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HomeMy WebLinkAboutEDA Resolution No. 2021-10COLUMBIA HEIGHTS ECONOMIC DE\'ELOPMENT AUTHORITY RBSOLUTION NO. 2O2I-IO RESOLUTION AUTHORIZING AN INTERFI.IND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE ALATUS TIF DISTRICT BE IT RESOLVED by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: Section 1 Recitals. 1.01. On the date hereof, the Authority approved, contingent upon the approval by the City of Columbia Heights, Minnesota (the "City"), the establishment of the Alatus TIF District (the "TIF District"), a redevelopment district within the Downtown Central Business Redevelopment Project (the "Redevelopment Project"), pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, Miruresota Statutes, Sections 469.090 through 469.1081, as amended, and Minnesota Statutes, Sections 469J74 through 469.1794, as amended (the "TIF Act"), and adopted a modification to the Downtown CBD Revitalization Plan (the "Revitalization Plan") and a Tax Increment Financing Plan for the purpose of financing certain improvements within the Redevelopment Project (the "TIF Plan"). On June 14, 2021, the City Council of the City will conduct a public hearing on the modification to the Revitalization Plan and the TIF Plan. 1.02. The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from legally available funds of the Authority or the City. 1.03. Under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority expects to incur costs related to administrative costs of the TIF District (the "Qualified Costs") using Authority or City funds legally authorized for such purpose, and to reimburse such funds from tax increments from the TIF District when received. 1.05. The Authority intends to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. lnterfund Loan. 2.01. The Authority hereby authorizes the advance of up to $25,000 in legally available Authority or City funds, including but not limited to the Economic Development Fund, to pay the Qualified Costs, together with interest at the rate of 4o/o per annum (the "Interfund Loan"). Interest shall accrue on the principal amount of each advance from the date of such advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270C.40 and Section 549 .09 , both in effect for calendar year 2021 , and will not be adjusted. 2.02. Pincipal and interest (the "Payments") on the Interfund Loan shall be paid semiannually on each August I and February I (each a'oPayment Date"), commencing on the first Payment Date on which the Authority receives Available Tax lncrement (defined below), or on any other dates determined by the Executive Director, through the date of last receipt of tax increment from the TIF District. CL205-78-723374.v1 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as tax increment from the TIF District received by the Authority from Anoka County, Minnesota in the six-month period before any Payment Date. Payments shall be applied first to accrued interest, and then to unpaid principal. Payments on the Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax lncrement, and are on a parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at arry 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 lnterfund Loan. 2.05. This resolution is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax lncrement pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax lncrement. The Authority shall have no obligation to pay any principal amount of the Interfund L,oan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may at any time make a determination to forgive the outstanding principal amount and accrued interest on the lnterfund Loan to the extent permissible under law. 2.07. The Authority may from time to time amend the terms of this resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subdivision 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon the date of its approval Approved this 7ft day of June,2O2l, by the Board of Commissioners of the Columbia Heights Economic Development Authority. mq.-!.;- ,\rn ^, lt- President ) ATTEST: Secretary 2 CL205-78-7233'74.vl