8.1. HRSR 08-05-2019 - Laserfiche WebLink

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of blighting conditions, engineering, land and building acquisition, demolition and site preparation costs in an aggregate amount not to exceed the greater of $1,100,00 or the adopted and, if applicable, amended Tax Increment Financing Plan budget for the TIF District (the Interfund Loan"), together with interest at the rate prescribed by the statute (Minnesota Statutes, Section 469.178, Subdivision 7), which is the greater of the rates specified under Sections 270C.40 or 549.09 at the time a Interfund Loan, or any part of it, is first made; provided, however, the City Finance Director is authorized to specify a lower rate. 2.02. Principal and interest ("Payments") on the Interfund Loan shall be paid annually on February 1 (the "Payment Date"), commencing on the first Payment Date on which the City or the HRA has received Available Tax Increment (defined below), or on any other dates determined by the City Finance Director, through the date of last receipt of tax increment from the TIF District (the "Maturity Date"). 2.03. Payments on the Interfund Loan will be made solely from the tax increment from the TIF District received by the HRA or the City from Sherburne County in the 6 -month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledged to the payment of any obligation (the "Available Tax Increment'). Payments shall be applied first to accrued interest, and then to unpaid principal, unless otherwise specified by the City Finance Director. Interest accruing from the Loan Date will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the City Finance Director. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part with available tax increment, and are on a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the HRA without premium or penalty. 2.05. This resolution is evidence of an internal borrowing by the HRA or the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the HRA or the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment. Neither the HRA nor the City shall have any obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination or expiration of the TIF District. 2.06. The HRA or the City, as applicable, may at any time make a determination to forgive the outstanding principal amount and accrued interest on the Interfund Loan, in whole or in part, on any date from time to time, to the extent permissible under law. 2.07. The HRA may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the 2 5107290 JSB EL185-48