HomeMy WebLinkAbout15-16 - ADMIN Resolution - Economic Development Authority - 2015/08/17ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 15-16
RESOLUTION AUTHORIZING AN INTERFUND LOAN
FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH
THE SHOREHAM TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED by the Board of Commissioners (the "Board") of the St. Louis Park
Economic Authority (the "EDA") of the City of St. Louis Park, Minnesota (the "City"), as
follows:
WHEREAS, the City Council of the City intends to establish the Shoreham Tax
Increment Financing District (the "TIF District") within Redevelopment Project No. I (the
"Project"), and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of
financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections
469.174 to 469.1794, as amended (the "Act"); and
WHEREAS, 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 legally available for such purposes; and
WHEREAS, under Section 469.178, Subd. 7 of the 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 as follows:
1. The EDA hereby authorizes the advance of up to $50,000 from any legally
authorized EDA fund or so much thereof as may be paid as Qualified Costs. The EDA shall
reimburse itself for such advances together with interest at the rate of 4%, which rate applies for
the duration of the Interfund Loan, and does not exceed the greater of (a) the rate specified under
Minnesota Statutes, Section 270C.40 or (b) the rate specified under Minnesota Statutes, Section
549.09.
2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-
annually on each August I and February I (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 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 Act. Payments on this Interfund Loan are subordinated to any
outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax
EDA Resolution No. 15-16 2
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 Section 469.178, Subd. 7 of the 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 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
interefTTNhe extent permissible under law.
Administration: Adopted by the Economic Development
1-1 Authority August 17, 2015
President
Attest
A�P
Secr tary