2010-02
CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY
CITY OF CHANHASSEN
COUNTIES OF CARVER AND HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO. 2010-02
A RESOLUTION AUTHORIZING INTERFUND LOAN FOR
ADV ANCE OF CERTAIN COSTS
IN CONNECTION WITH CHANHASSEN TRANSIT STATION
TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED By the Board Of Commissioners of the Chanhassen Economic
Development Authority (the "Authority") as follows:
Section 1.
Background.
1.01. The Authority intends to establish the Chanhassen Transit Station Tax Increment
Financing District, Tax Increment Financing District No. 10 (the "TIP District") within the
Downtown Chanhassen Redevelopment Project Area (the "Project") all pursuant to Minnesota
Statutes, Sections 469.174 to 469.1799 (the "TIP Act"), and Sections 469.090 to 469.1082 (the
"ED A Act").
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 TIP 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 intends to advance funds from various sources to pay
administrative and other costs related to the TIP District, and now proposes to designate such
advances 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 may advance from time to time and from any available funds,
moneys to pay administrative and other costs related to the TIP District, in a principal amount up
to $418,000. The Authority will reimburse itself for such advances together with interest at the
rate of 4% per annum (the "Interfund Loan"). Interest accrues on the principal amount from the
date of each advance. The interest rate is no more than the greater of the rate specified under
Minnesota Statutes, Section 270CAO and Section 549.09, both in effect for calendar year 2010.
The interest rate will, without further action by the Authority, be adjusted on January 1 of each
year to reflect the greater of the rate specified under Minnesota Statutes, Section 270CAO and
Section 549.09 in effect for that calendar year.
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
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 Carver
County in the six-month period before any Payment Date and not otherwise pledged to other
bonds, notes or obligations. Payments shall be applied first to accrued interest, and then to
unpaid principal.
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 nF 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 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 upon approval.
Adopted this 22nd day of February, 2010.
A3 {J) ~ ,JJj
lL- At:
T d Gerhardt, Executive Director
YES
Furlong
Ernst
McDonald
Tjornhom
NO
ABSENT
Litsey
2