Agenda - Council - 04/22/2008 - Laserfiche WebLink

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OPERATING DEFICIT AGREEMENT THIS OPERATING DEFICIT AGREEMENT dated as of June 1, 2008 (the "Agreement "), by and between the ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY, a public body corporate and politic and political subdivision of the State of Minnesota (the " ACHRA" or the "Issuer "), and the CITY OF RAMSEY, MINNESOTA, a municipal corporation and political subdivision of the State of Minnesota (the "City "); WITNES SETH: WHEREAS, pursuant to the laws of the State of Minnesota, particularly Minnesota Statutes, Sections 469.001 through 469.047 (the "Act "), the ACHRA is authorized to undertake housing development projects to provide safe and sanitary housing affordable by low and moderate income persons and families; and WHEREAS, pursuant to Minnesota Statutes, Sections 469.034 and 469.035, the ACHRA is authorized to issue its revenue bonds for any of its corporate purposes; and WHEREAS, the ACHRA has previously issued its $3,000,000 Housing Development Bonds (City of Ramsey Unlimited Tax General Obligation — Senior Housing Project), Series 1998A and the City has previously issued its $1,195,000 General Obligation Tax Increment Bonds, Series 1999A (together, the "Prior Bonds ") for the purpose of financing the acquisition and construction of a 50 -unit multifamily housing project for low and moderate income elderly tenants (the "Project ") in the City of Ramsey (the "City "); and WHEREAS, for the purpose, among others, of refunding the Prior Bonds and thereby reducing debt service costs of the Project, the ACHRA is issuing its Housing Development Bonds (Anoka County, Minnesota General Obligation), Series 2008A (the "Refunding Bonds" or the "Bonds "), pursuant to an Indenture of Trust dated as of June 1, 2008 (the "Indenture ") between the ACHRA and U.S. Bank National Association, as trustee (the "Trustee "), and WHEREAS, the Prior Bonds are a full faith and credit general obligation of the City, and the Refunding Bonds are a full faith and credit general obligation of the County of Anoka (the "County "); and WHEREAS, the City is authorized by the laws of the State of Minnesota, particularly Minnesota Statutes, Section 469.041 and Section 471.191, subdivision 2 to provide in its budget each year for any anticipated deficiency in revenues of the Project available for operation and maintenance of the Project, and to levy a tax for such purpose and WHEREAS, the City has determined to enter into this Agreement in order to provide a source of funding for potential operating deficits of the Project occurring during the five- year period ending May 31, 2013; OPERATING DEFICIT AGREEMENT CITY OF RAMSEY