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• RESOLUTION NO. 03-_ <br /> A RESOLUTION OF THE ELK RIVER <br /> HOUSING AND REDEVELOPMENT AUTHORITY <br /> A RESOLUTION APPROVING POLICY ON INTERFUND LOANS OR <br /> ADVANCES ("LOANS") FOR TAX INCREMENT FINANCING DISTRICT <br /> ("DISTRICTS") OF THE HRA WITHIN THE CITY OF ELK RIVER <br /> IT IS HEREBY RESOLVED by the Board of Commissioners of the Housing and <br /> Redevelopment Authority in and for the City of Elk River, Minnesota, as follows: <br /> The following policy on interfund loans or advances ("Loans") for tax increment <br /> financing district ("Districts") of the HRA within the City is hereby confirmed and <br /> approved: <br /> (a) The authorized tax increment eligible costs (including without limitation out-of- <br /> pocket administrative expenses) payable from any of the Districts, as their <br /> respective TIF Plans are originally adopted or may be amended, may need to be <br /> financed on a short-term and/or long-term basis via one or more Loans, as may <br /> be determined by the HRA's finance staff from time to time. <br /> • (b) The loans may be advanced by finance staff if and as needed from available <br /> monies in the general or other available fund of the HRA designated by finance <br /> staff. Loans may be structured as draw-down or "line of credit" obligations of <br /> the lending fund(s). <br /> (c) Neither the maximum principal amount of any one Loan nor the aggregate <br /> principal amount of all Loans may exceed the adopted and, if applicable, amended <br /> TIF Plan budget for the applicable District. <br /> (d) The maximum term of any Loan shall not exceed the lesser of the statutory <br /> duration limit of the District or such earlier date as finance staff may specify in <br /> writing. All Loans may be pre-paid, in whole or in part, whether from tax <br /> increment revenue, TIF bond proceeds or other eligible sources. <br /> (e) The outstanding and unpaid principal amount of each Loan shall bear interest at <br /> the rate prescribed by the statute (Minnesota Statues, Section 469.178, <br /> Subdivision 7), which is the greater of the rates specified under Section 270.75 <br /> or 549.09 of the Statutes at the time of a Loan, or any part of it, is first made <br /> subject to the right of finance staff to specify a lower rate (but generally not less <br /> than the then-current average investment return for similar amount and term). <br /> (f) Such Loans within the above guidelines are pre-approved. The Loans need not <br /> take any particular form and may be undocumented, except that finance staff <br /> shall maintain all necessary or applicable data on the Loans. <br /> S/Ed a/H RA/Resol ut/TifLoan <br />