HomeMy WebLinkAbout12-11 - ADMIN Resolution - Economic Development Authority - 2012/08/20ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 12-11
AUTHORIZING AMENDED TERMS OF INTERNAL LOAN FOR ADVANCE OF FUNDS
IN CONNECTION WITH HOUSING IMPROVEMENTS
WITHIN THE WESTWOOD VILLA OWNERS ASSOCIATION
HOUSING IMPROVEMENT AREA
BE IT RESOLVED by the St. Louis Park Economic Development Authority (the
"EDA") as follows:
Section 1. Recitals.
1.01. The City of St. Louis Park ("City") is authorized under Minnesota Statutes,
Sections 428A.II to 428.21 (the "Housing Improvement Act") to establish by ordinance a
housing improvement area within which housing improvements are made or constructed and the
costs of the improvements are paid in whole or in part from fees imposed within the area. The
City Council of the City ("Council") adopted a Housing Improvement Area policy on July 16,
2001.
1.02. In order to facilitate Housing Improvements to property known as the "Westwood
Villa Owners Association" the Council on May 7, 2012, established the Westwood Villa
Association Housing Improvement Area by Ordinance No. 2413-12 (the "Enabling Ordinance")
and approved a Housing Improvement Fee (the "Fee") by Resolution 12-066.
1.03. The City has entered into a Development Agreement between the City and the
Westwood Villa Association (the "Association") dated as of July 1, 2012, as amended by an
Amended and Restated Development Agreement dated as of the date hereof (the "Amended
Agreement") under which the City will make a loan of funds legally available for such purpose
(the "Loan") to the Association to finance the Housing Improvements as described in the
Agreement.
1.04. The Amended Agreement contains provisions amending the terms of the Loan to
the Association, and the City has requested that the EDA modify its Resolution Authorizing
Terms of Internal Loan for Advance of Funds in Connection with Housing Improvements within
the Westwood Villa Owners Association Housing Improvement Area, adopted on July 16, 2012
(the "Loan Resolution"), to provide for terms of the Loan consistent with the terms of the
Amended Agreement.
1.05. The EDA has determined to specify the amended terms of the Loan in more detail
in this resolution.
Section 2. Modified Loan Terms.
2.01. The Loan will be disbursed from the EDA Development Fund to the Association
to reimburse approved costs of the Housing Improvements as incurred, in the maximum amount
of $1,300,000 or so much thereof as is actually disbursed (the "Loan Amount").
2.02. The Loan Amount, together with interest accruing from January 1, 2013, shall be
repaid over a 20 -year term in semi-annual installments of principal and interest ("Payments") on
each February 1 and August 1, commencing February 1, 2013. Interest shall accrue on the
EDA Resolution No. 12-11 -2-
unpaid principal at a rate that is 100 basis points higher than the true interest cost of the City's
Taxable General Obligation Housing Improvement Area Bonds, Series 2012A (to be issued by
the City in September 2012 to finance a portion of certain housing improvements within a
separate housing improvement area within the City) (the "Bonds'). Upon issuance of the Bonds,
the City Clerk shall cause to be prepared a finalized schedule of Payments, which schedule shall
be attached to this Resolution as Exhibit A.
2.03. Except as modified by this Resolution, the Loan Resolution shall remain in full
force and effect.
Section 3. Effective Date. This resolution is effective upon execution in full of the
Amended Agreement.
Approved by the St. Louis Park Economic Development Authority this 20th day of August,
2012.
Reviewed for Administration:
Attest
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Adopted by the Economic Development Authority
August 20, 2012
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President