02-25-2013 EDA Packet - Laserfiche WebLink

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1.05. In 2010, following the foreclosure of the sixteen parcels of property within the Legacy at Woods Edge Development, the lenders determined that the outstanding special assessments and delinquent taxes on the sixteen parcels exceeded the market value of the properties, and those properties were tax forfeited. 1.06. The City and EDA continue to market the property within the Legacy at Woods Edge Development to private developers in order to get the properties back into the hands of private owners and to complete the redevelopment process originally commenced in 2004. Returning these properties to private ownership will result in special assessments being paid and property taxes being collected. In turn, the special assessments, abatements, and tax increments derived from the properties can be used by the City to pay debt service on the Series 2005A Bonds, the Series 2006C Bonds, and the Series 2007A Bonds. 1.07. Minnesota Statutes, Section 282.01, Subd. la allows the EDA to purchase tax- forfeited properties for fair market value, and proceeds received by the County are applied first to pay county administrative costs and second to pay special assessments that were outstanding at the time of forfeiture. However, that process is time-consuming and cumbersome, and the amount the of county administrative costs is not determined until the end of each year, creating uncertainty in the amounts developers will be required to pay. 1.08. The City and EDA have therefore determined to seek special legislation in the 2013 legislative session that would direct conveyance of the tax-forfeited properties within the Legacy at Woods Edge Development to the EDA without monetary consideration. 1.09. The proposed special legislation would require that, when the EDA sells a parcel to private party, it must return to the County 10% of the gross proceeds from sale of the parcel. This would occur only if the EDA is able to sell for a price in excess of the special assessments that were in place at forfeiture. 1.10. The EDA is in the process of negotiating a letter of intent with owners of the existing assisted living facility within the Legacy at Woods Edge Development, and with Anoka County, regarding an adjacent tax-forfeited parcel (Outlot A) to be acquired by that entity for expansion of its facility; and that parcel will be excluded from the special legislation. 1.11. The EDA has determined that enactment of the special legislation described above is necessary to complete the ongoing redevelopment of the Legacy at Woods Edge Development. Section 2. Approval of Special Legislation. 2.01. The EDA board hereby approves efforts to obtain special legislation in the 2013 legislative session that would authorize the EDA to acquire all the tax-forfeited properties in the Legacy at Woods Edge Development(except Outlot A) for no consideration,as described above. 2.02. EDA officials, staff and consultants are hereby authorized and directed to take any and all other steps necessary or convenient in order to obtain approval of the special legislation 419362v1 SJB LN140-80 2