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RES 17-24City of Elk River Ver City Council Resolution 17-94 A Resolution of the City Council of the City of Elk River calling for a public hearing on a modification to the development program for Development District No. I, the establishment of a Tax Increment Financing District No. 24, and the adoption of a Tax Increment Financing Plan therefor WHEREAS, the City of Elk River, Minnesota (the "City") has received a request to provide tax increment financing assistance for certain public costs of a redevelopment project to be acquired, renovated and constructed in the City. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. Public Hearin. This Council shall meet on July 3, 2017, at approximately 6:30 p.m., or as soon thereafter as notice may be given in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the "TIF Act"), as determined by the City's Economic Development Director, to hold a public hearing on a proposed modification to the Development Program for Development District No. 1 (the "Modification"), proposed establishment of a proposed Tax Increment Financing (Redevelopment) District No. 24 (Beaudry Redevelopment Project) (the "TIF District"), and the proposed adoption of a Tax Increment Financing Plan for the TIF District (the "TIF Plan"), pursuant to Minnesota Statutes, Sections 469.090 to 469.1082, as amended, and the TIF Act. 2. Notice of Public Hearing. Filing of Plans. City staff and consultants are directed and authorized to prepare the Modification and TIF Plan and to forward such documents to the appropriate taxing jurisdictions, including Sherburne County and Independent School District No. 728 (Elk River). The City Clerk is authorized, at the direction of the City's Economic Development Director, to cause notice of the hearing in substantially the form attached as Exhibit A hereto, together with an appropriate map as required by law, to be published at least once in the official newspaper of the City not less than 10, not more than 30, days prior to the public hearing, and to place a copy of the Modification and TIF Plan on file in the City Clerk's office at City Hall and to make such copy available for inspection by the public. 3. Repayment of Interfund Loan. 3.01. Under Section 469.178, Subdivision 7 of the TIF Act, the City 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. P 0 W[A`E I I t NA I UR 3.02. The City has determined that it may pay for administrative costs associated with the establishment of the TIF District and certain other costs incurred in connection with the proposed redevelopment of the TIF District, including but not limited to land acquisition, demolition and site preparation costs (the "Costs Advances') on a temporary basis from the General Fund, or any other fund from which such advances, from time to time, may be legally made (the "Fund") as an interfund loan pursuant to Minnesota Statutes, Section 469.178, Subd. 7. 3.03 The City will, subject to a determination by the City Finance Director, reimburse itself for the Costs Advances (including without limitation (i) out-of-pocket administrative costs incurred prior to the establishment of the TIF District in an amount not to exceed $80,000, subject to the limitations of the TIF Act, and (ii) certain costs incurred in connection with land and building acquisition, demolition and site preparation costs in an amount not to exceed $800,000) in an aggregate amount not to exceed the adopted and, if applicable, amended Tax Increment Financing Plan budget for the TIF District (the "Interfund Loan"), together with interest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178, Subdivision 7), which is the greater of the rates specified under Sections 270C.40 or 549.09 at the time an Interfund Loan, or any part of it, is first made, subject to the right of the City Finance Director to specify a lower rate. 3.04. Principal and interest ("Paytnents'� on the Interfund Loan shall be paid semi- annually on each February 1 and August 1 (each a "Payment Date"), commencing on the first Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the TIF District. 3.05. Payments on the Interfund Loan will be made solely from the tax increment from the TIF District received by the City from Sherburne County in the 6 -month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledge to the payment of any obligation (the "Available Tax Increment"). Payments shall be applied first to accrued interest, and then to unpaid principal, unless otherwise specified by the City Finance Director. Interest accruing from the Loan Date will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the City Finance Director. 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 a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment 3.06. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the City without premium or penalty. 3.07. This resolution is evidence of an internal borrowing by the City in accordance with Section 469.178, subdivision 7 of the TIF 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 City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or rarEaEI er NATURE interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment 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. 3.08. The City may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan, in whole or in part, on any date from time to time, to the extent permissible under law. 3.09. 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; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Passed and adopted this 15'h day of May, 2017 AT Tina Allard, Ctty Cle k J n J. 16ietz,l\B yor IO11RII IY INATUREI