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121415 EDACITY OF NEW HOPE EDA MEETING VC@b City Hall, 4401 Xylon Avenue North December 14, 2015 EDA Meeting will commence upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Jonathan London Call to order - EDA Meeting of December 14, 2015 2. Roll call Approval of Minutes: • November 23, 2015 4. Resolution authorizing the final levy of a special benefit levy pursuant to Minnesota Statutes, Section 469.033, subdivision 6 and approval of a final budget for fiscal year 2016 5. Resolution authorizing an interfund loan for advance of certain costs in connection with Tax Increment Financing District No. 11-1 created by the City of New Hope and the New Hope Economic Development Authority (project no. 964) 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes November 23, 2015 Regular Meeting City HaII CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 9:01 p.m. ROLL CALL Present: Kathi Hernken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Jonathan London, Commissioner Staff Present: Kirk McDonald, City Manager Aaron Chirpich, Community Development Specialist Tim Fournier, Police Chief Valerie Leone, City Clerk Chris Long, City Engineer Bob Paschke, Director of Public Works Jeff Sargent, Director of Community Development Steve Sondrall, City Attorney Stacy Woods, Assistant City Attorney APPROVAL OF Motion was made by Commissioner Hoffe, seconded by Commissioner MINUTES London, to approve the minutes of November 9, 2015. Voting in favor: Item 3 Hemken, Elder, Hoffe, London; voting against: None; Absent: None; Abstained: Lammle. Motion carried. IMP. PROJECT 971 President Hemken introduced for discussion EDA Item 4, Resolution Item 4 adopting a modification to the redevelopment plan for Redevelopment Project No. 1, establishing the Industrial Equities Tax Increment Financing District therein and adopting a tax increment financing plan therefor (project no. 971). Mr. Jeff Sargent, community development director, explained that the City Council acted on this issue, and establishment of a TIF district also requires approval by the EDA. He stated the Council approved the plan on a four to one vote. RESOLUTION 2015-22 Commissioner Lammle introduced the following resolution and moved its Item 4 adoption "RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, ESTABLISHING THE INDUSTRIAL EQUITIES TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR (PROJECT NO. 971)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Elder, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle,; and the following voted EDA Meeting Page 1 November 23, 2015 against the same: London; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. TERMINATION OF President Hemken introduced for discussion EDA Item 5, Resolution EASEMENT approving termination of easement over property platted as "New Hope Item 5 Hy -Vee". Mr. Jeff Sargent, director of community development, stated an unnecessary easement that encompasses the Hy -Vee property was recently discovered. He reported the public easement is not needed, and the city attorney and staff recommend it be terminated to facilitate Hy-Vee's negotiation process with North Memorial. He noted the easement related to the former plat when it was owned by the State Bank of New Hope. RESOLUTION 2015-23 Commissioner Lammle introduced the following resolution and moved its Item 5 adoption "RESOLUTION APPROVING TERMINATION OF EASEMENT OVER PROPERTY PLATTED AS "NEW HOPE HY-VEE." The motion for the adoption of the foregoing resolution was seconded by Commissioner London, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, London; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 975 President Hernken introduced for discussion EDA Item 6, Resolution Item 6 authorizing the acquisition of 4511 Boone Avenue North by the Economic Development Authority through redemption as a junior creditor (project no. 975). Mr. Aaron Chirpich, community development specialist, requested the EDA's authority to acquire the property at 4511 Boone Avenue North as part of the city's scattered site housing program. He reported the matter was discussed at the November 16 work session. He stated the house was severely damaged by fire in May of 2014, and the city has received several complaints regarding the appearance of the home. He stated the resolution authorizes the EDA to acquire the property through redemption as a junior creditor. The cost to acquire the property is anticipated to be $86,000. The purchase would be made by EDA funds and reimbursement by CDBG funds. The EDA questioned the timeline for demolition of the structure. Mr. Jeff Sargent, director of community development, indicated due to the redemption period, the city cannot acquire the property until March. He stated demolition will occur as soon as possible following the city's acquisition of the property. Mr. Kirk McDonald, city manager, thanked the community development staff for their diligent work to acquire the property. EDA Meeting Page 2 November 23, 2015 RESOLUTION 2015-24 Commissioner London introduced the following resolution and moved its Item G adoption "RESOLUTION AUTHORIZING THE ACQUISITION OF 4511 BOONE AVENUE NORTH BY THE ECONOMIC DEVELOPMENT AUTHORITY THROUGH REDEMPTION AS A JUNIOR CREDITOR (PROJECT NO. 975). " The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, London; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly assed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 971 President Hemken introduced for discussion EDA Item 7, Resolution Item 7 authorizing the execution of a contract for private redevelopment with Industrial Equities - New Hope, LLC (project no. 971). Mr. Jeff Sargent, community development director, stated this item relates to Item 7 for establishment of the TIF district. He stated the contract for private redevelopment with Industrial Equities ensures the developer will complete the required site improvements at 9449 Science Center Drive in order to use tax increment for the costs. He stated Jason Aarsvold of Ehlers is in attendance to answer questions. Mr. Aarsvold highlighted the business terms of the contract: developer will demolish the existing building, will construct a 48,000 square foot office/warehouse development, and pay the administrative costs and property taxes. He stated in exchange the city will establish the TIF district and establish a pay-as-you-go note at 4.5% interest. He stated the payments will be made semi-annually until completion, and it is possible for the 15 -year note to be repaid early. Commissioner London inquired whether the contract included provisions for employment or high end finishes. Mr. Aarsvold indicated statute does not require job creation provisions for this type of redevelopment district. He stated the investment has to be more than 70% of the current market value which is the case. He noted the development meets the "but for" test and land value was taken into consideration. Council Member London stated the property is worth $700,000 to $1 million which is substantially higher than the developer paid for the property. He provided his opinion that the city should not provide financial assistance. He spoke of the lack of a competitive listing. Mr. John Allen, developer, explained the property was on the market for nearly two years. He shared recent land prices and noted the small site makes it a difficult redevelopment. He pointed out he is fronting the loan and is paying all legal fees related to the TIF district creation. He stated the redevelopment will provide the city with an attractive contemporary building EDA Meeting Page 3 November 23, 2015 and increased tax base. RESOLUTION 2015-25 Commissioner Lammle introduced the following resolution and moved its Item 7 adoption "RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT FOR PRIVATE REDEVELOPMENT WITH INDUSTRIAL EQUITIES - NEW HOPE, LLC (PROJECT NO. 971)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Elder, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle; and the following voted against the same: London; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Elder, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:25 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 4 November 23, 2015 By: ✓J "�`�- t Originating Department City Manager/Finance Kirk McDonald, COUNCIL Request for Action Kirk Approved for Agenda December 14, 2015 Agenda Section EDA Item No. 4 Resolution authorizing the final levy of a special benefit levy pursuant to Minnesota Statutes, Section 469.033, subdivision 6 and approval of a finial budget for fiscal year 2016 Requested Action Staff requests the EDA adopt the attached resolution relating to the EDA levy for 2016. Background The resolution supports the $150,000 EDA levy. In the past the EDA levy was included in the city's proposed levy. Per AEM, an EDA meeting is necessary to adopt the EDA levy separate from the city's base levy. The EDA may levy up to .0185 percent of the estimated market value for taxes payable in 2016. The 2016 EDA levy is the same amount levied for the 2015 budget, and no increase is recommended for the 2016 budget. Attachment Resolution Motion by 1111UAIL rSecond by To: 6V r`[ I tX.CI 5-_),6 I.RFA/Finance/Budget/2016/Q-EDA final Levy 12.14.15 EDA RESOLUTION 2015 - RESOLUTION AUTHORIZING THE FINAL LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A FINAL BUDGET FOR FISCAL YEAR 2016 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the "EDA Act"), the City Council of the City of New Hope created the New Hope Economic Development Authority (the "Authority"); and WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the Authority to levy and collect a special benefit levy of up to .0185 percent of estimated market value in the City upon all taxable real property within the City; and WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .0185 percent of estimated market value in the City for taxes payable in 2016, and WHEREAS, pursuant to Minnesota Statutes, Section 275.065, the Authority is required to adopt a proposed budget and a proposed tax levy and submit the same to the County Auditor by September 15; and WHEREAS, the Authority has before it for its consideration a copy of a proposed budget for its operations for the fiscal year 2016 and the amount of the proposed levy for collection in 2016 shall be based on this budget and the long range financial management plan, subject to any adjustments in the budget as finally approved prior to certification of the final special benefit Ievy. NOW THEREFORE, be it resolved by the Board of Commissioners of the New Hope Economic Development Authority: 1. The proposed budget for the operations of the Authority in fiscal year 2016, as presented for consideration by the City Council, is hereby in all respects approved, subject to final approval by the Authority before certification of the tax levy under Minnesota Statutes, Section 275.07. 2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is hereby approved in the amount of $150,000. The maximum amount that can be levied is an amount equal to 0185 percent of estimated market value in the City of New Hope. 4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the City Council of the levy of special benefit taxes payable in 2016 and to take such other actions as are necessary to bring before the Board the final budget and levy to be sent to the county auditor on or before five working days after December 20, 2015. Adopted by the New Hope EDA on December 14, 2015. Attest: Executive Director President '�k-10TIN c Originating Department Community Development Director of CD EDA Request for Action Kirk Approved for Agenda December 14, 2015 Agenda Section EDA Item No. 5 Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. I1-1 Created by the City of New Hope and the New Hope Economic Development Authority (improvement project no. 964) Requested Action Staff requests that the Economic Development Authority (EDA) approve a resolution authorizing an internal (interfund) loan to Tax Increment Financing (TIF) District 11-1, located at 8400 Bass Lake Road. Policy/Past Practice It is the practice of the EDA to require the approval of resolutions authorizing internal loans. Background In 2008, the EDA approved an interfund loan resolution to TIF Districts 3-1 and 4-1 in order to buy the Bass Lake Road apartment site for $4M. TIF District 3-1 was the Winnetka Green Ryland Home project, and TIF District 4-1 was the Frank's Nursery site. In 2011, the EDA established a TIF District (11-1) for the Bass Lake Road Apartment site through special legislation. Just recently, in August 2015, the EDA approved an interfund loan resolution for TIF District 11-1 of $100,000 to cover administrative costs associated with the project. For TIF reporting purposes, the EDA needs to reclassify the original 2008 interfund loan (from TIF Districts 3-1 and 4-1) to TIF District 11-1, since this is where the proposed development will be located. Ehlers is recommending that the City should approve the attached interfund loan resolution, which combines the interfund loans from 2008 and 2015. Bob Deike, the city's EDA attorney, drafted the attached resolution and recommends approval. Recommendation Staff recommends approval of the Resolution. Attachments • Resolution for Interfund Loan • Ehlers Memo Motion by Y- Second by • fl _rr��_�_ I:1RFA1 COMM DEV\Developmentl Q &R - Interhmd Loan Resolution -8400 Bass Lake Road 12-14-15.doc NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY CITY OF NEW HOPE HENNEPIN COUNTY STATE OF MINNESOTA Commissioner introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 11-1 CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY. BE IT RESOLVED by the Board of Commissioners (the 'Board") of the New Hope Economic Development Authority (the "Authority"), as follows: Section 1. Background. 1.01. The Authority and the City of New Hope (the "City") have created Tax Increment Financing District No. 11-1 (the "TIF District") in order to provide a funding source to assist in the redevelopment of certain real property in the City (the "Property"). 1.02. The Authority previously determined to pay for certain costs associated with the TIF District (the "Qualified Costs"), which costs were or will be financed on a temporary basis from Authority funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to advance money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. On April 28, 2008, the Authority adopted Resolution No. 08-07 establishing an interfund loan to document its intent to be repaid for certain acquisition and redevelopment costs to be incurred by the Authority with respect to the TIF District. 1.05. On August 10, 2015, the Authority adopted Resolution No. 15-09, establishing an interfund loan to document its intent to be repaid for certain additional costs to be incurred by the Authority with respect to the TIF District. 1.06. The Authority intends to combine the two earlier interfund loans into one interfund loan payable from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $4,000,000 from the EDA Fund or other funds or so much thereof as may be paid as Qualified Costs. The Authority shall be reimbursed for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. 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 or advance is authorized, 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. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax increment (defined below), or on any other dates determined by the Authority's Executive Director, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment avaiIable after other obligations have been paid, or as determined by the Executive Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the Authority by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this 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. 2.04. The principal sum and all accrued interest payable under this Interfund 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 Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City and Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2,06. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: December 14, 2015 ATTEST: Kirk McDonald, Executive Director Kathi Hen ken, President To: Kirk McDonald — EDA Executive Director From: Stacie Kvilvang Date: December 14, 2015 Subject: Interfund Loan Resolution — TIF District 11.1 (BLR Apartments) On April 28, 2008, the EDA approved and interfund loan (IFL) resolution for $4 million to buy the above referenced apartments. The IFL was made to TIF Districts 3-1 and 4-1 since no TIF district was yet set up for the site. On August 10, 2015, the EDA passed another IFL resolution for $100,000. This was made for TIF District 11-1 to pay for administrative costs. In 2008, the EDA created TIF District 11-1 under special legislation. Since this was completed, the IFL approved in 2008 should have been revised to be made to TIF 11-1. The attached resolution combines both IFL resolutions previously approved (2008 and 2011) into one IFL for all costs. The attached resolution authorizes an IFL of up to $4 million from the EDA's Development Fund or other City funds. The EDA will reimburse these Funds for the above referenced costs (as they are advanced) in the current principal amount, together with interest at the rate of 4% per annum, as TIF funds become available. The interest rate is set at the statutory maximum and will not be adjusted annually. Please contact me at 651-697-8506 with any questions. ..EHLERS Minnesota LENDERS IN PUBLIC FINANCE Of low also in Wisconsin and Illinois phone 651-697-M fax 651-897-8555 toll free 800-552-1171 www,ehlers-inc,com 3060 Centre Pointe Drive Roseville, MN 55113-1122 Commissioner Nolte introduced the following resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: NEW HOPE ECONONHC DEVELOPMENT AUTHORITY COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION NO. 08-07 RESOLUTION APPROVING INTERFUND LOANS ASSOCIATED WITH THE PROPOSED ACQUISITION AND REDEVELOPMENT OF THE BASS LAKE ROAD APARTMENTS REDEVELOPMENT PROJECT BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the New Hope Economic Development Authority (the "Authority') as follows. Section 1. Recitals. 1.01 The Authority is considering the redevelopment of property known as the Bass Lake Road Apartments and adjacent areas generally located in the Northeast quadrant of Bass Lake Road and Yukon Avenue N. (the "Site'. 1.02 The Authority has agreed to finance certain costs in categories identified on Exhibit A (the "Qualified Costs") from Authority funds available for such purposes by making loans from its funds to its TIF Districts 3-1 (Ryland/East Winnetka/CVS) and 4-1 (Old Frank's Nursery) (the "Existing TIF Districts"). 1.03 The Authority has already advanced or loaned money and will continue.to advance or loan money to finance Qualified Costs under Minnesota Statutes, Section. 469.176, Subdivision 4 from its general fund or any other fund under which it has legal authority to do so, pursuant to Minnesota Statutes, Section 469.178, Subdivision 7. 1.04 The Authority may create a redevelopment tax increment financing district (the "Future TIF District") on the Site pursuant to Minnesota Statutes, Section 469.176, Subdivision 4j. 1.05 The Authority intends to reimburse itself for the Qualified Costs from tax increments generated from the Existing TIF Districts and the Future TIF District (hereinafter referred to as the "TIF Districts', in accordance with terms of this resolution (which terms are referred to collectively as the "TIF Loans"). 1.06 The Authority acknowledges the need to create and maintain an ongoing Register of Advances (the "Register"), as shown on Exhibit A, to reflect the continuing interfiind loans and advances in accordance with the TIF Loans. Section 2. Terms of the TIF Loans. 2.01 The Authority shall repay the specific Authority fund from which the Qualified Costs were and are to be paid, the principal amounts not to exceed $4,000,000 as shown on Exhibit A attached hereto, together with accrued interest from the date of each expenditure at a rate which may not exceed the greater of the rates specified under (a) Minnesota Statutes, Sec. 270C.40 or (b) Minnesota Statutes, Sec. 549.09. The interest rate for each calendar year during the term of each TIF Loan shall be determined as of each January 1 using the maximum rate under clause (a) or (b) in effect as of that date, 2.02 Principal and interest payments (the "Payments") for each TIF Loan shall be paid annually on December 31 of the first year of receipt of Available Tax Increment (defined in Sec. 2.03 below) and on each December 31 thereafter (the "Payment Dates"), up to and including the earlier of (a) payment in full of each TIF Loan or (b) the termination date of the TIF District. Payments shall be applied first to accrued interest and the balance to the reduction of principal. Interest accruing from the date of each expenditure to the first Payment Date shall be compounded annually on December 31 of each year and added to principal. 2.03 Payments on each TIF Loan are payable solely from Available Tax Increment, which shall mean the tax increment available from the TIF Districts and available forthat purpose from any other tax increment financing district, after withholding (a) allowable Authority administrative fees, and (b) prior obligations, which shall include all general obligation or revenue bonds or notes for which the tax increment revenues of the TEF Districts are pledged. 2.04 The principal sum and accrued interest payable under each TIF Loan maybe prepaid in whole or in part at anytime without premium or penalty, No partial prepayment of any TIF Loan shall affect the amount or timing of any regular payments otherwise required to be made under the TIF Loans. 2.05 Each TIF Loan is evidence of internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, Subdivision 7, and is a limited obligation payable solely from the Available Tax Increments pledged to the payment thereof under this resolution. The Authority shall have no obligation to pay any principal amounts of the TIF Loans or accrued interest thereon which may remain unpaid after the final Payment Date. 2.06 The Authority may amend the terns of any TIF Loan at anytime by resolution of the Board of Commissioners, including a determination to forgive the outstanding principal amounts and accrued interest to the extent permissible under law. S ection 3. Approval. The Board of the Authority hereby approves the creation of a Register of Advances and the appointment of the Finance Director of the City to maintain the Register to reflect an accurate accounting of the interfund loans and advances, and approves their repayment in accordance with the TIF Loans. Adopted by the Commissioners of the Authority this 28th day of April , 2008. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hof f e and upon vote being taken thereon the following voted in favor thereof: opem, Hoffe, Nolte, Stauner and the following voted against the same: Done Whereupon said resolution was declared duly passed and adopted, and was signed by the President and attested to by the Executive Director. ATTEST; Executive Director President 3 NEW HOPE ECONONOMIC DEVELOPMENT AUTHORITY CITY OF NEW HOPE HENNEPIN COUNTY STATE OF MINNESOTA Commissioner Lammle introduced the following resolution and moved its adoption: RESOLUTION NO. _2o15 -o9 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY. BE IT RESOLVED by the Board of Commissioners (the "Board") of the New Hope Economic Development Authority (the "Authority"), as follows: Section 1. baground. 1.01. The Authority and the City of New Hope (the "City") have created Tax Increment Financing District No. 11-1 (the "TIF District") in order to provide a funding source to assist in the redevelopment of certain real property in the City (the "Property"). 1.02. The Authority has determined to pay for certain costs identified in the TIF Plan consisting of administrative and pre -development expenses, including but not limited to, fees of attorneys, financial advisors and other consultants, and interest (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from Authority funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to advance money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The Authority intends to reimburse itself for the funds advanced for 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 "Interfund Loan"). Section 2. Terms of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $100,000 from the EDA Fund or other funds or so much thereof as may be paid as Qualified Costs. The Authority shall be reimbursed for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. 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 or advance is authorized, 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. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February Keach a 'Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Authority's Executive Director, through the date of last receipt of tax increment from the TIF District. 2.03. 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, or as determined by the Executive Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the Authority by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this 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. 2.04. The principal sum and all accrued interest payable under this Interfund 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 Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City and Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date. This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Hoff a , and upon a vote being taken thereon, the following voted in favor thereof: Hemken, Hoffe, Lammie and the following voted against the same: London Absent:: Elder Dated: August 10, 2015 Kirk McDonald, Executive Director ATTEST: Kathi Hemken, President