13-10771r RESOLUTION NO. 10771
CITY OF RICHFIELD
RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS
IN CONNECTION WITH PROPERTY LOCATED WITHIN CEDAR AVENUE TAX
INCREMENT FINANCING DISTRICT
BE IT RESOLVED By the City Council of the City of Richfield,Minnesota(the"City")as follows:
Section 1. Background.
1.01. The City has ordered the Richfield Parkway Phase II Project (Improvement Project
No. CP-41007 (North Richfield Parkway)), which includes reconstruction and widening of Richfield
Parkway from 66th Street to Bloomington Avenue(the"Richfield Parkway Project").
1.02. Due to the significant amount of right-of-way that is needed for the Richfield Parkway
Project, the City has determined it necessary to acquire all or a portion of 14 properties located on 17th
Avenue (the "Assembled Properties"), because once the right-of-way is provided to the City, the
remainder of the lots will not be usable for residential purposes.
1.03. The Housing and Redevelopment Authority in and for the City of Richfield (the
"Authority") previously purchased two parcels (the "HRA Parcels") of the Assembled Properties needed
for the Richfield Parkway Project and proposes to convey to the City the easements necessary for the
construction of the Richfield Parkway Project over those parcels.
1.04. The City intends to purchase the remaining 12 parcels (the "City Parcels") of the
Assembled Properties needed for the Richfield Parkway Project.
1.05. Following the completion of the Richfield Parkway Project, the City intends to levy
special assessments against the Assembled Properties and convey to the Authority the City Parcels,
reserving to the City an easement for the Richfield Parkway Project.
1.06. Pursuant to a Cooperative Agreement to be entered into by the Authority and the City
(the "Cooperative Agreement"), it is proposed that the Authority take ownership and responsibility for
Assembled Properties and the Authority shall pay the special assessments levied against the Assembled
Properties, which are estimated to be in the amount of$780,000.
1.07. In order to lessen the economic burden on the Authority, the City has proposed to loan
funds to the Authority (the "Interfund Loan") from its Permanent Improvement Revolving Fund in order
to prepay the special assessments levied against the Assembled Properties.
1.08. The Assembled Properties are located within the Cedar Avenue Tax Increment Financing
District (a redevelopment district) (the "TIF District") within the Richfield Redevelopment Project Area
(the "Redevelopment Project"), both established by the Authority pursuant to Minnesota Statutes,
Sections 469.174 to 469.179, as amended (the "TIF Act"), Sections 469.001 to 469.047, as amended(the
"HRA Act"),and Laws of Minnesota 2005, Chapter 152,Article 2, Section 25 (the "Special Law").
1.09. Under Section 469.178, subdivision 7 of the TIF Act,the City 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.
1.10. Pursuant to the Cooperative Agreement,the Authority will pledge the following revenues
to the repayment of the principal of and interest on the Interfund Loan in the following order of priority:
(i) all proceeds of the sale of all or any portion of the City Parcels; (ii) tax increment revenues derived
from the TIF District and legally available to pay the principal of and interest on the Interfund Loan; and
(iii) any other funds of the Authority that are legally available to pay the principal of and interest on the
Interfund Loan.
1.11. On February 19, 2013, the Authority approved a resolution (the "Loan Resolution")
requesting that the City advance the Interfund Loan to the Authority.
Section 2. Interfund Loans Authorized.
2.01. The City approves the Interfund Loan described in the Loan Resolution and authorizes
use of funds in the Permanent Improvement Revolving Fund available for such purposes under law as the
source of the funds for the Interfund Loan.
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 intent of this resolution.
Adopted by the City Council of the City of Richfield this 26th day of February,2013.
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De 6 bie Goettel,Mayor
ATTEST:
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Nancy Gibbs, C' Clerk