EDA Resolution 2014-025CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2014-025
RESOLUTION APPROVING THE TERMS OF A $800,000 TAX INCREMENT
INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING
DISTRICT NO. 1 -22 WITHIN CENTRAL MONTICELLO REDEVELOPMENT
PROJECT NO. 1
WHEREAS, pursuant to Minnesota Statutes, Sections 469.090 through 469.108, the
Monticello Economic Development Authority (the "Authority ") has been established and is
authorized to exercise economic development powers;
WHEREAS, the Authority hereby determines to pay for certain project costs, including
administrative costs, incurred by the City and Authority as authorized in the TIF Plan for the Tax
Increment Financing District No. 1 -22 (the "TIF District ") consisting of acquisition of real
property, relocation costs, architectural, engineering, legal and financial services and related
expenses to implement the TIF Plan for the TIF District (collectively, the "Costs "), which Costs
will be financed on a temporary basis from the Authority's general fund (the "General Fund ");
WHEREAS, the Authority, pursuant to Minnesota Statutes, Section 469.174 through
469.1794 (the "TIF Act "), under Section 469.178, Subdivision 7 of the TIF Act, the Authority is
authorized to advance or loan money from the General Fund or any other fund from which such
advances may be legally made in order to finance the Costs; and
WHEREAS, the Authority intends to reimburse itself for the Costs from the portion of the
proceeds of tax increments derived from property within the TIF District and from tax increment
from the TIF District not derived from property within the TIF District, pursuant to Minnesota
Statutes, Section 469.173, and in accordance with the terms of this resolution (which terms are
referred to collectively as the "TIF Loan") and the proposed TIF Plan.
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the
Monticello Economic Development Authority as follows:
1. Interfund Loan. The Authority has determined to pay for certain costs (the
"Qualified Costs ") identified in the TIF Plan consisting of certain administrative expenses and
costs of the Project, which costs will be financed on a temporary basis from the Authority's
General Fund, the Authority's operating budget or any other fund from which such advances may
be legally made (the "Fund "). Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority
is authorized to advance or loan money from the Fund in order to finance the Qualified Costs. The
Authority intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon,
from tax increments derived from the TIF District in accordance with the following terms (which
terms are referred to collectively as the " Interfund Loan"):
(a) The Authority shall repay to the Fund from which the Qualified Costs are
initially paid, the principal amount of $800,000 (or, if less, the amount actually paid
from such fund) together with interest at 4.00% per annum (which is not more than
the greater of (i) the rate specified under Minnesota Statutes, Section 270.75, or (ii)
the rate specified under Minnesota Statutes, Section 549.09) from the date of the
payment(s). There may be multiple repayment schedules if all $800,000 is not
spent at one time. Qualified Costs shall be documented as to principal amount and
date of the payment(s).
(b) Principal and interest on the Interfund Loan ( "Payments ") shall be paid
semi - annually on each June 20 and December 20 commencing with the first June
20 or December 20 occurring after the date the tax increments from the TIF District
are available and not otherwise pledged to and including the earlier of (a) the date
the principal and accrued interest of the Interfund Loan is paid in full, or (b) the
date of last receipt of tax increment from the proposed 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
accrued interest, and then to unpaid principal.
(c) Payments on the Interfund Loan are payable solely from "Available Tax
Increments" which shall mean, on each Payment Date, an amount not exceeding
25 percent of the tax increment generated in the preceding six (6) months with
respect to the Property within the TIF District, including tax increment remitted to
the Authority by Wright County, all in accordance with Minnesota Statutes,
Sections 469.174 to 469.1794. Payments on this Interfimd 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
interfimd 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 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 Interfund Loan.
(e) The 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. The 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. 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, 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 the Interfmd Loan or other
costs incident hereto. The Authority shall have no obligation to pay any principal
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amount of the Interfund Loan or accrued interest thereon, which may remain unpaid
after the termination of the proposed TIF District.
(f) The Authority may amend the terms of the Interfund Loan at any time by
resolution of the Authority, including a determination to forgive the outstanding
principal amount and accrued interest to the extent permissible under law.
Approved by the Board of Commissioners of the City of Monticello Economic Development
Authority this 12'h day of March, 2014.
ATTEST:
Exec ector /Secretary
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President
EXTRACT OF MINUTES OF A MEETING OF THE
CITY OF MONTICELLO
ECONOMIC DEVELOPMENT AUTHORITY
WRIGHT COUNTY, MINNESOTA
HELD: March 12, 2014
Pursuant to due call and notice thereof, a regular meeting of the City of Monticello
Economic Development Authority, Wright County, Minnesota, was duly held at the Monticello
City Hall on Wednesday, the 12th day of March, 2014 at 6:00 p.m. for the purpose, in part, of
approving the terms of a tax increment loan in connection with Tax Increment Financing District
No. 1 -22.
The following Commissioners were present: Demeules, Hinz, Frie, Dragsten, Perrault, Stumpf and
the following were absent: Tapper
Commissioner Hinz introduced the resolution and moved its adoption. The motion for the
adoption of the resolution was duly seconded by Commissioner Dragsten and upon vote being
taken thereon, the following voted in favor: Demeules, Hinz, Frie, Dragsten, Perrault, Stumpf and
the following voted against the same: None
Whereupon said resolution was declared duly passed and adopted.
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CERTIFICATION
STATE OF MINNESOTA )
ss.
COUNTY OF WRIGHT )
I, the undersigned, being the duly qualified and Executive Director /Secretary of the City
of Monticello Economic Development Authority, DO HEREBY CERTIFY that the attached
resolution is a true and correct copy of an extract of minutes of a meeting of the Board of
Commissioners of the City of Monticello Economic Development Authority, duly called and held,
as such minutes relate to the approving the terms of a tax increment loan in connection with Tax
Increment Financing District No. 1 -22.
WITNESS my hand as such Executive Director /Secretary of the City of Monticello
Economic Development Authority this 12th day of March, 2014.
Exe64V Director /Secretary
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