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8-7-2025 (2) Housing and Redevelopment Authority Meeting August 07, 2025 7:00 PM Fridley City Hall, 7071 University Avenue N.E. Agenda Call to Order Roll Call Action Items 1.Approval of Expenditures 2.Approval of the Minutes from the HRA Meeting of June 5, 2025 3.Approval of HRA Meeting Dates for 2026 4.Approval of Resolution 2025-05 -Reassignment of TIF NoteAxle Apartments Informational Items 5.Update on Housing Programs Adjournment Accessibility Notice: If you need free interpretation or translation assistance, please contact City staff. Si necesita ayuda de interpretación o traducción gratis, comuníquese con el personal de la ciudad. Yog tias koj xav tau kev pab txhais lus los sis txhais ntaub ntawv dawb, ces thov tiv tauj rau Lub Nroog cov neeg ua hauj lwm. Haddii aad u baahan tahay tarjumaad bilaash ah ama kaalmo tarjumaad, fadlan la xiriir shaqaalaha Magaalada. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of Fridley services, programs or activities. Hearing impaired persons who need an interpreter or other persons who require auxiliary aids should contact CityClerk@FridleyMN.govor (763) 572-3450. 1 Jufn!2/ AGENDA REPORT Meeting Date:August 7, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Stacy Stromberg, Assistant Executive Director Title Approval of Expenditures Background Attached are the check reports for the monthsof June & July 2025. Recommendation Staff recommend the HRA approve the expenditures for the periodJune 1 through July31, 2025. Attachments and Other Resources Check Reports Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 2 Jufn!2/ 3 Jufn!2/ 4 Jufn!3/ AGENDA REPORT Meeting Date:August 7, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Stacy Stromberg, Assistant Executive Director Title Approval of the Minutes from the HRA Meeting ofJune 5,2025 Background Recommendation Staff recommendthe HRA approve the minutes from the meeting of June 5, 2025. Attachments and Other Resources HRA Minutes June 5, 2025 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 5 Jufn!3/ Housing and Redevelopment Authority June 5,2025 7:00 PM Fridley City Hall, 7071 University Avenue NE Minutes Call to Order Chairperson Showaltercalled the Housing and Redevelopment Authority meeting to order at 7:00 p.m. Present Elizabeth Showalter Gordon Backlund Troy Brueggemeier Rachel Schwankl Absent Frank Inamagua Others Present Paul Bolin, HRA Assistant Executive Director Action Items 1. Approval of Expenditures Motionby Commissioner Backlundto approve the expenditures. Seconded by Commissioner Brueggemeier. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 2.ApprovalMay 1,2025, Meeting Minutes Motionby Commissioner Brueggemeierto approve the meeting minutesof May 1,2025,as presented. Seconded by Commissioner Backlund. Upon a voice vote, all voting aye, Chair Showalterdeclared the motion carried unanimously. 3.Annual Election of Officers Paul Bolin, HRA Assistant Executive Director, stated that the bylaws require a Chair and Vice Chair to be elected each June. Chair Showalter opened nominations for Chair. 6 Jufn!3/ Housing and Redevelopment Authority Minutes Page 2 6/5/2025 Commissioner Schwankl nominated Elizabeth Showalter for the position of Chair. Chair Showalter accepted the nomination. Commissioner Backlund nominated Troy Brueggemeier for the position of Vice Chair. Commissioner Brueggemeier accepted. There were no other nominations. Upon a voice vote, all voting aye, Chair Showalter declared the motion carried unanimously. Informational Items 4. Update on Housing Programs Mr. Bolin provided an update on the May loan activity, as well as year-to-date information on the loans and programs. He introduced Stacy Stromberg, who will become the Assistant Executive Director of the HRA. Commissioner Schwankl stated that she has received questions about the Frontdoor Grant and other programs that would be available for exterior programs. She asked if the two percent loan program was still active. Mr. Bolin confirmed that the two percent loan program is active. He stated that applications are no longer being accepted for the Frontdoor Grant program, as those applications are accepted during January and February. Adjournment Motion by Commissioner Backlund to adjourn the meeting. Seconded by Commissioner Brueggemeier. Upon a voice vote, all voting aye, Chairperson Showalter declared the motion carried and the meeting adjourned at 7:08 p.m. Respectfully submitted, Paul Bolin, Staff Liaison 7 Jufn!4/ AGENDA REPORT Meeting Date:August 7, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Approval of HRA Meeting Dates for 2026 Background The HRA typically meets the first Thursday of each month. For 2026, those dates are listed below: January 8, 2026 February 5, 2026 March 5, 2026 April 2, 2026 May 7, 2026 June 4, 2026 July 2, 2026 August 6, 2026 September 3, 2026 October 1, 2026 November 5, 2026 December 3, 2026 Recommendation Staff recommends approval of the proposed meeting dates. Attachments and Other Resources Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 8 Jufn!5/ AGENDA REPORT Meeting Date:August 7, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Executive Director Title Approval of Resolution 2025-05 Reassignment of TIF NoteAxle Apartments Background Roers Companies is selling the Axleapartment buildinglocated at MississippiStreet and University Avenue.Thebuyeristhe Real Estate Investment Group | Eaton Vance, a part of Morgan Stanley Investment Management. The Authority signed a Contract for PrivateRedevelopment with Roers Companies in 2020. The agreement addressed future sale of the property and the ability to assign the contract and TIF Note to a future buyer. The Contract requires the consent of the Authority upon receipt of an Investment Letter containing certain acknowledgments and representations of the new owner. The Investment Letter meeting the requirements was provided to the Authority on July 25, 2025. The attached Resolution and TIF Estoppel letter are the instruments for the Authority to provide consent to the sale and assignment of the Contract and TIF Documents to the new owner. Recommendation Staff recommends approval ofResolution 2025-05 Attachments and Other Resources Investment Letter EstoppelLetter Resolution 2025-05 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 9 Jufn!5/ TAX INCREMENT FINANCING (TIF) ESTOPPEL LETTER \[_______\], 2025 U.S. Bank Trust Company, National Association, as trustee for the registered Holders of Barclays Commercial Mortgage Securities LLC, Multifamily Mortgage Pass-Through Certificates, Series 2022- K150 c/o NorthMarq Capital, LLC 3500 American Boulevard West, Suite 500 Bloomington, Minnesota 55431 Re: Axle Apartments, Fridley, Anoka County, Minnesota (PIN 14-30-24-23-0100) Dear Sir or Madam: We understand that (A) Roers Fridley Apartments Owner LLC, a Delaware limited liability company (Initial Owner), developed the residential apartment project known as Axle Apartments located at 6530 University Avenue NE in the City of Fridley, Anoka County, Propertypursuant to those certain (i) Contract for Private Redevelopment dated September 3, 2020 by and between the Housing and Redevelopment Authority Initial Owner (the Contract), as amended by the First Amendment to the Contract for Private Redevelopment dated November 5, 2020 by and between the Authority and Initial Owner (the Amendment and, together with the Contract, the TIF Contract); (ii) Assessment Agreement Certification dated December 8, 2020 by and between the Authority, Initial Owner and the City Assessor of the City of Fridley, Minnesota (the Assessment Agreement); (iii) Certificate of Completion dated June 2, 2022 issued by the Authority to Initial Owner (the Certificate of Completion); (iv) Limited Revenue Tax Increment Note dated August 8, 2022 payable by the Authority to the order of Initial Owner in the principal amount of $6,489,820.00 (Original TIF Note Original TIF Note, as affected by the Allonges (as hereiTIF Note); and (v) Tax Increment Financing (TIF) Estoppel Letter dated August 8, 2022 issued by 2022 TIF Estoppel (the TIF Contract, the Assessment Agreement, the Certificate of Completion, the TIF Note and the 2022 TIF Estoppel, collectively, the TIF Documents), (B) on August 23, 2022, Initial Owner conveyed the Property and assigned the TIF Documents to Roers Fridley Apartments Owner II, LLC, a Delaware limited liability company Current Owner, and, in connection therewith, Current Owner obtained a mortgage loan (the Existing Loan liability company (which Existing Loan is now held by U.S. Bank Trust Company, National Association, as trustee for the registered Holders of Barclays Commercial Mortgage Securities LLC, Multifamily Mortgage Pass-Through Certificates, Series 2022-K150 (together with its Lender), and (C) on or about the date hereof, Current Owner intends to convey the Property and assign the TIF Documents to Bel Fridley LLC, a Delaware limited Tax Increment Financing (TIF) Estoppel Page 1 10 Jufn!5/ New Owner the Existing Loan and the TIF Documents. This Tax Increment Financing (TIF) Estoppel Letter (Estoppel) may be relied upon by Lender, by Current Owner, by New Owner, and by their respective successors and assigns. The Authority hereby certifies and agrees to the following as of the date hereof: 1. The TIF Documents, as defined in the preamble paragraph above, constitute a true, correct and complete list of all the tax increment financing (TIF) assistance agreements, documents, and instruments applicable to the Property. The TIF Documents are in full force and effect and have not been modified or amended, except as may be stated in the preamble paragraph above. 2. There are no defaults or outstanding obligations under any of the provisions of the TIF Documents by Initial Owner or Current Owner, and as developed and currently operating, the Property is in compliance with all terms and conditions of the TIF Documents. To the best of the Authoritys knowledge, no act or event has occurred or failed to occur which, with the passage of time or the giving of notice or both, would result in Initial Owner, Current Owner, or the Property being in default under the TIF Documents. Additionally, there are no unpaid or past due fees, amounts, or other charges under the TIF Documents that are due with respect to the Property. For the avoidance of doubt, the construction of the Minimum Improvements and the Public Improvements under (and in each case as defined in) the TIF Contract has been completed and there are no remaining Minimum Improvements or Public Improvements required to be constructed at the Property. 3. The Authority acknowledges and approves of the assignment and transfer of the TIF Documents from Current Owner to New Owner in connection with above- described acquisition of the Property and assumption of the Existing Loan from Current Owner. 4. The TIF Documents have not been assigned or pledged as collateral for any other obligation, except as follows: (A) (i) the assignment by Initial Owner to Current Owner in connection with Current Owne and (ii) the pledge by Current Owner to Lender in connection with the Existing Loan (collectively, Allonges (B) notwithstanding any provisions to the contrary in the TIF Contract, the Authority hereby acknowledges, approves, and permits, in connection with the above-described acquisition of the Property and assumption of the Existing Loan, (x) Current Owner to assign the TIF Documents, including without limitation all payments to be made by the Authority under the TIF Note, to New Owner, and (y) New Owner to collaterally assign the TIF Documents, including without limitation all payments to be made by the Authority under the TIF Note, to Lender. Additionally, the Authority hereby confirms and agrees that, after notice to the Authority, neither Lender, nor Lenders purchaser out of foreclosure, nor Lenders assignee out of deed-in-lieu of foreclosure, will be subject to the requirements of Section 6.3 of the TIF Contract, but Section 6.3 will apply to any subsequent assignment of the Note. Tax Increment Financing (TIF) Estoppel Page 2 11 Jufn!5/ 5. Based solely on the tax statement attached to this Estoppel as Exhibit A, (i) the ad valorem property taxes for 2025 assessed against the Property were $\[_______\]; (ii) the first half in the amount of $\[_______\] was timely paid; and (iii) the second half in the amount of $\[_______\] would be due and payable on \[_____\], 2025. The Authority has received no notice that the Propertys ad valorem property taxes are net reduced or abated pursuant to the TIF Documents. 6. The maturity date of the TIF Note is February 1, 2049. As of July 17, 2025, the outstanding principal balance of the TIF Note is $6,220,540.02, which amount is payable solely from, and only to the extent that the Authority shall have received Available Tax Increment, in accordance with the terms and conditions of the TIF Note and the TIF Contract. 7. This Estoppel shall inure to the benefit of the parties to whom this Estoppel is addressed, to Current Owner, to New Owner, and to their respective successors and assigns. 8. The undersigned are duly authorized to execute this Estoppel on behalf of the Authority. \[Remainder of page intentionally left blank; signature page follows.\] Tax Increment Financing (TIF) Estoppel Page 3 12 Jufn!5/ AUTHORITY: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By: __________________________________ Name: __________________________________ Title __________________________________ By: __________________________________ Name: __________________________________ Title __________________________________ Tax Increment Financing (TIF) Estoppel Signature Page Axle Apartments Page S-1 13 Jufn!5/ EXHIBIT A Property Tax Statement (See Attached.) 4916-5502-6262, v. 3 Tax Increment Financing (TIF) Estoppel Page Exhibit A-1 14 Jufn!5/ INVESTMENT LETTER To the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the ÐAuthorityÑ) Attention: Executive Director Re: $6,489,820.00 Limited Revenue Tax Increment Note, dated August 8, 2022 Bel Fridley LLC, a Delaware limited liability company, as proposed assignee (ÐAssigneeÑ) from Roers Fridley Apartments Owner II, LLC, a Delaware limited liability company (ÐCurrent OwnerÑ) of the above- captioned note in the principal amount of $6,489,820.00 (the ÐNoteÑ), which Note was issued pursuant to the Contract for Private Redevelopment by and between the Authority and Roers Fridley Apartments Owner LLC (ÐRedeveloperÑ) dated September 3, 2020, as amended November 5, 2020 (collectively, the ÐContractÑ), hereby represents to the Authority and to Monroe Moxness Berg PA, the AuthorityÓs counsel, as follows, in accordance with Section 6.3 of the Contract: 1. Assignee understands and acknowledges that the Note was delivered to Redeveloper and subsequently assigned to Current Owner pursuant to the Contract and that the AuthorityÓs payment obligations under the Note are limited in nature. 2. In particular, Assignee understands and acknowledges that the Note is not a general obligation of the Authority or the State of Minnesota (the ÐStateÑ), and neither the Authority, the State, nor any political subdivision thereof shall be liable on the Note, nor shall the Note be payable out of any funds or properties other than the Available Tax Increment (as defined in the Contract). 3. Assignee further understands that the Scheduled Payments (as defined in the Note) of the Note due on any Scheduled Payment Date (as defined in the Note) are payable solely from and only to the extent that the Authority shall have received, as of such Scheduled Payment Date, the Available Tax Increment. 4. Assignee further understands that any estimates of Tax Increment prepared by the Authority or its municipal advisors in connection with the Tax Increment District, the Contract, or the Note are for the benefit of the Authority and are not intended as representations on which Redeveloper, Current Owner or Assignee may rely. 5. Assignee acknowledges that neither the Authority nor Monroe Moxness Berg PA has made any representations as to the status of interest on the Note for state or federal income tax purposes. 6. The Note is being acquired for investment for AssigneeÓs own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof. 7. Assignee has no present intention of selling, granting any participation in, or otherwise distributing the Note. 8. Assignee is an Ðaccredited investorÑ within the meaning of Rule 501 of Regulation D under the Securities Act of 1933, as amended. 9. Assignee, either alone or with AssigneeÓs representatives, has knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of the prospective investment in the Note, and Assignee is able to bear the economic consequences thereof. 10. In making the decision to acquire the Note, Assignee has relied upon independent investigations and, to the extent believed by Assignee to be appropriate, AssigneeÓs representatives, including its own professional, tax and other advisors, and has not relied upon any representation or warranty from the 1 15 Jufn!5/ Authority or the County of Anoka, Minnesota (the ÐCountyÑ), or any of their officers, employees, agents, affiliates or representatives with respect to the value of the Note. 11. Assignee understands that neither the Authority nor the County has made any warranty, acknowledgment or covenant, in writing or otherwise, to Assignee regarding the tax consequences, if any, of the acquisition and investment in the Note. 12. Assignee or its representatives have been given a full opportunity to examine all documents and to ask questions of, and to receive answers from, the Authority and its representatives concerning the terms of the Note and such other information as Assignee desired in order to evaluate the acquisition of and investment in the Note, and all such questions have been answered to the full satisfaction of Assignee. 13. Assignee has evaluated the merits and risks of investment in the Note and has determined that the Note is a suitable investment for Assignee in light of its overall financial condition and prospects. 14. Assignee understands the Note will be characterized as a Ðrestricted securityÑ under the federal securities laws because the Note is being acquired in a transaction not involving a public offering and that under such laws and applicable regulations such security may not be resold without registration under the Securities Act of 1933, as amended, except in certain limited circumstances. 15. Assignee understands no market for the Note exists or is intended to be developed. 16. All capitalized terms used herein have the meaning provided in the Contract unless the context clearly requires otherwise. 99-3076384 17. AssigneeÓs federal tax identification number is: _______________________. 18. The undersigned is duly authorized to execute this Investment Letter on behalf of the Assignee. Bel Fridley LLC, a Delaware limited liability company By Brian Shuell Printed Name: __________________________________ Its: ___________________________________________ Authorized Signatory July 25th Dated: _____________, 2025 4900-7456-0086, v. 1 2 16 Jufn!5/ Resolution No. 2025 - 05 Authorizing Execution and Delivery of a Tax Increment Financing (TIF) Estoppel Letter by the Housing and Redevelopment Authority in and for the City of Fridley regarding Roers Fridley Apartments Owner II LLC Whereas, and Roers Fridley Apartments Owner II LLC (t for Private Redevelopment dated September 3, 2020, as amended by the First Amendment to the Contract for Private Redevelopment dated November 5, 2020 ; and, Whereas, The Redeveloper desires to sell the property which is the subject of the Contract to Bel , assign to New Owner the Contract, the related Assessment Agreement , and the original TIF Note (collectively, ; and, Whereas, The Contract requires that prior to the assignment of the Note, the consent of the Authority be obtained, which consent is not to be unreasonably withheld or delayed so long as the proposed New Owner meets the deliverable requirements set forth in Section 6.3 of the Contract; and. Whereas, Section 6.3 of the Contract requires that the proposed New Owner must deliver a written instrument to the Authority with certain acknowledgements and representations of New Owner; and, Whereas, New Owner has delivered to the Authority the required written instrument, in the form of an Investment Letter dated July 25, 2025, which Investment Letter conforms to the requirements of Section 6.3 of the Contract; and, Whereas, it has been proposed that the Authority execute a Tax Increment Financing (TIF) Estoppel Letter in order to document the consent of the Authority to the assignment of the TIF Documents by Redeveloper to New Owner. Now, therefore be it resolved, that, the Authority hereby finds, determines and declares as follows: 1. That the Chairperson and Executive Director of the Authority are hereby authorized to execute and deliver the Tax Increment Financing (TIF) Estoppel Letter. Passed and adopted by the Housing and Redevelopment Authority in and for the City of Fridley this 7th day of August 2025. _______________________________________________ Elizabeth Showalter Chairperson 17 Jufn!5/ Attest: __________________________________________________ Paul Bolin Executive Director 18 Jufn!5/ 4934-9013-6153, v. 1 19 Jufn!6/ AGENDA REPORT Meeting Date:August 7, 2025 Meeting Type:Housing & Redevelopment Authority Submitted By:Paul Bolin, Assistant Executive Director Title Update on Housing Programs Background On a monthly basis, staff will provide updates from CEE loan programs, remodeling advisor visits and Home Energy Squad Visits. Attachments and Other Resources Chart of Loans Issued and Remodeling Advisor Visits Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 20 Fridley Loan Summary Report Jufn!6/ Activity for Period 6/16/2025 - 7/15/2025 Application packets requested/mailed: This period:1Year-to-Date:6 16 Residential Advisor Visits:This period:1Year-to-Date: Loans currently in process for residents in your City/Neighborhood: 42 This period:Year-to-Date: Closed Loans UnitsUnits FHF 0.00 00 0.00 2-4 Unit Revolving 0.00 0.00 Total00 UnitsUnits Fridley 00 124,135.14 527 Closed End644,294.79 5,000.00 16 50,000.00 Down Payment Assistance 18,698.00 23 38,698.00 Home Betterment Deferred 0.00 00 0.00 Last Resort 0.00 01 Last Resort Emergency 3,670.00 Deferred 0.00 00 0.00 Mobile Home Closed End 0.00 00 0.00 Multi Family Exterior Closed End 20,000.00 14 Senior Deferred69,246.20 805,908.99 167,833.14 Total941 This period:UnitsYear-to-Date:Units Leveraged Funds 0.00097,132.002 MHFA FUF 0.0097,132.002 0 Total 21 # Types of Improvements Financed YTD# of Projects%of TotalTypes of Properties Financed YTD% of Total Jufn!6/ Commercial -Non-residential 12.27 11.59 Additions/Finishing off unused space Single Family Residence 3988.64 11.59 Deck Townhouse 49.09 69.52 Down Payment Assistance 34.76 Driveways 69.52 Electrical 23.17 Flooring/Carpet/Tile 11.59 Garage 46.35 Heating System 23.17 Insulation 34.76 Kitchens 23.17 Landscaping 711.11 Other Exterior Improvements 69.52 Other Interior Improvements 23.17 Plumbing 11.59 Radon Mitigation 57.94 Roof Sidewalks, Steps23.17 34.76 Siding, Stucco, Exterior Paint 23.17 Solar-PV 46.35 Windows, Doors, Storm Windows, Storm Doors 22