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HomeMy WebLinkAboutEDA RES 2003-04RESOLUTION 2003-04 RESOLUTION RAT~YING AND SPEC~YING TERMS OF ~ INTER-FUND LOANS FOR THE SCATTERED SITE T~ DISTRICT RECITALS A. The City of Columbia Heights. ("City") and its Economic Development Authority ("Authority") have undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection the Authority administers the Redevelopment Project No. 1 pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.090 to 469.1081 (the "Act"). B. Pursuant to the Act, the Authority is authorized to undertake certain activities to prepare such real property for development and redevelopment by private enterprise. C. Within the Project the Authority and City have established the Scattered Site Redevelopment Tax Increment Financing District (P3, P4) (the "TIF District"). D. In order to provide funds for land acquisition and demolition in the TIF District, the Authority made an interfund loan fi.om certain EDA funds the amount of $76,105.20 (the "TIF Loan"), disbursed during 1998 and 2000. E. The Authority has determined a need to ratify the establishment of the TIF Loan as permitted under Minnesota Laws, 2001 First Special Session, Ch.5, Article 15, section 3 (the "Act") and to document the repayment schedule, interest rate, and payment terms for the remaining balance of that loan. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority as follows: 1. The TIF Loan in the principal amount of $76,105.20 bears interest at the rate of 5.0 percent per annum, subject to adjustment as provided below. Interest accrues fi.om the date of this resolution until the principal and interest are paid in full. The interest rate payable in any year will not exceed the greater of(a) the rate specified under Minnesota Statutes, Section 270.75, or Co) the rate specified under Minnesota Statutes, Section 549.09. The interest rate for each calendar year during the term of the TIF Loan will be determined as of each January 1, using either the stated rate of 5.0 percent, or, if that rate exceeds the statutory maximum, the maximum rate under clauses (a) or (b) in effect as of that date. 2. Principal and interest ("Payments") shall be paid semi-annually on August 1, 2003 and each August 1 and February 1 thereafter to and including the earlier of (a) the date the principal and accrued interest of the TIE Loan is paid in full, or (b) the date of last receipt of tax increment fi.om the TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of Available Tax Increment as hereinafter defined. Payments shall be applied first to accrued interest, and then to unpaid principal. SJB-226976vl CL205-18 3. Payments on this Tn; Loan are 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. Payments on this TIF 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 4. The principal sum and all accrued interest payable under this Tn; 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. 5. Tiffs Tn; Loan is evidence of an internal borrowing by the Authority in accordance with the Act and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This TIF 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 Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Tn; 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 TIF Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Tn; Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 6. The Authority may amend the terms of this T1F Loan at any time by resolution of the Authority's Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. 7. The Board ratifies all actions of its staff and consultants in making the Tn; Loan, and authorizes and directs staff to take all actions necessary to repay the outstanding balance of the Tn; Loan in accordance with this resolution. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this / ~" day of March, 2003. Don lt~urz, yn Jr., .Pr~'s~ent. ! Walt-e~-l~. F~hst, Ex6cutive Director ATTEST: Cher3~ Bakken,'Community D~velopment Secrd'ary SJB-226968vl 2 CL205-18