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HomeMy WebLinkAbout22-36 - ADMIN Resolution - Economic Development Authority - 2022/08/15EDA Resolution No. 22-36 Authorizing an internal loan for advance of funds in connection with housing improvements within the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Recitals. 1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes, Sections 428A.11 to 428A.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. The St. Louis Park City Council (“Council”) adopted a Housing Improvement Area policy on July 16, 2001. 1.02. In order to facilitate Housing Improvements to property known as the "Bridgewalk Condominium Homeowners’ Association" the Council on June 20, 2022, established the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area by Ordinance No. 2652-22 (the "Enabling Ordinance") and approved a Housing Improvement Fee (the “Fee”) by Resolution 22-092. 1.03 For the purposes of this Resolution, the terms "Bridgewalk Condominium Homeowners’ Association" and "Housing Improvements" have the meanings provided in the Enabling Ordinance. 1.04. The City has entered into a Development Agreement (the “Agreement”), dated August 5, 2022, between the City and the Bridgewalk Condominium Homeowners’ Association (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. 1.05. On the effective date of the Enabling Ordinance, the City will transfer funds in the amount of $800,000 (the “Loan Amount”) from any account or accounts determined by the City Finance Director into a Bridgewalk Condominium Homeowners’ Association Housing Improvement Area Project Fund (the “Project Fund”) hereby established in order to pay for a portion of the costs of the Housing Improvements. Costs of the Housing Improvements will also be paid by the City’s Taxable General Obligation Housing Improvement Area Bonds, Series 2022B (the “Bonds”), in the approximate original aggregate principal amount of $4,925,000 (the “Bonds”). Pursuant to the Agreement, the source of the Loan will include the development fund administered and controlled by the Authority. The City will disburse funds in the Project Fund to the Association in accordance with Article III of the Agreement, and will reimburse itself from the housing improvement fee revenues generated by properties within the Housing Improvement Area whose current owners who have successfully applied for a hardship deferral for the payment of assessments under the City’s policy (the “Deferred Fees”). 1.06. The Authority has determined to specify the terms of the Loan in more detail in this resolution. DocuSign Envelope ID: 9FEFB53E-EC7A-4087-926C-2ECA474EE0EA EDA Resolution No. 22-36 2 Section 2. Repayment of the Loan Amount. 2.01. The Loan Amount, together with interest at the rate of 6.00% per annum accruing from the date that the initial disbursement of the Loan is made by the Authority, shall be repaid when the City receives payments of Deferred Fees. The Loan shall mature on February 1, 2043 (the “Maturity Date”). Payments of principal of and interest on the Loan shall be made when the Cit receives payments of Deferred Assessments. 2.03. Payments on the Loan Amount will be made solely from Deferred Fees. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on the Loan Amount shall be subordinate to payments on the Bonds issued by the City to finance any portion of the cost of the Housing Improvements. 2.04. 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. 2.05. The Loan evidence of an internal borrowing by the City, which is a limited obligation payable solely from Deferred Fees pledged to the payment hereof under this resolution. 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 Deferred Fees. 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 Maturity Date. 2.06. The City Finance Director is authorized and directed to determine the f und(s) or account(s) from which monies are drawn for disbursements of the Loan Amount, including the EDA development fund, and to credit repayments under this resolution to the relevant fund(s) or account(s). 2.07. 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. 2.08. The City or EDA may at any time determine to forgive the outstanding principal amount and accrued interest on the Loan Amount to the extent permissible under law. DocuSign Envelope ID: 9FEFB53E-EC7A-4087-926C-2ECA474EE0EA EDA Resolution No. 22-36 3 Section 3. Effective Date. This resolution is effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority August 15, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary DocuSign Envelope ID: 9FEFB53E-EC7A-4087-926C-2ECA474EE0EA