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HomeMy WebLinkAbout21-39 - ADMIN Resolution - Economic Development Authority - 2021/12/13EDA Resolution No. 21-39 Resolution authorizing an interfund loan for advance of certain costs in connection with the Elmwood Village Tax Increment Financing District Whereas, the city council of the City of St. Louis Park, Minnesota (the "city"), previously established the Elmwood Village 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, all pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”); and Whereas, by resolution adopted on December 20, 2010, the St. Louis Park Economic Development Authority (the “EDA”) approved an interfund loan for certain capital costs related to construction of the Wooddale Avenue and Highway 7 Interchange and the West 36 th Street streetscape, in the maximum principal amount of $5,000,000, pursuant to Section 469.178, Subd. 7 of the TIF Act; and Whereas, by resolution adopted on Dec. 4, 2017, the EDA approved an increase of the interfund loan to fund additional projects, resulting in an interfund loan in the maximum principal amount of $7,000,000, pursuant to Section 469.178, Subd. 7 of the TIF Act; and Whereas, the EDA has determined to use additional tax increments from the TIF District to pay for certain additional infrastructure projects (collectively, the "qualified costs") in a maximum principal amount of $13,000,000, which additional costs may be financed on a temporary basis from EDA funds available for such purposes; and Whereas, under Section 469.178, Subd. 7 of the TIF Act, the EDA is authorized to advance or loan money from the EDA's general fund or any other fund from which such advances may be legally authorized, in order to finance the qualified costs; and Whereas, the EDA intends to reimburse itself for the additional qualified 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"), constituting an amendment of and increase to the interfund loan previously approved by the EDA. 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 up to $20,000,000, or so much thereof as may be paid as qualified costs, from any legally authorized EDA fund. The EDA shall reimburse itself for such advances together with interest at the rate of 4% per annum. Interest accrues on the principal amount from the date of each advance. The interest rate is no more than the greatest of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09, both in effect for calendar year 2021, and will not fluctuate. 2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi -annually on each August 1 and February 1 (each a "payment date"), commencing on the first payment date on which the EDA has available tax increment (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. DocuSign Envelope ID: 99922764-2624-4B07-9B1F-85AA28E3C639 EDA Resolution No. 21-39 2 3. Payments on this interfund loan are payable solely from "available tax increment," which shall mean, on each payment date, tax increment available pursuant to Laws 2017, First Special Session, Chapter 1, Article 6, Section 21, 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 the TIF Act. 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 Section 469.178, Subd. 7 of the TIF Act 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 December 13, 2021 Karen Barton, executive director Tim Brausen, president Attest Melissa Kennedy, secretary DocuSign Envelope ID: 99922764-2624-4B07-9B1F-85AA28E3C639