Adopt Resolution No. E2020-004, authorizing execution of a first amendment to tax increment pledge agreement with the City of Shakopee relating to General Obligation Tax Increment Revenue Bonds, Series 2020A, to be issued in the original aggregate principal amount of $8,165,000. 

In order for the tax increment generated from TIF District No. 18 (Canterbury Commons Development Project) to be utilized by the City for the principal and interest payments on the G.O. Tax Increment Bonds, the EDA needs to formally pledge the increment to the city.  The pledge agreement stipulates specifically what the city and the EDA mutually agree to, such as the city agreeing to issue and utilize the bonds for a specific purpose and the EDA agreeing to pledge 90 percent of the increment received for principal and interest payments on the G.O Tax Increment Revenue Bonds.

The original agreement was entered into on October 17, 2019, and related to the payments on G.O Tax Increment Bonds, Series 2019A.  The original principal amount of $4,200,000 were used for 12th avenue public improvements.

The amendment pledges tax increment revenues for G.O. Tax Increment Bonds, Series 2020A.  The original principal amount of $8,165,000 will be used for Unbridled Avenue public improvements.