota
Administrative Amendment #1 to the
Tax Increment Financing Plan for the Golden Hills TIF District
The following text is added to the indicated sections of the Golden Hills TIF plan as a means of
clarifying and updating key information within the plan. Such modification does not change the
boundaries of the TIF district or project area, increase the amount of allowable bonded
indebtedness, increase the total budget or change any other aspect of the plan which would
statutorily require the City and/or HRA to follow the procedure set forth in M.S. 469.174-
469.179 for adoption of a new TlF plan.
c. Development Program
4. Phase IV
B. Proposed Reuse of Land
Added Text
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A portion of the Phase IV area encompasses a 15-acre site consisting of
approximately 20 parcels, many of which are encumbered by various obsolete
easements and gaps or overlaps in title. Two parcels have no direct access to any
pUblic street and environment testing has revealed pollution of soil or groundwater in
several locations.
Most of the nine buildings are of substandard construction based on current building
code, and offer little of no greenery as required by City landscaping standards.
Zoning code violations throughout the area include nonconforming use of property,
inadequate setback of buildings and paved areas, unscreened outdoor storage and
not enough on-site parking and loading spaces. The largest single use is an
unscreened storage yard for very large equipment and miscellaneous salvage. This
yard spreads across almost half of the total site area in disregard of property lines.
Proposed development of this site includes construction by MEPC American
Properties, Inc. of two office/warehouse structures. The facilities will be constructed
in 1998 and 1999 and will be approximately 78,500 sq. ft. and 86,300 sq. ft. in size.
F. Estimate of Costs
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Added Text
The original estimate of costs (budget) associated with the Golden Hills TIF District is
summarized in the top portion of Exhibit I of this amendment. The lower section of
this exhibit illustrates the current status of the original budget and details the
projected expenditures for the MEPC project. It is anticipated that the MEPC project
($16,056,176) will be funded with available TIF funds ($4,500,000), land sale
proceeds ($2,325,000), taxable and tax-exempt G.O. tax increment bonds
($9,225,000) and investment earnings ($6,176).
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Resolution 97-12 (Can't.)
November 12, 1997
F. Estimated Amount of Bonded Indebtedness
Added Text .
A summary of actual and projected bonded indebtedness for the TIF District is listed
below. The maximum amount of bonded indebtedness that can incurred to pay for
the public costs associated with the TIF District remains at $27,150,000 (as per the
original TIF plan).
Actual
New Issuance
Par Amount"- 1985 Bonds
Principal Paid - 1985 Bonds
Principal Refunded - 1985 Bonds
Additional Issuance - 1991 Bonds
Par Amount - 1991 Bonds
Principal To Pay - 1991 Bonds
Principal Refunded - 1991 Bonds
Additional Issuance - 1997 Bonds
Par Amount - 1997 Bonds
Total Actual New Issuance
$6,700,000
1.705.000
$4,995,000
115.000
$5,110,000
1.675.000
$3,435,000
55.000
$3,490,000
$6,700,000
115,000
55.000
$6,870,000
Proiected
Par-Amount - 1997B Bonds (Taxable)
Par Amount - 1997C Bonds (Tax-Exempt)
Total Projected New Issuance (MEPC Project)
$6,875,000
2.350.000
$9,225,000
Total Actual and Projected New Issuance
Total Actual and Projected New & Refunding Issuance
$16,095,000
$24.525,000
H. Sources of Revenue
Added Text
A Projected Cash Flow Schedule for the TIF District is shown in Exhibit" of this
amendment. Existing cash balances from the district along with future tax increment
collections should be adequate to pay scheduled project costs and debt service over
the life of the TIF district
Resolution 97-12 (Con't.)
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Exhibit I
November 12, 1997
City of Golden Valley, Minnesota
Golden Hills TIF District
Budget as per Original TIF Plan (a)
Uses of Funds
Land Acquisition
Demolition
Bury Power Lines
Street Lighting
Street Construction
Utility Extension
Remove Rail Line
Reconstruct Turner's Crossroads
Contingencies
Administration & Legal
Relocation
Capitalized Interest
Bond Discount
Total Uses
Less:
Land Sale Revenue
Interest Income
e Net Uses (Total=Max. Bonding)
Phase I Phase II Phase III Phase IV Multi-Phase Total
4,663,200 4,407,900 1,611,680 7,238,500 0 17,921,280
364,110 137,800 191,500 583,500 0 1,276,910
212,000 448,000 448,000 448,000 0 1,556,000
37,100 72,800 72,800 72,800 0 255,500
224,720 177,000 56,000 134,400 0 592,120
0 0 0 56,000 0 56,000
53,000 0 0 0 0 53,000
178,650 0 0 0 0 178,650
330,420 281,375 126,550 517,000 0 1,255,345
330,420 281,375 126,550 517,000 0 1,255,345
875,500 385,840 151,200 1,808,800 0 3,221,340
1,380,880 0 0 0 4,326,000 5,706,880
100,000 0 0 0 308,000 408,000
8,750,000 6,192,090 2,784,280 11,376,000 4,634,000 33,736,370
2,000,000
200,000
6,550,000
o
o
6,192.090
700,000
o
2,084,280
3,000,000
o
686,370
3.947,630
5,700,000
886,370
27,150,000
8,376,000
Current Status of Budget (a)
Original
Budget as Accounted Remaining Anticipated Total
Restated For Budget Anticipated Gross Anticipated
For State Through As Of MnDOT MEPC Additional
TIF Forms 12/31/96 (b) 12/31/96 Expend. (c) Expend. (b) Expend.
Uses of Funds
Land/Building Acquisition 17,921,280 10,389,116 7,532,164 700,000 8,900,000 9,600,000
Site Improvements (Demolition) 1,276,910 735,753 541,157 0 600,000 600,000
Installation of Public Utilities 2,691,270 250,854 2,440,416 0 2.500,000 2,500,000
Administration & Legal 2.239,190 639.744 1,599,446 0 1,443.000 1,443,000
Relocation 3,221,340 423,989 2,797,351 0 2,430,000 2,430,000
Bond Issuance Costs 679,500 159,439 520,061 0 183,176 183,176
Capitalized Interest 5,706,880 1,471,435 4,235,445 0 0 0
Total Uses 33.736,370 14,070.330 19,666,040 700,000 16.056,176 16,756,176
(a) Excludes bond principal and interest payments.
e(b) Paid for with a combination of bond proceeds, TIF revenues, land sale proceeds and investment earnings.
(c) Paid for with available TIF revenues.
Prepared by: Springsted Incorporated (11/5/97)
BUDGET.XLS
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Exhibit II
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City of Golden Valley, Minnesota Cl)
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Projected Cash Flow Schedule ......
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Golden Hills Tax Increment Financing District (County TIF #1503) M-
-I.
0
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1..0
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Revenues Expenses I
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Purchase Projected Projected C""l
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Annual MnDOT Bldg. MEPC 1991 TIF 1997 TIF 1997 1997 Annual Ending :::l
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Collect Period Tax & Transfer to Project Refunding Refunding Tax-Exempt Taxable Surplus Cash M-
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Year Ending Increment (a) Valley Sq. (b) Costs Bonds Bonds Bonds Bonds (Deficit) Balance (c)
(1) (2) (3) (4) (4) (5) (6) (7) (8) (9) (10)
1996 2/1/97 6, 158,~92
1997 211/98 2,200,000 2,030,000 4,500,000 705,975 0 (5,035,975) 1,122,517
1998 2/1/99 2,448,013 0 0 707,080 0 172,994 573,338 994,601 2,117,118
1999 2/1/00 2,154,251 0 0 711,280 0 153,523 495,675 793,773 2,910,891
2000 211/01 2,241,251 0 0 0 676,919 151,573 492,725 920,034 ; 3,830,926
2001 2/1/02 2,241,251 0 0 0 679,577 279,573 939,725 342,376 4,173,302
2002 211/03 2,241,251 0 0 0 680,715 277,193 944,225 339,118 4,512,421
2003 2/1/04 2,241,251 0 0 0 680,350 279,423 941,055 340,423 4,852,844
2004 2/1/05 2,241,251 0 0 0 683,277 281,038 945,460 331,476 5,184,321
2005 2/1/06 2,241,251 0 0 0 664,528 282,018 941,740 352,965 5,537,286
2006 2/1/07 2,241,251 0 0 0 0 277,450 940,460 1,023,341 6,560,628
2007 2/1/08 2,241,251 0 0 0 0 282,550 941,260 1,017,441 7,578,069
2008 2/1109 2,241,251 0 0 0 0 281,740 938,410 1,021,101 8,599,170 :z
2009 2/1/10 2,241,251 0 0 0 0 280,225 941,820 1,019,206 9,618,377 0
<
2010 2/1111 2,241,251 0 0 0 0 277 ,985 940,720 1,022,546 10,640,923 Cl)
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r:;;r
31,456,030 2,030,000 4,500,000 2,124,335 4,065,366 3,277,285 10,976,613 4,482,431 Cl)
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(a) Projected increment in 1998 based on valuations provided by Hennepin County and an assumed total tax rate of 145%. ~
Projected increment in 1999 reduced by 12% to ref/ect potential reduction in CII class rate from 4.0% to target rate of 3.5%. 1..0
1..0
Projected increment in 2000 and beyond held constant and includes $87,000 per year in increment generated by MEPC project.. '-J
(b) Includes $700,000 of TIF revenues for purchase of MnDOT property and a transfer of $1,330,000 in land sale proceeds to the Valley Square TIF district.
(c) Cash balance on 2/1/97 equals 1996 year-end balance provided by City ($6,700,000) less 2/1/97 debt service on 1991 TIF refunding bonds ($541,508).
Prepared by: Springsted Incorporated (11/5/97)
1III=P~? VI ~{~",..hl:l^",\
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TAX INCREMENT PLEDGE AGREEMENT
This Tax Increment Pledge Agreement (the "Agreement") dated as of
December 1, 1997, is by and between the City of Golden Valley, Minnesota (the
"City"), and the Housing and Redevelopment Authority of the City of Golden
Valley, Minnesota (the "Authority"), and provides as follows:
WHEREAS, the City Council has, on or before the date hereof, adopted
resolutions awarding the sale and authorizing the issuance of the City's
$2,350,000 General Obligation Tax Increment Bonds, Series 1997C, dated
December 1, 1997 (the "Tax Exempt Bonds") and $6,875,000 General Obligation
Taxable Tax Increment Bonds, Series 1997B, dated December 1, 1997 (the
"Taxable Bonds" and, together with the Tax Exempt Bonds, the "1997 Bonds");
and
WHEREAS, the 1997 Bonds are to be issued to finance public
redevelopment costs of various improvements within the Authority's Golden Hills
Redevelopment Tax Increment Financing District and are to be payable from tax
increments realized by the Authority from the District.
NOW, THEREFORE, to provide funds sufficient for the timely payment of
the principal and interest on the 1997 Bonds, the City and the Authority hereby
agree as follows:
1. In order to pay the principal of and interest on the 1997 Bonds when
due, the Authority hereby pledges to the City, for deposit in the respective bond
sinking funds established for the payment of the 1997 Bonds, and the Authority
shall pay to the City prior to each February 1 and August 1 interest payment
date, Available Tax Increments (hereinafter defined) in amounts sufficient to pay
such principal and interest when due on each such February 1 and August 1
and, if and to the extent that the Available Tax Increments are ever insufficient
for such purposes, and the City advances City funds to provide prompt and full
payment of the 1997 Bonds, the Authority agrees to reimburse the City for such
advances from Available Tax Increments thereafter received by the Authority.
As used in this Agreement, "Available Tax Increments" means tax increments
derived by the Authority from the District, excluding such tax increments which
have heretofore been pledged to the payment of other tax increment bonds or
public redevelopment costs. In discharging its obligations under this Agreement,
the Authority expressly reserves the right to select from year to year Available
Tax Increments from the District and to pledge or otherwise dedicate tax
increments from the District to purposes other than the payment of the 1997
Bonds upon a finding by the Authority that the estimated Available Tax
.
Increments then remaining will be sufficient from year to year to discharge the
Authority's payment obligations on the 1997 Bonds pursuant to this Agreement.
2. An executed copy of this Agreement shall be filed with the County
Auditor of Hennepin County, as required by Minnesota Statutes, Section
469.178, Subdivision 2.
3. This Agreement shall become effective upon the actual issuance and
delivery of the 1997 Bonds.
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 GOLDEN VALLEY,
MINNESOTA
BY'ts~a:tf~
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And
Its City Manager
HOUSING AND RE ELOPMENT
AUTHORITY OF THE CITY OF
GOLDEN VALLEY, MINNESOTA
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By
Its Chair ... · ..
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