CC RES 96-042 RESOLUTION RELATING TO $1,720,000 GENERAL OBLIGTION TAXABLE TAX INCREMENT BONDS, SERIES 1996A; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, AND PROVIDING FOR THE EXECUION AND DELIVERY THEREOF AND THE SECURITY THE

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• Section 4. Use of Proceeds and Security Provisions. Section 4.01. Construction Fund. A Construction Fund is hereby created, as a special fund and designated on the books of the City as the "1996 Tax Increment Bonds Construction Fund" (the "Construction Fund"), to be created and maintained on the books of the City separate and apart from all other funds- of the City. The City hereby appropriates to the Construction Fund $1,407,602 of the proceeds received from the sale of the Bonds. Moneys on hand in the Construction Fund from time to time shall be used solely to pay a portion of the costs of acquisition by SUPERVALU INC. of land in the City on which it will construct a new CUB Foods store and to pay costs of issuance of the Bonds. Any amounts remaining in the Construction Fund upon payment of all such costs shall be transferred to the Bond Fund. Section 4.02. General Obligation Taxable Tax Increment Bond Sinking Fund. The Bonds shall be payable from a separate Series 1996A General Obligation Taxable Tax Increment Bond Sinking Fund (the "Sinking Fund") which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. There shall be credited to the Sinking Fund the following: (a) Any amount in excess of $1,407,602 received upon the sale of the • Bonds. (b) All taxes levied and all other money which may at any time be received for or appropriated to the payment of the principal of or interest on the Bonds, including the tax increments herein pledged and appropriated to the Sinking Fund and all collections of any ad valorem taxes levied for the payment of the Bonds. (c) Any other funds appropriated by the Council for the payment of the Bonds. 4.03. Pledge of Tax Increment. Tax increment derived from Apache Plaza Tax Increment District (Tax Increment District No. 3-Ramsey County), 39th and Silver Lake Road Tax Increment District (Tax Increment District No. 4-Ramsey County) Kenzie Terrace Tax Increment District (Hennepin County No. 1960) and Chandler Place Tax Increment District (Ramsey County No. 58) (together, the "Districts") of the Housing and Redevelopment Authority of St. Anthony, Minnesota (the "HRA") are hereby irrevocably pledged to the payment of the principal of and interest on the Bonds. Such pledge of tax increment shall be on a parity with the pledge of any of such revenues to pay any other bonds of the City or HRA. The HRA and the City shall enter into a Pledge Agreement whereby the HRA shall pledge and appropriate tax increment from the Districts to pay the Bonds. • -14-