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()- <br />TAXINCREMENTFINANCINGHOUSINGDISTRICTNO.18 <br />3.04.6BondedIndebtedness <br />reimbursedfromtaxincrementpursuanttotheTIFAct.Becausedevelopmentwilloccurbefore <br />taxincrementrevenueswillbegeneratedandavailable,bondedindebtednessisanticipated. <br />theTIFDistrictisshowninFigure3-1.TheCitywillnotissueanygeneralobligationbonded <br />indebtednessasaresultoftheTIFPlan. <br />(PAYG)basisforProjectCostspursuanttoacontractwiththeDeveloper.APAYGobligation <br />isaformofbondedindebtedness,arevenueobligation.TheDeveloperwillpayforcertain <br />time.ReimbursementwithtaxincrementrevenuesfromtheTIFDistrictwilloccurwhenand <br />totheextenttaxincrementrevenuesbecomeavailable,pursuanttotermsofacontractwiththe <br />Developer.Initially,theDeveloperwilluseitsownfundsand/orprivatelyborrowedfundsfrom <br />TheDeveloperwillberequiredtosubmitinvoicestotheCitytosubstantiatethecosts <br />fortheprincipalamountequaltotheProjectCostsincurred.Section3.04.3oftheTIFPlan <br />providestheauthorityfortheCitytoconsiderreimbursementofProjectCoststotheDeveloper <br />developmentmaybeusedtopaydebtserviceonthePAYGnote,inclusiveofinterest.Iftax <br />Plan,theDeveloperwillnotbereimbursedandtheCityhasnoobligationtopaytheshortfall. <br />WithaPAYGnoteitistheDeveloperwhowillaccepttheriskofadevelopmentthatgenerates <br />lesstaxincrementrevenuesthananticipated.Ifmoretaxincrementrevenuesaregeneratedthan <br />CitymaydecertifytheTIFDistrictearly. <br />469.176,Subd.4oftheTIFAct,fromthegeneralfundsoftheCityoranyotherfundunder <br />whichthereislegalauthoritytodoso,subjecttothefollowingprovisions: <br />(a)Notlaterthan60daysaftermoneyistransferred,advanced,orspent,whicheveris <br />earliest,theloanoradvancemustbeauthorizedbyresolutionoftheCity. <br />(b)TheresolutionmaygenerallygranttotheCitythepowertomakeinterfundloans <br />loanistoberepaid. <br />(c)Thetermsandconditionsforrepaymentoftheloanmustbeprovidedinwriting. <br />underMinnesotaStatutes,Section270C.40or549.09asofthedatetheloanoradvance <br />549.09arefromtimetotimeadjusted.Loansoradvancesmaybestructuredasdraw- <br />downorline-of-creditobligationsofthelendingfund. <br />DRAFTFORPUBLICHEARINGOCTOBER9,201910 <br />21 <br /> <br />