HRA RES 2012-12 - 14974 IFL #21HRA RESOLUTION NO. 2012-12
RESOLTUION APPROVING MODIFICATIONS TO THE INTERFUND LOAN
BETWEEN THE HRA GENERAL FUND AND HRA FUND 474 TAX INCREMENT
FINANCING DISTRICT NO. 21 (GATEWAY NORTHEAST)
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 has previously authorized an Interfund Loan (the "Interfund Loan") (HRA
Resolution No. 2009-08) in an amount of $4,300,000 to pay for tax increment eligible costs (the
"Qualified Costs") in the area known as Gateway Northeast.
1.02 The Authority is authorized by Minnesota Statutes Section 469.174, subdivision 3 and Section
469.178, subdivision 7 to approve by resolution any interfund loans that are to be repaid with tax
increment from any of the Authority's tax increment financing districts.
1.03
1.04
As of October 4, 2012, the Authority has approved a Tax Increment Financing Plan for Tax
Increment Financing District No. 21 (Gateway Northeast TIF District).
Eligible costs as of October 4, 2012 are $4,331,631.73.
Section 2. Findin�s.
2.01 The Authority hereby finds it necessary to reaffirm and modify the Interfund Loan (the "Modified
Interfund Loan) between its general fund and the fund 474 TIF District No. 21 (Gateway
Northeast). The Modified Interfund Loan is for the express purpose of providing financing for
Qualified Costs already incurred and to be incurred until such time that enough tax increment is
generated in TIF District No. 21 as needed to pay back the Modified Interfund Loan.
Section 3. Adoption of Modified Interfund Loan.
3.01 The following are the terms of the Modified Interfund Loan:
Loan Amount:
Interest Rate:
Interest Commences January 1, 2013
Length of Loan:
$4,735,000
4.0%
December 31, 2042
3.02 The Authority will repay the interfund loan solely from tax increment generated by TIF District
No. 21 after withholding allowable Authority administrative expenses. Repayments shall occur
on December 31St of each year in which the Authority receives tax increment and payments shall
first be applied to interest and the balance to the reduction of principal.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 4TH DAY OF OCTOBER, 2012.
LAWRENCE R. COMMERS, CHAIRPERSON
ATTEST:
WILLIAM W. BURNS, EXECUTIVE DIRECTOR
MMB: 4819-5051-2401, v