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<br /> <br />City of Elk River <br />City Council <br /> <br />Resolution 21-__ <br /> <br />A Resolution of the City Council of the City of Elk River Authorizing an <br />Interfund Loan for Advance of Certain Costs <br /> <br /> BE IT RESOLVED By the City Council of the City of Elk River, Minnesota (the “City”) as <br />follows: <br /> <br /> Section 1. Background. <br /> <br /> 1.01. The City is considering making certain infrastructure improvements in connection <br />with the Broadway at 10 Rental development, consisting of a combination of an approximately 91 unit <br />multifamily housing building and 24 single family townhomes located on parcel identification number <br />75-842-0010 in the City (the “Project”). <br /> <br /> 1.02. The City may incur certain costs related to Project which may be financed on a <br />temporary basis from available City funds. <br /> <br /> 1.03. The City is proposing to use tax abatement in accordance with Minnesota Statutes, <br />Sections 469.1812 to 469.1812, as amended (the “Tax Abatement Act”) to help finance the Project by <br />abating all or a portion of the City’s property taxes on property benefitted by the improvements. <br /> <br /> 1.04. The City is authorized to advance or loan money from any fund from which such <br />advances may be legally made in order to finance expenditures that are eligible to be paid with tax <br />abatements under the Tax Abatement Act. <br /> <br /> 1.05. The City has determined that it may pay for property acquisition for installation of the <br />public improvements, engineering expenses, and the construction of the infrastructure improvements <br />in connection with Project (the “Cost Advances”) on a temporary basis from the City’s general fund <br />or any other fund, as determined by the Finance Director, from which such advances, from time to <br />time, may be legally made (the “Fund”). <br /> <br /> 1.06. The City hereby designates the Cost Advances as an interfund loan in accordance with <br />the terms of this resolution. <br /> <br /> Section 2. Repayment of Interfund Loan. <br /> <br />2.01. The City will reimburse itself for the Cost Advances in an aggregate amount not to <br />exceed $700,000 (the “Interfund Loan”). Interest will not accrue on the Interfund Loan. <br /> <br /> 2.02. Principal (“Payments”) on the Interfund Loan shall be paid semiannually on February <br />1 and August 1 (each a “Payment Date”), commencing on the first Payment Date on which the City <br />has received Tax Abatements (defined below), or on any other dates determined by the Finance <br />1 <br /> <br /> <br />