HomeMy WebLinkAboutHRA Resolution No. 2008-01 Authorizing Payment of Costs Incurred TIF District #1208 RESOLUTION NO. 2008-01
�y° CITY OF EDINA
•<;,,,.�„�,,�>>• HENNEPIN COUNTY, MINNESOTA
City of' FC11na
A RESOLUTION AUTHORIZING THE ADVANCE OF CERTAIN
FUNDS TO PAY COSTS INCURRED IN CONNECTION WITH
TAX INCREMENT FINANCING DISTRICT NO.1208
WHEREAS,the Edina Housing and Redevelopment Authority (the"Authority") is creating
a new Tax Increment Financing District No.1208 (the"District") pursuant to Minnesota Statutes,
Sections 469.174 to 469.1799;and
WHEREAS,in order to finance the Authority's payment of costs of redevelopment within
the District the Authority intends to advance funds from Tax Increment Financing District No.
1203 and other possible sources to pay costs incurred within the District; and
WHEREAS, the Authority intends that such advances will constitute a loan to be repaid
with tax increments generated from the District;and
WHEREAS, the 2001 Minnesota Legislature enacted Minnesota Statutes,Section 469.178,
subd. 7,which authorizes a tax increment authority or municipality to make loans to a tax
increment district to finance qualified expenditures and to repay such loans with tax increment
from the benefited district; and
• WHEREAS, the Authority desires by this resolution to document the making of the loan to
the District and to express the terms and conditions of the loan.
NOW THEREFORE,BE IT RESOLVED by the Board of Commissioners of the Authority
as follows:
1. The maximum principal amount of the loan to be made to Tax Increment Financing
District No. 1208 is$1,000,000.
2. Interest shall be payable on the outstanding principal amount of the loan from the
date of each advance of the loan at the rate of 3.5% per year until the loan is repaid,provided,that
if the maximum rate of interest allowed under Minnesota Statutes,Section 469.178,subd. 7,is less
than 3.5% then the loan shall accrue interest at such lower rate.
3. The term of the loan shall be until the earlier of the following: (i)when the principal
amount of the loan and all accrued interest thereon has been paid in full; or (ii)when the Authority
is no longer receiving tax increment from the District.
ADOPTED by the Board of Commissioners of the Edina Hous g and Redevelopment
Authority this 2nd day if January,2008.
ATTEST:
xecutive Ivctq Chair
City Hall 952-927-8861
4801 WEST 50TH STREET FAX 952-826-0390
EDINA,MINNESOTA,55424-1394 www.cityofedina.com TTY 952-826-0379