HRA Res 2021-05 Interfund Loans/Old Central Proj
Resolution No. 2021-05
Approving Interfund Loans Associated with the Old Central Redevelopment Project
Be it resolved, by the Board of Commissioners (Commissioners) of the Housing and
Redevelopment Authority in and for the City of Fridley (Authority) as follows:
Section 1. Recitals.
1.01 The Authority is considering the redevelopment of the area east of Old Central and
south of Mississippi Street (Site).
1.02 The Authority has agreed to finance certain costs in categories identified on Exhibit
A (Qualified Costs) on a temporary basis from Authority funds available for such purposes.
1.03 The Authority has already advanced or loaned money and will continue to advance
or loan money to finance Qualified Costs under Minnesota Statutes § 469.176, subd. 4 from its
general fund or any other fund under which it has legal authority to do so, pursuant to Minnesota
Statutes § 469.178, subd. 7.
1.04 The Authority intends to create a tax increment financing district (TIF District) on
the Site pursuant to Minnesota Statutes, §§ 469.174 to 469.179.
1.05 The Authority intends to reimburse itself for the Qualified Costs from tax
increments generated from the TIF District, once it is created, in accordance with terms of this
resolution (which terms are referred to collectively as the “TIF Loans”).
1.06 The Authority acknowledges the need to create and maintain an ongoing Register
of Advances (Register), 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 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 the greater
of the rates specified under (a) Minnesota Statutes § 270C.40 or (b) Minnesota Statutes § 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.
2.02 Principal and interest payments (Payments) for each TIF Loan shall be paid annually
on December 31 of the first year of receipt of Available Tax Increment (defined in § 2.03 below)
and on each December 31 thereafter (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 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 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 TIF 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 a TIF District is pledged.
2.04 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.
2.05 Each TIF Loan is evidence of internal borrowing by the Authority in accordance with
Minnesota Statutes § 469.178, subd. 7, and is a limited obligation 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.
2.06 The Authority may amend the terms of any TIF Loan at any time by resolution of
the Board of Commissioners, including 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 interfund loans and advances, and approves their repayment
in accordance with the TIF Loans.
Passed and adopted by the Housing and Redevelopment Authority of the City of Fridley
th
this 6 day of May, 2021.
_______________________________________________
William B. Holm - Chair
ATTEST:
__________________________________________
Walter T. Wysopal - Executive Director
Exhibit A
Register of Advances
Qualified Expense Date Paid Amount Paid
Land/Building Acquisition
Relocation
Site Improvements/Preparation Costs
Installation of Public Utilities
Parking Facilities
Streets and Sidewalks
Public Park Facilities
Capitalized Interest
Other – Interest Expense
Other – Contingency
Administrative Costs