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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. 7-2. <br /> <br /> BE IT RESOLVED by the City Council (the "Council") of the City of Little Canada, Minnesota <br />(the "City"), as follows: <br /> <br />Section 1. Background. <br /> <br /> 1.01. The City has heretofore approved the establishment of Tax Increment Financing District <br />No. 7-2 (the "TIF District") within Development District No. 7 (the "Development District"), and has <br />adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain <br />improvements within the 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, public utilities, other qualifying improvements, interest and administrative costs <br />(collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds <br />available for such purposes. <br /> <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 /> <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 /> <br />Section 2. Terms of Interfund Loan. <br /> <br /> 2.01. The City hereby authorizes the advance of up to $___________ from the ____________ <br />fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such <br />advances together with interest at the rate stated below. Interest accrues on the principal amount from the <br />date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of <br />the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or <br />advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as <br />the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to <br />time adjusted. 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