HomeMy WebLinkAbout07-12 - ADMIN Resolution - Economic Development Authority - 2007/10/01CITY OF ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 07-12
AUTHORIZING AN INTERNAL LOAN FOR
ADVANCE OF FUNDS IN CONNECTION WITH
HOUSING IMPROVEMENTS WITHIN THE
WOLFE LAKE CONDOMINIUM HOUSING IMPROVEMENT AREA
BE IT RESOLVED by the St. Louis Park Economic Development Authority (the
"EDA") as follows:
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 "Wolfe Lake
Condominium" the Council on October 1, 2007, established the Wolfe Lake Condominium
Housing Improvement Area by Ordinance No. 2336-07 (the 'Enabling Ordinance") and
approved a Housing Improvement Fee (the "Fee") by Resolution No. 07-107.
1.03 For the purposes of this Resolution, the terms "Wolfe Lake Condominium Housing
Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling
Ordinance.
1.04. The City will enter into a a Development Agreement (the "Agreement") between
the City and the Wolfe Lake Condominium 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 $1,268,000 (the "Loan Amount") from any account or accounts determined by the
City Finance Director into a Wolfe Lake Condominium 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, 2008, shall be repaid in semi-annual installments of principal and interest
EDA Resolution No. 07-12 -2-
("Payments") on the dates (each a "Payment Date") and in the amounts specified in Exhibit A
hereto.
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
by the St. Louis Park Economic Development Authority this 1st day of October, 2007.
for Administration: Adopted by the Economic Development
A thprity October 1, 2007
biw�oor President
Attest
EDA Resolution No. 07-12 -3-
Wolfe Lake Condominium Housing Improvement Area
Loan Amount Payment Schedule
Exhibit A
City of St. Louis Park
15 Year Payment Schedule - July 10, 2007
IQM
$1,331.400