2002.02.19 RESO 2002-0003 - Laserfiche WebLink

Home

4.02. Proiect Fund There is hereby created a special fund designated as the Taxable Tax Increment Note (Hugo Land Development, LLC Project) Series 2002 Project Fund (the "Project Fund'), to be held and administered by the City separate and apart from all other funds of the City. The City appropriates to the Project Fund the proceeds of the sale of the Note, except capitalized interest from the date of issue through the August 1, 2004 Payment Date, which is deposited in the Debt Service Fund Within the Project Fund, the City shall maintain a subaccount designated as the Cost of Issuance Account, to which the City hereby appropriates from proceeds of the sale of the Note an amount equal to all costs of issuance of the Note, (currently estimated to be $49,421.00) to be applied to the payment thereof, including any Placement Agent fee. The balance of funds in the Project Fund will be used to reimburse the Developer for a portion of the cost of the Development Property in accordance with the Agreement. All income received from investment of amounts on deposit in the Project Fund shall be credited to the Debt Service Fund Any balance of the proceeds of the Note remaining in the Project Fund after disbursements described herein shall be credited and paid to the Debt Service Fund 4.03. Debt Service Fund So long as the Note is outstanding and any principal thereof or interest thereon remains unpaid, the City shall maintain a separate Taxable Tax Increment Revenue Note (Hugo Land Development, LLC Project) Series 2002 Debt Service Fund (the "Debt Service Fund") to be used for no purpose other than the payment of the principal of and interest on the Note. The City appropriates and irrevocably pledges to the Debt Service Fund: (a) capitalized interest from proceeds of the Note, in the amount necessary to pay interest due from the date of original issue through the August 1, 2004 Payment Date; (b) Available Tax Increment pledged pursuant to Section 4.01 of this Resolution; (c) all funds remaining the Project Fund after .disbursements in accordance with Section 4.02 of this Resolution; (d) all investment earnings on funds held in the Project Fund and the Debt Service Fund; and (e) any other funds appropriated to the Debt Service Fund. The Debt Service Fund and all moneys deposited therein pursuant to this Resolution are hereby pledged to the payment of principal of and interest on the Note. 4.04. Capitalized Interest. The City hereby authorizes the transfer of an amount from the Debt Service Fund to an account held by the Remarketing Agent which will be sufficient to make the payments of interest from the date of issue through the August 11 2004 Payment Date. The Remarketing Agent will make the payments of the capitalized interest from the date of issue through the August 1, 2004 Payment Date to the Registered Owner according to the terms of the Note and the Remarketing Agreement. All amounts held by the Remarketing Agent to pay capitalized interest will be invested in accordance with applicable law. Interest and income earned from the amount held by the Remarketing Agent for the payment of the capitalized interest will be applied to -the payments required under the Note. 4.05. Investment of Funds. All amounts held in the Project Fund and Debt Service Fund will be invested in accordance with the provisions of Minnesota Statutes, Chapter 118A, governing the investment of fiords of governmental entities. Section 5. Amendment and Restatement of Development Agreement. The Mayor and the City Clerk are hereby authorized, on behalf of the City, to negotiate and execute the Agreement. The Agreement is a revised an updated version of the Development Agreement, 11