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POLICY FOR THE REIMBURSEMENT OF CITY FUNDS WITH LAND PROCEEDS AND <br /> TAX INCREMENT FOR TIF AREA#14 (COR) <br /> SECTION I: PURPOSE <br /> • To reimburse city for initial land purchase of the COR area in 2009 <br /> • To reimburse city for two internal loans that were established to <br /> purchase land —Water Fund and Sewer Fund. Initial principal of each <br /> loan was $2,334,394 with a 2% interest rate <br /> • To reimburse city for all other expenses incurred in the COR area: <br /> Public Improvements, Parking Ramp, Transit Station, Roads (Including <br /> Armstrong Interchange and County Road #116), Administration and <br /> Marketing <br /> SECTION II: POLICY STATEMENT <br /> It is the intent of the City of Ramsey to recoup all of the city funds that have been <br /> expended to purchase and develop the COR area. The city will use land proceeds <br /> from the COR area and future tax increment from Tax Increment District No. 14 to <br /> pay itself back. <br /> SECTION III: PROCESS <br /> • Distribution of land Proceeds. The following will be administered <br /> sequentially as proceeds are received: <br /> 1. When land proceeds are received from the sale of lots in the <br /> COR area, the proceeds will first be applied against the <br /> reduction of the outstanding internal loans of the water and <br /> sewer funds and their respective interest rates. <br /> 2. After the Water and Sewer loans have been paid in full, land <br /> proceeds generated in the COR area will next be applied <br />