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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 Rescission of HRA Resolution 2014-19. 3.01 HRA Resolution 2014-19 is hereby rescinded.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