HomeMy WebLinkAboutResolution - 96-29 - Redevelopment Project Area No. 4 & T.I.F. Dist. No. 12 - 02/06/1996 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY,NIINNESOTA
RESOLUTION NO. 96-29
A RESOLUTION RELATING TO REDEVELOPMENT PROJECT AREA NO.4 AND
TAX INCREMENT FINANCING(QUALIFIED HOUSING)DISTRICT NO. 12;
APPROVING THE PROJECT PLAN
AND A TAX INCREMENT FINANCING PLAN THEREFORE
BE IT RESOLVED by the City Council of the City of Eden Prairie,Minnesota(the
"City"), as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority of the City of Eden Prairie,Minnesota
(the"Authority"),pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended,has
prepared and presented to the City for approval,a redevelopment plan, as defined in Minnesota
Statutes, Section 469.002, subdivision 16, designated as the Project Plan(the"Project Plan")for
Redevelopment Proj ect Area No. 4 (the"Proj ect Area"),and a redevelopment proj ect to be
undertaken pursuant thereto, as defined in Minnesota Statutes, Section 469.002, subdivision 14
(the"Redevelopment Project"). The Project Plan has been transmitted to the planning agency of
the City,which has determined that the Project Plan conforms to the general plan for the
development of the City. Pursuant to Minnesota Statutes, Section 469.028,the approval of the
Project Plan is for the consideration of this Council. On February 6, 1996,this Council conducted
a public hearing on the desirability of approving the Project Plan. Notice of the public hearing
was duly published as required by law in the&d6 0' &,%the official newspaper of the City,on
January 25, 1996.
1.02. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the"Act"),the
Authority has adopted a tax increment financing plan for the proposed Tax Increment Financing
(Qualified Housing)District No. 12 (the"Financing Plan"),which is now before this Council for
approval. The Financing Plan was prepared in conjunction with the Project Plan and is the
proposed method for financing the public redevelopment costs of certain of the redevelopment
activities to be undertaken pursuant to the Project Plan. The proposed Tax Increment Financing
(Qualified Housing)District No. 12 (the"District") comprises one tax parcel 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 February 6, 1996, conducted a public hearing on the
desirability of approving the Financing Plan,in conjunction with the public hearing conducted on
the proposed Project Plan. Notice of the public hearing was duly published as required by law in
the &6 0064*V u,,&, the official newspaper of the City,on January 25, 1996.
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 member of the Board of County Commissioners of Hennepin County who represents 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 the county commissioner and a solicitation of the
commissioner's comments with respect to the District.
Section 2. Approval of Project Plan. On the basis of the proposed Project Plan adopted
by the Authority and the information elicited from consultation with the planning agency and at
the public hearing referred to in Section 1.01,it is hereby found,determined and declared:
2.01 The Project Plan proposes that the City undertake certain redeve'lopment activities
for the purpose of encouraging the development of a low and moderate income housing project in
the Redevelopment Project. The Council hereby finds that the proposed Project Plan would
improve the Redevelopment Project by retarding blight, encouraging private redevelopment of
property therein,thereby increasing low and moderate income housing opportunities and the tax
base of the City and overlapping taxing jurisdictions.
2.02. This Council hereby finds that the private redevelopment proposed to be encourages
in the Redevelopment Project pursuant to the proposed Project Plan would not occur without the
financial aid to be provided pursuant to the Financing Plan since private developers could not
economically develop the District without the proposed redevelopment activities.
2.03. This Council hereby finds that the Project Plan will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the redevelopment of the District by
private enterprise. The redevelopment activities contemplated in the Project 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.
2.04. This Council hereby finds that the redevelopment activities proposed by the Project
Plan conform to the general plan for the development of the City as a whole. The redevelopment
activities are compatible with the City's zoning ordinances and other related regulations and
encourage efficient use of existing infrastructure as set forth in the City's Land Use Plan. It is in
the best interests of the City to approve the Project Plan.
2.05. Upon review of the Project Plan,the information elicited from the planning agency
and at the public hearing, and on the basis of the findings made in Sections 2.01 to 2.04,this
Council hereby approves the Project Plan.
Section 3. 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:
3.01. The Financing Plan provides the means to finance certain public redevelopment
costs of the Redevelopment Project,including the redevelopment activities described in Section
2.01 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 within the Redevelopment Project which the City intends
to acquire. The Financing Plan also estimates the public redevelopment costs of the
Redevelopment Project,the amount of bonded indebtedness to be incurred(not to exceed
$375,000),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.
3.02. 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 only of housing for individuals or
families of low or moderate income,and no commercial or other uses are contemplated therein.
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).
3.03. This Council hereby finds that the private redevelopment proposed to be
encouraged in the Redevelopment Project pursuant to the proposed Project 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 the redevelopment activities generally described in Section
t u
2.01 and proposed by the Project 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.
3.04. 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.
3.05. 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 Project 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.
3.06. 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.
3.07. Upon review of the Financing Plan,the information elicited at the public hearing
and on the basis of the findings in Sections 3.01 to 3.06,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. 12."
Passed by the City Council this 6th day of February, 1996.
. Jean Harris,Mayor
Attest:
Jo e, City Finance Director/Clerk
CERTIFICATE AS TO RESOLUTION
I,the undersigned,being the duly qualified and acting recording officer of the City of Eden
Prairie,Minnesota(the"City"),hereby certify that the attached resolution is a true copy of
Resolution No. -a , entitled: "RESOLUTION RELATING TO REDEVELOPMENT
PROJECT AREA NO. 4 AND TAX INCREMENT FINANCING(QUALIFIED HOUSING)
DISTRICT NO. 12; APPROVING THE PROJECT PLAN AND A TAX INCREMENT
FINANCING PLAN THEREFORE"(the"Resolution"),on file in the original records of the City
in my legal custody;that the Resolution was duly adopted by the City Council of the City at a
meeting on February 6, 1996, and that the meeting was duly held by the City Council and was
attended throughout by a quorum,pursuant to call and notice of such meeting given as required
by law; and that the Resolution has not as of the date hereof been amended or repealed.
WITNESS my hand officially this 6th day of February, 1996.
JoW. rave, City Finance Director/Clerk