3.5. HRSR 09-23-2002 Item # 3.5.
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River
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Lori Johnson, Finance Director
DATE: September 23, 2002
SUBJECT: TIF 16 Interfund Loan
Tax Increment Financing District No. 16 was established in 1997 to redevelop the property at
the northwest corner of King Avenue and Main Street. The property was purchased with the
intent that the HRA would be reimbursed through TIF funds for any land demolition and
other related costs that were not recaptured through the sale of property to the developer. The
IP current costs to be recaptured,including interest paid to other city funds on the loan to the
HRA,is $360,728.77.
Recent legislative action changed the laws regarding interfund loans. In accordance with those
new requirements, staff is requesting formal approval of this previously understood interfund
loan with the terms and conditions as outlined in the estimated payback schedule attached to
this memo.
Action Requested
The HRA is asked to approve the attached resolution approving Tax Increment Financing
District No. 16 interfund loan.
• s:\eda\tif\tif16\interfund.doc
RESOLUTION 02-
• A RESOLUTION OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
A RESOLUTION APPROVING TAX INCREMENT FINANCING
DISTRICT NO. 16 INTERFUND LOAN
WHEREAS, on January 27, 1997, the Housing and Redevelopment Authority in and for the City
of Elk River approved a tax increment financing plan for Tax Increment Financing
District No. 16; and,
WHEREAS, the Housing and Redevelopment Authority purchased three parcels and provided for
all necessary relocation, removal of substandard structures, and site preparation to
facilitate redevelopment to ultimately increase the city's tax base; and,
WHEREAS, the Housing and Redevelopment Authority, at the time of the adoption of TIF 16,
intended to reimburse itself for all such costs outstanding after the sale of the
property through tax increments generated by the redevelopment project; and,
WHEREAS, the redevelopment project is complete and the estimated tax increment revenue to
• repay this previously authorized loan has been used to calculate an estimated
amortization schedule for this loan.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Elk River that the TIF 16 interfund loan authorized at the time of
adoption of TIF 16 be adopted based on the amortization schedule as attached.
Passed and adopted by the Elk River Housing and Redevelopment Authority this 23`d day of
September,2002.
Larry Toth, Chair
ATTEST:
• Catherine Mehelich, Executive Director
TIF 16 INTERFUND LOAN FROM HRA
Estimated Amortization Schedule
411 Interfund Loan for Net Redevelopment Property Acquisition Costs
Amount of Loan: $360,728.77
Principal Outstanding: $360,728.77
Interest Rate: 0.00%
Interest Start Date: N/A
Term: Based on TIF 16 increment revenue
Principal
Payment Date Payment Principal Interest Outstanding
$360,728.77
December 15, 2000 - - - 360,728.77
July 15, 2001 - - - 360,728.77
December 15, 2001 - - - 360,728.77
July 15, 2002 - - - 360,728.77
December 15, 2002 - - - 360,728.77
July 15, 2003 $ 18,525.10 $ 18,525.10 - 342,203.67
December 15, 2003 18,525.10 18,525.10 - 323,678.57
July 15, 2004 21,100.50 21,100.50 - 302,578.07
December 15, 2004 21,100.50 21,100.50 - 281,477.57
July 15, 2005 21,100.50 21,100.50 - 260,377.07
• December 15, 2005 21,100.50 21,100.50 - 239,276.57
July 15, 2006 21,100.50 21,100.50 218,176.07
December 15, 2006 21,100.50 21,100.50 - 197,075.57
July 15, 2007 21,100.50 21,100.50 - 175,975.07
December 15, 2007 21,100.50 21,100.50 - 154,874.57
July 15, 2008 21,100.50 21,100.50 - 133,774.07
December 15, 2008 21,100.50 21,100.50 - 112,673.57
July 15, 2009 21,100.50 21,100.50 - 91,573.07
December 15, 2009 21,100.50 21,100.50 - 70,472.57
July 15, 2010 21,100.50 21,100.50 - 49,372.07
December 15, 2010 21,100.50 21,100.50 - 28,271.57
July 15, 2011 21,100.50 21,100.50 - 7,171.07
December 15, 2011 7,171.07 7,171.07 - -
$ 360,728.77 $360,728.77 -
This amortization schedule is based on projected future tax increment revenue.
The estimated tax increment revenue was determined using the current tax rate
and net tax capacity of the property.
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