04-25-2018 Council Packet - Laserfiche WebLink

Home Browse Search

CITY OF LITTLE CANADA, MINNESOTA RESOLUTION NO. ______ APPROVING THE TERMS OF AN INTERNAL LOAN IN CONNECTION WITH THE SUITE LIVING SENIOR HOUSING PROJECT WITHIN TIF DISTRCIT 7-1 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LITTLE CANADA, MINNESOTA ("CITY") AS FOLLOWS: Section 1. Background. 1.01. The City has approved a 32-unit Senior Housing project to be constructed at 2736 and 2744 Rice Street. 1.02. The City has determined to use an internal loan to provide $600,000 in financing to the Developers to acquire the properties at 2736 and 2744 Rice Street. 1.03 The source of funding will be the Water & Sewer Capital Replacement Fund #604 (the “Fund”), which fund is administered by the City and has a balance that is legally available for such purposes. 1.04. The City intends to reimburse the Fund from the repayment made by the Developer within three years of the date of the loan as documented by the loan documents with the Developer (which terms are referred to collectively as the (“Internal Loan”). Section 2. Terms of Internal Loan. 2.01. The City shall transfer $600.000 from the Water & Sewer Capital Replacement Fund #604 to the Economic Development Fund #105 to provide the interim financing for the Developer of the Suite Living project. Interest on this Internal Loan shall be at four percent per annum (4%). 2.02. Principal and interest ("Payment") shall be due and payable in full with a balloon payment due within three (3) years from the date on the loan agreement between the City and the Developer. 2.03. The principal sum and all accrued interest payable under this Internal Loan are pre-payable in whole or in part at any time by the City without premium or penalty. 2.04. This resolution is evidence of an internal borrowing by the City and shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Internal Loan or other costs, 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 Internal Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Internal Loan or accrued interest thereon, which may remain unpaid after the final Payment Date.