18-05 - 10-16 - Amend Resolution 16-06 Relating to Liberty Crossing HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO.18-05
RESOLUTION AMENDING 16-06 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").
(e) In connection with the Development, the City has authorized the loan of up to
$1,500,000 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"). With this
amendment the amount of the loan on October 16, 2018 be approved for the amount
of$1,050,000 due to the actual costs are lower than the estimated cost.
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
HRA Resolution No. 18-05 -2-
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.
(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.
Joanie Clausen, Chair
ATTE T:
Timoth J. Cruikshank, Executive Director