Resolution No. 2023-09, Approving Interfund Loans Associated with the Proposed Moon Plaza Redevelopment Project
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY, MINNESOTA
COUNTY OF ANOKA
STATE OF MINNESOTA
HRA RESOLUTION NO. 2023-09
APPROVING INTERFUND LOANS ASSOCIATED WITH THE
PROPOSED MOON PLAZA REDEVELOPMENT PROJECT
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 is considering the redevelopment of the property located at
6257 University Avenue NE, Fridley, MN with the following Anoka County PINs: 14-30-
24-34-0004 and 14-30-24-34-0005 (the “Moon Plaza Site” or “Site”).
1.02 The Authority has agreed to finance certain costs in categories identified on
Exhibit A (the “Qualified Costs”) on a temporary basis from Authority funds available for
such purposes.
1.03 The Authority will loan money not to exceed Two Hundred Thousand and
No/100 Dollars ($200,000.00) to finance Qualified Costs under Minnesota Statutes,
Section 469.176, Subdivision 4 from its general fund or any other fund under which it has
legal authority to do so, pursuant to Minnesota Statutes, Section 469.178, Subdivision 7.
1.04 The Authority intends to create a redevelopment tax increment financing
district (the “TIF District”) on the Site pursuant to Minnesota Statutes, Section 469.174 to
468.179.
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”).
HRA Resolution No. 2023-09 Page 2
1.06 The Authority acknowledges the need to create and maintain an ongoing
Register of Advances (the “Register”), in a similar form 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 4% or the greater of the rates specified under (a) Minnesota
Statutes, Sec. 270C.40 or (b) Minnesota Statutes, Sec. 549.09. The principal amount of the
TIF Loans shall not collectively exceed Two Hundred Thousand and No/100 Dollars
($200,000.00). 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%.
2.02 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. 2.03 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 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, 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.
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, Section 469.178, Subdivision 7, and are limited
obligations payable solely from the Available Tax Increments pledged to the payment
HRA Resolution No. 2023-09 Page 3
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. The Authority may make a determination to
forgive the outstanding principal amounts and accrued interest to the extent permissible
under law.
Section 3. Approval.
3.01 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 Authority interfund loans and advances, and
approves their repayment in accordance with this Resolution.
\[Remainder of Page Intentionally Blank - Signature Follows\]
HRA Resolution No. 2023-09 Page 4
Passed and adopted by the Housing and Redevelopment Authority in and for the
City of Fridley this 6th day of April, 2023.
____________________________________
Elizabeth Showalter - Chairperson
ATTEST:
__________________________________________
Walter T. Wysopal - Executive Director
HRA Resolution No. 2023-09 Page 5
EXHIBIT A
REGISTER OF ADVANCES
QUALIFIED EXPENSE DATE PAID AMOUNT PAID
Administrative Costs
4894-3013-5122, v. 2