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15-07 - 12-15 - Liberty Crossing Project Resolution 15-07 December 15, 2015 Commissioner Harris introduced the following resolution and moved its adoption: RESOLUTION RELATING TO THE LIBERTY CROSSING PROJECT OF THE CITY AND APPROVING THE DEVELOPMENT AGREEMENT AND INTERFUND LOAN THEREFORE BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Golden Valley (the "HRA"), as follows: 1. Recitals. (a) The HRA and the City of Golden Valley, Minnesota (the "City") adopted the Redevelopment Plan for the Winnetka and Medicine Lake Road Project Area (the "Plan"), together with the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District (Redevelopment), Winnetka Avenue North & Medicine Lake Road No. 1 (the "District"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.174 to 469.1794, all inclusive, as amended (the "Act"). (b) In accordance with the TIF Plan, the HRA proposes to undertake a project with Liberty Crossing Investment Partners, LLC, a Minnesota limited liability company (the "Developer"), consisting of a five-story apartment building with approximately 187 apartments and approximately 55 townhomes, plus parking, landscaping, utilities and certain other improvements (the "Development"); (c) The Developer proposes that the HRA enter into a Private Development Agreement to construct the Development, attached hereto as Exhibit A (the "Development Agreement"). (d) In connection with the Development, the City has authorized the loan of up to $1,000,000 to the HRA from its Storm Utility Fund or other funds available or so much thereof as may be paid as qualified costs (the "Interfund Loan"). 2. Approval of Development Agreement. The Development Agreement is hereby approved and the Chair and Director are hereby authorized to enter into the Development Agreement by and among the HRA and the Developer. 3. Approval of Interfund Loan. (a) The HRA approves the Interfund Loan. 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 4% and will not fluctuate. Resolution 15-07 - Continued December 15, 2015 (b) Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually in two (2) equal installments per year, each installment to be paid within ten (10) business days of receipt by the City of property tax revenues from Hennepin County (the "Payment Dates"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the HRA pursuant to the TIF Plan (the "maximum term"). (c) Payments on this Interfund 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 Development Property and remitted by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, as amended. Payments on the Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. (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) This Interfund 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. Steven T. Schmidgall, Chair ATTEST: Timothy 4ruikshank, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner Fonnest, upon a vote being taken thereon, the following voted in favor thereof: Schmidgall, Clausen, Fonnest, Harris and Snope; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Executive Director.