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HomeMy WebLinkAbout06-077 - ADMIN Resolution - City Council - 2006/05/01RESOLUTION NO. 06-077 RESOLUTION APPROVING INTERNAL LOAN FOR ADVANCE OF QUALIFIED HOUSING COSTS IN CONNECTION WITH PARK CENTER TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the City Council of the City of St Louis Park as follows: Section 1. Recitals 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF Act"), the Authority previously established its Park Center Boulevard Housing Tax Increment Financing Distnct (the "TIF District") within Redevelopment Project No 1 in the City. 1.02. The Authonty and City are authorized to use increment from the TIF District to rehabilitate qualified low-income housing outside the geographic area of the TIF District. 1.03. The City has approved a $400,000 loan (the "Loan") to PPL Louisiana Court Limited Partnership to rehabilitate Louisiana Court, a qualified low-income multifamily housing facility. 1.04. The City intends to fund $131,100 of the Loan from City or Authority development account funds, and further desires to reimburse itself for the costs of $131,100 of the Loan through an interfund loan (the "Interfund Loan") using tax increment from the TIF District, subject to the passage of legislation clarifying the so-called "five-year rule" within Section 469 1763 of the TIF Act concerning the availability of tax increment for housmg project expenditures outside the geographic area of a TIF district. 1.05. On May 1, 2006, the Authonty approved a resolution (the "Loan Resolution") authonzing the Interfund Loan and setting the terms for repayment of the Interfund Loan using tax increment from the TIF Distnct Section 2. Interfund Loan Approved. 2.01. The City approves the Interfund Loan described in the Loan Resolution, and authorizes the use of any unencumbered City or Authonty development account funds available for such purposes under the law as the source of funds for the Interfund Loan. 2.02. The City Manager is authorized and directed to determine the fund from which monies are drawn for the Interfund Loan and to credit repayments to the relevant fund according to the terms set forth in the Loan Resolution. .03. City staff and officials are hereby authorized and directed to execute any collateral ocume is and take any other actions necessary to carry out the intent of this resolution. Rev : ed for Administration: IM" City - a� Attest: City Clerk U A o ted by the City Council May 1, 2006