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Home My WebLink About20-108 - ADMIN Resolution - City Council - 2020/08/17Resolution No. 20-108 Authorizing an internal loan for advance of funds in connection with housing improvements within the South Cedar Trails Homeowners Association Housing Improvement Area Whereas, the City of St. Louis Park ("City") is authorized under Minnesota Statutes, Sections 428A.11 to 428.21 (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, and the City Council of the City (“Council”) adopted a Housing Improvement Area policy on July 16, 2001; and Whereas, in order to facilitate Housing Improvements to property known as the "South Cedar Trails Homeowners Association" the Council on June 15, 2020, established the South Cedar Trails Homeowners Association Housing Improvement Area by Ordinance No. 2587-20 (the "Enabling Ordinance") and approved a Housing Improvement Fee (the “Fee”) b y Resolution 20-091; and Whereas, for the purposes of this Resolution, the terms "South Cedar Trails Homeowners Association Housing Improvement Area" and "Housing Improvements" have the meanings provided in the Enabling Ordinance; and Whereas, the City has entered into a Development Agreement (the “Agreement”) between the City and South Cedar Trails Homeowners Association, Inc. (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; and Whereas, upon approval of the Internal Loan the City will transfer funds in the amount of $533,163 (the “Loan Amount”) from the City’s housing rehabilitation fund into a South Cedar Trails Homeowners Association Housing Improvement Area Project Fund (the “Project Fund”) hereby established, will disburse funds in the Project Fund to the Association in accordance with Article III of the Agreement, and will reimburse the housing rehabilitation fund from the Fee revenues together with any amounts received from the Association under the terms of Section 6.6 of the Agreement; and Whereas, the City has determined to specify the terms of the Loan in more detail in this resolution. Now, therefore, be it resolved that the Loan Amount, together with interest at the rate of 2.91% per annum accruing from January 1, 2021, 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. It is further resolved that payments on the Loan Amount will be made solely from Fee Revenues as defined in the Agreement, together with any amounts received from the DocuSign Envelope ID: 98CBD0E6-A8FC-456B-A1E9-8DEEA34EE8F3 Resolution No. 20-108 2 Association under Section 6.6 of the Agreement. Payments shall be applied first to accrued interest, and then to unpaid principal. It is further resolved that 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. It is further resolved that 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. It is further resolved that the Chief Financial Officer of the City is authorized and directed to draw monies from the housing rehabilitation fund for disbursements of the Loan Amount, and to credit repayments under this resolution to the housing rehabilitation fund. It is further resolved that 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. It is further resolved that 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. It is further resolved that this resolution is effective upon execution in full of the Agreement. Reviewed for administration: Adopted by the City Council August 17, 2020 Thomas K. Harmening, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk DocuSign Envelope ID: 98CBD0E6-A8FC-456B-A1E9-8DEEA34EE8F3 Resolution No. 20-108 3 660488v1 MNI SA140-132 South Cedar Trails Homeowners Association Housing Improvement Area Loan Amount Payment Schedule Exhibit A City of St. Louis Park Economic Development Authority South Cedar Trails Loan Amount $533,163 Interest Rate 2.91% Date of Interest Accrual 1/1/2021 Final Payment 8/1/2035 Date Interest Principal Total Payment @ 105% Loan Balance Year Fiscal Total 1/1/2021 $ 533,162.88 8/1/2021 9,126.59 14,162.78 23,289.37 $ 519,000.09 0.5 2/1/2022 7,543.15 15,746.22 23,289.37 $ 503,253.87 1.0 46,578.74 8/1/2022 7,314.29 15,975.08 23,289.37 $ 487,278.80 1.5 2/1/2023 7,082.11 16,207.26 23,289.37 $ 471,071.54 2.0 46,578.74 8/1/2023 6,846.55 16,442.81 23,289.37 $ 454,628.72 2.5 2/1/2024 6,607.57 16,681.79 23,289.37 $ 437,946.93 3.0 46,578.74 8/1/2024 6,365.12 16,924.25 23,289.37 $ 421,022.68 3.5 2/1/2025 6,119.14 17,170.22 23,289.37 $ 403,852.46 4.0 46,578.74 8/1/2025 5,869.59 17,419.78 23,289.37 $ 386,432.68 4.5 2/1/2026 5,616.41 17,672.96 23,289.37 $ 368,759.72 5.0 46,578.74 8/1/2026 5,359.55 17,929.81 23,289.37 $ 350,829.91 5.5 2/1/2027 5,098.96 18,190.41 23,289.37 $ 332,639.50 6.0 46,578.74 8/1/2027 4,834.58 18,454.79 23,289.37 $ 314,184.72 6.5 2/1/2028 4,566.36 18,723.01 23,289.37 $ 295,461.71 7.0 46,578.74 8/1/2028 4,294.24 18,995.13 23,289.37 $ 276,466.58 7.5 2/1/2029 4,018.17 19,271.20 23,289.37 $ 257,195.38 8.0 46,578.74 8/1/2029 3,738.08 19,551.29 23,289.37 $ 237,644.09 8.5 2/1/2030 3,453.92 19,835.45 23,289.37 $ 217,808.64 9.0 46,578.74 8/1/2030 3,165.63 20,123.74 23,289.37 $ 197,684.90 9.5 2/1/2031 2,873.15 20,416.22 23,289.37 $ 177,268.69 10.0 46,578.74 8/1/2031 2,576.42 20,712.95 23,289.37 $ 156,555.74 10.5 2/1/2032 2,275.38 21,013.99 23,289.37 $ 135,541.75 11.0 46,578.74 8/1/2032 1,969.96 21,319.40 23,289.37 $ 114,222.35 11.5 2/1/2033 1,660.11 21,629.26 23,289.37 $ 92,593.09 12.0 46,578.74 8/1/2033 1,345.75 21,943.62 23,289.37 $ 70,649.47 12.5 2/1/2034 1,026.82 22,262.55 23,289.37 $ 48,386.92 13.0 46,578.74 8/1/2034 703.26 22,586.11 23,289.37 $ 25,800.81 13.5 2/1/2035 374.99 22,914.38 23,289.37 $ 2,886.43 14.0 46,578.74 8/1/2035 41.95 2,886.43 2,928.38 $ (0.00) 14.5 TOTAL $ 121,867.82 $ 542,350.44 $ 664,218.25 664,218.25 DocuSign Envelope ID: 98CBD0E6-A8FC-456B-A1E9-8DEEA34EE8F3