Loading...
HomeMy WebLinkAboutEDA RES 2017-21COLUMBIA HEIGHT'S ECONOMIC DEVELOPMENTALITHORITY ANOKA COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-21 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE 47"' AND GRAND -TAX INCREMENT FINANCING DISTRICT. 131", IT RI 'SOLVED by the Board of Cojiu-nissioners (the "'Board") of the Columbia Heights Economic Development Authority (the "Authority"), as follows: Section 1, B-q( �kgij i QpL& — 1.01. The City and Authority have heretofore approved the establishment of the 47"' and Grand Tax Increment Financing District (the "TIF District") within the Downtown Central Business Redevelopment Project (the "Project"), and have adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469,174 to 469.1794, as amended (the "Act"). The Authority administers the TIF District. 1.02, The Authority lias determined to pay for certain costs identified in the TIF Plan consisting of' land/building acquisition, site iniprovernents/preparation, public utilities, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis frorn City or Authority funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469, 178, Subd. 7, the Authority is authorized to advance or loan nioney from the City's general fund or any other fund 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 arc referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $25,000 from the Economic Development fund or so much thereof as may be paid as Qualified Costs. The Authority shall reimburse itself for such advances, together with interest at the rate stated below, from Available Tax Increment (as defined in Section 2,173). Interest accrues on the principal amount from the date of each advance. The maximum rate of interest pennitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270CA0 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. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August I and February 1 (each a "Payment Date")�, commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on ally other dates determined by the Executive Director, through the date of last receipt of tax increment from the Tl F District. 2.03. Payments on this Interfund Loan are payable solely from "Available 'Tax Increment," which shall mean, oil each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director, generated in the preceding six (6) months witIl respect to the property within the TIF District and remitted to the Authority by Anoka County all in accordance with the Act. 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. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in pail at any time by the Authority without premium or penalty. No partial prepayment shall affect the arnount or timing of any other regular payment otherwise required to be made under this Interfund Loan, 105. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469,178, Subd. 7 of the Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution, ']'his Interfund 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 City or 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 detern-lination 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. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority On July 10, 2017. Executive Director ATTEST: Secretary