HomeMy WebLinkAboutEDA RES 2002-04COLUMBIA HEIGHTS ECONOMiC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2002-04
APPROVING AND RATIFYING THE TERMS OF AN INTERFUND LOAN POLICY
IN CONNECTION WITH HOUSING REDEVELOPMENT TIF DISTRICT NO. 1
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS ("BOARD") OF THE
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ("AUTHORITY") AS
FOLLOWS:
Section 1. Background.
1.01. The Authority has heretofore approved the establishment of the Homing
Redevelopment Tax Increment Financing District No. 1 (the "TIF District") within Central Business
Redevelopment District (the "Project"), and has adopted a tax increment financing plan (the "TIF
Plan") for the purpose of financing certain improvements within the Project.
1.02. Under Minnesota Statutes, Section 469.178, Subdivision 7, the Authority is
authorized to advance or loan money from the Authority's general fund or any other fund from
which such advances may be legally made, in order to finance costs which may otherwise be paid
pursuant to the TIF Plan (the "Qualified Costs").
1.03. The Authority intends to reimburse itself for the Qualified Costs from tax increments
derived from the TIF District in accordance with the terms of the Policy set forth in this Resolution.
Section 2. Terms of TiF Loan.
2.01. The Authority is hereby authorized to make one or more loans from its general fund,
or any other source from which such loans may be made, to pay Qualified Costs.
2.02. The maximum principal amount of any single loan made pursuant to this Policy
shall be $268,000 (each such loan is referred to herein as a "Loan").
2.03.
Principal ("Payments") on a Loan shall be paid semi-annually on each August 1 and
February 1 commencing on such date as may be determined by the Authority and
continuing thereafter to and including the earlier of (a) the date the principal of the
TIF Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF
District ("Payment Dates"). Payments will be made in the amount and only to the
extent of Available Tax increment as hereinafter defined. Payments shall be applied
to unpaid principal.
2.04. Unless otherwise determined by the Authority, Payments on a Loan shall be payable
solely from "Available Tax Increment," which shall mean, on each Payment Date, all of the tax
increment generated in the preceding six (6) months with respect to the property within the TIF
District and remitted to the Authority by Anoka County, all in accordance with Minnesota Statutes,
Sections 469.174 to 469.179. Unless otherwise approved by the Authority, payments on a Loan are
subordinate 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 payable under this TIF Loan are pre-payable 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 this TIF Loan.
2.06. Unless otherwise approved by the Authority, a Loan shall be a limited obhgation
payable solely from Available Tax Increment pledged to the payment hereof under this resolution.
Unless otherwise approved by the Authority: (i) a 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; (ii) neither the State of Minnesota, nor any political subdivision thereof
shall be obligated to pay the principal of this TIF Loan or other costs incident hereto except out of
Available Tax Increment; (iii) neither the full faith and credit nor the taxing power of the State of
Minnesota or any political subdivision thereof shall be pledged to the payment of the principal of
this TIF Loan or other costs incident hereto; and (iv) the Authority shall have no obligation to pay
any principal amount of the TIF Loan, which may remain unpaid after the final Payment Date.
2.07. The Authority may amend the terms of this Policy at any time by resolution of the
Authority's Board of Commissioners, including a det~nination to forgive the outstanding principal
amount and accrued interest to the extent permissible under law.
Section 3. Implementation. Prior to any Loan being made, the Board's staff and consultants
are directed to submit to the Board of the Authority the amount, use, duration, repayment source,
and other relevant tertns of the proposed loan, at which time the Board may either approve, deny, or
modify the proposed terms.
Section 4. Effective Date. This resolution is effective upon the date of its approval.
Adoptedthis J[r~ dayof ~
ATTEST:
,2002.
Robert Ruettimann- Presqc(ent