3.5. EDSR 11-13-2000 - Laserfiche WebLink

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ek,r • y Item #3.5. City of MEMORANDUM Elk ,. River TO: Economic Development Authority FROM: Lori Johnson, Finance Director DATE: October 23, 2000 SUBJECT: Consider Resolutions Approving the Execution of a Tax Increment Pledge Agreement Respecting Payment of 2000A Tax Increment Bond and 2000D Tax Increment Refunding Bond The City Council recently approved resolutions to issue two tax increment bonds. These bonds relate to tax increment financing districts approved by the Economic Development Authority; therefore, tax increment pledge agreements must be approved by the EDA. Attached are resolutions authorizing the execution of tax increment pledge agreements for the two bond issues. • The first bond issue is an $800,000 G.O. Tax Increment Bond, Series 2000A, that will finance street improvement associated with TIF 19. The second issue, a $510,000 Taxable G.O. Tax Increment Refunding Bond, Series 2000D, will refund the 1989B Tax Increment Bonds (TIF 6, Mork Clinic) and the 1990A Tax Increment Bonds (TIF 7, Americlnn). This refunding results in a net present value savings of $30,298.18. The attached tax increment pledge agreements provide that the tax increment received in TIF districts 6, 7, and 19 be dedicated to payment of the principle and interest on the associated bonds. Action Requested The Economic Development Authority is asked to approve the attached two resolutions. 1. Resolution 00- Approving and Authorizing Execution of a Tax Increment Pledge Agreement Respecting Payment of$800,000 General Obligation Tax Increment Bonds Series 2000A. 2. Resolution 00-_Approving and Authorizing the Execution of a Tax Increment Pledge Agreement Respecting Payment of$510,000 Taxable General Obligation Tax Increment Refunding Bonds Series 2000D. s:\eda\meetings\tibonds.doc 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD & Phone (763) 441-7420 • Fax (763) 441-7425