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CITY OF LITTLE CANADA <br />RAMSEY COUNTY <br />STATE OF MINNESOTA <br /> <br /> <br />Council member ______________________ introduced the following resolution and moved its adoption: <br /> <br /> <br />RESOLUTION NO. _____________ <br /> <br />RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF <br />CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING <br />DISTRICT NO. 7-1. <br /> <br /> BE IT RESOLVED by the City Council (the "Council") of the City of Little Canada, Minnesota (the <br />"City"), as follows: <br /> <br />Section 1. Background. <br /> <br /> 1.01. The City has heretofore approved the establishment of Tax Increment Financing District No. 7-1 <br />(the "TIF District") within Development District No. 7 (the "Development District"), and has adopted a Tax <br />Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the <br />Development District. <br /> <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 qualifying <br />improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be <br />financed on a temporary basis from City funds available for such purposes. <br /> <br /> 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan <br />money from the City's general fund or any other fund from which such advances may be legally authorized, in <br />order to finance the Qualified Costs. <br /> <br /> 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the <br />TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the <br />"Interfund Loan"). <br /> <br />Section 2. Terms of Interfund Loan. <br /> <br /> 2.01. The City hereby authorizes the advance of up to $30,000 from the Water & Sewer Capital <br />Replacement Fund #604 or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself <br />for such advances together with interest at the rate stated below. Interest accrues on the principal amount from <br />the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the <br />rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance <br />is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest <br />rates 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 /> <br /> 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid annually on each <br />December 31 (each a "Payment Date"), commencing on the first Payment Date on which the City has Available <br />Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of <br />last receipt of tax increment from the TIF District.