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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 May 1, 1994; 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 a resolution (the "Bond <br />Resolution") awarding the sale of the city's Taxable General <br />Obligation Tax Increment Refunding Bonds, Series 1994B, dated <br />May 1, 1994 (the "Bonds"), which are to assist in refinancing <br />certain tax increment bonds which were originally issued to <br />finance certain public development costs within certain <br />development areas originally designated by the City as <br />Development District Nos. 1, 2 and 3, which Development Districts <br />(and the tax increment districts therein) are now under the <br />governance and control of the EDA and which are in the process of <br />consolidation into the Mounds View Economic Development Project <br />(collectively, the "Project"); and <br /> <br />WHEREAS, 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 Resolution: <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 />1. 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 Debt Service Account established by the Bond Resolution <br />for the payment of the Bonds, and the EDA shall pay to the City, <br />Available Tax Increments (hereinafter defined); provided that the <br />amounts thereof payable hereunder shall not in any year exceed <br />amounts necessary, together with other funds available for such <br />purposes in said Debt Service Account, to pay the principal of <br />and interest on the Bonds, when due. As used in this Agreement, <br />"Available Tax Increments" means tax increments that are derived <br />by the EDA from the tax increment financing districts currently <br />existing within the Project and which are available pursuant to <br />applicable law for such purposes; provided that the foregoing <br />pledges and descriptions of Available Tax Increments are further <br />made subject and junior in lien to all unpaid pledges or other <br /> <br />262148.1 <br />