EDA Resolution 2020-04CITY OF MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2020-04
AUTHORIZING ADVANCE OF FUNDS FROM TAX INCREMENT FINANCING
DISTRICT NO. 1-6 FOR COSTS IN CONNECTION WITH TAX INCREMENT
FINANCING DISTRICT NO. 1-41
BE IT RESOLVED By the Board of Commissioners of the City of Monticello Economic
Development Authority (the "Authority") as follows:
Section 1. Background.
1.01. The City of Monticello previously established its tax increment financing district
no. 1-6 (the "TIF District 1-6") within the Central Monticello Development Project No. 1 (the
"Development Project") pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 (the "TIF
Act"), Sections 469.001 to 469.047, and Sections 469.090 to 469.1081, all as amended, which
TIF District 1-6 is currently administered by the Authority.
1.02. The Authority expects to incur certain costs related to a newly -created tax
increment financing district (the "TIF District 1-41"), which costs may be financed on a
temporary basis from available Authority funds.
1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized
to advance or loan money from any fund from which such advances may be legally made in
order to finance expenditures that are eligible to be paid with tax increments under the TIF Act.
1.04. The Authority intends to acquire certain property (the "Development Property")
within TIF District 1-41 at its fair market cost of $1,031,000, and intends to pay a portion of the
cost of acquiring the Development Property using tax increments from TIF District 1-6, up to the
total balance of tax increments (approximately $702,400) available in the account for TIF
District 1-6 (the "Balance").
1.05. The Authority has designated the advance of funds for the Development Property
acquisition as an interfund loan (the "Interfund Loan").
Section 2. Authorization of Use of Funds; Further Actions.
2.01. The Authority hereby authorizes the use of the Balance from TIF District 1-6 as
one of the legally available funding sources for the Interfund Loan.
2.02. The Authority reserves the right to permanently allocate all or any portion of the
Balance to the acquisition of the Development Property and to forgive such portion of the
Interfund Loan, as authorized in the Authority's resolution approving the Interfund Loan and
adopted on the date hereof.
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Section 3. Effective Date. This resolution is effective upon approval.
Adopted this 26th day of February, 2020.
President
ATTEST:
633917v 1 MN 190-160