5.1. HRSR 12-06-2004 - Laserfiche WebLink

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i RESOLUTION APPROVING THE TERMS OF INTERNAL LOAN IN CONNECTION WITH DOWNTOWN PHASE I TAX INCREMENT •di FINANCING DISTRICT NO. 22 (LAND) BE IT RESOLVED by the City Council (the "Council") of the,City of Elk River, Minnesota(the "City"), as follows: Section 1. Background. (a) The City has heretofore approved the establishment of Downtown Phase I Tax Increment Financing District No. 22 (the "TIF District") within its Municipal Development District No. 1 (the "Development District"), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the TIF District. (b) The City has determined to pay for certain costs (the "Qualified Costs") identified in the TIF Plan consisting of the costs of the Jackson Block Property for the Jackson Block Development, both as defined in the Development Agreement, dated as of December 6, 2004, between the City and MetroPlains Development, LLC (the "Development Agreement"), which costs will be financed on a temporary basis from City funds available for such purposes. (c) Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally made, in order to finance the Qualified Costs. (d) The City intends to reimburse itself for the Qualified Costs from tax increments • derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. (a) The City shall repay to the City fund from which the Qualified Costs are initially paid, the principal amount of approximately $500,000 together with interest at 4.00%per annum from the later of December 6, 2004 or the date of the sale of the Land. (b) Principal and interest ("Payments") shall be paid semi-annually on each February 1 and August 1 commencing with the first February 1 or August 1 occurring after the date of issuance of a certificate of completion for the shell of the Bluff Block Development (as defined in the Development Agreement) to and including the earlier of (a) the date the principal and accrued interest of the Interfund Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of City Pledged Tax Increment as hereinafter defined. Payments shall be applied first_to accrued interest, and then to unpaid principal. (c) Payments on this Interfund Loan are payable solely from "City Pledged Tax Increment," which shall mean, on each Payment Date, 4% of the actual Available Tax Increment (as defined in the Development Agreement) received by the City since the last Payment Date plus any Tax Increment received by the City since the last Payment Date generated by the excess Aiiik of the current actual Market Value of the Minimum Improvements as determined by the County lip 1713879v1 • •