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HomeMy WebLinkAbout08-08 - ADMIN Resolution - Economic Development Authority - 2008/06/16follows: CITY OF ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 08-08 AUTHORIZING AN INTERNAL LOAN FOR ADVANCE OF FUNDS IN CONNECTION WITH HOUSING IMPROVEMENTS WITHIN THE WESTMORELAND HILLS OWNERS' ASSOCIATION HOUSING IMPROVEMENT AREA BE IT RESOLVED by the St. Louis Park Economic Development Authority (the "EDA") as Section 1. Recitals. 1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes, Sections 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 ("Council") adopted a Housing Improvement Area policy on July 16, 2001. 1.02. In order to facilitate Housing Improvements to property known as the "Westmoreland Hills Owners' Association" the Council on June 16, 2008, established the Westmoreland Hills Owners' Association Housing Improvement Area by Ordinance No. 2357-08 (the "Enabling Ordinance") and approved a Housing Improvement Fee (the "Fee") by Resolution 08-081. 1.03 For the purposes of this Resolution, the terms "Westmoreland Hills Owners' Association Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance. 1.04. The City will enter into a Development Agreement (the "Agreement") between the City and the Westmoreland Hills Owners' Association (the "Association") under which the City will make a loan of funds legally available for such purpose (the "Loan") to the Association to finance the Housing Improvements as described in the Agreement. 1.05. On the effective date of the Enabling Ordinance, the City will transfer funds in the amount of $1,026,125 (the "Loan Amount") from any account or accounts determined by the City Finance Director into a Westmoreland Hills Owners' Association Housing Improvement Area Project Fund (the "Project Fund") hereby established. Pursuant to the Agreement, the source of the Loan may include the development fund administered and controlled by the EDA. 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 EDA 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 5.85% per annum accruing from January 1, 2009, shall be repaid in semi-annual installments of principal and interest ("Payments") on the dates (each a "Payment Date") and in the amounts specified in Exhibit A hereto. EDA Resolution No. 08-08 -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, including the EDA development fund, and to credit repayments under this resolution 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 or EDA 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. by the St. Louis Park Economic Development Authority this 16" day of June, 2008. Administration: Adopted by the Economic Development Authority June 16, 2008 ctor President Attest EDA Resolution No. 08-08 -3- Westmoreland Hills Owners' Association Housing Improvement Area Loan Amount Payment Schedule Exhibit A of St. Louis Park Year Payment Schedule 105 $ 1,077,431,25