08-1291Substitute 11/26/08
SUBSTITUTE
RESOLUTION
Council File # 08-1291
Green Sheet #GS 3064195
NT PAUL, MINNESOTA
Presented by
A RESOLUTION AU�ZING PURCHASE OF A IIItA SUBORDINATE TIF NOTE
(UPPERLANDING PROJECT), SERIES 2008 TO ASSIST HRA IN REPAYING THE CITY
INTERNAL LOAN FUND F070
4
5
6
7
8
9
10
11
12
13
14
WIIEREAS, in October 2001, the City Council (the "City Council") approved CF 01-1062
advance of $6,000,000 from the Internal Bonowing Fund F 070 (now called the `Internal Loan Fund'),
to assist HRA in the Centex Upper Landing Housing project; and
WHEREAS, in December 2007, the City Council as part of the 2008 budget adoption, requested
the HRA to repay the City in 2008, the outstanding unpaid balance of the advance made from the Internal
Loan Fund; and
WHEREAS, the current remaining balance due by HRA to the City Intemal Loan Fund is
approximately $2,242,000; and
WIIEREAS, the City Treasurer and Debt Manager recommend that the IIRA issue a
Subordinated TIF Note ("HRA Note") at the interest rate of 5.75%, secwed by Upper Landing taY
increments, and the IIRA lery, so that City Treasurer may purchase the HRA Note as an inveshnent for
the City inveshnent portfolio and to repay the Internal Loan Fund before the end of the yeaz; and
WHERAS, Springsted Incorporated, as financial advisor to the City, has advised the HRA and the
City that the HRA Note would receive an investment grade credit rating if the City applied for such a
rating because the Note is secured by a pledge of the IIIZA's tax levy;
WIIEREAS, �*� the HRA Note would qualify for a�gtt investment grade credit rating,
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
none will be procured; and
WHEREAS, under its home rule charter and a 1992 local law relatin¢ to economic development
the City has additional inveshnent authority as further set forth below in Section 1.01; and
WHEREAS, the HRA Note will be sold to fhe City Treasurer in order to reduce costs of issuance
and satisfy an HRA outstanding obligation to the City;
NOW, BE IT RESOLVED by the City Council, that the following is hereby approved and
authorized:
Section 1.
1.01. Issuance and Sale and Purchase of the IIRA Note. That consistent with, and subject to
the recitals and other provisions of this Resolution, including Section 1.02, the issuance, sale and delivery
of the HRA Note to repay the Internal Borrowing Fund are hereby approved by the City. The purchase of
the HRA Note by the City Treasurer is approved. The City Council further waives the City Tnvestment
����I
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
..
Policy to allow the City Treasurer to purchase the HRA Note. Although the purchase of the HRA
Note is not suecificallv authorized by the Citv's Investment Policv or Minn. Stat. Chapter 118A,
it is herebv found and determined that the use of City funds to purchase the HRA Note is
authorized bv the Citv's charter and bv Chapter 376, Article 4, Laws of Minnesota for 1992 as an
investment in the Citv's economic development proeram in ¢eneral, and in connection with the
financine of a redevelopment proiect which includes housing. the continued operation of which
is needed in order to achieve the obiective of the redevelonment plan for the Centex Upner
Landing Area. Before Closing. Springsted Incomorated will provide a letter on the credit qualitv
of the HRA Note which the Citv will purchase.
1.02. General Terms of the Purchased FIItA Note. The IiI2A Note is to be placed with the City
Treasurec The HRA Note shall bear interest at 5.75 percent; the term of the IIRA Note shall be not more
than 11.5 years from its date of issuance (see E�ibit A). The IIRA Note is subject to optional
redemption on any date. Other terms and final sizing of the HRA Note to account for accrued interest and
shall be delegated to OFS Director, City Treasury and City Debt Manager. Appropriate City official are
autharized to execute any documents in connection with the Issuance, Sale and Purchase of the HRA
Note.
Yeas Na s Absent
Boshom �
Carter �
Harris i /
Helgen �
Lantry ,/
Stark ,i
Thune ,/
Requested by Department of:
By:
Approved by the Office of Financial Services
By:
Appxoved by City Attorney
�
Adopted by Council: Date //`,2�///� Approved by Mayor for Submission to Council
Adoption Certified by Council Secretary g
By: '
Approve by M� yoi Date �,., � S
By:
a
�
.
a
m
�
C
.�
N
N
�
N
C
O
3
a
U �
N M
�
'p U
U. O
G �
N
N �
m �
�
O O
J w
C
O
N
A
U
Q
�
Q
N
C
N
�
£
O
U
F
d
N I� �
O � �
V � O
M O 7
I� V �
V m V
N
N N
W
O
O
N
O
M
r O
O y
� �
M �
N �
m �
O �
J �
O —
y
c a�
� y
0
¢ °
�
�
�
�
G
�
O
�
E
O
N
U
C
�
�
m
�
W
W
�
�
N
�
�
N
�
U
c
m
m
m
�
F-
�
0
0
M
W
a
d
ti
�
C
.
�
�
O
w
Y
N (
r �
N �
N t
N �
— c
a� °
� �
��
C �
� �
J �
i N
o_ N
a �
� C
N T
N
� �
LL
F-
�
O
�
.�
N
Q
O
c
c
0
3
Q
C
O
U
N
y
3
O
L
�
N
N
2
N
N
N
LL
N C
�n N
C Q a�
n
W
m
U �
N
O r�n
ao
a�'i a
J J
�
m
L
N
�
N
y
N
d
a
g
a
N
�
C
.�
N
Z
N
N
d
N
m
�
U
�
C
N
'6
�
�
w
N
aN
�
��
O
O
O
O
O
N
N
y
N N
N -p
= j
� �
� � _
.. �
N (n L
U � p
�
�
° �'�a
O O O O
O O O O
O O (O (O
O ch ln W
O � N I�
V 1�
V �
N N
\°
0
O
O
M
+
W
O
O
N
LL
H
� �
2 �
�
m �
a�
c a� Z
C C
� � -N a
� W LL
m
E � �
�
woo
�
�
�
ui
�
N
�
a
N
L
U
N
C
N
>.
N
Q
�
c
m
O
O
N
m
N
d
N
C
N
�
W �-
c`'J W
O �
r �
M � '
O V
N
Vj
LL L
F w
� ��
a�i.c 2
a d' � o
� � � _
3 o _a�
r o�za
/�
Q g� � �i 1
O O
O O
O O
O O
O �
M �
N
�
d
�
c
a
N
� LL
j U �
m
�
mmm�c�vrncoNrnovmroc�vrnv �min�m
� c� cn m c� r rn rn rn M� rn m rn c� in r v� r rn o co m
�p CJ M � O N � N N O N (O fD LL9 � I� �(D � O W �
) O O N O W � N I� W Ol t�'J V V r� O� N 4'l (O N O
9 I� 1� N N nJ W cJ l[l � N(O t(J OJ r m V O C9 (O o� W c'J m
a ch M(�D O�J N� r 6�] � c�'J V t r�� W W W�(�O i� � Q
GI O O O> W W 1� (O � t!J V M N � O OJ oJ t� (O LL� � c�J N
O �`�'.-���«������
A
�
C S '
Q d
K
N
W
S
� N
N
N �
W
F
0
H
A
�
C
C
Q
O
O
M �
m m
°p O
N ~
�
N
d
d
C
d
A
�
»
N
N
C
.-- �
N M -
ro vi m �e
rn o � c
co r a �
� � d C
O th t �
N O V
(V Vl a
N
Q
N
h
U N
h �
y a
N �
Z
d
G
0 0 ° o ° o ° o 0 0 0 ° o ° o ° o
N N N N N N N N N N N
M t+J th M [h (7 M c'J c+l M M
� r r r � r� � � r r r
o v a a v v o v v v v
M M M th (") C) M M c+J C'J M
N O O o 0 0 0 0 0 o O O O O o 0 0 0 0 o O o o�
� (O (D (O (D N CO (O (O c0 (O (O (O (O (O (O (O N c0 cD c0 c0 t0 �
R (D fD (O (D CO (O (D (O (O (D (D (D (O (O (O CO CO (O (O (D (O (O N
� M M M c� m m th M C� f") M M M M M c� M M th (h (h f7 (D
°-rrrrr�r�t����rrrrr ��t� �rrr ?
U �� N��(J � N l(l ll� � tn tn «J � N N� N��(J ln N�
O (O (D (O CO (O (O (O (D (O (O � N
c� ro co m ro m ro m co m m m r
� r � n � r r r � � t� m N
oi ' _ ' o co
N � ln tn �(J tA N ln � ifJ N N�
N N N N N N N N N N N 1�
V3
O CJ M M M M M c� M M M(7 M M M M M M t�J (7 CJ (O N
M W m 6) OJ O) O] m Ol � 01 O) 6J 6) � W m O> ��� l0
� OJ OJ CO OJ W W OJ W oJ W W W W OJ OJ OJ OJ OJ oJ W M N
oi iri ui ui iri ui ui ui �ri ui vi ui ui vi vi �ri �rS vi ui ui vi r�+i
N N�` N N N N N N N N N c N N N N N N N N�
�- � � � � � �.- .- � � � � � � �.- .-
�
V I� OJ ln I� (O I� � N CO M N N ln ln M I� O cJ ch
N� M tn N�� C I� W O> O N cJ N I� (D (O N O(p N V
O � � N N O] (O � ��[J CO fV (V (O �(O o> � d' N W Cl
M�- I� f� N O C'J O O M O 6J N I� � V l(J W M T CO M �
� V d' � a c) ��(O N W N A O c� � c0 (O (D V N O� CO
W W(O V N O CO ll� ch � OJ (O M c- W�() N O) (D M O(O N
N ln � tn � ifJ V V V V M M M M N N N � � ��-
�
0 0 o a o 0 0 0 0 0 o a a a o 0 0 0 0 o a a o
O O O O O O O O O O O O O O O O O O O O O O O
N �fJ 1� tA 4� ln �(J N l� 1� tn tn t(J N N l� l� ttJ 1� l� �fJ N LL�
� ��t� �rr rr�nt�r� r rrr �� nt��
. . . . . . . . . . . . . . . . . . . . .
N N��(J N��fJ N u) � itJ UJ �Il � N N�� N� tn tn �
(") N 6l N M C c'J O) (O � N
N(D d' i� O O Vi N � O m
�rocico��rrv
roc��rco�nrnrnu�rnrn
V V V V� I� O>NC00 �
I� Oi � M� I� � N'cY I� O�
cocorr r�rmmroro
V3
Ol O) O O� � N N M M C V
0 0 � �
0 0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N N
M Ol th 6� M 6> c�"J OJ t+J Ol M W
I� W W lfi LL� � I� M O t� W N
rCOI�N c�m ro�vr W M
ooco.-cri� �o�or< <+i
rc�v �nr�o �no�r>c�o 0
� N� M N N N c� c0 V 6� i�
N� I� O(h (O 6J c N O O �
rnmrn0000 �u;rn c+�
� � O
N
EA
�n�ncomrrmroo�mo
0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N
c� � M O) c�"J m M� M O� M
� N CJ � � CO 1� CO O� O
��i) �'� �
N
N
d
C
O
N
U
c
¢
a
a
d
n
d
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
FS —Financial
Contact Person & Phone:
Bob Geurs =
266-8837 ` . '
Must Be on Council Agenda by (Date):
26-NOV-0B
Dot. Type: �SOLUTION W!$
TRANSACTION
E-Document Required: N
Document Contact: Bob Geurs
ContaM Phone: 266-8837
Date Initiated: �" � ( /
,�-NO�-0$ Green Sheet NO: 30C419�
�
Assign
Number
For
Routing
Order
Total # of Signature Pages _ (Clip NI Locations for Signature)
Approval of City Council Resolurion to purchase HRA Subordinate Note (Upper Landing Project) to assist HRA in repaying the City
Intemal Loan Fund. Note purchase is estimated at appzoximately $2,242,000.00.
Recommendations: Approve (A) or Reject (R):
Planning Commission
CIB Committee
Personal Service Contracts Must Answer the Following Questions:
1. Has this person/firtn ever worked under a conVact for this department?
Yes No
Civil Service Commission 2. Has this person/firm ever been a ciry employee?
Yes No
3. Does this person/firtn possess a skifl not normaffy possessed by any
current ciry employee?
Yes No
F�cplain all yes answers on separate sheet and attach to green sheet.
IniYiaNng Problem, Issues, Opportunify (Who, What, When, Where, Why):
City loaned funds in 2�01 from F070 Internat Borrowing Funds to assist HRA in development of the Upper Landing Project.
Advantages If Approved:
Intemal Loan Fund F070 before the end of the yeaz will be repaid approxnnately 2.24M thcough the Ciry's punc�ase of the HItA Note.
Disadva�tageslfApproved:
None Known
DisadvanWges if NotApproved:
Intemal Loan Fund will not be repaid.
7ota1 Amount of $z 242,000.00
Transaction:
Funding Source: HRA T1F Note
Financial Information:
(Euplainj
CostlRevenue Budgeted: N
Activity Number:
November 19. 2008 10:52 AM p��P �
couacil Fffe # �7j3— !a�
Green Sheet # 3064195
)LUTION
PAUL, MINNESOTA �
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
3'7
38
39
40
41
42
43
A RESO 12�1L�ei�f`HORIZING PURCHASE OF A HILA SUBORDINATE TIF NOTE
(IJPPERL ING PROJECT), SERIES 2008 TO ASSIST I-IRA IN REPAI'ING THE CITY
INTERNAL LOAN FiIND F070
WHEREAS, in Oct er 2001, the City Council (the "City Council") approved CF 01-1062
advance of $6,000,000 from Intemal Borrowing Fund F 070 (now called the `Internal Loan Fund'),
to assist HRA in the Centex Upp Landing Housing pro�ect; and
WHE12EA5, in December 20 the City Council as part of the 2008 budget adoption, requested
the IiRA to repay the City in 2008, the o standing unpaid balance of the advance made from the Internal
Loan Fund; and
WHEREAS, the current remaining bala e due by HRA to the City Intemal Loan Fund is
approximately $2,242,000; and
WHEREAS, the City Treasurer and Debt Man er recommends that the HRA issue a
Subordinated TIF Note ("HRA Note") at the interest rate 5.75%, secured by Upper Landing taac
increments, and the IIRA levy, so that City Treasurer may chase the HRA Note as an investment for
the City inveshnent portfolio and to repay the Intemal Loan d before the end of the year; and
WHERAS, Springsted Incorporated, as financial advisor the City, has advised the HRA and the
City that the HRA Note would receive an mveshnent grade credit ing if the Ciry applied for such a
rating because the Note is secured by a pledge of the HRA's tax levy,
WHEREAS, because its would qualify for a high investment gra credit rating, the HRA Note
qualifies under the provisions of Minnesota Statutes, Secrion 118A, to be p chased by the Ciry Treasurer
as an investment in the City's Inveshnent Pool; and
WHEREAS, the HRA Note will be sold to the Ciry Treasurer m order to
and satisfy an HRA outstanding obligation to Yhe City;
NOW, BE IT RESOLVED by the City Council, that the following is hereby
authorized:
Section 1.
costs of issuance
.�
1.01. Issuance and Sale and Purchase of the HRA Note. That consistent with, and sub ct to
the recrtals and other provisions of this Resoluhon, including Section 1.02, the issuance, sale and ivery
of the HRA Note to repay the Intemal Borrowing Fund are hereby approved by the City. The purch e of
the HRA Note by the City Treasurer is approved. The City Council further waives the City Inveshn
Policy to allow the City Treasurer to purchase the HRA Note.
08- ia��
44 1.02. General Terms of the Purchased HRA Note. The HRA Note is to be placed with the City
4� reasurer. The HRA Note shall bear interest at 5.75 percent the term of the HRA Note shall be not more
46 th 11.5 years from its date of issuance (see E�ibit A). The HRA Note is subject to oprional
47 redem 'on on any date. Other terms and final sizing of the HRA Note to account for accrued interest and
48 shall be ated to OFS Director, City Treasury and Crty Debt Manager. Appropriate Clty official are
49 authorized to ecute any documents in connection with the Issuance, Sale and Purchase of the HRA
50 Note.
51
52
53
54
Yeas Na s Absent Requested by Department of: /�
Bostrom � ' C�� /� //1
Carter (" � d�� �� J�! vl �t S / y�
Hams gy: �
Thune
Adopted by Council: Date
By: /
Approved by City
By: �
Adoption Cer[ified by Council Secretary gy;
By:
Approved by Mayor: Date
By:
55
2
V
d
O
a`
�
'
B
C
m
J
W
C
Q
�
N
O
Z
LL
F
N
R
9
O
a
3
N
�
2
d
2
Q
s
�
x
W
3
C
Q
N
W
V
�
W
O
O
fh
m
N
N
�
�
d W O� �[J NJ � 6> tD N Q� O O OJ 1� O N O 6) V tfJ W� in CO
� c'J c'J W N I� 61 W 6J M � W oJ m N tn 1� V r- t� 6> O(O W
�p �J CJ � O N � W(V O(V �(O (O �� 1� �(O oJ O 01
] O O N O OJ N 1� N OJ M V V I� tn O tn N� tn CO N O
-Q 1� 1�- N N CJ OJ M tn � N(O tn W I� W V O oJ (D M m c'J m
a M M(�O W N V n��('�') V(D r��� OJ ��(�O � a 6
m O O O) N N i� (O �� V th N � O W N 1� (O ln V M N
O �c�.-«�.- � � �._� � �
0 0 0 0 0 0 0 0 0 0 0
O O O O O O O O O O O
N N N N N N N N N N N
M t7 M M ch M M ch c7 c� M
r r r n r r � r � r n
a v v a v v v v v v v
M M M t"J M M M M t+J M M
'O O O O O O O O O O O O O O O O O O O O O O O N
N O O O O O O O O O O O O O O O O O O O O O O O
� (O (D t0 (O N (O (O (O CO (O (O (O (O (O (O (O (O (O (O (O (O CO
�p (D (D (O (O (O (O (O CO (O (O (O (O (O (O (D (O (O (O (D l0 (O (O N
�'thMt")t")M Mt")chM MM M M M m thM m Mc)thM c0
fl-rn �rnr�rrrir�t�rrr�t�rrr�rrrr� �
U tn N N N tn LL� tn l[l N� tn ln N� tt� tn ln � lt� tn N ln M
�-� ��-� ��-�� ��-�-� � � ��� r-�- fry
O (O cD (O
� W N �
N N N �
N N N
� � � � � � �
N O� W W W W W �N
r n r n r n r m
� �(J N � N �(1 h �
N N N N N N N N
EA
Ot7c�Mth M Mt") thM MM th M M M MthMMt")CO tn
M m W W� m T W O) �� W W Ol O> 01 �� O> � O) CD
� c0 W N N W cD N W N o� N W W oJ o3 W c0 N W N M lt�
W� N N N� u� N� N� tN �� u� �!l N �Ij tn tn N I� M
N N N N� N N N� N N N� N N N^ N N`�� O�
� r- � �.- � �.- � �.- � � �
�
N V M u� N m A a I� �� O N m N r c�0 (O N O<O N V
O �� N(V Oi (O � � ln � oJ fV N(O .- CO W tn d' (V W ch
M � i� i� N O t7 O O t+J O O) N I� V V tn W[h O) (D M�-
� V V V V M � W CO N ro N I� O��(O (O (O U N O� t0
61 OJ CO V N O OJ L(> CJ OJ (O C') OJ ln N OJ (O ` O(O N
N���� tn V V V� th M M M N N N � � c-
Vj
0 0 0 o e o 0 o e o 0 0 0 0 0 0 0 0 0 0 0 0 0
O O O O O O O O O O O O O O O O O O O O O O O
� � � � n � � � � � � n � � � � n n n r`�- n � �
l[J �fl L� �f] l(� t(j l(j �LJ Ul If� u'i tn ln In �f) l4) tn �Yi ln K� tn �Ci ln
m W M N�� M a M O> (O � N!� oJ ro�� O� I� M O I� o� o�
� W�"> �p_ i+')c0 Vl�OO�N�O W I�(DI�Nt7M ch
(V O� M Gl t0 I� O C'> CO � �!� V O O CO (O V I� M O i� � c'>
O� O p. W N I� o� N rn W� O� O� 1� N a� M O� O� M N O O
V(O I� �•V V V� d' � I� O� N CO O u� .- o� N M N N N M(O V O� I�
6�� d= t�m�M� I�O�cV � I��NC' I�OC)tO�N�00 �
N N O V�� (O (O n I� I� t� n OJ N oJ W m Ol O) O O O O r- �� OJ O M
N N N n' � �.-� «.- N
FA Vf Ky �
N
Q
m
�
�
�
O> W 00«NNM Cnvainincocorrmo�wrno
O O � � �
O O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N N N N N N
M O> M O> M 6J t+J O> M� c7 O� fh � i�l O) M O) c� W fh 6J M
� N CJ V �[J (D I� N m O `
o8-t aq t
U
N
a
0
U
d
a
a
a
v
N
a`
OB�i �9 !
�
�
_
�
�
�
o �
� �
� o �
�
��- w = �
� � �- �
� _ `� s
� � � o
e � o
m �
N � Y �
U +-
C � � � �
� � N � N
i C N s �
C) � � (0 C
3 � o �
Q >, m �, o
Q U .- � �° 3
w j M �� 9
N
C 'O U 'O N C
� V O J � O
C � N N
V m m a a�i o
� � � � � �
�
A mE a�a m
0 J � Cn � 2
N i� m O � O
O � � o� O N O
V� O O�i O O) 1 O
M O V (O O CO O
r v � �ri �ri o 0
� O) V N N O
N In `�-' In `�
N N
r °
O y
M �
N �
� C
G 'p
O �
J �
O �
N
C N
� N
O �
Q a
�
N
�
N
U
C
N
m
m
LL
F-
W
�
�
�
rn
O O O O O
O OJ O O O O
O ' � O M � W
O CO O� N I�
rn v �
47 O V �
� N N N
0
O
O
M
� N
O �
o ii N
N .4 t�i� N N '
O � � G
Y j � a LL �
X' pl F'O
� a W y Ol N �
� LL U i C � � _
"O F- N � C .
O'O �O t�n @ N fn t
_ ° �ao �UO o
� � t m � t ( �
J �? J J� J J d
+
m
O
O
N
�
H
� �
2 �
�
N �
N
� a� Z
C C y
� C 'O
� W L�L
�
C � �
�
w00
�
0
�
�
�
�
�
�
�
�
L
U
N
C
N
�.
N
a
�
�
m
0
O
N
�
@
n
�
c
a�
N
�
O� .-- W
M W
M N � N
O � O
I� c0 V
� O N
O � 4�J
N N
EA E!)
LL
F
N �
� C
� .c
� �
d d � a� / i
L � LL
3 O �
y J Z
O O m OJ
O O � �
O O N N
O O O O
O O d 7
O � � N
M N N �
N N
�
N
N
C
N
N
� �
N'
j U �