HomeMy WebLinkAbout19-EDA-323EDA RESOLUTION 19 -EDA -323
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING
DISTRICT (A REDEVELOPMENT DISTRICT)
BE IT RESOLVED by the Board of Commissioners (the `Board") of the Mounds View
Economic Development Authority (the "Authority"), as follows:
Section 1. Back rg ound.
1.01. The Authority has proposed to establish a Redevelopment Project Area associated
with the Skyline Motel site (the "Redevelopment Project") in the City of Mounds View (the
"City") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the
"HRA Act"), and has proposed to create a tax increment financing (redevelopment) district
within the Redevelopment Project (the "TIF District") in accordance with Minnesota Statutes,
Sections 469.174 through 469.1794, as amended (the "TIF Act") and Sections 469.090 through
469.108, as amended (the "EDA Act").
1.02. The Authority may incur certain costs related to the TIF District, which costs may
be financed on a temporary basis from available funds of the Authority.
1.03, Under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized
to advance or loan money from any fund from which such advances may be legally made in
order to finance expenditures that are eligible to be paid with tax increments under the TIF Act.
1.04. The Authority has determined that it may pay for administrative costs associated
with the establishment of the TIF District and certain other costs incurred in connection with the
proposed development of the TIF District, including but not limited to fees of the financial
advisor and legal counsel to the Authority, in the amount of $2,500,000.00 (the "Cost
Advances") on a temporary basis from the Authority's General Fund or any other fund from
which such advances, from time to time, may be legally made as an interfund loan pursuant to
Section 469.178, subdivision 7 of the TIF Act.
1.05. The Authority intends to reimburse itself for the Cost Advances from tax
increments derived from the TIF District in accordance with the terms of this resolution (the
"Interfund Loan").
Section 2. Repayment of Interfund Loan.
2.01. The Authority will reimburse itself for the Cost Advances in the principal amount
of up to $2,500,000.00, together with interest at the rate per annum described below. Interest
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accrues on the principal amount of the Interfund Loan from the date each such advance is made.
The Interfund Loan shall bear interest at the rate of 5.0% per annum.
2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid
semiannually on each August 1 and February 1 (each a "Payment Date"), commencing on the
first Payment Date on which the Authority has Available Tax Increment (as defined herein), or
on any other dates determined by the Executive Director, through the date of last receipt of
Available Tax Increment from the TIF District.
2.03. Payments on the Interfand Loan will be made solely from tax increment from the
TIF District received by the Authority from Ramsey County in the.six-month period before any
Payment Date, net of the amount paid under any agreement with a private developer or otherwise
pledged to the payment of any obligation (the "Available Tax Increment'). Payments shall be
applied first to accrued interest, and then to unpaid principal. Interest accruing from the date of
each advance will be compounded semiannually on February 1 and August 1 of each year and
added to principal until the first Payment Date, unless otherwise specified by the Executive
Director.
2.04. The principal sum and all accrued interest payable under this resolution is
prepayable in whole or in part at any time by the Authority without premium or penalty.
2.05. This resolution is evidence of an internal borrowing by the Authority in
accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation
payable solely from Available Tax Increment pledged to the payment hereof under this
resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State
of Minnesota or any political subdivision thereof, including, without limitation, the Authority or
the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated
to pay the principal of or interest on the hrterfund Loan or other costs incident hereto except out
of Available Tax Increment. The Authority 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 Authority may at any time make a determination to forgive the outstanding
principal amount and accrued interest on the Interfund Loan to the extent permissible under law.
2.07. The Authority may from time to time amend the terms of this resolution to the
extent permitted by law, including without limitation amendment to the payment schedule and
the interest rate; provided that the interest rate may not be increased above the maximum
specified in Section 469.178, subdivision 7 of the TIF Act.
Section 3. Effective Date. This resolution is effective upon its approval.
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Adopted on the 28th day of May, 2019.
Carol A. Mueller, Presideit
Attest:
Nvle Z) mhl ,. kecutive Director
(SEAL)
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