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CITY OF LITTLE CANADA, MINNESOTA <br /> <br />RESOLUTION NO. 2018-12-______ <br /> <br />APPROVING THE TERMS OF AN INTERNAL LOAN IN CONNECTION WITH <br />THE 93 WEST, LLC DISBURSING AGREEMENT <br /> <br /> <br /> <br /> BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LITTLE CANADA, <br />MINNESOTA ("CITY") AS FOLLOWS: <br /> <br /> Section 1. Background. <br /> <br /> 1.01. The City approved a $200,000 disbursing agreement with 93 West, LLC on July 11, <br />2018. <br /> <br /> 1.02. The City has determined to use an internal loan to pay the developer <br />reimbursements. The General Fund #101 (the “Fund”), which fund is administered by the City and <br />has a balance that is legally available for such purposes. <br /> <br /> 1.03. The City intends to reimburse the Fund for the disbursing agreement <br />reimbursements from the assignment fee charged to the Suite Living developers to transfer our <br />purchase agreement with Cash For Homes to them. Those proceeds will not be realized for three <br />years based on our loan agreement with the Suite Living developers. <br /> <br /> Section 2. Terms of Internal Loan. <br /> <br /> 2.01. The City shall transfer $200,000 from the General Fund #101 to the Economic <br />Development Fund #105 to finance the disbursing agreement reimbursements to 93 West, LLC. <br />Interest on this Internal Loan shall be at four percent per annum (4%). <br /> <br /> 2.02. The principal sum and all accrued interest payable under this Internal Loan are pre- <br />payable in whole or in part at any time by the City without premium or penalty. <br /> <br /> 2.03. This resolution is evidence of an internal borrowing by the City and shall not be <br />deemed to constitute a general obligation of the State of Minnesota or any political subdivision <br />thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political <br />subdivision thereof shall be obligated to pay the principal of or interest on this Internal Loan or <br />other costs, and neither the full faith and credit nor the taxing power of the State of Minnesota or <br />any political subdivision thereof is pledged to the payment of the principal of or interest on this <br />Internal Loan or other costs incident hereto. The City shall have no obligation to pay any principal <br />amount of the Internal Loan or accrued interest thereon, which may remain unpaid after the final <br />Payment Date. <br />