HRA Res 2018-14 Rescinding Res. for Col. Arena
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY, MINNESOTA
COUNTY OF ANOKA
STATE OF MINNESOTA
HRA RESOLUTION NO. 2018 - 14
A RESOLUTION AMENDING HRA RESOLUTION NO. 2014-09 AND
RESCINDING RESOLUTION NO. 2014-19 WHICH APPROVED INTERFUND
LOANS ASSOCIATED WITH THE PROPOSED COLUMBIA ARENA
REDEVELOPMENT PROJECT, AUTHORIZING REPAYMENT OF A CITY
LOAN AND AUTHORIZING EXPENDITURES
BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and
Redevelopment Authority in and for the City of Fridley (the "Authority") as follows:
Section 1. Recitals.
1.01 The Authority at its regularly scheduled meeting on August 7, 2014 approved
HRA Resolution No. 2014-09 (the "HRA Resolution No. 2014-09").
1.02 The Authority at its regularly scheduled meeting on December 4, 2014 approved
HRA Resolution 2014-19 (the “HRA Resolution 2014-19”).
1.03 The City at its regularly scheduled meeting on August 11, 2014 adopted
Resolution No. 2014-54 (the “Resolution No. 2014-54”).
1.04 The City at its regularly scheduled meeting on December 8, 2014 adopted
Resolution No. 2014-92 (the “Resolution No. 2014-92”).
1.05 In accordance with the above resolutions the City advanced $1,500,000 (the
“City Loan”) to the Authority to finance Qualified Costs. The City Loan was to be repaid from tax
increment.
1.06 TIF District No. 23 was approved by the Authority on September 1, 2016, by the
City on September 12, 2016 and certified by Anoka County on March 17, 2017.
1.07 The Authority now wishes to repay the City Loan from its General Fund, rescind
its Resolution No. 2014-19 and amend its Resolution No. 2014-09.
HRA RESOLUTION NO. 2018-14 PAGE 2
1.08 To facilitate development in TIF District No. 23, it is necessary to install a water
main for which the City will reimburse the Authority.
Section 2. Authorization and Approval for Repayment of City Loan.
2.01 The Authority shall repay the City Loan from its General Fund as follows:
a. $1,000,000 on or before December 31, 2018.
b. $500,000 with interest at 4.0% from January 1, 2019 payable in 25 equal annual
installments of $30,775 commencing December 31, 2019 and continuing through December 31,
2043.
Section 3. Rescission of HRA Resolution 2014-19.
3.01 HRA Resolution 2014-19 is hereby rescinded.
Section 4. Amendment to HRA Resolution 2014-09.
4.01 Section 2 of HRA Resolution 2014-09 is restated as Section 4 to read as
follows:
Section 4. Terms of the TIF Loans.
4.01 The Authority shall repay the specific Authority fund from which the Qualified
Costs were and are to be paid, the principal amounts already incurred and to be incurred as
shown on Exhibit A attached hereto, together with accrued interest commencing January 1,
2019 or from the date of each expenditure subsequent to January 1, 2019 at a rate which may
not exceed 4.0% 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 4.0%.
4.02 Principal and interest payments (the “Payments”) for each TIF Loan shall be
paid annually on December 31 of the first year of receipt of Available Tax Increment (defined
in Sec. 4.03 below) and on each December 31 thereafter (the “Payment Dates”), 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 January 1, 2019 or the date of each expenditure
occurring subsequent to January 1, 2019 to the first Payment Date shall be compounded
annually on December 31 of each year and added to principal.
4.03 Payments on each TIF Loan are payable solely from Available Tax Increment,
which shall mean the tax increment available from the TIF District and available for that
HRA RESOLUTION NO. 2018-14 PAGE 3
purpose, at the Authority’s discretion, 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.
4.04 The principal sum and accrued interest payable under each TIF Loan may be
prepaid in whole or in part at any time without premium or penalty. No partial prepayment of
any TIF Loan shall affect the amount or timing of any regular payments otherwise required to
be made under the TIF Loans.
4.05 Each TIF Loan is evidence of internal borrowing by the Authority 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.
The Authority shall have no obligation to pay any principal amounts of the TIF Loans or
accrued interest thereon which may remain unpaid after the final Payment Date.
4.06 The Authority may amend the terms of any TIF Loan at any time by resolution
of the Board of Commissioners. The Authority may make a determination to forgive the
outstanding principal amounts and accrued interest to the extent permissible under law.
Section 5. Approvals.
5.01 The Board of the Authority hereby approves the following:
a. 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 Authority
interfund loans and advances, and approves their repayment in accordance with this
Resolution.
b. The expenditure from its General Fund in an amount not to exceed $200,000 to
pay for a water main project in TIF District No. 23 for which the City will reimburse the
Authority.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
TH
FOR THE CITY OF FRIDLEY THIS 6 DAY OF DECEMBER, 2018.
__________________________________________
STEPHEN H. EGGERT – ACTING CHAIRPERSON
ATTEST:
__________________________________________
WALTER T. WYSOPAL – EXECUTIVE DIRECTOR
HRA RESOLUTION NO. 2018-14 PAGE 4
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
4815-5056-1153, v. 1