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HomeMy WebLinkAboutEDA RES 2016-31COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ANOKA COUNTY STATE OF MINNESOTA 11JILIT61110111 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE CENTRAL VALU CENTER. TAX INCREMENT FINANCING DISTRICT. BE IT RE, SOLVED by the Board of Commissioners (the "Bo�ard") of the Columbia Heights Economic Development Authority (the "Authority"), as follows: Section 1. Background. 1.01. The Authority has on this date approved the establishment of the Central Valu Center Tax Increment Financing District (the "TIF District") within the Downtown Central Business Redevelopment Project (the "Project") for the purpose of financing certain improvements within the Project, subject to approval of the TIF District and adoption of a] I ax Increment Financing Plan (the "TEF- Plan") by the City of Columbia []eights ('the "City"), all pursuant to Minnesota Statutes, Sections 469.174 to 469, 1794, as amended (the "TIF Act"). 1,01 The Authority has determined that it may be necessary to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements/preparation, public utilities, other qualifying improvements, interest and administrative costs (collectively, the'" !ualified Costs"), which costs may be financed on a temporary basis from City or Authority funds legally available for such purposes. 1.03. Under Section 469, 178, Subd, 7 of the 'I'IFAct, the City is authorized to advance or loan money from the City's general fund or any other City fund from which such advances may be legally authorized, and the Authority is authorized to advance or loan money from any fund administered by the Authority from which Such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The Authority intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.O1. The Authority hereby authorizes the advance of up to $25,000, or so much thereof as may be paid as Qualified Costs, from the City"s Redevelopment Fund or any other fund authorized by the City. The Authority shall reimburse itself for such advances, together with interest at the rate stated below, from tax increments derived from the TIF District, Interest will accrue on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 2700A0 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 2700.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.01 Payments of 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 Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director, through the date of last receipt of tax increment from the TIP` District. 103. Payments on this Interfund Loan will be made solely from the tax increment from the TIF District received by the Authority from Anoka County in the 6-month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledged to the payment of any obligation (the "Available Tax Increment"). Payments on this Interfund Loan may be subordinated 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 pail with Available Tax Increment. 2.04. Outstanding principal and all accrued interest payable under this Interfund 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 Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469,178, Subd. 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deerned 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 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 Authority shall have no obligation to pay any principal amount of the Interfund Loan, or accrued interest thereon, which may remain unpaid after the final Payment Date, 2.06. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date, This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: October 24, 2016 ATTEST-. president Secretary (Sea])