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281015 WHITE - C�TV CIERK ������ Fr;NK � FINANCE G I TY OF SA I NT PAU L Council ARV - Q�PARTMENT 1�,E - MAVOR File NO. �. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date RESOLUTION REDUCING AMOUNT OF TAX INCREMENT ,' PLEDGE TOWARDS PAYI�ENT OF PROJECT GENERAL OBLIGATION BONI3S FOR PLEDGE TO PAYMENT OF � SPECIAL OBLIGATION TAX� INCREMENT 'R�V'ENUE NOTE (SAINT PAUL CIVIC CENTER PROJECT) WHEREAS, by its Resolution, C.F. No. 272206, adopted December 12, 1978, relating to the issuance of $11, 810,000 general obligation bonds consisting of $5, 300,000 General Obligation Refunding Bonds of 1978 and $6,510,000 General Obligation Development Bonds of 1979, Series A (collectively the "Bonds" ) , the City Council pledged all tax increments (the "Tax Increments") derived from the Seventh Place Redevelopment Project area to the Common Debt Service Account for payment of the principal and interest on said Bonds; and WHEREAS, by Part III, Paragraph 8, Resolution C.F. No. 272206, the City reserved the right to reduce the Tax Increments so pledged pursuant to Minnesota Statutes, Section 462.585, Subdivisions 3 and 4, provided such action did not preclude the City from paying when due the debt service on the Bonds or otherwise impair the City' s full faith and credit pledge; and COUfVCILMEN Requested by Department of: Yeas Nays Fletcher - �", �e��� In Favor Masanz — Nicosia Scheibel _ Agel[1St BY Tedesco Wilson Form Appr ve by City Attorney � Adopted by Council: Date Certified Yassed by Count�il Secretary BY ' By t#pproved by lWavor: Date Approv yor for Sub ission to Council By BY t � • �1.7��J�� � WHEREAS, by its Resolution, C.F. No. 278303 adopted February 23, 1982, relating to the issuance by the Housing and Redevelopment AutYiority of the City of Saint Paul, Minnesota (HRA) of its $3,150,000 Special Obligation Tax Increment Revenue Note (Block 40 Redevelopment Project) , Series 1982 (the "Prior Note") , the City Council reduced the pledge of Tax Increments for the Bonds, in an amount required to meet principal and interest payments on the Prior Note, subject to there being sufficient funds from sources other than direct annual ad valorem taxes to pay the debt service on the Bonds; and WF�REAS, the City Council by its Resolution, C.F. No. 277045 approved a district heating feasibility loan of Tax Increments of $2,300,000 over a three year period ending in 1984; by its Resolution, C.F. No. 279442, approved the expenditure of an additional $5,500,000 of Tax Increments for district heating purposes; by its Resolution, C.F. No. 279067 approved the expenditure of $1,456,000 of Tax Increments for acquisition of the Donaldson's parking ramp property; and by its Resolution, C.F. No. 279069 approved the transfer of Tax Increments to the Town Square Park Fund in the aggregate amount of $800,000 (the foregoing authorizations being collectively the "Approved Appropriations" ) and The City and The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") are empowered to pledge the Tax Increments to the payment of other obligations of the HRP, prior and superior to the expenditure of the Tax Increments to the payment of the Approved Appropriations; and WHEREAS, the HRA proposes to issue a Special Obligation Tax Increment Revenue Note (Saint Paul Civic Center Project) , dated September 1, 1983 (the "Note") , in the principal amount of $50,455,040 with interest per annum as set forth in the Note to finance part of the public redevelopment cost of the Seventh Place Redevelopment Project in the manner provided in the revision to the Redevelopment Plan for the Seventh Place Redevelopment Project approved by Resolution C.F. No. 280374 and in a Purchase Agreement to be entered into between the HRA and the City in connection with the Saint Paul Civic Center Project (the "Purchase Agreement" ) and to pledge (the "Pledge" ) the Tax Increments to the payment of the Note and interest thereon subject and subordinate to the pledge of the Tax Increments to the payment of the Bonds and Prior Note but superior and prior to the expenditure of Tax Increments to the payment of the Approved Appropriations; and r , . ������ WHEREAS, payment of the principal and interest on the Note is to be in installments estimated (after subtracting portions thereof reasonably expected to be deferred and eventually abated as provided in the Note) to be in amounts substantially less than the full installments payable under the Note, but the HRA has requested, and the Note so provides, that the full installments be payable solely from tax increments derived and received by the City from the Seventh Place Redevelopment Project as a tax increment district; and WHEREAS, the Note will be subject to abatement and discharge on September 1, 1998 if the City exercises its option under the Lease to purchase the Civic Center, which purchase will be funded in part by sums to be held in a "Note No. 1 Security Fund" to be funded by the HRA from certain proceeds of the sale of the Civic Center facilities to the Partnership, and, it is reasonably expected that such purchase option will be exercised by the City; and WHEREAS, the Note will be issued to finance public redevelopment costs in aid of the Seventh Place Redevelopment Project, and the City Budget Director advises the City Council that the estimated Tax Increments to be received each year will be sufficient to meet debt service on the Bonds, to provide prior established reserves for debt service on the Bonds after 1986, to meet debt service on the Prior Note, to finance the Approved Appropriations which remain to be funded, and to meet the principal and interest installments expected to be paid on the Note; and WHER�:AS, in the event that the City reduces its pledge of Tax Increment for payment of debt service on the Bonds in the amount of the debt service installments due on the Note, such reduction would be in the manner and for a purpose permitted by law and would not preclude the City from paying when due debt service on the Bonds nor impair its full faith and credit pledge for said payment, and the City Council so determines; now therefore, be it RESOLVED, by the Council of the City of Saint Paul as follows: 1) That the pledge of all Tax Increments derived from the Seventh Place Redevelopment Project to the Common Debt Service Account for payment of the principal and interest due on the Bonds, to the extent that said Account has available from all sources other than direct annual ad valorem taxes for such year WHITE - CITV CLERK ������ P�NK r FINANCE �ANARV - D„EPARTMENT GITY OF SAINT PAUL COUIICI BLU,E . + MAVOR File NO• � � Council Resolution Presented By Referred To Commiktee: Date Out of Committee By Date sufficient sums to meet annual debt service on the Bonds payable in that year, shall be reduced in order to meet principal and interest payments when due on the Special Obligation Tax Increment Revenue Note (Saint Paul Civic Center Project) . 2) That the HRA is authorized to pledge Tax Increments to the payment of the Note in the amounts set forth in the Note, subject to the existing pledge for the Bonds and Prior Note but prior to the Authorized Appropriations, and for such purpose there is hereby created the Special Obligation Revenue Note Debt Service Account (Saint Paul Civic Center Project) to be held and administered by the Director of Finance and Management Services as a separate City account which Account shall be used solely to pay when due principal and interest on the Special Obligation Tax Increment Revenue Note (Saint Paul Civic Center Project) , issued by the HRA. COU[VCILMEN Requested by Department of: Yeas Nays � Fletcher — -.� Galles [n Favor Masanz Nicosia Scheibel � __ Against BY Tedesco Wflson Adopted by Council: Date OCT � 3 �953 Form Appro by City Attorn ' Certified as-e ou cil , r ar BY � �. Bp 1 OCT 1 � 1983 Approved,iKy Mayor for Submission to Council t�ppro y i4lavor: '– By _ — BY PUBLISHED OCT 2 2 1983