HRA RES 2013-23 INTERFUND LOAN BAE
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
HRA RESOLUTION NO. 2013-23
A RESOLUTION APPROVING AN INTERFUND LOAN TO HAZARDOUS
SUBSTANCE SUBDISTRICT NO. 20A (RER PROJECT)
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.
1.1The Authority has approved the creation of Redevelopment Project No. 1 (the
“Project Area”) and adopted a Redevelopment Plan relating thereto, pursuant to and in accordance
with Minn. Stat., Sections 469.001 to 469.047.
1.2The Authority has further approved and adopted Hazardous Substance Subdistrict No.
20A (the “Subdistrict”) within Tax Increment Financing District No. 20 and the Project Area and
approved a Tax Increment Financing Plan (the “TIF Plan”) relating thereto pursuant to and in
accordance with Minn. Stat., Sections 469.174 to 469.179, 469.001 to 469.047.
1.3The Project Area and TIF Plan relate to the property currently owned by Fridley Land
LLC, and is currently proposed for redevelopment to be known as Northern Stacks.
1.4Minn. Stat. Section 469.178, Subdiv. 7 permits the Authority to finance expenditures
permissible under Minn. Stat. Section 469.176, Subdiv. 4 and identified on Exhibit A (the “Qualified
Costs”) from its general fund or any other fund under which it has legal authority to do so.
1.5The Authority has determined it necessary to provide one or more loans from the
Authority’s general fund (the “TIF Loan”) to the Subdistrict for Qualified Costs pertaining to the
Project Area and the Subdistrict.
1.6The Authority intends to reimburse itself for the Qualified Costs from tax increments
to be generated from the Subdistrict in accordance with terms of this resolution (which terms are
referred to collectively as the “TIF Loans”).
1.7The Authority acknowledges the need to create and maintain an ongoing Register of
Advances (the “Register”), as shown on Exhibit A, to reflect the continuing interfund loans and
advances in accordance with the TIF Loans.
HRA Resolution No. 2013-13 Page 2
Section 2. Terms of the TIF Loans.
2.1The 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, together with accrued interest
from the date of each expenditure at a rate of 3.5% provided that it does not exceed the greater of the
rates specified under (a) Minn. Stat., Sec. 270.75 or (b) Minn. Stat., 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 a rate not to exceed such maximum rate in effect as of that date as described above. The
principal amount of all TIF Loans shall not exceed $4,500,000 and the outstanding principal balance
at any time may not exceed $3,500,000.
2.2Principal 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. 2.3
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 Subdistrict. 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.
2.3Payments 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 allowable Authority administrative fees and reserve funds which
together shall not exceed 12.5% and prior obligations, which shall include all general obligation or
revenue bonds or notes for which the tax increment revenues of the Subdistrict are pledged.
2.4The 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.
2.5Each TIF Loan is evidence of internal borrowing by the Authority in accordance with
Minn. Stat., Section 469.178, Subdiv. 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 repay any principal amounts of the TIF Loans or accrued interest thereon which may
remain unpaid after the final Payment Date.
2.6The Authority may amend the terms of any TIF Loan at any time by resolution of the
Board, including a determination to forgive the outstanding principal amounts and accrued interest to
the extent permissible under law.
Section 3. Approval.
3.01 The Commissioners of the Authority hereby approve the creation of a Register of
Advances and the appointment of the Finance Director of the City to maintain the Register to reflect
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HRA Resolution No. 2013-13 Page 3
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 IN
TH
AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 7 DAY OF NOVEMBER 2013.
___________________________________
Lawrence R. Commers, Chairperson
ATTEST:
___________________________________
Walter T. Wysopal, Executive Director
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HRA Resolution No. 2013-23 Page 4
EXHIBIT A
REGISTER OF ADVANCES
QUALIFIED EXPENSE DATE PAID AMOUNT PAID
MMB: 4825-9416-5526, v. 1