Resolution No. 07-02 EDA - Laserfiche WebLink

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RESOLUTION NO. 07-02 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AUTHORIZING INTERNAL LOAN IN CONNECTION WITH LAKE DRIVE INTERCHANGE AND TAX INCREMENT FINANCING DISTICT NO. 1-11 BE IT RESOLVED by the Board Of Commissioners of the Lino Lakes Economic Development Authority (the "Authority") as follows: Section 1. Background. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF Act") the Authority and City of Lino Lakes ("City") previously established tax increment financing district no. 1-11 (the "TIF District") within Development District No. 1. 1.02. The Authority or City may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available Authority or City funds. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority or City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City currently plans to construct improvements to the I -35W and Lake Drive Interchange within the TIF District (the "Interchange Improvements"), financed by various sources including proceeds of $4,215,000 General Obligation Tax Increment Bonds, Series 2007A (the " llf Bonds"). 1.05. The Authority will also request the City to advance certain other City funds to finance a portion of Interchange Improvements, and the Authority intends to reimburse the City for the funds so advanced as an interfund loan in accordance with the terms of this resolution. Section 2. Repayment of Interfund Loan. 2.01. The Authority will reimburse the City for funds advanced to pay a portion of the cost of the Interchange Improvements in the maximum principal amount of $556,000 together with interest at the rate of 4% per annum (the "Interfund Loan"). Interest accrues on the principal amount from the date of each disbursement of City funds to pay costs of the Interchange Improvements (hereafter, each such date is referred to as an "Accrual Date"). The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2007. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each February 1 and August 1, commencing August 1, 2008 (each a "Payment Date") and continuing through the earlier of the date the Interfund Loan together with interest thereon is paid in full or the date of last receipt of tax increment from the TIF District.