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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