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RESOLUTION NO. 11226 RESOLUTION APPROVING THE TERMS OF UP TO A $750,000 INTERFUND LOAN IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 10 AND TAX INCREMENT FINANCING DISTRICT NO. 12 BE IT RESOLVED by the City Council (the "Council") of the City of Roseville, Minnesota(the "City"), as follows: Section 1. Background. (a) The City has heretofore approved the establishment of Tax Increment Financing Districts No. 10 and Tax Increment Financing District No.12 (together, the "TIF Districts") within Municipal Development District No. 1, and has adopted tax increment financing plans for Tax Increment Financing District No. 10 and Tax Increment Financing District No. 12 (together, the "TIF Plans"). (b) The City has determined to pay for certain costs identified in the TIF Plans consisting of certain administrative expenses (the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes. (c) Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the City's general fund or any other fund from which such advances may be legally made, including tax increments from tax increment financing districts (collectively, the "Fund"), in order to finance the Qualified Costs. (d) The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from either or both of the TIF Districts in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan"). Section 2. Terms of Interfund Loan. (a) The City hereby authorizes the advance of up to $750,000 from the Fund or so much thereof as may be paid as Qualified Costs. The City shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4.00%and will not fluctuate. (b) Principal and interest on the Interfund Loan shall be paid semi-annually on each February 1 and August 1 (each a "Payment Date") commencing with the Payment Date on which the City has Available Tax Increments (defined below), or on any other dates determined by the City Manager, through the last receipt of tax increment from the TIF Districts. 7134258v1