HomeMy WebLinkAboutResolution - HRA 2019-03 - Authorizing Interfund Loan for Trail Pointe Ridge TIF District - 04/02/2019HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, STATE OF MINNESOTA
H.R.A. RESOLUTION NO. 2019-03
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE
OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT
FINANCING DISTRICT NO. 23: TRAIL POINTE RIDGE
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Housing and
Redevelopment Authority in and for the City of Eden Prairie (the "HRA") as follows:
Section 1. Background.
1.01. The HRA has heretofore approved the establishment of Tax Increment Financing
District No. 23: Trail Pointe Ridge (the "TIF District") within Redevelopment Project Area No. 5
(the "Project") and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose
of financing certain improvements within the Project.
1.02. The HRA is authorized to use tax increment to pay for certain costs identified in the
TIF Plan consisting ofland/building acquisition, site improvements/preparation/demolition, public
utilities, streets and sidewalks, other qualified improvements, interest and administrative costs
(collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from HRA
funds available for such purposes.
1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is authorized to
advance or loan money from any fund from which such advances may be legally authorized, in
order to finance the Qualified Costs.
1.04. 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").
Section 2. Terms of Interfund Loan.
2.01. The HRA hereby authorizes the advance of up to $30,000 from the HRA 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 5% and will not
fluctuate.
2.02. 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 Authority has Available Tax Increment (defined below), or on any
other dates determined by the Executive Director through the date of last receipt of tax increment
from the TIF District.
2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment,"
which shall mean, on each Payment Date, tax increment available after other obligations have been
paid, or as determined by the Executive Director, generated in the preceding six (6) months with
respect to the property within the TIF District and remitted to the HRA by Hennepin County, all
in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, 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.
2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre-
payable in whole or in part at any time by 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.
2.05. This Interfund Loan is evidence of an internal borrowing by 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, HRA or the City of
Eden Prairie. 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.
2.06. 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.
Section 3. Effective Date. This resolution is effective upon the date of its approval.
Dated: April 2, 2019.
Ronald A. Case, Mayor
ATTEST:
bJ:oi1&t DITector
(Seal)