01-19 HRA Resolution No. 1387
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTIONNO.1387
RESOLUTION AUTHORIZING INTERNAL LOAN FOR ADVANCE OF CERTAIN COSTS IN
CONNECTION WITH THE 2020-2 TAX INCREMENT FINANCE DISTRICT: EMI
WHEREAS, the City
within the City and have created
Minnesota Statutes, Sections 469.001 through 469.047, as amended; and
WHEREAS, on the date hereof, the Authority approved a modification of the Redevelopment Plan
2020-2 Tax Increment Financing
District:Emi , a redevelopment district to be established within the Redevelopment
Project, pursuant to Minnesot;
and
WHEREAS, the City Council of the City is expected to adopt a resolution on January 26, 2021,
approving the modification of the Redevelopment Plan and the TIF Plan for the TIF District, in accordance
with the TIF Act; and
WHEREAS, the Authority may incur certain costs related to the TIF District, which costs may be
financed on a temporary basis from available Authority funds; and
WHEREAS, under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to
advance or loan money from any fund from which such advances may be legally made in order to finance
expenditures that are eligible to be paid with tax increments under the TIF Act; and
WHEREAS, the Authority has determined to pay for certain administrative costs related to the
available in the Housing and Redevelopment General Fund for such purposes; and
WHEREAS, the Authority intends to reimburse itself for the Qualified Costs from tax increments
in accordance with the terms of this
resolution; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota that:
1.The Authority shall reimburse itself for the Qualified Costs in the amount of up to
$100,000, together with interest at the rate stated below. Interest accrues on the principal amount from
the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater
of the rates specified under Minnesota Statutes, Section 270C.40 and Section 549.09 as of the date the
loan or advance is authorized, unless the written agreement states that the maximum interest rate will
fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are
from time to time adjusted. The interest rate shall be 5.0% and will not fluctuate.
2.Payments) on the Interfund Loan shall be paid semiannually
on each February 1 and August 1 (each a Payment Date), commencing on the first Payment Date on
which the Authority has Available Tax Increment (defined below), or on any other dates determined by
the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF
District.
3.Payments on this Interfund Loan are payable solely from Available Tax Increment,
which shall mean, on each Payment Date, tax increment available after other obligations have been paid,
or as determined by the Executive Director of the Authority, generated in the preceding six (6) months
with respect to the property within the TIF District and remitted to the Authority by Hennepin County,
Minnesota, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to
any outstanding or future bonds or notes issued by the Authority and secured in whole or in part with
Available Tax Increment. The Interfund Loan shall be paid prior to any pay-as-you-go notes or contracts
secured in whole or in part with Available Tax Increment, and any other outstanding or future interfund
loans secured in whole or in part with Available Tax Increment.
4.The principal sum and all accrued interest payable under this Interfund Loan are
prepayable in whole or in part at any time by the Authority without premium or penalty. No partial
prepayment shall affect the amount or timing of any other regular payment otherwise required to be made
under this Interfund Loan.
5.This Interfund Loan is evidence of an internal borrowing by the Authority in accordance
with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from
Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and
the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any
political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota
nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund
Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and
credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the
payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The
Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest
thereon, which may remain unpaid after the final Payment Date.
6.The Authority may at any time make a determination to forgive the outstanding principal
amount and accrued interest on the Interfund Loan to the extent permissible under law.
7.The Authority may from time to time amend the terms of this resolution to the extent
permitted by law, including without limitation amendment to the payment schedule and the interest rate;
provided, however, that the interest rate may not be increased above the maximum specified in
Section 469.178, subdivision 7 of the TIF Act.
8.This resolution is effective upon the approval of the modification of the Redevelopment
Plan and the approval of the TIF Plan for the TIF District by the City.
HRA Resolution No. 1387 2
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
th
Minnesota this 19day of January, 2021.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
HRA Resolution No. 1387 3