03-9373r
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RESOLUTION NO. 9373
RESOLUTION APPROVING INTERNAL LOANS FOR
ADVANCE OF PUBLIC REDEVELOPMENT COSTS IN CONNECTION WITH
L YNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED by the City Council of the City Richfield, Minnesota ("City") as
follows:
Section 1. Backoround.
1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF
Act") the Housing and Redevelopment Authority in and for the City of Richfield ("HRA")
previously established the Lyndale Gateway West Tax Increment Financing District (the
"TIF District") within the Richfield Redevelopment Project Area (the II Project Areall).
1.02. The HRA 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 HRA, or from other HRA funds
available for such purposes.
1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the HRA 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 HRA has approved an Amended and Restated Contract for Private
Redevelopment (the "Contract") between the HRA and Lyndale Gateway LLC,
("Redeveloper") under which, among other things, the HRA will provide the Redeveloper
proceeds from general obligation tax increment bonds to be issued by the City and an
interfund loan fund to finance certain Public Development Costs as defined in the
Contract.
1.05. By resolution approved May 19, 2003, the HRA established an interfund
loan in the amount of $1,100,000 (the $1,100,000 Loan") to finance certain Public
Redevelopment Costs (as defined in the Contract) on a temporary basis.
1.06. The City intends to issue its $4,965,000 Taxable General Obligation
Temporary Tax Increment Bonds, Series 2003A (the "Short Term Bonds") to provide
financing for part of the Public Redevelopment Costs. A portion of the Short Term
Bonds will be paid with proceeds of long-term general obligation tax increment bonds
(the "Long Term Bonds") to be issued at or before maturity of the Short Term Bonds.
1.07. The HRA has determined a need to provide additional temporary financing
for Public Redevelopment Costs through an additional interfund loan in the amount of
$855,000 (the "$855,000 Loan") to be repaid in accordance with the terms of a
resolution approved by the HRA on August 18, 2003.
Section 2. Internal Loans Approved.
2.01. The City ratifies and approves the $1,100,000 Loan and the $855,000
Loan, as described in the respective resolutions of the HRA authorizing such loans.
2.02. City staff and officials are authorized and directed to execute any collateral
documents and take any other actions necessary to carry out the internal loans
described in this resolution.
Adopted by the City Council of the City of Richfield, Minnesota this 19th day of August,
2003.
ATTEST:
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