HomeMy WebLinkAboutCity Council Resolution 2021-025
C ITY OF P LYMOUTH
R ESOLUTION N O. 2021-025
R ESOLUTION A UTHORIZING THE M AKING OF A L OAN IN THE A MOUNT
OF $980,000 TO THE H OUSING AND R EDEVELOPMENT A UTHORITY,
FOR THE P URPOSE OF R EDEEMING C ERTAIN O UTSTANDING B ONDS
WHEREAS, the Housing and Redevelopment Authority (the "Authority") of the City of Plymouth,
Minnesota (the "City"), has heretofore issued its Governmental Housing Project Refunding Bonds (City
of Plymouth, Minnesota, General Obligation), Series 2011A, dated February 23, 2011 (the "Bonds"),
which were issued to refinance certain prior bonds related to the construction of an elderly rental
housing development in the City (the “Project”), as provided in a resolution of the Authority, dated
January 27, 2011, authorizing their issuance (the "Resolution"); and
WHEREAS, pursuant to the Resolution, Bonds maturing on and after October 1, 2021 are callable
on October 1, 2020, and on any date thereafter, at a price of par plus accrued interest to the date of
redemption; and
WHEREAS, $980,000 in principal amount of the Bonds remain outstanding (the "Outstanding
Bonds"); and
WHEREAS, the Authority wishes to redeem the Outstanding Bonds in order to achieve debt
service savings, and has requested that the City assist in the redemption by the making of a loan to the
Authority, the proceeds of which will be used to redeem the Outstanding Bonds:
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA:
The City shall loan $980,000 from its General Capital Project Fund (Fund 400) to the Authority
for the purpose of redeeming the Outstanding Bonds (the "Loan"), pursuant to this Resolution. The Loan
shall bear interest at a rate of 1%, and be payable in the amounts and on the dates as shown in the
schedule attached hereto as Exhibit A. The Authority shall repay the Loan from the net revenues of the
Project, which were pledged to the payment of the Bonds. In the event the net revenues of the Project
are insufficient for the payment of the principal and interest of the Loan, the Authority shall use any of
its revenues available for such payment.
APPROVED by the City Council on this 26th day of January, 2021.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I
compared the foregoing resolution adopted at a meeting of the Plymouth City Council on January 26, 2021 with the
original thereof on file in my office, and the same is a correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________day of
__________________, __________.
____________________________________
City Clerk
City of Plymouth, Minnesota
$980,000 Governmental Housing Project Loan
Redemption of HRA's Governmental Housing Project Refunding Bonds, Series 2011A
Dated: March 5, 2021
Loan Repayment Schedule - 1% Fixed Rate
DatePrincipalInterestTotal P&IFiscal Total
3/5/2021 - - - -
10/1/2021 321,000.00 5,607.78 326,607.78 326,607.78
4/1/2022 - 3,295.00 3,295.00 -
Exhibit A
10/1/2022 328,000.00 3,295.00 331,295.00 334,590.00
4/1/2023 - 1,655.00 1,655.00 -
10/1/2023 331,000.00 1,655.00 332,655.00 334,310.00
Total 980,000.00 15,507.78 995,507.78 995,507.78
HRA Debt Service Savings Comparison
2011A Plus:
Interest to New Loan Net New Debt Old Debt
Fiscal YearRedemptionP&IServiceServiceNet Savings
10/1/2021 12,934.93 326,607.78 339,542.71 350,237.50 10,694.79
10/1/2022 - 334,590.00 334,590.00 345,637.50 11,047.50
10/1/2023 - 334,310.00 334,310.00 345,887.50 11,577.50
Total 12,934.93 995,507.78 1,008,442.71 1,041,762.50 33,319.79