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CITY OF LITTLE CANADA RAMSEY COUNTY STATE OF MINNESOTA Council member introduced the following resolution and moved its adoption: RESOLUTION NO. RESOLUTION APPROVING THE TERMS OF $400,000 INTERNAL LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 2-2. BE IT RESOLVED by the City Council (the "Council ") of the City of Little Canada, Minnesota (the "City "), as follows: Section 1. Background. 1.01. The City has heretofore approved the establishment of Tax Increment Financing District No. 2 -2 (the "TIF District ") within Development District No. 2 (the "Project "), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of administrative expenses and site improvements to be constructed for International Union of Painters and Allied Trades Council 82 Building Corporation, Inc., (the "Qualified Costs ") which costs will be financed on a temporary basis from City funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. 1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "TIF Loan "). Section 2. Terms of TIF Loan. 2.01. The City shall repay to the City fund from which the Qualified Costs am initially paid, the principal amount of up to $400,000 together with interest on the principal amount expended accruing from the date of each initial expenditure, at 5.5% per annum. 2.02. Principal and interest ( "Payments ") shall be paid semi - annually on August I, 2003 and each August 1 and February 1 thereafter to and including the earlier of (a) the date the principal and accrued interest of the City Note is paid in full, or (b) the date of last receipt of tax increment from the TIF District ( "Payment Dates ") which Payments will be made in the amount and only to the extent of Available Tax Increment as hereinafter defined. Payments shall be applied first to accrued interest, and then to unpaid principal. 2.03. Payments on this TIF Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, all of the tax increment generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Ramsey County, all in -12-