HomeMy WebLinkAbout13-16 - ADMIN Resolution - Economic Development Authority - 2013/11/18ST. LOUIS PARK ECONONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 13-16
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING
DISTRICT TO BE CREATED BY THE CITY OF ST. LOUIS PARK AND THE ST.
LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
BE IT RESOLVED by the Board of Commissioners (the "Board") of the St. Louis Park
Economic Development Authority (the "Authority"), as follows:
Section 1. Background.
1.01. The Authority and the City of St. Louis Park (the "City") intend to create in the
future a tax increment financing district (the "TIF District") within Redevelopment Project No. 1
(the "Project") in order to provide a funding source to assist in the redevelopment of certain real
property in the City (the "Property"), which Property is scheduled for acquisition by the
Authority in 2013.
1.02. The Authority has determined to pay for certain costs of the Project consisting of
land acquisition, public improvements, including but not limited to design and planning costs
and interest, and for administrative expenses, including but not limited to fees of attorney and
financial advisors, and interest (collectively, the "Qualified Costs"), which costs may be financed
on a temporary basis from City or Authority funds available for such purposes.
1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to
advance money from the Authority's general fund or any other fund from which such advances
may be legally authorized, in order to finance the Qualified Costs.
1.04. The Authority intends to reimburse itself for the funds advanced for 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").
Section 2. Terms of Interfund Loan.
2.01. The Authority hereby authorizes the advance of up to a total of $2,850,000 from the
EDA Development Fund or so much thereof as may be paid as Qualified Costs. The Authority shall
be reimbursed for such advances from tax increments derived from the TIF District, 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.
2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid annually on
December 31 ("Payment Date"), commencing on the first Payment Date, commencing on the
first Payment Date on which the Authority has Available Tax Increment (defined below), or on
any other dates determined by the Authority's Executive Director, through the date of last receipt
of tax increment from the TIF District.
2.03. Payments on this Interfund Loan are payable solely from "Available Tax
Increment," which shall mean, on each Payment Date, tax increment available after other
EDA Resolution No. 13-16 2
obligations have been paid, or as determined by the Executive Director, generated in the
preceding six (6) months with respect to the property within the TIF District and remitted to the
Authority by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to
469.1799, all inclusive, 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.
2.04. The principal sum and all accrued interest payable under this Interfund Loan are
pre -payable in whole or in part at any time 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.
2.05. This Interfand Loan is evidence of an internal borrowing by the Authority 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 City and Authority. Neither the State of Minnesota, nor any political
subdivision thereof shall be obligated to pay the principal of or interest on this hiterfund 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 Authority 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.
2.06. The Authority may amend the terms of this Interfund Loan at any time by
resolution of the Board of Commissioners, including a determination to forgive the outstanding
principal amount and accrued interest to the extent permissible under law.
3. Effective Date. This resolution is effective upon the date of its approval.
for Administration: Adopted by the Economic Development Authority
November 18, 2013
hector resident
Attest