HomeMy WebLinkAboutResolution No. 313-08 •
RESOLUTION
WHEREAS, the 2001 Tax Bill enacted by the State legislature included a number of
changes to Tax Increment Financing (TIF) law (Laws of Minnesota for 2001, First Special
Session, Chapter 5, Article 15). Among them was a requirement (effective 7/31/01) for the City
Council to approve an authorizing resolution before any monies are "transferred, advanced or
spent, whichever is earliest" from other available City funds to pay for development or
redevelopment expenses that may later become eligible for reimbursement through tax increment
revenues; and,
WHEREAS, the City has, on several occasions, used its internal monies to pay for upfront
development costs of a tax increment-eligible development on either a temporary or long term
basis. When the amounts needed are small enough to be funded internally, this method is more
efficient and less expensive than a public bond offering. In some cases, such as the recently
approved affordable housing assistance, the City is initially unsure of how much of the
assistance will actually be used so determining an upfront bond size would be difficult; and,
WHEREAS, additionally, the City often utilizes its own monies for preliminary costs such as
consulting, appraisals or other costs the City incurs before the City gets a permanent TTF bond
&sued on a large project. If any such preliminary costs are to be eligible for subsequent TIP
'INTeimbursement, the City now needs to have an authorizing resolution in place prior to expenditures
being made. Those resolutions must include terms of the loan or advance, including at a
minimum, the principal amount, the interest rate and the maximum term; and,
WHEREAS, a listing of TIF projects requiring an interfund loan transfer, and their estimated
terms, is attached and identified as Exhibit A. Funding for these advances is recommended to be
the 1% Flood Control Sales Tax Fund.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Rochester, Minnesota, that the City authorize advances from other funds for the previously-
approved tax increment projects as listed on Exhibit A.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS he 4,h DAY OF U 2008.
PRESIDENT OF SAID COMMON COUNCIL
COTTEST: gWPUWIV CVERW/
APPROVED THIS /7k) DAY OF , 2008.
T•
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
Res051Reso1u.T1F Adv.08
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City of Rochester
Interfund Loans and Advances Authority Needed
Approved Projects Currently Underway as of August 31,2003
Advances to come from the 1%Flood Control Sales Tax Fund
TIF TIF TIF Maximum Maximum Interest
District# Fund Proi# Project Name Purpose Advance Term Rate
20 533 2729 Rose Harbor 2nd affordable housing $985,000 25 years
21 534 2730 Valley Side Est 2nd affordable housing 620,000 25 years 6.50%
22 535 2731 Kingsbury Hills 2nd affordable housing 635,000 25 years 6.50%
23 536 2735 Manor Woods W Ctrl affordable housing 300,000 25 years 6.50%
24 637 2737 Manor Woods Lake 6th affordable housing 395,000 25 years 6.50%
25 ✓ 538 2738 Rose Harbor 3rd affordable housing 545,000 25 years 6.50%
26 ,; 539 2739 Rose Harbor Estates affordable housing 495,000 25 years 6.50%
27 540 2740 Kingsbury Hills 3rd affordable housing 260,000 25 years 6.50%
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