06-25-2007 EDA Packet - Laserfiche WebLink

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(5) District account to draw money from in order to make the payment to the City under this Section, and the EDA may retain the balance for any purpose under law. In the event the City is required to advance money from the City general fund in order to pay debt service on the Series 2007A Bonds in accordance with Section 4.02 of the Bond Resolution, on any payment date thereafter on which the EDA has Available Tax Increment in excess of the amount otherwise due on such payment date under this Agreement, the EDA will transfer from the account for the TIF Districts (or either HE District, at the Finance Director's discretion) to the City, as reimbursement of City general funds advanced, Available Tax Increment in the amount of the deficiency, together with interest at the rate of 4% per annum accrued from the date of each City advance of general funds. The City and EDA agree and understand that this clause represents an interfund loan within the meaning of Section 469.178, subdivision 7 of the TIF Act, and that the interest rate is within the maximum interest rate permissible under such statute for calendar year 2007. The pledge of Available Tax Increment under this clause is prior to the TIF Note, but subject to the provisions of Section 3(b) hereof. (6) Except as otherwise provided in Section 3 hereof, Available Tax Increment shall be available (at the EDA's option on a parity, superior or subordinate basis) to pay principal of and interest on both the Series 2007A Bonds and any other obligations issued by the City, EDA or any other public body to finance public redevelopment costs paid or incurred by the EDA in the Project. The EDA reserves the right to release all or any portion of Available Tax Increment from the pledge under this Agreement (including without limitation the release of increment from any specified parcel) to the extent permitted by law; provided that in no event may the EDA reduce the pledge such that Available Tax Increment is reasonably expected to pay less than 20 percent of principal and interest on the Series 2007A Bonds. (7) An executed copy of this Agreement shall be filed with the Manager of Property Records and Taxation of Anoka County pursuant to the requirement contained in Minnesota Statues, Section 469.178, Subdivision 2. 312429v1 SJB LN140-100 4