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<br />CITY OF RAMSEY, MINNESOTA <br /> <br />RESOLUTION NO. <br /> <br />APPROVING THE TERMS OF $1,140,000 INTERNAL LOAN <br />IN CONNECTION WITH TIF DISTRICT NO 4 <br /> <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, <br />MINNESOTA ("CITyn) AS FOLLOWS: <br /> <br />Section 1. <br /> <br />Background. <br /> <br />1.01. The City has heretofore has established Tax Increment Financing District No.4 (the <br />"TIF District") within Development District No. 1 (the "Development l)istrict"), and has adopted a <br />tax increment fmancing plan for the purpose of financing certain improvements for the Project <br />within the Development District. <br /> <br />1.02. The City has determined to pay for certain costs identified in the TIP Plan consisting <br />of $1,140,000 in land acquisition and right of way acquisition for road purposes for Armstrong <br />Boulevard, its associated interchange, and associated relocation costs (collectively, the "Qualified <br />Costs"), which costs will be financed on a temporary basis from the Public Improvements <br />Revolving Loan fund (PIR). <br /> <br />1.03. Under Minnesota Statutes, Section 469.178, Subdivision 7, the City is authorized to <br />advance or loan money from the City's PIR Fund or any other fund from which such advances may <br />be legally mad~, in order to finance the Qualified Costs. <br /> <br />1.04. The City intends to reimburse itself for the Qualified Costs from tax increments <br />derived from TIP District No.4 in accordance with the terms of this resolution (which terms are <br />referred to collectively as the "TIP Loan"). <br /> <br />Section 2. <br /> <br />Terms ofTIF Loan. <br /> <br />2.01. The City shall repay, to the City fund from which the Qualified Costs are initially paid <br />or advanced, the principal amount Of funds advanced not to exceed $1,140,000, together with <br />interest on the principal amount advanced, accruing from the date of each initial expenditure or <br />advance, at the greatest of (a) the rate specified under Minnesota Statutes, Section 270C.40 or (b) <br />the rate specified under Minnesota Statutes, Section 549.09. The interest rate for eachcalendar <br />year during the term of the TIF Loan will, without further action by the Council, be determined <br />as of each January 1, using the maximum rate under clauses (a) or (b) in effect as of that date. <br /> <br />2.02. Principal and interest ("Payments") shall be paid semi-annually on each August 1 .. <br />and February 1 ("Payment Dates"), commencing on the first Payment Date after receipt of the tax <br />increment from TIF District No.4 and continuing through the earlier of (a) the date the principal <br />and accrued interest of the TIF Loan is paid in full, or (b) the date of last receipt of tax increment <br />from the TIF District. Payments will be made in the amount and only to the extent of Available Tax <br />Increment as hereinafter defined. Payments shall be applied first to accrued interest, and then to <br />unpaid principal. Interest accruing from the date of each expenditure to the first Payment Date shall <br />