HomeMy WebLinkAboutIV.C - HEDRA Resolution No. 2021-02 - Extending Waiver of HEDRA RLF Payments through December 31, 2021CITY OF HASTINGS
DAKOTA AND WASHINGTON COUNTY, MINNESOTA
HEDRA RESOLUTION NO. 2021-02
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, on April 9, 2020, HEDRA adopted Resolution #2020-06 deferring HEDRRA loan
payments through December 31, 2020; and
WHEREAS, HEDRA seeks to continue to provide relief 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 January 1, 2021 through December 31, 2021
(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 14th DAY OF January, 2021.
AYES:
NAYS:
ABSENT:
Martha Sullivan, President
Eric Maass, Secretary
This instrument drafted by:
City of Hastings (JH)
101 East 4th Street
Hastings, MN 55033