HomeMy WebLinkAbout13-03 - ADMIN Resolution - Economic Development Authority - 2013/05/06ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 13-03
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE
OF CERTAIN COSTS IN CONNECTION WITH THE ELIOT PARK 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, as follows:
WHEREAS, the City Council for the City of St. Louis Park, Minnesota (the "City"),
intends to establish the Eliot Park Tax Increment Financing District (the "TIF District") within
Redevelopment Project No. 1 (the "Project"), and will adopt a Tax Increment Financing Plan (the
"TIF Plan") for the purpose of financing certain improvements within the Project.
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 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 as follows:
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 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. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on
each August 1 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.
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
EDA Resolution No. 13-03 -2-
preceding six (6) months with respect to the property within the TIF District and
remitted to the City 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.
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
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 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 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
trued interest to the extent permissible under law.
Adopted by the Economic Development
Authority May 6, 2013
resident
Attest
S&cretary &f