92-107 RES - Laserfiche WebLink

Home Browse Search

. . . RESOLUTION NO. 92- 107 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS, AND PROVIDING FOR THE PAYMENT OF $160,000 GENERAL OBLIGATION TAX INCREMENT (TAXABLE) NOTE, SERIES 19920 BE IT RESOLVED by the City Council of the City of Elk River, Minnesota as follows: Section 1. FindinQs: Costs. 1.1) The City has duly established Development District No.1 (the District), Tax Increment Financing District No. 10 (the TIF District), and adopted a Tax Increment Financing Plan (the TIF Plan) for the TIF District, all pursuant to Chapter 469 of The Minnesota Statutes (the Act). 1.2) The purpose of the District is to improve a development site, described in Exhibit A attached hereto, located within the District (the Property) to provide the incentive necessary for Elk Terrace Ltd. Partnership to construct senior housing to meet the City's housing needs. 1.3) It has been determined that costs will be incurred in the amount of One Hundred Sixty Thousand Dollars ($160,000) in the TIF Plan as adopted. It is necessary and desirable to the sound financial management of the City and its orderly economic development that the City issue and sell its note pursuant to the Act to provide financing for the improvement of the Property. Section 2. Authorization of Bonds. 2.1) This Council hereby determines that it is necessary and in the best interests of the City for the City to issue its General Obligation Tax Increment (Taxable) Note, Series 19920 in the principal amount of One Hundred Sixty Thousand Dollars ($160,000) (the Note) for the purpose of financing the cost of infrastructure and public improvements to the Property.. 2.2) The sale and issuance of the Note is hereby authorized pursuant to Minnesota Statutes, Section 469.178 and Chapter 475. The Council has determined, based upon advice of bond counsel, that interest on the Note cannot be excluded from gross income for purposes of federal income taxation; therefore publication of a notice of the sale is not required. It is hereby determined that not less than twenty percent (20%) of the cost of the Property, as hereinafter defined, is estimated to be received from taxes levied upon the increased value of property within the TIF District. No election under the provisions of Section 475.58 of the Minnesota Statutes is required.