Resolution - #12-09-144 - 09/25/2012

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Councilmember Elvig introduced the following resolution and moved for its adoption: Section 1. Background. RESOLUTION #12 -09 -144 APPROVING THE TERMS OF $2,763,000 INTERNAL LOAN IN CONNECTION WITH TIF DISTRICT NO. 14 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, MINNESOTA ( "CITY ") AS FOLLOWS: 1.01. The City has heretofore has established Tax Increment Financing District No. 14 (the "TIF District ") within Development District No. 1 (the "Development District "), and has adopted a tax increment financing plan for the purpose of financing certain improvements for the Project within the Development District. 1.02. Included in the TIF Plan is an estimated cost of eligible improvements for Land/Building Acquisition, Special Assessments, Public Utilities, Site Improvements/Preparation Costs, Northstar Transit Station and related Infrastructure, and other Eligible Improvements at an amount of $61,825,343(TIF plan adopted December 14, 2010 Administrattive Amendment Juanuary 25, 2011) that are eligible to be reimbursed from tax increments of the TIF District (14). 1.03. The City has determined to pay for certain costs identified in the TIF Plan consisting of a not -to exceed amount of $2,763,000 in construction and right -of way costs related to the construction of Armstrong /Sunwood Drive Realignment(City Project Number 12 -20) (collectively, the "Qualified Costs "). Costs will be financed on a temporary basis from the respective loaning funds and estimated amount contributed would be: Equipment Revolving Fund (or HRA if funds need to be loaned to the HRA for property acquisition) $1,317,000; Storm Drainage Fund: $365,000; Water Utility Fund: $348,000; Sanitary Sewer Fund: $21,000; EDA: $600,000 and Street Lighting Utility Fund: $112,000 for a grant total of $2,763,000. 1.04. Under Minnesota Statutes, Section 469.178, Subdivision 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. 1.05. The City intends to reimburse itself for the Qualified Costs from tax increments derived from TIF District No. 14 in accordance with the terms of this resolution (which terms are referred to collectively as the "TIF Loan "). Section 2. Terms of Interfund Loan. 2.01 The City hereby authorizes the advance of up to $2,763,000 from the respective funds outlined in Section 1.03 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