HRA Resolution 2002-04Housing and Redevelopment Authority
in and for the City of Monticello, Minnesota
RESOLUTION NO. 02 -04
APPROVING AND RATIFYING THE TERMS OF S
37,900 INTERNAL LOAN IN
CONNECTION WITH TIF DISTRICT NO. 1 -21
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS ( "COMMISSIONERS ")
OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY• OF
MONTICELLO, MINNESOTA ( "AUTHORITY ") AS FOLLOWS:
Section 1. Back(rround
1.01. The City has heretofore approved the establishment of Tax Increment Financing District
No. 1 -21 (the ``TIF District ") within Central Monticello Redevelopment Project No. 1 (the
"Project "), and has adopted a tax increment financing plan for the purpose of financing certain improvements
within the Project.
1.02. The Authority determined to pay for certain costs identified in the Tax Increment Financing
Plan consisting of $37 T Eric ectively, the "Qualified Costs "), which costs were
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financed on a temporary basis from HRA General Funds pursuant to a disbursement from such fiend of
$37,900 on December 5 1997
1.03. Under Minnesota Statutes, Section 469.178, Subdivision 7, the Authority is authorized to
advance or loan honey from the HRH's general -fund or any other fund from which such advances may be
legally made. in order to finance the Qualified Costs and to ratify any such advances or loans made r or to
August 1, 2001. p
1.04. The Authority intends to reimburse itself for the 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 "TIF Loan ").
Section 2. Terms of TIF Loan
2.01. The Authority shall repay to the HRA General Fund from which the Qualified Costs are
initially paid, the principal amount of $ _3�. 9t10 R 25% together with interest on the principal amount
expended accruing from the date of each initial expenditure, at the greatest of (a) the rate specified under
Minnesota Statutes, Section 270.75, or (b) the rate specified under Minnesota Statutes, Section 549.09.
The interest rate for each calendar year during the term of the TIF Loan will be determined as of each
.January 1, using the maximum rate under clauses (a) or (b) in effect as of that date.
2.02. Principal and interest ( "Payments ") shall be paid semi - annually on August 1, 1999 and
each August l and February I thereafter to and including the earlier of (a) the date the principal and accrued
interest of the TIF Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF District
( "Payment Dates ") which Payments will be made in the amount and only to the extent of Available Tax
Increment as hereinafter defined. Payments shall be applied first to accrues( interest, and then to unpaid
principal. Interest accruing from the date of each expenditure to the first Payment Date shall be
compounded semiannually on February I and August 1 of each year and added to principal.
2.03. Payments on this TIF Loan are payable solely from "Available Tax Increment," which shall
mean, on each Payment Date, all of the tax increment generated in the preceding six (6) months with respect
to the property within the TIF District and remitted to the City by Wright County, all in accordance with
Minnesota Statutes, Sections 469.174 to 469.179. Payments on this TIF Loan are subordinate 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 TIF Loan are pre - payable in
whole or in part at any time by the Authority 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 TIF Loan.
2.05 This TIF Loan is evidence of an internal borrowing by the Authority 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. This TIF 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 Authority. Neither the State of Minnesota, nor any political
subdivision thereof shall be obligated to pay the principal of or interest on this TIF 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 TIF Loan or other costs incident hereto. The Authority shall have no
obligation to pay any principal amount of the TIF Loan or accrued interest thereon, which may remain
unpaid after the final Payment Date.
2.06. The Authority may amend the terms of this TIF Loan at any time by resolution of the
Authority's Board of Commissioners, including a determination to forgive the outstanding principal amount
and accrued interest to the extent permissible Linder law.
Section 3. Ratification.
3.01. The Board ratifies all actions of its staff and consultants in making the TIF Loan, and in
making all the prior repayments. Staff is authorized and directed to attach to this resolution schedules
indicating the payments applied to the TIF Loan and the outstanding principal amount of the TIF Loan as of
the date of approval of this resolution.
3.02 The Board authorizes and directs staff to take all actions necessary to repay the outstanding
balance of the TIF Loan in accordance with this resolution.
Section 4. Effective Date. This resolution is effective upon the date of its approval.
Adopted this day of 2002.
p Y
ATTEST:
Chair
A O
Executive Director
DAWN /WORD /OLLIE /HRA RESOLUTION