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