Loading...
2017-53 CITY OF CHANHASSEN COUNTIES OF CARVER AND HENNEPIN STATE OF MINNESOTA DATE: July 24, 2017 RESOLUTION NO: 2017-53___ MOTION BY: McDonald SECONDED BY: Tjornhom RESOLUTION APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 10, CALLING FOR A PUBLIC HEARING TO ESTABLISH TAX INCREMENT FINANCING DISTRICT NO. 11, AND AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 11. BE IT RESOLVED by the City Council (the "Council") for the City of Chanhassen, Minnesota (the "City"), as follows: WHEREAS, on April 12, 2010, the City of Chanhassen (the "City") created its Tax Increment Financing District No. 10 ("TIF District No. 10") within its Downtown Chanhassen Redevelopment Project Area (the "Project"); and WHEREAS, as of the date hereof all bonds and obligations to which tax increment from TIF District No. 10 have been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS, the City desires by this resolution to cause the decertification of TIF District No. 10 after which all property taxes generated by property within the District will be distributed in the same manner as all other property taxes; and WHEREAS, the Council intends to establish Tax Increment Financing District No. 11 ("TIF District No. 11") within the Project, and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. WHEREAS, the City has determined to pay for certain costs identified in the TIF Plan consisting of land/building acquisition, site improvements/preparation, public utilities, streets and sidewalks, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. WHEREAS, the City 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 "Interfund Loan"). NOW THEREFORE, BE IT RESOLVED by the City Council of the City that: Section 1. Decertification. The City's staff shall take such action as is necessary to cause the County Auditor of Carver County to decertify TIF District No. 10 as a tax increment district and to no longer remit tax increment from the TIF District No. 10 to the City. Section 2. Public Hearin. This Council shall meet on September 11,2017,at approximately 7:00 P.M., to hold a public hearing on the proposed adoption of a Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area (the "Redevelopment Plan Modification"), the proposed establishment of TIF District No. 11 (a redevelopment district), and the proposed adoption of a TIF Plan therefor(the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"), all pursuant to and in accordance with Minnesota Statutes, Sections 469.090 to 469.1082, and Sections 469.174 to 469.1794, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and Section 3. Notice of Public Hearing Filing of Plans. City staff is authorized and directed to work with the Chanhassen Economic Development Authority (the "EDA") and Ehlers & Associates, Inc., to prepare the Plans and to forward documents to the appropriate taxing jurisdictions including Carver County and Independent School District No. 112. The City Manager is authorized and directed to cause notice of the hearing,together with an appropriate map as required by law,to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to September 11, 2017, and to place a copy of the Plans on file in the EDA Executive Director's office at City Hall and to make such copy available for inspection by the public. Section 4. Interfund Loan. The City hereby authorizes the advance of up to $50,000 from Fund No. 300 (Closed Bond Fund) or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself 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. 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 City Manager,through the date of last receipt of tax increment from the TIF District. 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 City Manager, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Carver County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, 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. 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. This Interfund Loan is evidence of an internal borrowing by the City 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. 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 City 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. The City may amend the terms of this Interfund Loan at any time by resolution of the Council, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Dated: July 24, 2017 Adopted: i Denny Laufe urger, Mayor 61 ATTEST: Todd Gerhardt, City Manager YES NO ABSENT Laufenburger Ryan None McDonald Campion Tjornhom