HomeMy WebLinkAboutCity Council Resolution 2021-278
C ITY OF P LYMOUTH
R ESOLUTION N O. 2021-278
R ESOLUTION A PPROVING THE T ERMS OF AN I NTERFUND L OAN
A DOPTED BY THE H OUSING AND R EDEVELOPMENT A UTHORITY IN AND FOR
THE CITY OF P LYMOUTH, M INNESOTA
WHEREAS, the City of Plymouth, Minnesota (the "City") has heretofore established Tax
Increment Financing District No. 7-7 (the "TIF District") within Development District No. 7 and has
adopted a tax increment financing plan for the TIF District (the "TIF Plan"); and
WHEREAS, the Housing and Redevelopment Authority in and for the City of Plymouth,
Minnesota (the "HRA") has determined to pay for certain costs identified in the TIF Plan consisting of
land acquisition, public utilities, site improvements/preparation, other eligible improvements, and
administrative costs (the "Qualified Costs") incurred in connection with the TIF District and
development of land within the TIF District, which costs may be financed on a temporary basis from
HRA funds available for such purposes; and
WHEREAS, the 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 made, in order to finance the Qualified Costs.; and
WHEREAS, the HRA intends to reimburse itself for the payment of the Qualified Costs, plus
interest thereon, from tax increments derived from the TIF District in accordance with the terms of a
resolution adopted on September 23, 2021 (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 that
1. The City approves the terms of an Interfund Loan as set forth in the HRA
Resolution attached hereto as Exhibit A.
2. This resolution is effective upon the date of its approval.
APPROVED by the City Council on this 12th day of October, 2021.
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EXHIBIT A
H OUSING AND R EDEVELOPMENT A UTHORITY IN AND FOR THE C ITY OF
P LYMOUTH, M INNESOTA
HRA R ESOLUTION N O. 2021-17
RESOLUTION APPROVING THE TERMS OF AN INTERFUND LOAN IN
CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 7-7
WHEREAS, the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota (the "HRA") has
determined to pay for certain costs identified in the TIF Plan (as hereinafter defined) consisting of land acquisition, public
utilities, site improvements/preparation, other eligible improvements, and administrative costs (the "Qualified Costs")
incurred in connection with Tax Increment Financing District No. 7-7 (the "TIF District") and development of land within
the TIF District, which costs may be financed on a temporary basis from HRA funds available for such purposes; and
WHEREAS, the City of Plymouth, Minnesota (the "City") has heretofore established the TIF District within
Development District No. 7 and has adopted a tax increment financing plan for the TIF District (the "TIF Plan"); and
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 made, in order to finance the
Qualified Costs; and
WHEREAS, the HRA intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, 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 Board of Commissioners (the "Board") of the Housing and Redevelopment
Authority in and for the City of Plymouth, Minnesota, as follows:
1. Terms of Interfund Loan.
(a) The HRA hereby authorizes the advance of up to $688,000, from the HRA's General Fund or any
other fund designated by the HRA, 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
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 4.00% and will not fluctuate.
(b) Principal and interest on the Interfund Loan (the "Payments") shall be paid annually on each
December 31 commencing with the date the tax increments from the TIF District are available
and not otherwise pledged to and including the earlier of (i) the date the principal and accrued
interest of the Interfund Loan is paid in full, or (ii) the date of last receipt of tax increment from
the TIF District ("Payment Dates") which Payments will be made in the amount and only to the
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extent of available tax increments. Payments shall be applied first to accrued interest, and then
to unpaid principal.
(c) Payments on the Interfund Loan are payable solely from the tax increment generated in the
preceding twelve (12) months with respect to the TIF District and remitted to the City by Hennepin
County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended.
Payments on this Interfund Loan are subordinate to any outstanding or future bonds, notes or
contracts secured in whole or in part with tax increment, and are on parity with any other
outstanding or future interfund loans secured in whole or in part with tax increments.
(d) 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.
(e) The 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 tax increment
pledged to the payment hereof under this resolution. The 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 or the HRA. Neither the State of
Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or
interest on the Interfund Loan or other costs incident hereto except out of 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 the 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 termination
of the TIF District. The HRA may amend the terms of the Interfund Loan at any time by resolution
of its Board, including a determination to forgive the outstanding principal amount and accrued
interest to the extent permissible under law.
2. Effective Date. This resolution is effective upon the date of its approval.
APPROVED by the Board on this 23rd day of September, 2021.
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