03-896r
70
HRA RESOLUTION NO. 896
AUTHORIZING INTERNAL LOAN FOR
ADVANCE OF PUBLIC REDEVELOPMENT COSTS IN CONNECTION WITH
L YNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF RICHFIELD, MINNESOTA (the "Authority") AS FOLLOWS:
Section 1. Backqround.
1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF
Act") the Authority previously established the Lyndale Gateway West Tax Increment
Financing District (the "TIF District") within the Richfield Redevelopment Project Area (the
"Project Area").
1.02. The Authority may incur certain costs related to the TIF District, which costs
may be financed on a temporary basis from available funds in the account for other tax
increment financing districts administered by the Authority, or from other Authority funds
available for such purposes.
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 has approved and the parties have executed a Contract for
Private Redevelopment (the "Contract") and a Supplemental Agreement to Contract for
Private Redevelopment (the "Supplement") between the Authority and Lyndale Gateway
LLC, ("Redeveloper") (collectively the "Agreements") under which the Authority will
provide the Redeveloper proceeds from an interfund loan fund to finance certain Public
Redevelopment Costs as defined in the Contract.
1.05. Under the Agreements, the Authority will disburse Public Redevelopment
Costs in the amount of up to $7,710,000, subject to the terms and conditions of the
Agreements. Of that amount, $1,100,000 will be financed on a temporary basis and
subject to reimbursement as set out in this resolution.
1.06. The Authority intends that $1,100,000 of the Public Redevelopment Costs will
be financed on a temporary basis as an interfund loan (the "Loan") and be repaid in
accordance with the terms of this resolution.
Section 2. Repayment of Public Redevelopment Costs.
2.01. The Authority will reimburse itself for the Loan in the principal amount of
$1,100,000 together with interest at the rate. of 5.0% per annum accruing from the date of
closing the Contract (hereafter, the "Closing Date"). The interest rate is no more than the
greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section
549.09, both in effect for calendar year 2003.
2.02. Principal and interest ("Payments") on the Loan shall be paid semi-annually
on the dates (each a "Payment Date"), and in the amounts specified in Exhibit A hereto.
2.03. Payments on the Loan will be made from Available Tax Increment as
defined in the Agreements after first deducting from tax increment receipts in amounts
necessary to pay principal and interest on the Bonds; and from amounts received from the
Developer under Section 7 of the Supplement. Payments shall be applied first to accrued
interest, and then to unpaid principal. Interest accruing from the Closing Date will be
compounded semiannually on February 1 and August 1 of each year and added to
principal, unless otherwise specified by the Executive Director.
2.04. The principal sum and all accrued interest payable under this resolution is
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 Exhibit A.
2.05. The Public Redevelopment Costs are 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 tax increment and other funds pledged to the
payment hereof under this resolution. The 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 of Richfield. Neither the State of Minnesota,
nor any political subdivision thereof shall be obligated to pay the principal of or interest on
the Public Redevelopment Costs or other costs incident hereto except from the sources
described in this resolution.
2.06. The City Chief Financial Officer is authorized and directed to determine
the fund(s) or account(s) from which monies are drawn for the interfund loan, and to
credit repayments under this to the relevant fund(s) or account(s).
2.07. Authority staff and officials are authorized and directed to execute any
collateral documents and take any other actions necessary to carry out the intent of this
resolution.
2.08. The Authority may at any time determine to forgive the outstanding principal
amount and accrued interest on the Public Redevelopment Costs to the extent permissible
under law.
2.09. 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. subd. 7 of the TIF Act.
Section 3. Effective Date. This resolution is effective upon approval, provided,
however, that the interfund loan will not be made until all of the preconditions of the
Supplement have been satisfied or waived by the Authority.
Approved by the Housing and Redevelopmen
Richfield, Minnesota this 19th day of May 2003.
05/1412003
EXHIBIT A
Inter Fund Loan Payment Schedule
Page 1 of 1
INTERFUND INTERFUND, INTERFUND INTERFUND
LOAN LOAN LOAN LOAN PAYMENT DATE
Beginning Period $600.000 5500,000 5500,000 TOTAL Ending Period
Principal and Interes Principal Only Interest Only rincipal and Interest
Yrs. Mth. Yr. 5.00% 500,000 5.00% Yrs. Mth. Yr.
0.0 02-01 2002 0.5 08-01 2002
0.5 08-01 2002 1.0 02-01 2003
1.0 02-01 2003 0.00 0.00 0.00 0.00 1.5 08-01 2003
1.5 08-01 2003 0.00 0.00 0.00 0.00 2.0 02.01 2004
2.0 02-01 2004 0.00 0.00 0.00 0.00 2.5 08-01 2004
2.5 08-01 2004 0.00 0.00 0.00 0.00 3.0 02-01 2005
3.0 02-01 2005 0.00 0.00 0.00 0.00 3.5 08-01 2005
3.5 08-01 2005 0.00 0.00 0.00 0.00 4.0 02-01 2006
4.0 02-01 2006 0.00 0.00 0.00 0.00 4.5 08-01 2006
4.5 08-01 2006 0.00 0.00 0.00 0.00 5.0 02-01 2007
5.0 02-01 2007 0.00 0.00 0.00 0.00 5.5 08-01 2007
5.5 08-01 2007 0.00 0.00 0.00 0.00 6.0 02-01 2008
6.0 02-01 2008 (27,500.00) 0.00 0.00 (27,500.00) 6.5 08-01 2008
6.5 08-01 2008 0.00 0.00 0.00 0.00 7.0 02-01 2009
7.0 02-01 2009 (27.500.00) 0.00 0.00 (27,500.00) 7.5 08-01 2009
7.5 08-01 2009 0.00 0.00 0.00 0.00 8.0 02-01 2010
8.0 02-01 2010 (33.000.00) 0.00 0.00 (33,000.00) 8.5 08.01 2010
8.5 08-01 2010 0.00 0.00 0.00 0.00 9.0 02-01 2011
9.0 02-01 2011 (39.300.00) 0.00 0.00 (39.300.00) 9.5 08-01 2011
9.5 08-01 2011 0,00 0.00 0.00 0.00 10.0 02-01 2012
10.0 02-01 2012 (38.300.00) 0.00 0.00 (38.300.00) 10.5 08-01 2012
10.5 08-01 2012 0.00 (500,000.00) 0.00 (500.000.00) 11.0 02-01 2013
11.0 02-01 2013 (40.700.00) 0.00 0.00 (40,700.00) 11.5 08-01 2013
11.5 08-01 2013 0.00 0.00 0.00 0.00 12.0 02.01 2014
12.0 02-01 2014 (40.000.00) 0.00 0.00 (40.000.00) 12.5 08-01 2014
12.5 08-01 2014 0.00 0.00 0.00 0.00 13.0 02-01 2015
13.0 02-01 2015 (43.000.00) 0.00 0.00 (43.000.00) 13.5 08-01 2015
13.5 08-01 2015 0.00 0.00 0.00 0.00 14.0 02-01 2016
14.0 02-01 2016 (46.000.00) 0.00 0.00 (46.000.00) 14.5 08-01 2016
14.5 08-01 2016 0.00 0.00 0.00 0.00 15.0 02-01 2017
15.0 02-01 2017 (52.000.00) 0.00 0.00 (52.000.00) 15.5 08-01 2017
15.5 08-01 2017 0.00 0.00 0.00 0.00 16.0 02-01 2018
16.0 02-01 2018 (52.000.00) 0.00 0.00 (52.000.00) 16.5 08-01 2018
16.5 08-01 2018 0.00 0.00 0.00 0.00 17.0 02-01 2019
17.0 02-01 2019 (58.000.00) 0.00 0.00 (58.000.00) 17.5 08-01 2019
17.5 08-01 2019 0.00 0.00 .9.00 0.00 18.0 02-01 2020
18.0 02-01 2020 (66.000.00) 0.00 0.00 (66.000.00) 18.5 08-01 2020
18.5 08-01 2020 0.00 0.00 0.00 0.00 19.0 02-01 2021
19.0 02-01 2021 (69.000.00) 0.00 0.00 (69.000.00) 19.5 08-01 2021
19.5 08-01 2021 0.00 0.00 0.00 0.00 20.0 02-01 2022
20.0 02-01 2022 (73.000.00) 0.00 0.00 (73.000.00) 20.5 08-01 2022
20.5 08-01 2022 0.00 0.00 0.00 0.00 21.0 02-01 2023
21.0 02-01 2023 (74,500.00) 0.00 0.00 (74.500.00) 21.5 08-01 2023
21.5 08-01 2023 0.00 0.00 0.00 0.00 22.0 02-01 2024
22.0 02-01 2024 (77.400.00) 0.00 0.00 (77.400.00) 22.5 08-01 2024
22.5 08-01 2024 0.00 0.00 0.00 0.00 23.0 02-01 2025
23.0 02-01 2025 (204.000.00) 0.00 0.00 (204.000.00) 23.5 08-01 2025
23.5 08-01 2025 (200.000.00) 0.00 0.00 (200,000.00) 24.0 02-01 2026
24.0 02-01 2026 (156.293.00) 0.00 (10,000.00) (166,293.00) 24.5 08-01 2026
24.5 08-01 2026 0.00 0.00 (167.000.00) (167.000.00) 25.0 02-01 2027
25,0 02-01 2027 0.00 0.00 (73,000.00) (73,000.00) 25.5 08-01 2027
25.5 08-01 2027 0.00 0.00 0.00 0.00 26.0 02-01 2028
26.0 02-01 2028 0.00 0.00 0.00 0.00 26.5 08-01 2028
26.5 08-01 2028 0.00 0.00 0.00 0.00 27.0 02-01 2029
27.0 02-01 2029 0.00 0.00 0.00 0.00 27.5 08-01 2029
27.5 08-01 2029 0.00 0.00 0.00 0.00 28.0 02-01 2030
(1,417,493.00) (500.000.00) (250.000.0m (2,167,493.00)
(600.000.17)
(500.000.00)
(1.100.000.17)
Prepared by Ehlers Inc. - Please review all assumptions.
INTerfund loan payment.xls