7.2. HRSR 04-06-2020 - Laserfiche WebLink

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1.06. The HRA and the City propose to amend the Original Interfund Loan Resolution to request an additional interfund loan in the maximum principal amount of $200,000 to finance additional Qualified Costs (the “Additional Interfund Loan”) in accordance with the terms of this resolution. 1.07. The Original Interfund Loan and the Additional Interfund Loan will be referred to collectively as the “Interfund Loan.” Section 2. Repayment of Interfund Loan. 2.01. The amount of the Interfund Loan is increased to $1,300,000. 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”). Interest shall accrue 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. Payments on the Interfund Loan will be made from the tax increment from the proposed 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”), from proceeds of the sale of the property in the proposed TIF Distract (if any), and from any other revenues available to the HRA and the City. 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. 2.03. 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. 2.04. To the extent that a TIF District is created, 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 revenues 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 revenues pledged hereunder. 2 510729v1 JSB EL185-48