HomeMy WebLinkAboutResolution - 2002-76 - TIF District No. 18 & TIF Plan for Heights at Valley View Project - 04/16/2002 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO. 2002-76
A RESOLUTION CREATING TAX INCREMENT FINANCING DISTRICT NO. 18 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. Pursuant to the Minnesota Tax Increment Financing Act, Minnesota Statutes
Sections 469.174 to 469.179, as amended (the "Act"), the City Council
established the following Tax Increment Financing Districts: Tax Increment
Finance District No. 13 on December 17, 1996; Tax Increment Financing District
No. 14 on August 5, 1997; Tax Increment Financing District No. 15 and 16 on
July 20, 1999; Tax Increment Financing District No. 17 March 20, 2001. The Tax
Increment Financing Plan for Tax Increment District No. 18 is now before this
Council for approval. The Financing Plan outlines the proposed method for
financing certain public costs associated with the project. The proposed Tax
Increment Financing ("Qualified Housing"), District No. 18 (the "District"),
comprises two tax parcels as described in the Financing Plan.
1.02. 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 April 16,
2002, 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 April 4, 2002. 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.
1.03. 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 vrith county commissioner and
solicitation of the commissioner's comments-,`rith 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 costs that benefit
the District. The Financing Plan contains 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 ($4,315,000.00), 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. 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 development proposed in District
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, which
increases the financial feasibility of the proposed development,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 development activities
contemplated in the District would 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.
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. 18.
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 16th day of April, 2002.
N ncy a- en , yor
Attest
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Kathle6i Porta, City Clerk