HomeMy WebLinkAboutRES 21-026 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE LOWRY GROVE TIF DISTRICTCITY OF ST. ANTHONY
HENNEPIN COUNTY
STATE OF MINNESOTA
Councilmember introduced the following resolution and moved its adoption:
RESOLUTION 21-026
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH THE LOWRY GROVE TIF DISTRICT.
BE IT RESOLVED by the City Council (the "Council") of the City of St. Anthony, Minnesota (the
"City"), as follows:
Section 1. Background.
1.01. The City has approved the establishment of The Lowry Grove TIF District (the "TIF District")
within Redevelopment Project Area No. 3 (the "Project Area"), and has adopted a Tax Increment Financing Plan
(the "TIF Plan") for the purpose of financing certain improvements within the Project Area.
1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of site
improvements/preparation, interest, and administrative costs (collectively, the "Qualified Costs"), which costs
may be financed on a temporary basis from City funds available for such purposes.
1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan
money from the City's general fund or any other fund from which such advances may be legally authorized, in
order to finance the Qualified Costs.
1.04. The City 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 City hereby authorizes the advance of up to $25,000 from any City fund or so much thereof
as may be paid as Qualified Costs. The City shall reimburse itself for such advances from Available Tax
Increment (defined below) together with interest at the rate of 4%, which does not exceed the greater of the rates
specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan is authorized.
Interest accrues on the principal amount from the date of each tranche.
2.02. Principal and interest ("Payments") on the outstanding Interfund Loan balance shall be paid
annually on each December 31 (each a "Payment Date"), commencing on the first Payment Date on which the
City has Available Tax Increment (defined below), or on any other dates determined by the City Manager,
through the date of 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 City Manager, generated in the preceding twelve (12) months with respect to the property within the TIF
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District and remitted to the City by Hennepin County, all in accordance with Minnesota Statutes, Sections
469.174 to 469.1794, all inclusive, as amended. 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 City 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 City in accordance with
Minnesota Statutes, Section 469.178, Subd. 7, 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. 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
h3terfhnd Loan or other costs incident hereto. The City 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. Before the latest decertification of any tax increment financing district from which the interfund
loan is to be repaid, the City may modify or amend the terms of this htterfund Loan, in writing, by resolution of
the City Council, including a determination to forgive the outstanding principal amount and accrued interest to
the extent permissible under law.
Section 3. Effective Date. This resolution is effective upon the date of its approval.
The motion for the adoption of the foregoing resolution was duly seconded by Council member
, and upon a vote being taken thereon, t/he, following voted in favor thereof:
cj'31u/ "Lc.l J'e�1Son/
and the following voted against the same:
Dated: March 23, 2021
Randy
ATTEST:
Nicole YAiller, City Clerk
Reviewed for administration:
Charlie Yunker, City Manager
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