HomeMy WebLinkAbout05-13816200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 05-138
A RESOLUTION AUTHORIZING THE TERMS OF INTERNAL LOANS
IN CONNECTION WITH TIF DISTRICTS IN DEVELOPMENT DISTRICT #2
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
Motion By: Fleming Second By: LeMair
In 1993 the City authorized payment for street and utility improvements associated with
Waterfront Passage Business Office Park, identified as Development Distdct ~2,
consisting of $1,146,000.00 (collectively, the "Qualified Costs"), which costs will be
partially financed on a temporary basis from the following funds for such purposes:
Enterprise Fund: $142,000.00
Trunk Reserve Fund: $213,000.00
Under Minnesota Statutes, Section 469.178, Subdivision 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 made, in order to finance the Qualified Costs.
The initial fund transfers occurred on November 12, 1993 as part of the original
financing plan that included the allocation of bonds in the amount of $791,000.
The City originally anticipated the repayment of these funds only if sufficient tax
increment was generated.
The City intends to reimburse itself for the Qualified Costs from tax increments dedved
from the following TIF Districts # (which terms are referred to collectively as the "TIF
Loan"):
TIF ~-1, ~-2, ~-3, #2-5, ~-6, ~-7, #2-8
The City's planned development of Waterfront Passage Business Office Park was
successfully completed and all associated TIF districts have sufficient resources to
repay the initial allocation of funds.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City shall repay to the City funds from which the Qualified Costs were initially paid, the principal
amount of $355,000 together with interest calculated at 6% on the principal amount expended
accruing from the date of 11/13/93.
3. Loan re-payment shall be scheduled for December 31, 2006 to coincide with the final payment of the
business office park general obligation bonds of 1993.
4. Payments on this TIF Loan are payable solely from "Available Tax Increment" and payments are
subordinate to any outstanding bonds.
R:\RESOi...'.~TI\FiNARES\05-t38 TfF loan.doc www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
5. The TIF Loan set forth in the recitals is evidence of an internal borrowing by the City in accordance
with Minnesota Statutes, Section 469.178, subdivision 7, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution.
6. The City may amend the terms of this TIF Loan at any time by resolution of the City Council, including
a determination to forgive the outstanding principal amount and accrued interest to the extent
permissible under law.
PASSED AND ADOPTED THIS 1st DAY OF AUGUST, 2005.
YES NO
Haugen X Hauc, len
Flemin~l X Flemin~l
LeMair X LeMair
Petersen Absent Petersen
Zieska X Zieska
Frank Boyles, City~
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