HomeMy WebLinkAbout20101004 - VIII-B-4City Council Memorandum
To:Mayor Hicks & City Councilmembers
From:John Hinzman, Community Development Director
Date:October 4, 2010
Item:Resolution: HEDRA Issuance of Bonds -Hudson Manufacturing Acquisition
Council Action Requested:
The City Council is asked to adopt the attached resolution granting consent for the Hastings
Economic Development and Redevelopment Authority (HEDRA) to issue taxable limited
obligation bonds for the acquisition of the Hudson Manufacturing Building. HEDRAwould
repay the bonds with its current levy proceeds.
Background Information:
HEDRA and Hudson Manufacturing entered into an agreement in July to purchase the existing
nd
Hudson Manufacturing building on 2Street, west of the TH 61 Bridge. Hudson will move its
operation into the vacant Intek building located on Progress Drive. HEDRA is conducting its due
dilligence towards closing on the property in December.
Financial Impact:
HEDRA currently issues an HRA levythat generates approximately $300,000 annualy.
Proceeds from the current levy would be used to satisfy the debt.
Advisory Commission Discussion:
HEDRA is scheduled to take action on the bond issuance at its November meeting.
Council Committee Discussion:
N\A
Attachments:
Resolution
EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE
CITY OF HASTINGS, MINNESOTA
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
Hastings, Minnesota, was duly held at City Hall on Monday, the _____ day of _________, 2010,
at ____ o'clock p.m.
The following members were present:
and the following were absent:
Member ___________________ then introduced and read the following written
resolution and moved its adoption:
RESOLUTION NO. ___
A RESOLUTION PROVIDING FOR APPROVAL FOR THE
HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY
TO LEVY A TAX PURSUANT TO
MINNESOTA STATUTES SECTION 469.033
The motion for the adoption of the foregoing resolution was duly seconded by member
_______________, and upon vote being taken thereon the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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RESOLUTION NO. ___
A RESOLUTION PROVIDING FOR APPROVAL FOR THE
HASTING ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY
TO LEVY A TAX PURSUANT TO
MINNESOTA STATUTES SECTION 469.033
WHEREAS, pursuant to Minnesota law, the City Council of the City of Hastings (the
"City Council") created the Hastings Economic Development and Redevelopment Authority (the
"Authority"); and
WHEREAS, pursuant to such Minnesota law the City Council granted to the Authority
all of the powers and duties of a housing and redevelopment authority under the provisions of the
Minnesota Statutes, sections 469.001, et seq. (the "Act"); and
WHEREAS, the Authority proposes to issue Taxable Limited Tax Obligation Bonds (the
"Bonds") to finance the acquisition of riverfront property currently owned by Hudson Sprayer
Company; and
WHEREAS, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a
tax upon all taxable property within the City to be expended for the purposes authorized by the
Act (the "HRA Levy"); and
WHEREAS, the Authority proposes to pledge to the payment of the Bonds the HRA
Levy; and
WHEREAS, such HRALevy shall be an amount approved by the City Council of the
City, but shall not exceed 0.0185 percent of taxable market value; and
WHEREAS, the Authority has and will annually file its budget in accordance with the
budget procedures of the City; and
WHEREAS, based upon such budgets the Authority will levy the HRA Levy in
accordance with the Act and in such amount it deems necessary and proper;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hastings,
Minnesota:
1.The City Council hereby consents to the Authority levying in 2010 and for such
period as the Bonds are outstanding the HRA levy in the amount authorized pursuant to the Act.
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Adopted by the City Council for the City of Hastings, Minnesota this ____ day of
_________, 2010.
___________________________
Mayor
ATTEST:
___________________________
Administrator
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STATE OF MINNESOTA)
) ss.
COUNTIES OF DAKOTA)
AND WASHINGTON)
I, the undersigned, being the duly qualified and acting Administrator for the City of
Hastings, Minnesota (the "City Council”), do hereby certify that attached hereto is a compared,
true and correct copy of a resolution granting approval by the City Council for the Authority to
levy taxes pursuant to Minnesota Statutes 469.033, duly adopted by the City Council on
________________, 2010, at a regular meeting thereof duly called and held, as on file and of
record in my office, which resolution has not been amended, modified or rescinded since the date
thereof, and is in full force and effect as of the date hereof, and that the attached Extract of
Minutes as to the adoption of such resolution is a true and accurate account of the proceedings
taken in passage thereof.
WITNESS my hand this ____ day of _________________, 2010.
_____________________________
Administrator
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