The URL can be used to link to this page

HRA RES 2003-04 - 00013865RESOLUTION III2A 4 - 2003 � A RESOLUTION APPROVIlVG AND RATIFYING THE TE12MS OF $125,000 INTERNAL LOAN IN CONNECTION WITH TIF DISTRICT #15 (MN COMMRAIL) BE IT RESOLVED by the Board of Comtntssioners (tl�e "Commissioners") of the Housmg uid Redevelopment Authonty m and for the Cdy of Fridley, Mmi�esota (the "Autlior�ty"), as follows Section 1 BackQround 1 O1 Tlie Authority has herelofore approved the establ�shment of Tax Increment Financmg District No #15 (tlie "TIF DistncC') wrthm Redevelopment Pro�ect No 1(tl7e "Pro�ecP'), and has adopted a tax mcremeiit finai�cmg plan for the purpose of financuig certam unprovements wrthm tl�e Pro�ect 1 02 The Autliority detenmued to pay for certam costs idenrified m Uie TIF Plan consisimg of land acquisrtion, srte unpiovements, srte preparations, admnustrat�on, and properry taYes (collect�vely, the "Quahfied Cosis"), which costs were financed on a temporary bas�s from the Authonty's general fund 1 OS Li 1996, tlie Office of flie State Auditar (the "OSA") determmed Yhat a Tax Inciement Fund could ❑ot carry a negative fuiid balance 1 OA The Authority detennmed that the TIF Distnct had a negat�ve fund balance and transferred $125,000 from tlie Authority's general fimd m au attempf to comply with the requirements of the OSA at the trme � 1 OS It was the Autl�onty's tntent to repay the general fimd as i��crement became available 1 06 Undee Mmnesota Statutes, Secrion 469 178, Subdtvision 7, the AuthonTy �s authorized to advance or loan money from the Autlioiity's general fund or any otliei fund from which such advances may be legally made m oider to finance tl7e Quahfied Costs and Yo iatify any such advances or loans made pnor to August 1, 20D] 1 07 Tl�e Authonty mtends to reunburse rtself for the Qualified Costs from tax uiciemcnts derived from the TIF District m accordance wdh the ternis of fliis resolulion (wh�ch terms a�e referred to collectively as the "TIF Loan') Sechon 2 Terms of TIF Loan 201 The Authonty shall repay to the Authority's genera] fiind from whicl� fhe Qualified Costs are m�t�ally paid, the pnncipal amount of $]25,000 LogeYher witfi mterest on the prmcipal amount expeiided acerumg fiom the date of each mitial eapendifire, at the greatest of (a) the rate spemfied under Minnesota S1at�iYes, Section 270 75, or (c) ihe rate specified under Mmnesota Statutes, Section 549 09 The mterest rate for each calendar year durmg tlie term of the TIF Loan wdl be deteiYnmed as of eacl� January 1, usmg lhe maximum rate unde� clauses (a) or (b) m effect as of tliat date ' HRA Resolution No 4-2003 Page 2 , 2 02 Prmcipal and mterest ("Payments'�) shall be paid semi-annually on AugusY 1, 2000, and eacli August 1 aud February 1 tl�ereafter 2o and mcludmg tbe ea� lie� of (a) the daie the pimcipal aiid accrued mterest of YUe TIP Loan is paid m full, or (b) YUe date of last receipt of tax mcrement from the TIF Dislrtct ("Payment Dates") which Paymei�ts wdl be made m the amount and only to Lhe extent of Avadable Tax Increment as heremafter defined Payments sl�all be applted fiist to accrued mterest, and then to unpaid pnncipal Interest acerwng from Uie date of eacl� expenditure to the first Payment Date shall be compounded semiannually oi� February 1 and August 1 of eacli year and added to prmcipaf 203 Payments on this TIF Loan are payable solely from `Available Tazc IneremenY', which s6all mean, on each Payinent Date, all of the tax merement generated m 1he precedmg six (6) months w�th respect to tl�e proper[y withm tlie TIF District (or name other districts) and remdLed to Lhe AuYhonty by Anoka CounTy, all m accordance wrth Mmnesota Statutes, Sections 469 ]74 to 469179 Payments on this TIF Loan a�c subordmate to any outstandmg or fuhire bonds, noles, or contracts secured m whofe or m part wrth Availabfe Tax Increment, aud are on parity w�th any oYher outstandmg or futuie mteifund loaus socured m whole or m part w�th Available Tax Increment 2 04 The prmcipal sum and all accrued mterest payable under this TIP Loan a�e pie-payable m��hole or m pari at any time by the Author�ty withouY premtum or penalty No partial pre-payment shall affect t]�e an�ount or timmg of any other regular payment otherwise reqwred to be made under th�s T[F Loan 2 OS This TIF Loan is evtdence of ao mternal borrowmg by tlie Authordy m accordance with Mmnesota StatuYes, SecYton 469 178, Subdrvtstoii 7, and is a limiied obligation payable solely from Avaifable Tax IncremenY pledged to the paymeiit hereof under th�s resolution This TIF Loan and tlie mterest hcreon shalf � not be deemed to coiistrtute a general obhgahon of the State of Mmnesota or any pol�tica] su6divis�on the�eof, mcludmg, wrthout hmitation, the Aull�onty Nerther the State of Mmnesota, nor any pohrical su6div�sion thereof shall be obhgated Yo pay the prmcipal of o� mtetest on th�s TIF Loan or other costs mcident hereYO excepY out of Avadable Taa I�icrement, and nerther the full farth and cred�t nor O�e taxm� power of Yhe State of Mmnesota or any pol�tical subdrvision thereof is pledged to tl�e payment of the prmrnpal ot or mterest on flns T[F Loan or other costs mmdent hereLO The Authonty shall have no obhgahon to pay any prmcipal amount of the TIF Loan or acc�ued mlerest Ulereon, wh�cl� may ren�am unpaid after the final Payment Date 2 06 The AuYhority may amend tlie tenns of th�s TIF Loan at any time by resolution of the Authority's Board of Commissioners. mcludmg a determmation to forgtve the outstandmg prmcipal amount and accrued mterestto the extent permissible under law Sechon 3 RatiPicaYio❑ 3 01 The Board raTifies all actwns of rts staff and consultants m makmg the TIF Loan and m makmg all the pnor repayinents Staff is aulhonzed and duected to attach to lhts resolut�on schedules mdicatmg the paymei7ts applied to the TIF Loan and the outstuidmg prmcipal amouut of the TIF Loan as of ihe date of approval oftl�is resolution 3 02 The Board authorizes aud directs staff to take all actions necessary to repay the outstaudm, balance ofthe TiF Loan m accordance wrth this resoluhon ' HRA Resolution No 4-2003 Page 3 � Section 4 Effective Date Thts resolution is effectrve upon date of its approval PASSED AND ADOPT�D BY THE HOUSING AND REDEVELOPMENT AUTHORl 1N AND FOR THE CITY OF PRIDLEY, NIINNESOTA, THIS 2ND DAY O CT � ER, 20 �� / I/L(�`'��N.c.� � ✓�'1'vVr'-`�' vLAWRENCE R COMMERS, CHAIRP�RSON ATTEST i ,� r � , � ;�G2��<�r4.,� � � � �� WILLIAM W BURNS, EXECUTIVE DIl2ECTOR � �