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HomeMy WebLinkAboutCCRes_85-08EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF FALCON HEIGHTS, MINNESOTA HELD: February 27, 1985 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Falcon Heights, Ramsey County, Minnesota, was duly held on the 27th day of February, 1985, at 7:30 o'clock p.m. The following members of the Council were present: Mayor Eggert, CouncilmeQnbera Cieraia, Baldwin, Hard and Chenoweth. and the following were absent: None Member Mayor Eggert introduced the following resolution and moved its adoption: R-85-8 RESOLUTION ADOPTING AMENDMENT TO --- DEVELOPMENT PLAN AND ADOPTING TAX INCREMENT FINANCING PLAN, DECLARING PUBLIC PURPOSE, REQUESTING CERTIFICATION OF ORIGINAL ASSESSED VALUE, PROVIDING FOR FILING, ADMINISTRATION WHEREAS: A• The City of Falcon Heights has heretofore created and subsequently modified a development district known as Development District No. 1. It has been proposed that the City of Falcon Heights modify the existing development program for Development District No. 1 and create a second tax increment financing district within Development District No. 1 and adopt a tax increment financing plan therefor under the provisions of Minnesota Statutes, Section 273.71 to 273.78 and Chapter 472A (collectively the "Act"); B. In accordance with the provisions of the Act, the City Council has given the members of the Board of Commissioners of Ramsey County and the School Board of Independent School • District No. 623 and Special Intermediate School Board No. 916 an opportunity to meet with the City Council to discuss the fiscal and economic implications of the Development District; C. Said proposal has heretofore been given preliminary approval by the City Council; and D. A public hearing was duly held on said proposal on this day (February 27, 1985) in accordance with the provisions of the Act; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Falcon Heights as follows: 1. Development Program. The development program as set forth in the report entitled "Development District No. 1 (As Amended) and Tax Increment Financing Plan for Housing District No. 2" and dated February 27, 1985, a copy of which is on file in the office of the Clerk-Administrator, is adopted as the Development Program for Development District No. 1. 2. Tax Increment Financin District No. 2. There is established in the City o Falcon Heights within Development District 210. 1 a tax increment financing district to be known as "Housing District No. 2," the initial boundaries of which are fixed and determined as shown on the attached Exhibit A incorporated herein by reference. __ 3. Tax Increment Financing Plan. The tax increment financing plan as set forth in said report is adopted as the Tax Increment Financing Plan for Housing District No. 2, and the City Council makes the following findings: (a) Housing District No. 2 is a housing district as defined in Minnesota Statutes, Section 273.73, the specific basis for such determination being: Housing District No. 2 meets the Minnesota Housing Finance Agency's guidelines pursuant to Chapter 462A since it consists of a project or a portion of a project intended for occupancy, in part, by persons or families of low and moderate income. Chapter 462A requires that the Minnesota Housing Finance Agency adopt rules establishing guidelines for individuals qualifying for low and moderate income housing. For • 1985 the Agency has established that an individual may qualify for a loan for new construction with a ' mortgage interest rate between 10.51 to 11.00$ if the individual's maximum adjusted income is $36,000 or less. The new construction may not succeed $83,000 in cost. Based upon the maximum income levels and housing costs set by the Agency, it appears that 27 units out of 100 units do not exceed the maximum housing costs for low and moderate housing. The developer has represented to the City that the development will be inhabited by retired individuals many of whore have average annual incomes from $15,000_. to $36,000. (b) The proposed redevelopment in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and therefore the use of tax increment financing is deemed necessary. The reasons supporting this finding are that: The project costs have been projected to include $500,000 of tax increment financing with a total project cost of $9,200,000. The tax increment financing is needed to provide affordable homes for retired individuals. The scope of the project would have to be reduced without such financing. (c) The Tax Increment Financing Plan conforms to the general plan for development or redevelopment of the City of Falcon Heights as a whole. The reasons for supporting this finding are that: The project area is residentially zoned and well-suited for the project. The City of Falcon Heights is in need of population growth to avoid losing state aid. Nearly 2/3 of the City is currently tax exempt since it contains lands owned and used by the State Fairgrounds and the University of Minnesota. (d) The Tax Increment Financing Plan will afford maximum opportunity, consistent with the sound needs of the City of Falcon Heights as a whole, for the development or redevelopment of Tax Increment Financing District No. 1 by private enterprise. The reasons supporting this finding are that: • The City of Falcon Heights needs to encourage population growth to avoid losing state aid. The ~ Plan permits private developers to develop affordable retirement housing. The project area is in a Target Area Census Tract and Home Mortgage Loan Program district for the State of Minnesota and therefore also qualifies for federally funded mortgage loans. One hundred new housing units will contribute to the City's tax base and will hopefully encourage hopefully other private enterprise. 4. Public Purpose. The modification of the Development Program for Development District No. 1 and the adoption of Tax Increment Financing Plan for Housing District No. 2 conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up to provide employment opportunities to improve the tax base, to provide housing for occupancy in part by persons or families of low or moderate income and to improve the general economy of the State and thereby serves a public purpose. 5. Certification. The Auditor of Ramsey County is requested to certify the original assessed value of Housing District No. 2 as described in the Tax Increment Financing Plan, and to certify in each year thereafter the amount by _ _ which the original assessed value has increased ~r decreased in accordance with the Act; and the Clerk-Administrator is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within Housing District No. 2 for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution. 6. Filing. The Clerk-Administrator is further authorized and directed to file a copy of the Tax Increment Financing Plan for Housing District No. 2 with the Minnesota F~ergy and Economic Development Authority. 7. Administration. The administration of Development District No. 1 is assigned to the Clerk-Administrator who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 472A.09 and 472.10 as the City Council may deem appropriate. • The motion for the adoption of the foregoing resolution was duly seconded by member Baldwin and ~ upon vote being taken thereon, the following voted in favor thereof : Mayor F$gert, Councilmeanbers Ciernia, Baldwin, Hard and Chenoweth. and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. ATTESTS -c~~~ ~ ~ ~ gran E. Barnes, Clerk Administrator .~ , . ~ , ~~ • C! STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS I, the undersigned, being the duly qualified and acting Clerk-Administrator of the City of Falcon Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes which the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the formation of Tax Increment Financing District No. 2 in the City. WITNESS my hand and the seal of said City this lst day of March, 1985. i j ~~~'°, /" ` ~~ lerk Administrator (SEAL)