Title
Resolution Authorizing and Approving an Interfund Loan under the Koch Mobil Tax Increment Financing District
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the "Act"); and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law and the HRA is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) disposition of land for private redevelopment, and (e) improving the tax base and the financial stability of the community, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in targeted neighborhoods; and is authorized to create redevelopment projects as defined in Minn Stat Section 469.002, Subd. 14; and
WHEREAS, the HRA Board established the Koch Mobil Tax Increment Financing District and TIF Financing Plan (the "Plan") on February 11, 2004; and
WHEREAS, the HRA desires to spend tax increments from the Koch Mobil Tax Increment Financing District on eligible public improvements as permitted in the adopted Plan; and
WHEREAS, the improvements will include, but not be limited to, a new street on HRA owned property within the TIF District to be dedicated as public right of way, as called for in the Victoria Park Master Plan, adopted in April 2005, and amended in April 2007 and August 2011; and
WHEREAS, under MN 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 authorized, in order to pay costs that are otherwise eligible for financing with tax increments under the TIF Act but such advance or loan must first be authorized and approved by this HRA Board of Commissioners before money is transferred, advanced or spent; and
WHEREAS, by this Resolution an interfund loan is being approved and the HRA Board of Commissioners finds a public purpose for this expenditure of funds.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, that:
a. The Authority hereby authorizes and approves the advance or loan of up to $1,000,000 from the HRA Capital Projects Fund 118 to the Koch Mobil Tax Increment District in order to pay eligible costs of the District ("Interfund Loan"). The Authority shall reimburse itself for such advances from future tax increments received from the District together with interest at the rate stated below.
b. Interest accrues on the principal amount from the date of each advance. The interest rate shall be 3%, which rate is no more than the greatest of (a) the rate specified under Minnesota Statutes, Section 270C.40 (the rate applied to delinquent State income taxes), or (b) the rate specified under Minnesota Statutes, Section 549.09 (the rate on unpaid judgments) in effect for calendar year 2013.
c. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean tax increment from the District after payments for debt service through December 31, 2030.
d. This 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 Available Tax Increments pledged to the payment hereof.
e. The HRA may amend the terms of this Interfund Loan, but they may not discharge the obligation.
f. HRA staff is hereby directed and authorized to take all actions necessary to implement this Resolution.