EDA Resolution 2021-12CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.2021-12
AUTHORIZING INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS
IN CONNECTION WITH TAX INCREMENT
FINANCING DISTRICT NO. 1-42
BE IT RESOLVED By the Board of Commissioners of the City of Monticello Economic
Development Authority (the "Authority") as follows:
Section 1. Background.
1.01. The Authority plans to establish tax increment financing district no. 1-42 (the
"TIF District") within the Central Monticello Redevelopment Project No. 1 (the "Redevelopment
Project") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 (the "TIF Act"), Sections
469.001 to 469.047, and Sections 469.090 to 469.1081, all as amended.
1.02. The Authority may incur certain costs related to the TIF District, which costs may
be financed on a temporary basis from available Authority funds.
1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized
to advance or loan money from any fund from which such advances may be legally made in
order to finance expenditures that are eligible to be paid with tax increments under the TIF Act.
1.04. The Authority may incur certain administrative costs related to the TIF District in
an aggregate amount of up to $65,000 which may be paid from any legally available fund and
reimbursed from tax increments under the TIF Act.
1.05. The Authority intends to designate the advances described herein as an interfund
loan in accordance with the terms of this Resolution and the TIF Act.
Section 2. Repayment of Interfund Loan.
2.01. The Authority will reimburse itself for administrative costs in the principal
amount of up to $65,000, together with interest at the rate of 4% per annum (together, the
"Interfund Loan"). Interest accrues on the Interfund Loan from the date of any advance of funds
to pay such administrative costs. The interest rate is no more than the greatest of the rate
specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for
calendar year 2021. The interest rate 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 Executive Director, through the date of last receipt of tax
MN 190\168\743734.v2
increment from the TIF District.
2.03. Payments on the Interfund Loan will be made solely from Available Tax
Increment, defined as tax increment from the TIF District received by the Authority from Wright
County in the six-month period before any Payment Date. Payments shall be applied first to
accrued interest, and then to unpaid principal. Interest accruing from the Closing Date will be
compounded semiannually on February 1 and August 1 of each year and added to principal until
the first Payment Date, unless otherwise specified by the City Administrator.
2.04. The principal sum and all accrued interest payable under this Resolution is pre-
payable in whole or in part at any time by the Authority without premium or penalty.
2.05. This Resolution is evidence of an internal borrowing by the Authority in
accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation
payable solely from Available Tax Increment pledged to the payment hereof under this
Resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the
State of Minnesota or any political subdivision thereof, including without limitation the
Authority and the City. Neither the State of Minnesota, nor any political subdivision thereof
shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident
hereto except out of Available Tax Increment. 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 at any time make a determination to forgive all or a portion of
the outstanding principal amount and accrued interest on the Interfund Loan to the extent
permissible under law.
2.07. The Authority may from time to time amend the terms of this Resolution to the
extent permitted by law, including without limitation amendment to the payment schedule and
the interest rate; provided that the interest rate may not be increased above the maximum
specified in Section 469.178. subd. 7 of the TIF Act.
Section 3. Effective Date. This Resolution is effective as of the date of its adoption.
Adopted this 8th day of September, 2021
r.
President
TTEST:
�e Director
2
MN 190\168\743734.v2