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EDA RESOLUTION 19 -EDA -323 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) BE IT RESOLVED by the Board of Commissioners (the `Board") of the Mounds View Economic Development Authority (the "Authority"), as follows: Section 1. Back rg ound. 1.01. The Authority has proposed to establish a Redevelopment Project Area associated with the Skyline Motel site (the "Redevelopment Project") in the City of Mounds View (the "City") pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended (the "HRA Act"), and has proposed to create a tax increment financing (redevelopment) district within the Redevelopment Project (the "TIF District") in accordance with Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the "TIF Act") and Sections 469.090 through 469.108, as amended (the "EDA Act"). 1.02. The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available funds of the Authority. 1.03, Under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority has determined that it may pay for administrative costs associated with the establishment of the TIF District and certain other costs incurred in connection with the proposed development of the TIF District, including but not limited to fees of the financial advisor and legal counsel to the Authority, in the amount of $2,500,000.00 (the "Cost Advances") on a temporary basis from the Authority's General Fund or any other fund from which such advances, from time to time, may be legally made as an interfund loan pursuant to Section 469.178, subdivision 7 of the TIF Act. 1.05. The Authority intends to reimburse itself for the Cost Advances from tax increments derived from the TIF District in accordance with the terms of this resolution (the "Interfund Loan"). Section 2. Repayment of Interfund Loan. 2.01. The Authority will reimburse itself for the Cost Advances in the principal amount of up to $2,500,000.00, together with interest at the rate per annum described below. Interest 583367vlM0205-49