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HomeMy WebLinkAboutCity Council Resolution 2008-255CITY OF PLYMOUTH RESOLUTION NO. 2008-255 RESOLUTION AMENDING A 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 has heretofore adopted, on June 24, 2008, Resolution No. 2008-192 (the "Original Resolution"), evidencing the City's intent to reimbursed for the Qualified Costs from tax increments derived from the Authority's TIF District in accordance with the terms thereof (which terms are referred to collectively as the "Interfiind Loan"). 1.05. The City desires to amend the amount of the Interfund Loan to accurately reflect the increase in Qualified Costs to be financed on a temporary basis. Section 2. Amendment of Original Resolution. 2.01. The City hereby amends Section 2.01 of the Original Resolution by deleting such section in its entirety and replacing it with the following: 2.01. The City hereby authorizes the loan of up to $138,500 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. Adopted by the City Council this 26th day of August, 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 August 26, 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