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RESOLUTION NO. 13-52 AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION `VIT.H TAX INCREMENT FINANCING.DISTRICT NO. 23 BE IT RESOLVED By the City Council of the City of Elk River, Minnesota (the "City")as follows: Section 1. Background, 1.01. The City is proposing to establish Tax .Increment Financing District No. 23 (the "TIF District") within Municipal Development District No. 1 (the "Development District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1799; as amended (the"TIF Act"). 1.02. The City may incur certain costs related to the TIF District which may be financed on a temporary basis from available City fluids. 1.03. Under Section. 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from. any fund from. which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The City has determined that it may pay for administrative costs associated with the establishment of the TIF District and certain other costs incurred in connection. with the proposed development of the TIF District, including but not limited to land and site improvement costs in the amount of 51,153,878 (the "Costs Advances") on a temporary basis from the General Fund or any other fund from which. such advances, from time to time, may be legally made (the "Fund") as an interfund loan pursuant to .Minnesota Statutes, Section 469.178, Subd. 7. 1.05. The City hereby designates the Costs Advances as an interf and loan in accordance with the terms of this.resolution and the TIF Act. Section 2. Repayment of Interfiind Loan, 2.01. The City will reimburse itself for the Costs Advances in an amount not to exceed 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 tinder Sections 270.75 or 549.09 at the time a Interfund .Loan, or any part of it, is first made, subject to the right of the City Administrator to specify a lower rate. 2.02. Principal acid interest ("Payments") on the Interfund Loan shall be paid semi- annually on each February 1 and August 1. (each a "Payment .Date"), commencing on the first Payment Date on which the City has Available Tax .Increment (defined below), or on any other dates determined by the City Administrator, through the date of last receipt of tax increment frorn the TIF District. 1