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