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HomeMy WebLinkAbout10-08-2001M:\MasterFiles\1999 thru 2010\2001\EDA\EDA Packets\10-08-2001\Agenda - October 8, 2001 EDA Meeting.doc CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MONDAY, OCTOBER 8, 2001 AGENDA 1. CALL MEETING TO ORDER 2. ROLL CALL: Sonterre, Quick, Marty, Stigney, Thomas 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES A. September 24, 2001 5. SPECIAL ORDER OF BUSINESS: 6. REPORTS 7. CONSENT AGENDA 8. EDA BUSINESS A. Discussion and Consideration of EDA Resolution 01-EDA-153, a Resolution providing for the Issuance and Sale of the EDA’s Taxable Tax Increment Bonds, Series 2001, and Approving Execution of Various Agreements – Ericson & O’Meara 9. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting September 24, 2001 Mounds View City Hall 2401 Highway 10, Mounds View, MN 55112 8:30 P.M. 1. CALL MEETING TO ORDER 2. ROLL CALL: Sonterre, Stigney, Marty, Thomas and Quick. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Marty/Stigney. To Approve the Agenda for September 24, 2001 as presented. Ayes – 5 Nays – 0 Motion carried. 4. APPROVAL OF EDA MINUTES A. Approve Minutes of September 10, 2001. MOTION/SECOND: Marty/Thomas. To Approve the Minutes of the EDA for September 10, 2001 as presented. Ayes – 4 Nays – 0 Abstain – 1 (Quick) Motion carried. 5. SPECIAL ORDER OF BUSINESS None. 6. REPORTS None. Mounds View EDA September 24, 2001 Regular Meeting Page 2 7. CONSENT AGENDA None. 8. EDA BUSINESS A. Consideration of EDA Resolution 01-EDA-152, a Resolution Authorizing the Sale of Land Located at 2625 County Highway 10, Property Presently Owned by the EDA, to the Mounds View Animal Hospital. Community Development Director Ericson indicated that this was supposed to have been a public hearing but the City was informed that the page of the newspaper that contained the public notice of the hearing had “fallen out of the printer” which means the meeting was not properly noticed for tonight’s meeting. He then suggested opening the public hearing and continuing it to October 1, 2001 as staff is asking that the EDA call to order at the work session to handle this matter. City Attorney Riggs indicated there was no need to open the public hearing and continue it, as it was not noticed for this date. He then indicated that proper notice was posted in the newspaper for October 1, 2001. 9. ADJOURNMENT President Sonterre adjourned the meeting at 8:35 p.m. Respectfully submitted, Recorded and transcribed by: Joan Lenzmeier TimeSaver Off Site Secretarial, Inc. Item No: 8A Meeting Date: October 8, 2001 Type of Business: EDA-B WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Economic Development Authority From: James Ericson, Community Development Director Item Title/Subject: Discussion and Consideration of EDA Resolution 01- EDA-153, a Resolution providing for the Issuance and Sale of the EDA’s Taxable Tax Increment Bonds, Series 2001, and Approving Execution of Various Agreements Date of Report: October 4, 2001 Background: Over the course of this year and last, City staff has been working with Jim O’Meara of Briggs and Morgan to finalize the development assistance agreement for the Mermaid project. We have been close to being final for some time now, and then had to put on hold the approval pending the outcome of the legislature’s revisions to the TIF laws. Because of those changes, the foundation of the TIF agreement had to be revised. Now, after many months of revisions, the documents are in place and the agreement is ready to be approved by the Economic Development Authority. Jim O’Meara will be present at the meeting to address any of your questions pertaining to the attached Development Assistance Agreement, the Indenture of Trust, or the Private Placement Memorandum. For the Authority’s reference, the Private Placement Memorandum (PPM) has been prepared by the Mermaid’s financial consultant and will be used in conjunction with the sale of the bonds to a third party. It is included for the Authority’s information only and does not require the Authority’s execution. Discussion: Essentially what the Authority is approving with Resolution 01-EDA-153 is the issuance of the tax increment revenue bonds not to exceed $850,000 at an interest rate not to exceed 7.75%. The Council may recall that prior to the legislature imposed changes, the amount of the assistance had been discussed at levels that exceeded $2,000,000. The Bonds being approved for issuance are not general obligation bonds and do not put the City at any risk. The Bonds are repaid through the increment generated above and beyond the established tax capacity of the Mermaid project. If for some reason the increment is not sufficient to pay the Bonds, the Halls have provided their personal guarantee. The net proceeds of the Bonds shall provide funds to the Mermaid to cover certain eligible costs such as land acquisitions. The TIF plans were approved for modification in November of 2000 to allow for this development to move forward. Recommendation: Approve Resolution 01-EDA-153, a resolution providing for the Issuance and sale of the EDA’s Taxable Tax Increment Bonds, Series 2001, and approving execution of various Agreements. If you should have any questions about this or any of the attachments, please feel free to contact me prior to the meeting. _____________________________________ James Ericson Community Development Director 763-717-4021 Attachments: 1. Development Assistance Agreement 2. Indenture of Trust 3. Private Placement Agreement 4. Resolution 01-EDA-153 N:\DATA\GROUPS\COMDEV\Development Cases\Pd00-002 (Mermaid PUD)\TIF Documents\Mermaid TIF Report - Oct 8, 2001.doc 1280407v2 RESOLUTION NO. 01-EDA-153 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE EDA'S TAXABLE TAX INCREMENT REVENUE BONDS, SERIES 2001, AND APPROVING EXECUTION OF VARIOUS AGREEMENTS BE IT RESOLVED by the Board of Commissioners (the "Board") of the Mounds View Economic Development Authority (the "EDA") as follows: 1. Recitals and Findings. It is hereby recited and determined: (a) The EDA is authorized under the laws of Minnesota, including Minnesota Statutes, Sections 469.090 through 469.108, and the powers conferred on the EDA therein (collectively, the "Act"), to enter into certain agreements and to issue revenue bonds to aid in financing certain projects. (b) Pursuant to and in furtherance of the objectives of the Act, the EDA has undertaken a program to promote development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project (the "Development Project") within the City. (c) MoundsVista, Inc. (the "Developer"), has presented the EDA with a proposal for the completion of certain improvements within the Development Project, consisting generally of certain redevelopment activities and the construction of new hotel and banquet facilities, and a certain Development Assistance Agreement between the EDA and the Developer (the "Development Agreement") stating the terms and conditions thereof and the Authority's responsibilities respecting the assistance thereof has on the date hereof been presented to the Board for its consideration. (d) To provide financing for certain Development Costs, as defined in the Development Agreement, the EDA expects to issue its Taxable Tax Increment Revenue Bonds, Series 2001 (the "Bonds"). (e) The Bonds are to be issued pursuant to a certain Indenture of Trust (the "Indenture") between the EDA and U.S. Bank National Association, in Saint Paul, Minnesota, as "Trustee" thereunder. (f) The Developer has arranged for Miller Johnson Steichen Kinnard, Inc., and/or other underwriters (the "Placement Agent"), to prepare and distribute a certain Private Placement Memorandum respecting the Bonds (the "Private Placement Memorandum") and arrange for the purchase of the Bonds from the EDA. 1280407v2 Resolution 01-EDA-153 4 (g) Each capitalized term which is used but not otherwise defined in this Resolution shall have the meaning given to that term in the Indenture. (h) The Board hereby finds that the execution and delivery of the Indenture and the Development Agreement and the issuance of the Bonds are in furtherance of the Act. 2. Acceptance of Offer; Approval of Agreements. Subject to and contingent upon the Placement Agent's successful arrangement of the placement, sale and issuance of the Bonds, the Board hereby approves and authorizes the EDA's execution and delivery of and performance under the Indenture and the Development Agreement, such execution to be substantially in the forms of the same which have been presented to the EDA for the Board's consideration, but with such additions thereto or deletions therefrom as the officers of the EDA executing the same shall in their discretion deem appropriate or necessary, as evidenced by their execution thereof. As so executed and delivered, the Indenture is and shall be as much a part of this Resolution as though set forth herein. The principal amount of the Bonds shall not exceed $850,000, and the interest rate borne by the Bonds shall not exceed 7.75%. The proceeds of the Bonds shall be applied as provided in the Indenture and/or the certifications of the EDA. 3. Purpose. The Net Proceeds of the Bonds (as the term "Net Proceeds" is defined in the Indenture) shall provide funds to finance demonstrated and eligible Development Costs. 4. Delivery; Application of Proceeds. Contingent upon the execution and delivery of the Indenture and the Development Agreement, the Bonds are authorized to be executed by the EDA, authenticated by the Trustee pursuant to the Indenture and delivered to the original purchaser or purchasers thereof upon receipt of the total purchase price thereof. 5. Records and Certificates. Upon request, the officers of the EDA are hereby authorized to prepare and furnish to the Trustee, the Placement Agent, and to the attorneys approving the legality of the issuance of the Bonds certified copies of all proceedings and records of the EDA relating to the Bonds and such other information as may required to show facts as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certifications, including any heretofore furnished, shall be deemed representations of the EDA as to the facts recited therein. 6. No Continuing Disclosure Undertaking. The Board hereby finds that the Bonds are exempt from continuing disclosure requirements of Rule 15c2-12 of the Securities and Exchange Commission due to the fact that the Bonds are issued in denominations of $100,000 or more. Consequently, the EDA is not covenanting to provide and will not provide annual financial information, notices of certain material events or any other disclosure or information which would otherwise be required by that Rule. 1280407v2 Resolution 01-EDA-153 5 7. Severability. If any section, paragraph or provision of this Resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Resolution. 8. Relationship to Indenture. If any provision of this Resolution contradicts a provision of the Indenture, the latter shall apply and govern. 9. Headings. Headings in this Resolution are included for convenience of reference only and shall not limit or define the meaning of any provision hereof. Adopted on October 8, 2001, by the Board of Commissioners of the Mounds View Economic Development Authority. __________________________ Richard Sonterre, President ATTEST: _____________________________ Kathleen Miller, Executive Director The motion for the adoption of the foregoing resolution was made by Boardmember ______________ and duly seconded by Boardmember ____________ and upon a vote being taken thereon, the following Boardmembers voted in favor thereof: and the following Boardmembers voted against the same: Whereupon said resolution was declared duly passed and adopted.