06-25-2007 EDA Packet - Laserfiche WebLink

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TAX INCREMENT PLEDGE AGREEMENT by and between CITY OF LINO LAKES MINNESOTA and LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY THIS AGREEMENT is made and entered into on or as of the 15th day of July, 2007, by and between the City of Lino Lakes, Minnesota (the "City"), and Lino Lakes Economic Development Authority (the "EDA"). WHEREAS, the City and EDA have established Development District No. 1 (the "Project") pursuant to Minnesota Statutes, Sections 469.124 to 469.134 and Sections 469.090 to 469.1081 (together, the "Act"); and WHEREAS, within the Project the EDA and City established Tax Increment Financing District Nos. 1-10 ("TIF District No. 1-10") and Tax Increment Financing District No. 1-11 ("Ilk District No. 1-11") (together, the "TIF Districts") pursuant to Minnesota Statutes, Sections 469.174 to 469.1799 (the "TIF Act"); and WHEREAS, in connection with TIF District No. 1-11, the City, EDA and Hartford Development, Inc. dated December 20, 2004, as amended by a First Amendment thereto dated September 13, 2005 (the "Contract"), providing for redevelopment of property within TIF District No. 1-11 and adjacent property within the Project; and WHEREAS, pursuant to the Contract, the City issued its $1,000,000 Taxable Tax Increment Revenue Note, Series 2004 (the " HF Note") to Legacy Holdings-LL, LLC (the "Development Property Owner" under the Contract), which 111-,' Note is secured solely certain tax increments from TIF District No. 1-11; and WHEREAS, pursuant to the Contract and Resolution No. 04-07 approved December 20, 2004, the EDA also provided proceeds of an interfund loan to the Development Property Owner in the amount of $950,000 after adjustment for receipt of certain grant proceeds (the "Contract Interfund Loan") to finance a portion of the cost of acquisition of certain land in TIF District No. I- ll; and WHEREAS, pursuant to the Contract, the City proposes to construct certain improvements to the I-35W and Lake Drive Interchange (the "Interchange Improvements"); and WHEREAS, the City has further determined that the Interchange Improvements, in part, directly benefit the developments within TIF District No. 1-10; and WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statues, Chapter 475, the City has determined to finance construction of the Interchange Improvements in part through the issuance of general obligation bonds of the City designated as the 312429v1 SJB LN140-100