Laserfiche WebLink
CITY OF CENTERVILLE, MINNESOTA <br /> RESOLUTION NO. <br /> RESOLUTION AMENDING THE TERMS OF THE CITY'S <br /> $32,250 TAX INCREMENT REVENUE NOTE, SERIES <br /> 1995A AND ITS $114,051.19 TAX INCREMENT REVENUE <br /> NOTE, SERIES 1995B AND APPROVING A PROPERTY <br /> TAX ABATEMENT FOR CERTAIN PROPERTY IN THE <br /> CITY <br /> BE IT RESOLVED BY the City Council "Council" of the City of Centerville, <br /> y ("Council") y <br /> Minnesota (the "City ") as follows: <br /> Section 1. Background. <br /> 1.01. The City approved the establishment of Tax Increment Financing District No. 1-4 <br /> (the "TIF District ") within Development District No. 1 ( "Project ") by resolution approved June <br /> 28, 1995. To facilitate development of a manufacturing facility in the TIF District, the City <br /> entered into a Contract for Private Development between the City and the Northern Forest <br /> Products, L.L.C. (the "Developer ") dated October 24, 1995 (the "Agreement "). The Contract <br /> required the Developer to construct a 14,500 square -foot facility on certain property defined in <br /> the Agreement (the "Property "), in exchange for issuance of two tax increment revenue notes as <br /> further described in this resolution. <br /> 1.02. Under Resolution No. 95 -20 approved October 25, 1995, the City issued its <br /> $32,250 Tax Increment Revenue Note, Series 1995A dated as of October 26, 1995 ( "Note 1 "), <br /> with interest at the rate of 8.5% per annum, maturing on August 1, 1998, and payable solely from <br /> Available Tax Increment as defined in the Agreement. Note 1 was issued to the Developer and <br /> assigned to Glenn R. Rehbein and Myrna L. Rehbein ( "Rehbein "), sellers of the Property, as part <br /> of the purchase price for acquisition of the of the Property by the Developer. <br /> 1.03. Under Resolution No 95 -21 approved October 25, 1995, the City also issued its <br /> $114,051.19 Tax Increment Revenue Note, Series 1995B dated November 1, 1995 ( "Note 2 "), <br /> with interest at the rate of 8.5% per annum, maturing on February 1, 2006, and payable solely <br /> from Available Tax Increment remaining after Note 1 is paid in full or terminated in accordance <br /> with its terms. Note 2 was issued to and remains held by the Developer, as reimbursement for <br /> certain Site Improvement costs incurred by the Developer along with the balance of the cost of <br /> acquisition of the Property. <br /> 1.04. The Available Tax Increment pledged to both Note 1 Note 2 (together, the <br /> "Notes ") has been insufficient to pay when due the scheduled payments on the Notes. The City, <br /> the Developer and Rehbein have determined to modify the terms of the Notes in order to remedy, <br /> in part, the insufficiency in pledged revenues. <br /> 1.05. In order to induce the Developer to construct an expansion of his manufacturing <br /> SJB- 184817v2 <br /> CE155 -7 1 <br />