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CTFY OF ARDEN HILLS <br />RAMSEY COUNTY <br />STATE OF NIINNESOTA <br />Council member introc�uced the following resalutian and moved its adoption: <br />RESOLUTION NO. 2Q1Q-083 <br />RESOLUTION AUTHORIZING AN INTERFUND LOAN FQR ADVANCE OF <br />CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING <br />DISTRICT NO. 4. <br />BE IT RESOLVED by the City Cauncil (the "Cauncil") of the City of Arden Hills, Minnesota <br />(the "City"), as �oIlows: <br />Section 1. Back�raund. <br />1.0 �. The City has heretofare approved the establishment of Tax Tncrement Financing District <br />No. 4(the "TIF' Disfrict") within Developrnent District No. 1(the "Pz'oject"}, and has adopted a Tax <br />Ineremient Financing Plan (the "TIF �lan") far �he purpase of financing certain improvements within the <br />Project. <br />1.02. The City has determined to pay for certain casts identified in the TTF Plan consisting of <br />Iand/building acquisition, site irnprovements/prepat'ation, public utilities, streets and sidewatks, other <br />housing itzlprovements, interest and administrative costs (collectively, the "Qualified Costs"), wh�ch costs <br />may be financed on a terr�ptirary basis from City funds available for such purposes. <br />1.03. Under Minnesota Statutes, 5ectian 4b9.178, Subd. `7, tlie City is authorized to ad�ance or <br />Ioan money from �he City's generaI fund or any ather fund from w�ich such advances may be legally <br />authorized, in order to �nance the Qualified Costs. <br />1.04. The City intends to reimburse itself for the Qualified Costs from tax incraments deriver� <br />from the TIF Distric# in accordance with the terms of this resoIution (which terms are referred to <br />collectively as the "Interfund Loan"). <br />Section 2. Terms oi Interfund Laan. <br />2.01. The City hereby authorizes the adva�nce of up to $415,000 from the PIR fund or so much <br />thereo�` as may be paid as QuaIified Casts. The City shatl reimburse itself for sucia advances tagether with <br />interest at the rate stated betow. Interest acert�es on tlae principal amount froan the date of each a�vance. <br />The m.�imu�n xate af interest permitted to be charged is limited to t�e greater of the rates specified under <br />Minnesota Statutes, Section 270C.40 or Sectian 549.09 as of the date the loan or advance is aut�orized, <br />unless the written agreement states that the rnaxinr�utx� interest rate will fluct►aate as the interest rates <br />speci�ed under Minnasota Statutes, Section 270C.40 or Sectian 549.09 are fronn tirne to time adjusted. <br />The interest rate shaIl be 4% and will not fluctuate. <br />2A2. Principal and interest {"Paynnents") on the Interfiuid Loan shall be paid semi-annually on <br />each August 1 and February 1{each a"Payment Date"}, commencing on the first Payment Date on which <br />the Authority has Available Tax Increment (defined below}, or on any other dates determined by fhe City <br />