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HomeMy WebLinkAboutResolution - 2006-91 - Adopting the Amended Tax Increment Financing Plan and an Amended Project Management Agreement - 07/18/2006 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2006-91 RESOLUTION RELATING TO PRAIRIE VILLAGE REDEVELOPMENT PROJECT AREA NO. 2 AND TAX INCREMENT FINANCING DISTRICT NO. 10; APPROVING THE AMENDED TAX INCREMENT FINANCING PLAN THEREFOR AND AN AMENDED PROJECT MANAGEMENT AGREEMENT RELATING THERETO BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The City, on November 5, 1985, approved a redevelopment plan(the "Project Plan") and redevelopment project of the Housing and Redevelopment Authority in and for the City of Eden Prairie (the "Authority"), under Minnesota Statutes, Sections 469.001 to 469.047 (the "Project Plan"), designated as Prairie Village Redevelopment Project Area No. 2 (the "Redevelopment Project"). The City approved on February 18, 1986, and amended on March 7, 1989, a tax increment financing plan and interest rate reduction program of the Authority under Minnesota Statutes, Sections 469.174 to 469.1799, designated as Amended Tax Increment Plan/Interest Rate Reduction Program for Tax Increment Financing District No. 10 (the "Financing Plan"). The Financing Plan established Tax Increment Financing District No. 10 (the "District'). 1.02. Pursuant to Minnesota Statutes, Sections 469.174 to 469.1799 (the"Act'), the Authority has adopted Amendment No. 1 to the Amended Tax Increment Plan for Tax Increment Financing District No. 10 (the"Amendment'), the Amendment and the Financing Plan collectively referred to herein as the "Amended Financing Plan." The Amended Financing Plan is now before this Council for approval. The Amended Financing Plan was prepared in accordance with the Project Plan and is the proposed method for financing the public redevelopment costs of certain of the redevelopment activities undertaken pursuant to the Project Plan. The Amended Financing Plan will increase the total tax increment expenditures to provide for payment of previously incurred public redevelopment costs in order that the reduced rents currently in place pursuant to the interest rate reduction program will continue,notwithstanding the termination of the interest rate reduction program pursuant to law. The District comprises various tax parcels in contiguous areas within the Redevelopment Project as described in the Amended 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 Amended Financing Plan. Pursuant to Minnesota Statutes, Section 469.175, subdivisions 3 and 4, this Council on July 18, 2006, conducted a public hearing on the desirability of approving the Amended Financing Plan. Notice of the public hearing was duly published as required by law in the Eden Prairie Sun Current, the official newspaper of the City, on June 29, 2006. The City has [not] received written comments on the Amended 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 Amended 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, the City 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 Amended Financing lan. On the basis of the Amended 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 Amended Financing Plan provides the means to finance certain public redevelopment costs of the Redevelopment Project, including the redevelopment activities described in the Project Plan,which benefit the District. The Amended 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 Amended Financing Plan also estimates the public redevelopment costs of the Redevelopment Project, the amount of bonded indebtedness to be incurred, 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 Amended Financing Plan also describes and identifies the development activities in the District. The Amended 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 consists of 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 Amended 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 1949, as amended, or similar present or future federal, state or municipal legislation and the regulations promulgated thereunder, and that satisfies the income limitations of Minnesota Statutes, Section 469.1761. 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. -2- 2.03. This Council hereby finds that the private redevelopment encouraged in the Redevelopment Project pursuant to the Project Plan would not, in the opinion of this Council, occur solely through private investment within the reasonably foreseeable future. Therefore, the use of tax increment financing is deemed necessary. 2.04. This Council hereby finds that the Amended 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. 2.05. This Council hereby finds that the Amended 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 in the Project Plan will provide continued affordable housing opportunities in the City and enhance the tax base of the City. 2.06. Upon review of the Amended Financing Plan, the information elicited at the public hearing and on the basis of the findings in Sections 2.01 to 2.05, this Council hereby approves the Amended Financing Plan. Adopted by the City Council this 18th day of July, 2006. 6ana- 6 ,/ ayor ATTEST: SEAL Kat een Porta, City Clerk -3-