HomeMy WebLinkAbout4.F.3. Interfund Loan Agreement for Purchase of MnDOT Parcels, Rec No. 7561 Consent Business 4. F. 3.
SHAKOPEE
TO: Mayor and City Council
FROM: Kris Wilson, Acting City Administrator
DATE: 03/17/2015
SUBJECT: Interfund Loan Agreement for Purchase of MnDOT Parcels, Res. #7561
(C)
Action Sought
The Council is asked to offer Resolution No. 7561, a resolution approving an
Interfund Loan and transfer from the Equipment Fund to the Economic
Development Authority, and move its adoption.
Background
Both the City Council and the EDA have previously acted to authorize the purchase
of land from MnDOT near the intersection of County Rd. 69 & Hwy 169. Interim
Finance Director Jean McGann has prepared the attached resolution to formalize the
necessary interfund loan from the City's Equipment Fund to the EDA to make this
purchase. The loan is structured to be repaid in one lump sum at the time the
property is sold or developed. As the source of the funds is one of the City's
internal service funds, and not an enterprise fund, a no interest loan is proposed.
Requested Action
The Council is asked to offer Resolution No. 7561, a resolution approving
an Interfund Loan and transfer from the Equipment Fund to the Economic
Development Authority, and move its adoption.
Attachments: Resolution No. 7561
RESOLUTION NO. 7561
A RESOLUTION APPROVING AN INTERFUND LOAN AND TRANSFER
FROM THE EQUIPMENT FUND TO THE ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS,on January 6, 2015 the City Council authorized the acquisition of parcels 43, 37, 16,
21-24 and 27-28 located in the northeast corner of the intersection of Trunk Highway 169 and County
Road 69 from the Minnesota Department of Transportation (MnDOT) and;
WHEREAS,on February 17, 2015 the Economic Development Authority authorized the
acquisition of parcels 43,37, 16,21-24 and 27-28 located in the northeast corner of the intersection of
Trunk Highway 169 and County Road 69 from the Minnesota Department of Transportation (MnDOT)
and;
WHEREAS,the Equipment Fund has adequate unreserved funds available to loan to the
Economic Development Authority for the purchase of these parcels and;
WHEREAS,the Economic Development Authority will provide for repayment of this debt at such
time that the parcels are sold or developed and;
WHEREAS,the interest rate on the Interfund loan is 0%with principal to be repaid at the time
the parcels are sold or developed.
NOW,THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY
OF SHAKOPEE, MINNESOTA,that an Interfund loan and transfer from the Equipment Fund to the
Economic Development Fund in the amount of$937,849 is hereby approved.
NOW, THEREFORE, BE IT RESOLVED FURTHER RESOLVED BY THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF SHAKOPEE, MINNESOTA as additional funds are expended for the purpose
of preparing a request for proposal for this property and/or readying this property for sale an additional
Interfund loan and transfer from the Equipment fund to the Economic Development Fund will be
approved.
Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota,
held this 17th day of March, 2015.
Mayor of the City of Shakopee
ATTEST:
Deputy City Clerk