HomeMy WebLinkAboutResolution No. 2025-05 Advance of Certain Costs in Connection with the Eden/Willson Redevelopment TIF DistrictRESOLUTION NO. 2025-05
RESOLUTION FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE EDEN /
WILLSON REDEVELOPMENT 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 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 the design
and construction of the Vernon Avenue and Highway 100 Interchange 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").
Section 2. Terms of Interfund Loan.
2.01. The HRA hereby authorizes the advance of up to $1,500,000 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.
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
CITY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
(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.
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 Interfund Loan or advance made in a calendar
year
Section 3. Effective Date. This resolution is effective upon 1
Approved by the Board on August 14, 2025.
ATTEST:
?James Pierce, Secretary
STATE OF MINNESOTA )
COUNTY OF HENNEPIN) SS
CITY OF EDINA )
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 August 14, 2025, and as recorded in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this day of �S 1 2025.
o, r Executive Director