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RESOLUTION AUTHORIZING TRANSFER
FROM
FUTURE SALES TAX FUND AND INTERFUND LOAN
WHEREAS, in 1995, the City made an interfund loan in the principal amount of
$1,500,000 from the Sales Tax Fund to the Marigold Foods Tax Increment Financing District
(the "TIF District") to fund a combination loan and grant to Pemstar Corporation (the "Sales
Tax Loan"); and,
WHEREAS, the Sales Tax Loan was to be repaid, in part, from tax increments from the
TIF District; and,
WHEREAS, as a result of, among other things, property tax reform by the State
legislature, the City projected that tax increments from the TIF District would not be sufficient
to repay the Sales Tax Loan; and,
WHEREAS, in 2005, 2006 and 2007, the City transferred unrestricted land sale
proceeds from the. Future Property Acquisition Account No. J2003 in the aggregate principal
amount of$607,433.03 to the Sales Tax Fund to repay a portion of the Sales Tax Loan; and,
• WHEREAS, the City cur
rently projects that tax increments from the TIF F District will be
sufficient to repay the Sales Tax Loan without the use of the unrestricted land sale proceeds,
and desires to transfer $607,433.03 from the Sales Tax Fund back to the Future Property
Acquisition Account No. J2003, and to reinstate the Sales Tax Loan in the amount of
$607,433.03; and,
WHEREAS, the Tax Increment Law authorizes interfund loans to be repaid from tax
increments, but requires that they first be approved by resolution of the governing body before
money is transferred, and that the terms and conditions for repayment be provided in writing
and include, at a minimum, the principal amount, the interest rate, if any, and maximum term.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Rochester, Minnesota, as follows:
1. Transfer. The City hereby transfers the amount of $607,433.03 from the
Sales Tax Fund to Future Property Acquisition Account No. J2003.
2. Interfund Loan. As a result of the transfer in paragraph 1 above, the City
hereby authorizes an interfund loan (the "Loan") in the amount of
$607,433.03 from the Sales Tax Fund to the TIF District. The Loan shall
be repaid from tax increments from the TIF District.
• 3. Terms. The Loan shall bear interest at the rate of 6%. The Loan shall
have a maximum term equal to the number of years remaining in the
duration of the TIF District.
4. Note. The Loan shall not be evidenced by any note or writing other than
this resolution.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS DAY 2008.
PRESIDENT OF SAID COMMON COUNCIL
ATTEST:
Dr- T YCITY CLERK/
APPROVED THIS 1 gbh DAY OF Mote m Lg t— , 2008.
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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