HomeMy WebLinkAbout06-23 - ADMIN Resolution - Economic Development Authority - 2006/12/04EDA RESOLUTION NO. 06-23
RESOLUTION APPROVING
THE FINANCING APPROACH FOR THE WIRELESS PROJECT
WHEREAS, the City Council approved bids for a municipal wireless project on
November 6, 2006; and
WHEREAS, the most cost effective method of financing this project is through internal
loans from the Development Fund; and
WHEREAS, the Economic Development Authority finds the use of the Development
Fund for the internal loans is consistent with the adopted Development Fund Guidelines. These
guidelines state in part that the Development Fund may be used to make loans at interest rates
below or at market rates of interest to strengthen the financial feasibility of proposed projects.
The Guidelines also state that the Development Fund may be used to decrease the capital and
operating costs of the City.
WHEREAS, the City of St. Louis Park has requested such loans;
NOW, THEREFORE, BE IT RESOLVED by the St. Louis Park, Minnesota Economic
Development Authority that:
1. The Economic Development Authority is authorized to lend an amount not to exceed
$3,300,000 from the Development Fund.
2. Two loans will be made —the first with a twenty (20 year term for the cost of fiber optic
extensions and a second for all other wireless infrastructure costs with a five (5) year term.
3. The interest rate for these loans will be set at 5% per annum.
4. The monies will be advanced as required by the build out process and interest will begin to
accrue at the time of disbursement.
5. Repayment will begin in 2008 one year after acceptance of completed system by the city
from ARINC, the primary vendor.
These loans may be prepaid by the Wireless Enterprise Fund at any time in any amount up to
\�he full balance due without penalty.
Attest:
Secretary
Adopted by the Economic Development
!"-Q
ority December 4, 2006
� Q
President