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HomeMy WebLinkAbout21-EDA-352EDA RESOLUTION 21-EDA-352 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1-7 (A HOUSING DISTRICT) BE IT RESOLVED by the Board of Commissioners (the "Board") of the Mounds View Economic Development Authority (the "Authority"), as follows: Section 1. Background. 1.01. The Authority was created pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended, and was authorized to transact business and exercise its powers by a resolution of the City Council of the City of Mounds View, Minnesota (the "City"). 1.02. The Authority and the City have undertaken a program to promote economic development and job opportunities, promote the development and redevelopment of land which is underutilized within the City, and facilitate the development of affordable housing, and in this connection created a redevelopment district known as the Mounds View Economic Development Project (the "Project") in the City, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended. 1.03. The City and the Authority have approved the establishment of Tax Increment Financing District No. 1-7 (a housing district) (the "TIF District") within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act"), and have adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. 1.04. The Authority has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition/site improvements/preparation, affordable housing, public utilities, streets and sidewalks, other qualifying improvements, interest, and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from Authority or City funds available for such purposes. 1.05. Under Section 469.178, subdivision 7 of the TIF Act, the Authority and the City are 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, including the Qualified Costs. 1.06. The City will loan funds to the Authority to finance the Qualified Costs (the "Interfund Loan") in an amount of up to $100,000 in accordance with the terms of this resolution DOCSOPEN\MU205\52\763647.v3-11 /19/21 21-EDA-352 Page 2 and the resolution adopted or to be adopted by the City Council of the City on the date hereof. 1.07. The Authority intends to reimburse the City for the portion of the Qualified Costs paid by the Interfund Loan from tax increments derived from the property within the TIF District in accordance with the terms of this resolution. Section 2. Terms of Interfund Loan. 2.01. The Interfund Loan shall be made in the amount of up to $100,000 (or so much thereof as may be paid as Qualified Costs) to the Authority. 2.02. The Authority shall reimburse the City for such advances together with the 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 27OC.4O 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 27OC.4O or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.03. Principal and interest (the "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 Authority has Available Tax Increment (defined below), or on any other dates determined by the Authority, through the date of last receipt of tax increment from the TIF District. 2.04. Payments on the 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 Authority, generated in the preceding twelve (12) months with respect to the property within the TIF District and remitted to the Authority by Ramsey County, Minnesota, all in accordance with the TIF Act. Payments on the 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. 2.05. The principal sum and all accrued interest payable under the Interfund Loan is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under any interfund loan. 2.06. The Interfund Loan 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 thereof under this resolution. The Interfund Loan and the interest thereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, Ramsey County, Minnesota 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 Interfund Loan or other costs incident hereto except out of Available Tax Increment. Neither the full faith and credit nor the taxing power of the State of Z DOCSOPEN\MU205\52\763647.v3-11/19/21 21-EDA-352 Page 3 Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident thereto. 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. 2.07. The Authority may amend the terms of the Interfund Loan at any time by resolution of the Board to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. Adopted on the 22"d day of November, 2021. Carol A. Mueller, President Attest: A'� �"' '/ Nyle Z' und, ecutive Director (SEAL) 5 DOCSOPEN\MU205\52\763647.v3-11 /19/21