HomeMy WebLinkAboutResolution No. 2022-09 Authorizing an Interfund Loan for Advance of Certain Costs in Connection with the Eden/Willson Redevelopment TIF DistrictEDINA HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 2022-09
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH THE EDEN / WILLSON
REDEVELOPMENT TAX INCREMENT FINANCING DISTRICT
WHEREAS, construction has commenced on the private redevelopment located within the boundaries
of the Eden Willson Tax Increment Financing District; and
WHEREAS, the City intends to initiate design and engineering services for the future roadway
improvements located in and immediately adjacent to the Eden Willson Tax Increment Financing District in the
near future so that construction of the roadway improvements can be coordinated with the completion of the
private redevelopment and be delivered in a coordinated manner.
NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners (the "Board") of the Edina
Housing and Redevelopment Authority (the "HRA") as follows:
Section I. Background.
1.01. The HRA and City of Edina, Minnesota (the "City") have heretofore approved the establishment of
the Eden / Willson Redevelopment 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, all pursuant to Minnesota
Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act").
1.02. The HRA has determined to pay for certain costs identified within the TIF Plan consisting of initial
administrative expenses and the design and pre -construction expenses related to the East Grandview
Transportation public improvements (the "Qualified Costs") pursuant to Minnesota Statutes, Section 469.178,
Subd. 7 of the TIF Act, 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 of the TIF Act, 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; provided the loan or advance is authorized by resolution not
later than 60 days after money is transferred, advanced, or spent, whichever is earliest.
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
HRA Resolution 2022-09
Page 2
Section 2. Terms of Interfund Loan.
2.01. The HRA hereby authorizes the advance of up to $500,000.00 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 4.0% and will not 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 the TIF Act.
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 of the TIF Act 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 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.
HRA Resolution 2022-09
Page 3
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.
2.07. The HRA shall report in its annual report to the State of Minnesota (1) the amount of the Interfund
Loan or advance made in a calendar year; and (2) any amendment of the Interf�nd Loan or advance made in a
calendar year. 1
Section 3. Effective Date. This resolution is effective upon the date of its val.
Approved by the Board on September 7, 2022. r
ATTEST:
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS
CITY OF EDINA )
James B. Hovland, Chair
)'ames Pierce, Secretary
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 September 7, 2022, and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this m day of S-�pk 2022.
Executive Director