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EHLERS 20 <br />LEADERS IN PUBLIC FINANCE <br />To: Mike Morrison —City Manager <br />ORoger Larson— Finance Director <br />G From: Stacie Kvilvang — Ehlers and Associates <br />LU Date: June 26, 2009 <br />Subject: Amended Interfund Loan — TIF District 3-5 (Apache Redevelopment) <br />The City's Mousing and Redevelopment Authority (HRA) is overseeing the administration and <br />development within the above referenced TIF District. On June 14, 2005, the HRA approved an <br />interfund loan in an amount up to $200,000 for various administrative and capital expenditures in <br />TIF District 3-5, in connection with the Northwest Quadrant Redevelopment Project. On February <br />14 2006, the HRA approved a resolution increasing the interfund loan cap to $500,000 to cover <br />some anticipated costs to the district. <br />Due to recent payments by the HRA to Fannie Mae, staff is of the opinion that the cap should be <br />raised to $1 million to cover future Fannie Mae payments that may be required and other <br />administrative costs of the district. It should be noted that this is a maximum amount and that the <br />HRA does not anticipate that it will need to loan this total amount to the District, but would like to <br />have the authority for the higher amount to provide flexibility as qualified expenditures arise. <br />State Statute requires that the HRA approve a resolution authorizing an internal (interfund) loan to the <br />respective TIF District and set the terms for reimbursement of the qualified TIF costs to be repaid <br />with tax increments from the respective TIP District. On June 23, 2009, the HRA will be approving <br />a resolution increasing the interfund loan cap to $1,000,000 in order to accommodate these <br />expenditures and future unforeseen expenditures. In addition to the HRA's approval of this <br />resolution, State Statute requires that the City Council approve the interfund loan as well, even if it is <br />made by the HRA. <br />Please contact me at 651-697-8506 with any questions. <br />cc: Jay Lindgren — Dorsey & Whitney <br />File <br />LEADERS IN PUBLIC FINANCE <br />3o6o Centre Pointe Drive Phone: 65i-697-8506 Fax: 65r697-8SSS <br />Roseville, MN 55ii3-iio5 skvilvangLehlers-inccom <br />