HomeMy WebLinkAbout2004-091 CCRMember Kay Lasman introduced the following resolution and moved its adoption:
RESOLUTION NO. 2004-91
RESOLUTION RATIFYING ADVANCES TO COVER DEBT SERVICE IN TIF
DISTRICT NO.2
WHEREAS, class rate changes adopted by the State of Minnesota reduced the net tax
increment received in Tax Increment Financing District No. 2; and
WHEREAS, the bond resolutions and pledge agreements adopted and approved at the time
of issuance of bonds for TIF District No. 2 obligated the City to pay debt service on the bonds if tax increments
were insufficient and the pledge agreements provided that the City would be reimbursed from tax increments
for any payments made to cover shortfalls in tax increments received and debt service payments due; and
WHEREAS, during the years 2000 through 2003 the City advanced a net of $1,043,323 to
cover shortfalls in increment needed to cover debt service; and
WHEREAS, prior to 2000 there was due an owing for advances made in connection with
TIF District No. 2 activities of $698,143; and
WHEREAS, the bonds issued for TIF District No. 2 have now been retired and the monies
advanced can be repaid through increments generated in TIF District No. 2; and
WHEREAS, the City wishes to ratify the required transfers and memorialize the amount to
be repaid by virtue of the required advances to cover debt service.
NOW, THEREFORE, BE IT RESOLVED bythe City Council ofthe City ofBrooklyn Center
that:
I ) The sum of $1,043,323.63 advanced to cover shortfalls in debt service payments for TIF
District No. 2 be and hereby is ratified and established in said amount to be repaid
without interest from tax increments generated in Tax Increment District No. 2;
2) The sum of $698,143 advanced from other funds prior to 2000 in connection with TIF
District No. 2 activities be and hereby is directed to be re-paid from TIF District No. 2
increments; and
3) The remaining fund balance in the sinking fund for the payment of the retired TIF District
No. 2 bonds be transferred to TIF District No. 2 and applied to the repayment of advances
made to TIF District No. 2.
June 28. 2004
to U Mayo
ATTEST: I~t/ ~~JU►'4
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
Kathleen Carmody
and upon vote being taken thereon, the following voted in favor thereof
Myrna Kragness, Kathleen Carmody, Kay Lasman, Diane Niesen, and Bob Peppe;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.