09-21 HRA Resolution No. 1371 - Amended (03/21/2022)
HRA Resolution No. 1371 – Amended 1
HRA RESOLUTION NO. 1371 – AMENDED
RESOLUTION AUTHORIZING INTERNAL LOAN FOR ADVANCE OF CERTAIN COSTS IN
CONNECTION WITH THE 2020-1 TAX INCREMENT FINANCE DISTRICT: HENLEY II
WHEREAS, the City of Richfield, Minnesota (the “City”) and the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota (the “Authority”) have
established, and the Authority administers, the Richfield Redevelopment Project (the
“Redevelopment Project”) located within the City and have created a Redevelopment Plan (the
“Redevelopment Plan”) therefor, pursuant to 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 and approved a tax increment financing plan (the “TIF Plan”) for the 2020-1
Tax Increment Financing District: Henley II (the “TIF District”), a housing district to be
established within the Redevelopment Project, pursuant to Minnesota Statutes, Sections
469.174 through 469.1794, as amended (the “TIF Act”); and
WHEREAS, the City Council of the City is expected to adopt a resolution on September 22,
2020, 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 proposed TIF District (the “Qualified Costs”), which costs may be financed on a temporary
basis from funds available in the Housing and Redevelopment Authority General Fund for such
purposes; and
WHEREAS, the Authority intends to reimburse itself for the Qualified Costs from tax
increments derived from the property within the TIF District (the “Interfund Loan”) 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
$25,000, 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.
HRA Resolution No. 1371 – Amended 2
2. Principal and interest (the “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. 1371 – Amended 3
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 21st day of March, 2022.
Mary B. Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary