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HRA 08/07/2014 August 7, 2014 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call. Action Items 1. Approval of expenditures 2. Approval of June 5, 2014 Meeting Minutes 3. Approval of HRP Sale of 5725 3rd Street 4. Approval of Resolution Acknowledging Ownership Allocation of Cielo Partners, LLC for GWNE Redevelopment Agreement 5. Approval of Resolution Determining that Parcel is Occupied by Structurally Substandard Buildings and is to be Included in a TIF District 6. Approval of Resolution Authorizing Interfund Loans For Columbia Arena Redevelopment Informational Items 1. 2014 HRA Review of Fund Balances for Planning Purposes 2. CEE Programs Update Adjournment K:\HRA\Agenda Packets\2014 Agenda Packets\August 7, 2014\1 August 2014 Agenda.docxK:\HRA\Agenda Packets\2014 Agenda Packets\August 7, 2014\1 August 2014 Agenda.docx CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION JUNE 5, 2014 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:04 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers William Holm Pat Gabel Stephen Eggert Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Darin Nelson, Finance Director Vickie Loher, Development Consultant Roger Fink, Cielo Partners ACTION ITEMS: 1.Approval of Expenditures MOTION by Commissioner Gabel to approve the expenditures as presented. Seconded by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of May 1, 2014 Meeting Minutes MOTION by Commissioner Holm to approve the May 1, 2014 Meeting Minutes. Seconded by Commissioner Eggert. Commissioner Gabel noted the following corrections: Page 1 item one change Votine to Voting start the tax increment analysis is in the format that has been followed for in where were they are of Pages 5, 6 and 7 correct spelling of CARRIED under the MOTION Page 6 fifth paragraph in in Housing and Redevelopment Authority Meeting of June 5, 2014 2 Commissioner Backlund Rules of Order in both the item and the motion on page 8. MOTION by Commissioner Holm to approve the minutes as amended. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED 3.Election of Officers MOTION by Commissioner Holmto nominate Larry Commers as Chair and Pat Gabel as Vice Chair for the coming year. Second by Commissioner Backlund. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4.Continuation of the Public Hearing and Authorization of Land Sale, as part of Redevelopment Agreement, of Gateway Northeast Property to Cielo Partners. MOTION by Commissioner Backlund to reopen the public hearing. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED AND THE PUBLIC HEARING REOPENED AT 7:21 P.M. Paul Bolin, HRA Assistant Executive Director, stated that the proposed development will have approximately 259 apartment units, contained in (3) separate buildings. Each building is proposed to be 4-stories, with 3 stories of living above indoor, ground level parking. Two of the rd buildings proposed have 101 units and the 3 building has 57 units. Buildings 1 and 2 are proposed to be connected to each other through a skyway. Mr. Bolin stated that the acquisition of the development parcels started in 2006, the planning started in 2007, the demolition started 2009 and marketing started 2012. Discussions with Trident started in June of 2012was signed in the fall of 2013, drafting of the Development Agreement started early in 2014, the Term Sheet was developed in early March 2014 and the Development Agreement was drafted in late March. The Agreement was finalized in May 2014. Mr. Bolin said that Trident will purchase the property for a Fair Market Value of $6.25 / sq. ft. Trident will borrow against the entire site to construct improvements on all 3 lots, as well as construct building #1. Trident will lots. (Tracking & documenting actual costs) Trident will be given a credit and these costs will be deducted from the purchase price, on the settlement date. Staff recommends approval of the Housing and Redevelopment Authority Meeting of June 5, 2014 3 contract for private redevelopment, which includes the land sale, of the properties known as Gateway Northeast. Commissioner Backlund asked for clarification on page 18 where it talks about insurance. A lot of government contracts have a minimum insurance rating of 7 or something like that; he was surprised that was not included in these types of agreements. Chairperson Commers agreed that the liability potential seemed like a reasonable suggestion. He asked if Mr. Fink knew what insurance was used for these liabilities. Roger Fink, Cielo Partners, replied that the insurance placed on large construction projects is through Zurich Insurance Group. Occasionally it may have been someone else but he expects for this project it will be Zurich. Commissioner Backlund did not know the rating of Zurich and thought it was something that should be considered to be included in this agreement. Vickie Loher, Development Consultant, took note and would make sure that was taken into account. Chairperson Commers asked if the HRA would be responsible for anything associated with the infrastructure like the fence along University Avenue or the water main. He thought that was part of the common areas. Mr. Bolin noted that the improvements referenced earlier were on page 47, Schedule F. They will be installed by the developer and the cost deducted from the purchase price. Chairperson Commers asked what would happen in the event of a default. Ms. Loher replied that if the developer would fail to complete the improvements of the first lots the HRA would not issue a certificate of completion. The Authority would exercise the lot release price and regain fee title to lots 2 and 3, utilizing the lot release prices that are set forth in the agreement, with the understanding the Authority is subordinating their right of recapture to the developer. Chairperson Commers said that the original financing will take care of the public improv and 3 the Authority has the right to take those lots back. Ms. Loher replied that is correct. MOTION by Commissioner Backlund to close the public hearing. Seconded by Commissioner Eggert. Housing and Redevelopment Authority Meeting of June 5, 2014 4 UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING CLOSED AT 7:37 p.m. MOTION by Commissioner Backlund to approve the Authorization of Sale, as part of Redevelopment Agreement, of Gateway Northeast Property to Cielo Partners. Seconded by Commissioner Gabel. UPON A VOICE VOTE, ALL VOTING AYE, CHARIPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Commissioner Eggert asked when construction would start. Mr. Fink thanked the staff in working together to get the legal details done for this transaction. The construction plans for the first building are completed and they will go out for competitive bidding. They applied for a building permit today and the appraisal is expected in next week. The plat is under review at Anoka County, the City has the title transfer matter to complete and it sounds like that will go through the process by mid-July which will fit well with the schedule. If the bids come in over budget they will have to go through the bids to try and close the gap. 5.Approval of Phase XI Housing Replacement Program Paul Bolin, HRA Assistant Executive Director, stated that in December 2010, the Authority approved an amended and restated plan for the HRP. Parcels can be added by HRA Resolution, provided the parcels meet required criteria. Once in the program and a new home is constructed, the Authority is able to collect increment for 15 years on the improvements. Staff recommends approval of the resolution amending the Housing Replacement Program to include Phase XI. Mr. Bolin added that since the Authority is not meeting until July, staff would like to get bids to demolish this property, and move forward with demolition in the next month, so the property can be put out for sale. MOTION by Commissioner Gabel to adopt a resolution adding Phase XI to the Housing Replacement Program. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY MOTION by Commissioner Backlund to obtain necessary demolition contractor of this property assuming $50,000 or less and using the informal bid process. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 6.Approval of Agreement to Purchase 7011 University Avenue NE Housing and Redevelopment Authority Meeting of June 5, 2014 5 Paul Bolin , HRA Assistant Executive Director, stated that negotiations began on this property last October. The appraisal said it is worth $3,555,000 if shovel ready. It is estimated that it will cost nearly $900,000 to make the site shovel ready, which is how staff arrived at the price of $2,600,000. There were many counter offers from the seller, but eventually the seller agreed to take the original offer of $2.6m. The closing will not happen until August or September so there is time to look at the mechanics on how to fund this purchase and pay for the demolition work. Mr. Bolin stated that the funds for the purchase and redevelopment of this property will come from the following: TIF district to be created Interfund loan from HRA & loan from City The loans will be paid back through future land sales and the TIF District. Staff recommends the Authority approve a motion accepting the purchase agreement for the Columbia Arena property located at 7011 University Avenue NE. Chairperson Commers said that the funding would evenly be divided between the city and the Authority. Mr. Bolin replied that no discussions have been held that would differ from that. Commissioner Holm asked if this is structured as a purchase of property by the HRA. Mr. Bolin said that is correct; the HRA would hold the title of the property; the City may not buy land to hold for redevelopment. Commissioner Holm asked if the city would lend HRA money to make sure the HRA is properly funded so the HRA funds are not strained and the Authority has the ability to pay. Mr. Bolin replied that is correct. Chairperson Commers ability to pay is behind the agreement that the cost would be evenly divided between the HRA and the city. The Authority will know more where they are at financially after a cash flow analysis is completed. Commissioner Holm said this is a great opportunity for the city and the HRA to get control of this property. Commissioner Eggert asked what the mechanics were for signing the purchase agreement and if the funding arrangement was contingent to closing. Mr. Bolin replied that there are no contingencies on the HRA ability to fund this purchase. The purchase agreement is before Chairperson Commers tonight for signature. The check for the earnest money is ready to go. Housing and Redevelopment Authority Meeting of June 5, 2014 6 Commissioner Backlund asked if there should be a motion authorizing to pay the $5,000 engineering fee that was agreed upon as part of this deal. Mr. Bolin replied that is listed in part of the purchase agreement so by approving the purchase agreement that will be covered on page 4, section 8.1. Commissioner Holm noted that item 9 where it talks about the closing date occurring 15 word days is missing. MOTION by Commissioner Backlund to approve the Agreement to Purchase 7011 University Avenue NE. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Chairperson Commers said that some people use that property for parking when they use the park. He asked if there would be anything needed to be done legally to clarify this parking. Scott Hickok , Community Development Director, said that staff is working with Jack Kirk to preserve 50 stalls for future development. There was an informal arrangement to have parking in that area for soccer games. No formal arrangement was needed because it was always publicly owned. If a private development goes in that area an easement would be needed. Informational Items 1.Housing and Loan Program Update Paul Bolin , HRA Assistant Executive Director, reported that in May there were two loans closed making a total of 5 year to date. There were two remodel advisor visits which were the first two for the year. In May there were 4 Home Energy Squad visits and in next few weeks residents will receive a letter explaining the new program in the mail. Chairperson Commers said that CEE came out to his home and for $50 they put in 36 light bulbs at no charge. There were three people there for three hours and when they are done you get a fine written report. This is a good program and $50 well spent. ADJOURNMENT MOTION by Commissioner Gabel to adjourn. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:00 P.M. Respectfully Submitted, Housing and Redevelopment Authority Meeting of June 5, 2014 7 Krista Peterson, Recording Secretary ACTION ITEM HRA MEETING OF AUGUST 7, 2014 Date: July 31, 2014 To: Wally Wysopal, City Manager / Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subject: Public Hearing - Sale of 5725 3rd Street NE - HRP/Gateway West Kaleab Girma, of Real Estate Transformers, has submitted a lot reservation agreement to build a new home on the lot located at 5725 3rd Street. The builder has been designing the home with input from his buyer. Real Estate Transformers plans to build a three-level home with just over 2,200 square feet of finished living area. The home will have 4 bedrooms and 2 1/2 bathrooms. The exterior of the home will utilize a blend of maintenance free materials and incorporate shakes and stone on the front of the home. An elevation of the home can be seen on the following page. It should be noted that the blank areas shown on front of garage will be done in stone, to match the pillar on the entryway. STAFF RECOMMENDATION: Staff recommends approval of the attached resolution, authorizing the sale of the lot to Real Estate Transformers for $30,000. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2014-___ A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority sell certain residential property (the "Property") described below: PIN: Street Address 23-30-24-23-0160 5725 3rd Street NE 23-30-24-23-0161 Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program") pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted TIF District #18, Gateway West, pursuant to and in accordance with Laws of Minnesota 1995, Chapter 264, Article 5, Sections 44 through 47; Laws of Minnesota 1996, chapter 471, article 7, section 22; Laws of Minnesota 1997, chapter 231, article 10, section 13; Laws of Minnesota 2002, chapter 377, article 7, section 6; Laws of Minnesota 2008, chapter 154, article 9, section 19, and Laws of Minnesota 2010, Chapter 216, Section 4 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved for a price of not less than $30,000. HRA Resolution 2014-__Page 2 Section 4. Authorization for Execution and Delivery. 4.01. The Chairman, the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 7th DAY OF AUGUST, 2014. _____________________________________ LAWRENCE R. COMMERS - CHAIRMAN ATTEST: ____________________________________________ PAUL BOLIN - ASSISTANT EXECUTIVE DIRECTOR ACTION ITEM HRA MEETING OF AUGUST 7, 2014 Date: July 28, 2014 To: Wally Wysopal, City Manager / Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subject: Gateway Northeast - Cielo Land Sale and Development Agreement Over the past two years, the Authority worked with Trident Development on the redevelopment of the Gateway Northeast properties. Last June, the Authority approved a development agreement and authorized the sale of the property to Cielo Partners. Due to increases in the costs of constructing the project, Cielo has taken on an additional partner in the project. The Authority is being asked to acknowledge the addition of this partner to the development agreement. The attached memorandum from Attorney Casserly, provides more detail on this change. Recommendation: Staff recommends the Authority approve the resolution acknowledging ownership allocation of Cielo Partners, LLC for the Gateway Northeast Redevelopment Agreement. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2014-10 A RESOLUTION ACKNOWLEDGING THE OWNERSHIP ALLOCATION OF CIELO PARTNERS, LLC IN THE CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA AND CIELO PARTNERS, LLC Redevelopment Authority in and Section 1. Recitals. 1.01. The Authority entered 1.02. The Contract provides that persons or entities owning at least 50% of the Redeveloper also own at least 50% of Trident Development LLC. Section 2. Findings. 2.01 The Authority hereby finds that it has approved and adopted a development program known as the Redevelopment Plan for its Redevelopment Project No. 1 (the et seq., as amended and supplemented from time to time. 2.03 The Authority hereby finds that the Contract promotes the objectives set forth in its Redevelopment Program. 2.04 The Authority hereby finds that the financing arrangements for the development of the improvements proposed in the Contract requires additional investors and that the persons and entities owning at least 50% of Trident Development LLC will own less than 50% of the Redeveloper. HRA Resolution No. 2014-10 Page 2 Section 3. Approval. 3.01 It is hereby approved that the persons or entities owning at least 50% of Trident Development LLC may own less than 50% of the Redeveloper. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS 7TH DAY OF AUGUST, 2014. ___________________________________ Lawrence R. Commers, Chairman ATTEST: _________________________________ Walter T. Wysopal, Executive Director ACTION ITEM HRA MEETING OF AUGUST 7, 2014 Date: July 28, 2014 To: Wally Wysopal, City Manager / Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subject: Resolution to Create Interfund Loan - Columbia Arena As the Authority moves forward with the acquisition and demolition of the Columbia Arena property, it may recover its costs through the creation of a TIF District. The buildings are substandard, as determined in a study done by LHB Engineering, making the site eligible for inclusion in a TIF District. The Authority can pay for upfront costs through loans from its General Fund and the City. The interfund loans will be repaid from land sales proceeds and future taxes generated on the property. The attached memorandum from Attorney Casserly provides more detail on the mechanics of the loans. The attached resolutions allow for the repayment of the loans to happen. The first resolution formally authorizes the loaning of money to the future TIF District and the repayment of money to the general fund. The second resolution declares the HRA's intent to create the TIF District. Recommendation: In order to recover the Authority's investment in the acquisition and demolition of the Columbia Arena site, Staff recommends the Authority adopt the attached resolution, approving an interfund loan between the HRA General Fund and the future Columbia Arena TIF District. Further, staff recommends the Authority adopt the attached resolution determining that the Columbia Arena site is occupied by structurally substandard buildings and is to be included in a, yet to be created, TIF District. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. _______________ A RESOLUTION DETERMINING THAT A CERTAIN PARCEL IS OCCUPIED BY STRUCTURALLY SUBSTANDARD BUILDINGS AND IS TO BE INCLUDED IN A TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED by the Board of Commissioners Commissioners and Redevelopment Authority in and for the City of Fridley, Minnesota Authority follows: Section 1. Recitals. 1.01 The Authority has considered the acquisition and redevelopment of a parcel Address: 7011 University Avenue NE, Fridley, MN 55432 PIN: 11-30-24-34-0002 1.02 Minnesota Statutes, Section 469.174 et seq., as amended and supplemented redevelopment tax increment financing district. The Tax Increment Act allows for the inclusion of parcel(s) within a redevelopment district after substandard buildings have been removed by complying with Minnesota Statutes, Section 469.174, Subd. 10(d). Section 2. Findings. 2.01 The Board hereby finds that the acquisition and redevelopment of the Parcel further the goals and objectives of the Redevelopment Plan. 2.02 The Board hereby finds that the Parcel is occupied by a structure or structures that are structurally substandard, as defined in the Tax Increment Act and described in the blight report on file with City, and that the structure or structures must be demolished and removed from the Parcel. 2.03 The Board hereby finds that the Authority intends to demolish or cause to be demolished the substandard building or buildings and to prepare the Parcel for redevelopment. Section 3. Declaration of Intent. 3.01 The Board hereby declares its intent to include the Parcel within a redevelopment tax increment financing district and to file the request for certification of the Parcel as part of a district with the Anoka County Auditor within three years of when the Parcel was occupied by a substandard building or buildings. Section 4. Notice to City Auditor. 4.01 If the Authority establishes a tax increment financing district and includes the Parcel, then upon filing the request for the certification of the tax capacity of the Parcel as part of such district, the Authority shall notify the Anoka County Auditor that the original tax capacity of the Parcel must be adjusted as provided in Minnesota Statutes, Section 469.177, Subd. 1(f). PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS _____ DAY OF ____________, 2014. __________________________________ Lawrence R. Commers, Chairman ATTEST: __________________________________________ Walter T. Wysopal, Executive Director MMB: 4812-2864-0284, v. 1 2 Page 1 - Resolution No. ___________ HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. _______________ A RESOLUTION APPROVING INTERFUND LOANS ASSOCIATED WITH REDEVELOPMENT PROJECT THE PROPOSED COLUMBIA ARENA AND THE REPAYMENT OF A CITY LOAN Section 1. Recitals. 1.01 The Authority is considering the redevelopment of the property located at 7011 University Avenue NE described as PIN 11-30-24-34- 1.02 1.03 The Authority has also agreed to finance certain costs in categories identified on Exhibit A such purposes. 1.04 The Authority will loan money to finance Qualified Costs under Minnesota Statutes, Section 469.176, Subdivision 4 from its general fund or any other fund under which it has legal authority to do so, pursuant to Minnesota Statutes, Section 469.178, Subdivision 7. 1.04 The Authority intends to create a redevelopment tax increment financing district Site pursuant to Minnesota Statutes, Section 469.174, Subdivision 10 and to pay for Qualified Costs pursuant to Minnesota Statutes, Section 469.176, Subdivision 4j. 1.05 The Authority intends to reimburse itself and the City for the Qualified Costs from tax increments generated from the TIF District, once it is created, in accordance with ). Page 2 - Resolution No. ___________ 1.06 The Authority acknowledges the need to create and maintain an ongoing , as shown on Exhibit A, to reflect the continuing interfund loans and advances in accordance with the TIF Loans. Section 2. Terms of the TIF Loans. 2.01 The Authority shall repay the City Loan and the specific Authority fund from which the Qualified Costs were and are to be paid, the principal amounts as shown on Exhibit A attached hereto, together with accrued interest from the date of each expenditure at a rate which may not exceed 3.5% or the greater of the rates specified under (a) Minnesota Statutes, Sec. 270C.40 or (b) Minnesota Statutes, Sec. 549.09. The interest rate for each calendar year during the term of each TIF Loan shall be determined as of each January 1 using the maximum rate under clause (a) or (b) in effect as of that date if it is less than 3.5%. 2.02 and the City Loan shall be paid annually on December 31 of the first year of receipt of Available Tax Increment (defined in Sec. 2.03 below) and on each December 31 thereafter (the , up to and including the earlier of (a) payment in full of each TIF Loan or (b) the termination date of the TIF District. Payments shall be applied first to accrued interest and the balance to the reduction of principal. Interest accruing from the date of each expenditure to the first Payment Date shall be compounded annually on December 31 of each year and added to principal. 2.03 Payments on each TIF Loan and the City Loan are payable solely from Available Tax Increment, which shall mean the tax increment available from the TIF District and available for that purpose from any other tax increment financing district, after withholding (a) allowable Authority administrative fees, and (b) prior obligations, which shall include all general obligation or revenue bonds or notes for which the tax increment revenues of the TIF District or other tax increment financing districts are pledged. The Available Tax Increment shall be allocated between the City Loan and the TIF Loans in proportion to their share of the total outstanding principal on each Payment Date. 2.04 The principal sum and accrued interest payable under each TIF Loan and the City Loan may be prepaid in whole or in part at any time without premium or penalty. No partial prepayment of any TIF Loan or City Loan shall affect the amount or timing of any regular payments otherwise required to be made under the TIF Loans or City Loan. 2.05 Each TIF Loan and the City Loan is evidence of internal borrowing by the Authority and the City respectively in accordance with Minnesota Statutes, Section 469.178, Subdivision 7, and are limited obligations payable solely from the Available Tax Increments pledged to the payment thereof under this resolution and the City resolution approving the City Loan. The Authority shall have no obligation to pay any principal amounts of the TIF Loans and the City Loan or accrued interest thereon which may remain unpaid after the final Payment Date. 2 Page 3 - Resolution No. ___________ 2.06 The Authority may amend the terms of any TIF Loan at any time by resolution of the Board of Commissioners, and the City may amend the terms of the City Loan at any time by resolution of the City Council. Both the Authority and the City may make a determination to forgive the outstanding principal amounts and accrued interest to the extent permissible under law. Section 3. Approval. The Board of the Authority hereby approves the creation of a Register of Advances and the appointment of the Finance Director of the City to maintain the Register to reflect an accurate accounting of the City and Authority interfund loans and advances, and approves their repayment in accordance with this Resolution. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY THIS _____ DAY OF ________________, 20__. __________________________________ Lawrence R. Commers, Chairman ATTEST: __________________________________________ Walter T. Wysopal, Executive Director MMB: 4824-9341-6476, v. 1 3 Page 4 - Resolution No. ___________ EXHIBIT A REGISTER OF ADVANCES [SAMPLE FORM FOR SOURCE OF ADVANCE] QUALIFIED EXPENSE DATE PAID AMOUNT PAID Land/Building Acquisition Site Improvements/Preparation Costs Utilities Other Public Improvements Construction of Affordable Housing Authority Administrative Costs County Administrative Costs Bond Payments Paygo & all other Bonds Principal Bond Payments Paygo & all other Bonds Interest MMB: 4824-9341-6476, v. 1 4 INFORMATIONAL ITEM HRA MEETING OF AUGUST 7, 2014 Date: July 30, 2014 To: Wally Wysopal, City Manager / Executive HRA Director From: Paul Bolin, Asst. Executive HRA Director Subject: HRA Fund Balances ___ On an annual basis, for future project planning purposes, staff has worked with Attorney Casserly and Development Consultant Greg Johnson in preparing a review of the Authorities fund balances. AS we begin to think about ongoing and future projects, this helps to identify moneys available for funding these projects projects. These cash flow projections are not an accounting tool, rather they are a snap shot of the balances and obligations for each of the HRA's funds. On Thursday night, Greg Johnson will provide a brief overview of the attached cash flow projections. Attorney Casserly, Greg Johnson, Darin Nelson and I will then be available to take questions on the cash flow projections.