HomeMy WebLinkAbout17-22 - ADMIN Resolution - Economic Development Authority - 2017/12/04ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 17-22
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") has previously adopted an interfund loan resolution for
certain capital costs related to construction of the Wooddale Avenue and Highway 7 Interchange
and the West 36th Street streetscape, in the maximum principal amount of $5,000,000, 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 costs identified in the TIF Plan, consisting of capital costs
related to further construction of the Wooddale Avenue and Highway 7 Interchange (collectively,
the "Qualified Costs"), which 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 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 EDA hereby authorizes the advance of up to $7,000,000, 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 2017, 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 pursuant to Laws 2017,
EDA Resolution No. 17-22 2
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 Interfand 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 Interfand 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 Interfand 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
/ imerest to the extent permissible under law.
for Administration: Adopted by the Economic Development
A Authority December 4, 2017
Director Anne Mavity, President
Attest
I �trMelissa Kennedy, Sec et y