Laserfiche WebLink
• TAX INCREMENT PLEDGE AGREEMENT <br /> This Tax Increment Pledge Agreement(the"Agreement")is dated as of November 1,2000; <br /> is by and between the City of Elk River, Minnesota (the "City"), and the Elk River Economic <br /> Development Authority (the "EDA"); and provides as follows: <br /> WHEREAS, at the request of the EDA,the City Council has adopted or is expected to adopt <br /> a certain resolution (the "Bond Resolution") awarding the sale of the City's $800,000 General <br /> Obligation Tax Increment Bonds, Series 2000A,dated November 1,2000(the"Bonds"),to provide <br /> financing for certain public improvement costs within the EDA's Tax Increment Financing District <br /> No. 19 (the "Project"); and <br /> WHEREAS, to provide funds sufficient for the timely payment of the debt service on the <br /> Bonds, it is necessary for the EDA and the City to enter into this Agreement; and <br /> WHEREAS,each capitalized term which is used but not otherwise defined in this Agreement <br /> shall have the meaning given to that term in the Bond Resolution: <br /> NOW,THEREFORE,in consideration of the covenants and agreements hereof between the <br /> City and the EDA,and pursuant to Minnesota Statutes, Section 469.178,Subdivision 2,the City and <br /> • the EDA hereby agree as follows: <br /> 1. In order to pay the principal of and interest on the Bonds, when due, the EDA hereby <br /> pledges to the City,for deposit in the Debt Service Account established by the Bond Resolution for <br /> the payment of the Bonds,and the EDA shall pay to the City,Available Tax Increments(hereinafter <br /> defined),provided that the amounts thereof payable hereunder shall not in any year exceed amounts <br /> necessary, together with other funds available for such purposes in said Debt Service Account, to <br /> pay the principal of and interest on the Bonds,when due. As used in this Agreement, "Available Tax <br /> Increments" means tax increments that are derived by the EDA from its Tax Increment Financing <br /> District No. 19 and which are available for such purposes pursuant to applicable law.In discharging <br /> its obligations under this Agreement, the EDA expressly reserves the rights (1) to pledge or <br /> otherwise dedicate the Available Tax Increments to purposes other than the discharge of the <br /> obligations described above upon a finding by the EDA that the estimated Available Tax Increments <br /> then remaining will be sufficient from year to year for such purposes, and (2) to satisfy its <br /> obligations hereunder from year to year from such eligible tax increment districts or other revenues, <br /> or combinations thereof, if any, as the EDA may deem in its discretion to be appropriate, desirable <br /> or necessary, as may be permitted by law. <br /> 2. An executed copy of this Agreement shall be filed in the office of the Sherburne <br /> County Auditor as required by Minnesota Statutes, Section 469.178, Subdivision 2. <br /> 11, <br /> 1217682.1 <br />