HomeMy WebLinkAbout13.F.1. Scott County HRA Bond Refundings (River City Centre)-Res. No. 6440 and 6441
coif 0.
CITY OF SHAKOPEE COtJNCIL -/Jfl
Memorandum
TO: Mayor and City Council
Shakopee Economic Development Authority
FROM: Mark McNeill, City Administrator
SUBJECT: Scott County HRA Bond Refundings (River City Centre)
DATE: June 13, 2006
INTRODUCTION:
TheEDA and City Council are asked to take actions relating to proposed refunding of
three bond issues which financed the construction of the River City Centre building.
BACKGROUND:
The Scott County HRA and City of Shako pee entered into a partnership in 1997 to fund a
redevelopment proposal that became known as River City Centre. Two buildings joined
by a skyway were constructed, the upper two floors of which contain 52 senior
, apartments, and a first level with retail space. A master tenant was secured for the retail
space, and has since been operating that part of the development.
There were several bonds that were sold to finance this venture, and three ofthose are
eligible to be refunded at this time. They are:
. Series A - Housing Development Revenue Bonds (Guaranteed by the City, but
paid offthrough rental income from the apartment development).
. Series D - Taxable Tax Increment Development Bonds (A taxable portion of the
retail space).
. Series' E - Tax Increment Development Bonds (Tax exempt. for retail space).
Springsted was hired by the Scott County Housing.and Redevelopment Authority to
analyze these bonds, and has determined that there can be savings as a result of
refinancing these bonds. On June 5th, a Development Committee made up of elected and
appointed officials from the HRA and City, met with Kathleen Aho of Springsted to
review the proposal. A summary of her findings, including estimated present value
savings, is attached in the letter dated June 6th. Information was provided to the rest of
the Council at its meeting of June 7th.
In essence, this appears to be the best opportunity to refinance these bonds. While the
final numbers were not available at the time that this memo is being composed, it is safe
to, say that the annual payment will not change, but what will happen is that through the
interest savings, the principle can be reduced, so that the number of years of bond
payments will be reduced. It should be noted that these bonds can be refinanced only
once, and it is the recommendation of Springsted, and concurred by the Development
Committee, that this is the time to do that.
BUDGET IMPACT:
Again, it is not expected to reduce the annual payments. The City is guaranteeing these
bonds, and the assuming that revenues remain positive, there should be no impact on City
taxpayers.
RELATIONSHIP TO VISIONING:
This'supports Goal E - Financially Strong, and Strategy 10, "Insure the City's Fiscal
Health".
RECOMMENDATION:
There will be several actions which will be necessary for the EDA and City Council to
approve, so that this bond refunding can take place. That information is attached, as
recommended by Springsted.
ACTION REQUIRED:
EDA:
Offer Resolution No. 2006-03, Authorizing the execution and delivery of an amendment
to a tax increment pledge agreement and move its adoption.
CITY COUNCIL:
Offer Resolution No. 6440, Acknowledging the issuance by the Scott County Housing
and Redevelopment Authority of its Governmental Housing Development Refunding
Bonds (City of Shako pee Unlimited Tax General Obligation), Series 2006 and the HRA's
pledge of the full faith and credit of the City of Shako pee thereto and move its adoption.
And
Offer Resolution No. 6441, Authorizing the execution and delivery of a General
Obligation Tax Increment Guaranty Agreement, guarantying the payment of debt service
on the Scott County Housing and Redevelopment Authority's Taxable Tax Increment
Development Revenue Refunding Bonds (City of Shakopee, Minnesota, General
Obligation - River City Centre Project), Series 2006D and Tax Increment Development
Revenue Refunding Bonds (City of Shako pee, Minnesota, General Obligation - River
City Centre Project), Series 2006E and an amendment to a related tax increment pledge
agreement and move its adoption.
Mark McNeill
City Administrator
MM:th
,<
. Springsted Incorporated
.:-
380 Jackson Street. Suite 300
~J Springsted Saint Paul, MN 55101-2887
Tel: 651-223-3000
Fax 651-223-3002,
www,springsted,com
June 6, 2006
Mr. John Schmitt, Mayor Mr. Mark McNeil, City Administrator
1015 South Main Street 129 Holmes S1. South
Shakopee, MN 55379 Shakopee, MN 55379-1328
RE: Scott County HRA Refundings
Dear Gentlemen:
This letter is being provided to you on behalf of the Scott County Housing and Redevelopment Authority. In 1997,
the City and the Scott County HRA collaborated to secure the financing for the River City Centre. Since that time the
facility has been built and the expected revenues have been generated to support the debt service payments. At
'. ."
this time, the HRA has the opportunity to refund the related transactions and reduce debt service costs. In order to
do so, several actions need to be taken by the City Council, the City EDA and the Development Committee (as
created in the River City Centre Development Agreement between the City and the HRA).
The Development Agreement creates a Development Committee comprised of the Mayor, the President of the EDA,
the City Administrator, the Chairman of the HRA and the Executive Director of the HRA. Under the provisions of the
Development Agreement, the Committee must meet to approve any action that would cause an optional redemption
of the outstanding bonds. By its very nature, a refunding relies on an optional redemption of the outstanding bonds.
The Development Committee met Monday, June 5 and reviewed the proposed refundings of the following bond
issues:
Issue Est. PV Savings
Housing Development Revenue Bonds, Series 1997 A $201,133
Taxable Tax Increment Development Bonds, Series ' $98,742
19970
Tax Increment Development Bonds, Series 1997E $107,590 .
After a discussion of each of the proposed issues, the Development Committee moved approval of the optional
redemptions. A copy of their resolution is attached to this letter.
Public Sector Advisors
~
;..
The City Council and the EOA also will need to act in order for the refinancings to proceed. Since the City provided
its general obligation pledge to each of the three issues and the EOA pledged some tax increment to the tax
increment bonds, each entity will have to act to transfer those characteristics to the respective new issues. Since
the primary purpose of the refundings is to reduce debt service costs, no changes to the basic business agreements
between the City and the HRA are being proposed, just facilitation of achieving savings. A full report on the
proposed transactions will be provided for the City and EOA's review prior to their meeting on June 20.
Thank you in advance for your consideration.
Sincerely,
~dL
Kathleen A. Aha, CIPFA
President
cc: William Jaffa
Enc.
.
,~'
DEVELOPMENT CQMMITTEB RESOLUTION
WHEREAS, that certain Development Agreement (the "Development Agreement") dated
as of October 1, 1997~ between the Scott County Housing ,tnd Redevelopment Authority (the
"Authority"), the City of Shakopee, Minnesota (the ~'City'") and the Economic Development
Authority for the City of Shakopee Minnesota (the UEDA") created a Development Committee
(tbe "Committee~') comprised of the Mayor and City Administrator of the City, the President of
the BOA and the Chair and Executive Director of the Authority to consider and approve certain
actions relating to the Project, defined therein, and specifically to approve the optional
redemption of the Series A, D or E Bonds, all as described therein; and
WHEREAS, the Committee met on June 5, 2006 regarding the Authority's proposal to.=,:
refund the Series A Bonds, Series D Bonds and Series E Bonds, and in that connection to ~
optionally redeem such bonds on the first date on which they are subject to redemption;
NOW TIlEREFORE, BE IT RESOLVED BY THE DEVELOPMENT COMMITTEE,
that the refunding of the Series A. D and E Bonds as proposed by the Authority and the resulting
optional redemption of such bonds is hereby approved for all purposes of the Development
Agreement
Dated as of June 5, 2006. ~
( Vu12-1IU
-
ity of Shakopee
d ' ~
President, Shakopee BDA
~~~.I~
EXeC1!tive Director, Scott County lIRA
3454129.1
JUlle14,2006
Mr.John Schmitt, Mayor
Members. City Council
Mr. Matt Lehman. President
Members, 'Economic Development Authority
Mr. Mark McNeil, City Administrator, EDA Execl.ltiveDi.rector
129 HolmesSt. South
Sl1akopee. MN 55379.;1328
RE: .. Scott County HRA Refundings
Dear Gentlemen:
This latter is' being provided to . you on behalf of the Scott County . Housing and Redevelopment Authority. .11'1 1997,
the City and the SoottCounty HRAcollaborated to secure theftnancing for the River City Centre. Sincethattime the
facility has been built and. the expected revenues. have been generated to support the debt service payments. At
thistime,theHRA has the opportunity to. refund the related transactions and reduce debt service costs.
Thefollowing isslIesare proposedJo be refunded:
issue EstPv Saliings
HOllsing Development RevenUe Bonds, SerieS 1997A $201.133
Taxable Tax Increment OevelopmentBonds. Series $95;109
19970 .
Tax Increment Development Bonds, Series 1997E $102,393
Asyou know from prior correspondence, the Development Committe~established under the 1997 d6cumentsand
comprised of the. Mayor, the' President of the. EDA, the City, Admiflistrato~,. the Chairman .of the HRAand the
Executive Director oftheHRA, has met and approved the. optional redemptionsoHheaffected 1997 bonds.
The City Council andtheEDA wUlalso need to actin order for the refundings to proceed, Since the City provided its
general obligation pledgetoeachoHhethreeissues aoothe EDA pledged some tax increment to the tax increment
bOnds, each entity. wiD have to act to transfer those . characteristics to the respective. new issues. The . primary
purpose of the refundings is to reduce debt service costs and no changes to the basic Dusiness agreements
between the City and the .HRA are beingproposed,just facilitation.ofoohieving savings. A .setof schedules for each
I
Scott County HRA.Refundings
June 14,. 2006
Page 2
of the proposed.transactionsi$ attaciledand summarizes the expected outcomes. In the case oftl'le Housing
DevelopmentBonds, Series 1997A,.thestructureis intended' to produce level savings of approximately $15,000 per
year. The two tax ll'lcrernent bonds, Serles 1997D ana Series 1997Earestructuredtoadvancethe payment of
principal as much as possib!e.Asthe sciledulessl1ow,the clIrrentstructure.eliminatesal.1 ofthefinal2025 maturity
and. much. of the 2024 maturity. Depending 'on the actual rates. bid on the bond sales, further adjustments may be
made to secure the desired outcomes.
Requested City Council Actions:
There are' two resolutions presented for Councilcollsideration. The first acknowledges the issuance of the housing
refunding bonds and the continued pledge of the City's . general obligation, . The second .a.uthorizes a. "General
. . . . -0 .. _ _ .
Obligation T axlncrementGuafanty Agreement" and an amendmentto the affected tax increment pledge, Theeffect
oftha resolutions is to permit the continued use of the City's generalobligati.on to secure thetl1ree bond . issues and
to continue the pledge of tax increment to the . two tax . increment bond' issues. Tax increment . in the. amount of
$25,298 is currently being usedinsupportofthe bonds.
ReauestedEDA Actions:
A single resolution is presented for EDA consideration. Ifauthonzestl1eexecutionand delivery of tile amendmenUo
the existing tax increment pledge agreement
The referenced resolutions, the Guaranty Ag.reement and. the Amendment. to the Tax . Increment Pledge Agreement
are attached for your review.
I will be' in . attendance at your meeting on June 20 in the event there are questions regarding' the proposed
transactions. If questions arise prior tothattime, please. feel free to calleitherHRA Executive Director William Jaffa
or myself.
Thank you 'in advance. foryourcol1sideratlon.
Sincerely,
.~....a.
Kathleen A. Aho,CIPFA
President
cc: William Jaffa
Ene.
$3,270,000
Scott County Housing and RedevelopmentAgency, Minnesota
G. O. Housing.DeveJopment Revenue. Refunding Bonds,Series200e'
Full Net Advance Refunding. of, Series 1991A
, ,
Preliminary. Feasibility, Summary
Dated 07/01/20061 Delivered 07/01/2006
Sources Of Funds
Par Amount of. Bonds................ ........ ...,..... ,.................................... .......................................... .........................;.........,..... $3,270,000.00
Transfers from Prior Issue DBA Funds................................ ...................................... ................ ...w................................ 272;460..00
Transfers from' Priorlssua Debt Barvica Funds............ ...,.;....;....;.... ......................;. ...............;............."..........;............... 18,B36.00
Total. Sources"/Io"'.",,..,,"'....~._"''''.+'''...'f*H''lI:...'.U.H..Hfi+'f'''*..,.,.+ ...lI..+:......,,,.'U,,....,,;,+.u.."',...~'-."'ff."'H'."'~Uh~.~..."',...fi.....*."io,,.:...;.;_....."u..;.,...:.,,+~.....~~'H:,,"'....,..H,"-~t*.ull:-.,;~....~u..~ $3,621,296.00
Uses Of Funds
Deposit 10 Net Cash Escrow Fund....................;........................;......;.................................. ..................... ..........,. .~~......... 3,272.670.68
Deposit to'Debl Service ReserveFund (DSRF);................................................................;.. ...;..........;............................. 256,037.50
Costs of Issuance...... ........ .......... ...... ......,...,... ....... .... .,........,...... ....., ..... ........................ .... ..... ........ ..;.........;......... ......... SO/OOO.OO
T ot<l.l Untlerwriter'sDiscount (1.225";,,)...,.......... ....... ..,...,. ........... ;.;,..~..... ..;....... ........ ..;......;. ...;.........., ...,... ........ ........., ..... 40,057;50
, Roum:liol1 Amouot..................................................;...............................................;;.;; ;....................... '" .............;.........,.... 2.530.32
T<;Jtal':l1.8'e$....~".........\I"........*....*H*.._~*'I-"....ll......t..ll...,.....H'..,..."........".,,:..............j~........._..,"'..''''.,.'u*~N"U.j-II......O'..:......":........-..O;......"..,....,,.!l.."!'...t...,...*j>,.:*t...*......u".....,......."'",,<<:.:......,.............. $3;621,296.00
ISSUES REFUNDED AND CALI.. INFORMATION
Prior Issue Call Price..... ;...................... ........ ................. .............. ........................................ ................ .................. .......... 100.000"/"
Prior Issueeall Date......... .....................;.................;;..........................:.. .....;, ......;..............,......... ..................................... 2/0112008
SAVINGS INFORMATION
Net Future. V alueBenefft..;........ ............. .;......... ...........; ......,.. ..,......., .... on. ....... .....> .;...;.... ............... .,.... ..........;.;..,. ;......... $296,234.86
NetPresent Value Benelit............ ............... .,.. ........ ..... ........ ......... ....... ............... ...........;,..... ....; ............... .;. ........... ...... ... $.201,133.34
Net PV Benefltl $3,549,71i'.07PV Refunded Debt Service.......................................................................... .................. 5.666%
aONDST.ATISTICS
Average Ufe... ...,........... .,.............................................,........,................................................... ..... ," ....... ............... ........... 12.453 Years
Average Coupon. ..... ......;.... ......m. ........ ..... ...... ......... ........................ ......... ............... ..... .... ....... ...................... .... .............. ... 4.24i7690%
Net .Interest Cost (NIC)...........> ........... .............".. ................................. ....................................... .."........... ....................... <t34Q1350"J"
True InierestCost (TIC)........................ ..... .......,.................... ...................... ................. .......... ................,.......................... 4.3577635%
Page 1
s:rk$ 20M IIcOY.'!7,f,1Ift.4 !Sf{W,!U; f't./f{/,Ofifi ! 6'/17/2/10(; I iN!) AM
~ Sprlngsted
$3,270,000
Scott County Housing and RedevalopmenfAgancy, Minnesota
G. O. Housing Development Hevenue Refunding Bonds, Series 2006
Full Net Advance Refunding of Series ,1997A
Debt Service Comparison
Date Total P+I DSR Net New DIS Old NetDIS Sailings
0210112007 148.684.38. (6,3oo.34) 142,3S4.t)4 225,459.74 $3,075.70
02101/2008 222.332.50 (10,814.00) 211,518.50 227.239.74 15,721.24
0210112009 229,002.50 (10.814.00) 2113,188.50 233,789.74 15,601.24
0210112010 230,302.50 (10,814.00) 219,4$8.50 234,624.74 15,136.24
0210112011 231.365.00 (10,814.00) 220,551.()0 235,214.74 14;663.74-
0210112012 237,240.00 (10,1$14.00) 226,426.00 240,559.74 14,13$.74
02101/2013 23UIBO.OO (10;814.00) 226,866.00 240;309;74 13.44$.14
0210112014 237.867.50 (10,a14J)O) 221,053.50 244,754.74 17,701.24
02/0112015 237,797.50 (10,814.00) 226,983,50 243,634.74 lQ,65t.24
0210112016 242,465.00 (10,814.00) 231,651.00 247,191.24 15,546.24
02f01/2017 246,665.00 (10,814.00) 235,851.00 249,974.74 14,123.74
02/01/2018 240;387.50 (10,814.00) 229;$73.50 247,217,24- 17,643.74
02101/2019 244,032.50 (lO,SH.OO) 233,218.50 249;192.24 1.5,973.74
0210112020 247,185.00 {10,S14;(0) 23G,Sn.QO 250,632.24- 14;261.24
0210112021 244,835.00 (10,lH4,OO) 234,021.00 251,537;24 11,516.24
OZ/01 f2022 252.275.00 00,814.(0) 241 ;461;00 256.862.24 15,401.24
02101/2023 253,981.50 llO.814.(0) 243,173.50 256,381.00 13,207.50
0210112024 250,172.50 (10,814.00) 239,358.50 255,362.24 16.000;74 I
02/0112025 256.037.50 (1o,s14.00) 245,223.50 258.806.00 13,582.50
02101/2026 251,137.50 (1{),814.00) 240,323.50 256;443.50 16,120.00
0210112027 255,902.50 (266,851.50) (10,949.00) (13,916.50) (2,967.50)
Total $4.997,354.38 (478,617.84) $4,518,736.54 $4,891,277.08 $372,540.54-
PVAnalysisSummary(Netto Net) I
I
Nlill FVCashnowSavings.......................~.............................,............ ;................. ....... ....................... ...................... 372,$40.54 j
I
GrosS PV Debt Service Savings.... .... .... ..;........ .... ..,............. ......... ..... .......... ....... ............. ...... .... .......... .................... 279.717,07 l
Effects. of changes in DSRlnvastments........... ....... ............. .................. ................. ..., .... ......... ...... ........ ........;........ (2,278.05} I
NetPV .Cashflow Savings@4.224%IBoncl Vleld)............... ........................;... ................................;............ ........,.. 277,439.02
Transfers. from Prior Issue Debt Service Fund............. ............. ..................,. ................................................... ....... (l8,836.(0)
Contingency orR<;lunding .Amount...... ................ ..;..........;,. ......... ........;... .....;...........;.................................;.......... 2.530.32
Net Future Value, Benefit...... ........................................... ............... ..... ................................................,. ..................... $296,234..86,
NetPt/ilsent Value Benefit....................... ....... ......................... ..................... ..................................... ......................$201 ,133;34
Net PV Benefit! $1,645,981.63 PV Refunded 12.220%
NetPV Benefit 1$3.549,717.07 PV . Refunded Debt Service................................ .............................. ............. ......... 5.666%
Net PVBenefit / ' $3,155,000 . Refund/ild Principal........ ..... ............................................ ....... ...... .......... ............ ....... 6.37!;O,l.
Net PV Benefit 1 $3;270,000 Refundll'll:! Principal........................;..,......, ......,......;......;...;.,... ....;.... .........;........ ....... 6.151%
R~ful'ldingBondfnform.ati()n
Refunding Dated Date... ....;..;.......;..;...........;..... ....m...... ,... ;,..;.;........;..........;..........".. ............. .........,......,...,..,.....~..~. 7/0112006
R/ilfundin~fDelivery, Date........ ......... ..,.... .................... ..... .... ......,;. ..........................................,....,.......;.. ......,...... ...,. 7/ot/200S
Paga2
,,,,,,,,,,,1<<'1.)(; 14;( WillA lff<1j ! SIN.;lI7l1/KltlW:
j;~ Springsted
$3<,270,000
Scott County Housing and RedeveloprnentAgency, Minnesota
G.O. Housing Development Revenue Refunding Bonds, Series 200e
Full Net Advance Refunding of Series 1991A
Debt Service Schedule
Date Principal Coupon interest Total 13+1
02l01/2fJ07 70.000.00 3.()$O% 78.684.38 148,684.38
02101/2008 90.000.00 3.7000/.. 132,332.50 22.2.332.5Q
02/01/2009 100,000.00 3.700% 129.002.50 22.9,002.50
02101/2010 106,000.00 3.750'% 125,302.50 230.302.50
0210112011 110,000.00 3.750% 121,365.00 231,36e;.oo
02101/2012 120,000.00 3;800% 117.,240.00 237,240;00
02101/2013 125,000.00 3.850% 112,680.00 237.680.00 I
02101/2014 1S0,OOO.ao 3.900% 107,867.50 237,867;50
02l01f2015 135,000.00 3.950% 102,797.50 237,797.50
0210112016 145,000.00- 4.000% 97,465.00 242,465.00
02101/2017 155;000.00 4.050% 91 ,665.00 245,655.00
02/01/2018 155,000.00 4.100% 85,387.50 240,387.50
02101/2019 165,000.00 4.,150% 79,032.50 244;0$2.50
0210112020 175,000.00 4.200% 72.1.85.00 247,185.00
02101/2021 180,000.00 4.200% 64,835,00 244,835.00
0210112022. 195,000.00 4.2.50% 57,2.75.00 252,2.75.00
0210112023 , 205,000.00 4.$00% 48,981.50 253,987.50
0210112024 210,000.00 4.350",k 40,172.50 250,172.50
0210112025 225,000.00 4.400% 31,031.50 2.56,031.50
02101/2026 230,000.00 4.450% 21;137;$0 251,137.50
02101/2027 245,000.00 4.450% 10,902.50 255,902.50
Total $3,270,000.00 . $1,727,354.38 $4,997,354.38
YieldSlallstics
Bond Year Dolial'$,...........;........ ..... ,....... ........................ ...... .... ...... ............ ......;.................;..;.;.. .......;.....;........ ....... ........;... $40,122.50
Average Ufe............................. ............ ............... '" .... ....... .......... ............ ..............;. .................... ......... ..;........... ............ ....; 12.453 Years
AvsrageCoupon,..................... ........ .... ............ ....... .... .......... .............. ..... ........ ........................... .....,............. .............:. ...... 4.2417590%
Net Interest Cost (NIC)............,...................... ;... ... ..........,......,.. ...... .;;.....,........,.. .;.................;........... ..................,...........,. 4.3401360%
True. InterestCos! (TIC)......... ..........., ......... .............. ............... .....;.,.... ...................................... ..................... ............ ....... 4.3577635%
Bond Yield torArbitragePurpqses...... .,....................,......................., ...,....... ..................... ........... ............... .....,.... ............. ,. 4.2236007%
AlIlncll./SiveCost (AIC)......;,.;... ..,........ .................. ...;..... ..... ........ ........... .... .......;.,.....;. ..... ......... ............... ..;......;. ..... .......... 4.5286537%
IRS Form 8038
NetlnteresfCost..... ........ .;..... .;m .;.. ......... :...... ...;. ...... ..... ........................ ................. ...................... ,.... ................ ...... .......... 4.2417690% ,
Weighted Average. Maturity....,;..................."... ......,........... .... ,...;...;......... .i.i.;.;,..,.;;...,............,. .............;..........,. .."........... 12.453 Years
PageS
Si#it,':/:t(!(J,,'IJ,,( lil//1A fl~"A ! shw;u:nIH/tI.IY:/til'f;/Z(JOti ! 6:IfJAM
1"#"0""". " .
--.-w(.A1;: d
~".
$3,495,000
Scott County.Housing"and Redevelopment Agency, Minnesota
Housing DevelopmentRevenue Bonds,$eries 1997A
Debt Service To Call And To Maturity
Date Refunded Interest to D1STo Call Principal coupon Interest Refunded D!S
Bonds Call
08/01/2006 . 82,8t1.25 82,811.25, . . 82,$11.25 82,81:1,25
02/0U2007 70,000.00 82,811.25 152,811.25 70,000.00 4.600% 82,811.25 152,811.25
08/01/2007 . 81,201.25 81,201.25 . . 81,201.25 8'1,201.25
02/0112008 3,085,000.00 81,201.25 3,166,201.25 75,OQO.00 4;600% 81,201.25 156,201.25
0810112008 . . . . 79,41$.25 19,476.25
02/01/2009 . . . 85,000.00 4;000% 79,476.25 164,478.25
0810112009 . . . . . 77,393.75 77,$3.75
02/0112010 . . . 90,000.00 4.900% 77;393.75 167,393.75
0810112010 . . . . . 75,188.75 75,188.75
02/011.2011 . . . 95.000.00 4;1;100% 75, 1 SI;J.15 170,H38.7S
OS/01J2011 .. . - - . 72,861,25 72;86t.25
02/01120i2 . . . 105.000.00 5.000% 72,86i.25 177,861.25
OS/0t/2012 . - . . . 70,236.25 70,286..25
0210112013 . . . 110,000.00 5.050% 70.236.25 180,236,25
08/0112013 . . - . . 67,458.15 67,458.15
02101/2014 . . - 120,000.00 5.100% 67,458.15 187,458.75
08101/2014 . . . 84,398.75 64,398.75
02t0112015 . " . 125,000,00 5:150% 84.39$.75 189,398.15
00/01/2015 . - . . . 61,180.00 61,180.00
0210112016 . . 135,000.00 5.350% 61,180.00 196.180.00
0810112016 . . . . . 57,568.75 57;568.75
02101/2017 . . . 145,000.00 5.350% 57.5613.15 202,568.75
08/0112017 . . . - . 53,690.00 53,690.00
02t01/2018 . . 150.000.00 5.350% 53,690.00 203,690.00
08/0112018 - . . . . 49,677 .50 4!t,677.50
02/0112019 . 160,000.00 5.350% 49,677.50 209,677,5i.l
0810112019 . . . . . 45,397.50 45,397.5()
021()1l2020 . - . 170;000.00 5.350% 45,397;50 215,397.50
0810112020 . . . . 40,850.00 40,850.00
0210112021 . . . 180,000.00 40,850.00 220,850.00
08/01/2021 . . . 36,012.50 36,012.50
0210112022 . . . 195,000.00 5.375% 35,012.50 231,012;50
08/0112022 . . . . . 30,771.88 30,771.88
02/0t/2023 . . . 205,000.00 5.375% 30,771.88 235,77HI8
08/0112023 - . . . 25.262.50 25,262.50
02/01/2024 . . . Z15,(01);!)0 25,262.50 240,252.50
08J01/2024 . . . - . 19,484.38 19,484.38
0210112025 . . . 230,000.00 5.375% 19,484.38 249,484.38
0810112025 . . . . . 13,303.13 13,303.13
02/01/2026 . . . 240,000.00 5.375% 13,303.13 253,303.1 $
08101/2026 . . . . ":'" 6,853; 13 6,853.13
02/0112027 . . '. 255,000.00 6,853.13 26MI53.1S
Tota! $3,155,000.00 $328,025.00 $3,483,02.6.00 $3,155,000.00 . $2,222,155.04 $$,377,155;04
YieldStatistiC$
AverageUfe.......................................................................................................,............................................................... 12.800 Y&ars
Weighted Average. Maturity .{Par.!:3asis).............................. ...........................,.......,............................. ...................,............. 12.800 Years
Average Coupon........................,.................................,......;....,.........,............,.....;............................................... ..;........... S;3S14S30%
Refunding Bond Information
Refunding Dated Date.... ........................... ................................................................................ .................................... ..... 7/0112006
Refunding Delivery Date.............................................................. ,............................................................,......................... 7/0112006
~~.tit\-:-UifJ1A II/tit jSINCU:PIJlitlt,),fC.l it/J/:tf\:J{;}tkINA.M
~"?;i pringsted Pag{;l4
t441:
.~
}-
9~0~
seoe
t~Oe
seoe
e~o~
~eOG
oeoe
<I:
~a S; 6JO~
CD
,...
r.;r..1..Jl 1oooo
0
H.'~ - ewe':
oo:1i c:
0
~.~ (/) HO~
";::
Z',-S ('U
0...
~a e 9~OG
0
=~ (.)
~..l'l Q.l S~Oe':
CJ
oo~ "S;
1oooo
.~ Q.l t~Oe
C/)
-
.Q
Q.l
C S~Oe
G~OG
I. We':
01.0e':
BOOG
BOOe':
LODe':
0 0 0 0 0 0 ~ 0
0 0 0 0 0 0 2:3
0 0 0 0 0 0
cS cS cS 0 0 0 0
0 m 0 1.0 0 1.0 1.0
C") C\l C\l ,... ..... f/7 f/7
(/7 (/7 f& f/7 f/7 .
$925,000
Scott County Housing and Redevelopment AgencYt Minnesota
TaxableG.O. Tax Increment OevelopmenfRevenueRefunding Bonds, Series2006D
Current Refunding of Seriest997D
Preliminary Feasibility Summary
Dated 0711 5/2006 I Delivered 07/27/2006
Souroes Of Funds
Par Amount of Bonds.......................................................................... ....,............... .............................. ...... ................. ......... $925;000.00
Transfers . from Prior Issue Debt Service Funds...... .............. .............. ...... ............. ....w................................. ........ .... ......... 11,202.50
Transfers from Prior IssueDSR Ful'lds..~.....;...................................... ...................,.... ....... ................. ........... ..........;.............. 10,220.00
Accrued . Interest fremO?!1 512006 to 07/27/2.006.... ................ ........ ... .;. ........ ...... .....;...... .... ................ ...... .................... ...,... 1,637.58
Total- S.ources...~",..~........~."'..~if,..."~..fl..."'*..."'*...."'..."'<tif.."...HI..."..*.....;oC"'._."'."'~."'.*......fI:"'...<t""u.j:.*....f1.....,,..."',,.~"'.,,_,,+.,........ol-++...;.":.".......:u........".".,,+,,.............:oi>o...,... ~......,,"+"'...,.....,U+""+..II".t:" $94$,OBO.OS
Uses Of Funds
Deposit to Current Refunding Fund.................................... ...... ...................,...... ............. ....... ............ ....... ........................... 902,i7i.25
Cosmof Issuance.... ..w...... ........................................... .............. .................. .............................. ................ ............ ........... 36,000.00
Total Underwriter's Disoount (O.925%)...............~..;;....;. .... ........~. .... ...,...... ...;.......................;........... ........;................... .......... 8,556.25
Deposit to Debt . Service Fund....... .,..... ..,.... .... .....,....... .......;..;.. ......... m....;......... ...;.........~..... ...;;.....; ....; ... .;........... ..... ... ..... 1,637.58
Rounding' Amount............... ................................................. ............,.................... .........'..,................... ................................ 695.00
T otal Uses.................................................................................................................. .........................................,............. $948,060.08
ISSUES REFUNOEOAND CALL INFORMATION
Prior IssuaCall Price........................... .....i............ ........... ...... ..... .............................................. ....... ..................................... 100.000%
Prlorlssue. Call. Date....;; .... ........ .....;.. ..;.. ..... .;..;;....... ...;; ,'w ..... ,........ ;... ................... ...... ......; ..... ....~... ... ........... .... ..... .......... 8/0112006
SAVINGS INFORMATION
Net Futum. Va!ueBenefit....,...,.........,.. ............... ........ .;....... ..... ....................... ......... ....... ......c....... ........;................. ...c....... $230,095.77
Net Present Value Bene-lit... ................... ............ ................. ..... ......... ........................ ............... ...... .......... ................. .......... $95,109.48
Net PVElenefit 1$1.030,269.31 PV Refunded Debt Service............................................................................................... 9.232%
BOND STATISTICS
Average Life............ ........... ..~.... ..................c.......... ................... ......... .................................................................................. .... 7.122 Years
Average Coupon...,.. .........; ....,............................ m.......m. ........ ..... ..;..;....... ............. ............. .....;..............;..... ......... ............ 5.4187042%
Net Interest Cost (NIC)..... .....m ................... ............. .......... ....... .............. ................................... ...... .......... ......... ................. 5.5485849%
True Interest Cost {T!C) ....... .... ..., ..... ............... ........ .... ........... .................... ................... ............ ........... ............... .... ............. '5.5497213%
Page 6
.....,,10$ 2(k"Vlt'lld JiJ!!7lJ!1l!! SJN(';jJU11Jl!'O.#: 1 (!/ lil/.ill);JIi ! 7.'-12 AM
$925,000
Scott County Housing and Redevelopmef.lt Agency,. Minnesota
Taxable G.O. Tax Increment Development Revenue Refunding Bonds,Series 2006D
Current. Refunding of Series 1997D
DebtServiceSchedule
Date Principal Coupon Interest TQtaIP+1
0210112007 60,000.00 5.000% 26,747.t9 86,747.19
02/01/2008 45.000.00 5.000% 46.127,50 91,127.50
02101/2009 50,000;00 5.050% 43.877.50 93.877;50
0210112010 50.000.00 5.100% 41,352.50 91,352.50
02101/2011 50,000,00 5. i 50"/" 38.802050 88,802,50
02101/2012 56.000.00 5.200% 36,227.50 91,227.50
02/0112013 55,000.00 5.250% 33.367.50 88.367.50
0210112014 55,000.00 5.300% 30,480.00 85,480.00
02101/2015 150,000.00 5.400% 27;565.00 i77.565.00
02101/2016 155,000.00 5.450% 19,465.00 174,466.00
02101/2017 165,000,00 5.500% 11,0i7.50 176,()17.50
02101/2018 35,000.00 15;550% 1,942.50 36,942.50 I
Total $925,000.00 - $356,972.19 $1,281,972.19
Yield Statistics I
Accrued Intarest from 07/15/2006 to. 07/27/2006............. ......... ............m..... .................................. ........... ......,......... ........ 1,637;58
BondYearDollars... ,;....."'.m....;.;...................................;........ ............,.......................... "" ....... ........... ............................ $6.587.78
Average l,.ife..... .., ....... ......... .... .;. ........;..... ;..... ................. ..............,;......... ,...;. ............. ..... ............... ......, .;,.... .........;. .;. ..... ;... 7.122Yeal'$
Average Coupon... ............ "'.......... ......... ........... ...................... .;.... ...,... ......., ;;.......,................ ............. ...;..................,......' 5.4187042%
Net Interest Cost (NIC).,..;....... .................m..'..m.......,............; ..................... ....;......... ........ ............................. ................... 5.5485849%
True Interest Cost (TIC).;..-.,......".. ,.............................;.... ........, ..;..... .................... .;................ .... .........;;................ ........... 5.5497213%
Bond Yield for Arbitrage .Purposes.........................m.................................. ........................................, ................... ....... .... 5.3851141%
All Inclusive CO$f(AIC).....,..................,.......;.. ........ ........ ............. ..,.......... ..,..... ..m.......... ....... .,....................... ................... 6.2467892%
IRS Form 6038
Net. Int€lr$$! Cost. ;.......". ........ .... ..................... ...... ........ ..... ......... ......... ..... .... .................. ....... ........... .......... .................. ........ 5.3938463%
Weighted Average Maturity................;....:....... ............. ..............;............ .... ....... .... ................... ................. ......;.... ......... .... 7.122Years
Page 7
&'/y,w!tOf.)6fJ/tcffilfJ7l>fllI/ .\1,vU!.I:rullf'OSI! I r;/fs/:ttl(),1{ 7:12AM
j
i
$94$,000
Scott County Housing and RedevelopmentAgency, Minnesota
Taxable Tax Increment DevelopmenfAevenue Bonds, Series 1997D
Debt Service ToCal1 And To Maturity
Date Refunded Interest to OIS To Call Principal Coupon Interest Refunded 0/$
Bonds Call
07/27/2006 - - - . - . -
0810112006 - 32;171.25 32,171.25 - 32,171.25 32,171.2$
09/0112006 870,000.00 5,361.88 875,361.88 - - - -
02101/2007 - . - 15;000,00 7:100% 32,171,25 47;171.25
08/0112007 - . . - - 31,638.75 31,638075
02/0112008 - . 15,000.00 7;100% 31,6313.75 46,638.75
08/0112003 - . - - - 31 ,100;25 31,105.25
02/0112009 . . . 20,000.00 7,100"10 31,106.25 51,106.25
08/0112009 . - - . 30,396.25 30,396',25
02/01/2010 . - . 20,000,00 7.100% 30,396.25 50,395.25
08/01/2010 - - - - - 29,685.25 29,686.25
02/01/2011 . . - 20,000.00 7.100% 29,686.25 49,686.25
08/01/2011 . . - - . 28,976.25 28,976.25
02101/2012 . . 20,000.00 7,100% 28.975.25- 48,976.25
08/0112012 . . - . 28,255.25 28,256.2$
0210112013 - - - 25,000.00 7.100% 28,26$,25 53,266.25
08!O1/2013 . ~ . . . 27,37!:t75 27,378.:1'5
02l0i/2014 >> >> - $0,000.00 7,450% 27,378.75 57,378.15
08/01/2014 >> . - . - 26,261 ;25 26,261 ;25
02101/2015 . . . 115.000,00 7.450% 2$,261.25 141;261.25
08/01/2015 - - . . - 21.977;50 21,971.50
02/0112016 >> - - 125,000.00 7.450% 21,977.50 146,977.50
08/0112016 . - . - 17,321.25 17.321.25
02101/2017 . . . 135,000,00 7.450% 17,321.25 152,321.25
08/01/2017 - - . . . 12.292.50 12,292.50
02/01/2018 >> - . 145,000.00 7.450% 12,292.50 157,292.50
08/0112018 >> >> . - - 5,891.25 6,891.26
02101/2019 - . 160,000.00 7.450% 6.891.25 166,891.25
08/01/2019 . . >> . 931.25 931.26
02/01/2020 . 26,000.00 7.450% 931.25 25,931.25 I
Total $870,000.00 $$1,533.13 $907,533.13 $870,000.00 . $550,590.00 $1,520,590.00
YielclStati$li Page 6 I
Average' UfEl....... .... ........... ...,.. ........... .......,... ..... .......... ......,.......... ......... ............. .... .... ,..... ..... .......... ,"'.... "'........ ............ .... 9.61::rYElars
Weighted Average Maturity (Par8asis)...... ............. ........................................ .................,.................... .............................. 9$80Yaars
AvaragaCOupon..... ;...m......... .......... ...... .... ..........,.. ......... .... .... ....... ........... .;. ...........;..... ..~.... ,;. ............. ......... ..;..... ........... ';'" 7.4283020%
Rfi:lfundingBond Information
R.efuf'ldingDatad Date....... ".. .......;. ......... ..;.. .;. ...,.,... ..; ......~. ;... ..... ,..............;. ........... .....,......... ......... .........,.... ....... ........ ....... 1t15/2006
Refunding' Delivery Date..... ....... ..... ......... ....... .;.;........., ...... ..;.; ....... ........,..;.... ;............. .0.................... .m... .......... ...;;.;.;... 7/27/2006
l
Page 8 I
S:rf,;;slll.1Tl'flfMTAX! J>1M;tNJVKltl.\1: 111/1.1/2006 11:42,1.11
(:';!l Springsted
f&L&wJill
I
$1,245,000
Scott County Housing and Redevelopment Agency, Minnesota
G. O. Tax IncrementDevalopment RavenueRefunding.Bonds,Series2006E
Full Net Advance RefundingdfSeries 1997E
Preliminary Feasibility Summary
, Dated 07/15/2006 I Delivered07/27/2006
Sources Of Funds
Par Amount of Bonds.................... ...... ........................... ........... ....................................... ............................... ....... ......... $1.245,000.00
Transfers from Prior Issue DSR Funds........................................................................................................................... 13,547.00
Transfers from Prior Issue Debt Service Funds.........................,.."......;.;.;.......................................................;............... 11,202.50
Accrued Interest from 07/15/2006 to 07127/2006......................... ............................;...... ................. ..... ...................... ....... 1,750;92
Total.Sources.............................................................;................................................................................................... .$1,271,500,42
Uses Of Funds
Deposit to Net Cash Escrow Fund.... ................ .... .,.......................,. ................... ........................................ ...... ............... 1.220.260.54
Costs. oflssuance............................ ............................... ......... .... ....... ..................................... ................ ........................ 35,000.00
Total Underwriter's Discount (1.050%).......; ......... ;......;.. .....;;.; ........ ............ ........... ;,..... ........;..... ........... ....... ........... ....... 1$;072.50
Depositto Debt Service Fund........................ ....................................................,. ............,......................,...;........ ... ......... 1,750.92
Rounding Amount.......... .... ........... ...... .....m.....................................................,......................... ...................................... 1,416.46
Total Uses...............,......... ..............., ..... ....,...........,........................,.................;.............;....................,......... ................ $1,271,500.42
ISSUES REFUNDED ANDCALllNFORMATlON
prlor Issue Call Price........ .,.. ...,............. ;...... ................... ..m........ ........,.. ....... .;........ .... ,.. ...:................. .;.............. .......;... 100,0000'"
Prior .Is,sue CaUDate.....................;....... .... ..... ...... ..... ...... ........... ........ ..... ....;... ............... .... ........ ~......... ....... .............. .;.......... 2101f2008
SAVlNGSINFORMATION
Net Future. Value Benefit...,................. ................................. ....,.... .... ................... ..................... ....................................... $203.755.35
Net Present Value Benefit..... .................. ........... ............. ................................ .................................................. .............. $102,393.80
Net PV Bonefltl $1.357.179.84 PV' Refunded Debt Service............... ............ ..............;.......... ........ ..;.............................. 7.545%
BOND STATISTICS
Average Ufe....... '. ....... ....... .........; ........ .;,.... ......... ....... ..,;... ....... ............ ....;....... ... ..... ;...... c......... ...; .... ..........................;.... 14.487 Years
AverageCoopol'l.................. ..................... ............. .................................. ........... .............;......;....;...... ...;.......................... 4.2375066%
Net Interest Cost (NIC).......... ....... ................ ...... .......... ..... .......... .......,.......................................;.... ............ .................... 4.3099853%
True Interest Cost (TiC)........ ............ ...... ... .;. .................. ...;....................... ....... ......... .... ................ ...... ........ .... c... .............. 4.3237224%
Page 9
Si:n,w:tfJi.'I61:,gdffJ!Ii'Um ! SiNaM:N.fllf'O.W J (I/1S/:t,NW f7;'.U;ml1
B Sprlngsted !
$1,245,000
Scott County Housing 'and. Redevelopment Agency, Minnesota
G. O. Taxlncrement Development Revenue Refunding Bonds, Serles2006E
Full Net Advance Refunding of Series 1997E
DebtService.'Schedule
Date Principal Coupon Interest TotalP+1
02101/2007 - 28.598.31 28.598.31
02101/2008 - - 52.527.50 """ 52,527.50
02101/2009 - - 52,527.50 52.527.50
02101/2010 - - 52,527.50 52,527.50
02101/2011 . . 52,527.50 52,527.50
02101/2012 . - 52,527.50 52,527.50
02101/2013 - - 52,527.50 52;527.50
02101/2014 - - 52,527.50 52,527.50
02101/2015 - . 52,527.50 ,52,527..50
02101/2016 . - 52,527.50 52,527.50
02/01/2017 . - 52,527.50 52,527.50
02lO1/20.1B 145,000.00 4.100% 52.527.50 197,527.50
02101/2019 170,000.0.0 4.150% 46,5B2.50. 216,582.50
02101/2020 190,0.0.0.00 4.200% 39,527.50. 229,527.50
02/01/2021 210,000.00 4.200% 31,547.50 241,547.50
02101/2022 2.15.000.00 4.250% 22,727.50 237.727J50
02/01/2023 225,000.00 4.300% 13.590.00 238,590.00
02101/2024 90,000.00 4.350% 3.915.00 93,915.00
Total $1,245.000.00 $764.290.81 $2,OO9;290.8i
VieldStatistiC$
Accrued Interest from 0'7/15/2006 to 07/27/2006............. .... ..............;.;. ................. .................. ..................... .......i........... 1,750.92
Elond Year Dollars..... ....i.... .............. .....;.......... .......... ........;;.................... ................. ,......... ......... .............. ........... ............... $18,036.33
Average Life................;....... .......................... ..... .............. ..... ............. ....... ...... ........m..... ............... ...........m............... ...... 14.487 Years
Average Coupon..;.............. ..i...............;............ .... .... .......... ......... ....... ;...... ................... ............................... ........,........... 4.2375066"k
Net.lnterestCost {NIC).......... ........... ........ ................ ...... ..............,..............................,....,..;....,.............. ....... ....... .............. 4.S099853%
True Interest Oost {TIC)..... .............. .......... ..... .....;........, ...,. .... .ii.. .;.............. "'...... ........ ......... ,......."'... .......... ...... ......... ..,. ..... 4.3237224%
Bond Yield for Arbitrage Purposes............;...... ............;.......... ..i.......i..............i.. ........................ ..........."'....................... 4.225144O"k
All Inclusive Cost (AlO)........................................ ...... ......................................... .............. .......... ....... ;..,........................... 4.5942186%
IRS Form 8038
NeHnterestCOsL...... ........... ....... ................ ....... ...... ...;.. ..... ........ ........ ...... ............................,............ ....... .............. ...;........ 4.2277988%
Weighted. AVerage Maturity...................,........ ................ ..................... ........ .,......................................... ....... ....................... 14,487 Years
Page<10
.*..ks:tom....IMlfNf/7l'IfK I NAt;U:I'I!KlV.''j,' {iVIS/JlfKJa 17..4iJMI
B
.~.'.... Sprln
$1,170,000
Scott County Housing and Redevelopment AgencYl Minnesota
Tax Increment Development Revenue. Bonds, Series 1997E
DebtService To Call.And To Maturity
DalO R.efunded Interest to DIS To Call Principal Coupon Interest Refunded PIS I
Bonds Call
08/0112006 . 31,443.75 31,443.75 . . 31,443.75 31,443,75
02101/2007 - 31,443]5 31,443.75 . . 31.443,75 31,443.15
08J01/2007 . 31,44S.75 Sl,443.75 . . 31,443.75 31,443,15
02101/2008 1,110,000.00 31,443.75 1,201,443.75 . . 31,443]5 31,443.75
08/01/2008 . . . . . 31,443.75 31,443.75
02101/2009 . . . M 31,443,15 31,443.75
08/0.1/2009 . . . . '. 31,443.75 3t,443.75
02l0t/201 a M . . . . 31,443.75 31,443.75
08/0.1/2010 . . . . . 31,443.75 31.443.75
02101/2011 . . . . . 31,443.75 31,443.75
08/01/2011 . . . . . 31,443.75 31,443.75
0210112012 M . . . . 31,443,75 31,443.75
08/0112012 . . 31,443.75 31.443.75
02/01120.13 . . . 31,443,75 31,443.75
08/0112013 . . . . 31,443;75 31,443,75
02/01/2014 . . . . . 31,443.75' 31 ,443,75
08101/2014 . . . 31 <443.75 31,443.75
02/01/2015 . . . . M 31,443.75 31,443.75
00/0112015 . . . . . 31,443.75 31,443.75
02101/2016 . . . . . 31,443.75 31,443.75
08/01/2016 . M . . . 31,443,75 31,443.75
02/0112017 . . . 31 ;443.75 31,443.75
08/01/2017 . . . . . 31,443.75 31,443.75
02/01/201 B . - . . - 31;443.75 3M43.75
08/01/2018 . . . . - 31,443.75 31,443.75
02/01/2019 . . . . . 31,443.75 3M43.75
08/01/2019 . . . . 31,443.75 3M43.75
02101/2020 . . - 145,000.00 5.375% 31,443.75 176,443.75
08/0112020 - . . . . 27,546.88 27,546.88
02101/2021 . 185,000.00 5.375% 27,546.88 212,546;88
08/01/2021 . . . 22,575.00 22.575.00
02101/2022 . . . 195,000.00 5.375% 22,575.00 217;575.00
08/01/2022 . . . . 17,334.38 17,334.38
02101/2023 . . 205.000.00 5.375% 17,334.38 222,334.38
08/01/2023 . . . . 11,825.00 11 ,825.00
02101/2024 . . . 2.15,000.00 5,375% i 1,825.00 226,825.00
08/0112024 . . . . . 6;046.88 6,046.88
02/01/2025 . . . 225,000.00 5.375% 6,046.88 231,046.88
Total $1,170,000.00 .$125,715.00 $1,295,775;00 $1,170,000.00 $1,051,081.28 $2,221,08t.28
'field Statistics
Average Ufe...,.....................,....,.........,............................................,..,........................,..........................,.........................., 16,258Years
Weighted Average Maturity (Par Basis}.......... ..........~........... ......."... .,................. .......... ..,~........., .....,........ ............... ...~ ..... 16.225 Years
Average Coupon. ..............,... '," ,.......... .........;.... ,;....... ........... ...;... ........ ..;...........:....;....,......... ..... .......... ............. ............;. 5.3750002%
Refunding Bond Information
Refunding Dated Date... ...... ..."........ ......, ........ .;.. ..,......,; ..... ....,...".. ......... .... ..... ......,....... ......., ............. ......;...... ..... ...;..;; .,. 7115/2006
, Refunding Oel!very Date...... ....... .;..... ..........., ............ ...... ........ ... ......,......................... ,......... ......,....... .... ...,... ....,.... ... ........ 7/27/2006
Si:l'k" fI),'l7ClIKA / SlM;tJ:J1JNltl'1l: !1/!!.1/2M! I i:43 AM
Paga11
I
w
~
0
......
C>>
C>>
or-
""
0
-
c
0
(I)
.;:
<a
c.
e
0
(.)
(I)
(,)
'S
""
(I)
(I)
E
(I)
0
0 0 0 8 0 0 0 8 0 0 0
0 8 0 0 0 0 0 0 0
0 0 0 0 0 0 q 0 0 0
0 g- o 0 0 0 0 0 0 0 0
l.O ..... Cl} ,.... l.O en "... Cl} ,.... to
C\I C\I C\I '\""' '\""' '\""" ..... '\""'
,; .
ECONOMIC DEVELOPMENT AUTHORITY {i'OR THE
CITY O~" SHAKOPEE, MINNESOTA
RESOLUTION NO. 800&- 03,.
Authorizing the execution and delivery of an amendment to a tax increment
pledge agreement
WHEREAS, the Scott County Housing and Redevelopment Authority (the "Authority")
has previously issued its Taxable Tax Increment Development Revenue Bonds (City of Shakopee,
Minnesota, General Obligation- River City Centre Project), Sedes 1997D and Tax Increment
Development Revenue Bonds (City of Shakopee,Minnesota, General Obligation - River City
Centre Project), Series 1997E (together, the "Prior Bonds"); and
WHEREAS, the Prior Bonds were secured by that certain City of Shakopee General
Obligation Tax Increment Guaranty Agreement (the "Prior Guaranty") and by a pledge' of tax
increment pursuant to that certain Tax Increment Pledge Agreement by andhetween the City, the
Economic Development Authority for the City of Shakopee, Minnesota (the "EDA") and the
Authority; and
WHEREAS, the Authority proposes to issue it.1) Taxable Tax Increment Developn1ent
Revenue Refunding Bonds (City of Shakopee, Minnesota General Obligation - River City Centre
Project, Series 2006D and its Tax Increment Development Revenue Refunding Bonds (City of
Shakopee, Minne.<:;ota, General Obligation - River City Centre Project), Series 2006E (together the
"Refunding Bonds") to advance refund the outstanding principal amount of the Prior Bonds and to
reduce debt service requirements;
NOW THEREFORE, BE IT RESOLVED by the Bmu'dof Commissioners of the Economic
Development Authority for the City of Shakopee, Minnesota as follows:
L In connection with the issuance by the Authority of the Refunding. Bonds, the EDA
hereby approves the Amendment to Tax Increment Pledge Agreement relating to the River City
Center project in substantially the form on file with theRDA on the datedhereof. ..
2. The President and ExecutiveDirector,odn their absence orunavailabiUty, any other
officers of the BDA, are authorized and directed to execute and deliver the Amendment to Tax
Increment' Pledge Agreement on behalf of the EDA.
,
Adopted this 20th day of June,2006.
3452805.1
I
AMENDMENT TO TAX INCREMENT PLEDGE AGREEMENT
This Amendment to Tax Increment Pledge Agreement (thisHAmendment) by and between I
the City of Shakopee, Minnesota (thc"City), the Economic Development Authority for the City of
Shakopee, Minnesota (the <'ED~)and the Scott County Housing and Redevelopment Authority
(the<)\uthoritYJ, dated as of July 1, 2006,
WITNESSETH: I
WHEREAS, the City, EDA and Authority have entered into that certain Tax Increment
Pledge Agreement (the'<1997 Pledge Agreement) in connection with the issuance by the
Authority of its $945,000 Taxable Tax Increment Development Revenue Bonds CCityof
Shakopee, Minnesota, General Obligation - River City Centre Development Project), Series
1997D and its $1,170,000 Tax lncrement Development Revenue Bonds (City of Shakopee,
Minnesota, General Obligation-River City Centre Development ProJect).Series 1997E (together,
the "Prior Bonds'), the proceeds of which were used to finance portions of the River City Centre !
project; and I
WHEREAS, the Authority now proposes to issue its Taxable Tax Increment
Devel,opment Revenue. Refunding Bonds (City of Shakopee, Minnesota, General Obligation- I
River City Centre Development Project), . Series 2006Dand its Tax Increment Development I
Revenue Refunding Bonds (City of Shakopee, Minnesota, General Obligation-River City Centre
Development Project), Series 2006E (together, the'Refunding Bonds') in order to advance refund
the entire outstanding principal amount of the Prior. Bonds; and
WHEREAS, the Refunding Bonds will be issued as additional bonds under. that certain
Indenture of Trust, dated as of October 1, 1997, by and between the Authority, City and U.S.
Bank National Association as trustee (the 'Trusted'), as amended by a supplementa.l indenture to
be entered into to provide for certain amendments necessary in connection with the issuance of
the Refunding Bonds; and
WHEREAS, the patties intend that the Tax Increment (as defined in the 1997 Pledge
Agreement) be pledged to the payment of the Refunding Bonds from and after the date of
issuance thereof;
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the City, EDA and Authority hereby covenant and agree asfollows:
1; Amendment.
1.1. The definition of"Tax Increment Bonds' in the 1997 Pledge Agreement shall be amended
to mezm the Refunding Bonds rather than the Prior Bonds. .
1.2. The definition of " Indenture' in the 1997 Pledge Agreement shall be amended to refer to
the Indenture, as supplemented or amended from time to time.
2. Filing. An executed copy of this Amendment shall be filed with the County Auditor of Scott
County.
3. No Other Amendment. Except as expressly amended'hereby, the terms and conditions of the
1997 Pledge Agreement shall remain in full force and effect.
4. Effective Date. This Amendment shall become effective upon the actual issuance and
delivery of the Refunding Bonds.
[The l'emainderof this page is intentionally left blank.]
3453595.1 2
IN WITNESS WHEREOF, the City, EDA and Authority have caused this Agreement to
be duly executed on their behalf and their seals to be affixed hereto, aU as of the day and year
first above written.
CITY OF SHAKOPEE, MINNESOTA
By
Its: Mayor
By
Its: City Clerk
By
Its: City Administrator
I
3453595.1 3
!
,
ECONOMIC DEVELOPMENT AUTHORITY
FOR THE CITY OF SHAKOPEE. MINNESOTA
By I
Its: President
By
Its: Executive Director I
I
3453595.1 4
I
SCOTT COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Its: Chair
By I
Its: Executive Director
3453595.1 5
,
.. !
CITY OF SHAKOPEE, MINNESOTA
Resolution No. lP4 L{ 0
Acknowledging the issuance by the Scott County Housing And Redevelopment
Authority of its' Governmental Housing Development Refunding Bonds (City of
Shakopee Unlimited Tax General Obligation), Series' 2006 and the HRA's pledge of
the full faith and credit of the City of Shakopee thereto.
WHEREAS, on October 2l, 1997, the Scott County Housing and Redevelopment Authority (the
"Authority") issued its $3,495,000 Housing Development Revenue Bonds (City of Shakopee, Minnesota,
Unlimited Tax General ObligatiOll- River City Centre Project), Series 1997A (the "Prior Bonds") in order
to finance the acquisition and construction of the housing element of the River City Centre Apartments
located in the City of Shakopee, Minnesota (the "City"), which are owned and operated by the Authority;
and
WHEREAS, following' a public hearing for which notice was duly published, the City Council of
the City on October 7) 1997, adopted Resolution No. 4744, approving the issuance of the Prior Bonds and
the Authority's pledge of the full faith and credit of the City thereto, all in accordance with Minnesota
Statutes, Section 469.034, Subd: 2; and
WHEREAS, the Authority now proposes to issue bonds (the "Refunding Bonds") in an aggregate
principal amount not exceeding $3,600,000 to refund the Prior Bonds in order to redllce millual debt service
costs;
NOW, THEREFORE, BE IT. RESOL \lED, by the City Council of the City of Shakopee,
Minnesota, as follows:
1. That the City hereby acknowledges and approves the issuance by the Authority of the Refunding
Bonds and the pledge by the Authority to the Refunding Bonds of the full faith and credit of the
City; and
2. That officers and staff of the City are authorized to execute and deliver on behalf of the City any
certificates or documents which may be necessary or convenient in connection with the Authority's
issuance of the Bonds.
Adopted on this 20th day of June, 2006. I
Mayor
Attest:
City Clerk
3452706,]
.
CITY OF' SHAKOPEE, l\fiNNESOTA
RESOLUTION NO. &1-/41
Authorizing the execution and delivery of a General Obligation Tax Increment
Guaranty Agreement, guarantying the payment of debt service on the SL'Ott
County Housing and Redevelopment Authority's Taxable Tax Increment
Development. Revenue Refunding Bonds (City of Shakopee, Minnesota,
General Obligation - River City Centre Project), Series 2006Dand Tax
Increment DeveJopmentRevenueRefunding Bonds (City of Shakopee,
Minnesota, General,Obligation -River City Centre Project), Seril'S 2006E and
anamendment.to'arelated tax increment pledge agreement
BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota (the "City"), as
follows:
WHEREAS, the Scott County Housing and Redevelopment Authority (the "Authority")
has previously issued its Taxable Tax Increment Development Revenue Bonds (City of Shakopee,
Minnesota, General Obligation -River City Centre Project), Series 1997Dand Tax Increment
Development Revenue Bonds (City of Shakopee, Minnesota, General' Obligation - River City
CentrePrqject), Seriesl997E (together, the "Prior Bond')"); and
WHEREAS, pursuant to Resolution No. 4747 of the City, adopted on October 7, 1997, the
Prior Bonds were secured by that certain City of Shakopee General Obligation Tax Increment
Guaranty Agreement (the "Prior Guaranty") and by a pledge of tax increment pursuant to that
certain Tax Increment Pledge Agreement by and between the City, the Economic Development
Authority for the City of Shako pee, Minnesota (the "EDAI')and the Authority; and
WHEREAS, the Authority proposes to issue its Taxable Tax Increment Development
Revenue Refunding Bonds (City of Shako pee,. Minnesota General Obligation - River City Centre
Project, Series 2006D (the "Series D Bonds") and its Tax Increment Development Revenue
Refunding Bonds (City of Shako pee" Minnesota, General Obligation- River City Centre Project),
Series 2006E (the "SeriesE Bonds" and, together with the Series D Bonds, lhe"RefundingBonds")
to advance refund the outstanding principal amount of the Prior Bonds and to reduce debt service
requirements;
NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota
as follows: '
L In connection with the. issuance by the Authority of the Refunding Bonds, the City
hereby approves execution and delivery on behalf of the City. (a) a General Obligation Tax
Increment Guaranty Agreement (thc"Refunding Guaranty") in substantially the form on file with
the City Clerk on the date hereof, pledging the full faith and credit and taxing power of the City to
guaranty the payment of debt service on. the Refunding Bondll., Cb) an Amendment to Tax Increment
Pledge Agreement in substantially the form on file .with the City Clerk on the date hereof.
3452805.\
2. The Refunding Bonds and the Refunding Guaranty together comprise an
"obligation" pursuant to Minnesota Statutes, Section 475.51, Subd 2, issued by the Authority and
the City pursuant to Minnesota Statutes, Sections 471.59 and 469.178, in thattheyarea promise to
pay stated amounts at a fixed future dates, made for the purpose of incurring debt. The Refunding
Bonds are expected to be paid' from Tax Increment and from certain net revenues to be generated by
the project financed with proceeds of the Prior Bonds (the "Pledged Revenues"), but if necessary for
the payment. thereof, pursuant to the Refunding Guaranty, the City will levy ad valorem. property
taxes upon all property within its jurisdiction without limitation as to rate or amount. It is
anticipated that the Taxlncrement and tbe Pledged Revenues will equal not less than 105% of debt
service on the Refunding Bonds in each year. The Refunding Bonds and the Refunding Guaranty,
together with the Scott County Housing and Redevelopment Authority, Housing Development
Revenue Refunding Bonds (City of Shakopee, Minnesota - Unlimited TaxGeneralObIigation -
River City Centre Development Project) Series2006A will meet the debt service scheduling
requirements of Minnesota Statutes, Chapter 475.
3. The Refunding Bonds wiU be issued as additional bonds under that certain Indenture
of Trust (the "Indenture"), dated as of October 1, 1997, by and between the Authority, the City and
u.s. Bank National Association (the "Trustee"), as amended by a supplemental indenture expressly
providing for the terms of the Refunding Bonds . and related modifications (the "Supplemental
Indenture").
4. All acts, conditions and things which are required by the Constit.ution and laws of
the State of Minnesota to be done, to exist, to happen and to be performed precedentto and in the
valid execution and delivery of the Refunding Guaranty, having been done, now existing, having
happened and having been performed, the City Council hereby authorizes and directs the Mayor, the
City Administrator and the City Clerk to execute and delivertheRefunding Guaranty in connection
with the issuance of the Refunding Bonds and to execute and deliver the Supplemental Indenture.
The final terms of the Refunding Bonds, induding particularly the aggregate principal amounts
thereof, the maturity dates and the interest rates therefore, shall be determined by a Pricing
Committee, wh,ich shall be comprised of the. Chair and Executive Director of the Authority, acting
on advice of Springs ted, Incorporated, provided that the aggregate principal amountshall not exceed
$1,000,000, as to the Series D Bonds, and $1,400,000, as to the Series E Bonds, the final maturity
shall not be latenhan February 1, 2020,inthecaseofthe Series D Bonds and February 1, 2025 in
the case of the Series EBonds, and the net interest cost shall not exceed 6.25% per annum in the
case of the Series D Bonds and 5.25% per annum in the case ofthe Series E Bonds.
5. If the balance in the Tax Increment Account of the Bond Fund created under the
Indenture is at any time insufficient to pay all payments then due on the Refunding Bonds, the
payment shall be made fmm any fund of the City which is available for that purpose, subject to
reimbursement from moneys disbursed from the Surplus Fund when the balance therein is
sufficient, and the City Council covenants and agrees thatlt will each year levy a sufficient amount
3452805.1 B-2
JUnll 14. 2006
1583006.03
of ad valorem taxes to fund any accumulated or anticipated deficiency, which levy is not subject to
any constitutional or statutory limitation as to rate or amount.
6. For the prompt and full payment of the City's obligation under the Guaranty to pay
principal of and interest on the Refunding Bonds as the same respectively become due, the full faith,
credit and unlimited taxing powers of the City shall be and are' hereby irrevocably pledged.
7. The Administrator is hereby authorized and directed to file. acertitied copy of. this
Resolution with the County Auditor of Scott County, together with such additional information as
the Auditor may require, and to obtain from the Auditor a certificate that the Refunding Bonds and
the Refunding Guaranty have been duly entered upon the Auditor's bond register.
8. The ofticers of the City are hereby authorized and directed' to prepare and furnish to
the purchaser of the Refunding Bonds and to Leonard, Street and Deinard, Professional Association, I
Bond Counsel, certified copies of aU p1'Oceedings and records relating to the Refunding Guaranty
and such otheraffidavits, certificates and information as maybe required to show the facts relating
to the legality and marketability of the Refunding.Bonds:, as the same appear from the books and
records in their custody and control, or as . otherwise known to them, and all such certified copies,
affidavits and certificates, including any heretofore furnished, shall be deemed representations of the
City as to the correctness of all statements contained therein. The officers of the City are . fmther
authorized toexccute and, deliver related documents and agreements necessary or convenient in
connection with the transaction described in this resolution.
9. The, Official Statement relating to the Refunding Bonds, prepared and delivered on
behalf of the Authority and the City by Springsted Incorporated, is hereby approved, and the
officers of the City arc hereby authorized and directed to execute such certificates asmuy be
appropriate concerning the accura.cy, completeness and sl.lfficiencythereof.
Adopted this 20th day of June, 2006.
3452805, I B-3
lutle 14, 2llO6
! 583llO6.03
, CITY OF SHAKOPEE, MINNESOTA
GENERAL OBUGA TION TAX INCREMENT GUARANTY AGREEMENT
Re: SCO'ITCOUNTYHOUSING AND REDEVEI,.OPMENT AUTHORITY
$
TAXABLE TAX INCREMENT DEVELOPMENT REVENUE REFUNDING BONDS
(CITY OFSHAKOPEF.., MINNESOTA, GENERAL OBLIGATION -
RIVER CITY CENTRE PROJECT), SERIES 2006D, AND
$
, TAX INCREMENT DEVELOPMENT REVENUE REFUNDING BONDS
(CITY OF SHAKOPEE, MINNESOTA, GENERAL OBLIGATION -
RIVER CITYCENTREPROJECT), SERIES 2006E
This General ObHgationTuJ<.Increment Guaranty Agreement is made by the. City of
Shakopee, Minnesota (the "City"), a duly organized and existing municipal corporation and
political subdivision of the State of Minnesota, in favor of D.S. Bank National Association (the
"Trustee") as trustee under the Indenture hereinafter defined. The City hereby guaranties the
prompt and full payment of principal of and interest, as the same become due, on the captioned
bonds (the "Series D Bonds" and the "Series E Bonds", and together, the "Tax.Increment Bonds")
issued by the Scott County Housing and. Redevelopment Authority (the "Authority"). This
Guaranty is made pursuant to Minnesota Statutes, Chapter 475 and Sections 471.59,469.178, and
469.001 through 469.047 (the "Authorizing Laws") and constitutes a general obligation of the City,
backed by itsfuU faith and credit and taxing powers. The Tax Increment Bonds are issued and this l
Guaranty is made to refinance a housing . development project and a redeve10pment prqject, jointly I
undertaken by the City, the Authority and the Economic Development Authority for the City of
Shakopee, Minnesota (the "EDA") pursuant to that certain Development Agreement, dated as of
October '1, 1997, by and between the City, Authority and EDA
The Tax Increment Bonds are issued pursuant to that certainlndentureof Trust (the
"Indenture"), dated as of October 1, .1997, by and between' the.. Authority, the City and the Trustee,
as amended by that certain Supplemental Indenture of Trust, dated as of July 1, 2006, by and
between the Authority, the City and the Trustee. Payments made under this General Obligation Tax:
IncrementGuaranty are payable in lawful moneyofthe United States of America by check or draft
of the City. paid to the Trustee. For . the prompt and. full payment of payments of principal of and
interest on the TaxmcremenLBondsas the same respectively become due, the full faith, credit and
taxing powers of the City have been and are hereby irrevocably pledged.
This General Obligation Guaranty is made pursuant to a resolution adopted by the City
Council on June 20, 2006 (the "Resolution") the provisions of which are incolporated herein by
reference as if fully set forth herein, and is made pursuant to and in full conformity with the
3452785.1
1593245
I
I
"1
I
j
!
i
!
j
I
i
Constitution and laws of theSta.te of Minnesota thereunto enabling, including the Authorizing I
Laws. !
\
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, I
I
conditions and things required by the Constitution ancllaws of the State of Minnesota to be done, to I
exist, to happen and to be performed preliminary to and in the making of this. Guatantyin order to
make it a valid and binding general obligation of the City inaccor'dance with' its terms, have been
done, do exist, have happened and have been performed as so required; that,priorto the making
hereof the City Council has pledged to the payment of the Bonds certain tax increment and certain
other payments, which are anticipated to equal not less than five percent in excess of the principal
of and interest on the Tax Increment Bonds when due; that if necessary for payment of such I
principal and 'interest, ad valorem taxes: are required to be . levied upon' all taxable property in the
City, without limitation as to raleor amount; and that the making of this Guaranty, together with aU i
,
other indebtedness of the City outstanding on the date, hereof and ,on the date of its. actual issuance
and delivery,. does not cause the indebtedness of the City to exceed any constitutional or statutory
,limitation ofindebtedness.
j
3452785.1 2
IN WITNESS WHEREOF, the City of Shakopee, County of Scott, Minnesota, by its City
Council,has caused this General Obligation Guaranty to be executed on itsbehnlf by .its Mayor and
Administrator as of Julv. .,2006.
,-
CITY OF SHAKOPEE, MINNESOTA
By
Us Mayor
By
Its City Clerk
By
lts City Administrator
3452785.1 3