Resolution - #10-12-273 - 12/14/2010

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Councilmember Wise introduced the following resolution and moved for its adoption: RESOLUTION #10 -12 -273 RESOLUTION APPROVING THE TERMS OF AN INTERNAL LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 2 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. 2 ( "TIF District No. 2 ") within Development District No. 1, and has adopted a tax increment financing plan for TIF District No. 2. (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 development fees 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 $2,443,202 from the tax increment fund established for TIF District No. 2 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 $2,443,202 from TIF District No. 2 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 other obligations have been paid, generated in the preceding six (6) months with respect to the property within the TIF District No. 14 and remitted to the City by Anoka County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799. Payments on the Interfund Loan are subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment.