Loading...
16-06 - 10-13 - Liberty Crossing Winnetka-Medicine Lake Tax Project Resolution 16-06 October 13, 2016 Commissioner Harris introduced the following resolution and moved its adoption: RESOLUTION RELATINGTOTHE LIBERTY CROSSING WINNETKA-MEDICINE LAKE TAX INCREMENT PROJECT OF THE CITY AND APPROVING THE INTERFUND LOAN THEREFOR 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 Winnetka — Medicine Lake 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 has agreed 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"), all pursuant to a Private Development Agreement (the "Development Agreement") entered into with the Developer on April 29, 2016. c. In support of the Development, the City is issuing its General Obligation Storm Sewer Revenue Bonds (the "Bonds") to finance storm water flood containment and storage improvements within the District. d. In connection with the Development, the City authorized by written resolution dated December 15, 2015 an interfund loan of$1,000,000 to the HRA from the City's Storm Utility Fund, and the HRA approved the interfund loan by written resolution dated April 12, 2016 (the "Prior Interfund Loan"). Pursuant to Section 3.7 of the Development Agreement, the HRA paid Developer $1,000,000 to accommodate the installation of a large underground storm water storage basin beneath the Development. e. In connection with the Development, the City has authorized by written resolution dated October 13, a loan of up to $1,500,000 to the HRA from the City's Storm Utility Fund or other funds available or so much thereof as may be necessary to pay qualified costs of private activity improvements relating to the Development (the "Current Interfund Loan"). Resolution 16-06 - Continued October 13 2016 f. The Bonds will be a general obligation of the City, secured by its full faith and credit and taxing power. The City will also pledge net revenues of the storm sewer utility to the payment of principal and interest on the Bonds. The City expects to use tax increment revenues derived from the Development to first, pay debt service on the Bonds and second, repay the interfund loans. 2. Approval of the Current Interfund Loan. a. The HRA approves the interfund loan inthe amount of upto$1,500,000 in one or more tranches. The City shall be reimbursed as provided below from Available Tax Increment(as defined below)for the actual amount(s) loaned,together with interest at the rate of 4%,which does not exceed the greater of the rates specified under Minnesota Statutes,Section 270C.40 or Section 549.09,as of the date the loan is authorized. Interest accrues on the principal amount from the date of each tranche. b. Principal and interest ("Payments") on the outstanding Current Interfund Loan balance shall be paid semi-annually in two (2) equal installments per year, each installment to be deemed paid within ten (10) business days of receipt by the City of property tax revenues from Hennepin County (each a "Payment Date"), 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. c. Payments on this Current 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 469.1794,as amended. Payments on the Current 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 Current 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 Current Interfund Loan. e. This Current Interfund Loan isevidence of a loan inaccordance with Minnesota Statutes,Section 469.178,subdivision 7, and is limited obligation payable solelyfrom Available Tax Increment pledged to the payment hereof underthis resolution. Resolution 16-06 - Continued October 13 2016 '(;: ' ' teven T. Schmidgall, Chair ATTEST: Ai TimothVJ. Cruikshank, 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: Clausen, Fonnest, Harris and Schmidgall; and the following was absent: Snope, and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Chair and the signature attested by the Executive Director.