HomeMy WebLinkAboutIV.B - Resolution - Deferral of HEDRA Loan Payments
HEDRA MEMORANDUM
To: HEDRA Commissioners
From: John Hinzman, Community Development Director
Date: April 9, 2020
Item: Resolution: Defer HEDRA Loan Payments
Action Requested
Adopt the attached resolution deferring interest accrual and payment obligations for HEDRA
Loans in response to the COVID-19 Pandemic.
Background
HEDRA issues loans to commercial and residential property owners to assist with needed
repairs and improvements. The COVID-19 Pandemic has created economic hardship through
the restriction of business operation. There are currently 14 loans with current payment
obligations totaling $211,253.43 as of December 31, 2019. The deferral would continue until
December 31, 2020 or upon further extension by HEDRA.
In response to the Pandemic, Staff ceased collection of HEDRA Loan payments and is seeking
formal action by HEDRA to defer payments and interest.
Attachment
• Resolution Deferring HEDRA Loan Payments
CITY OF HASTINGS
DAKOTA AND WASHINGTON COUNTY, MINNESOTA
HEDRA RESOLUTION NO. 2020-06
A RESOLUTION OF THE HASTINGS ECONOMIC DEVELOPMENT AND
REDEVELOPMENT AUTHORITY (HEDRA) DEFERRING ACCRUAL OF INTEREST AND PAYMENT
OBLIGATIONS FOR ALL HEDRA LOANS
WHEREAS, The Hastings Economic Development and Redevelopment Authority (HEDRA) is a
local governmental agency with the authority to grant financial assistance (grantor) to businesses
(developer or recipient) under Minnesota Statutes Chapters 116J.993 and 469; and
WHEREAS, to further economic development goals within the City of Hastings, HEDRA has
established commercial and residential loan programs (HEDRA Loans) to aid property owners within the
City of Hastings; and
WHEREAS, HEDRA has adopted Financial Assistance and Business Subsidy Criteria through the
adoption of Resolution No. 2-2009 on February 12, 2009, further amended by HEDRA on October 11,
2018 through the adoption of Resolution No. 2018-05 to establish criteria for granting HEDRA Loans;
and
WHEREAS, HEDRA Loans are memorialized through the execution of a loan agreement and
recording of a mortgage to secure interest; and
WHEREAS, Minnesota Executive Order 20-01 Declaring a Peacetime Emergency and
Coordinating Minnesota’s Strategy to Protect Minnesotans from COVID-19 was executed by the
Governor on March 13, 2020 in response to the COVID-19 Pandemic; and
WHEREAS, subsequent Executive Orders executed by the Governor have restricted operation of
commerce, causing financial hardship to the local economy; and
WHEREAS, on March 16, 2020 the City of Hastings declared a Public Health Emergency resulting
rom imminent health conditions caused by the presence of the Coronavirus Disease (COVID-19); and
WHEREAS, HEDRA seeks to provide assistance to grantees of HEDRA Loans impacted by the
COVID-19 Pandemic.
.
NOW THEREFORE BE IT RESOLVED, that HEDRA takes the following actions related to HEDRA
Loans in response to the effects of the COVID-19 Pandemic:
1) Principal payments due on HEDRA Loans from the date of this resolution through December
31, 2020 (the “Deferral Period”) shall be deferred until the end of the Deferral Period and
thereafter the principal balances due, including the deferred principal payments, shall be re-
amortized over the then remaining term of the loans. No interest shall accrue on HEDRA
Loans during the Deferral Period and any interest that would have otherwise accrued or
been payable during the Deferral Period shall be forever waived. The Deferral Period may
be extended by a subsequent resolution of HEDRA.
ADOPTED BY THE HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY
THIS 9th DAY OF APRIL, 2020.
AYES:
NAYS:
ABSENT:
Martha Sullivan, President
Rusty Fifield, Secretary
This instrument drafted by:
City of Hastings (JH)
101 East 4th Street
Hastings, MN 55033
