11-28-2012 Council Agenda - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA RESOLUTION NO. AMENDING THE TERMS OF AN INTERNAL LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT 5 -1 WHEREAS, An interfund loan was authorized by the City Council of Little Canada in association with the creation of TIF District 5 -1 on October 10, 2007 by Resolution # 2007 -10 -252; and WHEREAS, the interfund loan was amended on June 8, 2011 by Resolution #2011 -6 -109 increasing the authorized loan amount to $750,000; and WHEREAS, additional funding is needed to maintain a positive fund balance on December 31, 2011 due to amounts billed to St. Jude Medical, Inc at the end of 2011 that were repaid in a timely fashion in early 2012, and NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LITTLE CANADA, MINNESOTA ( "CITY ") THAT THE INTIAL TERMS OF THE INTERFUND LOAN ARE AMENDED AS FOLLOWS: Section 2. Terms of Internal Loan. 2.01. The city hereby authorizes the advance of up to $840,000 from the general fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 27035 or Section 549.09 as of the date or advance is made, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270.75 or Section 549.09 are from time to time adjusted. The interest rate shall be 4 %. Section 3. Effective Date. This change is retroactive to December 31, 2011. All other terms of the Interfund Loan as stated in Resolutions 2007 -10 -252 and 2011 -6 -109 shall remain the same. Adopted this 28th day of November, 2012. Mayor ATTEST: City Administrator 2