HRA RES 2011-09 - 14869HRA RESOLUTION NO. 2011-09
RESOLUTION APPROVING INTERFUND LOAN BETWEEN GENERAL FUND
AND HRA FUND 501 TAX INCREMENT FINANCE DISTRICT HOUSING REPLACEMENT
PROGRAM
BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of Housing and Redevelopment
Authority in and for the City of Fridley, Minnesota (the "Authority") as follows:
Section 1. Recitals.
1.01. The Authority is authorized by Minnesota Statutes 2001 Supplement Section 469.174,
subdivision 3 and Section 469.178, subdivision 7 to approve by resolution any interfund loans
made after July 31, 2001 that are to be repaid with tax increment from any of the Authority's tax
increment financing districts.
1.02
1.03
The Authority is authorized to disclose by resolution the terms of the interfund loan, i.e.
principal amount of loan, interest rate, and length of loan.
The Authority is authorized to limit the principal amount of the interfund loan to the largest
negative cash balance that existed at any one time in the fund receiving the loan.
Section 2. Findin�s.
2.01. The Authority hereby finds it necessary to create an interfund loan between its general fund and
the 501 fund for the TIF District known as Housing Replacement Program. This loan is for the
express purpose of providing financing for Housing replacement projects until such time that
enough tax increment is generated in the TIF district as needed to pay back the interfund loan.
Section 3. Adoption of Interfund Loan.
3.01. The following are the terms of the interfund loan to be approved:
3.02
3.03
Loan Amount:
Interest Rate:
Length of Loan:
$ 600,000
1.5%
December 31, 2027
The Authority will create and maintain a loan payment schedule for the interfund loan that will
be approved by this resolution.
The TIF District Housing Replacement Program - will pay off the loan early if sufficient tax
increment is available.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY
1N AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 3RD DAY OF NOVEMBER, 2011.
LAWRENCE R. COMMERS, CHAIRPERSON
ATTEST:
WILLIAM W. BURNS, EXECUTIVE DIRECTOR