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HomeMy WebLinkAboutResolution 9498Council member adoption: CITY OF MOUNDS VIEW RAMSEY COUNTY STATE OF MINNESOTA Meehlhause introduced the following resolution and moved its CITY OF MOUNDS VIEW RESOLUTION NO. 9498 RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY PROJECT; AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-7 (VILLAS OF MOUNDS VIEW) THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR BE IT RESOLVED by the City Council (the "Council") of the City of Mounds View, Minnesota (the "City"), as follows: Section 1. Recitals 1.01. The Board of Commissioners of the Mounds View Economic Development Authority (the "EDA") has heretofore established Mounds View Economic Development Project and adopted the Development Program therefor. It has been proposed by the EDA and the City that the City adopt a Modification to the Mounds View Economic Development Project (the "Development Program Modification") and establish Tax Increment Financing District No. 1-7 (Villas of Mounds View) (the "District") therein and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program and Plan"); 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 Program and Plan, and presented for the Council's consideration. 1.02. The EDA and City have investigated the facts relating to the Program and Plan and have caused the Program and Plan to be prepared. 1.03. The EDA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Program and Plan, including, but not limited to, notification of Ramsey County and Independent School District No. 621 having taxing jurisdiction over the property to be included in the District, review of the Program and Plan by the EDA on November 22, 2021, and the holding of a public hearing by the City upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Program and Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Program and Plan. The Reports, including the redevelopment qualifications reports and planning documents, include data, information X DOCSOPEN\MU205\52\763645.v2-11 / 18/21 Page 1 and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05. The City is not modifying the boundaries of Mounds View Economic Development Project, but is however, modifying the Development Program therefor. Section 2. Findings for the Adoption and Approval of the Development Program Modification 2.01. The Council approves the Development Program Modification, and specifically finds that: (a) the land within the Project area would not be available for redevelopment without the financial aid to be sought under this Development Program; (b) the Development Program, as modified, will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Development Program, as modified, conforms to the general plan for the development of the City as a whole. Section 3. Findings for the Establishment of Tax Increment Financing District No. 1-7 (Villas of Mounds View) 3.01. The Council hereby finds that the District is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 11 of the Act. 3.02. The Council further finds that the proposed redevelopment would not occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the Tax Increment Financing Plan, that the Program and Plan conform to the general plan for the development or redevelopment of the City as a whole; and that the Program and Plan will afford maximum opportunity consistent with the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Purpose 4.01. The adoption of the Program and Plan conforms 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 and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Program and Plan X DOCSOPEN\MU205\52\763645.v2-11 / 18/21 Page 2 5.01. The Program and Plan, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Community Development Director. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program and Plan and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03. The Auditor of Ramsey County is requested to certify the original net tax capacity of the District, as described in the Program and Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the Mounds View Economic Development Authority 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 the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The Executive Director is further authorized and directed to file a copy of the Program and Plan with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. The motion for the adoption of the foregoing resolution was duly seconded by Council member Hull , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: November 22, 2021. ATTEST: Carol A. Mueller Mayor Nyle Zjinun City Administrator (Seat) DUCSOPEN\MU205\52\763645.v2-1 1 /18/21 Page 3 EXHIBIT A The reasons and facts supporting the findings for the adoption ofthe Tax Increment Financing Plan for Tax Increment Financing District No. 1-7 (Villas ofMounds VievV).asrequired pursuant b»Minnesota Statutes, Section 469]75.Subdivision 3are aofollows: [ Finding that Tax Increment Financing District No. /-7 (Villas of Mounds View) is a housing district as defined in M.S., Section 469.774, Subd. 77. Tax Increment Financing District No. l'7(Villas ofMounds View) consists offour (4)parcels. The development will consist of construction ofl2C) units ofaffordable rental housing, all or portion of which will receive tax increment assistance and will meet incoOlg restrictions described iOM.S.469./76[Atleast 40percent Ofthe units receiving assistance will have incomes atorbelow 5Opercent ofarea median income, 2 Finding that the proposed development, /n the opinion of the C/hr Council, would not reasonably beexpected /boccur solely through private investment within the reasonably foreseeable future. The proposed development, in the opinion of the City, would not reasonably beexpected hnoccur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed inthis plan contains affordable, housing units that meet the [ity'sobjectives for development. The cost ofland acquisition and construction are the same for workforce housing units asthey are for market rate projects. The decreased rental income from the affordable units, means there isless cash flow available to service the operating and debt expenses for the project. The leaves a gap in funding for the project. The need tooffset this reduction in rents for the affordable housing units makes this housing development feasible only through assistance, in part, fro[n tax increment financing, The developer was asked for and provided aletter and apro forma as justification that the project would not have gone forward without tax increment assistance. The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the 171aXiMUM duration of the TIF District permitted by the TIF Plan: This finding is justified on the grounds that the costs of acquisition, building demolition, site improvements, utility improvements and construction of affordable housing add to the total development cost. Historically, the costs of site and public improvements, as well as high market rate rents in the City have made development of affordable housing infeasible without tax increment assistance. Although other projects could potentially be proposed, the City reasonably determines that no other redevelopment of similar scope providing the desired affordability can be anticipated on this site without substantially similar assistance being provided to the development. 3. Finding that the TIF Plan for Tax Increment Financing District No. 7-7 (Villas of Mounds View) conforms to the general plan for the development or redevelopment of the municipality as a whole. The City Council reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TIF Plan for Tax Increment Financing District No. 7-7 (Villas of Mounds View) will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Mounds View Economic Development Project by private enterprise. Through the implementation of the TIF Plan, the City will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life -cycle housing within the City. A-2 DOCSOPEN\MU205\52\763645.v2-11/18/21