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IV HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ST. ANTHONY RESOLUTION NO. 05-008 AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 3-5 BE IT RESOLVED By the Board Of Commissioners of the Housing and Redevelopment Authority of the City of St. Anthony, Minnesota (the "Authority") as follows: Section 1. Back ound. 1.01. The Authority has established tax increment financing district no. 3-5 (the "TIF District') within the Redevelopment Project No. 3 (the "HRA Project') all pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the `°TIF Act') and Sections 469.001 to 469.047 (the "HRA 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 Authority funds. 1.03. Under Section 469.178, Subdivision 7 of the `ITF 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 intends to advance funds from various sources to pay administrative costs related to the TIF District, and now proposes to designate such advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. Section 2. Repayment of Interfund Loan. 2.01. The Authority may advance from time to time, and from any available funds, moneys to pay administrative costs related to the TIF District, in a principal amount up to $200,000. The Authority will reimburse itself for such advances together with interest at the rate of 4% per annum (the "Interfund Loan"). Interest accrues on the principal amount from the date of each advance. The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2005. The interest rate will, without further action by the Authority, be adjusted on January 1 of each year to reflect the greater of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09 in effect for that calendar year. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid semi-annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIP District. 2.03. Payments on the Interfund Loan will be made solely from Available Tax Increment, defined as tax increment from the TIF District received by the City from Ramsey County in the six-month period before any Payment Date and not otherwise pledged to other bonds, notes or obligations. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the Closing Date will be compounded semiannually on February 1 and August 1 of each year and added to principal until the first Payment Date, unless otherwise specified by the Executive Director of the Authority.