HomeMy WebLinkAbout21-13 - ADMIN Resolution - Economic Development Authority - 2021/08/02EDA Resolution No. 21-13
Resolution authorizing an interfund loan for advance of certain costs in
connection with the Bridgewater Bank Tax Increment Financing District
Whereas, on Aug. 6, 2018, the City Council of the City of St. Louis Park, Minnesota (the
"City") approved the establishment of the Bridgewater Bank Tax Increment Financing District
(the "TIF District") within Redevelopment Project No. 1 (the "Project"), and adopted a Tax
Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements
within the Project; and
Whereas, the St. Louis Park Economic Development Authority (the “EDA”) entered into a
Purchase and Redevelopment Contract (the “Contract”) with Bridgewater Bancshares, Inc. and
Bridgewater Bank (the “Redeveloper”), pursuant to which the EDA conveyed certain property
(the “Redevelopment Property”) to the Redeveloper and the Redeveloper constructed a new
bank headquarters (the “Minimum Improvements”) on the Redevelopment Property; and
Whereas, the Redeveloper has completed the construction of the Minimum
Improvements on the Redevelopment Property, and has provided evidence of payment of
certain Public Redevelopment Costs (as defined in the Contract), and on June 16, 2021, the EDA
issued its Tax Increment Revenue Note (the “Note”) to the Redeveloper in the principal amount
of $950,000, payable from tax increments from the Minimum Improvements and
Redevelopment Property; and
Whereas, under Minnesota Statutes, Section 469.178, Subd. 7, the EDA is authorized to
advance or loan money from the EDA's development fund or any other fund from which such
advances may be legally authorized, to finance qualified costs of a TIF district; and
Whereas, the EDA has determined to prepay the Note in full from its development fund,
and to reimburse itself for such prepayment of the Public Redevelopment Costs from tax
increments derived from the TIF District in accordance with the terms of this resolution (which
terms are referred to collectively as the "Interfund Loan").
Now therefore be it resolved by the Board of Commissioners (the "Board") of the St.
Louis Park Economic Development Authority as follows:
1. The EDA hereby authorizes the advance of $951,596, representing $950,000 in
principal of the Note and $1,596 in accrued interest from the date of issuance of the
Note to Aug. 3, 2021, the date of prepayment of the Note. The EDA shall reimburse
itself for such advance together with interest at the rate stated below. Interest
accrues on the principal amount from the date of each advance. The maximum rate
of interest permitted to be charged is limited to the greater of the rates specified
under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan
or advance is authorized, unless the written agreement states that the maximum
interest rate will fluctuate as the interest rates specified under Minnesota Statutes,
Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate
shall be 4% and will not fluctuate.
2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi -annually
on each Aug. 1 and Feb. 1 (each a "Payment Date"), commencing on the first
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EDA Resolution No. 21-13 2
Payment Date on which the EDA has Available Tax Incre ment (defined below), or on
any other dates determined by the Executive Director of the EDA, through the date of
last receipt of tax increment from the TIF District.
3. Payments on this Interfund Loan are payable solely from "Available Tax Increment,"
which shall mean, on each Payment Date, tax increment available after other
obligations have been paid, or as determined by the Executive Director of the EDA,
generated in the preceding six (6) months with respect to the property within the TIF
District and remitted to the EDA by Hennepin County, all in accordance with
Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended.
Payments on this Interfund Loan may be subordinated to any outstanding or future
bonds, notes or contracts secured in whole or in part with Available Tax Increment,
and are on parity with any other outstanding or future interfund loans secured in
whole or in part with Available Tax Increment.
4. The principal sum and all accrued interest payable under this Interfund Loan are pre-
payable in whole or in part at any time by the EDA without premium or penalty. No
partial prepayment shall affect the amount or timing of any other regular payment
otherwise required to be made under this Interfund Loan.
5. This Interfund Loan is evidence of an internal borrowing by the EDA in accordance
with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable
solely from Available Tax Increment pledged to the payment hereof under this
resolution. This Interfund Loan and the interest hereon shall not be deemed to
constitute a general obligation of the State of Minnesota or any political subdivision
thereof, including, without limitation, the EDA. Neither the State of Minnesota, nor
any political subdivision thereof shall be obligated to pay the principal of or interest
on this Interfund Loan or other costs incident hereto except out of Available Tax
Increment, and neither the full faith and credit nor the taxing power of the State of
Minnesota or any political subdivision thereof is pledged to the payment of the
principal of or interest on this Interfund Loan or other costs incident hereto. The EDA
shall have no obligation to pay any principal amount of the Interfund Loan or accrued
interest thereon, which may remain unpaid after the final payment date.
6. The EDA may amend the terms of this Interfund Loan at any time by resolution of the
Board, including a determination to forgive the outstanding principal amount and
accrued interest to the extent permissible under law.
Reviewed for Administration: Adopted by the Economic Development
Authority August 2, 2021
Karen Barton, EDA executive director Tim Brausen, president
Attest:
Melissa Kennedy, secretary
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