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HomeMy WebLinkAboutEDA RES 2011-16COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION 201.1-16 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE C'ITY-WIDE SCATTERED SITE HOUSING TAX INCREMENT FINANCING DISTRICT. BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia heights Economic Authority (the "EDA") ofthe City Of Columbia Sleights, Minnesota, as follows: WHEREAS, the City Council for the City of Colurnbia I-leights, Minnesota (the "City"), intends to establish the City-Wide Scattered Site FJOUSing'Fax Increment Financing District (the "TIF District") within the Central Business District Redevelopment Project (the "Project"), and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of" financing certain improvements within tile Project. WfIEREAS, the EDA has determined to pay for certain costs identified in the TIF Plan consisting ofland/building acquisition, site iuiii)i,oN e iieiits/pi-epai-atioii, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from EDA funds available for such purposes, WHEREAS, Linder Minnesota Statutes. Section 469.178, Subd. 7, the FDA is authorized to advance or loan money From the EDA's general find or any other fundfi-orn which such advances may be legally authorized, in order to finance the Qualified Costs. WIIEREAS, the EDA intends to reirriblit-Se itself for the Qualified Costs from tax increnients derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Inferfund Loan"). NOW TFIEREFORE BE ITRESOLVED by the Board as follows: The EDA hereby authorizes the advance of Lip to $1,573,000 from any available EDA Funds, to pay for Qualified Costs. The term "Qualified Costs" inClUde, sale of Parcels previously acquired by the FDA, which sale is made for a reduced price necessary to induce development of affordable housing, ]'lie difference between sale proceeds and the FDA's costs in acquiring the parcel and preparing it for development represents an advance of Qualified Cost on the date of each such closing. The FDA shall reimburse itself for such advances together with interest at the rate stated below, all as described in this Resolution. Interest accrues on the principal amount of Qualified Cost from the date of each advance, at the rate of 4% (vdiich rate is within the maximum rate of interest permitted to be charged as of the date of this Resolution). 1 Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August. I and February I (each a "Payment Date"), commencing on the first Payment Date on which the FDA has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the EDA, through the date of last receipt of tax increment from the T[F District, 3. Payments on this Interfund 1.,oan are payable solely from "AvailableTax Increment," which shall mean, on each Payment Date, tax increment generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Anoka County, all in. accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as arnended. Payments on this Interfund Loan may be subordinated to or on parity with any outstanding or future bonds, notes or contracts secured it) whole or in part with Available Tax Increment, as determined by the Executive Director. 4. The principal sum and all accrued interest payable under this Interfitind Loan are pre-payable in whole or in part at any time by the EDA without preniiUnI 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. 5. "I'his Interlund Loan is evidence of an internal borrowing by the EDA in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely fi-om Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to COIIStitUtC a genera] obligation of the State of Minnesota. or any political subdivision thereof, including, without limitation, the EDA. 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 Interfund Loan or other costs incident hereto. The EDA shall have no obligation to pay any principal aniount of die Interfund Loan 0r,aCCrLIcd interest thereon, which may remain unpaid after the final payment Date. 6 The EDA may amend the terms of this ftiterffind Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal 31110LInt and accrued interest to the extent permissible Under law. Passed this 10"' Day of October, 2011. ATTE ST: Executive Dirdc tor, -Walfer Fellst