11-1097r HRA RESOLUTION NO. 1097
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH THE LYNDALE GARDENS 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"), intends to
establish the Lyndale Gardens Tax Increment Financing District (the "TIF District") within the
Richfield Redevelopment Project Area (the "Project"), and will adopt 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 Development 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.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 25th day of July, 2011
7 Suzanne M. Sandhal, Chair
A EST:
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Jq'an Helmberger, Secretary i