04-10-2013 Council Agenda - Laserfiche WebLink

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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 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 6-1 . 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 established Tax Increment Financing District No. 6 -1 (the "TIF District ") within Development District No. 6, and has adopted a Tax Increment Financing Plan (the "TIF Plan "). 1.02. The City has determined to pay for certain costs identified in the TIF Plan consisting of land acquisition, site improvements /preparation, utilities, other qualifying improvements, and administrative costs (collectively, the "Qualified Costs "), which costs may 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 "lnterfund Loan "). Section 2. Terms of Interfund Loan. 2.01. The City hereby authorizes the advance of up to $1,388,000 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 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 shall be 4 %. 2.02. Principal and interest ( "Payments ") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date "), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment from the 1'IF District. 2.03. Payments on this Interfund 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 accordance with