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STA TE OF MINNESOTA COUNTY OF ANOKA ~M jUA 11/9/~O ~~.1 ~ Ir)~>~~ Ll~t)li ~U" , . .J--Lt;M/JI fa:.";;/ /' CITY OF CENTERVILLE, MINNESOTA RESOLUTION NO. 00-33 RESOLUTION AMENDING THE TERMS OF THE CITY'S $32,250 TAX INCREMENT REVENUE NOTE, SERIES 1995A AND ITS $114,051.19 TAX INCREMENT REVENUE NOTE, SERIES 1995B AND APPROVING A PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY IN THE CITY BE IT RESOLVED BY the City Council ("Council ") of the City of Centerville, Minnesota (the "City") as follows: Section 1. Background. 1.01. The City approved the establishment of Tax Increment Financing District No. 1-4 (the "TIF District") within Development District No. 1 ("Project") by resolution approved June 28, 1995. To facilitate development ofa manufacturing facility in the TIF District, the City entered into a Contract for Private Development between the City and the Northern Forest Products, L.L.C. (the "Developer") dated October 24, 1995 (the "Agreement"). The Contract required the Developer to construct a 14,500 square-foot facility on certain property defined in the Agreement (the "Property"), in exchange for issuance of two tax increment revenue notes as further described in this resolution. 1.02. Under Resolution No. 95-20 approved October 25, 1995, the City issued its $32,250 Tax Increment Revenue Note, Series 1995A dated as of October 26, 1995 ("Note I"), with interest at the rate of8.5% per annum, maturing on August 1, 1998, and payable solely from Available Tax Increment as defined in the Agreement. Note 1 was issued to the Developer and assigned to Glenn R. Rehbein and Myrna L. Rehbein ("Rehbein"), sellers of the Property, as part of the purchase price for acquisition of the of the Property by the Developer. 1.03. Under Resolution No 95-21 approved October 25, 1995, the City also issued its $114,051.19 Tax Increment Revenue Note, Series 1995B dated November 1, 1995 ("Note 2"), with interest at the rate of 8.5% per annum, maturing on February 1, 2006, and payable solely from Available Tax Increment remaining after Note 1 is paid in full or terminated in accordance with its terms. Note 2 was issued to and remains held by the Developer, as reimbursement for certain Site Improvement costs incurred by the Developer along with the balance of the cost of acquisition of the Property. 1.04. The Available Tax Increment pledged to both Note 1 Note 2 (together, the "Notes") has been insufficient to pay when due the scheduled payments on the Notes. The City, the Developer and Rehbein have determined to modify the terms of the Notes in order to remedy, in SJB-I84817v3 f"'P 1 4\ ,_'7