HomeMy WebLinkAboutResolution - HRA 97-1 - Project No. 5 Plan and TIF District 14 Plan - 08/05/1997 HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, NIINNESOTA
RESOLUTION NO. HRA 97-1
A RESOLUTION RELATING TO THE PROJECT PLAN FOR REDEVELOPMENT
PROJECT NO. 5 IN THE CITY OF EDEN PRAIRIE AND THE TAX
INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING
(QUALIFIED HOUSING) DISTRICT NO. 14
BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City
of Eden Prairie, Minnesota, as follows:
1. On December 17, 1996,the Housing and Redevelopment Authority in and for the City
of Eden Prairie, Minnesota (the "Authority") pursuant to Minnesota Statutes Section 469.001 to
469.047, as amended, approved Redevelopment Project No. 5 and a Redevelopment Plan relating
thereto, and a Tax Increment Financing Plan for Tax Increment Financing ("Redevelopment
District"), District No. 13 (the "Tax Increment Plan").
2. It has been further proposed that tho Authority approve the creation of proposed Tax
Increment Financing District No. 14 and approve and adopt the proposed Tax Increment
Financing Plan relating thereto pursuant to and in accordance with Minnesota Statutes Section
469.174 to 469.179, inclusive, as amended and supplemented from time to time.
3. The Authority has investigated the facts and has caused to be prepared with respect
thereto the proposed Tax Increment Financing Plan for Tax Increment Financing District No. 14,
defining more precisely the property to be included, the public cost to be incurred and other
matters relating thereto.
4. The Authority has performed all actions required by law to be performed prior to the
approval and adoption of the proposed Tax Increment Financing Plan.
5. The Authority hereby determines that it is necessary and in the best interest of the City
and the Authority at this time to create proposed Tax Increment Financing District No. 14 and
to approve and adopt the proposed Tax Increment Financing Plan relating thereto.
6. Adoption. The Tax Increment Financing Plan is hereby adopted subject to approval
by the City Council as provided in Section S based on the findings in Section 7.
7. Findings. The Authority hereby makes the following findings:
a. The tax increment financing district to be established pursuant to the Tax Increment
Plan (the "District"), based on the information in the Tax Increment Plan and
. representations of the developer, 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 Revenue 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).
b. The proposed development, in the opinion of the Authority, would not reasonably be
expected to occur solely through private investment within the reasonable foreseeable
future and,therefore,the use of tax increment financing is deemed necessary since private
developers could not economically develop the project without the proposed subsidy.
8. Transmittal. The Authority does hereby transmit the Project Plan and the Tax
Increment Plan to the Eden Prairie City Council for approval after the same has been considered
by the Council subsequent to a public hearing to be held in accordance with Minnesota Statutes
Chapter 469.
9. Additional Approvals. It is contemplated the public financial contribution
contemplated in the Tax Increment Financing Plan, including but not limited to, tax increment
financing and Community Development Block Grant funds, will 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 the 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 Authority 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 Chair and
Executive Director are authorized and directed to prepare and furnish certified copies of all
proceedings and records of the Authority 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 sae Authority 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
Authority'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
Authority. The execution of any instrument by the appropriate officer or officers of the Authority
herein authorized shall be conclusive evidence of the approval of such documents in accordance
with the terms hereof.
10. Filing. Following approval by the City Council, the Secretary is hereby authorized
and directed to file the Project Plan and the Tax Increment Plan with the Commissioner of
Revenue as required by Minnesota Statutes Section 469.175, Subdivision 2.
Passed by the Housing and Redevelopment Authority of the City of Eden Prairie,
Minnesota, this 5th day of August, 1997.
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