HomeMy WebLinkAbout18-10 - ADMIN Resolution - Economic Development Authority - 2018/08/06St. Louis Park Economic Development Authority
Resolution No. 18-10
Resolution authorizing an interfund loan for advance of certain costs in
connection with the Bridgewater Bank Tax Increment Financing District
Whereas, the City Council of the City of St. Louis Park, Minnesota (the "City"), intends to
establish the Bridgewater Bank Tax Increment Financing District (a redevelopment district)
within Redevelopment Project No. 1 (the "Project"), and will adopt a Tax Increment Financing
Plan (the "TIF Plan")for the TIF District 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:
The EDA hereby authorizes the advance of up to $25,000, 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.
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.
EDA Resolution No. 18-10
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, 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.
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 interest to the extent permissible under law.
for,ldministration: Adopted by the Economic Development
August 6, 2018
Tom Harmglhir Executive Director Sfeve Hallfin,
Attest
Meliss Kennedy re ary