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CITY OF RAMSEY <br />ANOKA COUNTY <br />STATE OF MINNESOTA <br />Council member introduced the following resolution and moved its adoption: <br />RESOLUTION #17-06-133 <br />RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF <br />CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING <br />DISTRICT NO. 16 (PSD BUSINESS PARK A) <br />BE IT RESOLVED by the City Council (the "Council") of the City of Ramsey, Minnesota (the <br />"City"), as follows: <br />Section 1. Backeround. <br />1.01. The City has heretofore approved the establishment of Tax Increment Financing District <br />No. 16 (PSD Business Park A) (the "TIF District") within Development District No. 1 (the "Project"), and <br />has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain <br />improvements within the Project. <br />1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of <br />land/building acquisition, site improvements/preparation, public utilities, streets and sidewalks, other <br />qualifying costs, interest and administrative costs (collectively, the "Qualified Costs"), which costs may <br />be financed on a temporary basis from City funds available for such purposes. <br />1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or <br />loan money from the City's general fund or any other fund from which such advances may be legally <br />authorized, in order to finance the Qualified Costs. <br />1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived <br />from the TIF District in accordance with the terms of this resolution (which terms are referred to <br />collectively as the "Interfund Loan"). <br />Section 2. Terms of Interfund Loan. <br />2.01. The City hereby authorizes the advance of up to $30,000 from the EDA Fund or so much <br />thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with <br />interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. <br />The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under <br />Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, <br />unless the written agreement states that the maximum interest rate will fluctuate as the interest rates <br />specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. <br />The interest rate shall be 4% and will not fluctuate. <br />2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on <br />each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which <br />