HomeMy WebLinkAboutCity Council Resolution 2013-279CITY OF PLYMOUTH
RESOLUTION NO. 2013-279
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING
DISTRICT NO. 7-8
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 adopted a Tax Increment Financing Plan (the "TIF Plan")
establishing Tax Increment Financing District No. 7-8 (the "TIF District") within Development
District No. 7 (the "Project Area") for the purpose of financing certain improvements within the
Project Area.
1.02. The City has determined to pay for certain administrative costs identified in the
TIF Plan (the "Qualified Costs"), which costs may be financed on a temporary basis from the
City's general 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 $25,000.00 from its general 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 3% 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 TIF District 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 fiiture 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 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 Interfimd 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.
Adopted by the City Council this 27th day of August, 2013.
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