HomeMy WebLinkAboutCity Council Resolution 2019-157
C ITY OF P LYMOUTH
R ESOLUTION N O. 2019-157
R ESOLUTION A UTHORIZING AN I NTERFUND L OAN FOR
A DVANCE OF C ERTAIN C OST IN C ONNECTION WITH T AX
I NCREMENT F INANCING D ISTRICT N O. 7-9
WHEREAS, the City has heretofore approved the establishment of Tax Increment Financing
District No. 7-9 (the "TIF District) on January 24, 2017; and
WHEREAS, the City has determined to pay for certain costs identified in the Tax Increment
Financing Plan for the TIF District (the “Qualified Costs) which may be financed on a temporary basis
from City funds available for such purposes; and
WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to
advance or loan money from the City's general fund or any other fund from which such advances may
be legally authorized, in order to finance the Qualified Costs; and
WHEREAS, the City 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 HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA:
Section 1. Terms of Interfund Loan.
1.01. The City hereby authorizes the advance of up to $1,000,000 from the General Construction
Improvement Fund (Fund 400). The City 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.
1.02. 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 City Manager, through the date of last receipt of tax increment from the TIF District.
Resolution No. 2019-157
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1.03. 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 City Manager, 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 469.1794, 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.
1.04. The principal sum and all accrued interest payable under this Interfund Loan are pre-
payable in whole or in part at any time by the City 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.
1.05. This Interfund Loan is evidence of an internal borrowing by the City 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 City. 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
City 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.
1.06. The City may amend the terms of this Interfund Loan at any time by resolution of the City
Council, including a determination to forgive the outstanding principal amount and accrued interest to
the extent permissible under law.
APPROVED by the City Council on this 28th day of May, 2019.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota,
certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on
May 28, 2019 with the original thereof on file in my office, and the same is a correct transcription
thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________day of
__________________, __________.
_____________________________________
City Clerk