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HomeMy WebLinkAboutResolution - 2016-83 - Modify TIF District 14 in Redevelopment Project 5 - 07/19/2016 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,MINNESOTA RESOLUTION NO.2016-83 RESOLUTION ADOPTING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 14 WITHIN REDEVELOPMENT PROJECT NO. 5 BE IT RESOLVED by the City Council (the "Council") of the City of Eden Prairie, Minnesota (the "City"),as follows: Section 1. Recitals 1.01. The Board of Commissioners (the "Board") of the Eden Prairie Housing and Redevelopment Authority (the "HRA") has heretofore established Redevelopment Project No. 5 (the "Project Area") and adopted the Redevelopment Plan therefor. It has been proposed by the HRA that the City adopt a modification to the Tax Increment Financing Plan (the "TIF Plan Modification") for Tax Increment Financing District No. 14 (the "TIF District") therein, all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047, and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the TIF Plan Modification, and presented for the Council's consideration. 1.02. Tax Increment from the TIF District has been used to pay for certain development costs and to provide affordable housing units developed by Edenvale Family Housing Limited Partnership. The TIF Plan Modification will allow the City and HRA to increase the budget in order to accommodate potential developer repayments and to allow the City to use those funds for affordable housing within the City. 1.03. The City and HRA have investigated the facts relating to the TIF Plan Modification and has caused the TIF Plan Modification to be prepared. 1.04. The City and HRA have performed all actions required by law to be performed prior to the adoption and approval of the proposed TIF Plan Modification, including, but not limited to, notification of Hennepin County and Independent School District No. 272, having taxing jurisdiction over the property included in the TIF District, and the holding of a public hearing upon published notice as required by law. 1.05. The City and HRA are not modifying the boundaries of the Project Area or the TIF District. Section 2. Findings for the TIF Plan Modification 2.01. The Council hereby reaffirms the original findings for the TIF District, namely that when the TIF District was established, Tax Increment Financing District No. 14 was established as a housing district. 2.02. In addition,the City makes the following findings: (i) The proposed redevelopment described in the TIF Plan Modification would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The major purpose of the TIF Plan Modification is to increase the budget in order to accommodate potential developer repayments and to allow the City to use those funds for affordable housing within the City. (ii) The Tax Increment Plan Modification conforms to the general plan for the redevelopment of the City as a whole. The City reaffirms the original findings by the City's Planning Commission for the TIF District. (iii) The Tax Increment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole,for the redevelopment of the Project by private enterprise. The City has promoted affordable rental and owner-occupied housing for several years. The tax increment from the TIF District will be used to encourage the private market to offer affordable housing choices and ensure that affordability is maintained over an extended period of time, and promote increased housing development in the City. 2.03 As required by Section 469.176, Subdivision 4d, it is expected that all of the tax increment to be derived from the TIF District will be used to finance costs of the low and moderate income housing project, including the cost of public improvements directly related thereto and allowable administration expenses of the Redevelopment Project. 2.04 The City elects to calculate fiscal disparities for the District in accordance with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities contribution, if any, will be taken from inside the District. Section 3. Public Purpose 3.01. The adoption of the TIF Plan Modification conforms in all respects to the requirements of the Act and will further the original long-term development goals for the Project Area, and stimulate the creation of additional tax base, employment, and housing opportunities. These public purposes and benefits exceed any benefits expected to be received by private developers, who will receive assistance only in the amount needed to make the each proposed development financially feasible. Section 4. Approval and Adoption of the TIF Plan Modification 4.01. The TIF Plan Modification is hereby approved, and shall be placed on file in the office of the City Clerk. Approval of the TIF Plan Modification does not constitute approval of any project or a development agreement with any developer. 4.02. City staff is authorized to file the TIF Plan Modification with the Department of Revenue,the Office of the State Auditor and Hennepin County. 4.03. City staff, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan Modification and for this purpose to negotiate, draft, prepare and present to this Council for its consideration all further modifications, resolutions,documents and contracts necessary for this purpose. ADOPTED by the City Council of the City of Eden Prairie this 19th day of July, 2016. 4ancy7�aft ens a or ATTEST: Akll��w) & Kat e'en' f orta, City Clerk