Title
Approving the issuance of up to $1,850,000 of Tax Increment Refunding Revenue Note, Series 2017-6.
Body
WHEREAS, pursuant to C.F. No. 97-1190 adopted by the City Council of the City of Saint Paul (the “City Council”) on September 24, 1997 and Resolution No. 4229 adopted by the Port Authority of the City of Saint Paul (the “Port Authority”) on August 28, 2007, the Port Authority has previously issued its $2,685,000 Tax Exempt Tax Increment Revenue Bonds (River Bend Project - Lot I), Series 2007-5 (the “Series 2007 Bonds”) to provide funds which were used to refund the Port Authority’s Tax-Exempt Tax Increment Revenue Note (River Bend Project) Series 2006-1 and to provide additional funds to finance tax increment eligible costs incurred with the development of the River Bend Redevelopment Tax Increment Financing District (the “TIF District”); and
WHEREAS, the Series 2007 Bonds were issued pursuant to an Indenture of Trust, dated as of October 1, 2007, between the Port Authority and U.S. Bank National Association, as trustee (the “Trustee”); and
WHEREAS, the Series 2007 Bonds were secured and paid from tax increments generated by Lot 1 of the TIF District; and
WHEREAS, as of the date of this resolution, the Series 2007 Bonds are outstanding in the principal amount of $2,165,000; and
WHEREAS, the Port Authority has been advised by its municipal advisor, PFM Financial Advisors LLC (formerly known as Public Financial Management, Inc.), that the outstanding Series 2007 Bonds may be refunded on a current basis in order to achieve an expected debt service savings of at least $400,000 and 20%; and
WHEREAS, it is now proposed that the Port Authority issue its Tax Increment Refunding Revenue Note (River Bend Project - Lot 1), Series 2017-6 (the “Note”) for the purpose of currently refunding the Series 2007 Bonds; and
WHEREAS, the Note will be payable solely from amounts pledged thereto under the loan documents relating thereto and the Note will not be an obligation of the City and the full, faith and credit and taxing power of the City are not pledged to the payment of the Note; and
WHEREAS, the Note will not be a general or moral obligation of the City.
NOW THEREFORE; in consideration of the foregoing, it is hereby resolved by the City Council of the City of Saint Paul (the “City Council”) as follows:
1. The issuance of the Bonds in an aggregate principal amount not to exceed $1,850,000 for the purposes described above are hereby approved, subject to the establishment by the Port Authority of the exact detail, including principal amount, maturities, interest rates, discount, redemption features and debt service savings.
2. In accordance with Laws of Minnesota 1976, Chapter 234, the City Council hereby consents to the issuance of the Note, the exact details of which, including but not limited to, provisions relating to the principal amount, maturities, interest rates, discount, redemption, are to be determined by the Port Authority, pursuant to a resolution adopted by the Port Authority.