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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 09-23-2021Housing and Redevelopment Authority 1 of 2 September 23, 2021 CITY OF PLYMOUTH AGENDA Regular Housing and Redevelopment Authority September 23, 2021, 7:00 PM 1. CALL TO ORDER 2. PUBLIC FORUM—Individuals may address the HRA about any item not contained on the regular agenda. A maximum of 15 minutes is allotted for the Forum. If the full 15 minutes are not needed for the Forum, the HRA will continue with the agenda. The HRA will take no official action on items discussed at the Forum, with the exception of referral to staff for future report. 3. APPROVE AGENDA —HRA members may add items to the agenda for discussion purposes or staff direction only. The HRA will not normally take official action on items added to the agenda. 4. CONSENT AGENDA —These items are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless HRA member or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. 4.1 Approve proposed HRA minutes Housing & Redevelopment Authority Minutes 08-19-2021.pdf 4.2 Accept Plymouth Towne Square monthly housing report PTS Monthly Report.pdf 4.3 Accept Vicksburg Crossing monthly housing report Vicksburg Crossing Monthly Report.pdf 4.4 Vicksburg Crossing Window Project (2021) Change Order No. 1 Vicksburg Crossing Window Project Change Order #1 -9-23-21.pdf Resolution 2021-16 4.5 HRA Executive Director Appointment 5. PUBLIC HEARINGS 5.1 Proposed Changes to the Housing Choice Voucher (HCV) Administrative Plan and Submission of HUD-50077-CR Proposed Administrative Plan Changes HRA Resolution 2021-14 HCV Administrative Plan Changes HUD-50077-CR 2022 1 Housing and Redevelopment Authority 2 of 2 September 23, 2021 6. NEW BUSINESS 6.1 2022-2023 HRA Budgets HRA Levy History 2022 HRA budgets HRA Reserves HCV Reserve Analysis. 6.2 Vicksburg Crossing bond refunding bid award Draft Sale Resolution 2021-18 6.3 Tax Increment District 7-7 Interfund Loan. Resolution 2021-17 7. UPDATES 8. ADJOURNMENT 2 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:4.1 To:Housing and Redevelopment Authority Prepared by:Tina Beckfeld Reviewed by:Steve Juetten, Executive Director of HRA Item:Approve proposed HRA minutes 1. Action Requested: Approve the attached minutes from regular HRA meeting held on July 22, 2021. 2. Background: N/A 3. Budget Impact: NA 4. Attachments: Housing & Redevelopment Authority Minutes 08-19-2021.pdf 3 PROPOSED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY August 19, 2021 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Robert Huddleston, James Williams, Wayne Peterson, Jeff Kulaszewicz, and Aqueelah Whitfield STAFF PRESENT: HRA Manager Jim Barnes, Community Development Coordinator Haily Hedblom, Graduate Engineer Griffin Dempsey, and Permit Technician Tina Beckfeld OTHERS PRESENT: Jody Boedigheimer of Grace Management, Joel Spoolheim of Outreach Development Corporation ABSENT: Commissioner Lucas Larson 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 p.m. 2. PUBLIC FORUM Chair Soderberg opened the Public Forum. Outreach Development Corporation representative Joel Spoonheim thanked the HRA Board for considering the Plymouth Renter Protection Ordinance. He suggested some revisions could be made in the wording to make the intent clearer. Mr. Spoonheim concerns included changing the language, so the ordinance apply to all properties and not just the ones that have been sold; increase the protection period; and review wording to ensure the full time is provided to tenants. HRA Manager Barnes asked if he will be submitting written comments to that effect. Mr. Spoonheim replied yes. Written comments will be supplied to the board prior to the next meeting. Chair Soderberg closed the Public Forum. 3. APPROVE AGENDA MOTION by Commissioner Kulaszewicz, seconded by Commissioner Williams, to approve the Agenda. Vote. 6 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4 Proposed Minutes Plymouth Housing and Redevelopment Authority August 19, 2021 Page 2 4.1 Approve proposed minutes from July 22, 2021 4.2 Plymouth Towne Square. Accept monthly housing reports 4.3 Vicksburg Crossing. Accept monthly housing reports MOTION by Commissioner Kulaszewicz, seconded by Commissioner Williams, to approve the Consent Agenda. Vote. 6 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS 6. NEW BUSINESS 6.1 2020 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER) and Notice of Annual Citizen Participation Meetings Community Development Coordinator Hedblom gave an overview of the staff report. Chair Soderberg asked if there were any CDBG activities from the 2020 program year that indicate a need for reconsideration from the board, or that could be improved. Community Development Coordinator Hedblom answered the Affordable Housing Land Trust is the only activity from the 2020 program year that failed to make notable progress towards their outlined goal. Hedblom explained that the current housing market has played a significant role in delaying success in this area and that HRA staff is working with the sub-grantee to identify the best use of funds for 2021. All other CDBG activities are currently on track to meet the goals described in the five-year Consolidated Action plan. HRA Manager Barnes stated he is pleased with the continued services the HRA provides through CDBG program funding. He mentioned the sub-grantee for the Affordable Housing Land Trust, Homes Within Reach, currently has an accepted purchase agreement for a home in Plymouth. The city will have its first land trust home in the 2021 CDBG program year. Commissioner Williams inquired what impact it would have on the HRA budget if the board did not accept CDBG funds. HRA Manager Barnes explained that the CDBG program is federally funded and has no impact on the HRA budget. If the city were to not accept CDBG funds, the HRA would not be able to provide the same services as it presently does though CDBG. To continue 5 Proposed Minutes Plymouth Housing and Redevelopment Authority August 19, 2021 Page 3 to provide the programs without CDBG funding would then affect the HRA tax levy and budget. MOTION by Commissioner Huddleston, seconded by Commissioner Peterson, to approve the HRA Resolution 2021-14 to recommend approval and submission of the fiscal year 2020 Consolidated Annual Performance and Evaluation Report (CAPER). Vote. 6 Ayes. MOTION passed unanimously. 7. UPDATES Four Seasons Mall Cranberry Ridge Element Valor Place Vicksburg Crossing Windows Affordable Housing Land Trust Executive Director Steve Juetten’s retirement 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 7:25 p.m. 6 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:4.2 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Danette Parr, HRA Executive Director Item:Accept Plymouth Towne Square monthly housing report 1. Action Requested: Accept attached Plymouth Towne Square monthly housing report. 2. Background: Plymouth Towne Square Monthly Report. 3. Budget Impact: NA 4. Attachments: PTS Monthly Report.pdf 7 8 9 10 11 12 13 14 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:4.3 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Danette Parr, HRA Executive Director Item:Accept Vicksburg Crossing monthly housing report 1. Action Requested: Accept attached Vicksburg Crossing monthly housing report. 2. Background: Accept Vicksburg Crossing monthly housing report. 3. Budget Impact: NA 4. Attachments: Vicksburg Crossing Monthly Report.pdf 15 16 17 18 19 20 21 22 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:4.4 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Steve Juetten, Executive Director of HRA Item:Vicksburg Crossing Window Project (2021) Change Order No. 1 1. Action Requested: Adopt the resolution approving change order number 1. 2. Background: The Board approved the contract between the Plymouth Housing and Redevelopment Authority (HRA) and Intelligent Design on January 28, 2021 in the amount of $707,793. Renovation projects that involve uncovering portions of the building that are not able to be seen prior to the start of the project often times encounter unforeseen damage that requires repair. Unfortunately this is the case for the Vicksburg Crossing window project. The contractor identified deteriorated trim boards around 48 of the Magic Pac HVAC units and recommended replacement of the boards with a fiber cement board. Staff approved this change as it provided a cost savings due to fact that the contractor was already on site and had the necessary equipment to make the repairs. At this point we do not anticipate any additional change orders for the project. 3. Budget Impact: There will be an increase to the project budget of $11,040. The adjusted overal contract amount is $718,833. 4. Attachments: Vicksburg Crossing Window Project Change Order #1 -9-23-21.pdf Resolution 2021-16 23 24 25 CITY OF PLYMOUTH HRA RESOLUTION 2021-16 A RESOLUTION TO APPROVE CHANGE ORDER NUMBER 1 FOR THE VICKSBURG CROSSING WINDOW PROJECT WHEREAS, thePlymouth Housing and Redevelopment Authority (HRA) Board approved a Contract between the HRA and Intelligent Design, Inc. to replace and install new windows to Vicksburg Crossing in the amount of $707,793 ; and WHEREAS, Intelligent Design, Inc. has requested a change in the contract to address items that were not included in the contract. NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF PLYMOUTH,MINNESOTA, that it herebyapproveschange order number one and more specifically the items and costs listed below: Item Description Cost 1 Remove trim around 48 HVAC units and replace with 4 inch fiber board trim $11,040 TOTAL $11,040.00 BE IT FURTHER RESOLVED that the new contract amount is $718,833.00. Approved this 23rd day of September, 2021 by the Plymouth Housing and Redevelopment Authority. 26 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:4.5 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Steve Juetten, Community Development Director Item:HRA Executive Director Appointment 1. Action Requested: Confirm the Appointment of Danette Parr, Community Development Director as the Housing and Redevelopment Authority Executive Director. 2. Background: The current Housing and Redevelopment Authority's (HRA) Executive Director, Steve Juetten, retired on September 8, 2021. The City Manager has hired Danette Parr as the new Community Development Director and is recommending the HRA Board appoint her as the new HRA Executive Director. Appointing the Community Development Director as the HRA Executive Director is long standing practice in the City. 3. Budget Impact: There is no budget impact. 4. Attachments: 27 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:5.1 To:Housing and Redevelopment Authority Prepared by:Denise Whalen, Support Services Manager Reviewed by:Maria Solano, Deputy City Manager Item:Proposed Changes to the Housing Choice Voucher (HCV) Administrative Plan and Submission of HUD-50077-CR 1. Action Requested: Staff recommends that after considering any public comments, the Housing and Redevelopment Authority Board of Commissioners adopt the attached resolution and authorize submission of HUD-50077-CR to Housing and Urban Development (HUD). 2. Background: As a qualified public housing agency, Plymouth HRA is required to submit a signed Civil Rights Certification (50077 CR) to the local Housing and Urban Development (HUD) office and hold a public hearing for the Housing Choice Voucher (HCV) Administrative Plan on an annual basis. A public hearing must be held; members of a resident advisory board must have the opportunity to review and comment on the Plan; and, the HRA Board of Commissioners must approve the Plan. As required, a forty-five day notice was published in the Plymouth Sun-Sailor for the public hearing to be held Thursday, September 23, 2021. The proposed changes were submitted to the members of the HRA’s HCV Resident Advisory Board for review and comment. No comments were received. The Housing Choice Voucher Administration Plan is located on the city’s website at www.plymouthmn.gov under Departments / Community Development / Housing / Section 8 and HUD Notices which are referenced for many of the proposed changes and can be found at https://www.hud.gov/program_offices/public_indian_housing/publications/notices. PROPOSED CHANGES: Staff is proposing the following policy changes to the Administrative Plan: ** Chapter 8, Exhibit 8-1: Overview of HUD Housing Quality Standards (Page 8-19). Revise due to change of demonstration program. ** Chapter 8, Exhibit 8-2: Summary of Tenant Preference Areas Related to Housing Quality (Page 8-22). Revise due to change of demonstration program. ** Chapter 16, 16-III-B. Program Administration – Informal Reviews – Informal Review Procedures – HRA Policy (Page 16-7). Recommended since Plymouth HRA serves as hearing officer for St. Louis Park they agreed to reciprocate. 28 ** Chapter 16, 16-III-C. Program Administration – Informal Hearings for Participants – Informal Hearing Officer (Page 16-11). Recommended since Plymouth HRA serves as hearing officer for St. Louis Park they agreed to reciprocate. 3. Budget Impact: N/A 4. Attachments: Proposed Administrative Plan Changes HRA Resolution 2021-14 HCV Administrative Plan Changes HUD-50077-CR 2022 29 30 31 32 33 34 35 36 CITY OF PLYMOUTH HRA RESOLUTION 2021-14 A RESOLUTION TO APPROVE THE PROPOSED CHANGES TO THE ADMINISTRATIVE PLAN AND AUTHORIZE SUBMISSION OF 50077 CR TO HOUSING AND URBAN DEVELOPMENT (HUD) WHEREAS, Housing and Redevelopment Authority (HRA) in and for the City of Plymouth, Minnesota operates a Housing Choice Voucher Program; and, WHEREAS, the HRA has established a Resident Advisory Board, the membership of which represents the residents assisted by the HRA; and WHEREAS, the HRA made the proposed changes to the Administrative Plan and all information relevant to the public hearing available for public inspection at least 45 days before the hearing, published a notice that a hearing would be held and conducted a hearing to discuss the proposed changes to the Administrative Plan and invited public comment; and, WHEREAS, the Resident Advisory Board had an opportunity to review and comment on the changes to the policies and programs before implementation by the HRA; and, WHEREAS, the Administrative Plan and all attachments have been and will continue to be available at all times and for public inspection at the primary business office of the HRA and posted on the city’s website; and, WHEREAS, the Plymouth HRA is required to complete and submit a signed 50077 CR, Civil Rights Certification on an annual basis. NOW, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTORITY OF THE CITY OF PLYMOUTH, MINNESOTA, that the public hearing was h eld and the proposed changes to the Administrative Plan were duly reviewed and approved by the HRA Board. As such, staff is authorized to submit the Civil Rights Certification, 50077 CR to HUD. Approved this 23rd day of September, 2021 by the Housing and Redevelopment Authority of Plymouth, Minnesota. _________________________________ Michelle Soderberg, Chair _________________________________ Danette Parr, Executive Director 37 ________________________________________________________________________________________________________________________ Previous version is obsolete Page 1 of 1 form HUD-50077-CR (3/31/2024) Civil Rights Certification (Qualified PHAs) U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB Approval No. 2577-0226 Expires 3/31/2024 Civil Rights Certification Annual Certification and Board Resolution Acting on behalf of the Board of Commissioners of the Public Housing Agency (PHA) listed below, as its Chairperson or other authorized PHA official if there is no Board of Commissioners, I approve the submission of the 5-Year PHA Plan , hereinafter referred to as” the Plan”, of which this document is a part, and make the following certification and agreements with the Department of Housing and Urban Development (HUD) for the fiscal year beginning January 1, 2022 in which the PHA receives assistance under 42 U.S.C. 1437f and/or 1437g in connection with the mission, goals, and objectives of the public housing agency and implementation thereof: The PHA certifies that it will carry out the public housing program of the agency in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d—4), the Fair Housing Act (42 U.S.C. 3601-19), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), title II of the Americans with Disabilities Act (42 U.S.C. 12101 et seq.), and other applicable civil rights requirements and that it will affirmatively further fair housing in the administration of the program. In addition, if it administers a Housing Choice Voucher Program, the PHA certifies that it will administer the program in conformity with the Fair Housing Act, title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, title II of the Americans with Disabilities Act, and other applicable civil rights requirements, and that it will affirmatively further fair housing in the administration of the program. The PHA will affirmatively further fair housing, which means that it will take meaningful actions to further the goals identified in the Assessment of Fair Housing (AFH) conducted in accordance with the requirements of 24 CFR § 5.150 through 5.180, that it will take no action that is materially inconsistent with its obligation to affirmatively further fair housing, and that it will address fair housing issues and contributing factors in its programs, in accordance with 24 CFR § 903.7(o)(3). The PHA will fulfill the requirements at 24 CFR § 903.7(o) and 24 CFR § 903.15(d). Until such time as the PHA is required to submit an AFH, the PHA will fulfill the requirements at 24 CFR § 903.7(o) promulgated prior to August 17, 2015, which means that it examines its programs or proposed programs; identifies any impediments to fair housing choice within those programs; addresses those impediments in a reasonable fashion in view of the resources available; works with local jurisdictions to implement any of the jurisdiction’s initiatives to affirmatively further fair housing that require the PHA’s involvement; and maintains records reflecting these analyses and actions. Plymouth Housing and Redevelopment Authority _______________MN170____________________ PHA Name PHA Number/HA Code I hereby certify that all the statement above, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Name of Executive Director: Danette Parr Name of Board Chairperson: Michelle Soderberg Signature Date 9/23/2021 Signature Date 9/23/2021 The United States Department of Housing and Urban Development is authorized to collect the information requested in this form by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12, Code of Federal Regulations. Responses to the collection of information are required to obtain a benefit or to retain a benefit. The information requested does not lend itself to confidentiality. The information is collected to ensure that PHAs carry out applicable civil rights requirements. Public reporting burden for this information collection is estimated to average 0.16 hours per response, including the time f or reviewing instructions, searching existing data sources, gathering, and maintaining the data needed, and compl eting and reviewing the collection of information. HUD may not collect this information, and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number. 38 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:6.1 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Steve Juetten, Executive Director of HRA Item:2022-2023 HRA Budgets 1. Action Requested: Discuss HRA budgets and recommend the City Council approve the 2022 HRA budgets. 2. Background: In the summer of each year, staff begins the process of developing the following year’s budget. The city follows a two-year budgeting program to better prepare for expenditures in the future, which will aid in long-term strategic planning. In July and August, staff reviewed the 2021 budget to ensure they were in line with revenues and expenditures, which they are. The 2022 budget is the first budget year of the 2022-2023 biennial budget process. The 2023 budget is presented in concept, which means the board will not adopt the listed budget. The HRA budgets are included in the budgets submitted to the City Council. HRA activities are covered by three separate program budgets: the Community Development Block Grant (CDBG), Housing Choice Voucher (HCV), and the HRA General Fund. The CDBG budget is supported primarily by federal funds, except for some overhead (such as allocations for data processing and facilities management), which are funded through the HRA property tax levy. The HCV program is supported entirely with federal dollars and the HRA General fund is supported almost entirely by property taxes. The senior building budgets will be reviewed in November. The Council traditionally adopts the HRA’s budget as part of the overall City budget. The Council has authority over the amount of the HRA property tax levy, so ultimately they control the main revenue source for many HRA programs under the General Fund. The HRA has authority over the HRA General Fund and HCV program budgets; however, the City Council is the Grantee for the CDBG program so they have more authority over that program budget. For the 2022 budget year, the HRA overall tax levy is proposed to be $618,953, which is approximately $12,136 (0.73%) more than 2021. The increase is not tied to one particular line item, rather it reflects increases in multiple areas including professional services, salaries and senior building assistance. CDBG (250) There are no significant changes to the CDBG budget being proposed for 2022. Staff is anticipating this year’s award to be similar to the 2021 allocation, which was $295,215. The actual amount will 39 not be known until the second quarter of calendar year 2022. The 2022 property tax support for this budget is $7,963, which is approximately $1,000 higher than the previous year’s budget. HOUSING CHOICE VOUCHER (254) The Housing Choice Voucher budget reflects the continued operation of the housing choice voucher program. At this time, staff does not know what the funding allocation will be from Housing and Urban Development (HUD) for 2022. There are sufficient funds in the unrestricted net assets account to cover any shortfall in administrative expenses for the 2021 budget. Staff continues to monitor revenues and expenditures closely for 2021. The HAP funding for 2021 is funded at 100 percent for the year. The administrative fees are funded at 84.65 percent for January through June and 82 percent for July through December. The estimated Unrestricted Net Assets (UNA) spreadsheet showing estimated Revenue and Expenditures has been attached for information. HRA General Fund (258) The overall revenue for the 2022 General fund budget has increased by approximately $14,000. This is largely due to an increase in the levy. Expenditures have increased approximately $45,000 from last year’s budget. The primary reasons include transfers out to the HRA reserves, an increase in senior building assistance and not receiving an offset credit for risk management. The later item indicates that we did not have any insurance claims related to the senior building in 2021. However, we will have claims that will be reflected in the 2023 budget. 3. Budget Impact: The HRA levy is proposed to increase approximately $12,000. 4. Attachments: HRA Levy History 2022 HRA budgets HRA Reserves HCV Reserve Analysis. 40 HRA LEVY HISTORY Levy Year Amount Percent Increase from prior year 2022(proposed)$618,953 2.0% 2021 $606,817 0.73% 2020 $602,339 2.0% 2019 $590,528 1.7% 2018 $580,519 1.6% 2017 $571,379 1.9% 2016 $560,771 1.7% 2015 $551,277 0% 2014 $551,277 0% 2013 $551,277 0% 2012 $551,277 0% 2011 $551,277 0% 2010 $551,277 0% 2009 $551,277 5.11% 2008 $524,477 4.14% 2007 $503,617 (7.22%) 2006 $542,835 (10.65%) 2005 $607,556 4.33% 41 42 43 44 45 46 47 Fund Balance Summaries July 31, 2021 Prepared on: 8/9/2021 HRA Community Economic General Section 8 Development Development 258 254 230 234 Fund Balance - Beginning 1,640,316.36 559,410.43 62,449.88 123,879.22 Revenues - 7/31/2021 1,573,914.48 1,894,235.42 (512.41) 1,158.20 Expenses - 7/31/2021 (2,091,501.89) (1,919,025.45) (1.82) (3.70) Fund Balance - 7/31/2021 1,122,728.95 534,620.40 61,935.65 125,033.72 Less Restricted for: HRA General: Current Year Budget x 40%(259,002.00) LHIA Funds to be received from Met Coun 500,000.00 Commitments: Noah Properties Reserve Section 8: 2 months expenditures (500,923.17) State Funded Rehabilitation Loans - 201 (2,185.89) State Funded 1st Time Homebuyer - 211 (23,117.62) Unrestricted Fund Balance 1,338,423.44 Available Fund Balance 1,313,119.94 33,697.23 61,935.65 125,033.72 TIF 1-1 TIF 1-2 TIF 1-3 TIF 7-4 TIF 7-5A TIF 7-6 THAP TIF 7-7 TIF 7-8 TIF 7-9 TIF 7-10 427 428 429 422 423 424 425 426 432 433 434 Fund Balance - Beginning (961.70) 22,804.23 239,122.96 1,592,739.27 (1,064.68) 1,819,239.89 70,446.14 735,198.31 104,911.79 3,755.85 (170.39) Revenues - 7/31/2021 12.91 24,882.42 97,378.14 175,577.56 14.16 183,811.57 (574.47) 129,135.39 220,909.13 (107.96) 18,931.03 Expenses - 7/31/2021 (439.81) (12,336.61) (95,004.56) (485.96) (439.82) (156,805.00) (441.80) (621,758.29) (199,742.24) (9,835.14) (261,730.08) Fund Balance - 7/31/2021 (1,388.60) 35,350.04 241,496.54 1,767,830.87 (1,490.34) 1,846,246.46 69,429.87 242,575.41 126,078.68 (6,187.25) (242,969.44) TIF 1-1 TIF 7-5A Debt Service Debt Service 308 310 Fund Balance - Beginning 956,643.48 1,994.18 Revenues - 7/31/2021 120,901.63 118,792.35 Expenses - 7/31/2021 (28.62) (274,531.26) Fund Balance - 7/31/2021 1,077,516.49 (153,744.73) Commitments: Cranberry Ridge Loan TIF 7-6 Cranberry Ridge Fee Waiver Cranberry Ridge Loan TIF 7-7 - - - - - - - - - - - Total Fund Balance by District 1,076,127.89 35,350.04 241,496.54 1,767,830.87 (155,235.07) 1,846,246.46 69,429.87 242,575.41 126,078.68 (6,187.25) (242,969.44) Plymouth Towne Vicksburg Square Crossing 850 851 Repair and Replacement Cash Balance 6/30 743,148.85 835,733.10 Repair and Replacement Cash Balance 743,998.85 836,584.10 Debt Service Cash Balance 6/30 125,220.47 (141,058.73) Half of the Year-End Cash Transfer - 620,300.00 Debt Service Cash Balance 125,220.47 479,241.27 Operating Cash Balance as of 5/31 88,516.00 910,945.00 Half of the Year-End Cash Transfer - (620,300.00) Operating Cash Balance 88,516.00 290,645.00 Total Cash Balance 957,735.32 1,606,470.37 HRA Funds Senior Buildings Tax Increment Funds O:\HOUSING\HRA\BUDGET\HRA Reserves 2021 - Updated 8-9-21 48 8/27/2021 Budget 2013*2014*2015*2016*2017*2018*2019*2020*2021**2022***2023****2024 Estimated Admin Revenues***236,441.19$ 256,348.11$ 274,336.63$ 274,049.50$ 260,488.63$ 281,119.63$ 276,422.32$ 301,434.79$ 257,155.00$ 318,925.00$ 323,850.00$ 323,850.00$ Estimated Admin Expenses****284,444.00$ 252,716.69$ 244,137.43$ 272,848.38$ 271,660.36$ 272,731.44$ 273,894.18$ 310,074.26$ 304,279.00$ 300,584.00$ 302,872.00$ 310,443.80$ Voucher Overage HAP (15,037.40)$ (48,002.81)$ 3,631.42$ 30,199.20$ 1,201.12$ (11,171.73)$ 8,388.19$ 2,528.14$ (8,639.47)$ (47,124.00)$ 18,341.00$ 20,978.00$ 13,406.20$ 12/31/1015 12/31/1016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Estimated UNA Balance 559,136.64$ 560,530.22$ 549,358.49$ 542,709.28$ 545,237.37$ 554,363.37$ 507,239.37$ 525,580.37$ 546,558.37$ 559,964.57$ * 2013, 2014, 2015, 2016, 2017, 2018, 2019 and 2020 revenue and expenses actual ** 2021 based on adopted budget ***2022 based on proposed budget ****2023 based on concept budget Revenue (Admin Port, HUD Dir Admin, Main Admin, 1/2 Fraud Recovery + Interest) Expense (Admin Expenses and Audit & Port Out Admin Fees) ^ Expense Inflation factor 2.5% Note: Because of existing Covid funds left to expend the projected negative balance of $47,124 should be much less. Currently as of 8/27/21 the negative balance amount is $12,587. 49 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:6.2 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Danette Parr, HRA Executive Director Item:Vicksburg Crossing bond refunding bid award 1. Action Requested: Adopt a resolution awarding the sale of $7,235,000 Governmental Housing Project Refunding Bonds - Series 2021A. 2. Background: The City’s financial advisor, Ehlers & Associates Inc., periodically provides updates on potential refunding opportunities. It was determined that with historically low interest rates, savings would result by selling refunding bonds and paying off the existing bond issue. On July 27, 2021, the HRA authorized Ehler’s & Associates Inc. to move forward with the solicitation of bids and adopted a resolution calling for the sale of $7,235,000 Governmental Housing Project Refunding Bonds (Series 2021A). While the market has moved slightly since this date it is still anticipated that the overall savings will be between $577,000 and $855,800, which is a 6.7%-9.9% savings over the remaining life of the bonds. Moody’s Investor Services and Standard and Poors has rated the bonds and reaffirmed our Aaa & AAA rating respectively. Actual bid data will be presented at the meeting on September 23, 2021 along with the final adopting resolution. 3. Budget Impact: The projected savings to the project is estimated to be between $577,000 - $855,800. 4. Attachments: Draft Sale Resolution 2021-18 50 71066904v1 EXTRACT OF MINUTES OF MEETING OF THE BOARD OF COMMISSIONERS HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA HELD: September 23, 2021 Pursuant to due call and notice thereof, a regular or special meeting of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Plymouth, Hennepin County, Minnesota, was duly called and held at the City Hall, in Plymouth, Minnesota, on September 23, 2021, commencing at 7:00 P.M., for the purpose, in part, of authorizing the issuance and sale of $7,235,000 Governmental Housing Project Refunding Bonds (City of Plymouth, Minnesota General Obligation), Series 2021A. The following members were present: and the following were absent: Commissioner ___________ introduced the following resolution and moved its adoption: HRA RESOLUTION NO. 2021-18 RESOLUTION AWARDING THE SALE OF $7,235,000 GOVERNMENTAL HOUSING PROJECT REFUNDING BONDS (CITY OF PLYMOUTH, MINNESOTA GENERAL OBLIGATION), SERIES 2021A; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY AND PROVIDING FOR THEIR PAYMENT A. WHEREAS, pursuant to Minnesota Statutes, Sections 469.090 to 469.1081, the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota (the "Authority") is authorized to exercise the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") and under the Act the Authority is authorized to carry out housing development projects to provide affordable housing to elderly persons and persons of low and moderate income; and B. WHEREAS, pursuant to Minnesota Statutes, Section 469.034, the Authority authorized the issuance of $9,890,000 Governmental Housing Project Refunding Bonds (City of Plymouth, Minnesota General Obligation), Series 2012A, dated April 5, 2012 (the "Prior Bonds"), which were issued to refinance a qualified housing development project (the "Project") in the City of Plymouth, Minnesota (the "City); and C. WHEREAS, a "qualified housing development project" is defined as a housing development project providing housing either for the elderly or for individuals and families with incomes not greater than 80% of the median income for the standard metropolitan statistical area in which the project is located, with certain limited exceptions defined in Minnesota Statutes, Section 469.034; and 51 71066904v1 2 D. WHEREAS, the Board of Commissioners of the Authority has heretofore determined and declared that it is necessary and expedient to provide moneys for a current refunding of the Prior Bonds which mature on and after February 1, 2023; and E. WHEREAS, $7,110,000 aggregate principal amount of the Prior Bonds which mature on and after February 1, 2023, is callable on February 1, 2022 (the "Refunded Bonds") at a price of par plus accrued interest, as provided in the resolution adopted by the Board of Commissioners, on March 13, 2012, which authorized the issuance of the Prior Bonds (the "Prior Resolution"); and the refunding of the Refunded Bonds is consistent with covenants made with the holders thereof, and is necessary and desirable for the reduction of debt service cost to the Authority; and F. WHEREAS, the Board of Commissioners herby determines and declares that it is necessary and expedient to issue $7,235,000 Governmental Housing Project Refunding Bonds (City of Plymouth, Minnesota General Obligation), Series 2021A) (the "Bonds" or, individually, a "Bond"), pursuant to Minnesota Statutes, Chapter 475, the proceeds of which will be used for a current refunding of the Refunded Bonds; and G. WHEREAS, the Authority has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent municipal advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Ehlers; and H. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the Interim Finance Manager for the City, or designee, at the offices of Ehlers at 10:0 A.M. on September 23, 2021 pursuant to the Preliminary Official Statement for the Bonds, dated September 9, 2021; and I. WHEREAS, it is in the best interests of the Authority that the Bonds be issued in book-entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED By the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota, as follows: 1. Acceptance of Offer. The proposal of ______________________________ (the "Purchaser"), to purchase the Bonds, in accordance with the Preliminary Official Statement established for the Bonds, at the rates of interest hereinafter set forth, and to pay therefor the sum of $__________, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to the Purchaser. The Interim Finance Manager for the City, or designee, is directed to retain the deposit of the Purchaser. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities; Term Bond Option. The Bonds shall be dated November 3, 2021, as the date of original issue, shall be issued forthwith on or after such date in fully registered form, shall be numbered from R-1 upward in the denomination 52 71066904v1 3 of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations") and shall mature on February 1 in the years and amounts as follows: Year Amount Year Amount 2023 $2030 $ 2024 2031 2025 2032 2026 2033 2027 2034 2028 2035 2029 As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption and final maturity amounts conforming to the foregoing principal repayment schedule, and corresponding additions may be made to the provisions of the applicable Bond(s). (b) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the Authority nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the Authority, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or 53 71066904v1 4 premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the Authority may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The Authority and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the Authority's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or Authority, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book- entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the Authority or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the Authority or the Bond Registrar may establish a special record date for such consent or other action. The Authority or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record 54 71066904v1 5 date not less than fifteen calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/Bond Registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (c) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the Authority and discharging its responsibilities with respect thereto under applicable law. The Authority may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the Authority or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the Authority, is willing and able to assume such functions upon reasonable or customary terms, or if the Authority determines that it is in the best interests of the Authority or the Beneficial Owners of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this section shall limit or restrict the provisions of paragraph 10. (d) Letter of Representation. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purpose; Refunding Findings. The Bonds shall provide funds for a current refunding of the Refunded Bonds (the "Refunding"). It is hereby found and determined that the Refunding is pursuant to Minnesota Statutes, Section 475.67 and shall result in a reduction of debt service cost to the Authority. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022 calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the maturity years as follows: 55 71066904v1 6 Maturity Year Interest Rate Maturity Year Interest Rate 2023 %2030 2024 2031 2025 2032 2026 2033 2027 2034 2028 2035 2029 5. Optional Redemption. All Bonds maturing on February 1, 2030, and thereafter shall be subject to redemption and prepayment at the option of the Authority on February 1, 2029, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the Authority and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds not more than sixty (60) days and not fewer than thirty (30) days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of the Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Registrar (with, if the Authority or Registrar so requires, a written instrument of transfer in form satisfactory to the Authority and Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Authority shall execute (if necessary) and the Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. The Deputy City Manager, in Plymouth, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the Authority and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly 56 71066904v1 7 appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA GENERAL OBLIGATION HOUSING REVENUE REFUNDING BOND (CITY OF PLYMOUTH, MINNESOTA, GENERAL OBLIGATION), SERIES 2021A R-__$__________ Interest Rate Maturity Date Date of Original Issue CUSIP %February 1, 20 November 3, 2021 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The Housing and Redevelopment Authority in and for the City of Plymouth,Hennepin County, Minnesota (the "Authority") certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 2022 at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of Deputy City Manager, in Plymouth, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Authority. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Authority maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close 57 71066904v1 8 of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution, and surrender of this Bond shall not be required for payment of the redemption price upon a partial redemption of this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. Optional Redemption. The Bonds of this issue (the "Bonds") maturing on February 1, 2030, and thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1, 2029, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds not more than sixty (60) days and not fewer than thirty (30) days prior to the date fixed for redemption. Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear interest on the specified redemption date, provided funds for their redemption have been duly deposited. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of the Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized 58 71066904v1 9 Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the aggregate principal amount of $7,235,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to a resolution adopted by the Board of Commissioners of the Authority on September 23, 2021, and a resolution adopted by the City Council of the City of Plymouth, Hennepin County, Minnesota (the "City"), on July 27, 2021 (together, the "Resolutions"), for the purpose of providing funds for a current refunding of the Authority's Governmental Housing Project Refunding Bonds (City of Plymouth, Minnesota General Obligation), Series 2012A, dated April 5, 2012, which were issued to refinance a qualified housing development project for occupancy by the elderly (the "Project"), owned and operated by the Authority, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.017 and 469.034. The principal hereof and interest hereon are payable primarily from the net revenues of the Project in a special debt service fund of the Authority, as set forth in the Resolutions to which reference is made for a full statement of rights and powers thereby conferred. In addition, the full faith and credit of the City are irrevocably pledged for payment of this Bond pursuant to Minnesota Statutes, Section 469.034, Subdivision 2, and the City has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in net revenues pledged, which taxes may be levied without limitation as to rate or amount. In and by the Resolutions, the Authority has covenanted and agreed that it intends to own and operate the Project; that adequate insurance on the Project and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Vicksburg Housing Revenue Fund to be created and maintained, into which it will pay all of the gross revenues from the Project; that it will also create and maintain in the Vicksburg Housing Revenue Fund a debt service fund, into which it will pay, but only out of the net revenues from the Project, a sum sufficient to pay principal hereof and interest thereon when due; and that the City will provide, by ad valorem tax levies, for any deficiency in required net revenues from the Project. Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolutions) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolutions. Reference is hereby made to the Resolutions for a description of the rights and duties of the Bond Registrar. Copies of the Resolutions are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Authority contained in any agreement with the Bond Registrar. Thereupon the Authority shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized 59 71066904v1 10 Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Authority and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided on the reverse side hereof with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Authority nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Qualified Tax-Exempt Obligation. This Bond has been designated by the Authority as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding revenue obligation of the Authority, backed by the general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the Authority or the City to exceed any constitutional or statutory limitation of indebtedness. 60 71066904v1 11 IN WITNESS WHEREOF, the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota, by its Board of Commissioners has caused this Bond to be executed on its behalf by the facsimile signatures of the Chair and Secretary. Date of Registration: November 3, 2021 BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. Deputy City Manager, City of Plymouth, Minnesota, Bond Registrar By____________________ Authorized Signature Registrable by: DEPUTY CITY MANAGER Payable at: DEPUTY CITY MANAGER HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA /s/ Facsimile Chair /s/ Facsimile Secretary 61 71066904v1 12 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM as tenants in common TEN ENT as tenants by the entireties JT TEN as joint tenants with right of survivorship and not as tenants in common UTMA ___________ as custodian for ______________ (Cust)(Minor) under the _____________________ Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ___________________ the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint ___________________ attorney to transfer the Bond on the books kept for registration of the Bond, with full power of substitution in the premises. Dated: _____________________ _____________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ____________________________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not affect transfer of this Bond unless the information concerning the assignee requested below is provided. Name and Address: __________________________________ __________________________________ __________________________________ (Include information for all joint owners if this Bond is held by joint account.) 62 71066904v1 13 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the Authority by the signatures of its Chair and Secretary and be sealed with the seal of the Authority; provided, as permitted by law, both signatures may be photocopied facsimiles and the seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the Authority on each Bond by execution of the Certificate of Authentication on the Bond and, by inserting as the date of registration in the space provided, the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of November 3, 2021. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The Authority will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the Authority shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the Authority shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any transfer or exchange will be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the Authority. 63 71066904v1 14 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the Authority evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the Authority contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Interim Finance Manager for the City is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the Authority maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 13. Treatment of Registered Owner. The Authority and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the Authority nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Interim Finance Manager for the City to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Funds. (a) Vicksburg Housing Revenue Fund. There is hereby created a Vicksburg Housing Revenue Fund to which the Authority will credit all gross revenues of the Project and out of 64 71066904v1 15 which will be paid all normal and reasonable expenses of current operation and maintenance of, and periodic repairs and replacements with respect to, the Project. Any balance therein is deemed net revenues and will be transferred, from time to time as necessary to pay debt service on the Bonds, to the Debt Service Fund created in this paragraph. (b) Payment Fund. There is hereby created a Governmental Housing Project Refunding Bonds, Series 2021A Payment Fund (the "Payment Fund") to which will be credited all proceeds of the sale of the Bonds, less accrued interest to be deposited in the Debt Service Fund. On or prior to February 1, 2022, the Interim Finance Manager for the City shall transfer $______________ of Bond proceeds from the Payment Fund to the paying agent for the Refunded Bonds, which sum is sufficient, together with other funds on deposit in the Debt Service Fund created by the Prior Resolution, to pay the principal and interest on the Refunded Bonds due on and after February 1, 2022. The remainder of the monies in the Payment Fund shall be used to pay the costs of issuance of the Bonds. (c) Debt Service Fund. There is hereby created a Governmental Housing Project Refunding Bonds, Series 2021A Debt Service Fund (the "Debt Service Fund") to which will be credited (i) any monies remaining in the Payment Fund after payment of all costs of issuance of the Bonds and payment of the Refunded Bonds; (ii) any surplus Bond proceeds, if any, remaining after the deposit to the Payment Account; (iii) any collection of all taxes which may hereinafter be levied by the City and pledged to the Authority for the payment of the Bonds in the event the net revenues of the Project are insufficient therefor;(iv) all investment earnings on funds held in the Debt Service Fund; (v) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Fund; and (vi) any balance remaining after February 1, 2022, in the Debt Service Fund created by the Prior Resolution. There will always be retained in the Debt Service Fund a sufficient amount to pay principal of and interest on all the Bonds, and the Treasurer of the Authority must report any current or anticipated deficiency in the Debt Service Fund to the City Council. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Debt Service Fund (or any other Authority or City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 65 71066904v1 16 16. Security; Pledges; Covenants. The Authority covenants and agrees with the holders of the Bonds that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following covenants and agreements: (a) The Authority will continue to maintain and efficiently operate the Project as a qualified housing development project and will cause all revenues therefrom to be deposited in bank accounts and credited to the project accounts as hereinabove provided, and will make no expenditures from those accounts except for a duly authorized purpose and in accordance with the resolution. (b) The Authority will also maintain the Debt Service Fund as a separate account and will cause money to be credited thereto from time to time, out of net revenues from the Project in sums sufficient to pay principal of and interest on the Bonds when due; provided, that in the event of a deficiency in net revenues, the Authority shall notify the City of such deficiency not fewer than thirty days prior to the related debt service payment date, and shall request that the City provide sufficient funds to pay debt service on the Bonds as and when due. (c) The Authority will keep and maintain proper and adequate books of records and accounts separate from all other records of the Authority in which will be complete and correct entries as to all transactions relating to the Project and which shall be open to inspection and copying by the City and any bondholder, or the holder's agent or attorney, at any reasonable time, and it will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said account will be audited at least annually by a qualified public accountant and statements of such audit and report will be furnished to all bondholders upon request. (d) The Authority will cause persons handling revenues of the Project to be bonded in reasonable amounts for the protection of the Authority and the bondholders and will cause the funds collected on account of the operations of the Project to be deposited in a bank whose deposits are guaranteed under the Federal Deposit Insurance Law. (e) The Authority will keep the Project insured at all times against loss by fire, tornado and other risks customarily insured against with an insurer or insurers in good standing in the State of Minnesota and rated A+ by Bests Rating Agency, in such amounts as are customary for like facilities, to protect the holders, from time to time, of the Bonds and the Authority and the City from any loss due to any such casualty and will apply the proceeds of such insurance to make good any such loss. (f) The Authority and each and all of its officers will punctually perform all duties with reference to the Project as required by law. (g) The Authority will request that the City Council levy general ad valorem taxes on all taxable property in the City, when required to meet any deficiency in net revenues. 17. Project Revenues. It is found and determined that the Project is a qualified housing development project, in that it provides housing for the elderly. The Authority covenants that it will not admit nonelderly individuals as tenants of the Project unless the conditions set forth in Section 469.034, Subd. 2(e)(1) through (3) are met. 66 71066904v1 17 18. Prior Bonds; Security. Until retirement of the Prior Bonds, all provisions theretofore made for the security thereof shall be observed by the Authority, the Authority and all of its officers and agents. 19. Redemption of Refunded Bonds. The Refunded Bonds shall be redeemed and prepaid in accordance with the terms and conditions set forth in the Notice of Call for Redemption attached hereto as Exhibit B, which terms and conditions are hereby approved and incorporated herein by reference. 20. Records and Certificates. The officers of the Authority are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the Authority and the City relating to the Bonds and to the financial condition and affairs of the Authority and the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the validity and marketability of the Bonds and such instruments, including any heretofore furnished, shall be deemed representations of the Authority as to the facts stated therein. 21. Certificate of Registration. The Secretary is hereby directed to file a certified copy of this resolution with the County Auditor of Hennepin County, Minnesota, together with such other information as the County Auditor shall require, and to obtain from the County Auditor the certificate that the Bonds have been entered in the County Auditor's Bond Register 22. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The Authority may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The Authority may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The Authority may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 23. Negative Covenant as to Use of Proceeds and Project. The Authority hereby covenants not to use the proceeds of the Bonds or to use the project originally financed by the Prior Bonds, or to cause or permit them to be used, or to enter into any deferred payment 67 71066904v1 18 arrangements for the cost of the project, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 24. Tax Exempt Status of the Bonds; Rebate. The Authority shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States. The Authority expects to satisfy the six-month expenditure exemption from gross proceeds of the Bonds as provided in Section 1.148-7(c) of the Regulations. The Chair and/or Secretary are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the Authority. 25. Designation of Qualified Tax-Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the Authority hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c) the Authority hereby designates the Bonds as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Code; (d) the reasonably anticipated amount of tax exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the Authority (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the Authority ) during this calendar year 2021 will not exceed $10,000,000; (e) not more than $10,000,000 of obligations issued by the Authority during this calendar year 2021 have been designated for purposes of Section 265(b)(3) of the Code; and (f) the aggregate face amount of the Bonds does not exceed $10,000,000. Furthermore:[g-j may need to be removed if the remaining WAM goes up after the sale of the Bonds.] (g) each of the Refunded Bonds was designated as a "qualified tax exempt obligation" for purposes of Section 265(b)(3) of the Code; (h) the average maturity of the Bonds does not exceed the remaining average maturity of the Refunded Bonds; (i) no part of the Bonds has a maturity date which is later than the date which is thirty years after the date the Refunded Bonds were issued; and 68 71066904v1 19 (j) the Bonds are issued to refund, and not to "advance refund" the Prior Bonds within the meaning of Section 149(d)(5) of the Code, and shall not be taken into account under the $10,000,000 issuance limit to the extent the Bonds do not exceed the outstanding amount of the Prior Bonds and therefor is "deemed designated" within the meaning of Section 265 of the Code. The Authority shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 26. Continuing Disclosure. The Authority is the issuer of the Bonds. However it is not an "obligated person" subject to the disclosure requirements under the SEC Rule 15c2- 12(b)(5) (the "Rule") because (i) the bonds are general obligations of the City and not the Authority and (ii) financial information and operating data set forth in the Official Statement relates only to the City. The City shall agree, in accordance with the provisions of the Rule, promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. 27. Official Statement. Official Statement relating to the Bonds prepared and distributed by Ehlers is hereby approved and the officers of the Authority are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. 28. Payment of Issuance Expenses. The Authority authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Old National Bank, Chaska, Minnesota on the closing date for further distribution as directed by Ehlers. 69 71066904v1 20 29. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. 30. Effective Date. This Resolution shall be effective immediately following adoption by the City of a resolution approving the sale of the Bonds by the Authority. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner _______________, and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. 70 71066904v1 21 STATE OF MINNESOTA COUNTY OF HENNEPIN HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH I, the undersigned, being the duly qualified and acting Secretary of the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular or special meeting of the Board of Commissioners of the Authority held on September 23, 2021, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of $7,235,000 General Obligation Housing Revenue Refunding Bonds (City of Plymouth, Minnesota), Series 2021A of the Authority. WITNESS my hand officially as such Secretary on September ____, 2021. ______________________________________ Secretary Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota 71 71066904v1 A-1 EXHIBIT A PROPOSALS [To be supplied by Ehlers & Associates, Inc.] 72 71066904v1 B-1 EXHIBIT B NOTICE OF CALL FOR REDEMPTION HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF PLYMOUTH, MINNESOTA GOVERNMENTAL HOUSING PROJECT REFUNDING BONDS (CITY OF PLYMOUTH, MINNESOTA GENERAL OBLIGATION), SERIES 2012A NOTICE IS HEREBY GIVEN that by order of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Plymouth, Hennepin County, Minnesota, there have been called for redemption and prepayment on February 1, 2022 those outstanding bonds designated as the Governmental Housing Project Refunding Bonds (City of Plymouth, Minnesota General Obligation), Series 2012A, dated April 5, 2012, having stated maturity dates in the years 2023 through 2035, and totaling $7,110,000 in principal amount and having CUSIP numbers listed below: Year Amount CUSIP Number* 2023 $470,000 72977P CU4 2024 480,000 72977P CV2 2025 490,000 72977P CW0 2026 500,000 72977P CX8 2027 515,000 72977P CY6 2028 525,000 72977P CZ3 2029 540,000 72977P DA7 2030 555,000 72977P DB5 2031 570,000 72977P DC3 2032 590,000 72977P DD1 2033 605,000 72977P DE9 2034 625,000 72977P DF6 2035 645,000 72977P DG4 The bonds are being called at a price of par plus accrued interest to February 1, 2022, on which date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for payment at the principal office of the Deputy City Manager, City of Plymouth, Minnesota, on or before February 1, 2022. Dated: September 23, 2021 BY ORDER OF THE BOARD OF COMMISSIONERS /s/ Aqueelah Whitfield, Secretary Housing and Redevelopment Authority of the City of Plymouth, Minnesota *The Housing and Redevelopment Authority shall not be responsible for the selection of or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in the notice. They are included solely for the convenience of the holders. 73 Regular Housing and Redevelopment Authority September 23, 2021 Agenda Number:6.3 To:Housing and Redevelopment Authority Prepared by:James Barnes, HRA Manager Reviewed by:Danette Parr, HRA Executive Director Item:Tax Increment District 7-7 Interfund Loan. 1. Action Requested: Adopt the attached resolution approving the terms of an interfund loan in connection with tax increment financing district 7-7. 2. Background: As part of the 2021 budget, the HRA Board approved the replacement of windows at Vicksburg Crossing. At that time staff recommended the project be funded either by the Vicksburg Crossing replacement reserves or the HRA General fund reserves. After review and discussions with the City Manager and Community Development Director it was determined that a third option be available to cover the costs. Tax Increment Fianancing (TIF) district 7-7 has $688,000 available to assist with affordable housing projects such as the Vicksburg Crossing Window Replacement. While it is not certain that we will use the funds from TIF district 7-7 at this point, staff is of the opinion that we should put into place the necessary mechanism to have this as an option. Staff will know later in the year which fund(s) will be used to pay for the project and will update the HRA Board. 3. Budget Impact: If a portion or all of the TIF 7-7 pooled funds are used on the Vicksburg Crossing Window project that will free up less restrictive funds from the HRA General Reserves or the Vicksburg Crossing Replacement Reserves to assist with other HRA or City endevors. 4. Attachments: Resolution 2021-17 74 71023862v1 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF PLYMOUTH, MINNESOTA HRA RESOLUTION NO. 2021- RESOLUTION APPROVING THE TERMS OF AN INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 7-7 WHEREAS, the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota (the "HRA") has determined to pay for certain costs identified in the TIF Plan (as hereinafter defined) consisting of land acquisition, public utilities, site improvements/preparation, other eligible improvements, and administrative costs (the "Qualified Costs") incurred in connection with Tax Increment Financing District No. 7-7 (the "TIF District") and development of land within the TIF District, which costs may be financed on a temporary basis from HRA funds available for such purposes WHEREAS, the City of Plymouth, Minnesota (the "City") has heretofore established the TIF District within Development District No. 7 and has adopted a tax increment financing plan for the TIF District (the "TIF Plan"); and WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is authorized to advance or loan money from the HRA's general fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. WHEREAS, the HRA intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). NOW, THEREFORE, BE IT RESOLVED, by Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota, as follows: (1) Terms of Interfund Loan. (a) The HRA hereby authorizes the advance of up to $688,000, from the HRA's General Fund or any other fund designated by the HRA, or so much thereof as may be paid as Qualified Costs. The HRA shall reimburse itself for such advances together with interest at the rate stated below. interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4.00% and will not fluctuate. (b) Principal and interest on the Interfund Loan (the "Payments") shall be paid annually on each December 31 commencing with the date the tax increments from the TIF District are available and not otherwise pledged to and including the earlier of (i) the date the principal and accrued interest of the Interfund Loan is paid in full, or (ii) the date of last receipt of tax increment from the TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of available tax increments. Payments shall be applied first to accrued interest, and then to unpaid principal. (c) Payments on the Interfund Loan are payable solely from the tax increment generated in the preceding twelve (12) months with respect to the TIF District and remitted to the City by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended. Payments on this Interfund Loan are subordinate to any outstanding or future bonds, notes or 75 71023862v1 2 contracts secured in whole or in part with tax increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with tax increments. (d) The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the HRAwithout premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. (e) The Interfund Loan is evidence of an internal borrowing by the HRAin accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from tax increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City or the HRA. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of tax increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The HRA shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination of the TIF District. The HRAmay amend the terms of the Interfund Loan at any time by resolution of its Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. (2) Effective Date. This resolution is effective upon the date of its approval. APPROVED by the Board on this 23rd day of September, 2021. 76