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Councilmember Elvig introduced the following resolution and moved for its adoption: <br />RESOLUTION #11 -03 -069 <br />RESOLUTION APPROVING THE TERMS OF $175,000 <br />INTERNAL LOAN <br />IN CONNECTION WITH TIF DISTRICT NO 14 <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, <br />MINNESOTA ( "CITY ") AS FOLLOWS: <br />Section 1. Background. <br />1.01. The City has heretofore has established Tax Increment Financing District No.14 <br />(the "TIF District ") within Development District No. 1 (the "Development District "), and has <br />adopted a tax increment financing plan for the purpose of financing certain improvements for the <br />Project within the Development District. <br />1.02. The City has determined to pay for certain costs (the "Qualified Costs ") identified in <br />the TIF Plan consisting of $175,000 in land improvement costs incurred in connection with the <br />development of land within the TIF District, which costs will be financed on a temporary basis from <br />the Public Improvements Revolving Loan fund (PIR). <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 made, in order to finance the Qualified Costs. <br />1.04. The City intends to reimburse itself for the Qualified Costs from tax increments <br />derived from TIF District No. 14 in accordance with the terms of this resolution (which terms are <br />referred to collectively as the "TIF Loan"). <br />Section 2. Terms of TIF Loan. <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 $175,000, together with interest <br />on the principal amount advanced, accruing from the date of each initial expenditure or advance, at <br />the greatest of (a) the rate specified under Minnesota Statutes, Section 270C.40 or (b) the rate <br />specified under Minnesota Statutes, Section 549.09 as of the date the loan or advance is <br />authorized, unless the written agreement states that the maximum interest rate will fluctuate as <br />the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from <br />time to time adjusted. The interest rate shall be 4% and will not fluctuate. <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. 14 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 />