HRA RES 2002-03 - 00002126RESOLUTION NO. HRA 3-2002
RESOLUTION APPROVING 1NTERFUND LOAN BETWEEN GENERAL FUND
AND TIF DISTRICT #6
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. The Authority is required by Minnesota Statutes 2001 Supplement, Section 469.174, Subdivision 3, and
Section 469.178, Subdivision 7, to approve by resolution any interfund loans made after July 31, 2001, that are to
be repaid with tax increment from any of the Authority's tax increment financing districts.
1.02. The Authority is required to disclose by resolution the terms of the interfund loan, i.e., the principal amount
of loan, interest rate, and length of loan.
1.03. The Authority is required to limit the principal amount of the interfund loan to the largest negative cash
balance that e�sted at any one time in the fund receiving the loan..
Section 2. F�.
2.01. The Authority hereby finds it necessary to create an interfund loan between its general fund and the fund for
TIF District #6 ("Lake Pointe"). This loan is for the express purpose of providing financing for Lake Pointe
projects until such time that enough tax increment is generated in the TIF district to pay back the interfund loan.
Section 3. Adoption of Interfund Loan.
3.01. The following are the terms of the interfund loan to be approved:
Loan Amount: $300,000
Interest Rate: 5%
Length of Loan: 23 years or until December 31, 2025
3.02 The Authority will create and maintain a loan payment schedule for the interfund loan that will be approved
by this resolution.
3.03 The Lake Pointe TIF district may pay off the loan early if sufficient tax increment is available.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY 1N AND FOR THE
CITY OF FRIDLEY, MINNESOTA, THIS 2"d DAY OF AUGUST, 2002.
LAWRENCE R. COMMERS - CHAIRPERSON
ATTEST:
WILLIAM W. BURNS — EXECUTIVE DIRECTOR