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HomeMy WebLinkAbout01-07 - ADMIN Resolution - Economic Development Authority - 2001/06/25ST. LOUIS PARI{ ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 01-07 RESOLUTION RATIFYING AND SPECIFYING TERMS OF CERTAIN INTER -FUND LOANS RECITALS A. The City of St. Louis Park ("City") and its Economic Development Authority ("Authority") have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection the Authority administers the Redevelopment Project No. 1 pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act"). B. Pursuant to the Act, the Authority is authorized to undertake certain activities to prepare such real property for development and redevelopment by private enterprise. C. Within the Project the Authority and City have established the Park Center Boulevard Housing Tax Increment Financing District (the "Park Center TIF District") and the Victoria Ponds Tax Increment Financing District (the "Vic Ponds TIF District"). D. In order to provide funds for land acquisition in the Park Center District, the Authority made an interfund loan from the Development Fund in the amount of $500,000, of which $300,000 was disbursed as of December 31, 1997 and $200,000 was disbursed on December 31, 1998 (the "Park Center Loan"). E. The Park Center Loan is payable from and to the extent of "Available Park Center Increment," which term means all tax increment as defined in Minnesota Statutes, Section 469.174 to 469.179 (the "TIF Act") that is received by the Authority from the Park Center TIF District as of any payment date, including any developer payments that are deemed to be tax increment under the TIF Act, F. In order to meet the Authority's local contribution obligations for the Park Center District, the Authority has agreed to forgive repayments of a portion of the Park Center Loan in the amount of 10 percent of the gross total tax increments from the Park Center District that are received by the Authority as of any payment date on the Park Center Loan; provided that if the Authority determines that the local contribution is not required by law in order to maintain the status of the Park Center district as exempt from state aid loss under Minnesota Statutes, Section 273.1399, all loan repayments from and after the date of such determination will be made in full (to the extent of Available Park Center Increment). G. In order to provide funds to pay for land acquisition and public improvement costs related to the Hutchinson Spur Trail in connection with the Vic Ponds TIF District, the Authority made an interfund loan from the Development Fund in the amount of $700,000, of which $570,000 was disbursed as of December 31, 1998 and $130,000 was disbursed on July 6, 2001 (the "Vic Ponds Loan"). H. The Vic Ponds Loan is payable from and to the extent of "Available Vic Ponds Increment," which term means all tax increment as defined in the TIF Act that is received by the Authority from the Vic Ponds District as of any payment date, including any developer payments that are deemed to be tax increment under the TIF Act, but excluding any amounts due under the Limited Revenue Tax Increment Note issued by the Authority pursuant to the Contract for Private Redevelopment between the Authority and SVK Development, Inc. dated September 12, 1996 (the "Vic Ponds Note"). EDA Resolution No. 01-07 -2- I. As of the date of this resolution, the Authority has repaid a portion of the Park Center Loan and the Vic Ponds Loan in accordance with the terms described in this resolution. J. The Authority has determined a need to ratify the establishment of the Park Center Loan and the Vic Ponds Loan and to document the repayment schedule, interest rate, and payment terms for the remaining balance of those loans. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The unpaid principal amount of the Park Center Loan bears interest at the rate of 8.25 percent per annum accrued from the dates of disbursement described in recital D above through June 30, 2001; and bears interest at the rate of 5% from July 1, 2001 until the principal and interest are paid in full.. Payments have been and will be made to the Development Fund in the amount of Available Park Center Increment on each August 1 and February 1, commencing August 1, 1998 until the principal and interest are paid in full or the Park Center TIF District is terminated, whichever occurs first. Payments of Available Park Center Increment are applied first to accrued interest and then to outstanding principal. Payment of the Park Center Loan is subject to the forgiveness for local match described in Recital F above. 2. The unpaid principal amount of the Vic Ponds Loan bears interest at the rate of 5.0 percent per annum accrued from the dates of disbursement described in recital G above until the principal and interest are paid in full. Payments have been and will be made in the amount of Available Vic Ponds Increment on each August 1 and February 1 until the principal and interest are paid in full or the Vic Ponds TIF District is terminated, whichever occurs first. Payments of Available Vic Pond Increment are applied first to accrued interest and then to outstanding principal. Repayment of the Vic Ponds Loan is subordinate to the Vic Ponds Note. 3. The Board ratifies all actions of its staff and consultants in making the Park Center Loan and the Vic Ponds Loan, and in malting all the prior repayments. Staff is authorized and directed to attach to this resolution schedules indicating the payments applied to both loans and the outstanding principal amount of each loan as of the date of approval of this resolution. 4. The Board authorizes and directs staff to take all actions necessary to repay the outstanding balance of the Park Center Loan and the Vic Ponds Loan in accordance with this resolution. Approved by the Board of Commissioners of the St. Louis Park Economic Development Authority this June 25, 2001. Reviewed for Administration Executive Director President ATTEST: Selretary