02-05-1996 WS - Laserfiche WebLink

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TAX INCREMENT PLEDGE AGREEMENT • This Tax Increment Pledge Agreement (the "Agreement" ) is dated as of March 1, 1996 ; is by and between the City of Mounds View, Minnesota (the "City" ) , and the Mounds View Economic Development Authority (the "EDA" ) ; and provides as follows : WHEREAS, at the request of the EDA, the City Council has adopted or is expected to adopt separate resolutions (the "Bond Resolutions" ) awarding the sale of the City' s Taxable General Obligation Tax Increment Refunding Bonds, Series 1996A, and the City' s General Obligation Tax Increment Refunding Bonds, Series 1996B, both issues dated March 1, 1996 (collectively, the "Bonds" ) , which are to assist in refinancing certain tax increment bonds which were originally issued to finance certain public development costs within certain development areas originally designated by the City as Development District Nos . 1, 2 and 3 , which Development Districts (and the tax increment districts therein) are now under the governance and control of the EDA and which have been consolidated into the Mounds View Economic Development Project (collectively, the "Project" ) ; and WHEREAS, to provide funds sufficient for the timely payment of the debt service on the Bonds, it is necessary for the EDA and the City to enter into this Agreement; and WHEREAS, each capitalized term which is used but not 4111 otherwise defined in this Agreement shall have the meaning given to that term in the Bond Resolutions : NOW., THEREFORE, in consideration of the covenants and agreements hereof between the City and the EDA, and pursuant to Minnesota Statutes, Section 469 . 178, Subdivision 2 , the City and the EDA hereby agree as follows : 1 . In order to pay the principal of and interest on the Bonds, when due, the EDA hereby pledges to the City,, for deposit in the respective Debt Service Accounts established by the Bond Resolutions for the payment of the Bonds, and the EDA shall pay to the City, Available Tax Increments (hereinafter defined) ; provided that the amounts thereof payable hereunder shall not in any year exceed amounts necessary, together with other funds available for such purposes in said Debt Service Accounts, to pay the principal of and interest on the Bonds, when due . As used in this Agreement, "Available Tax Increments" means tax increments that are derived by the EDA from the tax increment financing districts currently existing within the Project and which are available pursuant to applicable law for such purposes; provided that the foregoing pledges and descriptions of Available Tax 311082.1 4111