Title
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 22: FIRST STREET MEDICAL FACILITES DEVELOPMENT
Body
CITY PROPOSAL:
BE IT RESOLVED by the City Council (the "Council") of the City of Duluth, Minnesota (the "City"), as follows:
Section 1. Background.
1.01. The City has heretofore approved the establishment of Tax Increment Financing District No.22: First Street Medical Facilities Development (the "TIF District") within Development District No. 17 (the "Project") and has adopted a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project.
1.02. The City financed certain costs identified in the TIF Plan through the issuance of general obligation bonds (the "Bonds) consisting of land/building acquisition, site improvements/preparation, public utilities, streets and sidewalks, other qualifying improvements, interest and administrative costs (collectively, the "Qualified Costs"), which costs may be financed on a temporary basis from City funds available for such purposes.
1.03. 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 authorized, in order to finance the Qualified Costs.
1.04. The City intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan").
Section 2. Terms of Interfund Loan.
2.01. The City hereby authorizes the advance of up to $3,000,000 from the Parking Fund, or any other available City fund or so much thereof as may be paid as Qualified Costs, including without limitation debt service on the Bonds due and payable prior to the receipt of tax increments from the TIF District. The Bonds were issue...
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