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Authorizing a call for redemption of General Obligation Tax Increment Refunding Bonds (Koch/Mobil Project), Series 2010A and terminating the related Tax Increment Pledge Agreement.
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WHEREAS, on February 25, 2010, the City of Saint Paul, Minnesota (the “City”), previously issued $2,670,000 in General Obligation Tax Increment Refunding Bonds (Koch/Mobil Project), Series 2010A (the “Series 2010A Bonds”); and
WHEREAS, the proceeds of the Series 2010A Bonds were used to refund the City’s General Obligation Temporary Refunding Bonds, Series 2007B, which refunded the City’s General Obligation Temporary Bonds, Series 2004C, the proceeds of which were used to defray the expense of public costs of redevelopment of the Koch Mobil Tax Increment Financing District (the “TIF District”); and
WHEREAS, on February 11, 2004, the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) approved the creation of the TIF District and adopted a tax increment financing plan therefor; and
WHEREAS, the Series 2010A Bonds were issued pursuant to an award resolution adopted by the City Council of the City on February 10, 2010 (the “Bond Resolution”) and the Bond Resolution also authorized the City to enter into the Tax Increment Pledge Agreement, dated as of February 1, 2010 (the “Pledge Agreement”), by and between the City and the HRA; and
WHEREAS, under the terms of the Bond Resolution, the Series 2010A Bonds are subject to optional redemption at a price of par, plus accrued interest to the date of redemption from and after March 1, 2020; and
WHEREAS, the HRA has informed the City that the HRA has collected sufficient tax increments to prepay and fully redeem the outstanding Series 2010A Bonds; and
WHEREAS, on the date hereof, the HRA adopted RES No. 24-1501, approving the decertification of the TIF District and amending the HRA’s annual debt service budget to account for the redemption of the Series 2010A Bonds; and
WHEREAS, the Bond Resolution authorized the City to terminate or reduce the tax increments pledged to the payment of the Series 2010A Bonds, change, modify, add, or delete the Pledge Agreement as appropriate, and also comply with the provisions of the Pledge Agreement so long as the Series 2010A Bonds remain outstanding.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows:
1. Call for Redemption. The optional redemption of the Series 2010A Bonds on December 1, 2024, or any date thereafter, is hereby approved and the authority to take the necessary action for the redemption of the Series 2010A Bonds, including publication or posting of a notice of redemption, is hereby delegated to the Director, Office of Financial Services and the City Treasurer, or their proper designees.
2. Termination of Pledge Agreement. The Director, Office of Financial Services and the City Treasurer, or their proper designees, are authorized to take any necessary action to terminate the Pledge Agreement following the prepayment and redemption in full of the Series 2010A Bonds.