HomeMy WebLinkAboutResolution - HRA 99-2 - Redevelopment Project 5 and Creating TIF District No. 15 - 07/20/1999 CITY OF EDEN PRAIRIE
40 HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO.HRA 99-2
A RESOLUTION RELATING TO REDEVELOPMENT PROJECT NO.5
AND CREATING TAX INCREMENT FINANCING DISTRICT NO. 15 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 Project Plan (the "Project 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 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. 14 and adopted a Tax Increment Financing Plan therefor on August 5, 1997.
Pursuant to the Act,the Housing and Redevelopment Authority in and for the City of Eden Prairie,
Minnesota (the "Authority") has adopted a tax increment financing plan to the proposed Tax
Increment Financing("Qualified Housing"),District No. 15 (the "Financing Plan"),which is now
before this Council for approval. The Financing Plan has been prepared in accordance with the
Project Plan and is the proposed method for financing certain 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. 15 (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 July 6, 1999, and was continued on July 20t', 1999, 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
June 17, 1999.
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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 Project 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 redevelopment costs of the Redevelopment Project($5,087,500.00),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
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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).
2.03 This Council hereby finds that the private redevelopment proposed to be 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 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 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.
2.04. 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.
2.05 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.
2.06 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.
2.07 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. 15.
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
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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, including a contingent assignment of any agreements
regarding tax increment financing between the developer and the City and/or Authority,to the lien
of the developer's construction and/or permanent financing. The Mayor and City Manager are
authorized and directed to prepare and fiunish 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 20"day of July, 1999.
•
an L. Harris, Chair
Attest:
(:4stophWe�Mgngger-,W-Execuv Director
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