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HomeMy WebLinkAboutHRA Resolution No. 2017-008 Interfund Loac 50th & France2 TIF EDINA HOUSING AND REDEVELOPMENT AUTHORITY CITY OF EDINA HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-08 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE SOT" AND FRANCE 2 TAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED by the Board of Commissioners (the "Board") of the Edina Housing and Redevelopment Authority (the "HRA"), as follows: Section 1. Background. 1.01. The HRA and City of Edina, Minnesota (the "City") have heretofore approved the establishment of the 50`h and France 2 Tax Increment Financing District (the "TIF District") within the Southeast Edina Redevelopment Project Area (the "Project Area"), and have adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project Area. 1.02. The HRA has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, demolition and site improvements/preparation, public utilities, streets and sidewalks, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from HRA or City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the HRA or City is authorized to advance or loan money from the general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The HRA 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"). CITY OF EDINA 4801 West 50th Street•Edina,Minnesota 55424 www.EdinaMN.gov.952-927-8861 • Fax 952-826-0390 HRA Resolution 2017-08 1.05. The Qualified Costs include up to $150,000 for the demolition and remediation of property at 3944 Market Street in 2017 and up to $4,000,000.00 for the expansion of the North Parking Ramp at 3936 Market Street in 2018. Section 2. Terms of Interfund Loan. 2.01. The HRA hereby authorizes the advance of up to $4,150,000.00 from the Centennial Lakes Tax Increment Financing fund or so much thereof as may be paid as Qualified Costs. The HRA 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 or shall be allowed to fluctuate. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid annually on each December 31 (each a "Payment Date"), commencing on the first Payment Date on which the HRA has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the HRA, through the Payment Date following 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 obligations have been paid, or as determined by the Executive Director of the HRA, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the HRA by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, 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 by the HRA 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 Interfund Loan is evidence of an internal borrowing by the HRA 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 or HRA. 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 HRA Resolution 2017-08 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 HRA 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 HRA 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 interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Approved by the Board on October 17, 2017 James B. Hovland, Chair ATTEST: Robert J. Stewart, Secretary STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK CERTIFICATE OF EXECUTIVE DIRECTOR I, the undersigned duly appointed and acting Executive Director for the Edina Housing and Redevelopment Authority do hereby certify that the attached and foregoing Resolution is a true and correct copy of the Resolution duly adopted by the Edina Housing and Redevelopment Authority at its Regular Meeting of October 17, 2017, and as recorded in the Minutes of said Regular Meeting. WITNESS, my hand and seal of said Authority this day of 2017. <S.aV"aJ Scott 4al,Executive Director