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HomeMy WebLinkAboutEDA Resolution No. 2023-07COLTJMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COT]NTY STATE OF MINNESOTA RESOLUTION NO.2023-07 AUTHORIZING A}{ INTERFI]ND LOAI\ FOR ADVAI\CE OF FI]NDS FROM TAX TNCREMENT FTNA|ICING UNMRSTTY AVENUE REDEVELOPMENT DTSTRTCT (NO. C8) FOR COSTS IN CONNECTION WITH THE CITY-WIDE SCATTERED SITE IIOUSING TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED By the Board of Commissioners ofthe Columbia Heights Economic Development Authority (the "Authority" or "EDA") as follows: Section l. Backqround. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended, and predecessor statutes (the "TIF Act"), the City of Columbia Heights, Minnesota (the "Crty") and the Housing and Redevelopment Authority in and for the City (the "HRA") previously established Tax Increment Financing University Avenue Redevelopment District (No. C8) ("TIF District C8") within a project area variously called the Downtown CBD Revitalization Project, the Central Business District Redevelopment Project, and the CBD Redevelopment Project (the "Project"). 1.02. By resolution approved January 8, 1996, the City transferred to the EDA the control, authority and operation of all projects then administered by the HRA. 1.03. Pursuant to the TIF Act, the City and the Authority also previously established the City- Wide Scattered Site Housing Tax Increment Financing District ("Scattered Site TIF District") within the Project. 1.04. The Authority expects to incur certain costs related to the Scattered Site TIF District, which costs may be financed on a temporary basis from available Authority funds. 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 intends to acquire and demolish certain property within the Project, including but not limited to property located at 4243 5ft Street NE, Columbia Heights MN 55421, in the City (collectively, the "Property"), and intends to pay all or a portion of the costs of acquiring and demolishing the Property using tax increments from TIF District C8, up to the total balance of tax increments (approximately $385,000) available in the fund or account for TIF District C8 (the "Balance"). 1.05. The Authority has designated the advance of funds for the acquisition and demolition of the Property as an interfund loan (the "Interfund Loan" or "Loan"). Section 2. Authorization of Use of Funds: Further Actions. 2.01. The Authority hereby authorizes use of the Balance from TIF District C8 as one of the legally available funding sources for the lnterfund Loan. Error! Unknown document property name. 2.02. The Authority authorizes the Loan in the amount of $170,000, to be drawn from the account for TIF District C8. Such amount will be made available to the Authority at or before the closing on the acquisition of each Property by the Authority. The outstanding principal balance of the Loan bears interest at the rate of 5.0 percent per annum (which is the greater of the rates specified under Sections 270C.40 or 549.09 in accordance with Minnesota Statutes, Section 469.178, subdivision 7); provided, however, the Executive Director of the EDA is authorized to speciff a lower rate. Interest accrues from the respective dates of each disbursement from the identified account in order to acquire the Property. 2.03. The Loan is payable from tax increments generated from the Scattered Site TIF District (if any), from any other tax increments legally available for such purposes, from proceeds of the sale of the Property (if any), and from any other revenues available to the Authority. Principal and interest ("Payments") shall be made at the times any revenue sources are available to make installment payments. The outstanding balance of principal and interest is due on the date of last receipt of tax increment from the Scattered Site TIF District or from any other tax increment district from which repayment of the Loan is made. Payments will be credited to the account from which the Loan was drawn. All payments shall be applied first to accrued interest, and then to unpaid principal of the Loan. 2.04. The Authority reserves the right to permanently allocate all or any portion of the Balance to the acquisition of the Property and to amend the terms of the Interfund Loan at any time by resolution of the Authority's Board of Commissioners, 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 approval Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6rH day of March,2023. ATTEST:ei,.-S"*"t^ry-7 2 Error! Unknown document property name.