1h. Resolutions for Interfund Loans, Chanhassen Transit Station
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax:952.227.1310
Senior Center
Phone: 952227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
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MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM:
~-
Greg Sticha, Finance Director
DATE:
February 22, 2010
SUBJ:
Resolution Approving an Inter Fund loan for Bloomberg
Assessment Repayment
BACKGROUND
Resolution Authorizing Interfund Loan for Advance of Certain Costs in
Connection with Transit Station Public Improvement Projects:
Earlier this evening, it is anticipated that the EDA will adopt a resolution
authorizing an interfund loan for reimbursement of legal and engineering costs
associated with the Chanhassen Transit Station project. In addition to the EDA's
action, the City Council must adopt a similar resolution since the loans are from
city funds.
Staff recommends that the City Council adopt the attached resolution authorizing
an interfund loan in an amount not to exceed $418,000 from the following funds:
· $168,000, Capital Replacement Equipment Fund (400); for the purchase of the
Railroad Depot land
· $77,500, Water Utility Fund (700)
· $52,800, Sanitary Sewer Utility Fund (701)
· $88,100, Storm Sewer Utility Fund (720)
If expenses exceed $368,400, the additional expenses (up to another $49,600) will
be transferred from the Capital Replacement Equipment Fund. Staff will inform
the City Council if this becomes necessary. The city will use future increment, to
the extent available, to repay these loans.
Resolution Authorizing Interfund Loans for Advance of Public Redevelopment
Costs, Chanhassen Transit Station: On January 4,2010, the City expended
$729,921 to Bloomberg Companies for land acquisition required for the development
of the Chanhassen Transit Station. These costs will be repaid through special
assessments levied on the surrounding properties, which are also presently owned by
Bloomberg Companies. These assessment amounts total $729,253.
The interfund loan will be from the City's water fund and will be repaid in full after
the last assessment payment is made by the property owner in 2020. The assessments
are being paid back with 6% interest.
Chanhassen is a Community for Life. Providing for Today and Planning for Tomorrow
Mayor and City Council
February 22, 2010
Page 2
RECCOMENDA TION
Staff recommends that the City Council adopt the following resolutions:
1. Resolution Authorizing Interfund Loan in an amount not to exceed $418,000
for Advance of Certain Costs in Connection with Transit Station Public
Improvement Project; and
2. Resolution Authorizing Interfund Loans in the amount of $729,253 for
Advance of Public Redevelopment Costs in Connection with Chanhassen
Transit Station Tax Increment Financing District.
Approval requires a simple majority of the City Council.
ATTACHMENT
1. Resolution Authorizing Interfund Loan in an amount not to exceed $418,000
for Advance of Certain Costs in Connection with Transit Station Public
Improvement Project; and
2. Resolution Authorizing Interfund Loans in the amount of $729,253 for
Advance of Public Redevelopment Costs in Connection with Chanhassen
Transit Station Tax Increment Financing District.
3. Assessment Repayment Schedule.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
Februarv 22. 2010
RESOLUTION NO:
MOTION BY:
SECONDED BY:
A RESOLUTION AUTHORIZING INTERFUND LOANS FOR
ADVANCE OF PUBLIC REDEVELOPMENT COSTS IN CONNECTION WITH
CHANHASSEN TRANSIT STATION TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED By the City Council of the City of Chanhassen, Minnesota (the
"City"), as follows:
Section 1. Background.
1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIP Act") and
Sections 469.090 to 460.1082 (the "EDA Act"), the Chanhassen Economic Development Authority
(the "Authority") intends to establish the Chanhassen Transit Station Tax Increment Financing
District, TIP District No. 10 (the "TIP District") within the Downtown Chanhassen Redevelopment
Project Area (the "Project").
1.02. The Authority may incur certain costs related to the TIP District and the Project,
which costs may be financed on a temporary basis from Authority or City funds available for such
purposes.
1.03. Under Section 469.178, Subdivision 7 of the TIP Act, the Authority and City are
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 TIP
Act.
1.04. On February 22, 2010, the Authority approved or will approve a resolution (the
"Loan Resolution") authorizing intemalloans and setting the terms for reimbursement of public
redevelopment costs ofthe Project to be repaid with tax increments from the TIP District.
Section 2.
Interfund Loans Authorized.
2.01. The City approves the interfund loans described in the Loan Resolution. The City
authorizes the advancement of up to $200,000 from the City's Capital Replacement Equipment
Fund (Fund No. 400) and up to $218,000 from the City's Utility Funds, $77,500 from the Water
Utility (Fund No. 700), $52,800 from the Sanitary Sewer Utility (Fund No. 701), and $88,100
from the Storm Sewer Utility (Fund No. 720), or any other unencumbered City or Authority
funds available for such purposes under law as the source of the funds for the loan in total
amount not to exceed $418,000.
2.02. The City's Chief Financial Officer is authorized and directed to determine the
specific funds from which monies are drawn for the interfund loans in a total amount not to
exceed $418,000, and to credit repayments under the Loan Resolution to the relevant funds.
2.03. City staff and officials are authorized and directed to execute any collateral
documents and take any other actions necessary to carry out the intent of this resolution.
Section 3. Effective Date. This resolution is effective upon approval.
Approved by the City Council ofthe city ofChanhassen this 22nd day of February, 2010.
ATTEST:
Todd Gerhardt, City Clerk/Manager
Thomas A. Furlong, Mayor
YES
NO
ABSENT
Furlong
Ernst
Litsey
McDonald
Tjornhom
None
None
2
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
Februarv 22. 2010
RESOLUTION NO:
MOTION BY:
SECONDED BY:
A RESOLUTION AUTHORIZING INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH
TRANSIT STATION PUBLIC IMPROVEMENT PROJECT
BE IT RESOLVED By the City Council of the City of Chanhassen, Minnesota (the
"City"), as follows:
Section 1.
Background.
1.01. The City plans to incur costs related to the Chanhassen Transit Station public
improvement project.
1.02. The City intends to advance funds to pay the costs described above and proposes
to designate such advances as an interfund loan in accordance with the terms of this resolution.
Section 2.
Repavment of Interfund Loan.
2.01. The City's Transit Station Capital Project Fund (Fund No.413) shall borrow from
the City's Water Fund (Fund No. 700) to pay costs related to the Chanhassen Transit Station
public improvement project described above in a principal amount of up to $729,253. The City's
Transit Station Capital Project Fund will reimburse the City's Water Fund for such loan
(the "Interfund Loan"). Interest shall accrue on the principal amount from the date of
disbursement of the Interfund Loan at the maximum rate per annum allowed by law but the
interest rate will, without further action by the City, be adjusted on January 1 of each year to
reflect the maximum rate allowed that calendar year.
2.02. The Interfund Loan is payable from (i) special assessments levied against
benefited properties; (ii) the proceeds of obligations the City may issue in the future to repay the
Interfund Loan; and (iii) from any other revenues available to the City.
2.03. Principal and interest payments (the "Payments") on the Interfund Loan shall be
made at the times any revenue sources are available to make payments. Payments will be
credited to the City Water Fund from which the Interfund Loan was drawn. All Payments shall
be applied first to accrued interest, and then to unpaid principal of the Interfund Loan.
2.04. The principal sum and all accrued interest payable under the Interfund Loan is
pre-payable in whole or in part at any time by the City without premium or penalty.
2.05. The City may at any time make a determination to forgive the outstanding
principal amount and accrued interest on the Interfund Loan to the extent permissible under law.
2.06. The City 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.
Section 3. Effective Date. This resolution is effective upon approval.
Passed and adopted by the Chanhassen City Council this 22nd day of February, 2010.
ATTEST:
Todd Gerhardt, City Clerk/Manager
Thomas A. Furlong, Mayor
YES
NO
ABSENT
Furlong
Ernst
Litsey
McDonald
Tjomhom
None
None
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