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4.15.
CC Regular Session
Meeting Date:
01/10/2012
By:
Diana Lund, Finance

Information

Title:

Adopt Interfund Loan Agreement Resolution for TIF District #2 (Funding for Northstar Rail Station)

Background:

The Northstar Rail Station has an estimated cost of $14,350,000 which includes a $1,150,000 for a city skyway.  Of this amount, Ramsey is responsible for $4,750,000.  Funding is proposed to come from TIF 1 in the amount of $860,000 and TIF 2 in the amount of $3,890,000.  Currently, TIF 2 has $2,079,000 available increment.  The additional $1,811,000 needed to fund the railstation will be loaned from the Landfill Trust Fund and reimbursed back from TIF District #2 when property tax increment dollars are received in 2012 and 2013. 

Tax Increment laws require that the city adopt a resolution stating that they wish to repay themselves with future increment, the respective loaning fund, and interest rate. 

Recommendation:

Staff recommends adoption of the resolution for the Interfund Loan Agreement for TIF District #2.

Funding Source:

The Rail Station will be funded from TIF 1 and TIF 2 with the Landfill Trust Fund providing an internal loan and will be repaid as annual increment is received in TIF District #2.

Council Action:

Adopt Resolution #12-01-XXX Approving the Terms of $1,811,000 Interfund Loan in Connection with TIF District #2.

Attachments

Form Review

Inbox Reviewed By Date
Kurt Ulrich Kurt Ulrich 01/05/2012 08:59 AM
Form Started By:
Diana Lund
Started On:
01/03/2012 07:45 AM
Final Approval Date:
01/05/2012