10-27-1999 Council Agenda - Laserfiche WebLink

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in each such year, compute the local tax rate to be extended against the captured net tax capacity in the manner provided in Minnesota Statutes, Section 469.177, Subdivision 3, and the tax generated thereby (the "Tax Increments ") and pledged and remitted to the City under the Tax Increment Pledge Agreement shall constitute the Pledged Tax Increments for the year in which it is received. The County Treasurer will remit to the Authority the Tax Increments so received; and the City hereby pledges and appropriates the Pledged Tax Increments paid to the City under the Tax Increment Pledge Agreement to the Debt Service Account, which pledge and appropriation shall continue until all of the Bonds and any additional bonds payable from the Debt Service Account, are paid or discharged. The City acknowledges that the Authority has expressly reserved the right to use the Tax Increments to finance costs set forth in the Plan not financed hereby or to finance costs of other projects to be undertaken from time to time within the Development District in accordance with the Program and the Plan, as they may from time to time be amended. 17. Reservation of Rights. Notwithstanding any provisions herein to the contrary, the City and the Authority reserve the right to terminate, reduce, or apply to other lawful purposes the Tax Increments herein pledged to the payment of the Bonds and interest thereon to the extent and in the manner permitted by law. 18. Segregation of Tax Increments. The Authority has agreed to segregate the Tax Increments derived from the Project in the Debt Service Account until payment of all bonds and interest thereon and reimbursement of the City as provided in paragraph 15 hereof. 19. Future Tax Levies. In the event that it is anticipated that the aggregate of Tax Increments and any other funds appropriated to and then held in the Debt Service Account and the estimated collections of Tax Increments to be received in the next succeeding year will not be sufficient to pay the principal and interest on the Bonds to become due in the first calendar year after such determination and the first six (6) months of the succeeding calendar year, the City Council shall pass a resolution requesting the County Auditor of Ramsey County to levy an ad valorem tax in an amount as is necessary, together with the aforementioned funds then held in the Debt Service Account and said estimated collections of Tax Increments, to pay the principal and interest on the Bonds to become due during said period. 20. No Tax Levy; Coverage Test. The Pledged Tax Increments required to be remitted to the City pursuant to the Tax Increment Pledge Agreement are such that if collected in full they, together with estimated collections of other revenues 1094077.1 Page 130