HomeMy WebLinkAbout22-26 - ADMIN Resolution - Economic Development Authority - 2022/06/06EDA Resolution No. 22-26
Resolution authorizing an interfund loan for advance of certain
costs in connection with Wooddale Ave Apartments (Real Estate
Equities) Tax Increment Financing District
Whereas, the City of St. Louis Park, Minnesota (the "City") and the St. Louis Park
Economic Development Authority (the “Authority”) intend to establish the Wooddale Ave
Apartments (Real Estate Equities) Tax Increment Financing District (the "TIF District"), a housing
district, within Redevelopment Project No. 1 (the "Project") in the City, and will adopt a Tax
Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements
within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as
amended (the “TIF Act”); and
Whereas, the Authority has determined to use tax increments from the TIF District to
pay for certain administrative costs identified in the TIF Plan (the "Qualified Costs"), which costs
may be financed on a temporary basis from Authority funds available for such purposes; and
Whereas, under Section 469.178, subdivision 7 of the TIF Act, the Authority is
authorized to advance or loan money from the Authority'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 Authority intends to reimburse itself for the Qualified Costs from tax
increments derived from the TIF District in accordance with the terms of this resolution (the
"Interfund Loan"); and
Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park
Economic Development Authority as follows:
1. The Authority hereby authorizes the advance of up to $50,000 from any legally
authorized Authority fund or so much thereof as may b e paid as Qualified Costs. The Authority
shall reimburse itself for such advances 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 August 1 and February 1 (each a "Payment Date"), commencing on the first
Payment Date on which the Authority has Available Tax Increment (defined below), or on any
other dates determined by the Executive Director of the Authority, 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 Authority,
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EDA Resolution No. 22-26 2
generated in the preceding six (6) months with respect to the property within the TIF District
and remitted to the City 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
prepayable in whole or in part at any time by the Authority 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 Authority in
accordance with Section 469.178, subdivision 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, includi ng
without limitation the Authority or the City. 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 Authority 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 Authority 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 June 6, 2022
Karen Barton, executive director Margaret Rog, president
Attest:
Melissa Kennedy, secretary
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