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<br />. <br /> <br />. <br /> <br />. <br /> <br />TAX INCREMENT PLEDGE AGREEMENT <br /> <br />This Tax Increment Pledge Agreement (the "Agreement") is <br />dated as of March 1, 1996; is by and between the City of Mounds <br />View, Minnesota (the "City"), and the Mounds View Economic <br />Development Authority (the "EDA"); and provides as follows: <br /> <br />WHEREAS, at the request of the EDA, the City Council has <br />adopted or is expected to adopt separate resolutions (the "Bond <br />Resolutions") awarding the sale of the City's Taxable General <br />Obligation Tax Increment Refunding Bonds, Series 1996A, and the <br />City's General Obligation Tax Increment Refunding Bonds, Series <br />1996B, both issues dated March 1, 1996 (collectively, the <br />"Bonds"), which are to assist in refinancing certain tax <br />increment bonds which were originally issued to finance certain <br />public development costs within certain development areas <br />originally designated by the City as Development District Nos. 1, <br />2 and 3, which Development Districts (and the tax increment <br />districts therein) are now under the governance and control of <br />the ELA and which have been consolidated into the Mounds View <br />Econo~ic Development Project (collectively, the I'Project"); and <br /> <br />KHEREAS, to provide funds sufficient for the timely payment <br />of the debt service on the Bonds, it is necessary for the EDA and <br />the City to enter into this Agreement; and <br /> <br />WHEREAS, each capitalized term which is used but not <br />otherwise defined in this Agreement shall have the meaning given <br />to that term in the Bond Resolutions: <br /> <br />NOW, THEREFORE, in consideration of the covenants and <br />agreements hereof between the City and the EDA, and pursuant to <br />Minnesota Statutes, Section 469.178, Subdivision 2, the City and <br />the EDA hereby agree as follows: <br /> <br />In order to pay the principal of and interest on the <br />Bonds, when due, the EDA hereby pledges to the City, for deposit <br />in thE~ respective Debt Service Accounts established by the Bond <br />Resolutions for the payment of the Bonds, and the EDA shall pay <br />to the City, Available Tax Increments (hereinafter defined) ; <br />provided that the amounts thereof payable hereunder shall not in <br />any year exceed amounts necessary, together with other funds <br />available for such purposes in said Debt Service Accounts, to pay <br />the principal of and interest on the Bonds, when due. As used in <br />this Agreement, "Available Tax Increments" means tax increm~nts <br />that are derived by the EDA from the tax increment financing <br />districts currently existing within the Project and which are <br />available pursuant to applicable law for such purposes; provided <br />that the foregoing pledges and descriptions of Available Tax <br /> <br />311082.1 <br />