HomeMy WebLinkAbout17-13 - ADMIN Resolution - Economic Development Authority - 2017/05/01ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 171.3
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE
OF CERTAIN COSTS IN CONNECTION WITH THE WOODDALE
STATION TAX INCREMENT FINANCING DISTRICT
WHEREAS, the City Council of the City of St. Louis Park, Minnesota (the "City"), intends
to establish the Wooddale Station Tax Increment Financing District (the "TIF District") within
Redevelopment Project No. 1 (the "Project"), and will adopt a Tax Increment Financing Plan (the
"TIF Plan") for the purpose of financing certain improvements within the Project.
WHEREAS, the St. Louis Park Economic Development Authority (the "EDA") has
determined to use tax increments from the TIF District to pay for certain costs identified in the TIF
Plan, which may include land/building acquisition, site improvements/preparation, utilities, other
qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"),
which costs may be financed on a temporary basis from EDA funds available for such purposes.
WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, 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.
WHEREAS, the EDA intends to reimburse itself for the 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").
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 $1,600,000, 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 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 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.
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
EDA Resolution No. 17-13
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
r terest to the extent permissible under law,
Revi e f dministration: Adopted by the Economic Development
Authority May 1, 2017
Thomas K. I-Iarmening, Executive Director Anne Mavity, President
Attest
Mel ss Kennedy Se r ary