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HomeMy WebLinkAbout15-02 - ADMIN Resolution - Economic Development Authority - 2015/02/02ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 15-02 RESOLUTION AUTHORIZING AN INTERNAL LOAN FOR ADVANCE OF FUNDS IN CONNECTION WITH ACQUISITION OF CERTAIN PROPERTY WITHIN REDEVELOPMENT PROJECT NO. 1 BE IT RESOLVED by the St. Louis Park Economic Development Authority (the "Authority") as follows: Section 1. Recitals. 1.01. The Authority and City of St. Louis Park ("City") have determined that it may be necessary and desirable to establish a tax increment financing district (the "TIF District") within Redevelopment Project No. 1 (the "Project"), and to adopt a tax increment financing plan (the "TIF Plan") for the TIF District, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"). 1.02. Under Section 469.178, subdivision 7 of the TIF Act, the Authority may incur certain costs related to the Project, which costs may be financed on a temporary basis from available Authority or City funds and repaid from certain tax increments. 1.03. The Authority intends to acquire certain property within the Project described on the attached Exhibit A (the "Property"). Upon acquisition of the Property, the City or the Authority may demolish the structure on the Property and/or resell it for redevelopment purposes. 1.04. The Authority intends to reimburse itself for a portion of the cost of acquisition of the Property, administrative costs of the TIF District, and the cost of demolition, environmental remediation, soil correction, and related soft costs (together, 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 "TIF Loan"). 1.05. The Authority has determined to specify the terms of the TIF Loan in more detail in this resolution. Section 2. Terms of TIF Loan. 2.01. The Authority shall repay, to the Authority fund from which the Qualified Costs are initially paid or advanced, the principal amount of funds advanced not to exceed $4,000,000 together with interest on the principal amount advanced, accruing from the date of each initial expenditure or advance, at the rate of 4% (except as otherwise described below). The maximum interest rate under Section 469.178, subd. 7of the TIF Act is the greater of (a) the rate specified under Minnesota Statutes, Section 270C.40 or (b) the rate specified under Minnesota Statutes, Section 549.09, in effect for the calendar year in which the expenditure or advance is made. Advances related to the Property are expected to occur in 2015, when the maximum interest rate is 4%. The Authority selects 4% as the effective rate for all advances, unless advances are made in a subsequent calendar year or years when the statutory maximum is less than 4%, in which event the effective rate for advances in each such year is the maximum statutory rate for that year. EDA Resolution No. 15-02 2.02. Principal and interest ("Payments") shall be paid semi-annually on each August 1 and February 1 ("Payment Dates"), commencing on the first Payment Date after the first advance of Qualified Costs and continuing through the earlier of (a) the date the principal and accrued interest of the TIF Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF District, Payments will be made in the amount and only to the extent of Available Tax Increment as hereinafter defined. Payments shall be applied first to accrued interest, and then to unpaid principal, 2.03. Payments on this TIF Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, all of the tax increment (as defined in the TIF Act) generated in the preceding six (6) months with respect to the property within the TIF District, subject to the provisions of Section 2.04 hereof. 2.04. Payments on this TIF Loan are subordinate to any outstanding or future bonds, notes or obligations issued to developers or third parties and secured in whole or in part with Available Tax Increment (unless otherwise specified in the relevant outstanding or fixture instrument), and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment, 2.05. The principal sum and all accrued interest payable under this TIF Loan are pre- payable in whole or in part at any time by the Authority 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 TIF Loan, 2.06. This TIF Loan is evidence of an internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, subdivision 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This TIF 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 City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this TIF 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 TIF Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the TIF Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.07. The Authority may amend the terms of this TIF Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued i to st to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. by the St. Louis Park Economic Development Authority this 2nd day of February, 2015. Adopted by the Economic Development Authority February 2, 2015 President Attest Secretary�a� EDA Resolution No. 15-02 3 EXHIBIT A Legal Description of Property That part of Government Lot 5, Section 16, Township 117, Range 21, Hennepin County, Minnesota, described as follows: Commencing at a point in the Southwesterly boundary line of Auditor's Subdivision Two Hundred Forty Nine (249) of Government Lot 5, Section 16, Township 117 North, Range 21 West, according to the duly recorded plat thereof and situate in Hennepin County, Minnesota, said point being distant Northwestwardly 29 feet measured at right angles thereto from the Northerly right of way line of the Minneapolis and St. Louis Railway Company (which right of way line is parallel with and distant 50 feet at right angles from the center line of the southbound main track of said railway company as there now located), which point of beginning is marked by a judicial landmark marking the Southeasterly corner of the tract herein described; thence Southwestwardly parallel with said right of way line 600 feet to a judicial landmark marking the Southwesterly corner of the tract herein described; thence Northwestwardly at right angles 166.50 feet to a judicial landmark marking the Northwesterly corner of the tract herein described; thence Northeastwardly at approximately right angles, 600 feet to a point on the Northwesterly extension of the Southwesterly boundary line of said Auditor's Subdivision Two Hundred Forty Nine (249) to said Government Lot 5, which point is marked with a judicial landmark marking the Northeasterly corner of the tract herein described; thence Southeastwardly upon and along said Southwesterly boundary line, as extended, 168.4 feet to the point of beginning. Except that part which lies westerly of the following described line: Commencing at the most northerly corner of the above described property; thence southwesterly along the northwesterly line of said described property a distance of 273.44 feet to the point of beginning of the line to be described; thence southwesterly deflecting to the left 10 degrees 51 minutes 16 seconds, 131.79 feet; thence southerly 122.40 feet along a tangential curve concave to the east having a radius of 120.00 feet and a central angle of 58 degrees 26 minutes 30 seconds; thence southerly, tangent to said curve, 30.99 feet; thence southwesterly 218.40 feet along a tangential curve concave to the west having a radius of 180.00 feet and a central angle of 69 degrees 31 minutes 00 seconds and said line there terminating.