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RESOLUTION PROVIDING FOR APd INTERFUND LOAN TO REFUND THE CENTRE POINT PROJECT TIF BONDS WHEREAS, it is necessary and desirable to defease the outstanding bonds of the 34.7% portion of the City's $13,280,000 General Obligation Tax Increment Refunding Bonds, Series 1998, whose proceeds refunded, among others, an issue whose proceeds financed the acquisition of certain "Redevelopment Property" pursuant to a certain "Prior Dev�lopment Agreement', each as defined in that certain Amended and Restated Development Agreement between the City of Roseville, Minnesota, and Ryan Twin Lakes Limited Partnership (Centre Point Project), dated as of May 21, 1997 (the "Development Agreement") (which 34.7% portion is herein the "Bonds"); and WHEREAS, the source of moneys for the defeasance of the Bonds is an interfund loan (the "Interfund Loan") of tax increments of tax increment districts other than Tax Increment Financing Districts Nos. 1-14 and 16 (which Nos. 1-14 and 16 are the "TIF Districts") whose tax increments are pledged to the payment of the Bonds; and WHEREAS, the defeasance of the Bonds with moneys made available through the InterFund Loan is not intended to be a payment of the Bonds, but rather a refunaing of the Bonds that will constitute the Interfund Loan as the Bonds as defined in the Development Agreement, as "bonds or other obligations issued to refund [the Bonds]"; and WHEREAS, for purposes of the Tax Increment Act (as defined in the Development Agreement) interfund loans are defined as "bonds", and must be approved by resolution before money is transfened, advanced, or spent, and the terms and conditions for repayment of the interfund loan must be provided in writing and include, at a minimum, the principal amount, the interest rate, and maximum term; and WHEREAS, tax increments from the TIF Districts are used in a flow of funds set forth in Section 3.6 of the Development Agreement, the first use of which is debt service on the Bonds, and debt service on the Interfund Loan is least disruptive of the uses of such tax increments if debt service on the Interfund Loan is exactly identical to debt service on the Bonds: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Roseville, Minnesota, as follows: 1. Defeasance. The Bonds shall be defeased by a deposit of $2,914,800 invested in such a fashion as to permit payment of debt service on the Bonds.- after March l, 2002, through March 1, 2004, and early redemption of the remaining Bonds on March 1, 2004. 2. Interfund Loan and Tnterfund Loan Note. The source of such defeasance deposit shall be the Interfund Loan of moneys in thePooled Tax Increment Fund. The 1346435vDOC v2 to vl 11/26/ O1 F�