HomeMy WebLinkAboutCity Council Resolution 2008-192CITY OF PLYMOUTH
RESOLUTION NO. 2008-192
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH THE PLYMOUTH HOUSING
AND REDEVELOPMENT AUTHORITY'S TAX
INCREMENT FINANCING DISTRICT NO. 1-3
BE IT RESOLVED by the City Council (the "Council") of the City of Plymouth,
Minnesota (the "City"), as follows:
Section 1. Background.
1.01. The City has heretofore approved a Tax Increment Financing Plan (the "TIF Plan")
establishing Tax Increment Financing District No. 1-3 (the "TIF District") of the Plymouth
Housing and Redevelopment Authority (the "Authority") within the Authority's Redevelopment
Project Area No. 1 (the "Project"), which TIF Plan has been adopted by the Authority for the
purpose of financing certain improvements within the Project.
1.02. The City and the Authority have determined to pay for certain costs identified in
the TIF Plan consisting of road and site improvements, public utilities and administrative costs
(collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from the
City's Water Resource Fund available for such purposes.
1.03. Under Minnesota Statutes, Section 469.178, subdivision 7, the City is authorized to
loan money from the City's general fund or any other fiind from which such advances may be
legally made, in order to finance the Qualified Costs.
1.04. 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 "Interfiind Loan").
Section 2. Terms of Interftmd Loan.
2.01. The City hereby authorizes the loan of up to $54,315 from its Water Resource
Fund or so much thereof as may be paid as Qualified Costs. The City shall be reimbursed such
amount, together with interest at the rate stated below. Interest accrues on the principal amount
from the date of each loan. 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 is made, 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 [6%] and will not fluctuate.
2.02. Principal and interest ("Payments") on the Interfiund Loan shall be paid semi-
annually on each February 1 and August 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 Administrator, through the date of last receipt of tax
increment from the TIF District pursuant to the TIF Plan (the "maximum term").
2.03. Payments on this Interfiund Loan are payable solely from "Available Tax
Increment," which shall mean, on each Payment Date, tax increment available after other
obligations have been paid for the preceding six (6) months with respect to the property within
the TIF District and remitted by Hennepin County, all in accordance with Minnesota Statutes,
Sections 469.174 to 469.1799, as amended. Payments on this Interfiund Loan may be
subordinated to any outstanding or fi ture bonds, notes or contracts secured in whole or in part
with Available Tax Increment, and are on parity with any other outstanding or fi ture interfiund
loans secured in whole or in part with Available Tax Increment.
2.04. The principal sum and all accrued interest payable under this Interfiund Loan are
pre -payable in whole or in part at any time by the Authority 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 Interfiund Loan.
2.05. This Interfimd Loan is evidence of a loan in accordance with Minnesota Statutes,
Section 469.178, subdivision 7, and is a limited obligation payable solely from Available Tax
Increment pledged to the payment hereof under this resolution. The City acknowledges that this
Interfimd Loan and the interest hereon shall not be deemed to constitute a general obligation of
the Authority; that the Authority shall not be obligated to pay the principal of or interest on this
Interfimd Loan or other costs incident hereto except out of Available Tax Increment; and that the
Authority shall have no obligation to pay any principal amount of the Interfiund Loan, or accrued
interest thereon, which may remain unpaid after the final Payment Date.
Adopted by the City Council on June 24, 2008.
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 June 24, 2008, 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