06-25-2007 EDA Packet - Laserfiche WebLink

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General Obligation Tax Increment Bonds, Series 2007A in the original principal amount of $4,215,000 (the ("Series 2007A Bonds"), pursuant to Resolution No. 07-96 approved June 25, 2007 (the "Bond Resolution"); and WHEREAS, pursuant to resolutions of the City and Authority approved June 25, 2007, the City and Authority also propose to finance a portion of the cost of the Interchange Improvements through an additional interfund loan in the maximum principal amount of $556,000 (the "Interchange Interfund Loan"), secured by certain tax increment revenues from HP District No. 1- 11. WHEREAS, the EDA has agreed to pledge tax increment revenues from the TIF Districts to the City for the payment of the principal of and interest on the Series 2007A Bonds as further described in this Agreement; and WHEREAS, pursuant to Minnesota Statues, Section 469.178, Subdivision 2, any agreement to pledge tax increment revenues must be made by written agreement by and between the EDA and the City and must be filed with the Manager of Property Records and Taxation of Anoka County; and NOW, THEREFORE, the City and the EDA mutually agree to the following: (1) The City will sell the Series 2007A Bonds. (2) Net proceeds of the Series 2007A Bonds will be deposited in the Project Fund established under the Bond Resolution, and disbursed by the City to pay or reimburse costs of construction of the Interchange Improvements, including any costs of issuance of the Bonds. (3) The EDA hereby pledges to the payment of the principal and interest on the Series 2007A Bonds, all "Available Tax Increment," which term has the following meaning and is subject to the following conditions: (a) Available Tax Increment includes 95% of the Tax Increment derived from TIF District No. 1-11 and received by the City from Anoka County pursuant to the HP Act in the six-month period before each payment date on the TIF Bonds. The term "Tax Increment" means the portion of real property taxes paid with respect to property in TIF District No. 1-11 and remitted to the EDA pursuant to the TIF Act, provided that the term Tax Increment does not include any amounts retained by or payable to the State auditor under Section 469.177, subd. 11 of the Tax Increment Act, or any amounts described in Section 469.174, subd. 25, clauses (2) through (4) of the TIF Act. (b) 312429v1 SJB LN140-100 The pledge of Available Tax Increment from TIF District No. 1-11 to the Series 2007A Bonds is prior to the pledge of any Tax Increment to the TIF Note, but only to the extent of the "Contract Portion" of the Series 2007A 2