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;; ROUSTING ANA REDEVELOPI\'IENT AUTHORITY OF THE CITY OF ELK RIVER, R'IIrTI\~SOTA SHERBI~`RNE COU1vTY STATE OF 11'iIl~'NESOTA Commissioner Toth introduced the following resolution and moved its adoption: RESOLUTION NO. 11-01 RESOLUTION AUTHORIZII~TG AN INTERFU~ND LOAN FOR ADVAI~TCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCRE11'IENT FINAl\TCING DISTRICT NO. 16 SPENDING PLAN AND AUTHORIZING A LOAN FOR THE ELK RIVER PIZZA RANCH PROJECT. BE IT RESOLVED by the Board of Commissioners (the `'Board") of the Housing and Redevelopment Authority of the City of Elk River, Mimlesota, Minnesota (the "HRA"), as foliows: Section 1. Background. 1.01. The HRA has heretofore established Tax Increment Financing District No. 16 (the "TIF District'') and has adopted a Spending Plan (the "Spending Plan") pursuant to Minnesota Statutes, Section 469.176 Subd. 4m. 1.02. The HRA has determined to pay for certain costs identified in the Spending Plan consisting of land acquisition, public utilities, interest, administrative costs and other costs incurred in connection with the Loan for the Pizza Ranch Project described in Section 4 below (collectively, the "Qualified Costs"), which costs lnay be financed on a temporary basis from HRA funds or funds of the City of Elk River, Minnesota, Minnesota (the "City") available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is authorized to advance or loan money from the HRA's general fund or any other fund from which such advances may be legally authorized, in order to fmance the Qualified Costs. 1.04. The HRA 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. 2:01. The HRA hereby authorizes the advance of up to $51,000 from the HRA fund or so much thereof as may be paid as Qualified Costs. The HRA shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 2% or such other rate determined by the City Finance Director ~ and will not fluctuate. 385619v2 JSB EL185-12