13-1169r RESOLUTION NO. 1169
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH THE CEDAR AVENUE TAX
INCREMENT FINANCING DISTRICT
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Richfield Housing
and Redevelopment Authority (the "HRA") of the City of Richfield, Minnesota, as follows:
WHEREAS,the City Council for the City of Richfield,Minnesota(the "City"),established the
Cedar Avenue Tax Increment Financing District(the "TIF District")within the Richfield Redevelopment
Project Area(the "Project"), and adopted a Tax Increment Financing Plan(the "TIF Plan")for the purpose of
financing certain improvements within the Project.
WHEREAS,the HRA has determined to pay for certain costs identified in the TIF Plan consisting
of land/building acquisition, site improvements/preparation,public parking facilities, interest and
administrative costs(collectively,the "Qualified Costs"),which costs may be financed on a temporary basis
from HRA funds available for such purposes.
WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is authorized to
advance or loan money from the HRA's general fund or any other fund from which such advances
may be legally authorized, in order to finance the Qualified Costs.
WHEREAS, the HRA intends to reimburse itself for the Qualified Costs from tax increments
derived from the TIF District in accordance with the terms of this resolution (which terms are
referred to collectively as the "Interfund Loan").
NOW THEREFORE BE IT RESOLVED, by the Board as follows:
1. The HRA hereby authorizes the advance of up to $200,000 from the General Fund or so
much thereof as may be paid as Qualified Costs. The HRA shall reimburse itself for such
advances together with interest at the rate stated below. Interest accrues on the principal
amount from the date of each advance. The maximum rate of interest permitted to be
charged is limited to the greater of the rates specified under Minnesota Statutes, Section
270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the
written agreement states that the maximum interest rate will fluctuate as the interest rates
specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to
time adjusted. The interest rate shall be 4% and will not fluctuate.
2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on
each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment
Date on which the HRA has Available Tax Increment (defined below), or on any other dates
determined by the Community Development Director, through the date of last receipt of tax
increment from the TIF District.
3. Payments on this Interfund Loan are payable solely from "Available Tax Increment,"which
shall mean, on each Payment Date, tax increment available as determined by the
Community Development Director, generated in the preceding six (6) months with respect
to the property within the TIF District and remitted to the City by Hennepin County, all in
accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as
amended. Payments on this Interfund Loan may be subordinated to any outstanding or
future bonds, notes or contracts secured in whole or in part with Available Tax Increment,
and are on parity with any other outstanding or future interfund loans secured in whole or in
part with Available Tax Increment.
4. The principal sum and all accrued interest payable under this Interfund Loan are pre-
payable in whole or in part at any time by the HRA without premium or penalty. No partial
prepayment shall affect the amount or timing of any other regular payment otherwise
required to be made under this Interfund Loan.
5. This Interfund Loan is evidence of an internal borrowing by the HRA in accordance with
Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution. This
Interfund Loan and the interest hereon shall not be deemed to constitute a general
obligation of the State of Minnesota or any political subdivision thereof, including, without
limitation, the HRA. Neither the State of Minnesota, nor any political subdivision thereof
shall be obligated to pay the principal of or interest on this Interfund Loan or other costs
incident hereto except out of Available Tax Increment, and neither the full faith and credit
nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged
to the payment of the principal of or interest on this Interfund Loan or other costs incident
hereto. The HRA shall have no obligation to pay any principal amount of the Interfund Loan
or accrued interest thereon, which may remain unpaid after the final Payment Date.
6. The HRA may amend the terms of this Interfund Loan at any time by resolution of the
Board, including a determination to forgive the outstanding principal amount and accrued
interest to the extent permissible under law.
Approved by the Housing and Redevelopment Authority in and for the City of Richfield this
16th day of December 2013.
A/44,141,
/uzanne M. Sandahl, Chair
ATTEST:
Pre
Dori• Rubenstein, .ecretary
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