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City of <br /> Elk <br /> Pdver Resolution 13- <br /> A Resolution of the City of Elk River Approving the Terms of up to a $472,982 <br /> Internal Financing in Connection with a Tax Abatement for Preferred Powder <br /> Coating, LLC <br /> WHEREAS, The city has heretofore approved the establishment of a tax abatement to assist <br /> Preferred Powder Coating with the construction of an approximate 100,000 square foot facility within <br /> the city; and <br /> WHEREAS, The city has determined to reimburse for certain costs consisting primarily of <br /> extraordinary site development improvements associated with the development (the "Qualified Costs"), <br /> for which will be initially financed from city funds available for such purposes. <br /> WHEREAS, The city intends to reimburse itself for the payment of the Qualified Costs,plus interest <br /> thereon, from the city and county's share of annual tax abatements that will be levied for and collected <br /> annually by each entity in accordance with the terms of this resolution (which terms are referred to <br /> collectively as the "Internal Financing"). <br /> NOW, THEREFORE, BE IT RESOLVED The City of Elk River hereby authorizes the advance <br /> of up to $472,982 from available city development funds that may be paid as Qualified Costs. The city <br /> shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues <br /> on the principal amount from the date of each advance. The interest rate shall be 3.00%. <br /> Principal and interest on the Internal Financing shall be paid semi-annually on each February 1 and <br /> August 1 (each "Payment Date") following commencement of annual levies by the city and county for <br /> collection of annual tax abatements through the term of the tax abatement collections (up to 20 years). <br /> The principal sum and all accrued interest payable under the Internal Financing are pre-payable in <br /> whole or in part at any time by the city. <br /> The city may amend the terms of the Internal Financing at any time by resolution of the City Council, <br /> including a determination to forgive the outstanding principal amount and accrued interest to the extent <br /> permissible under law. <br /> Passed and adopted this 15"'day of July 2013. <br /> John J. Dietz,Mayor <br /> ATTEST: <br /> Tina Allard, City Clerk <br /> P 0 W II R I D R I <br /> INAWREJ <br />