HomeMy WebLinkAboutCity Council Resolution 2019-062
C ITY OF P LYMOUTH
R ESOLUTION N O. 2019-062
R ESOLUTION A UTHORIZING THE M AKING OF L OANS IN THE A MOUNT
OF $527,000 TO THE C RANBERRY R IDGE P ROJECT
WHEREAS, the City of Plymouth (the “City”) has heretofore approved the establishment of Tax
Increment Financing District No. 7-7 (the "TIF District") within Development District No. 7, and has adopted a
Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the
Project; and
WHEREAS, the City has since modified the TIF District and the TIF Plan to allow for, among other
things, the collection of “pooled” increment (the “TIF District Funds”) to be used for affordable housing
projects; and
WHEREAS, the TIF District currently has $258,825 available to be used for such affordable housing
projects (the “Available TIF District Funds”); and
WHEREAS, the City Council has heretofore approved the development of an approximately 45-unit
affordable housing project, to be known as Cranberry Ridge (the “Project”) and to be developed by Beacon
Interfaith Housing Collaborative (“Beacon”); and
WHEREAS, Beacon has requested financial assistance for the Project from the City and the Housing
and Redevelopment Authority in and for the City (the “HRA”) in the aggregate amount of $527,000 to be
structured as zero percent deferred loans that will be due and payable in thirty years from the date of
execution; and
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA:
Section 1. Structure and Terms of Loans.
1.01. The City shall use $258,000 of the Available TIF District Funds to make a zero percent deferred
loan to Beacon, that will be due and payable in 30 years from the date of execution (the “City Loan”).
1.02. The HRA intends to use moneys from the HRA’s General Fund Reserve account to make a
zero percent deferred loan to Beacon, that will be due and payable in thirty years from the date of
execution, for the remaining $269,000 needed to finance the Project (the “HRA Loan”).
1.03. Pursuant to Resolution No. 2019-029 (the “Interfund Loan Resolution”), the City intends to
reimburse the HRA’s General Fund Reserve account from Available Tax Increment, as defined in the
Interfund Loan Resolution, in accordance with the terms and conditions set forth in the Interfund Loan
Resolution.
APPROVED by the City Council on this 12th day of March, 2019.
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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 March 12, 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
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