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warn I RESOLUTION NO. 2 RESOLUTION APPROVING THE TERMS OF UP TO A 3 $,6,,000,,000 INTERFUND LOAN IN CONNECTION WITH 4 TAX INCREMENT FINANCING DISTRICT NO. 17 5 BE IT RESOLVED by the City Council the "Council") of the City of Roseville, 6 Minnesota the "City" , as follows.- 7 Section 1. Background 8 (a) The City has heretofore approved the establishment of Tax Increment Financing 9 District No. 17 the "TIF District") within Municipal Development District No. 1, and has 10 adopted a tax increment financing plan for the TIF District the "TIF Plan" . 11 (b) The City has determined to pay for certain costs identified in the TIF Plan 12 consisting of certain administrative expenses the "Qualified Costs")�, which costs may be 13 financed on a temporary basis from City funds available for such purposes. 14 (c) Under Minnesota Statutes,, Section 469.178, Subd. 7, the City is authorized to 15 advance or loan money from the City's general fund or any other and from which such advances 16 may be legally made, including tax increments from tax increment financing districts 17 (collectively,, the ((Fund" 1,, in order to finance the Qualified Costs. 18 (d), The City intends to reimburse itself for the payment of the Qualified Costs, plus 19 interest thereon,, from tax increments derived from the TIF District in accordance with the terms 1 20 of this resolution (which terms are referred to collectively as the "Inter and Loan"). 21 Section 2. Terms of Interfand Loan 22 (a), The City hereby authorizes the advance of up to $,6,000,000 from the Fund or so 23 much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such 24 advances together with interest at the rate stated below. Interest accrues on the principal amount 25 from the date of each advance. The maximum rate of interest permitted to be charged is limited 26 to the greater of the rates specified under Minnesota Statutes,, Section 270C.4O or Section 549.09 27 as of the date the loan or advance is authorized,, unless the written agreement states that the 28 maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes,, 29 Section 270C.4O or Section 549.09 are from time to time adjusted. The interest rate shall be 30 4.00% and will not fluctuate. 31 (b), Principal and interest on the Interfand Loan shall be paid semi-annually on each 32 February I and August I (each a "Payment Date"), commencing with the Payment Date on which 33 the City has Available Tax Increment (defined below),, or on any other dates determined by the 34 City Manager, through the last receipt of tax increment from the TIF District. 35 (c), Payments on the Interfund Loan are payable solely from "Available Tax 36 Increments" which shall mean,, on each Payment Date, all of the tax increment available after 37 other obligations have been paid, generated in the preceding six (6), months with respect to the 4091958vl