HomeMy Public PortalAbout2002-021 Resolution Authorizing Interfund Loan to TIF Dist. 1-8Member Carolyn Smith introduced the following resolution and moved its adoption:
CITY OF MEDINA
RESOLUTION NO.02-21
RESOLUTION AUTHORIZING INTERFUND LOAN
TO TAX INCREMENT FINANCING DISTRICT NO. 1-8
WHEREAS, on May 18, 1993, the city of Medina (the "City') established TIF District No.
1-8 (the "TIF District") and adopted a plan (the "TIF Plan") related thereto; and
WHEREAS, the TIF Plan included a budget which authorized the use of tax increment for
reimbursement of special assessments levied for certain public improvements against benefited
properties within the TIF District; and
WHEREAS, on December 20, 1994 the City entered into a development agreement (the
"TIF Agreement") with Transtech Communications, Inc. ("Transtech") for reimbursement of
special assessments from tax increment; and
WHEREAS, the City currently has insufficient tax increment to satisfy its obligations to
Transtech under the TIF Agreement but anticipates receiving additional increment in 2002; and
WHEREAS, the City has determined to lend monies from its general fund or other
available source to the TIF District in order to satisfy its obligations to Transtech with the
expectation that the City will be reimbursed upon receipt of tax increment during 2002.
NOW, THEREFORE, BE IT RESOLVED by the city council of the city of Medina,
Minnesota, as follows:
1. The City is authorized to make an interfund loan from its general fund or any other
source authorized by law to TIF District No. 1-8. The principal amount of the interfund loan shall
not exceed $ 86,110.27 The interfund loan shall be repaid to the TIF District by no later than
December 31, 2002. The interfund loan shall bear a rate of 6% interest not to exceed that permitted
by Minn. Stat. § 469.178, subd. 7.
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April 16, 2002
2. The administrator -clerk -treasurer is authorized to take any and all other actions
necessary or convenient to effect the purpose of this resolution.
Dated: April 16, 2002.
Philip K. letlow, yor
AT
Paulinson, Administrator -Clerk -Treasurer
The motion for the adoption of the foregoing resolution was duly seconded by member Bruce
Workman and upon vote being taken thereon, the following voted in favor thereof:
Lane, Smith, Supel, Workman, and Zietlow
and the following voted against same: None
Whereupon said resolution was declared duly passed and adopted.
RHB-212979v1
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02-21
April 16, 2002