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<br />RESOLUTION NO. 04-07 <br />LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY <br /> <br />AUTHORIZING INTERNAL LOAN IN CONNECTION WITH <br />TAX INCREMENT FINANCING DISTICT NO. 1-11 <br /> <br /> <br /> BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE LINO LAKES <br />ECONOMIC DEVELOPMENT AUTHORITY (the “Authority”) AS FOLLOWS: <br /> <br /> Section 1. Background. <br /> <br /> 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the “TIF Act”) the <br />Authority and City of Lino Lakes (“City”) previously established tax increment financing district <br />no. 1-11 (the “TIF District”) within Development District No.1. <br /> <br /> 1.02. The Authority may incur certain costs related to the TIF District, which costs may be <br />financed on a temporary basis from available Authority or City funds. <br /> <br /> 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority or City is <br />authorized to advance or loan money from any fund from which such advances may be legally <br />made in order to finance expenditures that are eligible to be paid with tax increments under the TIF <br />Act. <br /> <br /> 1.04. The Authority has approved a Contract for Private Development (the “Contract”) <br />between the Authority, the City and Legacy Development, Inc. (“Developer”) under which the <br />Authority will provide Legacy Holdings/Lino Lakes LL, LLC (the “Development Property Owner”) <br />proceeds from an interfund loan fund from the City to finance the cost of acquisition of certain land <br />within the TIF District. <br /> <br /> 1.05. City will make available to the Authority the proceeds from sale of the City Parcel, (as <br />defined in the Contract) in the amount of $1,700,000 (or such lesser amount required if the City <br />receives Met Council grant proceeds as described in Section 3.5(c) of the Contract) and the <br />Authority will advance such funds to the Development Property Owner under the terms and <br />conditions described in Section 3.5 of the Contract. <br /> <br /> 1.06. The Authority intends to reimburse the City for the funds so advanced as an interfund <br />loan in accordance with the terms of this resolution. <br /> <br /> Section 2. Repayment of Interfund Loan. <br /> <br />2.01. The Authority will reimburse the City for funds advanced under Section 3.5 of the <br />Contract the in the principal amount of $1,700,000 (or such lesser amount advanced, in accordance <br />with Section 3.5(c) of the Contract) together with interest at the rate of 4% per annum (the <br />“Interfund Loan”). Interest accrues on the principal amount from the date of disbursement of funds <br />from the Escrow Agreement as described in Section 3.5 of the Contract (hereafter, the “Accrual <br />SJB-256912v1 <br />1 <br />LN140-80 <br /> <br />