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HomeMy WebLinkAboutResolution - 2001-50 - TIF District #17 for the Rolling Hills Senior Project - 03/20/2001 CITY OF EDEN PRATRM HENNEPIN COUNTY,NIINNESOTA RESOLUTION NO.2001-50 A RESOLUTION RELATING TO REDEVELOPMENT PROJECT NO. 5 AND CREATING TAX INCREMENT FINANCING DISTRICT NO. 17 AND APPROVING THE TAX INCREMENT FINANCING PLAN RELATED THERETO. BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the "City'), as follows: Section 1. Recitals. 1.01. On December 17, 1996, the City, pursuant to Minnesota Statutes Section 469.001 to 469.047, as amended, approved a redevelopment plan, as defined in Minnesota Statutes Section 469.002, subdivision 16, designated as the Redevelopment Plan (the"Redevelopment Plan") for redevelopment Project No. 5 (the"Project Area") and a redevelopment project to be undertaken pursuant thereto, as defined in Minnesota Statutes Section 469.002, Subdivision 14 (the "Redevelopment Project"). 1.02. Pursuant to the Minnesota Tax Increment Financing Act, Minnesota Statutes Sections 469.174 to 469.179, as amended (the "Act'), this Council established Tax Increment Financing District No. 13 and adopted a Tax Increment Financing Plan therefor(the"Original Plan") on December 17, 1996. Pursuant to the Act, as amended (the "Act'), this Council established Tax Increment Financing District No. 14 and adopted a Tax Increment Financing Plan therefor on August 5, 1997. Also pursuant to the Act, this Council established a Tax Increment Financing District No. 15 and 16 on July 20, 1999. The proposed Tax Increment Financing ("Qualified Housing"), District No. 17 (the "Financing Plan"), is now before this Council for approval. The Financing Plan has been prepared in accordance with r the Redevelopment Plan and is the proposed method for financing certain public redevelopment costs of certain of the redevelopment activities to be undertaken pursuant to the Redevelopment Plan. The proposed tax increment financing ("Qualified Housing"), District No. 17 (the "District"), comprises two tax parcels within the redevelopment project as described in the financing plan. 1.03. Members of the Board of County Commissioners of Hennepin County and of the Board of Education of Independent School District No. 272 have been given an opportunity to meet with the City and comment on the Financing Plan. Pursuant to Minnesota Statutes Section 469.175, Subdivision 3, this Council on March 20, 2001, conducted a public hearing on the desirability of approving the Financing Plan. Notice of the public hearing was duly published as required by law in the Eden Prairie News, the official newspaper of the City, on February 22, 2001. The City has not received written comments on the Financing Plan from the county and the school district after providing the county and the school district boards with information on the fiscal and economic implications of the Financing Plan not less than 30 days before the date of the public hearing. 1.04. In addition to the notice and opportunity described in Section 1.03, as required by Minnesota Statutes Section 469.175, Subdivision 2a, the City, not less than 30 days before the publication of the notice of public hearing referred to in section 1.03 delivered written notice to the members of the Board of County Commissioners of Hennepin County who represent the District. The notice contained a general description of the boundaries of the District, the proposed development activities to be undertaken therein, an offer by representatives of the City to meet and discuss the proposed District with county commissioner and solicitation of the commissioner's comments with respect to the District. Section 2. Approval of Financing Plan. On the basis of the Financing Plan and the information elicited at the public hearing referred to in Section 1.03,it is hereby found, determined and declared: 2.01. The Financing Plan provides the means to finance certain public redevelopment costs of the Redevelopment Project, including the redevelopment activities described in the Redevelopment Plan which benefit the District. The Financing Plan contains a statement of objectives for the improvement of the ' Redevelopment Project, a statement as to the development program for the District and a statement of the property included within the TIF District. The Financing Plan also estimates the public costs of the Financing Plan to be ($3,300,920.00), the sources of revenues to finance or otherwise pay public costs of the District, the most recent net tax capacity of taxable real property within the District, the captured net tax capacity of the District at completion and the duration of the District. The Financing Plan also describes and identifies the development activities to be undertaken or expected to be undertaken in the District. The Financing Plan further contains alternative estimates of the impact of the proposed tax increment financing on the net tax capacities of all taxing jurisdictions in which the District is located. All the captured tax capacity is necessary for the objectives of the District. 2.02. This Council hereby finds that the District is a geographic area within a"project" as defined in Minnesota Statutes Section 469.174, Subdivision 8, and is a proper tax increment financing district within the meaning of Section 469.174, Subdivision 9. This Council further finds, based on the information in the Financing Plan and representations of the developer, that the District consists of a project intended for occupancy, in part, by persons or families of low and moderate income, as defined in Chapter 462A, Title II of the National Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act of 1937, as amended, Title V of the Housing Act of 1937, as amended, or similar federal legislation and the regulations promulgated thereunder. As evidence thereof, the developer represents that the project qualifies for the low-income housing tax credit under Section 42 of the Internal Review Code of 1986, as amended. The project to be constructed in the District consists of housing for individuals or families of low or moderate income and commercial uses. The fair market value of the commercial improvements do not exceed 20% of the total fair market value of the planned improvement in the Development Plan. 2.03. Therefore, the District qualifies as a "housing district" within the meaning of Minnesota Statutes Section 469.174, Subdivision 11. The income limitations of Section 469.1761 of the Act are applicable to tenants in the project, because the District is not located in a targeted area as defined in Minnesota Statutes Section 462C.02, Subdivision 9, Clause(e). 2.04. This Council hereby finds that the private redevelopment proposed to be encouraged in the Redevelopment Project pursuant to the Redevelopment Plan would not, in the opinion of this Council, occur solely through private investment within the reasonably foreseeable future and that therefore the use of tax increment financing is deemed necessary. Without tax increment financing of the costs of redevelopment activities generally described by the Redevelopment Plan which increases the financial feasibility of the proposed redevelopment, private investment would not develop the District within the reasonably foreseeable future. The studies and analyses supporting this finding are identified in the Financing Plan. 2.05. This Council hereby finds that the Financing Plan conforms to the general plan for the development of the City as a whole. The development is compatible with the City's zoning ordinances and other related regulations and encourages efficient use of existing infrastructure as set forth in the City's Land Use Plan. 2.06. This Council hereby finds that the Financing Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the District by private enterprise. The redevelopment activities contemplated in the Redevelopment Plan would help to retard blight in the Redevelopment Project and provide an increase in low and moderate income housing opportunities in the City and enhance the tax base of the City. 2.07. As required by Section 49.176, Subdivision 4d, it is expected that all of the tax increment to be derived from the District will be used to finance costs of the low and moderate income housing project, including the costs of public improvements directly related thereto and allocable administration expenses of the Redevelopment Project. 2.08. Upon review of the Financing Plan, the information elicited at the public hearing and on the basis of the findings in Sections 2.01 to 2.06, this Council hereby approves the Financing Plan and the establishment of the District as a tax increment financing district in the City, to be denominated "Tax Increment Financing(Qualified Housing)District No. 17. Section 3. Additional Approvals. It is contemplated the public financial contribution contemplated in the Tax Increment Financing Plan, including but not limited to tax increment financing may be secured by way of a mortgage on the property in the District. It is further contemplated that the developer will obtain construction and/or permanent financing and that it will be necessary for any security granted to the City and/or Authority to be subordinated to that of the developer's lender. The Approval hereby given to the Tax Increment Financing Plan includes approval and the execution by the appropriate officers of the City of such additional documents necessary to acquire a secured interest in the property and to subordinate such interest, to the lien of the developer's construction and/or permanent financing. The Mayor and City Manager are authorized and directed to prepare and furnish certified copies of all proceedings and records of the City relating to this transaction and such other affidavits and certificates as may be required to show the facts relating thereto as such facts appear on the books and records in the officers' custody and control or as otherwise known to them; all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. The approval hereby given to the various documents referred to above includes the approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City's counsel and the officials authorized herein to execute said documents prior to their execution; and said officials are hereby authorized to approve said changes on behalf of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. Passed by the City Council this 20th day of March,2001. ean L.Harris,Mayor Attest: L Kat een Porta, City Clerk