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<br />(-" <br /> <br />Councilmember Pearson introduced the following resolution and moved for its adoption. <br /> <br />RESOLUTION #06-11-355 <br /> <br />APPROVING THE TERMS OF $1,000,000 INTERNAL LOAN <br />IN CONNECTION WITH TIF DISTRICT NO. 11 <br /> <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RAMSEY, <br />MINNESOTA ("CITY") AS FOLLOWS: <br /> <br />Section 1. <br /> <br />Background. <br /> <br />1.01. The City has heretofore intends to establish Tax Increment Financing District No. <br />11 (the "TIP District") within Development District No.1 (the "Development District"), commonly <br />known as Crest View (the "Project"), and will adopt a tax increment financing plan for the purpose <br />of financing certain improvements for the Project within the Development District. <br /> <br />1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting <br />of $1,000,000 in Administrative and Public Improvement (collectively, the "Qualified Costs"), <br />which costs will be financed on a temporary basis from the Public Improvements Revolving Loan <br />fund (pIR). <br /> <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 general fund or any other fund from which such advances <br />may be legally made, in order to finance the Qualified Costs. <br /> <br />1.04. The City intends to reimburse itself for the Qualified Costs from tax increments <br />derived from TIF District No. 11 in accordance with the terms of this resolution (which terms are <br />referred to collectively as the "TIP Loan"). <br /> <br />Section 2. <br /> <br />Terms ofTIF Loan. <br /> <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 $1,000,000, together with <br />interest on the principal amount advanced, accruing from the date of each initial expenditure or <br />advance, at the greatest of (a) the rate specified under Minnesota Statutes, Section 270CAO or (b) <br />the rate specified under Minnesota Statutes, Section 549.09. The interest rate for each calendar <br />year during the term of the TIF Loan will, without further action by the Council, be determined <br />as of each January 1, using the maximum rate under clauses (a) or (b) in effect as of that date. <br /> <br />2.02. Principal and interest ("Payments") shall be paid semi-annually on each August 1 <br />and February I ("Payment Dates"), commencing on the first Payment Date after receipt of the first <br />tax increment from TIP District No. 11 and continuing through the earlier of (a) the date the <br />principal and accrued interest of the TIP Loan is paid in full, or (b) the date of last receipt of tax <br />increment from the TIP District. Payments will be made in the amount and only to the extent of <br />Available Tax Increment as hereinafter defined. Payments shall be applied first to accrued interest, <br />and then to unpaid principal. Interest accruing from the date of each expenditure to the first <br />