06-24-2003 Council Agenda - Laserfiche WebLink

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CITY OF , MINNESOTA RESOLUTION NO. APPROVING THE TERMS OF $ INTERNAL LOAN IN CONNECTION WITH TIF DISTRICT NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MINNESOTA ( "CITY ") AS FOLLOWS: Section 1. Background. 1.01. The City has heretofore approved the establishment of [or intends to establish] Tax Increment Financing District No. (the "TIF District ") within (the "Project "), and has adopted [or will adopt] 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 (collectively, the "Qualified Costs "), which costs will be financed on a temporary basis from [identify fund to be borrowed from; or insert: City funds available for such purposes]. 1.03. Under Minnesota Statutes, Section 469.178, Subdivision 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 [or name other districts that will be source of repayment] 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 are initially paid, the principal amount of $ together with interest on the principal amount expended accruing from the date of each initial expenditure, at the greatest of (a) the rate specified under Minnesota Statutes, Section 270.75, or (c) the rate specified under Minnesota Statutes, Section 549.09. The interest rate for each calendar year during the term of the TIF Loan will be determined as of each January 1, using the maximum rate under clauses (a) or (b) in effect as of that date. 2.02. Principal and interest ( "Payments ") shall be paid semi - annually on August 1, 20 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 Distnct ( "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. Interest accruing from the date of each expenditure to 5J13- 205969v1 BU400 -17