Loading...
HomeMy WebLinkAbout05/13/1992 N_......agt„ CITY OF SHAKOPEE - ‘c,-,:,.....„4 ,N, ---- ,„inp, INCORPORATED 1870 `" 129 EAST FIRST AVENUE, SHAKOPEE, MINNESOTA 55379-1376 (612)445.3650 AlAKO t r May 8, 1992 Members of the Shakopee Housing and Redevelopment Authority 129 East First Avenue Shakopee, MN 55379 Gloria Vierling, Vice Chair of the HRA, has notified me, Judith S. Cox, City Clerk of the City of Shakopee, that a special session of the HRA will be held at 8: 30 a.m. on Wednesday, May 13 , 1992, for the purpose of considering actions on the following matters: 1) Approving an agreement addressing the financial security arrangement in exchange for amending the assessment agreement for Canterbury Downs. 2) Taking appropriate action relative to calling for early redemption on the outstanding balance of the $4, 200, 000 Special Obligations Tax Increment Revenue Bonds (Canterbury Downs Project) . 3) Amending the assessment agreement for Canterbury Downs. 4) Any other business which may come before the HRA. Respectfully, (Att{ � /26 Jad'th S. Cox i Clerk k. CC: Shakopee Valley News Amzak Cable Co. KCHK City Hall Bulletin Board JSC:trw The Heart Of Progress Valley AN EQUAL OPPORTUNITY EMPLOYER MEMO TO: Shakopee Housing and Redevelopment Authority FROM: Barry A. Stock, Assistant City Administrator RE: Canterbury Downs Reduction in Assessed Valuation - Special Meeting DATE: May 8 , 1992 INTRODUCTION: On May 5, 1992 a majority of the Shakopee HRA approved directing staff to proceed in amending the assessment agreement with Canterbury Downs to reduce the estimated market value of the racetrack to generate $1. 5 million in taxes payable in 1992 . The HRA also made it clear that the School District should be made whole through this entire process and that Canterbury Downs would supply the necessary financial security to protect the City in the event of default through pay 1995 taxes. BACKGROUND: On Thursday, May 7 , 1992 staff met with the City' s Bond Counsel, Financial Advisor and representatives from Canterbury Downs to determine the exact process necessary to facilitate the action taken by the HRA on May 5, 1992 . Since the current assessment agreement with Canterbury Downs specifies that the developer shall not seek a reduction of the market value below that which was established in the assessment agreement, the City' s bond counsel felt that it would be best to first amend the existing assessment agreement prior to Canterbury Downs filing a tax petition to reduce taxes. In regard to the tax petition process, it should be noted that during this entire process, Canterbury Downs has been seeking a reduction in their taxes payable for 1992 through the duration of the original assessment agreement (payable 1994) . All of the financial illustrations supplied by Springstead are consistent with this point. Canterbury is offering to guarantee taxes for pay 1995 for the backstretch which is in TIF District #1. This is an additional one year guarantee. On Wednesday, May 13 , 1992 the HRA will be asked to consider taking the following actions: 1. Approve a resolution defeasing the $4 , 200, 000 Special Obligation Tax Increment Revenue Bonds, Series 1985 (Racetrack) . 2 . Approve a resolution amending the assessment agreement and establishing a tax payment and security agreement. Canterbury Downs has agreed to provide financial security to the City to cover the amount of taxes payable through pay 1995 . The exact legal instrument will not be ready by the HRA meeting on May 13 , 1992 . However, the City' s bond counsel will be preparing the necessary language to be included in the assessment agreement which will provide that Canterbury Downs must submit said financial security to the City prior to a specified date. In the event of default on the part of Canterbury Downs the original assessment agreement and its terms and conditions will be reactivated. TAX ABATEMENT PROCESS The City' s Bond Counsel and Canterbury Downs' Attorneys agree that there are two approaches for Canterbury Downs to consider in effectuating a tax abatement. 1. Written application requesting said reduction to the County Board. 2 . Written application to the Commissioner of Revenue. At this time, Canterbury Downs is considering making their appeal to the Commissioner of Revenue as opposed to the County Board. In either case, the request for abatement must be filed on or before May 16, 1992 . Hence the need for the meeting on May 13 , 1992 . SUMMARY: Staff understands that this is a complex and rather confusing issue. Action by the HRA on May 13 , 1992 is crucial for Canterbury Downs in order for them to file their abatement petition. Please call me or Gregg Voxland if you have any questions regarding the dynamics of Canterbury Downs ' request and subsequent HRA actions that are necessary. Both the City' s Financial Advisor and Bond Counsel will be present at the meeting on May 13th. TENTATIVE AGENDA HOUSING & REDEVELOPMENT AUTHORITY SPECIAL SESSION SHAKOPEE, MINNESOTA MAY 13 , 1992 Chairman Robert Sweeney presiding 1] Roll Call at 8: 30 A.M. 2] Approval of the Special Call by the Vice-Chair 3 ] Res. No. 92-1 - Authorizing Defeasance of Tax Increment Revenue Bonds, Series 1985 4] Res. No. 92-2 - Amending Canterbury Downs Assessment Agreement 5] Other Business 6] Adjourn Dennis R. Kraft Executive Director Resolution No. Resolution Authorizing Defeasance And Payment and Redemption of Tax Increment Revenue Bonds, Series 1985 Be It Resolved by the Board of Commissioners of the Housing And Redevelopment Authority In And For The City of Shakopee, Minnesota (the "Authority") , as follows : Section 1 . Recitals . 1 .01 . The Authority now has outstanding its Tax Increment Revenue Bonds dated March 1, 1985 (the "Bonds") , which mature on August 1 in the years and in the amounts, and bear interest at the rates, set forth below: Interest Year Amount Rate 1992 $585, 000 10 .00% 1993 640, 000 10 .25% 1994 710, 000 10 .25% The bonds maturing in the years 1993 and 1994 are subject to redemption and prepayment on August 1, 1992 at a price of 101% of par plus accrued interest . 1 .02 . The Authority now has on hand tax increment revenues sufficient to immediately defease and pay when due the Bonds maturing on August 1, 1992, and to immediately defease, and redeem and prepay on August 1, 1992 the Bonds maturing on August 1, 1993 and 1994 . 1 .03 . It is in the best interest of the City, Scott County and Independent School District No. 720, that the Bonds be immediately defeased, and paid and redeemed in full on August 1, 1992 . Section 2 . Payment and Redemption Authorized. 2 .01 . The Executive Director is authorized and directed to direct First Trust, National Association, as Trustee under the Indenture of Trust between it and the Authority dated March 1, 1985 (the "Indenture") , pursuant to which the Bonds were issued, to call for redemption and prepayment on August 1, 1992, the Bonds maturing on August 1, 1993 and 1994; and upon receipt from the Authority of the necessary moneys, to immediately defease all of the Bonds . 2 .02 . The Executive Director is authorized and directed to immediately pay to the Trustee from tax increment revenues derived from the City' s Tax Increment Financing District No. 4, the amount required to immediately defease such Bonds and to pay and redeem such Bonds on August 1, 1992, in accordance with the Indenture . • Resolution No. Resolution Authorizing Execution And Delivery Of Amendment To Assessment Agreement and Tax Payment And Security Agreement Be It Resolved by the Board of Commissioners of The Housing and Redevelopment Authority In And For The City of Shakopee, Minnesota (the "Authority") , as follows" Section 1 . Recitals . 1 .01 . New Canterbury Downs, a Minnesota partnership which owns the Canterbury Downs Racetrack, and Ladbroke Racing Canterbury , Inc. , a Delaware corporation which leases and operates the racetrack ("LRC") , (the "Companies") have requested that the Authority enter into an amendment of the Assessment Agreement dated October 29, 1984 between the Authority and Minnesota Racetrack, Inc. , the previous owner of the racetrack, (the "Assessment Agreement") , establishing a minimum Assessor's Market Value for the property comprising Canterbury Downs Racetrack (the "Racetrack Property") , whereby the minimum Assessor' s Market Value for that portion of the Racetrack Property located in the City' s Tax Increment District No. 1 ("TIF District No. 1") be lowered from $19, 049, 000 to $14, 600, 000, and whereby the minimum Assessor' s Market Value for that portion of the Racetrack Property located in the City' s Tax Increment Financing District No. 4 ("TIF District No . 4") be lowered from $24, 196, 000 to $9, 800, 000, for all assessment dates from January 2, 1991 to January 2, 1994, inclusive . 1 .02 . The Authority now has outstanding $1, 915, 000 Tax Increment Revenue Refunding Bonds, Series 1984, but such bonds are payable solely from tax increment revenues derived and to be derived from certain property in TIF District No. 1 other than the Racetrack Property. 1 .03 . The Authority has, by its Resolution No. adopted on this date, authorized the immediate defeasance and payment and redemption on August 1, 1992, of all outstanding bonds of its Tax Increment Revenue Bonds dated March 1, 1985, which are payable solely from tax increments derived and to be derived from the Racetrack Property in TIF Districts No. 1 and 4 . Upon completion of such action the Authority will have no outstanding revenue bond to which tax increments derived and to be derived from its Tax Increment Financing District No. 4 are pledged. 1 .04 . Tax increments derived and to be derived from the Racetrack Property have been pledged by the Authority, to the extent necessary, to pay the principal of and interest on certain general obligation tax increment bonds of the City. However, neither the Authority nor the City has made any covenants with the holders of such outstanding general obligation tax increment bonds that would prevent the Authority from entering into the requested amendment to the Assessment Agreement, and an analysis of the debt service requirements on such bonds and the tax increments received and reasonably expected to be received for their payment, assuming the Authority enters into the requested amendment to the Assessment Agreement, indicates that such tax increments will be available at the times and in amounts sufficient to pay such debt service when due. 1 .05 . The Authority therefore has authority, and it is necessary and in the best interests of the City, Scott County, and Independent School District No. 720 (the "School District") , to enter into the requested amendment to the Assessment Agreement; provided the Company enters into a second agreement providing for: (1) the payment to the City in each of the years 1992 through 1995, of ad valorem taxes, together with other moneys, in an amount equal to $1, 500, 000 plus such additional amount as, together with the School District ' s share of each year' s tax increment, the School District would have received from tax increments derived from the Racetrack Property had the amendment to the Assessment Agreement not been entered into; and (2) security for the payment of such amounts . Section 2 . Approval of Agreements . 2 .01 . There has been presented to this Board proposed forms of: (1) an Amendment To Assessment Agreement and Assessor's Certification dated May 14, 1992 by and among the Authority and the Companies (the "Amendment") , and (2) a Tax Payment Assurance and Security Agreement dated May 14, 1992 (the "Payment Agreement") ; by and between the Authority and LRC. 2 .02 . The forms of the Amendment and Payment Agreement are approved, and the Chairman and Executive Director are authorized and directed to execute and deliver them on behalf of the Authority. 2 .03 . The Executive Director is authorized and directed to request the Scott County Assessor to execute the Assessor' s Certification attached to the Amendment . _c--5- (NI -0 +O +C a COO OO go) N-N- tN-\ `N- N.f` N-N. On O O QI`) I Z F- O N N N CO (D (D CO (D CO CO CO Lf) >' ` CI) LC) t. LC) C5 M M C5 MCD a) CO M (CS 2O O CO COMMMMMLONCO d a) t- O 0 dd a) a) a a a I\ ' d N- >`s I O T C N N N T T r T — co- a] N C O T B) L1J• n- O a) Q CO M M M d d d d d 0 0 0 (D 04 S ~ O ` d d d M Ln Lf) LO LO O O O a) O N U Q P tf)• M• COCOCOCOCOd C E as Z C Cn E Q N cY) co N N CO CO co CO CO U tn . _ N E 3 L 0) a) a_a w O ._ ,.- 4E'CN- LOO 0 T (75 ca O I- ^a ` N.N T T T T M CO CO -W .H Q o N N N T N- d d CO4-' a) '` T T T T C p N N N N N N N N O O T N >-, as U +' d N (D O O O 0 c_ >' U Ls C M CO CO d a) ....... .`- O Q 3 L() to Ln t` (—SS > U) W a) 0Z l0 OO• O O - • E C co co co °0Co -o (6 T •C Z O U a s >, Ual w r 0 a i 0 0 yr CC C A .- ca a) -o D E .UT � a) a a a a) a) a) a) a) O10 I- Q C COU Iii E O O ; O co (D M C) O O D U y E F- U_ Z f` I\ f` r� (fl a) co- co- u- > p 92 U 0 r CO � W C N N• N• N N N N N COas > pO C u_ Q C T T O O C cu E d d d d d d ddd coNCr) cD a) 7 2 6 OM N E C CD (D (D (O CD (D (D CD TLC) (D N 0) U ` T Z . U O MM (oi (oco- M (oco- Lo- cOco- T Q ,t ctlEAa) Q V C co co co co co co co co T 4-,F- CO "u N U O M a_ � O T cC O "a -0T O O L O H z 1 o 0CO CCD = 45 CC7 a) a) a) a) a) a) Oa) NCOCO O a)4.,, (I) 3 al U �' C CO CO CO CO CO CO CO CO T CO (O co ;4=O a) ` 0 N- N- t` t` h. N- f` N- LO CO CO CD cC 'C 4-,_, '-N CO- CO- CO- CO- CO- CO- CO- CO- O d d a) O N O U Q .O co co co CO co co CO CO co co co a - - > -0 a T a' o73 -a 2 0 ( 0 � Yaa)) NYN Q) a) a) ) Q) Ma) Q) OmT 0 co I CO -' OOOOOOOOLnNd a) N � ,`. 3 ca ddddddddNICO (.C) CL TO a t- 0 N N N N N N N N to d co- Ln O ,) U Tr p 6' O O O O O O O O N CO CD T U E eso C as a) a) a) a) a) a) aa) MrT a) ca) .N., v) U 1- - -c O a) 4- 0 C - a) a) a) a) a) a) a) OONLn d ClQC (j) 2! • C ; c6 t` N- N- t` t` N- N- N- O t` N a) E O O a) cu y O 2 M co co co co co co co M O co �- T X C) C5 0 as a• aaaaai oo d cn � f- . `, Y a) a) a) a) a) a) a) a) CONN a.. .0 C _ v CO co a) 2F... � UA� •- H E a) r- L W T a) O O +O+ N M Ti- LO (D t` CO (3) O T N CO p L T. C a) a) aO ) a) a) a) a) OOO c� H � L U H U ON C O = cd c� a) a) Oa) a) a) a) a) 000 O Y U N N N (� r• 65o� a) ! , -_ � � , � , � � � , fn +, s= >- ) (n C 0 rnN CO d to (D t- CO a) OC co w a) a) CT) � 7 O 0UY _D z (\I -0 O) a) 1 L C) crs O \l g E-O as 1 ON a) rC 0) T 0 cCa) u1 3- -En >+ C a) Cn A al E U co CO co co O lin C7) N am O OL CO O a) CO N I-- N in I� I,- C'o (D co CO a5 U o Z O w N- Co CO CCi C7) O• CO- C)) Co U) O Q C .- T O Cs) (D (D (D in (n (n NCO Tr C to (20_'^ C w (0 Co COd' � d- NI` I` d- rt 0 E CL W 0 T T T T T T N l_ TTTT a) V) a) Q � a) ^ co (nooinInLc) oo0o co ._jQ) c Cop N- N (ODN (0D} (LOr4- (0D coo r 10 , rn .- C ac cc; r - v T N T co cm- ct O (C a) T (I) m CO CO CO CO C) CO CO N NCO O > Co d Tr .4. Tr 't TI. Tr Tr Tt Tr (c) , o E 1 C co N D a) T a) m >' N 0 0 LO (TTn 0 r 0 0 /0 0 0 >•'T CS < CO L uj d' T 0) 1_ cO CO 0) O V V CO 2N- T N I` CO T 0) N- O- a) CU TCD N N N N N N N• ON O m � L U O Tc W Q w `) CL Q 1 a) In O O (n T O O O O co a) (6 v I d O CI) U co U L � .2 Cr) 2 Cn co- in- as a) _ Co D Cn T co �t Tr N a) m O W _ - u_ C co cr � � � �� co_ co_ N CO (D to to N 0 (C as s N c7) E d a) al W a) c7) L L T 4- a� CO � T ° a- if O rn o o o rn o• rn h. 7 E a I- (/) T N T N N N T N T o3 0 -T O ^ 0 Q • N < `1 0)^ CO CO 0 0 0 0 Tr w > 7 ,,,co05_ T Ch CO N (D O N C)al 0 to I j CO- (D CO LO o (!) (V 01 m � T = N N N N N N Cn C)CO O 0 � ' (13 a) m Oa) m LO ZEN 000 0 w � a) 0 _ C -0 a) C Co u) 13 c d' o ° mom 4- CSO as CZ- N CN CO N- N CC') Cs) al .O. r cn Cn 2 ,6 T N O_ CO N Cn 10 N 0 7 • U C I M LS t!7 41. Tr V CO CO (C L- 0 O •` 3 Y - coTrTrTrvv- in a) a) a) N O CC N a (C CC C00 V cC > U C!_ z — =' I` corn I- ja �T T OliSN 01 LO CO I- CO CA O T N N O L L d N C C7) Q) 0 CA C7) 0 0 Cn 0 0 0 lis 0 1_ O 7 (C > Cn O (3) Cn 0) CA C7) Cfl O O O 11VCE1 *9 m N N N c _0 U • rO —. — — — —. -_ 0 C } 0 ,- N CO [t LU CO N- Co co O T W 0 Q) a) C7) a) 0 () (7) (7) 0 0 > 0 0 0 (7) CA 0 a) 0 0 N N 0 U• U Y a� Z N O w I j >, L- r) cw Eo Io cO N c 0)T 0 if UJ F- I NJ V(r N «Y Z o -0 aEE � cO a. a) O � m a) a) LL a) d O T .r.- O T O O (O 00 CO CO CO z >• ~ O O CO f,- d CO Lf) CD In O O O O C +' C O d .tO N N CO N- N- (` n N a) CO O r coN N. N co- O o o O a) - 3 ctf N co O t\ O f` 1- N N N N a E m ,- 0 (40N t` N CD CO O O O o 3 CO dt d LO Lf) CD (D N o 0) CD a d O O a) as 0 as = d (D O coCD O f ' - CO Lo O O O O a) C CO ii, N d T CO O) N- 10 C a) Q CO 0) Lf) Ln V V T T c0 W r T -0 YLC) C co Y C a) E caa >- N C'11- 00 O CO f- CO PIC)) O O Ln Ln o O CT N cc Q N a0 T (y• ) O Lf) Q) N O O to O CT Q CO N N I- N Lf) I f` CO (O CO CO O f` d cO d• • CO (b CA Q) (O o CO Lf) T T O co (D (O LU IO U) N CO d• U) if) CO CD d d d- f` (` d d' CO O Dci) T T T T T T N _ T T^^ (TTJ) C) T *- co cO ^LW` ^^ -Q C� gC , CT a) (AN- f` f- N- N- Lf) OO N- E co co co N. f` N- f- f` C) !) CT o La) 1- O N N N CO CO CO (O CD CO CD CO Lf) 6 (p O a) E Lf) L(7 Lf) cO CO CO- CO CO CO 0) CO CO C C aoo Z prnO rnO rn rn rnC) rU) Nco E E w T N N N T T T T T• co 3 2 O N TO (n 0 c o U IS O a) N p T N C O a) C Q ccz a 21- ja E E13 a) ` N CO d- U) (D CO m O T N O O a) p O CT O O O) co O CT O O O Ll, LL LL a0 c rnrnO (nrna) rnrn000 IC 3 U N N N Y O =co r I C O T N CO U) (D N- c0 O O T p Lb U 0) 0) 0) rnrnrnrnrnrnoo p rnrn0000C C) rna) 00 6 r _ > N N O U 0 Y a� z • O - O O) tp l7 - A O O h Of r S S N p ONf0Cn ct m eV eV f eo OIL I O= N l7 1n m A in 1- ° ^ sr m n N .„42; Z A m coi h 0 N 0. - G h• �I IA - i0 N f N • z z. O) N o) o f O • m f c) f A (0 O m to a Qp8 m -O I� 1� Ch f A f !O O .�I r O eco n. N IN O O f v e f f m el f A to 0 !O m Of t0 N m a N N N N f •: m M N O) N ^ m pi OH II 12N a) a • a 2R r. a `o o 0p W to A to O f O A • m - O) o f 0) 0 O) � Z a •I mm A - Ps pN (y A a a,' Oto fn OO) toS Q a • ▪ s ° '�'i 8 m n rn m 0 e o gi! '4 Q o 8 '� = o 0 ri oN G� �II — - N OHi o a. U d m 1. >< o 1.13 - e o h O ZS O �" N N N N N O •1• N N N N N ` 0 U �° < gQ: r) o � w � Q: � � opo QN I- r `0 O i ,o q O IS b C a• G a o -co � 11 A — m mcg — 0 o I: 8 8 o0B loo 0 "c oo i A If) N m m Of i0 to of 1 AO O 0o f0 f a 1n oe?to m go O.'a O {0f O Ill f R f N 131!O O) f 0 f tri 0f !7 A V a1- A - aJ Ps O •�' b - m V)) 100 CO ' C � •.. •i - UI, - tV U I E a cc N < .. • 0. j8 $ 88S g $ S II8 I $ z ~o .it 7i et Of f AN CO O) x 2 SS S SpopS S CO 0 0 `� O O O - - - N C4 W. ". f NN CO ul 1:i z = z X >' ^ epi m w vi vi N O 0 2 >I c Nm -=c�i o; N ti .[ 0 gr 17. 2 >O < I! i Q 3 t ; W = C7 &zo 0 1.7. z W < � > ` o I5Go = 0 0 Z O J W ak `A3 is 0 ` Pf f * l7 A COICJ - 07 f ; P) A < 1- Q 00 80o a = —o0 8 -00 _ z0 Q u O i t 1 O mem ° 3 o u O i , 7 O o, .�, , a 9 U0LA 0I... V a$ th. 88 0 Inoo ° O !k 8 o t- co o tr- r o, o) v) r- ►- d d � o, r- r o, •- r N O IA A OI J I� 11 a I 40 OD Oi m N O' n l'nCb a `r' , CO o I - N 1 I 0, 0 01 0 rqi i rd. N. co m O Q a a 4.. Z r: o CV 07: II to oi a oC7 2 `o ; 9 '- Z 00 0 WV Co O t co co m CO a i co a m 0 W CO �i N COD 0) I m 13 Z CO moi:• N • R A to , O O a 0 Oiu.; (D 01 W A O 1 ID 4 CD `. Ali 1 C. m a Ii i 1 A 10 40 a 1 0 CZIr tfi a 0. o-, oN i N I Z 0 t e 0 e 0 es C fl. O O a in 'P; C7 Oi, O O N N C. �I1 V ~� Z a a W Q c,,_ Q U I as oIpp o, a s a, I 1 COf_ c N AA f � 16I N O mOO1 o 00 U.. ZS ►'1 •- ZI I •_0 _ Z Z 2O 5 ¢_ o ui V 2 o a UJ ¢ ¢ `—' = 0 a U. t,a 0r- m AC 0 Ti b "a O z J cco o < 5 5lif 2. x � Q5 • p ~ e g S F W r = 1- t ° B Z 1 • 2 2 c4 Ts O • 5co z 00 ►° U .6 ¢ 4 U UO < -F