HomeMy WebLinkAbout2020-056 (Interfund Loan and designating use of Tax Increments derived from TIF (Redevelopment) District No. 4 to pay costs of eligible infrastructure improvements in Development District No. 1)RESOLUTION NO. 2020-056
RESOLUTION AUTHORIZING AN INTERFUND LOAN AND
DESIGNATING USE OF TAX INCREMENTS DERIVED FROM TAX
INCREMENT FINANCING (REDEVELOPMENT) DISTRICT NO. 4 TO
PAY COSTS OF ELIGIBLE INFRASTRUCTURE IMPROVEMENTS
WITHIN DEVELOPMENT DISTRICT NO. 1
WHEREAS, the City has established Tax Increment Financing (Redevelopment) District No. 4
(the "TIF District"); and
WHEREAS, City staff has identified that sanitary sewer lift station improvements included in the
2020 Capital Improvement Plan are eligible to be funded from tax increments from the TIF District.
WHEREAS, The City hereby authorizes the advance of up to $300,000 as an Interfund loan from
the TIF District to the Sanitary Sewer Fund. The Sanitary Sewer Fund shall reimburse the TIF District for
such advances together with simple interest at the rate stated below. Unpaid interest shall accrue on the
principal amount from the date of each advance. The interest rate shall be 2% and will not fluctuate.
WHEREAS, Principal, interest and unpaid accrued interest payments on the Interfund Loan shall
be paid annually on each December 31, or on any other dates determined by the Finance Director. The
term of the loan is for up to five years.
WHEREAS, The principal sum and all unpaid accrued interest payable under this Interfund Loan
are pre -payable in whole or in part at any time by the City without premium or penalty. No partial
prepayment shall affect the amount or timing of any other regular payment otherwise required to be made
under this Interfund Loan.
WHEREAS, This Interfund Loan is evidence of an internal borrowing by the City in accordance
with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from the
Sanitary Sewer Fund revenues pledged to the payment hereof under this resolution.
WHEREAS, The City may amend the terms of this Interfund 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.
NOW THEREFORE BE IT RESOLVED, that the City Council hereby authorizes the use of tax
increments from the TIF District for an advance of up to $300,000 to the Sanitary Sewer District to pay
for costs of the sanitary lift station improvements.
Enacted by the City Council of the City of Stillwater, Minnesota this 2nd day of June, 2020.
Ted Kozlowski, ayor
ATTEST:
Beth Wolf, City Cle
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