Title
Approving the levy of a Special Benefits Tax pursuant to Minnesota Statutes, Section 469.033, Subdivision 6 by the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the Authority) has all the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 to 469.047 (the HRA Act), including without limitation the power to issue bonds for its corporate purposes; and
WHEREAS, Section 469.033, Subdivision 6 of the HRA Act permits the Authority to levy and collect a special benefits tax of up to .0185 percent of taxable market value in the City (the Special Benefits Taxes), such tax to be levied upon all taxable real property within the City, and to be expended for the purposes authorizes under the HRA Act; and
WHEREAS, the Authority intends to issue its Limited Tax Bonds, Series 2010 (The Lofts at Farmers Market), in the aggregate maximum principal amount of $9,000,000, a portion of which may be issued as taxable bonds and a portion of which may also be issued as Build America Bonds (collectively, the Bonds), in order to finance the costs of acquisition, construction and equipping of a market rate rental housing facility to be owned by the Authority and located at Fifth and Wall Streets in the City of Saint Paul; and
WHEREAS, the Bonds will be secured by a pledge of the Authoritys Special Benefits Taxes to be levied by the Authority with the consent of the City Council; and
WHEREAS, the Authority has covenanted to adopt an annual budget each year that the Bonds are outstanding that provides for the levy of Special Benefits Taxes to pay debt service on the Bonds, such levy to be in an amount equal to 105% of the debt service due and payable on the Bonds on August 1 of that budget year and February 1 of the following calendar year, and to submit such budget to the City for approval pursuant to Section 469.033, Subdivision 6 of the HRA Act; and
WHEREAS, in each year while the Bonds are outstanding, the Authority will file its annual budget with the City in accordance with City budget procedures.
NOW, THEREFORE, Be It Resolved by the City Council (the City Council) of the City of Saint Paul as follows:
1. The City Council of the City hereby approves the levy by the Authority of Special Benefits Taxes to pay debt service on the Bonds, such levy to be made in each year the Bonds are outstanding, commencing with the levy year 2011 for collection in 2012, in an amount equal to 105% of the principal and interest due on the Bonds on August 1 of the taxes collection year and February 1 of the following year, but not to exceed the maximum amount of .0185 percent of taxable market value in the City.
2. In each year while the Bonds are outstanding, the City Council will accept and approve the budget filed by the HRA in accordance with the terms of this Resolution and Section 469.033, subdivision 6 of the HRA Act.