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 6 -1 WHEREAS, An interfund loan was authorized by the City Council of Little Canada in association with the creation of TIF District 6 -1 on December 5, 2008 by Resolution # 2008- 12 -30; and WHEREAS, additional funding is needed to maintain a positive fund balance on December 31, 2012 due to accrued interest and other costs, and WHEREAS, it is anticipated the redevelopment program contemplated by TIF District 6 -1 will move ahead in 2013; 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 $400,000 from the general fund or as much thereof as may be paid as Qualified Costs, including accrued interest. 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 270.75 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 on the initial $300,000 shall be revised to five percent (5 %) and the interest rate for the additional $100,000 shall be four percent (4 %). Section 3. Effective Date. This change is retroactive to December 31, 2011. All other terms of the Interfund Loan as stated in Resolution 2008 -12 -303 shall remain the same. Adopted this 28`" day of November, 2012. Mayor ATTEST: City Administrator 2