Resolution - #10-12-272 - 12/14/2010

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Councilmember Wise introduced the following resolution and moved for its adoption: RESOLUTION #10 -12 -272 RESOLUTION APPROVING THE TERMS OF A $1,300,000 INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 1 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, ANOKA COUNTY, STATE OF MINNESOTA, as follows: Section 1. Background. (a) The City has heretofore approved the establishment of Tax Increment Financing District No. 1 ( "TIF District No. 1 ") within Development District No. 1, and has adopted a tax increment financing plan for TIF District No. 1. (b) The City has determined to pay for certain costs (the "Qualified Costs ") identified in the temporary spending plan for Tax Increment Financing Districts No. 1 and 2 within Development District No. 1, consisting in part of costs incurred in connection with the development of land within Tax Increment Financing District No. 14 ( "TIF District No. 14 "). (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 transfer an amount not to exceed $1,300,000 from the tax increment fund established for TIF District No. 1 to the tax increment fund to be established for TIF District No. 14 to be used for the payment of the Qualified Costs 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 $1,300,000 from TIF District No. 1 or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself from TIF District No. 14 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 TIF District No. 14.