Agenda - Council - 12/14/2010 - Laserfiche WebLink

Home

Section 1. Background. RESOLUTION NO. RESOLUTION APPROVING THE TERMS OF UP TO A 5500,000 INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 14 BE IT RESOLVED by the City Council (the "Council ") of the City of Ramsey, Minnesota (the "City "), as follows: (a) The City has heretofore approved the establishment of Tax Increment Financing District No. 14 (the "TIF District ") within Development District No. 1, and has adopted a tax increment financing plan for the TIF District (the "TIF Plan "). (b) The City has determined to pay for certain costs (the "Qualified Costs ") identified in the TIF Plan consisting of administrative costs incurred in connection with the establishment of the TIF District and development of land within the TIF District, which costs will be financed on a temporary basis from City funds available for such purposes. (c) Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. (d) The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan "). Section 2. Terms of Interfund Loan. (a) The City hereby authorizes the advance of up to $500,000 from the City's Tax Increment Financing District No. 2 or the City's General Fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. (b) Principal and interest on the Interfund Loan shall be paid semi - annually on each February 1 and August 1 (each a "Payment Date ") commencing with the Payment Date on which the City has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the last receipt of tax increment from the TIF District. (c) Payments on the Interfund Loan are payable solely from "Available Tax Increments" which shall mean, on each Payment Date, all of the tax increment available after other obligations have been paid, generated in the preceding six (6) months with respect to the 3026610v2