2018-08-27 EDA Packet - Laserfiche WebLink

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lloB :ui:mi fors ......................................................................................................................................................................................................... Issuing General Obligation Bonds The EDA may issue General Obligationanticipation e from sourcer any purposestatute. The City must, by ordinance and by two thirdsv , ' e specific consent to pledge the 's full faith and credit to the GO Bonds. The EDA must comply with the provisions of Minnesota Statutesis indebtedness statute. electionAn issue GO Bonds backed by theCity'scredit. Issuing Revenue bonds may be issued by ` f the EDA. The revenues generated by the projects to be financed and/or other revenues y be pledgedto the payment of the revenue bonds. Bonds may alsosecured by a mortgage property.certain EDA The EDA can pledgeits full faith and credit and limitedtaxing power the payment of revenue bonds,but it maye the full faith and credit of the . Because the it strength of an EDA is usually very limited, ily of a revenue bond offering s highly dependent upon the projecte financed. For example, if an EDA were to issue v to finance the constructionit e leased to a manufacturing firm, the interest rats of the revenue bond would depend primarily on the creditworthiness of the manufacturer. For weaker projects , issuance feasible. Advances As noted earlier in this handbook, there is independent authority for an EDA to make a loan. EDA y its general fiind money or credit without ` s . The advances must repaidbe sale or lease of land. If the money advancedor the development projectredevelopment s general obligation , then the interest rate on the advances must not be lower than the average arurual interest rate on the EDAs general obligations that are outstandingat the time the advances Advances made to acquire land and to constructfacilities or recreational purposes, do not need to be reimbursed(Minn. Stat. § 469.106). Secondary Market An EDA may sell, at private or public saie, at the price or prices determined by the EDA, any , lease, sublease, 1 s , or other instniment or obligation evidencing or securing a loan made for the purpose of economic development,job creation, redevelopment, or communityt ti y a public agency to a business, for-profit or nonprofit organization, or an individual (Minn. Stat. § 469.101, revolving choose to sell a loan on the secondary market if it needs to recapitalizeorder to finance additional projects. 3