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<br />Councilmember Pearson introduced the following resolution and moved for its adoption. <br /> <br />RESOLUTION #06-11-357 <br /> <br />APPROVING THE TERMS OF $5,400,000 INTERNAL LOAN <br />IN CONNECTION WITH TIF DISTRICT NO. 13 <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 />13 (the "TIF District") within Development District No. 1 (the "Development District"), <br />commonly known as Ramsey Crossings (the "Project"), and will adopt a tax increment financing <br />plan for the purpose of financing certain improvements for the Project within the Development <br />District. <br /> <br />1.02. The City has determined to pay for certain costs identified in the TIF Plan <br />consisting of $5,400,000 in Administrative and Public Improvements (collectively, the <br />"Qualified Costs"), which costs will be financed on a temporary basis from the Public <br />Improvements Revolving Loan fund (PIR). <br /> <br />1.03. Under Minnesota Statutes, Section 469.178, Subdivision 7, the City is authorized <br />to advance or loan money from the City's general fund or any other fund from which such <br />advances 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. 13 in accordance with the terms oftms resolution (which terms are <br />referred to collectively as the "TIF 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 <br />paid or advanced, the principal amount of funds advanced not to exceed $5,400,000, together <br />with interest on the principal amount advanced, accruing from the date of each initial <br />expenditure or advance, at the greatest of (a) the rate specified under Minnesota Statutes, Section <br />270CAO or (b) the rate specified under Minnesota Statutes, Section 549.09. The interest rate for <br />each calendar year during the term of the TIF Loan will, without further action by the Council, <br />be determined as of each January I, using the maximum rate under clauses (a) or (b) in effect as <br />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 <br />first tax increment from TIF District No. 13 and continuing through the earlier of (a) the date the <br />principal and accrued interest of the TIF Loan is paid in full, or (b) the date of last receipt of tax <br />increment from the TIF 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 <br />