HomeMy WebLinkAbout17-16 - ADMIN Resolution - Economic Development Authority - 2017/05/15ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 17-16
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE
OF CERTAIN COSTS IN CONNECTION WITH THE ELMWOOD
APARTMENTS TAX INCREMENT FINANCING DISTRICT
WHEREAS, the City Council of the City of St. Louis Park, Minnesota (the "City"), intends
to establish the Elmwood Apartments 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 FDA's general fund or any other fund from which such
advances may be legally authorized, in order to finance the Qualified Costs.
WHEREAS, the FDA 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:
The FDA hereby authorizes the advance of up to $10,000, 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 469.174 to 469.1794,
all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any
EDA Resolution No. 17-16
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 hiterfund Loan.
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 anytime by resolution of the Board,
including a determination to forgive the outstanding principal amount and accrued interest to
;ke extent permissible under law.
for Administration: Adopted by the St. Louis Park Economic
Development Authority May 15, 2017
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Director Anne Mavity, President
Attest
MWisaenne y,cretary