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Home My WebLink About2008 04-28 EDAP EDA MEETING City of Brooklyn Center April 28, 2008 AGENDA 1. Call to Order —The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. March 24, 2008 Regular Session 4. Commission Consideration Items a. Resolution Authorizing Execution of Tax Increment Pledge Agreement -Requested Commission Action: Motion to adopt resolution. 5. Adjournment enda Item No, 3a MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION MARCH 24, 2008 CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to order by President Tim Willson at 9:28 p.m. 2. ROLL CALL President Tim Willson and Commissioners Kay Lasman, Mary O'Connor, Dan Ryan, and Mark Yelich. Also present were Executive Director Curt Boganey, Community Development Director Gary Eitel, Chief of Police Scott Bechtold, City Attorney Charlie LeFevere, and Carol Hamer, Timesaver Secretarial, Inc. 3. APPROVAL OF AGENDA AND CONSENT AGENDA Commissioner Lasman moved and Commissioner Ryan seconded approval of the Agenda and Consent Agenda, and the following item was approved: 3a. APPROVAL OF MINUTES 1. March 10, 2008 Regular Session Commissioner O'Connor abstained due to her absence. Motion passed. 4. COMMISSION CONSIDERATION ITEMS 4a. RESOLUTION NO. 2008 -05 APPROVING THE MODIFICATION OF THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 Mr. Eitel introduced the item, provided background, and stated the purpose of the proposed resolution. There was discussion on adding the acquisition of single family housing, rehabilitation of single family housing, and environmental remediation of single and multi family housing properties to Tax Increment Financing (TIF) Plan No. 3. It was noted that specific programs coming forward would make a distinction between single family rental property and owner occupied property. There was discussion on the possibility of utilizing TIF funds to preserve properties that become vacant due to foreclosure through a program that encourages single family ownership. This could be done through an entity such as Greater Metropolitan Housing Corporation (GMHC). 03/24/08 -1- DRAFT Commissioner Lasman moved and Commissioner Ryan seconded adoption of EDA RESOLUTION NO. 2008 -05 Approving the Modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 3. Motion passed unanimously. Mo p un y 5. ADJOURNMENT Commissioner Lasman moved and Commissioner Ryan seconded adjournment of the Economic Development Authority meeting at 9:41 p.m. Motion passed unanimously. 03/24/08 -2- DRAFT 1 EDA Agenda Item N 4a X City of Brooklyn Center Economic Development Authority Agenda Item Memorandum TO: Curt Boganey, Executive Director FROM: Daniel Jordet, Assistant Treasurer DATE: 22 April 2008 SUBJECT: Tax Increment Pledge Agreement Recommendation: It is recommended that the Economic Development Authority approve the attached resolution authorizing execution of a tax increment pledge agreement in relation to the sale of 4,335,000 of General Obligation Taxable Tax Increment Revenue Bonds, Series 2008A. Background: The City Council will be selling 4,335,000 of General Obligation Taxable Tax Increment Revenue Bonds on Monday, 28 April 2008. In order to repay those bonds plus the interest the EDA must pledge tax increment revenues to the repayment of those bonds. The attached resolution and agreement do so. Financial Impact: The Pledge Agreement promises to commit about 4,770,173 in principal and interest payments from current cash and future tax increment revenues to repayment of these bonds. Current cash is about 3,335,000 leaving about 1,435,173 to be paid from future increments over the next ten years. i i $4,335,000 City of Brooklyn Center, Minnesota Taxable General Obligation Tax Increment Bonds, Series 2008 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +1 105% Levy 02/01/2009 1,670,000.00 3.500% 110,849.17 1,780,849.17 1,869,891.63 02/01/2010 1,665,000.00 3.700% 107,823.76 1,772,823.76 1,861,464.95 02/01/2011 125,000.00 3.950% 46,218.76 171,218.76 179,779.70 02/01/2012 125,000.00 4.225% 41,281.26 166,281.26 174,595.32 02/0112013 125,000.00 4.400% 36,000.00 161,000.00 169,050.00 02/01/2014 125,000.00 4.600% 30,500.00 155,500.00 163,275.00 02/01/2015 125,000.00 4.800% 24,750.00 149,750.00 157,237.50 02101/2016 125,000.00 4.900% 18,750.00 143,750.00 150,937.50 02/01/2017 125,000.00 5.000% 12,625.00 137,625.00 144,506.25 02/01/2018 125,000.00 5.100% 6,375.00 131,375.00 137,943.75 Total $4,335,000.00 $435,172.95 $4,770,172.95 $5,008,681.60 SIGNIFICANT DATES Dated.................................. 6/01/2008 DeliveryDate 6/01/2008 FirstCoupon Date 2 /01/2009 Yield Statistics BondYear Dollars $10,055.00 AverageLife .1....... 2.319 Years AverageCoupon 4.3279259% NetInterest Cost NIC) ...........................I... 4.6728289% TrueInterest Cost TIC) 4.6685146% Bond Yield for Arbitrage Purposes 4.2843004% AllInclusive Cost AIC) 5.1265983% IRS Form 8038 NetInterest Cost 4.3279259% WeightedAverage Maturity 2.319 Years Interest rates are estimates. Changes in rates may cause significant alterations to this schedule. The actual underwriter's discount bid may also vary. T".blk GO 77F.VrM.20 JMLEFUBlU& I /7/ ?008 f:05 PM BpriCl Sted Page 6 Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF TAX INCREMENT PLEDGE AGREEMENT A. WHEREAS, the Brooklyn Center Economic Development Authority, Minnesota "Authority has heretofore established its Tax Increment Financing District No. 3 (the "Tax Increment Financing District within its Housing Development and Redevelopment Project No. 1; and B. WHEREAS, the City Council of the City of Brooklyn Center has adopted a resolution awarding the sale of the City's $4,335,000 Taxable General Obligation Tax Increment Bonds, Series 2008A (the "Bonds to provide funds to finance certain public redevelopment costs within the City (the "Project and C. WHEREAS, it is necessary and desirable that the City and the Authority enter into a tax increment pledge agreement pursuant to which the Tax Increments derived from the Tax Increment Financing District will be pledged to the Bonds. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center Economic Development Authority, as follows: 1. Authorization to Execute. The Tax Increment Pledge Agreement, a form of which agreement is now on file in the office of the Authority, is hereby approved in substantially the form submitted to the Authority. The Chair and Secretary are authorized and directed to execute the same on behalf of the Authority. 2. Filing. The City is directed to file a fully executed copy of the Tax Increment Pledge Agreement with the County Auditor of Hennepin County pursuant to Minnesota Statutes, Section 469.178, Subdivision 2. Amil 28. 2008 Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. TAX INCREMENT PLEDGE AGREEMENT THIS AGREEMENT, entered into as of the 1 st day of May, 2008, by and between the City of Brooklyn Center, a Minnesota municipal corporation, herein called the "City and the Brooklyn Center Economic Development Authority, a public body corporate and politic created and existing under the provisions of Minnesota Statutes, Sections 469.090 to 469.1082, herein called the "Authority witnesseth that: A. WHEREAS, the Authority has heretofore established its Tax Increment Financing District No. 3 (the "Tax Increment Financing District within its Housing Development and Redevelopment Project No. 1; and B. WHEREAS, the City Council of the City of Brooklyn Center has adopted a resolution (the "Bond Resolution awarding the sale of the City's Taxable General Obligation Tax Increment Bonds, Series 2008A (the "Bonds to provide funds to finance the acquisition, demolition, clearance and site preparation in target redevelopment areas within the City (the "Project and C. WHEREAS, the Project benefits the Authority; and D. WHEREAS, it is necessary and desirable that the City and the Authority enter into a tax increment pledge agreement pursuant to which a portion of the Tax Increments will be pledged to the Bonds. NOW THEREFORE the City and the Authority, in consideration of the Y Y� mutual covenants and agreements herein contained, covenant and agree as follows: 1. Pledge of Tax Increments: Coverage Test. The Authority pledges to the payment of the Bonds, Tax Increments in an amount equal to 105% of the debt service on the Bonds (the "Pledged Tax Increments 2. Remittance: Segregation: Reservation of Rights. All Pledged Tax Increments shall be remitted directly to the City and the City, acting as agent of the Authority, shall segregate all tax increments so received in a special account on its official books and records. The Authority reserves the right to alter the pledge of tax increments as set forth in the Resolution. 3. Filing: Computation and Collection. An executed copy of this Agreement shall be filed with the County Auditor of Hennepin County and shall constitute the request and authorization of the Authority and the City to the County Auditor and Treasurer to compute and collect the Tax Increments in accordance with the provisions of this Agreement and Minnesota Statutes, Section 469.177 and to remit the same to the Authority. 2159658vl IN WITNESS WHEREOF, the City and the Authority have caused this S Agreement to be duly executed on their behalf, and such signatures and seal to be attested, as of the day and year first above written. CITY OF BROOKLYN CENTER, MINNESOTA By Mayor By Manager 2159658vl 2 BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By Chair By Secretary 2159658v1 3