HomeMy WebLinkAbout02-118 - ADMIN Resolution - City Council - 2002/11/04RESOLUTION NO. 02-118
AUTHORIZING AN INTERNAL LOAN FOR
ADVANCE OF FUNDS IN CONNECTION WITH
HOUSING IMPROVEMENTS WITHIN THE
CEDAR TRAILS HOUSING IMPROVEMENT AREA
BE IT RESOLVED by the City Council of the City of St. Louis Park as follows:
Section 1. Recitals
1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes Chapter
428A 11 to 428A.21 (the "Housing Improvement Act") to establish by ordinance a housing
improvement area within which housing improvements are made or constructed and the costs of the
improvements are paid in whole or in part from fees imposed within the area. The St Louis Park
City Council adopted a Housing Improvement Area policy on July 16, 2001.
1 02 In order to facilitate Housing Improvements to property known as the "Cedar Trails
Condominiums," the Council on November 4, 2002, established the Cedar Trails Housing
Improvement Area by Ordinance No. 2231-02 (the "Enabling Ordinance") and approved a Housing
Improvement Fee (the "Fee") by Resolution 02-117
1 03 For the purposes of this Resolution, the terms "Cedar Trails Housing Improvement
Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance
1.04. The City has approved a Development Agreement (the "Agreement") between the
City and the Cedar Trails Condominium Association (the "Association") under which the City will
make a loan of City funds (the "Loan") to the Association to finance the Housing Improvements as
descnbed in the Agreement.
1.05. On the effective date of this resolution, the City will transfer City funds in the amount
of $1,365,742 (the "Loan Amount") from any account or accounts determined by the City Finance
Director into a Cedar Trails Housing Improvement Area Project Fund (the "Project Fund") hereby
established. The City will disburse funds in the Project Fund to the Association in accordance with
Article III of the Agreement, and will reimburse itself from the Fee revenues together with any
amounts received from the Association under the terms of Section 6.6 of the Agreement.
1 06 The City has determined to specify the terms of the Loan in more detail in this
resolution.
Section 2. Repayment of the Loan Amount
2.01. The Loan Amount, together with interest at the rate of 6 30% per annum accruing
from January 1, 2004, shall be repaid in semi-annual installments of pnncipal and interest
("Payments") on the dates (each a "Payment Date") and in the amounts specified in Exhibit A
hereto.
Resolution No. 02-118 -2-
2.03. Payments on the Loan Amount will be made solely from Fee Revenues as defined in
the Agreement, together with any amounts received from the Association under Section 6 6 of the
Agreement. Payments shall be applied first to accrued interest, and then to unpaid principal.
2.04. The principal sum and all accrued interest payable under this resolution is pre-
payable in whole or in part at any time by the City without premium or penalty. No partial
prepayment shall affect the amount or timing of any other regular payment otherwise required to be
made under Exhibit A.
2.05. The Housing Improvements are evidence of an internal borrowing by the City, which
is a limited obligation payable solely from Fee Revenues pledged to the payment hereof under this
resolution together with any amounts received from the Association under the terms of Section 6 6
of the Agreement. The internal loan for the Housing Improvements shall not be deemed to
constitute a general obligation of the State of Minnesota or any political subdivision thereof,
including, without limitation, the City of St. Louis Park. Neither the State of Minnesota, nor any
political subdivision thereof shall be obligated to pay the principal of or interest on the Loan
Amount or other costs incident hereto except out of Fee Revenues. The City shall have no
obligation to pay any principal amount of the Loan Amount or accrued interest thereon, which may
remain unpaid after the final Payment Date.
2.06. The City Finance Director is authorized and directed to determine the fund(s) or
account(s) from which monies are drawn for disbursements of the Loan Amount, and to credit
repayments under this to the relevant fund(s) or account(s)
2.07. City staff and officials are authorized and directed to execute any collateral
documents and take any other actions necessary to carry out the intent of this resolution.
2.08. The City may at any time determine to forgive the outstanding principal amount and
accrued interest on the Loan Amount to the extent permissible under law.
Section 3. Effective Date. This resolution is effective upon execution in full of the
Agreement.
Approved by the City Council of the City of St. Louis Park this 4th day of November, 2002
Reviewed for Administration
City Manager
Attest:
Resolution No. 02-118
-3-
Cedar Trails Housing Improvement Area
Loan Amount Payment Schedule
EXHIBIT A
Year
Principal
Interest
Semi -
annual
Payment
100%
Balance
Semi-annual
Payment
105%
$ 1,365,742
1 -Aug -04
$51,082.61
$ 43,020.88
$94,103.48
$ 1,314,659.51
$98,808.66
1 -Feb -04
$51,082.61
$ 43,020.88
$94,103.48
$ 1,263,576.90
$98,808.66
1 -Aug -05
$54,300.81
$ 39,802.67
$94,103.48
$ 1,209,276.09
$98,808.66
1 -Feb -05
$54,300.81
$ 39,802.67
$94,103.48
$ 1,154,975.28
$98,808.66
1 -Aug -06
$57,721.76
$ 36,381.72
$94,103.48
$ 1,097,253.51
$98,808.66
1 -Feb -06
$57,721.76
$ 36,381.72
$94,103.48
$ 1,039,531.75
$98,808.66
1 -Aug -07
$61,358.23
$ 32,745.25
$94,103.48
$ 978,173.52
$98,808.66
1 -Feb -07
$61,358.23
$ 32,745.25
$94,103.48
$ 916,815.28
$98,808.66
1 -Aug -08
$65,223.80
$ 28,879.68
$94,103.48
$ 851,591.48
$98,808.66
1 -Feb -08
$65,223.80
$ 28,879.68
$94,103.48
$ 786,367.68
$98,808.66
1 -Aug -09
$69,332.90
$ 24,770.58
$94,103.48
$ 717,034.77
$98,808.66
1 -Feb -09
$69,332.90
$ 24,770.58
$94,103.48
$ 647,701.87
$98,808.66
1 -Aug -10
$73,700.88
$ 20,402.61
$94,103.48
$ 574,001.00
$98,808.66
1 -Feb -10
$73,700.88
$ 20,402.61
$94,103.48
$ 500,300.12
$98,808.66
1 -Aug -11
$78,344.03
$ 15,759.45
$94,103.48
$ 421,956.09
$98,808.66
1 -Feb -11
$78,344.03
$ 15,759.45
$94,103.48
$ 343,612.06
$98,808.66
1 -Aug -12
$83,279.70
$ 10,823.78
$94,103.48
$ 260,332.36
$98,808.66
1 -Feb -12
$83,279.70
$ 10,823.78
$94,103.48
$ 177,052.65
$98,808.66
1 -Aug -13
$88,526.33
$ 5,577.16
$94,103.48
$ 88,526.33
$98,808.66
1 -Feb -13
$88,526.33
$ 5,577.16
$94,103.48
$ (0.00)
$98,808.66